Category: Financial Planning

Secure Your Financial Future With a Roth 401(k)   Retirement savings are a crucial part of securing financial stability in later years, but with so many options available, it can be difficult to decide which type of retirement account to contribute to. One option that should not be overlooked is the Roth 401k. Unlike traditional 401ks, Roth 401ks offer tax-free withdrawals in retirement, no required minimum distributions, and greater flexibility in estate planning. In this article, we will explore what

Interest rates, mortgage rates, and inflation have been a big topic of conversation since the last quarter of 2021. We hear friends, colleagues, and news outlets speaking of rates on a regular basis these days. It can be confusing trying to decipher what is actually going on. Below is a table with the history of the 10-year Treasury Yield, Mortgage Rates, and Inflation. We started from 1971 as Freddie Mac started to keep a reliable ledger of rates at this

Are you worried about the safety of your hard-earned money in a bank?  With the recent news of the collapse of Silicon Valley Bank and Signature Bank of New York, we should better understand FDIC (Federal Deposit Insurance Corporation) and how it works.  The FDIC is a government agency that provides deposit insurance to protect your funds in the event that your bank goes bankrupt.  Established in 1933, the FDIC is designed to maintain stability and public confidence in the

The Backdoor Roth Contribution is a financial strategy that allows high-income earners to contribute money to a Roth IRA, even if they make too much to contribute directly. By contributing to a Traditional IRA and then converting that money to a Roth IRA, investors can effectively bypass the income limits and take advantage of the benefits of a Roth IRA. This strategy may sound complicated, but it can provide significant advantages in tax-free growth and flexibility for tax planning purposes.

After a down market like 2022, Roth conversions have become an important topic of conversation with our clients. There are several reasons for this: Cheaper cost on the conversion (fewer taxes owed) Anticipation of taxes going up RMDs pushing you into a higher tax bracket Tax-free growth   What is a Roth Conversion? A Roth IRA conversion is a strategy that transfers traditional retirement funds into a Roth IRA. The account owner will pay the taxes on the money converted

When I first meet with someone, they often ask, “what is the difference between a financial advisor and a financial planner?”  The critical difference is that advisors typically review investment options or focus on products.  Often, they only focus on your investment portfolio and do not review your entire financial picture.  As a consequence, one of the most significant gaps in a financial plan may be something you have never heard of before, The Umbrella Insurance Policy. So what is

SECURE Act 2.0 has set to improve on the original SECURE Act passed in July 2019. The Setting Every Community Up for Retirement Enhancement Act was designed to increase access to tax-advantaged accounts and to help simplify retirement plan rules. SECURE 2.0’s stated goal says that it is “to increase retirement savings, simplify and clarify retirement plan rules, and for other purposes.” There are a lot of big changes with this bill that will affect everyone’s retirement so it is