IRA

Are you making this common retirement mistake

Planning for retirement often involves making contributions to tax-advantaged accounts like 401(k)s and IRAs. These accounts offer attractive tax benefits, but staying within the IRS-imposed limits is essential. Exceeding these limits can result in unwanted tax consequences. Here’s what you need to know about excess contributions and how to rectify them before the tax deadline. For the 2024 tax year, the contribution limits for retirement accounts vary based on age and the type of account …

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RMDs: What You Need to Know and How to Minimize Their Impact

As you approach retirement, it’s essential to understand how required minimum distributions (RMDs) can influence your financial landscape. Recent changes in legislation have adjusted the age for mandatory RMDs from retirement accounts like 401(k)s and IRAs to 73, with plans to raise it to 75 by 2033. To illustrate, if you’re 73 with a $2 million balance in your 401(k), the IRS’s life expectancy table for 2024 indicates a factor of 26.5. This means your …

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Use These Simple Hacks To Watch Your Savings Grow

Your retirement might seem far away, but your current decisions can significantly shape your future. By making a few strategic changes to your savings and investment approach, you can substantially grow your retirement funds.  Here are three straightforward retirement strategies that demand little effort now but promise significant rewards later: 1. Automate Your Savings:  The principle here is simple: you won’t feel the pinch of money you never see. This is the logic behind automatically …

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Avoid Financial Ruin: The Top 3 IRA Mistakes That Could Cost You Thousands

The devil is in the details regarding Individual Retirement Accounts (IRAs). A seemingly small oversight can result in hefty penalties that could have been easily avoided. As a financial advisor, I’ve repeatedly seen clients stumble over these pitfalls. Let’s delve into the three most common yet costly IRA mistakes. The Perils of Incorrect Beneficiary Designation One of the most overlooked aspects of IRA management is the beneficiary designation. Remember, your IRA doesn’t pass through your …

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Shocking IRA Blunders: Are You Making These Costly Errors?

An Individual Retirement Account (IRA) can be a powerful tool for securing your financial future, but navigating its rules and regulations can be tricky. Making mistakes with your IRA can lead to significant financial consequences, so it’s essential to be well-informed. To help you avoid potential pitfalls, here are three common and costly IRA mistakes that can easily be prevented: #1 Beneficiary Mistakes  An IRA passes on to beneficiaries, not through a will. Therefore, it’s …

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How the SECURE 2.0 Act Is Transforming Retirement Savings

The year 2023 has brought about significant changes in retirement saving practices, offering relief to individuals planning for their post-work years. After a challenging period of economic downturn and inflation, the markets and U.S. inflation have stabilized, presenting opportunities for savers at various life stages.

Roth IRA: Why Young Investors Should Open One Today, According to Financial Expert

New York, NY – Investors looking to maximize their retirement savings may want to consider Roth individual retirement accounts (IRAs). Unlike traditional IRAs, Roth IRAs require investors to pay taxes on their contributions upfront, rather than when they make withdrawals in their retirement years. However, this trade-off means that after-tax dollars can grow tax-free for decades, making Roth IRAs a powerful tool for younger investors. Certified financial planner, Clifford Cornell, from Bone Fide Wealth in …

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Are you Content With Your Retirement Income?

There are ways to secure retirement income that allows you to maintain your living standard, live a lifetime, adapt to life events, and leave a legacy for your children even in difficult times.