Posts by Lena Borrelli
Certificate of Deposits
Brokered CD vs. Bank CD: Which Should You Choose?
A bank CD is issued directly by a bank and pays a fixed rate if you hold it to maturity. A brokered CD, on the other hand, is purchased through a brokerage and often offers access to higher rates and a wider range of issuers. Brokered CDs can be sold before maturity, while bank CDs… read more…
Real Estate Investing
FHA vs. USDA Loan: Requirements and Costs
Buying a home can feel overwhelming, especially when you’re trying to decide which mortgage program is right for you. When exploring government-backed loans, FHA and USDA options both promise affordable paths to homeownership. However, each serves different financial needs and lifestyles. Understanding how each loan works, from eligibility and down payments to insurance costs, can… read more…
Tax Planning
Dependent Care FSA: High Income Earners
For high-income earners, balancing a demanding career with the rising costs of childcare can quickly become a financial juggling act. Even families earning six figures can find that daycare, nannies or after-school programs absorb a surprising portion of their budget. That’s where a Dependent Care Flexible Spending Account (FSA) comes in. As a tax-advantaged tool,… read more…
Retirement Planning
Traditional IRA vs. Rollover IRA: Key Differences and Examples
If you have ever changed jobs or you have already started saving for retirement, you have likely encountered both Traditional IRAs and Rollover IRAs. However, these two similar-sounding accounts can play very different roles in your financial future. Knowing how each works can mean the difference between maximizing your tax advantages and making costly mistakes.… read more…
Mortgage
VA Loan vs. Conventional Loan: Pros and Cons for Homebuyers
Buying a home is one of the biggest financial decisions you will ever make, and choosing the right type of mortgage can make all the difference. For many buyers, the choice often comes down to a VA loan or a conventional loan, and each has its advantages, requirements and long-term implications to consider. Whether you… read more…
Tax Planning
Tax Credits for Students: Tips and Strategies
Paying for college can feel overwhelming, but smart tax planning can make a real difference. The IRS offers several education tax incentives to help students and families cut costs, lower their tax bill and even get a refund. Whether you are an undergraduate or graduate student or a parent supporting a student, understanding how these… read more…
RMDs
Does a Roth Conversion Count as an RMD? Retirement Tax Guide
When it comes to managing retirement income, taxes can be one of your biggest – and most overlooked – expenses. Many retirees wonder whether converting their savings to a Roth IRA can help satisfy their required minimum distributions (RMDs) and reduce their tax burden. It is a smart question, but it is also a common… read more…
Pensions & Other Retirement Accounts
Do Pensions Run Out of Money? Rules and Risks
For generations, pensions have been regarded as the gold standard of retirement security, offering guaranteed income you can count on for life. However, funding gaps, longer life expectancies and economic volatility have put pressure on many pension plans. It begs the question: do pensions run out of money? Understanding the rules, risks and options for… read more…
Pensions & Other Retirement Accounts
Can I Withdraw From My 457 While Still Employed?
Planning for retirement often comes with questions about when and how you can tap into your savings. One such question many people ask is, “Can I withdraw from my 457 while still employed?” Unlike other retirement accounts, 457 plans (also known as 457(b) plans) have their specific rules and exceptions that can make them both… read more…
Rollovers & Conversions
Can You Convert an Inherited IRA to a Roth? Rules and Taxes
Roth IRAs are known for tax-free growth and distributions in retirement. However, inherited IRAs come with their own rules and limitations that can complicate the picture. Whether you can convert an inherited IRA to a Roth IRA depends on both your status and current IRS guidelines. By understanding IRS law, you can make strategic investment… read more…
How to Invest
Scalping vs. Day Trading: Strategies, Risks and Benefits
Although sometimes confused as the same, there are different strategies, risks and benefits involved with scalping vs. day trading. Active traders often look for opportunities to profit from short-term price movements, but not all strategies are created equal. These two approaches, scalping and day trading, share the goal of capitalizing on intraday volatility. However, they… read more…
Growth Investing
Growth ETF vs. Value ETF: Which Should You Invest In?
