Posts by SmartAsset Team
Roth & Traditional IRAs
Earn Over $150k? The IRS Just Changed Where Your 401(k) Catch-Up Money Has to Go
For high earners over age 50, a retirement-saving strategy that was available for years may now be off the table. Depending on your income, you may have to make catch-up contributions to a Roth account instead of a traditional 401(k). And this change could affect your tax bill today and your retirement savings later. The… read more…
How to Invest
What Is a Prediction Market: Uses and Examples for Investors
A prediction market is a platform where participants buy and sell contracts tied to the outcome of future events. Prices on these contracts reflect the market’s collective estimate of how likely an event is to occur. In a winner-take-all contract, a share pays out $1 if the event happens and $0 if it does not.… read more…
How to Invest
Gold Hedge Against Inflation: Pros, Cons and Alternatives
When inflation rises, the value of your money falls. Inflation concerns prompt many investors to look for assets that can help preserve purchasing power. They often choose gold as one of their first investments thanks to its long-standing reputation. Gold has been a store of value during periods of economic uncertainty for hundreds of years.… read more…
Real Estate
Publicly Traded REITs: How They Work, Taxes and Examples
A publicly traded real estate investment trust (REIT) is a company that owns income-producing real estate, trades on a major stock exchange and is required by law to distribute at least 90% of its taxable income to shareholders as dividends. Unlike private REITs or non-traded REITs, publicly traded REITs offer daily liquidity, price transparency and… read more…
Tax Planning
Tax Professional for LLC: Services and Examples
Running an LLC offers flexibility and liability protection. But alongside those benefits comes a layer of complexity that can catch even seasoned business owners off guard. From choosing a tax classification to tracking deductions to navigating filing deadlines, there is a lot to keep track of. And the wrong move can cost you thousands of… read more…
Tax Planning
Foreign LLC: Uses, Requirements and Examples
Expanding a business into another state can create new opportunities, but it may also come with legal and administrative requirements that many business owners overlook. One of the most important is foreign LLC registration, which allows a company formed in one state to legally operate in another. Despite the name, a foreign LLC has nothing… read more…
Retirement Planning
Thrift Savings Plan (TSP) Matching: Rules, Tiers and Examples
The Thrift Savings Plan (TSP) is the federal government’s defined contribution retirement plan. It is available to federal civilian employees under the Federal Employees Retirement System (FERS). It also includes the Blended Retirement System (BRS), which covers members of the uniformed services. For its participants, the government’s matching contributions represent a significant addition to retirement… read more…
Retirement Planning
I’m 64 With $720k in My 401(k) and $1,900 a Month From Social Security. What Can I Actually Spend?
What can I actually spend each month without running out of money? This is one of the most important questions that retirees ask. And one of the hardest to answer. Many people rely on rough estimates, but guessing wrong early in retirement can cost you big for decades. What $720k and $1,900 Per Month Really… read more…
How to Invest
SpaceX IPO: Valuation, Timeline and Investment Options
For more than two decades, SpaceX built rockets, launched satellites and rewired the economics of space travel entirely outside public markets. That changed on June 12, 2026, when the company completed the largest IPO in history, opening ownership to everyday investors for the first time. Here’s a closer look at SpaceX’s valuation, business model, risks… read more…
Roth & Traditional IRAs
A Couple Can Convert $133,000 a Year to a Roth at About 9%. Here’s How
Many retirees overlook one of the best tax-planning windows in their financial lives: the years between retirement and required minimum distributions (RMDs). During this period, you may be able to convert traditional IRA assets to a Roth at relatively low tax rates before RMDs increase your taxable income. Here’s why timing matters. A financial advisor… read more…
How to Invest
OpenAI Stock IPO: Expected Valuation, Timeline and Investment Options
OpenAI, the company behind ChatGPT, confidentially filed an S-1 registration statement with the SEC on May 22, 2026. This formally begins its process of going public. CNBC reported that Goldman Sachs and Morgan Stanley are leading the deal, with the company targeting a public debut “as soon as the fourth quarter” of 2026.1 OpenAI said… read more…
How to Invest
Anthropic IPO: Expected Valuation, Timeline and Investment Options
Anthropic, the AI company behind the Claude family of models, confidentially submitted a draft S-1 registration statement with the SEC on June 1, 2026, giving the company the option to pursue an initial public offering after SEC review.1 The filing came after Anthropic announced a $65 billion Series H funding round at a $965 billion… read more…
Real Estate
Diversifying Stock Into Real Estate: Opportunities and Risks
