- Can Financial Advisors Give You Tax Advice?
Financial advisors can offer tax advice, but you should understand the scope of their expertise. While they can provide valuable insights on tax-efficient investment strategies, retirement planning and estate planning, they are not necessarily tax preparers or accountants. Rather, their role is to help you align your financial goals with tax-saving opportunities, such as maximizing… read more…
- How to Report Late 401(k) Contributions
The IRS and Department of Labor (DOL) require employers to adhere to certain regulations regarding 401(k) contributions. When contributions are not made on time, it can lead to compliance issues and penalties. Understanding the steps involved in reporting late 401(k) contributions is key to mitigating negative impacts on the plan and its participants. Employers must… read more…
- What Does It Mean If a Financial Advisor Is Fee-Based?
If a financial advisor is considered “fee-based,” it means they can earn compensation through a combination of both client-paid fees and forms of compensation related to selling certain products. Although the two terms may sound similar, a “fee-only” financial advisor is quite different. These fee-only advisors only charge clients fees directly related to their services,… read more…
- What to Know About Homeowners Insurance for Seniors
As seniors transition into retirement, evaluating homeowners insurance becomes even more important. Seniors’ home insurance needs may differ due to factors such as fixed incomes and potentially outdated home structures. Understanding how coverage can protect against risks specific to aging homes or health-related incidents is key. Additionally, some insurance providers offer discounts for seniors that… read more…
- How to Find an LGBTQ+-Friendly Financial Advisor
Finding an LGBTQ+-friendly financial advisor can be a critical step for individuals and couples seeking financial guidance that aligns with their values and unique circumstances. These advisors understand the specific challenges faced by the LGBTQ+ community, such as marriage and estate planning, and offer inclusive, non-judgmental advice. By choosing an LGBTQ professional clients can gain peace… read more…
- Ask an Advisor: We Earn $350K+ Per Year and Can’t Contribute to a Roth IRA. Do We Have to Wait Until We Retire to Do Roth Conversions?
Because of our income bracket – we make over $350,000 per year – we cannot contribute to a Roth anymore. We’re 61 and 62, and planning to work until at least 67. Do we qualify to convert our 401(k)s into Roths a little at a time or do we have to wait until we retire?… read more…
- 9 Key Benefits of Proper Financial Planning
Financial planning is a strategic approach to managing money that factors in both financial security and goals. The benefits of financial planning include reducing stress, increasing savings and creating a plan for retirement. It enables individuals to allocate resources effectively, plan for major life events like buying a home or starting a family and adapt… read more…
- Ask an Advisor: We Have $3.7 Million in Assets. Do We ‘Bite the Bullet’ and Buy Long-Term Care Insurance?
I’m 63 and have been on Social Security disability since 2008. My wife, also 63, stays home to care for me. We’re in poor health and were denied or quoted high rates for long-term care insurance in our mid-50s, with recent quotes as high as $1,850 a month for me and $2,750 for her. We… read more…
- How to Lower Your Debt-to-Income Ratio
Your debt-to-income (DTI) ratio is an important part of assessing your financial health and securing favorable loan terms. The DTI ratio measures how much of your monthly income goes toward paying off debts, giving lenders a clear picture of your financial capacity. If you’re looking to improve your financial situation, learning how to lower your… read more…
- How to Lease Commercial Real Estate
Leasing commercial real estate is a critical step for many business owners, providing the space necessary to operate and grow their businesses. However, commercial leases are more complex than residential leases and involve numerous considerations that can significantly impact a business’s success. By navigating the leasing process effectively, business owners can ensure they choose the… read more…
- Ask an Advisor: When Will I Get the Most Social Security and My Wife Will Get Her Spousal Benefit?
I am the only eligible Social Security recipient in our marriage. My wife, at this point, will never have enough credits. I am 61 and my wife is 68. At what age would we get the most in Social Security where I get my social Security and my wife gets her spousal amount? – Tim… read more…
- Pros and Cons of Debt Consolidation
Debt consolidation can be an attractive option for those looking to manage multiple debts more efficiently. By combining various debts into a single loan, individuals often benefit from lower interest rates and simplified payments. However, it’s important to note the potential downsides as well. Debt consolidation may lead to longer repayment periods, and without careful… read more…
- How to Consolidate Debt
Consolidating debt can be a strategic move to manage multiple financial obligations more efficiently. By combining various debts into a single payment plan, you can potentially lower your interest rates and reduce the number of bills you need to keep track of each month. Understanding how to consolidate debt involves exploring options like personal loans,… read more…
- 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…