The rise of TikTok has transformed various sectors, and finance is no exception. Dubbed #FinTok, this social media platform is overflowing with financial content that ranges from sound investment strategies to dubious money-saving hacks. While it might seem appealing for many, especially younger audiences, the excitement is frequently overshadowed by potential misinformation. A report by
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The world of retirement accounts can be complex, particularly when it comes to inherited accounts. With recent changes ushered in by legislation like the Secure Act of 2019 and Secure 2.0, understanding how to efficiently manage a newly inherited pretax Individual Retirement Account (IRA) is imperative. Failure to navigate these waters can result in hefty
One popular method for reducing future tax liabilities on pretax retirement account withdrawals is through Roth individual retirement account (IRA) conversions. This process involves transferring pretax or nondeductible IRA funds into a Roth IRA, which allows for tax-free growth in the future. While this can result in immediate income taxes on the converted balance, financial
As members of Generation X approach retirement age, they are facing immense pressure when it comes to saving for their golden years. Gen X, born between 1965 and 1980, is caught in a financial dilemma sandwiched between caring for elderly parents and supporting their adult children. According to a 2024 report by Natixis Investment Managers,
In a time where the job market is competitive and uncertainty looms, it’s essential for individuals to consider all avenues for financial planning, including tax strategies. Experts suggest that despite challenges such as prolonged unemployment and lower income projected for 2024, there are opportunities for tax planning that can lead to potential savings. One of
Mega backdoor Roth conversions are a powerful strategy that can significantly boost tax-free retirement savings for individuals who exceed the income limits for traditional Roth IRA contributions. This maneuver involves making after-tax contributions to a 401(k) plan and then converting these funds to a Roth IRA. Unlike regular backdoor Roth conversions, mega backdoor conversions allow
Many self-employed individuals are considering hiring their own children to take advantage of tax benefits and other advantages. While this topic has gained popularity on social media platforms like TikTok and Instagram, it is crucial to separate fact from fiction when it comes to the regulations surrounding this practice. Certified financial planners and tax professionals
Aspiring homeowners, especially those from the millennial and Gen Z generations, are considering the option of using funds from their 401(k) accounts to finance the purchase of a home. According to the Real Financial Progress Index by BMO Financial Group, 30% of respondents expressed their intentions to withdraw money from their retirement savings to buy
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