Posts by SmartAsset Team
Financial Planning
Financial Planning for New Parents: Steps to Protect Your Growing Family
Having a baby changes everything about your financial life. New expenses you may have never considered hit your budget. Your insurance needs shift dramatically because someone now depends entirely on you. Taxes become more complex but potentially more favorable. And the question of what happens to your child if something happens to you becomes impossible… read more…
Financial Planning
How to Teach Kids About Money: Tips and Examples By Age
Research from Cambridge University shows that children begin forming money habits by age seven. This means the financial conversations you have with your kids now shape how they handle money for decades to come.1 These early experiences with saving, spending, and delayed gratification create patterns that persist into adulthood, influencing everything from how they budget… read more…
Social Security
Social Security Tax Thresholds for Retirement Income
Social Security benefits can be taxed at the federal level depending on your total income in retirement. Whether you owe taxes on your benefits, and how much, depends on very old data. The IRS uses income thresholds set decades ago that have never been adjusted for inflation. As incomes and cost-of-living adjustments increase, so do… read more…
Investing for Beginners
4 Bond Laddering Strategies for Steady Retirement Income
A bond ladder staggers bond maturities across multiple years, creating a schedule of predictable cash flows that does not depend on stock market returns or interest rate forecasts. There are several ways to build one, and the right approach depends on your income needs, tax situation, inflation concerns and how long you need the money… read more…
Tax Planning
Who Pays Property Taxes on a Land Contract? Rules and Examples
Land contracts can offer a path to homeownership without a traditional mortgage, but the financial responsibilities involved are not always straightforward. Property tax obligations in particular depend on how the contract is structured, and misunderstanding them can lead to serious financial consequences for either party. Here is what to know before signing. Before entering into… read more…
Investing for Beginners
Small-Cap Value vs. Growth: Strategies and Examples
Small-cap stocks fall into two broad categories: value and growth. Value stocks trade at discounted prices relative to their fundamentals, while growth stocks command premium valuations based on earnings expansion potential. Each strategy carries different risk profiles, return patterns and performance characteristics depending on market conditions. Ask a financial advisor whether small-cap value, small-cap growth,… read more…
Life Insurance
Life Insurance for Seniors Over 70: Costs, Factors and Tips
Life insurance might seem like something to secure earlier in life, but some seniors over 70 may find it plays a valuable role in their financial plans. Whether it’s covering final expenses, protecting loved ones or supporting estate goals, the right policy can offer meaningful peace of mind. Here’s how costs work, what affects your… read more…
Tax Policy
Capital Gains on Primary Residence: Rules and Examples
Selling your home is one of the biggest financial transactions you’ll ever make. While many homeowners worry about a large tax bill, the reality is that rules like the Internal Revenue Code Section 121 can allow you to keep much, or even all, of your profit. Here’s how capital gains on a primary residence are… read more…
Inheritance
4 Ways to Leave Money to Your Grandchildren
Leaving a financial legacy for your grandchildren is about more than just passing down money, it’s also about creating opportunities that can shape their future. Whether you want to help pay for education, support major life milestones or build long-term wealth, there are several ways to do so. Knowing your options can help you choose… read more…
Personal Finance
MoneySpire Review: Features, Pricing and Competitors
Not all budgeting tools are equal, especially when it comes to the balance of convenience, cost and control they offer. Moneyspire takes a different approach from many modern apps by offering desktop-based financial management with a one-time purchase option. If you’re looking for a way to track your money without ongoing subscription fees, it’s worth… read more…
How to Invest
Very-High-Net-Worth Individuals: How Much They Have and How They Invest
The wealth management industry segments affluent individuals into distinct tiers, each with different investment opportunities and service models. Very-high-net-worth individuals occupy a specific middle ground, wealthy enough to access sophisticated investment strategies but typically below the threshold where building a dedicated wealth management infrastructure makes sense. A financial advisor who works with very-high-net-worth clients could… read more…
Tax Filing
How to Use IRS Form 843: Refund Claims and Tax Abatements
Dealing with IRS penalties and incorrect tax assessments can be frustrating. This is especially true when you believe the charges are unfair or that they resulted from circumstances beyond your control. In these scenarios, Form 843 is the IRS mechanism for requesting relief from penalties, interest and certain tax overcharges. A financial advisor can help… read more…
Advisor Basics
Family Office Advisor: Client Services and Examples
