It’s an age-old question when it comes to retirement accounts. Should I use a ROTH or a Traditional IRA? Both are great vehicles to prepare for retirement. However, neither are ALWAYS a perfect fit for everyone. Let me break them down a little further to help you understand the differences and when you might want to choose one over the other. What is the difference? First, you need to know what each account does and how it shelters your money. ROTH IRA’s are the accounts that you place after-tax dollars in. So for example, if you put $5,000 in a ROTH, you’ll get the earnings from that tax-free later in life. Since the money was initially taxed before being placed in the account, it is set up to shield those gains from taxes. Essentially it’s tax-free money for retirement. A Traditional IRA works the exact opposite. The money placed within […]
IRS-Impersonation Telephone Scams Aggressive and sophisticated phone scams targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, using fake names and bogus IRS identification badge numbers. Scammers tend to know a lot about their targets, and usually alter the caller ID to make it look like the IRS is calling. They tell victims they owe money to the IRS and it to pay immediately. They often insist the payment is with a pre-loaded debit card or wire transfer. The scammers threaten arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting. Or, victims may be told they have a refund due too, trying to trick them into sharing private information. If the phone isn’t answered, the scammers often leave an “urgent” callback request. Please See: Consumer Alert: Scammers Change Tactics, […]
Did you know that two out of three Americans function without a budget? That equals out to about 70% of Americans living without a detailed plan that allocates what they should be spending and saving. We’ve all heard just how important budgets are to keep your finances on track, yet the vast majority of the country’s citizens continue to live without one. Why is that? For many people, the word budget conjures up images of frugality they aren’t willing to partake in… they see it as more of a restraint than a liberating element to their life. That couldn’t be further from the truth. Once you’re in control of where your money goes, then you know how you want to spend it. Here are five steps to transform your financial life by simply setting up a budget.
In my business, I work with all different types of people. They run the gamut. Some are employers, while others are the employees. Some tell me they want to retire early. To that, I then ask them what retiring early means to them. Are we talking late 50s, early 60s, perhaps even early 40s? The key to helping them reach that goal is to know the age that goal needs to be achieved by. Retiring early constitutes walking away from making income, living solely off our assets and whatever income they produce. For our example, let’s say the person wanting to retire early and is looking to do so between 55 and 60. The very first thing to consider is how much is this person going to live off of each of retirement? There’s a calculation that needs to be made on your budgetary requirements based on what you are […]
How a True Wealth Manager Views Your Life Hey, guys! Justin with Financially Simple here to help you understand how a wealth manager views your financial life. Most people think a wealth manager is just someone who invests money, but that’s not really the case if they are a setting up a comprehensive plan. Investing money is just one aspect of what we do. For example, think of your life as a box. Everything in the box is something you can control. We can either google to learn more, ask friends and family for advice or even hire professionals to help us build the custom life we want to have. Those areas are cash flow, risk management, investments, and distribution. What You Can Control Cash flow is how much money do we make and how do we make it. So few people know exactly where their money is spent. It […]