To answer the question of Roth vs. Traditional IRA, they chose to “bite the tax bullet” now and enjoy tax-free withdrawals. It's the same for retirees who converted a traditional account to a Roth. (Their heirs will also inherit the tax-free accounts.) Let's take a look at the Roth vs. Traditional IRA.
Having a strategy to generate income you can’t outlive can give you peace of mind. To help defend your future against inflation, market ups and downs, unexpected expenses, and longevity, I encourage you to build a diversified income plan.
When it comes to retirement, there are many things to look forward to. There are also things to take precautions against. Here are four retirement concerns many people often have.
On this episode of the How Money Works Podcast, we talk about some of the areas of your financial life where you might be flirting with disaster and how you can fix it.
It’s probably safe to say most investors are very aware of the recent downturn in financial markets. In addition, you probably want to understand the impact of Covid-19 on your portfolio. To be perfectly honest, I’d love to give you a specific, realistic, and quantifiable answer.
Outside of withdrawals, the real question is: If I make it, can I keep it? Well, one of the investments we use allows you to make it AND keep it. They are fixed indexed annuities.
Be careful before diving headfirst into a Roth conversion. Evaluate your income for the year and determine how much wiggle room you have before potentially pushing into the next tax bracket. Remember that Roth conversions can impact financial aid, IRMAA surcharges and other items based on income.
The recently-enacted “Coronavirus Aid, Relief, and Economic Security Act,” or CARES Act, includes special tax relief for IRA and company plan withdrawals made in 2020 and for company plan loans. Here is an overview of the CARES Act relief.
Despite the ubiquity of Roth accounts, there are some common misunderstandings about how Roth IRAs and Roth 401(k)s operate and interact with each other. Confusion swirls around such basic concepts as contribution limits, eligibility and Roth rollovers.