- Ask an Advisor: Is $4.6 Million Enough to Retire at 55?
After a recent job loss, I’m unfulfilled in my new role and considering retiring in January 2025 at age 55. My wife, 56, works part-time and we’ll switch to her health insurance next summer until she retires in two to three years. Until then, we’ll stay on my COBRA until May 2025. I’m struggling to… read more…
- 13 Important Benefits of Saving Money
Saving money is a fundamental financial strategy that offers numerous advantages, contributing to both short-term stability and long-term security. The benefits of saving money extend beyond the obvious ability to handle emergencies, encompassing opportunities for investment, debt reduction and financial independence. A robust savings account offers peace of mind and prepares individuals for unforeseen expenses,… read more…
- 9 Techniques for Saving Money Long-Term
Saving money long-term requires a combination of discipline, strategy and practical money-saving techniques like setting clear financial goals, creating a detailed budget and prioritizing expenses to minimize unnecessary spending. Additionally, automated savings plans, investing in low-risk assets and taking advantage of tax-advantaged accounts can significantly enhance one’s ability to save effectively. Adopting these money-saving techniques… read more…
- Financial Planning for Newly Married Couples
Starting a new life together brings excitement and new responsibilities, making financial planning for newly married couples an essential step. This phase is the perfect opportunity to align your financial goals, create a budget and establish a solid foundation for your future. From merging finances to planning for major milestones, understanding the basics of financial… read more…
- How a TSP Hardship Withdrawal Works
A thrift savings plan (TSP) hardship withdrawal allows federal employees and members of the uniformed services to access their retirement funds in times of severe financial need. To qualify, individuals must demonstrate significant and immediate financial hardship, such as medical expenses or losses due to a natural disaster. Unlike loans, these withdrawals cannot be repaid,… read more…
- Ask an Advisor: I’m Already Retired But I’ve Been Converting $10k at a Time From My 401(k) to an IRA. Is This Wise?
I retired in 2022 at 62 years old. I have a $2,900 monthly pension and draw $1,900 per month in Social Security. I have $520,000 in my 401(k) and $24,000 in an IRA. I currently move $10,000 from my 401(k) to my IRA every time it increases $10,000 in value. Is it wise to do… read more…
- What Is Values-Based Financial Planning?
Values-based financial planning is a personalized approach that aligns your financial decisions with your core beliefs and principles. Unlike traditional financial planning, which primarily focuses on numerical goals and wealth accumulation, values-based planning emphasizes the importance of integrating your personal values into your financial strategies. This method not only helps in achieving financial goals but… read more…
- Wealth Distribution in the U.S. By Generation
Over the past 30 years, wealth in the United States has become increasingly the province of older generations. Approximately 73% of all wealth in the U.S. is currently owned by Americans over the age of 55, with most concentrated among the Baby Boomer generation (Americans born between 1946 and 1964). This has reshaped spending power,… read more…
- Ask an Advisor: I’m Getting Divorced 5 Years Before Retirement. What Should I Do?
I’m 60 and plan to retire at 64 or 65, but I’m going through a divorce (my ex-wife will keep the house). Right now, my pension at work (I won’t receive Social Security) would provide me around 73% of my current gross income. If I wait a few more years, it will be a bit… read more…
- Ask an Advisor: Is It Smart to Pay Off My Mortgage With My 401(k) to Free Up $800 Each Month?
