If you saved for retirement in a tax-deferred account, you lowered your taxes in the years you contributed pre-tax dollars. When you get into retirement and start to withdraw those funds, the taxes will be due. And once you reach age 72, you'll be subject to required minimum distributions (RMDs) to ensure that you take ever-increasing amounts out of these accounts so the taxman can get his share.
Read MoreSo, you’ve decided you need help with your money and want to begin working with a financial advisor. But how can you find the right one? Searching online is one way, or you could ask for recommendations from friends and family. However, the right advisor for someone else isn’t necessarily the right person for you. Here’s what you should consider in your financial advisor search in Overland Park, Kansas.
Read MoreStocks reached the unenviable milestone of entering a bear market this quarter. A bear market is when the market declines 20% or more from its peak. The S&P 500 reached its high in early January and has sold off 23.5% at its lows in June. 2022 marks the worst start to a year since 1970. There have been worse six months periods for stocks over the last 50+ years, but this is an attention-grabbing headline nonetheless.
Read MoreReaching the mid-point of your career isn't like getting your first high-paying job or the last few years before retirement. Those milestones track closely to age, with the first big job coming in your twenties and retirement happening in your late 50s or early 60s. The mid-point is different. It lasts a lot longer – potentially over a decade – and it's as much a mindset as a set of circumstances or financial markers.
Read MoreHow do you go about making the big decisions in life? For most of us, it's a blend of trying to be logical, weigh pros and cons, explore various outcomes, and think about the process. But when it's time to decide, the biggest factor is usually much more emotional. We go with our gut. And that's usually the right answer.
Read MoreTrading and investing are very different strategies, and it’s important to understand the principles of each. While both may be incorporated in an investor portfolio, they have separate objectives and distinct roles to play.
Read MoreThe midpoint of your career, when your income has increased, and you have some visibility into your likely earnings trajectory, usually corresponds to other responsibilities. These may include home ownership, creating a family, saving for kids’ education, and increasing retirement savings. And, of course, higher income means higher taxes.
Read MoreDepending on how old your kids are, you may have ample time to plan ahead, or graduation is on the horizon and the clock is ticking.
Sorting through the process, from 529 plans, to taking out loans, to financial aid from the government or the college, to scholarships, there are so many options.
Taking a step back and looking at the big picture, and then breaking it down into a series of decisions and action steps can reduce stress and help you manage costs.
Cash flow planning is at the core of a sound financial plan. It's how you link all the pieces of your plan together and get them working effectively towards your short- and long-term goals. It incorporates income, spending, saving, and investing into a framework that builds wealth. A strong cash flow plan can also help you strategize debt, taxes, your career, and how to optimize non-financial assets, like an investment property.
Read MoreThis year started off with a stark reminder that the markets don’t always move higher. After two years of strong market performance, this quarter saw both stocks and bonds sell off. This marks the eighth time since 1990 that both asset classes had a negative return in the quarter and the first time this has happened since 2018.
Read MoreThe market crashed over 10% in a single day in March 2020. While many investors sold out of their positions, those who held on and continued investing were rewarded, heavily.
In just 354 days following the crash, the stock market as represented by the S&P 500 surged back into a bull market and doubled in value. Those who sold at the bottom missed a rare opportunity, which demonstrates the importance of managing emotions in uncertain times. Some believe that you can remove emotion from decision-making, but we’re human. Everyone has emotions. The important part is learning how to manage them while managing your money.
We’re going to cover the challenges that come with the mixture of investing and emotions and how you can best manage your money in uncertain times to increase your chance of being a successful investor.
Read MoreAs you’ve built your career and your life, you’ve probably focused a lot on identifying goals to achieve. Your financial plan is likely tied to specific goals, too. If you’ve done any work on budgeting, cash flow planning, or saving for retirement or other milestones, you know that goals are central to the process. They help you determine how much to save, where to invest and what your time horizon is.
Read MoreMoney is personal to each of us and deeply related to our histories, childhoods, fears, and dreams of success. For most couples, sharing finances at some point becomes necessary and desirable. So how do you successfully combine finances in a way that protects each person and lets you move ahead together? It starts with good communication.
Money taps into so many emotions that have the potential to be negative, such as fear, shame, and stress. It can also be a core part of our relationships with our parents growing up and navigating maturity and adult life. These can all be minefields when setting out to discuss finances constructively. It's a good idea to have a framework that allows for the space, respect, and kindness you strive for in other aspects of your relationship.
Read MoreStocks finished the quarter and year on a strong note despite concerns surrounding new strains of COVID 19 and high inflation data. The S&P 500 wrapped up 2021 just below all-time highs but saw 70 record highs reached this year. This is the second most ever record highs seen, only topped by 1995. Robust corporate earnings and economic growth were the catalysts to lift stocks this year. Inflation continues to be something to monitor. It peaked this fall at 6.8%, which was its highest level since 1982. To address higher than anticipated inflation, the Federal Reserve (Fed) has signaled they plan to scale back their asset purchases and possibly raise interest rates sooner in 2022.
Read MoreThis year consisted of surges when I finished books quickly and prolonged dry spells when I did not pick up a book. I am happy to share five great titles that I think are worth sharing and would be great gifts or holiday reads!
Read MoreWith 2021 coming to a close, we wanted to gather a list of the most popular articles from our website. This year's list focused almost exclusively on financial planning topics. We have enjoyed coming up with great ideas and are thrilled so many people read our articles each year.
Read MoreEmployee stock purchase plans, or ESPPs, allow companies to give their employees a stake in the company. The plan lets employees buy shares of stock at a discount. The problem is that it may not be clear what an ESPP is or when to use it.
ESPPs are one of the best ways for employees to build wealth over time through stock investment. But it isn’t right for everyone. Should you use it? Let's dive in to find out.
Traditional 401(k)s offer pre-tax contributions — it lowers your tax bill now, but you’ll pay taxes when you withdraw in retirement. Roth 401(k)s are becoming more common and can give you tax-free withdrawals in retirement (but you won’t get any tax benefits now).
When considering a traditional vs Roth 401(k), which is right for you? Keep reading to discover when you should contribute to a Roth vs traditional 401(k).
Read MoreThe stock market experienced its first pullback in what has felt like a straight march higher since the spring of 2020. Markets initially rallied early but gave up most of its gains this quarter because of a September sell off. Worries that economic growth would miss its growth targets and shift to a mid-cycle economic recovery weighed on stocks.
Read MoreA Health Savings Account, also known as an HSA, can be a very beneficial tool to pay for medical expenses.
In this guide, we’ll discuss all of the Health Savings Account benefits, including saving money on your taxes, getting more out of each paycheck, and supplementing your retirement savings.
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