- Who Maintains Control Over a 529 Plan’s Assets?
A 529 plan is a popular savings vehicle for college expenses, but you may wonder who maintains control over the 529 plan and its assets. Control typically resides with the account owner, often a parent or grandparent, who retains the authority to make investment decisions and withdrawals. The beneficiary, usually the student, has no direct… read more…
- What Is a Personal Financial Advisor?
A personal financial advisor is a professional who provides tailored financial guidance to individuals, helping them manage their finances effectively. These experts assess the financial situations, goals and risk tolerance of clients to create comprehensive plans that encompass budgeting, saving, investing and retirement planning. They also offer advice on tax strategies, insurance needs and estate… read more…
- I’m Going to Get $2,100 Per Month From Social Security. How Can I Reduce My Taxes?
Despite paying into Social Security throughout your working career, your retirement benefits aren’t necessarily tax-free income. In fact, up to 85% of your benefits are taxable, depending on your other sources of income. Several strategies exist for managing and potentially reducing these taxes, including timing retirement account withdrawals and using withdrawals from Roth accounts to… read more…
- Which Investments Are Better Off in My IRA vs. Roth IRA vs. Brokerage Account?
How do I know which of my investments are better off in my IRA, Roth IRA or brokerage account? -Peter It’s great that you’re considering this – many people overlook the importance of where to hold different investments. Often, this is due to a lack of awareness about how significantly it can impact overall returns.… read more…
- Differences of a Fiduciary vs. Trustee
A fiduciary is an individual or organization required to act legally and ethically in the best interests of their clients. This broad term encompasses various roles, including financial advisors, attorneys and conservators. Each are required to prioritize the financial well-being of clients over their own profits. In addition to these fiduciaries, a trustee has similar… read more…
- Fee-Based vs. Commission-Based Financial Advisors
Fee-based advisors charge a set fee for their services, either hourly, by project, or as a percentage of assets under management. This model can offer transparency and reduce potential conflicts of interest, as the advisor’s income isn’t tied to selling specific products. Commission-based advisors, by comparison, can earn money through commissions on the financial products… read more…
- I’m 62, Have $800,000 and Will Receive $2,600 Monthly from Social Security. What’s My Retirement Budget?
Planning for retirement can be both exciting and challenging. Figuring out how much you can realistically spend each year is a key piece of that puzzle. For example, a 62-year-old with $800,000 in savings and a monthly Social Security benefit of $2,600 can reasonably expect an annual income of $63,200 in retirement. Figuring out how… read more…
- I Expect to Live to 100. Should I Convert Some of My $1.4 Million into a Roth at Age 63?
I’m a single woman with no children, turning 63 years old this year but my family has longevity so I’m using 100 years old as my life expectancy mark for retirement planning. I have a combined portfolio of $200,000 in a 5% money market, and $1.4 million in stocks in a 401(k) (mostly dividend stocks)… read more…
- What Is a Retirement Financial Advisor?
A qualified financial advisor for retirement planning can provide invaluable guidance and support as your plan for your golden years. With the increasing complexity of the financial landscape and the growing number of Americans approaching retirement age, the role of retirement advisors has become more important than ever. These advisors often offer a wide range… read more…
- I’m Getting Mixed Advice: Will I Owe Taxes When I Roll Over My Roth 401(k) to a Roth IRA?
I have an after-tax 401(k) that I would like to roll over to a Roth IRA with Schwab. Experts at Schwab say it can be rolled over to a Roth IRA without paying any taxes. I think they are wrong as I will still have to pay taxes on the earnings and capital gains accumulated… read more…
- 10 Free Tools to Help Build Your Financial Plan
Taking control of your finances can pay big dividends, but it doesn’t have to cost a lot. There are a range of free personal financial planning tools that can help you create a budget, track expenses, manage investments, set financial goals and monitor your progress towards those goals. From AI-powered chatbots to old-fashioned printed worksheets,… read more…
- How Can I Do a Roth Conversion in Retirement If I Don’t Have Earned Income?
In a previous article about Roth conversions, an advisor wrote: “For many folks, a prime time for Roth conversions takes place during the years after retirement but before Social Security and RMDs kick in. Those can be relatively low-income years during which initiating a conversion can result in a triple benefit. Those benefits are: lower… read more…
- How to Use the Double Consolidation Loophole for Student Loans
The double consolidation loophole is a way for parent borrowers to make their loans eligible for the improved repayment terms available under the Biden administration’s SAVE program. This can lower monthly payments for a qualifying household significantly, as the SAVE program offers more generous income-based repayment options than Parent PLUS Loans. However, the window of opportunity… read more…
- What Is a Flat Fee Financial Advisor?
