Category Archives: Retirement Savings

Ask Linda: Pre-tax versus Post-tax savings

Dear Linda, Should I save to my pre-tax 401k at work or my Roth IRA? I cannot fully fund both. Sincerely, Super Saver Dear Super Saver, To determine which account you should save to, calculate your tax rate today versus your projected rate in retirement. In general, Roth contributions are made with after-tax dollars and distributed tax-free. The 401k is the opposite – contributions are made with pre-tax dollars and distributions are taxed at ordinary income rates. If you areRead More

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Can’t get yourself FIREd? You can still have a LIFE.

FIRE stands for financially independent, retire early. The movement continues to grow, with retirees in their 20’s through 40’s. It has caught on because it is unexpected – we don’t picture retirees being so young. Yet it is entirely possible and there is an ever-growing number of blogs and books that prove it. The typical profile of someone who has achieved FIRE: Graduated from college with very little or no student loan debt Earned $100,000+ per year with benefits SavedRead More

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How to Recognize a Ponzi Scheme

A Ponzi scheme is a fraudulent investment. The organizers of the scheme do not invest your money in something with intrinsic value. Instead, they pay you a “return” with the contributions of new investors. Ponzi schemes received their name in the 1920’s after Charles Ponzi was convicted of running this type of business. Despite all the knowledge we have of previous Ponzi schemes, they continue to defraud people from all walks of life. We are even seeing a new waveRead More

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Impact Investing: The Myths

Impact investing opportunities continue to grow with one of every five dollars being invested sustainably as of 2016. Regardless, there are myths about impact investing that continue to persist, despite evidence to the contrary. For our second post in a series on impact investing, we debunk these common myths. Myth: My investment return will suffer if I implement an impact investing strategy. Deutsche Asset Management and the University of Hamburg aggregated the findings of over 2,000 studies in 2016. AroundRead More

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Ask Linda: What should I do with this unexpected bonus?

Dear Linda, I will be receiving an unexpected bonus shortly. I want to make sure I am smart with the money and have a plan in place for what I am going to do with it. Any ideas? Sincerely, Lucky Lady Dear Lucky Lady, Your question is a common one we receive around this time of year as companies complete their prior-year reporting and issue bonuses. You are wise to create a strategy before spending the bonus. Without knowing theRead More

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Tax Planning for 2018

The TCJA (Tax Cuts and Jobs Act) passed in late 2017 affects your tax planning for 2018. We highlighted the changes that are most likely to pertain to our clients. The information is general in nature, and not a substitute for individual and customized tax advice from your tax preparer. 1) Some retirement plan contributions have increased. If you contribute to a TSP, 401k, or 403b, you may be eligible to increase your savings. The limit is now $18,500 versusRead More

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