Recent world events have made it clearer than ever that it’s imperative to have a long-term financial strategy that allows you to weather volatile economic times. The Roth IRA is a popular tax-minimizing strategy, as it allows for tax-free growth and withdrawals in retirement, and many people make it part of their long-term financial plan. Unfortunately, high-income earners are either limited or ineligible when it comes to Roth contributions. At the moment, that means single individuals with incomes greater than $139,000 and couples with incomes greater than $206,000 in the year 2020 can’t take advantage of Roth IRAs the way those under these thresholds can.

Fortunately, there are a few ways around this. A Backdoor Roth lets you convert a traditional IRA to a Roth – even if your income precludes you from contributing directly to a Roth – through what amounts to some intricate paperwork. We help clients do this carefully and make sure that they report them properly on the tax returns.  The option I’ll discuss below, however, is a different type of tax-advantaged investment altogether. It’s called the Rich Person Roth and, though it’s not for everyone, it can be incredibly valuable for some high earners.

The novel Coronavirus has brought with it a lot of tragedy, devastation, and chaos; many are losing loved ones, finding themselves in financial peril, and questioning their job security. However, it also brought with it a lot of quality life lessons and a significant pause which provides a rare opportunity to turn inward and focus on what you want for your financial future. Normally, people wait until the end of the year to set out short- and long-term goals, but right now is ripe with potential for those who choose to take advantage.

One of the biggest lessons we’re learning is how fragile and short life can be; for those of us who are lucky to be healthy and safe, it’s important that we do what we can to make the most out of what we’ve been given and where we are at. It’s time to think about what you want your life to look like five, ten, twenty years from now – specifically, where you will be in your financial journey. One way to do this is to start a decade into the future – and work backward to understand how you’ll achieve your goals.

The following tips offer a roadmap to follow as you begin planning for a financially successful decade ahead.

Oh, the dichotomy of money discussions. They’re so important to have, yet they are often uncomfortable and, therefore, avoided at all costs. Couple that with the fact that money disagreements are a leading cause of divorce,[i] and it’s no surprise most married couples aren’t properly communicating about financial habits and money values.

[i] https://www.cnbc.com/2015/02/04/money-is-the-leading-cause-of-stress-in-relationships.html

If you’re one of the lucky ones, though – a retiree with substantial equity in your home – you’ve already got the next best thing to that money tree. The only question is, when and how should you cash in on it?

Retirement planning, in general, involves a very personal decision-making process. This is certainly true when you’re considering anything to do with your home. It is likely the biggest purchase you’ve ever made, it may represent an important goal you’ve accomplished, and it allows you to feel a sense of security in an ever-changing world. For all these reasons, it’s a complicated decision to transform all or part of this asset into retirement capital.

by: Amy Ng
As you age and realize your earning potential, it’s only natural that you will add to and enhance your quality of life. Economic theories assume that humans are rational beings, yet the irrational action of spending beyond ones’ means is a very common reality. Many people see every income boost as a means of buying more stuff. Each raise at work results in a new addition to an increasingly cushy lifestyle filled with unnecessary purchases. The result is people putting off retirement. Even with plentiful salaries, the ever increasing investment in stuff leads them to constantly feeling like they don’t have enough money. Most of us have, or know others who have, experienced the allure of lifestyle inflation. Today’s post covers five things to consider when experiencing this enigma: