If you’ve got an IRA that contains only pre-tax money and you take a distribution from that IRA, the taxation is pretty straightforward: the custodian reports the distribution to the IRS, and you pay ordinary income taxes on the amount you took out. If you’re under age 59 ½, then you’ll also owe an early… View Article
The idea behind a Target Date Fund would seem logical – a kind of “set and forget it” investment that (presumably) gets safer as you age, giving you less exposure to stock market volatility the closer you get to retirement. But on closer examination, Target Date Funds are not the panacea they appear to be…. View Article
“Traditional” investments consist mainly of stocks, bonds, and cash. Many people get by just fine with these, and simply alter their allocation as they age or as their goals and needs change. Others, though, may want to consider investments that fall outside of the traditional group. Why? They may be looking for further portfolio diversification,… View Article
We’ve discussed in a previous video about the potential benefits of having money inside a Roth IRA: specifically, that qualified distributions from a Roth don’t count against you when calculating the taxability of your Social Security benefits. Whether it’s a Roth IRA or 401(k), the potential tax-free nature of Roth withdrawals can make them an… View Article
Hey everyone, Ara here again with our usual monthly check-in. I know we’re all bustling about with our busy lives, but I think it’s important we take a moment to connect and see how we’re all doing. I’ve recently returned from Arizona where I enjoyed a nice break from the heat, a pleasant surprise considering… View Article
Social Security is often a significant source of income for many retirees or people with disabilities. In some cases, it’s their primary source of income. But one aspect that’s often left out of the discussion is whether these benefits are taxable to the recipient. And yes, Social Security benefits are sometimes taxed. You may go… View Article
It would seem to make sense that if you’re retired, you can’t “afford” the volatility of the stock market – thus, as you age, common advice is that you should own fewer stocks in retirement. But is that good advice? The answer may depend on your withdrawal strategy. Do you need to access the money… View Article
Life is filled with risks. Some risks are controllable, others are not. It’s no different with investing. Some investing risks are out of your hands completely, while others may at least be minimized by using certain strategies, like diversification. You’ve probably heard that diversification of your investments is a good thing. And it seems to… View Article
As our parents age, it’s only natural for us to want to keep an eye on them to make sure their finances stay in good order: bills paid, taxes done correctly, RMDs taken, etc. Sometimes that’s much easier said than done. How do you make sure your parents are on top of their financial situation… View Article
Have you heard that you’re going to be taxed on the Social Security benefits you receive? Or have you heard that they’re never taxed at all? Many people have no idea what to expect. This is because sometimes a recipient’s Social Security benefits will wind up being taxed under certain conditions, while others may never… View Article