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Articles tagged with: retirement planning

Five Things to Do If You Inherit a Roth IRA

These steps will help you make the most of the bittersweet situation you are in.

17 October 2020

Five Things to Do If You Inherit a Roth IRA

Once upon a time, if you inherited a Roth IRA, you would be able to stretch the inherited Roth IRA withdrawals out over your lifetime, letting the money grow over the years. Now though, the rules have changed. With the SECURE Act, which was signed into law in December of 2019, planning for an inherited IRA requires a little bit more effort and intention.

This is because the act imposes a new rule on inherited IRAs for any account whose owner died after December 31, 2019, requiring that beneficiaries must empty the account within 10 years of the owner’s death (unless they qualify for an exception).

While this new law definitely limits what you can do with an inherited IRA, there is still some flexibility in how you reap the benefits as long as you stay in the 10-year time limit. Here are five tips to guide you as you plan your strategy.

 

Four Times You Should Consider a Roth Conversion

Proper Timing Can Help You Maximize the Benefits of Converting Your Traditional IRA

14 September 2020

Four Times You Should Consider a Roth Conversion

A traditional IRA is a fantastic retirement savings tool because you can minimize your current tax burden and pay taxes on your contributions later. There are some instances, though, when you may want to take care of what you owe the government now so that you can avoid subsequent taxes down the road. To accomplish this goal, you’ll want to convert some of your traditional IRA balance to a Roth as Roth IRA distributions in the future including all the gains will be income tax-free.

When might a Roth conversion make sense? Although you should always consider your unique financial planning needs, there are four scenarios in which it makes sense to consider a Roth conversion.

When to Pivot Your Career (And How to Pull it Off Financially!)

Change Can Be Wonderful When You Make it Strategically

20 July 2020

When to Pivot Your Career (And How to Pull it Off Financially!)

As human beings, we are hard-wired to be reluctant to change. We prefer the familiar, the predictable, the strategy that gives us the long view. Sometimes, though, we begin to feel the overwhelming urge to make a career change. Many people ignore the nagging feeling because it’s easier to maintain the status quo than embark on a transition that may be overwhelming or stressful. For those who choose to pursue a career pivot bravely, there can be opportunity and fulfillment waiting on the other side.

If you find yourself seriously considering a career change, you’ll need to determine the Why, What, and How. Let’s dig in.

The Why

Everyone – business owners and career professionals alike – have moments when they question their career paths. It may be that you’re going through a tough season at work where you feel less than inspired, or it may be that you are genuinely ready for a change. Before making any big moves, it’s crucial to evaluate exactly why you desire a change. Usually, your situation will fall into one of three categories:

  1. You’re feeling unfulfilled at work.
  2. You’re feeling unfulfilled in your personal life.
  3. You’ve reached a growth ceiling in your current position.

Do You Know Your Financial Independence Day?

25 June 2020

Do You Know Your Financial Independence Day?

Independence Day is one of America’s favorite summer holidays. What is one of your favorite traditions on Independence Day: fireworks, hotdogs, parades? In this blog, I want to talk about another kind of Independence Day, your Financial Independence Day.

If money and time were not an issue, what kind of activities would you be doing over the next twelve months? The day when work becomes optional—when you can choose to stop working and start doing those activities that you enjoy while maintaining your current standard of living—is the day you’ve reached your financial independence day. This day is the end result of a process of determining your retirement income goals, the actions, and the decisions necessary to achieve those goals. Retirement planning is, in essence, preparation for life after paid work ends, not just financially, but in terms of lifestyle choices, such as how to spend time in retirement, where to live, when to completely quit working.

A Plan for Every Stage of Life

People often deny themselves their dreams because they don’t understand the resources needed. This is why it’s important that I get their list of dreams during a discovery meeting in order to explore options and tell them what’s realistic. If a goal is unrealistic based on current net worth, income, and expenses, I can make suggestions for changes to get them to a better place. I can run some scenarios to show if they are spending too much now to retire in their target year, and I can offer recommendations. Financial independence isn’t necessarily just about retirement; it could involve the pursuit of a new career.

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