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☆ Roth provisions in Secure 2.0: What you should know
▼ + stars: | 2023-02-13 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +4 min

How Secure 2.0 broadens accessHere are four key Roth-related changes in the new retirement law. Catch-up contributions for high earners: If you’re at least 50 and max out your contributions to your 401(k), you will be permitted to save an additional $7,500 in catch-up contributions. SIMPLE and SEP IRAs: Both SEP IRAs and SIMPLE IRAs — which are used by small businesses — are now permitted to be designated as Roth IRAs if a small business owner chooses. The only way to remedy that is to roll your Roth 401(k) money into a Roth IRA. But, starting in 2024, your Roth 401(k) will no longer be subject to required minimum distribution rules.

☆ Columbia Savings and Loan Association Review: Black-owned Bank With CDs and Conservative Investment Accounts
▼ + stars: | 2023-02-13 | by ( Laura Grace Tarpley | Sophia Acevedo | Personal Finance Reviews Editor | ) www.businessinsider.com time to read: +11 min

Columbia Savings and Loan Association bank accounts Columbia Savings and Loan Association Certificate of DepositColumbia Savings and Loan Association IRA Certificate of Deposit Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. How Columbia Savings and Loan Association WorksColumbia Savings and Loan Association is designated as a minority-led financial institution (MDI) by the FDIC. Columbia Savings and Loan Association vs. Liberty Bank and TrustLiberty Bank and Trust has more types of banking products than Columbia Savings and Loan, including traditional and Roth IRAs. Columbia Savings and Loan Association: Frequently Asked QuestionsWhere is Columbia Savings and Loan Association? Columbia Savings and Loan Association has CDs and IRA CDs.

If you're dating someone new, here are five red flags around money you should be looking out for:1. Pros Check mark icon A check mark. Low annual fee for investment accounts; crypto trust investments available Check mark icon A check mark. Tax-loss harvesting Check mark icon A check mark. Mobile app and investing and retirement tools Check mark icon A check mark.

☆ Column: Where to park the 401(k) when you switch jobs or retire
▼ + stars: | 2023-02-09 | by ( Mark Miller | ) www.reuters.com time to read: +5 min

When you change jobs or retire, you have three basic choices: leave your retirement account where it is, roll it over to a new employer or move it to a standalone individual retirement account (IRA). When does it make sense to leave a 401(k) plan behind? A rollover can make sense if you are in a 401(k) plan with poor investment choices or high fees. FOCUS ON THE FEESPew analyzed the difference between average institutional and retail share class expense ratios across all mutual funds that offered at least one institutional share class and one retail share class in 2019. There is also a case to be made for staying in your 401(k) plan - especially if you work for a large employer.

Millennials have lived through two recessions and might be facing a third as their parents retire. Talking money with your parents isn't going to be fun, but it's a good idea to know their status. A major part of that preparation is figuring out where the money will come from to care for their parents. Decide who can provide the financial caretakingSo should millennials be saving for their parents' care? But Williams, the financial planner, doesn't advise millennials to focus their saving efforts on their parents' care.

☆ Roth IRA 'five-year rule' can trigger an unexpected tax bill: Here's what you need to know
▼ + stars: | 2023-02-06 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Taxes on investment earnings are at "ordinary income" tax rates, not the preferential tax rates for capital gains. Roth IRA owners must have their account for at least five years to avoid paying income tax on any withdrawn investment earnings. Here's a simple example: Let's say a 60-year-old contributed $6,000 to a Roth IRA in January 2020. It's the saver's only Roth IRA and the first time they've contributed money to such an account. Who will 'never need to know the 5-year rule'Of course, not everyone is eligible to contribute to a Roth IRA.

If you've already maxed out your 401(k) or other workplace retirement account, consider contributing to a Roth or traditional IRA as well. Pros Check mark icon A check mark. Low annual fee for investment accounts; crypto trust investments available Check mark icon A check mark. Tax-loss harvesting Check mark icon A check mark. Mobile app and investing and retirement tools Check mark icon A check mark.

During the pandemic, 300,000 public school teachers and staff left the profession, The Wall Street Journal reports. Pros Check mark icon A check mark. Low annual fee for investment accounts; crypto trust investments available Check mark icon A check mark. Tax-loss harvesting Check mark icon A check mark. Mobile app and investing and retirement tools Check mark icon A check mark.

To combat the issue of employees forgetting their old 401(k) accounts, Capitalize finds your old account(s) and coordinates the IRA rollover for you. If you indicate that you don't already have an IRA, Capitalize will walk you through opening one. While Capitalize can help you roll your old 401(k)s into a new IRA or an existing IRA, the platform can't help you roll your old account into your current employer's 401(k) account. Bottom lineOverall, Capitalize provides an accessible way for finding old 401(k) accounts and rolling them into an IRA. The platform's features account for some common hang-ups when it comes to 401(k) management, such as not knowing who holds their old 401(k) account or not having an IRA account to serve as a destination for the old 401(k) account's funds.

