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SmartAsset Team

SmartAsset employs a team of writers and editors with years of experience in the editorial, news and personal finance industries. Some staff members also hold the Certified Educator in Personal Finance (CEPF®) designation from the Institute for Financial Literacy.

Posts by SmartAsset Team

A model house and gavel.
Trusts

Can You Put a Mortgaged House Into a Trust? Pros, Cons and Steps

Putting a home into a trust can be part of an estate plan and may help transfer the property to heirs with fewer delays. A mortgage does not always need to be paid off first. In many cases, a mortgaged home can be placed into a trust without affecting the loan, as long as legal… read more…

Filing taxes in retirement may be simpler than during your working years, but the mix of Social Security, withdrawals and investments still requires planning to avoid extra taxes and missed deductions.
Retirement Taxes

Do Seniors Over 80 Have to Pay Income Tax?

Reaching your 80s doesn’t automatically mean saying goodbye to income taxes. Many retirees live on fixed incomes and may owe little or nothing to the IRS. However, others with pensions, investment income or retirement withdrawals may still face tax obligations. The key to understanding your tax situation in your later years lies in knowing which… read more…

Roth IRA gains are tax-free only for qualified withdrawals that meet IRS rules, while early or non-qualified withdrawals of earnings can trigger taxes and penalties.
Roth & Traditional IRAs

Do Roth IRA Gains Get Taxed?

How Roth IRA gains are taxed depends on when and why you withdraw the money. You can typically withdraw growth inside a Roth IRA completely tax-free if you meet certain IRS rules. However, early withdrawals or non-qualified distributions may trigger income tax and even penalties. It can be extremely beneficial to understand the distinction between… read more…

Unemployment benefits are generally taxable, and without proper withholding, they can lead to a tax bill when you file, depending on your state rules as well.
Tax Planning

Are Unemployment Benefits Taxable Income?

The IRS generally treats unemployment compensation as taxable income. If you don’t plan for this, or don’t withhold money from your weekly payments, you may owe money when you file your tax return. State tax rules vary, too, which can further impact your final tax bill. Knowing how to report unemployment correctly and how withholding… read more…

Owing taxes or getting a refund depends on withholding, income changes, and whether you still qualify for certain credits and deductions.
Tax Filing

When Do You Owe Taxes Instead of Getting a Refund?

Whether you owe taxes or receive a refund comes down to how much tax was withheld from your paychecks, how your income changed over the year, and whether you still qualify for the credits and deductions you may have relied on in the past. If too little tax is withheld or your tax situation shifts,… read more…

Selling real estate can generate a profit but may also trigger capital gains taxes based on the type of property, the gain and how long it was owned.
Tax Planning

When Are Capital Gains Taxes Due on Real Estate Sales?

Selling real estate can result in a significant profit, but it may also trigger capital gains taxes depending on whether the property qualifies for IRS exclusions, how much was earned and how long you owned the property. In most cases, capital gains taxes are owed for the tax year in which the property is sold,… read more…

Roth & Traditional IRAs

Can You Open a Roth IRA for Your Adult Child?

A Roth IRA offers tax-free growth and tax-free withdrawals in retirement, which can benefit young adults with long time horizons. You can help open a Roth IRA for an adult child if they have earned income and the account is in their name. Starting early allows more time for growth. A financial advisor can help… read more…

Inheritance taxes and estate taxes can reduce what beneficiaries receive, depending on state rules and estate size.
Estate Tax

Inheritance Tax Planning: Rules and Exemptions

An inheritance can add to your finances, but taxes may reduce the amount that reaches you. Some states tax beneficiaries directly, while separate estate taxes may apply before assets are distributed. Inheritance tax planning accounts for these rules in advance by using exemptions and transfer strategies to limit what is lost to taxes. A financial… read more…

A high-yield savings account can hold emergency cash with liquidity and higher interest than a traditional savings account.
Financial Planning

Using a High-Yield Savings Account for an Emergency Fund

A high-yield savings account for emergency fund purposes combines safety, liquidity and higher returns than a traditional savings account. These accounts let your emergency cash grow without locking it away or exposing it to market volatility. Whether you’re starting from scratch or fine-tuning your reserves, knowing how to use a high-yield savings account can strengthen… read more…

Roth IRAs offer tax-free growth and withdrawals, but income limits affect how you can contribute.
Roth & Traditional IRAs

Is There an Income Cap for a Roth IRA?

Roth IRAs allow your savings to grow tax free and allow tax free withdrawals in retirement. Your income determines whether you can contribute and how much you can add. The IRS sets annual income limits based on your tax filing status. These limits decide whether you can make a full contribution, a reduced contribution, or… read more…

Wealth management and financial planning serve different roles, with differences in scope and level of involvement.
Financial Planning

Wealth Management vs. Financial Planning: Services and Costs

Managing your money involves setting goals, organizing your finances and deciding how to use your resources over time. Wealth management and financial planning both support these decisions, but they serve different roles and are often used at different stages of wealth. They also differ in scope, cost structure and the level of ongoing involvement they… read more…

How a home’s title is held affects control, privacy and how the property is passed on.
Trusts

Buying a Home in a Trust: Revocable vs. Irrevocable

When you buy a home, the way the title is held affects how the property is managed, transferred and inherited. Some homeowners place a home in a trust to add privacy or simplify what happens after death. Choosing between a revocable and irrevocable trust depends on how much control you want to keep and how… read more…

The risk/reward ratio compares an investment’s potential gain with its potential loss to help evaluate whether the expected return is worth the risk.
Investing for Beginners

