- How a TSP Hardship Withdrawal Works
A thrift savings plan (TSP) hardship withdrawal allows federal employees and members of the uniformed services to access their retirement funds in times of severe financial need. To qualify, individuals must demonstrate significant and immediate financial hardship, such as medical expenses or losses due to a natural disaster. Unlike loans, these withdrawals cannot be repaid,… read more…
- What Is Values-Based Financial Planning?
Values-based financial planning is a personalized approach that aligns your financial decisions with your core beliefs and principles. Unlike traditional financial planning, which primarily focuses on numerical goals and wealth accumulation, values-based planning emphasizes the importance of integrating your personal values into your financial strategies. This method not only helps in achieving financial goals but… read more…
- Wealth Distribution in the U.S. By Generation
Over the past 30 years, wealth in the United States has become increasingly the province of older generations. Approximately 73% of all wealth in the U.S. is currently owned by Americans over the age of 55, with most concentrated among the Baby Boomer generation (Americans born between 1946 and 1964). This has reshaped spending power,… read more…
- How Financial Infidelity Can Affect Your Financial Plans
Financial infidelity, the act of hiding transactions or assets from a partner, can severely disrupt even the most well-constructed financial plans. Trust, a cornerstone of any relationship, becomes compromised, leading to potential long-term financial instability. Secret spending, undisclosed debts or hidden accounts can derail joint financial goals, resulting in missed savings targets, increased financial stress… read more…
- 4 Proven Ways to Build Wealth
Building wealth requires a strategic approach that combines earning, saving and investing wisely. Creating a long-term financial plan and learning what investments to take advantage of are key to long-term wealth-building. This approach is grounded in consistency and informed decision-making. For help with a long-term plan or the management of your investment portfolio, consider working… read more…
- How to Build Wealth in Your 20s
Building wealth in your 20s sets a strong financial foundation for the future. Early investment allows more time for your money to grow through compound interest. Prioritizing savings and making wise investment choices are key steps. Another important step includes budgeting. You can enlist the help of a financial advisor to create a long-term financial… read more…
- What Are the Tax Benefits of 529 Plans?
When planning for your child’s future education, a 529 plan offers several tax advantages. Contributions to a 529 plan grow tax-free, meaning any investment earnings are not subject to federal tax as long as they are used for qualified education expenses. Additionally, many states offer tax deductions or credits for contributions to a 529 plan,… read more…
- 5 Wealth Management Strategies to Consider
Effective wealth management strategies can significantly enhance financial well-being and maintain long-term security. By incorporating diversified investment portfolios, tax-efficient planning, strategic gifting, estate planning and risk management, individuals can tailor their approach to their unique financial goals. Exploring various wealth management strategies can provide the necessary tools to build and preserve wealth, paving the way… read more…
- Wealth Management Advice You Might Want to Consider
Wealth management is a holistic approach to handling financial affairs and creating a strategic plan for managing an individual’s assets. It encompasses various financial services, such as retirement and investment management, estate planning, and more. While often associated with affluent clients, wealth management can benefit a broad range of individuals. Professional wealth management advice from… read more…
- What Is Intergenerational Wealth Planning?
Intergenerational wealth planning is the process of preserving and transferring wealth across multiple generations. This can help you maintain financial stability and preserve a legacy for future family members. This comprehensive approach often includes managing investments, estates and inheritance taxes. By prioritizing intergenerational wealth planning, families can create long-lasting financial security and uphold their values… read more…
- What Is Wealth Planning and Why Is It Important?
Wealth planning is a comprehensive approach to managing financial resources that focuses on the accumulation, preservation and the transfer of wealth. This process involves creating a strategic plan that encompasses various aspects of personal finance, including investment management, tax planning, estate planning and retirement planning. Engaging in wealth planning can provide a structured path to… read more…
- Does a 529 Plan Earn Interest?
A 529 plan, a popular choice for college savings, typically does not directly earn interest in the traditional sense. Instead, the growth of a 529 plan depends on the investment options chosen within the plan, such as mutual funds, which can appreciate over time. While the plan itself doesn’t accrue interest like a savings account,… read more…
- What Are Tax-Free Distributions From 529 Plans?
