Posts by SmartAsset Team
Investing for Beginners
Ethical Investment Funds: Types, Uses and How to Choose One
Ethical investment funds incorporate values-based, environmental, social and governance criteria into their selection process alongside traditional financial analysis. These pooled investment vehicles allow investors to align their portfolios with personal or institutional values while still getting the diversification, professional management and accessibility that conventional funds provide. A financial advisor can help you identify which ethical… read more…
Retirement Planning
Micro Retirement: Definition, Benefits, Drawbacks and Taxes
A micro retirement is an intentional, extended career break taken mid-career rather than waiting until traditional retirement age. Unlike standard vacation time, these breaks typically last from a few weeks to a year, are usually unpaid, and are self-funded and self-directed rather than provided by an employer. Micro retirements can look very different: some people… read more…
Investing for Beginners
Private Market Investing: Types, Opportunities and Risks
Private markets, once reserved for large institutions and the ultra-wealthy, are becoming more accessible to individual investors. These investments offer exposure to startups, real estate projects and privately held companies with significant growth potential, but they also come with added complexity and risk that investors need to weigh carefully before committing capital. A financial advisor… read more…
Retirement Taxes
7 Tax-Efficient Retirement Withdrawal Strategies
The order in which you withdraw money from your retirement accounts could cost, or save, you tens of thousands of dollars over the course of your retirement. While most retirees follow the conventional wisdom of tapping taxable accounts first and saving Roth accounts for last, this seemingly logical approach can actually trigger a cascade of… read more…
Financial Planning
When Do You Need a Financial Planner for Early Retirement?
Most people who retire early do not regret leaving work. They regret not planning for what comes after. Decades without a paycheck means your investments, taxes and healthcare costs all have to carry weight they were never designed to carry alone. A financial planner can help you figure out if your plan actually holds up… read more…
Tax Filing
How to File Taxes for Dependents: Reasons and Steps
Claiming a dependent on your tax return can unlock meaningful savings, but the rules around who qualifies are more nuanced than many people realize. Whether you’re supporting a child, an aging parent, or another family member, understanding the IRS requirements and the benefits tied to dependency status can make a real difference in what you… read more…
Roth & Traditional IRAs
Mega Backdoor Roth Limits in 2026
For high earners who’ve already maxed out their 401(k) and Roth IRA contributions, the mega backdoor Roth offers a rare opportunity to push tens of thousands of additional dollars into tax-free retirement savings each year. In 2026, the strategy allows eligible savers to contribute up to the overall 401(k) limit of $72,000. Even higher caps… read more…
401(k)
Can You Make 401(k) Withdrawals to Pay for Long-Term Care?
Long-term care is one of the most significant expenses many retirees face. Annual costs can easily exceed $100,000 for nursing home care, with tens of thousands more for in-home or assisted living services. And for those without dedicated insurance or the savings to cover care, tapping a 401(k) may seem like the most accessible option.… read more…
Personal Finance
Can I Open a 529 Plan for Myself? Requirements and Options
529 plans are often associated with parents saving for a child’s college education, but they can also be a powerful tool for adults investing in themselves. Whether you’re planning to go back to school, earn a professional certification or prepare for a career change, opening a 529 plan for yourself could provide tax advantages while… read more…
Mortgage Basics
Can You Switch Mortgage Lenders? Reasons and Steps
Getting approved for a mortgage doesn’t mean you’re locked into the first lender you choose. Whether you discover a lower interest rate, more favorable loan terms or better customer service, switching mortgage lenders can sometimes save thousands of dollars over the life of a loan. However, changing lenders midstream in a home purchase or refinance… read more…
Investing for Beginners
Warren Buffett Retires: Key Takeaways for Investors
At age 95, Warren Buffett officially stepped down as CEO of Berkshire Hathaway on January 1, 2026. He had spent six decades transforming what was once a failing textile company. Now it is one of the largest and most influential corporations in the world. From 1964 through 2024, Berkshire delivered a compounded annual gain of… read more…
Real Estate
REITs for Beginners: Types, Requirements and How to Get Started
Real estate has long been one of the most reliable paths to building wealth. It’s also among the most difficult. Becoming a property owner requires enormous upfront capital, dealing with difficult tenants, and navigating endless maintenance headaches. Real Estate Investment Trusts, or REITs, change that equation entirely. These allow you to invest in large-scale real… read more…
Investing for Beginners
AI Uses for Investing: Analysis Types, Benefits and Risks
