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I Have $2.2 Million Invested With My Advisor Who Charges a 1% Fee. Am I Paying Too Much?
When it comes to advisor fees, there are two numbers to keep in mind: 1% and 0.02%. The first is the average fee that financial advisors tend to charge. If you are looking for comprehensive financial management, in general you should expect to pay about 1%. The second is a representative fee for a well-indexed […] The post I Have $2.2 Million Invested With My Advisor Who Charges a 1% Fee. Am I Paying Too Much? appeared first on SmartReads by SmartAsset.
How Can I Receive Living Expenses as Grantor From an Irrevocable Trust?
Trusts are an independent legal entity, similar to a corporation. As a result any assets you contribute belong entirely to the trust itself, the same as if you gave your money to any other third party. If the trust is an irrevocable trust, there is no legitimate way for you to take this money back. You […] The post How Can I Receive Living Expenses as Grantor From an Irrevocable Trust? appeared first on SmartReads by SmartAsset.
I'm Planning to Get a $3,200 Monthly Social Security Benefit. How Can I Avoid Taxes?
More and more retirees are being taxed on Social Security benefits. Legislative changes over the decade have shaped the age of receipt, amount of benefits and taxation over the decades, meaning many Americans unexpectedly will face taxation on the public program paid into during their working years. For someone starting their Social Security benefits at […] The post I’m Planning to Get a $3,200 Monthly Social Security Benefit. How Can I Avoid Taxes? appeared first on SmartReads by SmartAsset.
I'm 65, Taking Social Security and Have $830,000 in a 401(k). Is It Too Late to Convert to a Roth IRA?
There is no age limit on Roth conversions, so you can transfer pre-tax savings into a Roth IRA regardless of your age or retirement status. As long as you have qualifying funds in a pre-tax portfolio, you can move them to an after-tax Roth account. A financial advisor can help you make important decision surrounding […] The post I'm 65, Taking Social Security and Have $830,000 in a 401(k). Is It Too Late to Convert to a Roth IRA? appeared first on SmartReads by SmartAsset.
Is it Wise to Convert 10% of My 401(k) into a Roth IRA Each Year to Avoid Taxes and RMDs?
A Roth IRA has a couple of significant advantages. Most notably, they allow your retirement savings to grow tax-free (as opposed to tax-deferred) and they have no required minimum distributions (RMDs). If your priority is to control your retirement savings, then a Roth IRA might be the right choice. However, Roth IRAs have their disadvantages […] The post Is it Wise to Convert 10% of My 401(k) into a Roth IRA Each Year to Avoid Taxes and RMDs? appeared first on SmartReads by SmartAsset.
Ask an Advisor: Should I Cash Out My $200k in Annuities and Buy a Rental Property That Will Bring in $1,500 Per Month?
I've already retired and I've got $200,000 in annuities and I'm 60 years old. Should I get a monthly income from my annuities (which will be about $1,000 or withdraw all of the annuities, pay the 30% tax and invest in a rental property and use that money - approximately $1,500 - for an income? […] The post Ask an Advisor: Should I Cash Out My $200k in Annuities and Buy a Rental Property That Will Bring in $1,500 Per Month? appeared first on SmartReads by SmartAsset.
I'm 55 With $1.2 Million in My 401(k). Would Catch-Up Contributions Be Worth It?
Catch-up contributions are designed to help people save extra money in tax-advantaged retirement accounts once they hit age 50. For many savers who are behind on their retirement savings goals, catch-up contributions represent a not-to-be-missed second chance at securing a more comfortable retirement. A financial advisor can help you plan and save for retirement. Connect […] The post I'm 55 With $1.2 Million in My 401(k). Would Catch-Up Contributions Be Worth It? appeared first on SmartReads by SmartAsset.
I Want to Convert $920k from a 401(k) to a Roth IRA. How Can I Reduce Taxes?
Transferring funds from a 401(k) into a Roth IRA lets you make tax-free free withdrawals in retirement, avoids rules on mandatory distributions and adds flexibility for estate planning. However, when converting a large amount of money, the potential tax bill becomes a major issue. Fortunately, strategies exist that can reduce the tax bill significantly and […] The post I Want to Convert $920k from a 401(k) to a Roth IRA. How Can I Reduce Taxes? appeared first on SmartReads by SmartAsset.
A Successful Retirement May Hinge on Avoiding These Careless Mistakes
Deciding to retire can feel a bit unnerving. Retirees have plenty to potentially worry about – some of which they have no control over – like how the market will perform and how fast prices at the supermarket will increase. But regardless of the economic environment, simple mistakes can prove costly for retirees. Here are […] The post A Successful Retirement May Hinge on Avoiding These Careless Mistakes appeared first on SmartReads by SmartAsset.
My Dad Left Me $550k in an IRA, But I'm in the 32% Tax Bracket. How Should I Structure My Withdrawals?
If you inherit a tax-deferred retirement account, like an IRA or a 401(k), you’ll pay income taxes on the money when you withdraw it. Those withdrawals are subject to your marginal tax rate, not the original owners. This can reduce the value of your inheritance, potentially by quite a lot if you are in a […] The post My Dad Left Me $550k in an IRA, But I’m in the 32% Tax Bracket. How Should I Structure My Withdrawals? appeared first on SmartReads by SmartAsset.
