How Does a Paycheck Matter to How I Save? With regard to how you can save, one of the benefits related to earned income (having that paycheck) is that you get easy access to tax-advantaged accounts for your long-term saving and investing. This applies to self-employed people, too: ind...
Children growing up does more than free up cash flow. It frees up time. Tim Urban’s powerful blog postThe Tail Endpoints out that by the time a child graduates high school, they’ve spent 93% of the in person time that they will ever spend with their parents in their lifetime. The ...
What Rachel misses most is spending time with her boys, who are growing up too fast for her liking. She knows that she might only have 5-6 years left to spend time with her sons before they would prefer spending all their free time with their friends. Before she knows it, they'll be...
The key to growing wealth is having the discipline to investany money above the cash amounts you’ve decided on above. If you haven’t maxed out your retirement accounts, those may be a good optionto stash away your additional investment money. These accounts could include your 401(k), 40...
5. Consider rolling over into a Roth IRA before age 70½ Of course, Uncle Sam will still want his cut of the income you put in tax-deferred retirement accounts, which can cause a nasty tax surprise for singles post-retirement. That's because withdrawals from tax-deferred retirement account...
Transferring Your Pension to a New Employer: If you start a new job with an employer that offers a pension plan, you may be able to transfer your pension funds to the new plan. This allows you to consolidate your retirement savings and continue growing your pension benefits. However, it’...
Using a QDRO to divide the pension can help minimize tax consequences. In a QDRO, the non-employee spouse can roll their share of the pension into an individual retirement account (IRA) without incurring taxes at the time of the roll-over. This allows the funds to continue growing tax-defe...
But here’s where a second trick comes into play. Trick Two: Dial Down the Distributions That second trick? If you can, you dial down the distributions to the shareholder. Why does this work? As noted earlier, an IRS agent can only reclassify as wages those distributions the S corporation...
Rollover IRA you get to choose the fund company meaning you can choose which company has the most choices for you. Most IRA custodians offer way more investment choices than a 401(k) does. In fact, with a brokerage account linked to your IRA you can have thousands of places to put your...