Managing significant wealth across investments, taxes, estate planning, insurance and philanthropy can become complex to oversee. A family office advisor can serve as a central point of contact across all of these areas, bringing together specialists and strategies that might otherwise remain disconnected. A financial advisor can help you create an investment strategy that aligns… read more…
Growth Investing
Invest $1,000 a Month for 20 Years: Calculation and Example
Investing $1,000 a month may sound like a stretch, but over time it can add up to substantial wealth. How much depends largely on your average return and how long you stay invested. Here is a look at what two decades of consistent monthly investing could produce and how to think about where to put… read more…
How to Invest
4 Value Investing Strategies: How They Work and Examples
Value investing is built on a simple idea: markets don’t always price companies accurately, and patient investors can take advantage of that gap. The approach looks different depending on the investor, ranging from hunting for deep discounts to buying high-quality businesses at a fair price. Understanding the different styles could help you identify opportunities that… read more…
Real Estate
Rental Property Analysis: 5 Valuation Methods and Examples
Rental properties can look promising on the surface but fall short once you factor in income, expenses, and true market value. The difference often comes down to your analysis before you buy. Here are five valuation methods that could help you make more confident, data-driven decisions. A financial advisor could help you weigh real estate… read more…
Investing for Beginners
7 Low-Risk Investments for Beginners: Pros and Cons
Building wealth does not require taking outsized risks. For investors who prioritize capital preservation and steady returns over aggressive growth, a range of low-risk options can put money to work without the volatility that comes with stocks or speculative assets. Understanding what these investments offer, and where their limits are, is a useful starting point… read more…
Financial Planning
Steps to Unfreeze Your Credit With All 3 Credit Bureaus
If you’ve frozen your credit to protect yourself from identity theft, you’ll need to unfreeze it before applying for a loan, credit card, or other financial product. The good news is that unfreezing your credit is quick, free, and can often be done instantly online. We’ll review how the process works at each of the… read more…
Home Buying
Principal vs. Escrow: Which Should You Pay First?
Your monthly mortgage payment might look like a single number, but it’s actually doing multiple jobs behind the scenes. Part of it builds your ownership stake in your home, while another portion covers essential costs like taxes and insurance. Knowing how principal and escrow work, and which to prioritize when you have extra money, can… read more…
How to Invest
How to Invest $2,000: Investment Opportunities and Examples
You don’t need a huge amount of money to start investing. Sometimes, $2,000 is more than enough to get the ball rolling. The key is knowing how to use it wisely so it can grow over time rather than sit idle. With the right approach, even a relatively small investment can open the door to… read more…
Financial Planning
How to Pay Off Your Mortgage in 10 Years: Options and Examples
Imagine what your financial life would look like without a mortgage payment hanging over your head every month. For most homeowners, a 30-year mortgage feels like a lifetime commitment, but it doesn’t have to be. With the right strategy and enough discipline, it’s entirely possible. If you can pay off your mortgage in just 10… read more…
Financial Planning
How to Finance Home Improvements: Options and Examples
It might be a leaky roof, an outdated kitchen or a bathroom that needs an upgrade. Whatever the project, most homeowners have something they’d like to fix or improve. The challenge is often the cost. Home improvement projects can easily exceed five figures, and many people don’t have that kind of cash on hand. While… read more…
Financial Planning
Trump Accounts for Kids: How Much Your Child Could Have by Age 18 and Beyond
Trump Accounts for kids are designed to give children a government-funded starting balance that can grow over time through investment returns and additional contributions. For example, a $1,000 deposit earning roughly the average annual return of the S&P 500 could reach about $5,560 by age 18 or nearly $490,370 by age 65 without additional contributions.… read more…
Other
Estate Planning for Couples Without Children: Services and Examples
Couples without children may have more flexibility in shaping their estate plans, but that also means making some key decisions. Without direct heirs, they need to decide who will receive their assets, who will handle financial or healthcare matters if needed, and how they want to leave a lasting impact. With thoughtful planning and the… read more…
Trusts
Trust vs. Custodial Account: Which Is Better for Your Child?
Setting aside money for your child’s future is one of the most meaningful financial decisions you can make, but the way you structure it matters. Custodial accounts are simple and inexpensive to set up, making them a practical option for getting started. Trusts give you more control over when and how your child receives the… read more…