Posts by SmartAsset Team
Annuities
What Do Financial Advisors Make for Selling Annuities?
Annuities are a common financial product used in retirement planning, but their compensation structure isn’t always easy to understand. Many investors are familiar with the basic concept of exchanging a lump sum for a stream of guaranteed income, but fewer are aware of how financial advisors are compensated when recommending these products. How advisors are… read more…
Investment Taxes
What Is an Exchange Fund? Investment Benefits and Risks
Owning a large stake in a single company’s stock can simultaneously feel like a blessing and a burden. The wealth is real, but so is the risk, and selling those shares to diversify often means handing a significant portion of the gains straight to the IRS. Exchange funds exist precisely to solve that problem. They… read more…
Advisor Basics
Can Financial Advisors Beat the Market? Returns and Risks
The data on market-beating performance is clear: the vast majority of professional money managers don’t beat their benchmarks over the long term. But the real question isn’t whether advisors beat the market. Instead, it’s whether or not they help you achieve better financial outcomes than you would on your own. While a financial advisor can’t… read more…
Advisor Basics
Estate Planning for Married Couples: Services and Examples
Marriage is a partnership in life, and it should be a partnership when it comes to planning for the future, too. A lot of couples assume everything will automatically go to the surviving spouse, but estate laws and beneficiary rules don’t always work that way. Without a clear plan, your family could end up dealing… read more…
Trusts
How to Use a Living Trust for Estate Planning
Planning for what happens to your assets after you’re gone isn’t always easy, but the right tools can make the process smoother for your loved ones. A living trust is one of those tools, giving you a way to manage and transfer wealth with more privacy and control than a will alone. Whether you want… read more…
Advisor Basics
Wealth Management for Women: Milestones, Services and Examples
Wealth management for women focuses on building and protecting wealth in ways that account for the financial realities women are more likely to face. Longer life expectancy, career breaks for caregiving, pay gaps, and major life changes like divorce or losing a spouse can all shape the financial picture over time. And because most women… read more…
Advisor Basics
Wealth Management for Doctors: Services and Examples
Physicians tend to earn well, but the financial picture is often more complicated than it looks. Between high tax exposure, student loan debt, and years of training that delay real wealth building, many doctors start saving later than most professionals. On top of that, decisions around practice ownership, partnership income, and when to retire add… read more…
Advisor Basics
Wealth Management for Business Owners: Services and Examples
Unlike traditional employees, business owners often have income tied directly to company performance, fluctuating cash flow, and ownership equity. A significant portion of their net worth may be concentrated in a single asset: their business. This creates unique challenges related to diversification, retirement planning, tax strategy, and succession preparation. As such, wealth management for business… read more…
Tax Filing
What Is the IRS Penalty for Failing to File a Tax Return?
Missing a tax filing deadline can feel like a minor slip, but the financial consequences can snowball quickly. The IRS imposes strict penalties on taxpayers who fail to file on time, and those penalties grow with every month that passes without action. Knowing how these penalties work, whether you owe any and what options you… read more…
Advisor Basics
Wealth Management for Families: Milestones, Services and Examples
Unlike individual planning, family wealth management addresses shared financial responsibilities such as supporting children, household expenses and long-term savings goals. These needs often change over time as families experience major milestones such as buying a home, increasing income, or planning for retirement. Wealth management for families also focuses on lining up investments, risk management and… read more…
Market Analysis & Economic Trends
How to Protect Your Money During War: Investment Types and Strategies
During periods of armed conflict, investors typically shift toward defensive assets that historically maintain value during geopolitical instability. Commodities like gold and oil, defense sector stocks, Treasury bonds, and consumer staples companies top the list of what to invest in during war. The flight-to-safety phenomenon drives capital toward stable currencies such as the U.S. dollar… read more…
Market Analysis & Economic Trends
What Happens If the U.S. Defaults on Its Debt? Impact on the Economy and Your Money
If the U.S. defaults on its debt, the government would fail to meet its financial obligations to bondholders. This would trigger widespread economic disruption. While the U.S. has never fully defaulted on its modern debt, it has come close during debt ceiling standoffs. A default would cause Treasury securities to lose their safe-haven status, sending… read more…
Market Analysis & Economic Trends
Does War Cause Inflation? Iran vs. Afghanistan vs. Iraq
