With the recent changes brought by the SECURE 2.0 Act, there's exciting news for those with leftover 529 plan funds. Starting in 2024, you can roll unused 529 assets into a Roth IRA for the beneficiary without facing tax penalties. This new option provides flexibility for managing your child's educational and retirement savings. Let’s dive into the details and explore how this can benefit you and your family.
For many people, contributing to a Roth IRA is a fantastic way to save for retirement due to its tax advantages. As long as you are over the age of 59.5 and have had the Roth IRA for at least 5 years, all your distributions in retirement are tax-free. Given the current economic climate, many experts anticipate that tax rates will rise in the near term. Even if no new tax laws are enacted, the Tax Cuts and Jobs Act will sunset after 2025, resulting in higher tax rates. Coupled with the recent federal spending due to the pandemic and increased government debt the likelihood of increased future taxes makes a Roth IRA even more valuable.
You may have seen alarming headlines predicting that Social Security will run out of money by 2035. With around 10,000 baby boomers retiring daily, the system has been under significant pressure for years and it's understandable to wonder if Social Security is heading toward insolvency. Let’s break it down and understand what’s really going on.
As a parent, seeing your children graduate from college is a significant milestone. It's a moment of pride and accomplishment, but it also often comes with the realization that a major financial responsibility is now behind you. Now that the kids are off your payroll, this naturally leads to the next big question: "When can I retire?" Retirement is a deeply personal decision, influenced by many factors beyond just the financial. Our goal is to help you balance both the financial aspect along with the lifestyle factors so you can live the retirement you desire.
Investing in the stock market might seem like a labyrinth, but have you ever heard about direct indexing? It's an investment strategy that places you in the driver's seat, letting you replicate big-name stock indexes like the S&P 500 or the Russell 3000 in your taxable account by directly owning the individual stocks.
You have worked your whole life saving and preparing for retirement and the next season of your life. This is a time when you can enjoy the fruits of your labor, travel, spend time with the grandkids, explore new hobbies, volunteer and do anything you did not get to do while working. Avoiding common retirement mistakes and pitfalls or misjudging retirement income needs is crucial for a stress-free retirement. Ensuring your retirement plan includes thoughtful estate and tax planning while steering clear of emotional investment decisions and frequent financial mistakes can set a solid foundation. We'll explore how to create a reliable safety net through diversification and the importance of regular reviews to adjust your nest egg, aiming to steer clear of the biggest retirement planning pitfalls and ensuring your social security benefits work effectively for you.