That's why I reached out to my accountant, Katie Gallo, and asked if there's anything I can do now to help reduce my 2022 tax bill. Pros Check mark icon A check mark. Low annual fee for investment accounts; crypto trust investments available Check mark icon A check mark. Tax-loss harvesting Check mark icon A check mark. Mobile app and investing and retirement tools Check mark icon A check mark.

☆ Stocks are down, but it's a 'great time' for a Roth IRA conversion—here's why
▼ + stars: | 2023-01-04 | by ( Ryan Ermey | ) www.cnbc.com time to read: +5 min

Because Roths are funded with money you pay taxes on upfront, you'll owe a bill on any investments you move over. Traditional vs. Roth IRAs: 'You can't beat a 0% tax rate'To understand the benefits of a Roth conversion, it's important to know the key differences between traditional and Roth IRAs. Because you haven't been taxed on any of the money in your traditional IRA, you'll owe taxes if you convert to a Roth. If you convert it to a Roth, you'd owe taxes on the dollar value of the shares: $1,000. Once your stocks are converted, they'll ideally continue to grow tax-free in your Roth account until you're ready to withdraw the money in retirement.

☆ Secure 2.0 changes 3 key rules around required withdrawals from retirement accounts
▼ + stars: | 2023-01-03 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

President Joe Biden signed a $1.7 trillion legislative package on Dec. 29, 2022 that has several updates for retirement savers. Raising the RMD age to 73 (and eventually 75)Currently, savers have to start taking RMDs at age 72. The new law raises the RMD starting age in two tranches: to 73, starting in 2023, and to 75, starting in 2033. Eliminating RMDs from a Roth 401(k)Starting in 2024, investors in employer retirement plans likes Roth 401(k) accounts will no longer have to take RMDs. This change aligns Roth 401(k) with Roth IRAs, which don't require distributions during one's lifetime.

Tax-loss harvesting, portfolio lines of credit, 529 college savings plans available Check mark icon A check mark. Competitive mobile and online offerings for digital investors and traders Check mark icon A check mark. Access to Certified Financial Planners at no additional charge Check mark icon A check mark. Low-cost, hands-off investment account that combines automated features with management from a team of human investment professionals Check mark icon A check mark. We compared nearly two dozen brokerages, placing heavy weighting on their advisory and trading fees, investment philosophy, investment options, and types of accounts available.

☆ How to Invest in Stocks
▼ + stars: | 2022-12-30 | by ( ) www.wsj.com time to read: +23 min

Set your time frameWhen you’re ready to invest in stocks, it’s natural to start by looking at how the stock market has performed recently. If you’re saving for the long-term: Invest in stocksOn the other hand, if you have a long-term financial goal—especially retirement, but any goal a decade or more out—you can afford to invest in the stock market. Decide how much risk to takeJust because you have time to invest in stocks doesn’t mean you have the stomach. Return Best Year Worst Year Years with a loss 100% Stocks 12.3% 54.2% -43.1% 25/96 80% Stocks 11.1% 45.4% -34.9% 24/96 60% Stocks 9.9% 36.7% -26.6% 22/96 40% Stocks 8.7% 35.9% -18.4% 19/96 20% Stocks 7.5% 40.7% -10.1% 16/96 100% Bonds 6.3% 45.5% -0.8% 20/96 VanguardStep 3. Most ETFs are index funds, meaning they merely aim to match the returns of a stock market index, although some target very narrow slices of the market, such as just tech stocks or just energy stocks.

Vanguard vs. TD Ameritrade: The biggest differencesCompare Vanguard and TD Ameritrade VanguardTD Ameritrade investment account Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Read our review Read Our Review A looong arrow, pointing rightVanguard and TD Ameritrade's features and account options also vary. Most of the brokerage's actively managed mutual funds have a $3,000 minimum, but you'll only need $1,000 for investor shares in Vanguard Target Retirement Funds and the Vanguard Star Fund. Its other automated investing account, Vanguard Personal Advisor Services, offers something more: one-on-one advisor guidance. Vanguard vs. TD Ameritrade — Frequently asked questions (FAQ)What is the difference between Vanguard and TD Ameritrade?

☆ 4 new ways to avoid a tax penalty for early individual retirement account withdrawals
▼ + stars: | 2022-12-28 | by ( Greg Iacurci | ) www.cnbc.com time to read: +9 min

New exceptions to the 10% tax penaltySavers generally incur a 10% tax penalty if they withdraw money from a retirement account before age 59½. The following list outlines rules in the new legislative package that waive the 10% early withdrawal penalty for IRA owners. Terminal illness A terminally ill person wouldn't be penalized for withdrawing retirement funds before age 59½. Disability Certain disabled retirement savers under age 59½ aren't beholden to the tax penalty. IRS levy You won't incur a penalty if the distribution results from an IRS tax levy (i.e., if the IRS takes your retirement funds to satisfy a tax debt).

