For many Americans, setting up an emergency fund hasn’t been a top priority. Studies show that nearly a third of adults in the U.S have no emergency savings at all. With day-to-day expenses, rent or mortgage payments, utilities, and occasional purchases creating a safety net is one of those things you might not usually think about until it’s too late. In light of the current global health crisis, having an emergency fund to get you through hard times might have become more important than ever before. Even if you don’t currently have three months’ worth of living expenses stashed away ..read more

If you are above the income limits for a Roth IRA don’t assume that you are restricted from opening one. The Backdoor Roth IRA is a tax loophole that allows anyone to open a Roth IRA. For 2020 if you are a Single filer and earn over $139k (over $206k for married filing jointly) you cannot contribute to a Roth IRA. But here’s how to do it. What is a Backdoor Roth IRA? The Backdoor Roth IRA is made possible by a tax loophole that gives high income earners the ability take advantage of the tax-advantages offered by the Roth IRA. To understand how it works, first let’s take a quick look at tradit ..read more

The “Setting Every Community Up for Retirement Enhancement Act of 2019”, better known as the SECURE Act is quite a mouthful isn’t it!! The Secure, Act—signed by President Trump on Dec. 20—brings the most sweeping changes to the US retirement system in over a decade. Most provisions in the law become effective January 1, 2020. Open multiple employer plans (MEPs) provisions will be effective January 1, 2021. Key Highlights of the SECURE Act The SECURE Act makes it easier for small business owners to set up retirement plans for their employees that are less expensive and easier to administer. Ma ..read more

The IRS announced on Nov 6, 2019 that employees in 401(k) plans will be able to contribute up to $19,500 in 2020 up from $19,000 in 2019. The catch-up contribution limit for employees aged 50 and over who participate in these plans will also increase by $500 to $6,500. To summarize here is how the 401(k) plan limits will change in 2020: The 401(k) contribution limit will increase to $19,500. The 401(k) catch-up contribution limit increase by $500 to $6,500 for those age 50 and above. The limit for employer and employee contributions will be $57,000. The 401(k) compensation limit will climb to ..read more

Retirement is one of the biggest, most common and most talked about goals that people have. After all, your retirement savings determine how comfortably you’ll live in retirement and whether your money will outlast you. It is imperative that you try and maximize your retirement contributions right from the very outset of your career in order to build a large enough nest egg that will be able to handle inflation and market volatility not to mention growing life expectancy. Here are our 9 tips to maximize your retirement contributions. 1. Start As Early As You Can No one can deny the power of co ..read more

Retirement is one of the biggest, most common and most talked about goals that people have. After all, your retirement savings determine how comfortably you’ll live in retirement and whether your money will outlast you. It is imperative that you try and maximize your retirement savings right from the very outset of your career in order to build a large enough nest egg that will be able to handle inflation and market volatility not to mention growing life expectancy. Here are our 9 tips to maximize your retirement savings. 1. Start As Early As You Can No one can deny the power of compounding. T ..read more

The average couple retiring today at age 65 will need close to a whopping $300,000 to cover health care and medical expenses in retirement, according to an estimate by Fidelity assuming lifespans of 87 for a man and 89 for a woman. A Health Savings Account, or HSA, is a unique, tax-advantaged account that can be used to pay for current or future healthcare expenses. If you are enrolled in a high-deductible health insurance plan (HDHP) as defined by the government, you can qualify for an HSA. These plans are re-defined each year by the IRS, which determines the minimum deductible they must have ..read more

The AARP Credit Card is one of the best credit cards for retirees. It comes with No Annual Fee. $200 bonus for spending just $500 in the first 3 months. 3 points per $1 on gas and restaurant purchases. 1 point per $1 on everything else. Plus, you can use those points to pay for your AARP membership, which provides discounts on insurance, travel, dining, phone service and more. The AARP credit card also comes with the social cause of donating to the AARP foundation to help end hunger. For every purchase you make at restaurants with your AARP® Credit Card from Chase, $0.10 will be donated to ..read more

The IRS announced on Nov 6, 2019 that employees in 401(k) plans will be able to contribute up to $19,500 in 2020 up from $19,000 in 2019. The catch-up contribution limit for employees aged 50 and over who participate in these plans will also increase by $500 to $6,500. To summarize here is how the 401(k) plan limits will change in 2020: The 401(k) contribution limit will increase to $19,500. The 401(k) catch-up contribution limit increase by $500 to $6,500 for those age 50 and above. The limit for employer and employee contributions will be $57,000. The 401(k) compensation limit will climb to ..read more

Health Savings Accounts (HSAs) were created in 2003 so that individuals covered by high-deductible health plans could receive tax-preferred treatment of money saved for medical expenses. Generally, an adult who is covered by a high-deductible health plan (and has no other first-dollar coverage) may establish an HSA. HSAs represent a retirement savings vehicle that in some aspects is even better than an IRA or a 401K account. I would even go so far as to say that one should maximize HSA contributions before IRA and or 401K (in case of no company match). As part of Inflation Adjustment the IRS r ..read more