Ask an Advisor: I Plan to Retire in Abroad But Need Another $300k-$400k. How Can I Get There?
I’m divorced three times, retired from the military and plan to retire from civil service in about four years at 64 years old. I have $150,000 in a thrift savings plan. I’m saving $900 monthly in this account and would be happy if it grew to $300,000 to $400,000. I’m also starting to put $600 […] The post Ask an Advisor: I Plan to Retire in Abroad But Need Another $300k-$400k. How Can I Get There? appeared first on SmartReads by SmartAsset.
I'm Going to Get $2,800 Per Month in Social Security. How Do I Reduce My Taxes on It?
One of the biggest surprises would-be retirees face when planning their retirement finances is the fact that their Social Security benefits could very well be subject to income tax. A financial advisor can help you plan for Social Security and potentially minimize your tax bill on your benefits. Connect with a fiduciary advisor today. One […] The post I'm Going to Get $2,800 Per Month in Social Security. How Do I Reduce My Taxes on It? appeared first on SmartReads by SmartAsset.
I'm 70 Years Old With $1.2 Million in an IRA. Is It Too Late to Convert to a Roth IRA?
In retirement, it's not too late to convert your money into a Roth IRA. The IRS will let you convert qualified funds at any time, as long as you pay the associated taxes. It might, however, be too late to get real benefit from that decision. A Roth IRA works best when it has time […] The post I'm 70 Years Old With $1.2 Million in an IRA. Is It Too Late to Convert to a Roth IRA? appeared first on SmartReads by SmartAsset.
Ask an Advisor: I'm 44 With $1 Million in Retirement Savings. I Want a Backdoor Roth IRA, But I Don't Know Where to Start
I’m 44 with $1 million in my 401(k), IRA and Roth IRA. Since my total household is above the threshold for investing in a Roth IRA, I have been considering employing the backdoor Roth IRA tactics. I left $700,000 in a 401(k) at my old employer. I am trying to strategize on “distributing” the old 401(k) balance […] The post Ask an Advisor: I’m 44 With $1 Million in Retirement Savings. I Want a Backdoor Roth IRA, But I Don’t Know Where to Start appeared first on SmartReads by SmartAsset.
Can a Nursing Home Take Our Savings? We Have $350,000 in IRAs
A $350,000 account could be exhausted in just a few years if both members of a couple required semi-private rooms in skilled nursing facilities. However, that's not necessarily what would happen. For one thing, most people don't run up nursing home bills of that magnitude. Also, you may be able to get government assistance to […] The post Can a Nursing Home Take Our Savings? We Have $350,000 in IRAs appeared first on SmartReads by SmartAsset.
I'm Selling My House and Netting $480k. Can I Avoid Taxes While Downsizing for Retirement?
In most cases, when selling your primary residence you can exclude $500,000 of the gain if you file as a married couple. If that's your situation, and you meet conditions to have the gain qualify as a long-term capital gain, you likely won't owe any tax. If you file singly while still meeting long-term capital […] The post I’m Selling My House and Netting $480k. Can I Avoid Taxes While Downsizing for Retirement? appeared first on SmartReads by SmartAsset.
Can I Use My RMDs to Transfer Money Into My Roth IRA?
If you're taking a required minimum distribution from an IRA, 401(k) or other tax-deferred account and don't need the money to cover living expenses, where should you stash that unneeded cash? Investors now need to start taking RMDs at age 73 or, if they were born after 1960, at age 75. Depending on the balances of […] The post Can I Use My RMDs to Transfer Money Into My Roth IRA? appeared first on SmartReads by SmartAsset.
What Should I Do With My 403(b) Once I Retire?
If you have an employer-sponsored retirement plan, like a 403(b), leaving your job means you’ll need to decide what to do with your account. When retiring, you have three main options: You can retain your old 403(b) if the plan allows it, roll your money over into an IRA or a Roth IRA, o4 withdraw […] The post What Should I Do With My 403(b) Once I Retire? appeared first on SmartReads by SmartAsset.
I'm 60 With $1.1 Million in an IRA. Is It Worth Converting $100,000 Per Year to a Roth to Avoid RMDs?
Required minimum distributions, or RMDs, are a problem for some retirees. If that's your situation, a Roth conversion may be able to help. The advantage to switching your money from a pre-tax portfolio, like a traditional IRA, to a post-tax Roth IRA is an end to RMD concerns. Since you've already paid taxes on the […] The post I'm 60 With $1.1 Million in an IRA. Is It Worth Converting $100,000 Per Year to a Roth to Avoid RMDs? appeared first on SmartReads by SmartAsset.
Ask an Advisor: I'm 60 With $65k in Pension Income and $100k in My IRA. Is a Roth Conversion Worth It?
I'm 60 and I would like to convert some money from my regular IRA to a Roth. I'm aware that the earnings are subject to penalty before five years but I won't need that money until at least age 70. Is it advisable to do so? My annual income from a pension is $65,000 and […] The post Ask an Advisor: I'm 60 With $65k in Pension Income and $100k in My IRA. Is a Roth Conversion Worth It? appeared first on SmartReads by SmartAsset.
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