Posts by SmartAsset Team
Retirement
How to Avoid the Early Withdrawal Penalty on Your 401(k)
The IRS has strict rules regarding when you can withdraw money from a tax-deferred retirement account like a 401(k). Doing so before age 59 ½ can trigger an early withdrawal penalty on top of income taxes. However, the IRS has designated specific situations in which a 401(k) account owner can qualify for penalty-free early withdrawals,… read more…
Advisor Resources
What Is a Certified Personal Finance Counselor (CPFC)?
Certified personal finance counselors (CFPCs) are professionals trained to assist individuals in making informed money decisions, aiming to foster financial stability and growth. Advisors and other professionals working in the finance industry may pursue this credential to offer advice on budgeting, debt management, saving and basic investment concepts. Here’s a closer look at the CPFC… read more…
Retirement
6 Steps to Consider Immediately If You’re 55 With No Retirement Savings
When you find yourself later in life without any retirement savings, you can feel like you’ve made a mistake or that the amount you need to make up is too great to make a dent. However, there is plenty you can do to help your finances get back on track and help you maximize your… read more…
Financial Advisor
How to Achieve Retirement Security With a Financial Plan
Personal finance can be daunting, but with a well-crafted financial plan, you could map a course to help reach your financial goals with confidence. A financial plan is a comprehensive strategy that is tailored to your unique financial situation and encompasses budgeting, savings, investments, insurance and estate planning. Whether you’re preparing for major milestones or… read more…
Investing
5 Ways Monopolistic Competition Can Impact Your Investments
Monopolistic competition is a market structure that is characterized by many firms selling differentiated products. These can be similar but not identical, allowing each firm to have some degree of market power. By understanding how product differentiation, pricing strategies and marketing efficiency work, investors can gain insight into the risks and rewards associated with different… read more…
Checking Account
Pros and Cons of a Money Market Account
Money market accounts (MMAs) offer a unique blend of features that may appeal to savers looking for higher interest rates, liquidity and security. However, understanding the full spectrum of advantages and disadvantages associated with these accounts is important when evaluating different savings vehicles. Whether you’re considering a money market account for its higher interest rates,… read more…
Checking Account
3 Benefits of a Regional Bank vs. National Bank
When considering where to keep your financial assets, the choice between regional and national banks is a significant one. Regional banks are typically smaller in scale, offer a more localized banking experience and may even charge lower fees. They are often deeply embedded within the communities they serve, which can translate into a more personalized… read more…
Retirement
8 Ways to Protect Your Retirement Income
You’ll spend decades – if not your entire career – saving for retirement. But saving enough money is only a piece of the retirement planning puzzle. Protecting your retirement income against the test of time and an ever-changing economic landscape is equally critical. Whether it’s optimizing annuitized streams of income like Social Security, planning for… read more…
Mortgage
2024 Eligibility Requirements for VA Loans
Veterans Affairs (VA) loans provide a pathway for veterans, active-duty service members and reservists to achieve homeownership with favorable terms. VA loans are known for their no down payment requirement and no private mortgage insurance, making them an attractive option for those who have served or continue to serve in the military. However, prospective applicants… read more…
Mortgage
Comprehensive Guide to VA Loans
The Veterans Affairs loan program, established to honor American service members and veterans, provides a range of mortgage options designed to make this cornerstone of the American dream more attainable. Whether it’s buying a new home, refinancing an existing mortgage or making home improvements, the VA loan program offers current and former members of the… read more…
Mortgage
What Are the VA Loan Limits for 2024?
VA loan limits have changed over time. The 2024 updates reflect the current economic climate and housing market trends, which aim to ensure that the program remains relevant and beneficial. Whether you’re a veteran considering a home in a standard-cost area or a high-cost county, the VA loan limits could influence your borrowing capacity and… read more…
Checking Account
5 Benefits of Using Prepaid Cards
Prepaid cards are popular financial tools that can offer a unique blend of convenience, control and security. Whether you’re looking to stick to a budget, provide a spending solution for a family member or find an alternative to traditional banking, prepaid cards could be the answer. A financial advisor can help you evaluate and select… read more…
Checking Account
How to Join a Credit Union in the U.S.