☆ Here's what Secure 2.0 means for you if you're getting close to retirement
▼ + stars: | 2022-12-27 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +4 min

Insta_photos | Istock | Getty ImagesIf you're getting close to retirement age, there are some upcoming changes enacted as part of a government funding bill that may be of interest to you. Catch-up contributions are poised for changesUnder current law, anyone age 50 or older can make "catch-up" contributions to their 401(k) account. Unlike contributions to traditional 401(k) plans, money put in a Roth 401(k) or individual retirement account doesn't get you a tax break, but qualified withdrawals in retirement are tax-free. This Roth requirement means "if you don't have a Roth option in your plan, catch-up contributions wouldn't be allowed," Dickson said. "If their plan allows it, [workers] can elect to have employer matches be designated as Roth contributions," Dickson said.

☆ What Is a Robo Advisor, and Do I Need One?
▼ + stars: | 2022-12-16 | by ( ) www.wsj.com time to read: +9 min

That’s where a robo advisor can help. A robo advisor is a digital, automated service that makes investing easy because it picks securities for you. How to start investing with a robo advisorGetting started investing with a robo advisor is designed to be easy. Robo advisor accounts are well-suited for anyone who is comfortable being online but needs a nudge to invest and would rather not do it themselves or doesn’t have the means to hire an individual financial advisor. Betterment and Wealthfront, for example, offer savings accounts, which pay substantially more than traditional bank savings accounts, as well as checking accounts and debit cards.

Entrepreneur Ellie Diop is passing down to her kids three money lessons she wishes her parents had taught her early on. Diop also wants her kids to learn how it feels to be paid fairly for their work. Today, Diop is teaching her children three key lessons about building wealth that she wishes she learned from her parents. Diop wants her kids to learn how to properly manage their money"I grew up with a single mother," Diop says. By paying her kids for small tasks around the office, Diop wants to teach them how to have a different relationship with money than she did growing up.

☆ A 33-year-old who house-hacked his way into free rent and 3 cash-flowing units within 3 years explains how he started investing in real estate
▼ + stars: | 2022-12-08 | by ( Laila Maidan | ) www.businessinsider.com time to read: +9 min

He purchased a duplex so he can live in one unit and rent out the other one. After an appraisal, Lacy told Insider he closed on the property in June 2019 at $230,000 with the $5,000 closing cost paid by the seller. He could live in the smaller unit and rent out the bigger one for higher rent. So in September of 2019, he started studying for his real estate license and received it in January 2020. Lacy told Insider that after about $25,000 worth of renovations to upgrade the flooring, kitchen, and some appliances, he was able to increase the rent to $1,750.

☆ PE wants to see some cash flow before it starts making deals
▼ + stars: | 2022-12-07 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

As the markets continue to sour, and a recession looms, everyone's wondering when PE firms will begin scooping up assets. High on Bae's wishlist are "all things digital," he said, with one giant caveat: profitability. There are plenty of companies doing fascinating things in the digital space, but many have yet to reach profitability (*cough* fintechs *cough*). Goldman Sachs is going dumpster diving for crypto companies. Chaos in the crypto markets is creating investing and acquisition opportunities for the bank, according to Matthew McDermott, Goldman's head of digital assets.

☆ Robinhood Wants Your Retirement Money
▼ + stars: | 2022-12-06 | by ( Peter Rudegeair | ) www.wsj.com time to read: 1 min

Robinhood Markets Inc. is offering retirement accounts to its users for the first time, hoping the tax-advantaged products can help reverse the brokerage’s decline in trading activity. The company said it would match 1% of what users put into their traditional or Roth IRAs until they hit their annual contribution limit. For 2022, the Internal Revenue Service set that limit at $6,000 for the younger investors that make up much of Robinhood’s user base, meaning the brokerage’s match would top out at $60 this year.

☆ 'This is a crisis.' Why more workers need access to retirement savings
▼ + stars: | 2022-12-02 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

As many as 57 million Americans lack access to a workplace retirement savings plan, said Ed Murphy, president and CEO of Empower, a provider of retirement services. "If they don't access through payroll deduction, they just flat out don't save." The lack of retirement plan coverage presents an opportunity for the financial industry and government to work together to find solutions, Walsh said. California is one of a handful of states that has implemented automatic individual retirement accounts to help bridge that gap for workers who lack access to retirement plans through their employers. Those that opt out are required to begin offering their own retirement plan, per California rules.

Garcia tells Insider, "I was inputting some numbers into a retirement calculator, and it let me put in my age. Pros Check mark icon A check mark. Low annual fee for investment accounts; crypto trust investments available Check mark icon A check mark. Tax-loss harvesting Check mark icon A check mark. Mobile app and investing and retirement tools Check mark icon A check mark.

My husband and I are on track to retire wealthy, but we weren't always smart with our money. Pros Check mark icon A check mark. Low annual fee for investment accounts; crypto trust investments available Check mark icon A check mark. Tax-loss harvesting Check mark icon A check mark. Mobile app and investing and retirement tools Check mark icon A check mark.

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