Financial Planning

A Roth conversion is the process of moving traditional IRA dollars, which are taxed when withdrawn, to a Roth IRA which can be withdrawn tax free. Benefits of a Roth conversion Tax-free income in retirement Ability to pass assets tax-free to heirs Lower Required Minimum Distribution (RMD) For example, you have a traditional IRA with a $100,000 balance as of 12/31 in 2021 and you turn 72 in 2022. Your RMD for 2022 would be roughly $3,600. But let’s say…

The Department of Education announced in early August the final extension of the student loan payment pause until January 31, 2022. With this comes relief measures for eligible loans including: Suspension of loan payments 0% interest rate Stopped collections on defaulted loans Even with the extension, this highlights the need to plan for the resumption of loan payments for student loan borrowers in February 2022. Here are a few important questions every borrower should ask themselves soon to be ready…

The holidays are right around the corner and for most Americans that means the beginning of a hectic holiday season. Here are some pointers so that you can make the gift buying season easier for your wallet and your stress level. 1. Create a budget and stick to it. Make a list of all of the people you need to buy for this year, set a spending limit for each gift, and then follow it! 2. Use credit cards in…

Having an easy to manage spending plan is the cornerstone for financial success. It’s important to know your cash inflows and outflows so that you make the most of your hard-earned cash. Knowing how much you spend on categories like groceries, eating out, or gas can help you identify areas where maybe you are spending too much. This can help you direct funds towards something else that has importance to you, such as saving for retirement, a new home, or…