First available in 1998, Roth retirement accounts have quickly become a popular way to save for retirement by allowing participants’ after-tax contributions to grow tax-free and, unlike traditional IRA accounts, not be subject to taxes upon withdrawal. As their popularity increased, employer-sponsored 401(k) plans with a Roth option quickly followed, becoming available for employers to offer to their employees in 2006. According to CNBC, the number of employers offering a 401(k) with a Roth option has nearly doubled to 88% in the past decade.
Understanding the Differences Between Long-Term Care Options
Though it’s not pleasant to contemplate, according to the US Department of Health and Human Services, an individual who is 65 years of age today has a nearly 70% chance of needing some type of long-term care in their older years. Long-term care is a blanket term that incorporates care over an extended period of time, both in your home or in a facility and it can range from general assistance with daily tasks to more comprehensive medical care. AARP reports that the national average for a private room in a nursing home is $108,405 per year and $61,776 for a home health aide.
Trusts and Estate Planning
What is a trust?
A trust is a legal arrangement that allows a third-party (known as a trustee) to manage assets on behalf of a beneficiary or beneficiaries. A trust is set-up by a person known as the grantor, sometimes also referred to as a trustor, who determines what assets are to be added to the trust and names the trustee and beneficiaries. Property put in trust is legally owned by the trust and can be any type of asset, including cash, securities, life insurance policies, or a home or other real estate.[Read more…]
Understanding the Secure Act 2.0
In 2023, the SECURE Act 2.0 for retirement savings becomes federal law, reshaping tax incentives for years to come by making numerous changes to existing retirement account rules and related tax breaks. Though there are many changes, below are some of the ones that will impact high wage earners, those still working, and those who have or are about to retire.
The Consumer and Producer Price Index
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