Posts by SmartAsset Team
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…
Trusts
Can You Borrow Against a Trust Fund? Rules and Options
There may come a time when you need cash while your inheritance sits in a trust, whether you’re facing a medical emergency, want to buy a home or simply need liquidity. However, accessing trust funds isn’t always straightforward. The answer to whether you can borrow against a trust fund depends on the type of trust… read more…
Investing for Beginners
Dividend Stock Funds: How They Make Money, Benefits and Risks
Dividend stock funds provide exposure to companies that regularly distribute a portion of profits to shareholders, offering the potential for both income and long-term growth. Rather than selecting individual dividend-paying stocks, investors can use dividend stock funds to access diversified portfolios of companies that pay regular dividends. These funds may invest in companies across sectors… read more…
Real Estate
Real Estate Holding Company: How It Works, Pros and Cons
A real estate holding company is one strategy that investors use to centralize ownership of multiple properties while separating legal liability between assets. Holding companies are commonly structured using limited liability companies (LLCs) or corporations, each of which may hold a separate property. Individual investors, partnerships and family real estate businesses often use real estate… read more…
Portfolio Management
REIT Mutual Funds: How They Generate Income, Benefits and Risks
REIT mutual funds can provide income through dividend distributions while also offering potential long-term growth tied to commercial real estate markets. Because real estate often behaves differently than traditional stocks and bonds, REIT mutual funds may help improve diversification in an investment portfolio. However, like any investment, REIT mutual funds involve both benefits and risks. … read more…
Other
Risk Management for Small Business: Services and Examples
Running a small business involves handling many responsibilities at once, including managing risk. Every business faces threats that could disrupt operations, affect finances or lead to legal liability. Preparation can play a role in how a business responds when those threats arise. A financial advisor can help you identify the specific risks your business faces… read more…
Retirement Planning
Retirement Planning for Federal Employees: Services and Examples
Federal employees receive a retirement benefit package that includes a pension, a tax-advantaged savings plan and Social Security. But many do not fully understand how these benefits work, and that can mean leaving money behind. The FERS pension, the Thrift Savings Plan and Social Security each come with their own rules, deadlines and trade-offs. Whether… read more…
Tax Planning
International Tax Planning: Services and Examples
Tax planning is complicated enough in one country. Add a second, and things get more complex in a hurry. Overlapping tax obligations, foreign reporting requirements, and the risk of being taxed on the same income twice all come into play. Whether you’re a U.S. resident earning income abroad, a business operating in multiple markets, or… read more…
Wills
Executor Services: Estate Planning Examples
When someone passes away, the last thing their family should have to deal with is a complicated and drawn-out estate settlement. But without the right executor in place, that’s often what happens. An executor is responsible for carrying out the deceased person’s wishes, settling debts, and making sure assets go where they’re supposed to. It’s… read more…