Stocks have long been the go-to investment vehicle for building long-term wealth, yet they’re just one part of a diversified portfolio. Real estate represents an entirely different asset class that responds to different market forces and offers unique benefits, such as consistent rental income, tangible value and inflation protection. Yet jumping into real estate investment… read more…
Inheritance
Date of Death Valuation: Calculation and Taxes for Heirs
When someone inherits investments, real estate or other valuable assets, they may be familiar with the asset’s date of death value. This valuation determines not only what an inherited asset is worth for estate purposes, but also how much tax an heir may eventually owe if they decide to sell it. Ask a financial advisor… read more…
Roth & Traditional IRAs
Opening an IRA? The Costly Mistake That Leaves Your Money Earning Nothing
Gen Z is the youngest generation of workers and they are now out-saving every older age group. They started earlier than Boomers, Gen X and even Millennials. Many are still early in their careers and underpaid, yet they have leaned into one advantage that older savers often overlook. If you are not using it too,… read more…
Social Security
The $45,000 Line: This New Plan Protects Lower Earners But Caps COLA for Everyone Above It
Every year, your Social Security check gets a small raise to keep pace with inflation. And right now, every retiree gets the same percentage, top to bottom. But a recent proposal could change that for some people. If your annual benefit sits above a certain line, your yearly increase could get cut. The question worth… read more…
Portfolio Management
Discount for Lack of Marketability: Uses and Calculation
Not all assets can be sold quickly or easily. A minority stake in a family business, restricted stock or an ownership interest in a private company may have significant value on paper but be difficult to convert into cash. That’s where a discount for lack of marketability (DLOM) comes into play. By accounting for the… read more…
Inheritance
Alternate Valuation Date: Estate Planning Uses and Examples
Imagine inheriting your parent’s estate, only to watch the stock market tumble in the weeks that follow. Then you learn the IRS still expects estate taxes from the higher values on the day they passed away. It’s a frustrating scenario, but the tax code offers a potential remedy in the alternate valuation date. This allows… read more…
Rollovers & Conversions
How to Do a Backdoor Roth Conversion: Caps, Steps and Examples
A backdoor Roth IRA allows high-income earners to move money into a Roth IRA. It is a simple two-step strategy that works because, while the IRS sets income limits on direct Roth IRA contributions, it sets no income limits on Roth IRA conversions. Anyone whose modified adjusted gross income (MAGI) is too high can still… read more…
Investment Taxes
Tax-Loss Harvesting: Investment Benefits and Strategy Tips
Tax-loss harvesting involves two steps. First, you sell investments at a loss to offset capital gains or a portion of ordinary income. Then, you reinvest the proceeds in a similar but not identical position to keep your portfolio working. The reinvestment step distinguishes it from simply selling at a loss. It preserves your long-term investment… read more…
Financial Planning
Five C’s of Credit: Definitions, Uses and How to Improve Them
Before approving a loan or line of credit, lenders use a framework to evaluate a borrower’s creditworthiness. The five C’s of credit (character, capacity, capital, collateral and conditions) help lenders gauge how likely a borrower is to repay what they owe. Once you know how to measure each factor you can improve your approval odds.… read more…
Financial Planning
Debt Management Plan: Pros, Cons and Alternatives
Rising credit card balances and high interest rates can make it difficult to keep up with monthly payments, especially when juggling multiple debts simultaneously. A debt management plan (DMP) offers a potential solution by consolidating payments into a structured repayment program that reduces interest charges and simplifies budgeting. Understanding how debt management plans work, how… read more…
Financial Planning
Ancillary Benefits: Examples and Individual Alternatives
Health insurance and retirement plans are often the first benefits employees consider. However, many workplace perks extend far beyond basic coverage. Ancillary benefits like dental insurance, disability coverage, life insurance and wellness programs can provide valuable perks. They help protect your finances, reduce out-of-pocket expenses, and provide added peace of mind during unexpected situations. A… read more…
Financial Planning
Joint Bank Accounts: Pros and Cons for Unmarried Couples
Sharing finances can be a major step for unmarried couples, especially when it comes to opening a joint bank account. While a shared account can simplify budgeting, it can also create financial and legal complications. Couples should understand the benefits, risks, and alternatives to joint accounts. Then they can decide how to manage money together… read more…
Investing for Beginners
High Net Worth Investment Management: Services and Examples
Managing significant wealth involves more than picking the right investments. High-net-worth investors often deal with tax strategies across multiple accounts, estate planning, concentrated stock positions and access to private markets, all at the same time. High-net-worth investment management brings these pieces together through customized portfolios, comprehensive planning and a team-based approach built around each client’s… read more…