Whether you’re planning for retirement, saving for a child’s education, or simply aiming to grow your wealth, understanding how financial advisor fees work can significantly impact your financial strategy and overall satisfaction. One common fee structure is a flat advisor fee. This type of fee charges a fixed fee for services, whereas other advisors can… read more…
- Should I Invest in Real Estate or the Stock Market? I’m 68 and Selling a $750k Property
I’m 68 and selling vacant real estate that is worth about $750,000. Is it better to reinvest the money by doing a 1031 exchange for income producing real estate or invest in the stock market? I’m already taking Social Security and only have about $100,000 in other liquid assets. I don’t have much other income, maybe… read more…
- I’m 65 and Just Did a Roth IRA Conversion to Avoid RMDs. Does the 5-Year Rule Apply to Me?
Imagine that you’re 65 years old and just completed a Roth conversion during a low-tax year early in retirement to avoid future required minimum distributions (RMDs). However, not long after the conversion, you want to withdraw the money you just paid taxes on. But pursuing the withdrawal without first understanding the five-year rule for Roth… read more…
- How Is Alimony Calculated in New York?
Alimony is a payment from one divorced former spouse to the other that’s intended to provide the lower-earning spouse with sufficient income to meet their needs. Laws in every state provide for alimony, also known as spousal support or spousal maintenance, but they use a variety of ways to set the amount of money to… read more…
- Thinking of an IRA Rollover? This New Rule Will Impact the Investment Advice You Receive
Financial professionals who give one-time investment advice will soon be legally required to act in their clients’ best interests under the Department of Labor’s new fiduciary rule. Are you looking to hire a fiduciary financial advisor, but don’t know where to start? SmartAsset’s free tool can connect you with up to three advisors who serve… read more…
- I’m Selling Inherited Artwork to Pay for Graduate School for My Grandchild. How Can I Limit the Taxes?
Decades ago, I inherited a valuable piece of art, and I’m now considering selling it to finance a grandchild’s graduate degree that will cost $80,000. What do I need to consider in regard to taxes? Do I sell the piece and pay taxes? Then I could give the money to my grandchild over two years… read more…
- How Is Alimony Calculated in California (CA)?
This alimony system was built around the idea that the job market significantly disfavored women, so a divorced wife could rarely support herself. As a result, alimony often required a significant division of future income for either life or until the recipient remarried. Most states have changed this system in whole or in part. Alimony, today,… read more…
- When I Claim My $4,000 Social Security, Will My Wife Automatically Get a Spousal Benefit?
My wife is 76, born in 1948. She retired at full retirement age and currently collects $1,076 per month. I will be retiring and start collecting at 70 this year (I was born in 1954). When I collect $4,000+ per month does her monthly payment go up to spousal benefit automatically or does it have… read more…
- I Make $310k and Have $550k in My 401(k). Should I Get Variable Universal Life Insurance?
Is contributing to a variable universal life insurance policy a good idea? I’m 39 with a $310,000 annual income. I have $550,000 in a 401(k), $13,000 in an HSA, $25,000 in cash savings and a $42,000 investment account balance. I don’t have any student loans or credit card debt I maxed out my annual 401(k) contributions last… read more…
- How to Achieve Retirement Security With a Financial Plan
Personal finance can be daunting, but with a well-crafted financial plan, you could map a course to help reach your financial goals with confidence. A financial plan is a comprehensive strategy that is tailored to your unique financial situation and encompasses budgeting, savings, investments, insurance and estate planning. Whether you’re preparing for major milestones or… read more…
- I Have $900k in a Roth IRA and Would Receive $2,200 Monthly From Social Security. Can I Retire at 66?
Imagine that you have $900,000 in a Roth IRA and collect another $2,200 per month in Social Security. Can you afford to retire at age 66? A good way to answer this question is to start with your budget. What do you expect to spend on essentials, like housing and fixed monthly expenses, and what… read more…
- What Is a Fee-Only Financial Planner?
If a financial planner, financial advisor or another type of financial professional is fee-only, that means they receive compensation solely from the fees clients pay for their services. They do not earn commissions for recommending certain products. A fee-only structure… read more…