A credit union is a member-owned financial cooperative that provides banking services, such as savings accounts, loans, and other financial products, to its members. These members often share a common characteristic like employment, location, or membership in a specific organization. Whether you’re considering a switch from a conventional bank or simply exploring your financial options,… read more…
Estate Planning
4 Types of Assets That Are Exempt From Probate in Florida
The probate process involves the court-supervised distribution of assets, which can be time-consuming and costly, not to mention the emotional toll it can take on a family. However, Florida law provides certain exemptions that allow specific assets to bypass this process, offering a semblance of relief and financial stability to the bereaved. From homestead property… read more…
Estate Planning
How a Transfer on Death Deed Works in Florida
A transfer on death deed (TODD) offers a streamlined solution for property owners looking to bypass the often lengthy and costly probate process in Florida. This legal instrument allows individuals to designate a beneficiary to inherit their property directly upon their passing, ensuring a smooth transition of ownership. With the ability to retain control over… read more…
Estate Planning
How a Life Estate Deed Works in Florida
When you’re thinking about what will happen to your assets after you die, it’s important to understand how you can avoid probate with some of your most valuable, such as real estate. A life estate deed is a legal document that allows you to pass on your property to a designated beneficiary while retaining the… read more…
Estate Planning
How to Get a Financial Power of Attorney in Pennsylvania
In Pennsylvania, a power of attorney (POA) is a legal document that can empower a designated agent to act on your behalf should such situations arise. With various types of POAs available, tailored to address specific needs from healthcare to financial management, understanding the legal requirements of these documents is essential for effective personal planning.… read more…
Estate Planning
How to Avoid Probate in Oklahoma
The probate process in Oklahoma involves a series of court-supervised steps to ensure the decedent’s assets are distributed fairly, whether in accordance with a will or state intestacy laws. From filing a petition to distributing remaining assets, each stage is plays an important part in honoring the final wishes of the deceased. Yet, the time,… read more…
Estate Planning
What Is a NING Trust?
The Nevada incomplete gift non-grantor (NING) trust is a tool designed to provide affluent individuals with a legal avenue for asset protection and tax optimization. These specialized trusts leverage Nevada’s advantageous tax codes and trust-friendly laws, enabling residents of high-income-tax states to shield certain assets from those taxes. If you need help protecting your assets… read more…
Advisor Resources
How Financial Advisors Can Create an Ideal Client Avatar
An ideal client avatar (ICA) is more than just a marketing buzzword – it’s a strategic blueprint that guides financial advisors in customizing their services and marketing efforts to meet the specific needs of their most desirable clients. By crafting a detailed profile that encompasses the demographics, psychographics, financial goals and challenges of their ideal… read more…
Retirement
6 Questions to Ask Before Buying an Annuity
Annuities can offer financial stability through a steady stream of income, but they can also impact your long-term financial health. Therefore, you should consider the fees that can erode your investment to the payout rates and the trustworthiness of the issuing company, which can all play a pivotal role in determining the suitability of an… read more…
Advisor Resources
6 SEO Strategies for Financial Planners That Work
Effective SEO strategies are instrumental for financial planners who wish to capture the attention of high-quality leads actively seeking their expertise. The process starts with keyword optimization which involves meticulous research and integration of terms and phrases that potential clients are likely to use when searching for financial advice. This ensures that a financial planner’s… read more…
Insurance
Can I Contribute to an HSA Without an HDHP?
HSAs are not just a means to set aside funds for medical expenses. They’re a strategic financial tool that provides tax advantages and long-term savings potential. These accounts allow you to contribute pre-tax dollars, grow your savings tax-free and make tax-exempt withdrawals for qualified medical expenses. Understanding the rules that govern HSAs can help you… read more…
Estate Planning
4 Types of Power of Attorney Available in Pennsylvania
Power of attorney (POA) offer a versatile legal framework for ensuring that your decisions and assets are handled according to your wishes, even when you’re not able to oversee them directly. It’s vitally important to understand the different types of POAs available if you’re in need of this type of authority. In the state of… read more…
Investing
What Is the Opportunity Cost of an Investment?
Opportunity cost quantifies the potential benefits that are lost when one alternative is chosen over another. Whether you’re an individual deciding whether to invest in bonds over stocks or a business leader strategizing for growth, the principles of opportunity cost can help you make more informed investment choices. A financial advisor can also help you… read more…