Category: Finance

Finance

Budgeting for Saving and Investing: Building Wealth for the Future

Retiring at ages 66–67 will glean a full Social Security benefit, depending on when you were born and age 70 is the latest age to start receiving Social Security benefits. It’s a question that depends on your personal needs and circumstances. The National Bureau of Economic Research found that “retirement improves both health and life satisfaction” but the age at which you retire impacts the quality of your retirement. Ensure all documents are properly notarized and stored somewhere safe.

For the self-employed and small business owners, the SEP IRA  contribution limit was raised to $61,000 in 2022, up from $58,000 in … Read More

Finance

Budgeting Strategies for Effective Money Management

Also, they can invest small amounts regularly to reach their target amount. Start by paying off the bad debts (highest interest rates) as quickly as possible. Focus as much as you can on knocking out high-interest debts quickly and allow your lower-interest debts to be paid off at minimum payments. Avoid obtaining future bad debt by refusing to go into debt for consumer goods. High-interest debts with low value (like credit cards), do not give you a beneficial asset but will cost you in fees and interest. Instead, look for good debt (like real estate investments or educational investments) that … Read More

Finance

Credit Score and Bankruptcy: Recovering Creditworthiness after Financial Hardship

While you may work part-time or pick up the odd gig here or there, it probably won’t be enough to sustain your current lifestyle. That’s why it’s so important to have a viable plan that allows you to get the maximum amount of money when you retire. Your estate plan addresses what happens to your assets after you die. It should include a will that lays out your plans, but even before that, you should set up a trust or use some other strategy to keep as much of it as possible shielded from estate taxes. So when it comes … Read More

Finance

Budgeting for Retirement: Securing Your Financial Future

At the average retirement age of 65, most Americans will live 18 to 20 years longer because of healthier diets and fewer deaths from diseases. This, of course, means retirement planning should take careful consideration for this last quarter of your life. Waiting also gives you a few extra years to shore up your tax-advantaged investment accounts. Investors who are at least 50 years of age can make an annual catch-up contribution to their 401(k) or IRA. For 2023, those 50 or older can contribute $7,500 to a traditional IRA or Roth IRA, up from $7,000 in 2022. If you … Read More

Finance

Credit Score and Financial Planning: Incorporating Your Score into Your Strategy

After you’ve created your plan, remember to review it at least every five years or whenever you experience a life-changing event. If you need help building or vetting your plan, you can find a financial advisor to help. Before you can retire, you have to decide how you want to retire. Consider where you want to live, whether you’ll have a job (this may sound crazy, but some people like to work in retirement), and what your expenses will be. This can be difficult to predict, but you can always refine your estimate down the line. As you review, keep in mind … Read More

Finance

Retirement Income Withdrawal Strategies: Making Your Money Last

While that asset mix is still popular among savers today — you get some growth from stocks and some protection from bonds — investors now have more choice. It’s as easy as setting aside some money every month—every little bit counts. The easiest way is to start contributing through an employer-sponsored plan if your company offers one.

That means you could pay as much as 37% in taxes on any money that you take from your traditional 401(k) or IRA. That’s why it’s essential to consider a Roth IRA or a Roth 401(k), as both allow you to pay taxes … Read More