What is a Roth IRA? A Roth IRA is an individual retirement account in which money grows tax-free; Roth IRA withdrawals in retirement are also tax-free. Savers at least 59½ years old and who hold their accounts for at least five years can take distributions, including earnings, without paying federal taxes. In 2020, people with modified adjusted gross incomes below $139,000 (single) or $206,000 (married filing jointly) can contribute to a Roth IRA, though income phase-outs may reduce your maximum contribution. You have until July 15, 2020, to contribute for 2019. For 2019, the income lim ..read more

If you are experiencing difficulty making on-time mortgage payments due to the pandemic, forbearance may be an option. Mortgage forbearance provides temporary relief by allowing you to make lower monthly payments, or no payment at all, for a specific time period. Forbearance does not erase what you owe. You’ll still have to repay any missed or reduced payments in the future. So, if you’re able to keep up with your payments, keep making them. The types of forbearance available vary by loan type. The share of all U.S. mortgages in forbearance rose to 7.91% during the week ended May 3, 2020, fro ..read more

33% of all adults in the US have no Emergency Savings. Do you belong to that camp? Only 23% of Americans have emergency fund savings of 6 months or more. For many Americans, setting up an emergency fund is not really a top priority. With day-to-day expenses, housing payments, utilities, and occasional purchases creating a safety net tends to be last in the pecking order. The importance of an emergency fund comes to light in bad times. The current global health crisis makes one realize the importance of having an emergency fund to get through these hard times especially if you have been e ..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 a way 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 t ..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, 2019—brings the most sweeping changes to the US retirement system in over a decade. Most provisions in the law become effective January 1, 2020. 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. Many part-time workers will be eligible to participate in their employer reti ..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 retirement contributions right from the very outset of your career. This will help in building 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 retirement contributions. 1. Start As Early As You Can No one can deny the power of c ..read more

Wills and living trusts both allow you to name beneficiaries for your assets. The similarity however ends there. For example, the biggest draw to use living trusts is to avoid probate. Probate is the court system designed to wrap up a person’s affairs after their debts. Probate takes a long time, can be very expensive, and for most estates, isn’t necessary. But living trusts on the other hand are more complicated to make, and you can’t use a living trust to name an executor or guardians for your children. You need a will to do those things. The right strategy depends on individual circumstanc ..read more

The average couple retiring today at the age of 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 (male) and 89 (female). 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) you can qualify for an HSA. These plans are re-visited each year by the IRS, who determines the minimum deductible they must have and the maximum amount a pla ..read more

No one likes to think about their own death, but preparing end-of-life documents, such as a last will and testament, can give you great peace of mind now, knowing your wishes will be followed when you’re gone. Still, getting together a last will can seem like a daunting task, and maybe you aren’t exactly sure how to write a will, the most basic of estate planning documents you should have. The good news is that writing a will doesn’t have to be complicated or even take a long time. Although, in the past, most people consulted a lawyer to make a will, these d ..read more

What Is a Reverse Mortgage? A reverse mortgage is essentially a loan. It allows you to access your home equity and turn it into cash. A homeowner who is 62 or older and has considerable home equity can borrow against the value of their home and receive funds either as a lump sum payment up front, a fixed monthly payment or a line of credit. In general, homeowners who are over the age of 62 with 50-55% or more equity in their home have a good chance of qualifying for a reverse mortgage. Borrowers choose a reverse mortgage because it allows them to remain in their homes, as long as they me ..read more