Choosing between a growth ETF vs. value ETF depends on several factors, including your investment style, time horizon and risk tolerance. However, there are some key differences. Growth ETFs typically focus on companies expected to expand faster than the broader market. This often includes sectors like technology and healthcare, although these are infamously volatile. Value… read more…
Retirement Planning
Deferred Compensation Plan vs. 401(k): Key Differences
Planning for retirement can feel overwhelming, but fortunately, there are several savings tools available to help take the sting out of the process. By utilizing these tools, you can create a financial strategy that helps you save for retirement. Two common options are deferred compensation plans and 401(k)s. While both can help you defer taxes… read more…
Investing for Beginners
Treasury Note vs. Treasury Bond: Key Differences and When to Buy
When building a secure investment portfolio, U.S. Treasury securities often top the list for both new and seasoned investors. Among the most popular options are Treasury notes and Treasury bonds, two government-backed instruments offering safe and predictable returns. While they may seem similar at first glance, understanding the key differences between Treasury notes vs. Treasury… read more…
RMDs
How to Calculate the RMD for an Inherited IRA
Inheriting an individual retirement account (IRA) comes with specific tax obligations that can feel overwhelming during an already difficult time. One of the most important requirements to understand is the required minimum distribution (RMD) for an inherited IRA. This determines how much money you must withdraw each year. Unlike traditional IRAs, where distributions typically begin… read more…
401(k)
Does Contributing to a 401(k) Reduce Taxable Income?
If you have a retirement account, you are probably wondering, does a 401(k) reduce taxable income? The short answer is yes, contributing to a traditional 401(k) plan does indeed reduce your taxable income for the year of contribution. When you make contributions with pre-tax dollars, the money goes into your retirement account before calculating income… read more…
401(k)
How Much Should I Have in My 401(k) at Age 60?
By age 60, retirement is no longer a distant goal, it is just around the corner. For many, it begs the question: how much should I have in my 401(k) at age 60? Many financial experts recommend having saved eight times your annual salary by this point to help support a comfortable retirement. At this… read more…
Other
Do IRAs Go Through Probate? Estate Planning Rules
Individual retirement accounts (IRAs) are popular retirement savings vehicles that offer tax advantages, but do IRAs go through probate? Unlike many other assets that you own, IRAs typically bypass the probate process entirely—provided you properly designate your beneficiaries. This distinction can save your loved ones significant time, money and stress during an already difficult period.… read more…
Trusts
How to Know If You Have a Trust Fund: Tips and Steps
Discovering you might have a trust fund can be life-changing, but many potential beneficiaries remain unaware of their good fortune. If you suspect you have a trust fund waiting, there are several practical steps you can take to find out. From reviewing family documents and speaking with relatives to consulting financial institutions and legal professionals,… read more…
Trusts
What Rights Does a Trust Beneficiary Have?
When someone names you as a trust beneficiary, you receive certain legal protections and privileges. However, understanding a trust beneficiary’s exact rights can be confusing. Trusts are powerful estate planning tools allowing for the management and distribution of assets according to specific instructions. The level of control and information you receive depends on several factors.… read more…
Trusts
5 Reasons Why You May Want to Set Up a Trust Fund
Contrary to popular belief, trust funds are not just for the ultra-wealthy. They are versatile financial instruments that can help individuals across various income levels achieve specific estate planning goals. So, why set up a trust fund? It can provide a number of benefits, such as minimizing estate taxes, protecting assets from creditors, providing for… read more…
Financial Advisor
Is a Chartered Retirement Planning Counselor (CRPC) a Fiduciary?
When planning for retirement, it is crucial to understand the role and responsibilities of your financial advisor. But is a CRPC a fiduciary? While CRPCs train in retirement planning through the College for Financial Planning, this credential does not inherently require them to act as fiduciaries. Whether a CRPC functions as a fiduciary depends on… read more…
Personal Finance
25 Ways to Make Extra Income From Home in 2025
Looking for ways to boost your bank account without leaving the comfort of your home? The opportunities for remote revenue streams have never been more diverse or accessible. Whether you want to pay off debt, save for a major purchase or simply gain more financial freedom, working from home offers convenience and potential that traditional… read more…
Taxes
10 Examples of Taxable and Nontaxable Income
Understanding what counts as taxable income and what does not can significantly impact your financial planning and tax obligations. The IRS has specific guidelines about examples of taxable and nontaxable income that every taxpayer should know. While most money you earn is subject to taxation — like wages, salaries, bonuses and business profits — there… read more…
RMDs
When Does the RMD Age Go Up to 75 Years Old?
For retirement savers preparing for required minimum distributions (RMDs), recent legislation has brought significant changes to the timeline. The SECURE Act of 2019 initially raised the RMD age from 70 ½ to 72. This gave retirees more time before mandatory withdrawals begin. Then, the SECURE 2.0 Act of 2022 introduced further adjustments. It increased the… read more…