Retirement: Comparing the Pros and Cons of 401(k) vs. Roth IRA

New York, NY – When it comes to saving for retirement, there are several options to consider, including a 401(k) and a Roth IRA. Both have their pros and cons, and it’s essential to weigh them carefully before making a decision. One advantage of a 401(k) is that contributions are typically made pretax, reducing your taxable income for the year. This can result in significant tax savings, especially for those in higher tax brackets. Additionally, …

Read more

Roth IRA Strategy for Teens: Compound Growth Potential Vastly Benefits Early Savers

Chicago, Illinois – As teenagers start thinking about their future, many are considering opening Roth IRAs to kickstart their retirement savings early. Unlike traditional IRAs, Roth IRAs are funded with after-tax dollars, making them an appealing option for teens who have limited taxable income. With the standard deduction at $14,600 for single filers in 2024, teens may be able to contribute to a Roth IRA without owing taxes on their earnings. One key advantage of …

Read more

Naming a Trust as a Beneficiary

It is advantageous to name a trust as a beneficiary if your beneficiaries are minors, have disabilities, or cannot be trusted with large sums of money. To avoid future estate tax issues, some attorneys also recommend establishing a special trust as an IRA beneficiary to prevent its assets from becoming part of a surviving spouse’s estate.

Roth Conversion Concepts: How to Convert $1.2 Million IRA into Roth IRA at Age 65

Phoenix, Arizona – A 65-year-old individual in Phoenix, Arizona finds themselves with a $1.2 million IRA and is considering whether to convert it to a Roth IRA. This decision involves weighing the advantages of tax-free withdrawals and freedom from mandated distributions against the potential burden of a significant tax bill. While there are no age restrictions on Roth conversions, converting the entire $1.2 million at once could result in a hefty tax burden. However, opting …

Read more

Retirement Dilemma: 69-Year-Old with $34,000 in Roth IRA Seeks Financial Guidance

Miami, FL – A 69-year-old individual who has diligently contributed $500 per month to a Roth IRA is dismayed to find out they have only saved $34,000. They express frustration, feeling that they should be in a much better financial position at their age. Seeking guidance on how to improve their retirement savings, they are looking for assistance from experts in financial planning and wealth management. The individual’s situation raises questions about the effectiveness of …

Read more

Social Security Might Be Revived with Sacrifices to Your 401(k) and IRA, Experts Say

New York, NY – A controversial proposal has emerged that suggests adjusting Social Security in a way that could potentially save the program but at the expense of 401(k) and IRA accounts. This idea has sparked debate and divided opinions among experts and stakeholders. The proposed strategy involves redirecting a portion of workers’ payroll taxes from funding 401(k) and IRA accounts to support Social Security. Advocates of this plan argue that it could help ensure …

Read more

Discover the Non-financial Aspects of Retirement Planning

After working five days a week for most of your life, entering retirement can be a shock. Suddenly, you go from a set schedule to days free to do whatever you want. This transition may be difficult for many people who are dedicated and defined by their jobs. For some, retirement can last decades, and no matter where you are in preparing for your golden years, it’s never too early to start planning for the …

Read more

The truth about American retirement savings

A new report reveals a stark divide in American retirement savings, highlighting the struggle of lower-income households to adequately prepare for their golden years. While overall retirement assets have grown to $36 trillion, a significant portion of the increase is concentrated among higher-income workers, leaving tens of millions ill-prepared for the financial challenges of retirement. According to Anqi Chen and Alicia Munnell of the Center for Retirement Research at Boston College, the median combined 401(k) …

Read more

Three Key Components To Maximize Your Retirement Savings

If your working years were spent as an employee, your taxes on wages were pretty straightforward. You worked and contributed to employer-based benefits, and the net was reported to you on a W-2 form, which you used to plug into your 1040 tax form. There is not much wiggle room for reporting that income and paying the associated taxes. The good and the bad of retirement income planning is that you have all the control. …

Read more