How to Calculate the Risk/Reward Ratio for Investments

Every investment involves a possible gain and a possible loss. The risk/reward ratio compares how much you could lose to how much you could gain. Calculating this ratio may help you decide whether a potential return is worth the risk. A financial advisor can help you apply the risk/reward ratio to your portfolio by evaluating… read more…

When a parent passes away, you may need to act quickly to secure accounts, handle bills and taxes, and manage property or estate matters.
Inheritance

Efficient Estate Planning After the Passing of a Parent

When a parent passes away, you may need to take on financial and legal responsibilities quickly. This can include securing bank accounts, managing bills and taxes and handling property or estate matters. Many of these tasks are time-sensitive and mistakes can create delays or added costs. A financial advisor can help review inherited assets, address… read more…

Claiming a college student as a dependent can affect which education tax benefits are available to the family or the student.
Financial Planning

Pros and Cons of Claiming a College Student as a Dependent

Claiming a college student as a dependent can affect which education credits and tax benefits are available to the family and to the student. The outcome depends on factors such as income levels, financial support provided and eligibility for specific education-related tax credits. A financial advisor can help evaluate how different filing approaches affect tax… read more…

You can use HSA funds to pay COBRA premiums tax-free, but eligibility rules, timing and recordkeeping requirements apply.
Healthcare & Living

How to Use an HSA to Pay for COBRA

You can use money from a health savings account (HSA) to pay for COBRA health insurance, allowing you to cover premiums with tax-free withdrawals. COBRA premiums qualify as medical expenses under HSA rules, which can make an HSA useful for maintaining coverage after leaving a job. Before using these funds, it’s important to understand the… read more…

An HSA offers tax advantages for covering qualified medical expenses in retirement, but some insurance premiums are not eligible.
Healthcare & Living

Can You Use HSA for Health Insurance Premiums After Retirement?

A health savings account (HSA) can support your retirement plan through tax-deductible contributions, tax-free growth and tax-free withdrawals for qualified medical expenses. But not all insurance premiums qualify, so it’s important to know which costs you can and cannot cover with HSA funds. A financial advisor can help you review your expected healthcare needs, compare… read more…

Comparing Medicare and the ACA means looking at how each program works, who qualifies and what you may pay.
Medicare

Medicare vs. Obamacare: Costs, Benefits and Enrollment

When comparing Medicare and Affordable Care Act (ACA or Obamacare) coverage, it helps to look at how each program works, who qualifies and what the costs may be. Medicare is a federal program for people age 65 and older and certain individuals with disabilities. The ACA provides access to private health-insurance plans and income-based subsidies… read more…

An inherited non-qualified stretch annuity pays out over many years and taxes only the earnings in each payment.
Annuities

Inherited Non-Qualified Stretch Annuities: Rules and Taxes

An inherited non-qualified stretch annuity pays out over many years instead of all at once. Only the earnings in each payment are taxable because the original contributions were made with after-tax dollars. Spreading payments over time can lower the yearly tax bill and keep the remaining balance growing tax-deferred. Distribution rules vary based on the… read more…

A stretch annuity spreads inherited payments over time instead of paying them all at once, which can support long-term income planning and reduce yearly taxable income.
Annuities

What Is a Stretch Annuity and How Does It Work?

A stretch annuity lets a beneficiary receive inherited annuity payments over an extended period rather than all at once. Spreading payments over time can create a steadier income stream and may limit how much taxable income is recognized each year. The remaining balance continues to grow tax-deferred while payments are made, which can support longer-term… read more…

A non-qualified stretch annuity allows beneficiaries to take inherited payments over time, offering potential tax advantages depending on the contract’s rules.
Annuities

What Is a Non-Qualified Stretch Annuity?

A non-qualified stretch annuity extends the payout of an inherited annuity over time, rather than receiving the full amount in a single lump sum. While qualified annuities (such as those within IRAs or 401(k)s) are subject to strict rules under the SECURE Act, non-qualified annuities, which are funded with after-tax dollars, may offer more flexible… read more…

A Roth IRA offers tax-free withdrawals in retirement, and the investments you choose inside it can shape how well the account supports your long-term goals.
Roth & Traditional IRAs

How to Build a Roth IRA Portfolio for Long-Term Growth

A Roth IRA is a tax-advantaged retirement account many people use to build long-term savings, but its rules and benefits can be confusing. Because qualified withdrawals are tax-free, the investments you select inside the account may influence your future retirement income. Whether you are opening your first Roth IRA or updating an existing one, knowing… read more…

Bond prices often fall when interest rates rise because the market adjusts their value to match current rate conditions.
Investing for Beginners

Why Bond Prices and Interest Rates Move in Opposite Directions

If you’ve ever watched bond prices fall while interest rates rise, you’ve seen one of the core mechanics of the bond market. These two factors move in opposite directions because of how bonds are priced relative to current market rates. While bonds are often viewed as a steadier part of an investment portfolio, their value… read more…

Paying extra on your mortgage can shorten your loan term, but it won’t lower your monthly payment unless you refinance.
Mortgage Basics

Can You Lower Your Mortgage Payment By Paying Down Principal?

Homeowners often see a mortgage as one of their largest financial commitments, and paying it off faster can feel like a major financial win. Extra payments toward the principal reduce the balance more quickly, but they generally shorten the loan term rather than lower the required monthly payment, unless you refinance or the lender recalculates… read more…

Retirement can bring new routines, and planning for it often means deciding how your income will work and which accounts to use first.
Financial Planning

Financial Advisor for Retirement: Services and Examples

Retirement is a new stage of life that may include travel, part-time work, new interests or a slower pace. Preparing for it often involves more than saving, since you may need to think about how your income will change, how long your savings might last and which accounts to use first. A financial advisor who… read more…