AI can offer advantages in data processing speed and scale, but it also comes with risks, including data quality issues, algorithmic bias and the potential for over-reliance on automated recommendations. Knowing when to use AI tools and when human judgment remains essential helps investors make better-informed decisions. If you prefer a more hands-on approach, a… read more…
Financial Planning
GI Bill for Dependents: Eligibility and Benefits
Military service demands extraordinary sacrifices from not just service members but also their entire families. Supporting someone who serves in uniform often comes with frequent moves, long separations and constant uncertainty. To recognize these sacrifices, one of the most valuable benefits the government offers is the ability for service members to share their GI Bill… read more…
Healthcare & Living
Life Insurance Over 75: Why Get It and Coverage Options
While obtaining coverage past age 75 comes with challenges, including higher premiums and more limited options, several types of policies remain available that are specifically designed for older adults. Taking advantage of these options can provide much-needed protection from financial burden for your family during an already difficult time, or simply cover the cost final… read more…
How to Invest
Price-to-Cash Flow: Investment Uses, Formula and Calculation
When it comes to evaluating stocks, savvy investors know that earnings can tell only part of the story, and sometimes a misleading one. While headlines often focus on price-to-earnings ratios and quarterly profits, the price-to-cash flow ratio focuses on the actual cash a company generates. This can help you spot undervalued gems that other investors… read more…
401(k)
401(k) Rollover to a Roth IRA: Tax Consequences
Converting your 401(k) to a Roth IRA can be one of the smartest moves for your retirement strategy. However, it comes with an immediate price tag that catches many investors off guard. A traditional 401(k) rollover to a traditional IRA is tax-free, Roth conversions are not. Moving money from a 401(k) into a Roth IRA… read more…
Tax Planning
What Is an LLC: Requirements, Pros and Cons
A limited liability company (LLC) offers liability protection and operational flexibility, but the costs, paperwork, and compliance requirements differ from state to state. Knowing what your state requires before you file can save you time and money down the line. A financial advisor can help you compare entity structures, work through the tax implications of… read more…
Retirement Planning
Trump IRA Accounts: How Much Americans Without 401(k)s Could Save
On April 30, 2026, President Trump signed an executive order aimed at closing the retirement-savings gap for those without 401(k) plans through the creation of TrumpIRA.gov. The federal platform is designed to connect uncovered workers with low-cost individual retirement accounts and pair those accounts with the Saver’s Match, created under SECURE 2.0. While the Saver’s… read more…
Home Buying
FHA Loan for Investment Property: Rules and Strategies
The dream of building wealth through real estate often collides with the harsh reality of a down payment. Investment property loans typically require 20-25% down payments, excellent credit and substantial cash reserves that put them out of reach for many aspiring investors. An FHA loan, with its appealing 3.5% down payment, may be one way… read more…
Real Estate Investing
Down Payment for Investment Property: How Much and Requirements
Buying an investment property can be a powerful way to build wealth, but the upfront costs can catch first-time investors off guard. Down payment requirements are typically higher than for a primary home, and they’re just one piece of a larger financial puzzle, including loan qualifications and ongoing expenses. In order to make smarter real… read more…
Financial Planning
Tax Benefits for Students: Rules, Credits and Deductions
The tax code includes several provisions that can reduce the cost of education, from credits that directly lower what you owe to tax-advantaged savings accounts. The American Opportunity Tax Credit, Lifetime Learning Credit, student loan interest deduction and 529 plans each come with their own eligibility rules, income limits and restrictions on how they can… read more…
401(k)
401(k) Tax Forms: Withdrawals, Rollovers and Loans
When you take money from your 401(k) through a withdrawal, rollover or loan default, the IRS requires specific reporting on your tax return. The forms you receive, what each figure represents and how to report them correctly can affect both what you owe and whether you face penalties for errors or omissions. If you want… read more…
Tax Credits & Deductions
Tax Benefits for Dependents: Rules, Credits and Deductions
Claiming dependents correctly could help reduce your tax bill. A family with two qualifying children may potentially receive several thousand dollars in combined tax credits, including the Child Tax Credit and the Child and Dependent Care Credit. Someone supporting an elderly parent may also qualify for additional benefits, including head of household filing status and… read more…
Investment Taxes
Tax Implications of Selling Stock: Rules, Rates and Strategies
The tax treatment of stock sales depends on several factors: how long you held the shares, your income level, the type of account the stock is held in and whether you are selling at a gain or a loss. Each of these variables affects how much of your proceeds you actually keep. The difference between… read more…