The relationship between military conflict and rising prices is complex. Wars can trigger inflation through supply disruptions and government spending. However, whether they actually do depends on economic conditions at the time. How governments finance military operations, along with central bank policy responses, also play a role. The ongoing U.S.-Israeli war with Iran has already… read more…
Market Analysis & Economic Trends
How Does War Affect the Economy? Iran vs. Afghanistan vs. Iraq
Is war good for the economy? The evidence points decisively toward the contrary. Military conflicts impose substantial costs through government debt accumulation, resource diversion from productive sectors, and long-term fiscal strain. The wars in Iraq and Afghanistan added trillions to U.S. national debt while disrupting global trade and energy markets. Though defense spending creates activity… read more…
Investing for Beginners
6 High Yield Investment Strategies
Earning more from your money doesn’t have to mean taking on more risk or handing your portfolio over to a high-priced money manager. Whether you’re sitting on cash in a low-interest savings account or looking to diversify beyond a basic stock portfolio, there are proven strategies that can meaningfully boost your returns without requiring a… read more…
Inheritance
Estate Planning Strategies for Generational Wealth
An estimated $124 trillion will transfer between generations over the next 25 years, representing the largest wealth shift in American history.1 Yet building wealth is only half the challenge, as many families struggle to preserve their legacies across generations. Estate planning for generational wealth involves creating a comprehensive strategy to transfer assets across multiple generations… read more…
Investing for Beginners
Taxable vs. Tax-Deferred vs. Tax-Free Accounts
The main difference between taxable, tax-deferred and tax-free accounts lies in when you pay taxes on your money. Taxable accounts generate tax obligations on dividends, interest and realized capital gains in the year they occur. In contrast, tax-deferred accounts like traditional 401(k)s and IRAs let you postpone taxes until you withdraw funds in retirement. Meanwhile,… read more…
Tax Credits & Deductions
Tax Credits and Deductions for Home Improvements
Home improvements can make your home more comfortable, raise its value and lower energy costs over time. Some projects may also qualify for tax credits or deductions. These tax breaks can reduce what you owe when you file your taxes. In other cases, the cost of improvements can increase your home’s cost basis. That may… read more…
Tax Planning
How Paying Off Your Mortgage Early Can Affect Your Taxes
Paying off your mortgage early saves you money on interest but it can also change your tax situation. Once the mortgage is gone you lose the mortgage interest deduction, which may reduce the total amount you can itemize on your tax return. That could mean a higher taxable income than you expected. You also need… read more…
Investment Taxes
Realized vs. Unrealized Gains: Tax Timing and Reporting Rules
Tracking your portfolio growth, is important but knowing when your gains become taxable is just as critical. There is a key difference between gains you have locked in by selling and gains that only exist on paper. This distinction between realized and unrealized gains drives most of the tax decisions investors face. Selling a stock… read more…
Investment Taxes
Long-Term Stock Investments: Tax Rules and Growth
Buying stocks is one thing but knowing how to hold them over time is what builds real wealth. Long-term investing gives you the benefit of compounding growth, lower taxes on gains and less exposure to short-term market swings. Short-term trading doesn’t offer those same advantages and often costs more in fees and taxes. The longer… read more…
Tax Planning
Federal Tax vs. State Tax: Definitions and Examples
Most people see taxes come out of their paycheck without thinking much about where the money goes. Federal taxes follow one set of rules no matter where you live, but state taxes vary widely depending on your location. Some states have no income tax at all while others take a significant cut. These differences affect… read more…
Tax Planning
Sales Tax vs. Use Tax: Definitions and Examples
Most people are used to seeing sales tax on a receipt, but not every purchase includes it. When it doesn’t, you may still owe tax on that purchase through what’s called a use tax. This comes up most often with online shopping, out-of-state purchases and private sales. Understanding the difference between sales tax and use… read more…
Advisor Basics
Financial Counselor vs. Financial Advisor: Services and Examples
If you are looking for professional help with your money, it helps to know the difference between a financial counselor and a financial advisor. These two roles sound similar but they focus on different things. A financial counselor typically works with people on budgeting, debt and day-to-day money management. A financial advisor focuses on investing,… read more…
Investing for Beginners
8 High-Yield Investments That Are Considered Safe
Safe high-yield investments often include government-backed securities, high-quality bonds and income-producing equities. These assets can be preferable because they offer predictable payments over time. While higher yields could improve your income potential, no investment is completely risk-free. Factors such as credit quality, diversification and market conditions all influence how safe an investment may be. Investors… read more…