A 529 plan is a tax-advantaged savings account designed to help families save for future education costs. Withdrawing money, also called a distribution, from a 529 plan for qualified education expenses, such as tuition, fees, books, and room and board, is tax-free. Neither the federal government, nor most states, will tax the earnings on these withdrawals.… read more…
- Financial Planning vs. Retirement Planning
Financial planning and retirement planning are both important parts of managing your financial health. Financial planning is a broad approach encompassing budgeting, saving, investing, tax planning and risk management to achieve various life goals. Retirement planning specifically focuses on preparing financially for life after work, with the aim of securing a steady income and financial… read more…
- Who Maintains Control Over a 529 Plan’s Assets?
A 529 plan is a popular savings vehicle for college expenses, but you may wonder who maintains control over the 529 plan and its assets. Control typically resides with the account owner, often a parent or grandparent, who retains the authority to make investment decisions and withdrawals. The beneficiary, usually the student, has no direct… read more…
- 10 Free Tools to Help Build Your Financial Plan
Taking control of your finances can pay big dividends, but it doesn’t have to cost a lot. There are a range of free personal financial planning tools that can help you create a budget, track expenses, manage investments, set financial goals and monitor your progress towards those goals. From AI-powered chatbots to old-fashioned printed worksheets,… read more…
- How to Use the Double Consolidation Loophole for Student Loans
The double consolidation loophole is a way for parent borrowers to make their loans eligible for the improved repayment terms available under the Biden administration’s SAVE program. This can lower monthly payments for a qualifying household significantly, as the SAVE program offers more generous income-based repayment options than Parent PLUS Loans. However, the window of opportunity… read more…
- How Is Alimony Calculated in New York?
Alimony is a payment from one divorced former spouse to the other that’s intended to provide the lower-earning spouse with sufficient income to meet their needs. Laws in every state provide for alimony, also known as spousal support or spousal maintenance, but they use a variety of ways to set the amount of money to… read more…
- How Is Alimony Calculated in California (CA)?
This alimony system was built around the idea that the job market significantly disfavored women, so a divorced wife could rarely support herself. As a result, alimony often required a significant division of future income for either life or until the recipient remarried. Most states have changed this system in whole or in part. Alimony, today,… read more…
- 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…
- I Have $900k in a Roth IRA and Would Receive $2,200 Monthly From Social Security. Can I Retire at 66?
Imagine that you have $900,000 in a Roth IRA and collect another $2,200 per month in Social Security. Can you afford to retire at age 66? A good way to answer this question is to start with your budget. What do you expect to spend on essentials, like housing and fixed monthly expenses, and what… read more…
- Income-Based Repayment (IBR) vs. SAVE for Student Loans
If you owe money on a federal student loan, you may be able to qualify for a repayment plan that will lower your payments and, ultimately, provide for partial forgiveness of the debt. Income-Based Repayment (IBR) and Saving on a Valuable Education (SAVE) are two popular repayment plans that include forgiveness. The two plans are… read more…
- How Is Debt Divided During a Divorce?
During a divorce, debt is handled the same as assets. This means, primarily, that courts will try to follow two rules. First, courts will distribute debt based on its marital and pre-marital status. Debt that someone held before the marriage will, in general, remain entirely with that individual. Debt the couple accrued during the marriage… read more…
- How Permanent Alimony Works During Retirement in Florida
In July, 2023, Florida eliminated permanent alimony as a category from its divorce statute. Going forward, alimony payments in Florida will be based on set terms. Payments will expire either after a specific amount of time has passed or once specific conditions have been met. This means that spouses can now plan for an end to… read more…
- How Child Support Is Calculated in California
Like all states, California uses a formula to calculate the exact amount of child support that a parent owes. This formula result is then applied and modified by a family court judge, who produces a final child support order. Family courts have broad discretion to modify child support based on their impression of the child’s… read more…