Is it smart to pay off my mortgage with money from my 401(k) and save $800 more per month? The mortgage balance is $60,000. – Robert Many people consider paying off their mortgage to be a “must do” before retiring. While there are benefits to this approach, there are also tradeoffs, so it’s good that… read more…
- How to Use an HSA to Build Wealth
Health savings accounts (HSAs) are a dual-purpose tool for managing healthcare expenses and building wealth. They provide three key tax benefits: tax-deductible contributions, tax-deferred growth, and tax-free withdrawals for qualified medical expenses. Maximizing annual contributions can lead to substantial long-term savings. For help creating a long-term financial plan or determining how you can build wealth,… read more…
- How Financial Infidelity Can Affect Your Financial Plans
Financial infidelity, the act of hiding transactions or assets from a partner, can severely disrupt even the most well-constructed financial plans. Trust, a cornerstone of any relationship, becomes compromised, leading to potential long-term financial instability. Secret spending, undisclosed debts or hidden accounts can derail joint financial goals, resulting in missed savings targets, increased financial stress… read more…
- Community Property vs. Equitable Distribution
Property division during a divorce can vary depending on a state’s legal framework, which generally follows either community property or equitable distribution rules. These systems determine how assets and debts accumulated during a marriage are divided between spouses during a divorce, which affects the financial outcome for both parties. If you’re going through a divorce,… read more…
- 4 Proven Ways to Build Wealth
Building wealth requires a strategic approach that combines earning, saving and investing wisely. Creating a long-term financial plan and learning what investments to take advantage of are key to long-term wealth-building. This approach is grounded in consistency and informed decision-making. For help with a long-term plan or the management of your investment portfolio, consider working… read more…
- How to Build Wealth in Your 20s
Building wealth in your 20s is a crucial step toward establishing a solid financial foundation for the future. Starting to invest early provides your money with more time to grow exponentially through the power of compound interest, significantly increasing its value over time. To achieve financial success, prioritize building savings and make well-informed investment decisions… read more…
- Ask an Advisor: Can We Afford to Retire When the Kids Turn 18? We Have $1.85M in Savings
My wife and I are 30 and 34. We have $950,000 in Roth IRAs, $900,000 in mutual funds and five-year CDs and we own our home worth $600,000. We have zero debt. I feel like we have to keep saving and investing to have a financially secure future, but my wife wants to live more… read more…
- Ask an Advisor: We’re Inheriting a House. How Can We Avoid Capital Gains Tax When We Sell It?
My spouse will inherit her father’s house outright upon death and wants to sell it immediately. Would she be subjected to capital gains tax (above the $250,000 exclusion) on the sale and would it matter if only she is on the deed? Or would it make sense to have both of us on the deed to… read more…
- Fiduciary Duties of a Corporate Board of Directors
Corporate board members are entrusted with significant responsibilities that directly impact the success and ethical standing of a company. The fiduciary duties of directors comprise two primary responsibilities: a duty of care and a duty of loyalty to the company. By fulfilling these responsibilities, among others, directors can ensure ethical governance and protect the interests… read more…
- What Are the Tax Benefits of 529 Plans?
When planning for your child’s future education, a 529 plan offers several tax advantages. Contributions to a 529 plan grow tax-free, meaning any investment earnings are not subject to federal tax as long as they are used for qualified education expenses. Additionally, many states offer tax deductions or credits for contributions to a 529 plan,… read more…
- How a Durable Power of Attorney Works in Texas
People planning their estates in Texas use durable powers of attorney to give a trusted agent the ability to handle their financial, medical and other affairs for them. There are a number of different types of powers of attorney available in Texas, including durable powers of attorney that are specifically designed to be used when… read more…
- I Have $900k in a Roth IRA and Would Receive $2,200 Monthly from Social Security. Can I Retire at 66?
Retiring at 66 with $900,000 in a Roth IRA and $2,200 in Social Security benefits likely is a reasonable plan for many retirees. The income you could reasonably expect to generate from your Roth withdrawals, coupled with your Social Security benefit, probably will be somewhat more than the typical retiree’s expenses. You can likely expect… read more…
- What Is Real Estate Wealth Management?
Real estate wealth management is a specialized branch of financial planning that focuses on the value and returns of real estate assets. This involves strategic buying and selling, as well as managing properties, to build and preserve wealth over time. Experts in the wealth management real estate field help their clients navigate the complexities of… read more…
- Pros and Cons of Hiring a Financial Advisor
There are many pros and cons to consider when hiring a financial advisor. First and foremost, they can provide valuable expertise, especially for complex financial planning. Advisors offer personalized strategies tailored to individual goals, potentially leading to better financial outcomes. They can also alleviate the stress of managing investments and financial decisions, providing peace of… read more…
- Ask an Advisor: I Kept Working After Claiming Social Security. Will a Recent Raise Increase My Benefits?
I’m 69 and began to collect Social Security when I hit my full retirement age in April 2021, but I’m still working fulltime and making a good income. My salary is 2.5 times what I was making four years ago. Social Security has annually adjusted my monthly check every April based on my increased earnings… read more…
- Ask an Advisor: We Have $1.25M in Retirement Savings and Need to Withdraw $50k Per Year. How Should We Invest it?
We have $250,000 in the bank and one million to invest for retirement with no debt. We need to earn $50,000 a year from the million. Where should I invest it? -Rob First, congratulations on saving $1 million for your retirement – I’m sure a lot of hard work has gone into this! You have… read more…