Entries by Pat

What’s the Difference Between a Coverdell and a 529?

You’ve made the decision to open a college savings account for your child, grandchild, or other loved one. The next question is, what kind of college savings account should I choose?

If you already started looking, you may have encountered both 529 and Coverdell savings accounts. Both offer tax advantages that can help you put more money towards your child’s education, but they do have important differences. What are they, and how do you choose?

Don’t Forget to Plan for Taxes in Your Retirement Budget

With so many variables to think about as a new retiree, it can be easy to overlook one critical factor in your retirement income: taxes.
While tax planning, like financial planning, is highly personal, there are a few things everyone should know about retirement taxes: specifically, the types of taxable income you might be getting in retirement, how to approach calculating your tax rate, and how to manage account distributions.
Read on to learn more.

The Secret to Tax Planning for Retirement

We’ll admit it: this one’s an open secret.

“Spend less” is the advice you hear time and again in the financial press, and of course it makes sense: the less you need in retirement, the less income you draw, and thus the less tax you pay.

But it’s not the whole story.

After all, not all expenses are equal. No number of vetoed trips to your favorite coffee shop is going to make a significant dent in your tax bill (unless you’re truly a serious coffee drinker).

The secret is a matter of where you reduce your spending — and how.

Here’s what you can do.

5 Ways to Minimize Taxes in Retirement

It can take a lot of legwork to ensure that you’re starting retirement off on the right foot.

A solid understanding of your tax situation — and how to manage it — is a key part of doing so. With these tips, you can help make your golden years more prosperous.

Some of the tips might seem small, but even the little things help add up to big results over time, so don’t forget to take the next step — implement these retirement strategies today!

Avoid These 3 Costly Retirement Tax Penalties

Retirement might seem like it should be all golf carts and leisurely lunches, but making the transition work for your finances can be a challenge. Unfortunately, many retirees find themselves paying taxes and penalties on decisions they didn’t think were all that important — until it was too late.

Let’s take a look at 3 common tax mistakes and how you can make sure to avoid them.

What is a Roth IRA and How Can I Use It?

You’ve probably come across the term “Roth IRA” before, but what does it mean — and how can you use one? These retirement savings vehicles can be a powerful part of retirement planning if used in the right situation, but they aren’t foolproof. Here’s what you need to know about Roth IRAs before you invest.

Don’t Forget This Secret Ingredient in Your Budget

Are you pressed for time? How about money?

If you’re like most of us, you probably feel the strain or one or the other, if not both. In this day and age, it just never seems like there’s enough time in the day or enough money in the bank.

But did you know that your feelings of scarcity might be harming your ability to make good financial decisions?
Read on to learn about the intellectual effects of the everyday stress of scarcity — and how to combat it with one critical line item in your budget.

5 Ways to Measure Your Financial Resilience

When putting together your personal financial plan, you’ll likely spend a lot of time thinking about your goals, risks, dreams, and fears. It’s a practical exercise, but it’s driven by much more than dollars and cents.

In doing all this thinking, one area that’s easy to overlook is resilience. How much can you withstand in your current financial situation?

Are you ready to reveal your own resilience? Read these 5 ways …

How to Start Building Diversified Income Streams for Retirement

Retirement income planning can feel overwhelming. You might not feel completely confident about how much income you can count on, where it will be coming from, and how to manage the risks you face. Building predictability and diversification into your retirement income plan can help. Here are a few income sources to think about as you get started.