Even during difficult financial times, opportunity can come knocking at your door. There is very little doubt that the current COVID19 pandemic has wreaked havoc on the U.S. economy, affecting almost every individual in its path. With that said, certain events have made 2020 the year to strongly consider converting any eligible investment accounts into a Roth Individual Retirement Account? Does a Roth Conversion Make Sense for Retirees? Under normal circumstances, the conversion of a traditional IRA to a Roth IRA would make little sense for a retiree with other sources of income. They would be required to pay taxes …
Summer Home Security Tips
Your home is your pride and joy and you should always feel safe and secure when you are in it.Summer is upon us and the warmer temperatures mean we are spending a lot more time outside, enjoying our grounds. Employ these simple tips to make safety a priority on your property. They will make it easy for you to have fun in the outdoors without worrying about hazardous or potentially dangerous conditions. These tips will also help you protect your home from being a target for invasions. 1. Keep Your Hedges Trimmed You never want your home to experience an …
Estate Planning & Unpaid Debts
When we pass, there will be debts that are left unpaid even if we stay caught up with our financial obligations. At the very least, there will be the medical bills accrued towards the end of life and any bills that can end up delinquent as a result of illness. There are more ways that you’ll leave unpaid debts behind after you die, so knowing how to prepare for them in advance with a good estate plan is essential. What Happens at Probate? When anyone dies, their estate goes through the probate process, and this process can take anywhere from …
Ask THIS Before You Claim Social Security
Should I claim my Social Security benefits now? It’s a common question, and it’s one that you’re very prudent in asking. Timing is the biggest facet in maximizing your benefits. Yet, you’ll get an array of answers on the best timing. Let’s break down three questions that will give you the most definitive answer to your question. Social Security: Timing Is A Crucial Decision Approaching Social Security age can be one of the most confusing times in life. While there’s a plethora of information to warn you of the potential pitfalls and mistakes, much of this info that’s supposedly designed …
Laid Off Before You’re Ready To Retire?
If you have been one of the many impacted by COVID-19 and you’re closer to retirement than some, then you should look through these tips to see what you can do to overcome this problem. Check Your Savings Check your savings account to see how much money you have. It’s a necessary exercise to be sure you have enough in your account to last your entire retirement. If you are not working with a financial planner, this may be an ideal time to start. You should also verify that you have more than you need since you never know when …
UPDATE: RMD Requirements
If you missed the news, the IRS announced that if you already took out your maximum percent for your Required Minimum Distribution, you are still in luck. According to the IRS, you can still roll over those funds and put them back into your account. That is according to the current Coronavirus, Aid, Relief and Economic Security (CARES) Act waiver. This new waiver has been extended until the end of August. That should give you enough time to replenish your accounts before the end of this year, if you choose to. These updates also include what will happen with your …
Summer Travel: Flying in the Pandemic
After months of desolation at the airports, air travel has increased every week leading into the busy summer vacation season. With full flights becoming more of the norm, it is more challenging than ever to socially distance on planes, making it important that you follow additional precautions. Mask Up: The number one thing that you need to remember before heading to the airport is to mask up. Most airlines and airports now mandate the use of masks. It is a good idea to bring along a few different masks to switch out as necessary. If you are boarding a long …
Risk Tolerance Vs Risk Capacity: Knowing The Difference
The economy that we all wake up in each day under COVID-19 looks a lot different from the one that existed before the virus took hold in the United States and around the world. It has been a major point of reflection for people all around the world. Many are reviewing how they have ran their personal financial life up to this point and reconsidering some of the steps that they have taken. As such, one of the items that some have looked at is their risk tolerance versus their risk capacity. The two are different, and we want to …
Financial Lessons This Crisis Can Teach You
The current economic crisis was unexpected, but it hit quickly. Within a month, the stock market lost about a third of its value. Many investors were hit particularly hard. As states largely locked down, many workers saw their jobs evaporate without much warning. Some of these layoffs were temporary. Unfortunately, many people are still out of work. One thing is clear, the rapid decline in the ability of many Americans to pay their bills should teach some important lessons. Emergency Funds Are Necessary First, it’s extremely important to have a fund for rainy days. It will eventually rain, and having …
Your 401k Match is Suspended. Now What?
The recent global pandemic has caused many different types of economic fallout. It has resulted in many companies suspending the matching of their employee’s 401(k) contributions. The Plan Sponsor Council of America conducted a survey. It discovered over 20 percent of large companies and organizations are currently suspending their matching contributions. A report from the Center for Retirement Research showed approximately 50 companies have suspended 401(k) matches for its employees. Factors Many employees are listening to what financial experts are saying about continuing to contribute to their 401(K) if their employer has suspended matching contributions. These experts explain there are …