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☆ 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.

I asked financial experts to share the top ways a person can build up their wealth during a recession. 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.

☆ 55% of Americans are behind on saving for retirement—and that's OK
▼ + stars: | 2022-11-04 | by ( Mike Winters | ) www.cnbc.com time to read: +5 min

Around 55% of Americans say they're behind on saving for retirement, a recent Bankrate survey found. She's had clients who didn't start seriously saving until their 40s who are now on track to comfortably retire. How to get your savings back on trackIf you want to catch up on saving for retirement, you'll first need a well-defined goal. To get a basic idea of how much you need, a retirement savings calculator is a good place to start. Since life is full of unexpected expenses, you can never have too much money put away for retirement, she says.

☆ One simple investing move can set you up for huge returns and a minimal tax bill
▼ + stars: | 2022-11-01 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +6 min

Typically, the money invested in a Roth IRA or Roth 401(k) is post-tax, meaning you've already paid the taxes on the amount contributed. An extreme example of this is investor and Palantir Technologies founder Peter Thiel, who grew a Roth IRA from $2,000 to about $5 billion in about two decades. Rules of conversion Converting assets to a Roth IRA can get around some of the other limitations on the accounts. Investors should also consider the bill they'll have by converting assets into a Roth IRA now. It also usually only makes sense to do a Roth conversion if you see your tax rate increasing in the future.

☆ A 40-year-old physical therapist got $222,000 in student loans forgiven through PSLF and used 2 tax strategies to pay as little as possible along the way
▼ + stars: | 2022-10-27 | by ( Leo Aquino | Read More | Read Less | ) www.businessinsider.com time to read: +8 min

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. Retirement contributions work to lower AGI in a similar way.

☆ 401(k) contribution limits 2023: IRS increases amount you can save in your retirement account
▼ + stars: | 2022-10-21 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +3 min

The IRS on Friday announced a record increase in contribution limits to 401(k) and other tax-deferred retirement plans for 2023. That’s $2,000 – or roughly 9.8% – more than the current $20,500 federal contribution limit. The jump is largely due to inflation, to which the contribution limits are indexed. Increases in IRA contribution limits tooContributions to traditional IRAs and after-tax Roth IRAs will increase as well – to $6,500 from $6,000 currently, an 8.3% rise. The retirement contribution limits weren’t the only inflation-related news from the IRS this week.

☆ IRS: These are your 401(k) and IRA contribution limits for 2023
▼ + stars: | 2022-10-21 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +1 min

The IRS is increasing the limit by $2,000 for 2023, the agency announced Friday. Cost of living adjustments will bring the 2023 limit to $22,500 (up from $20,500) for individual contributions to retirement accounts including 401(k)s, 403(b)s, most 457 plans and Thrift Savings Plans. That brings the total contribution limit for those 50 and older to $30,000. Income limits for Roth IRA contributions will increase in 2023 as well. Individuals can contribute up to $15,500 to SIMPLE accounts (savings incentive match plan for employees), up from $14,000 in 2022.

☆ How this 41-year-old went from 'living on credit cards' to retiring at 36 with $3 millon in California
▼ + stars: | 2022-10-13 | by ( Ryan Ermey | ) www.cnbc.com time to read: +5 min

Today, the 41-year-old lives in San Diego, has a net worth of $4.4 million and runs a small business selling financial literacy courses online. Budgeting while building his business: 'I was living on credit cards'When he graduated from college, Schneider decided to bet on himself. Instead of taking a $74,000-a-year gig with Microsoft, where he'd interned as a software developer, he started his firm. Today, 41-year-old Jeremy Schneider lives in San Diego, has a net worth of $4.4 million and runs a small business selling financial literacy courses online. In 2019, Schneider started an Instagram account where he shared daily personal finance and money tips.

A credit union that's federally insured will have a NCUA sign on the website or building. Credit unions federally insured by the National Credit Union Administration, or NCUA, will also be secure. The NCUA controls the National Credit Union Share Insurance Fund, or NCUSIF, which is a fund by all participating credit unions. A credit union has to tell its members if a specific product isn't federally insured, so you'll know what is guaranteed by the credit union and what isn't. If your credit union closes, the NCUA will transfer your money to another credit union that's federally insured.

☆ Higher-income Medicare beneficiaries may face smaller premium surcharges in 2023. Here are tips for reducing or avoiding those extra amounts
▼ + stars: | 2022-09-29 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +5 min

Shapecharge | E+ | Getty ImagesIf you're a higher-income Medicare beneficiary, you may be paying less in extra premium charges in 2023 than you were this year. The higher your income, the higher the charge. "You pay a little more now to avoid higher tax brackets or IRMAA brackets later on," Meinhart said. RMDs are amounts that must be withdrawn from traditional IRAs, as well as both traditional and Roth 401(k) accounts, once you reach age 72. For investments whose sale you can time, it's also important to remember the benefits of tax-loss harvesting as a way to minimize your taxable income.

As someone who is in their 20s, I know how hard it can be to start saving for retirement. To make the process less intimidating, start small when saving for retirement and slowly increase your savings rate over time. Fidelity Investments Learn More Minimum deposit and balance Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go account, but minimum $10 balance for robo-advisor to start investing. Betterment Learn More Minimum deposit and balance Minimum deposit and balance requirements may vary depending on the investment vehicle selected.

Pros Check mark icon A check mark. No account or trading fees, and low fees to own funds Check mark icon A check mark. Access to Certified Financial Planners at no additional charge Check mark icon A check mark. Want a 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. Free stock, option, ETF, and cryptocurrency trades; 1.5% APY on uninvested cash Check mark icon A check mark.

Choose where to open your IRAThe first step is to choose what type of institution you'll open your IRA through. Select your IRA account typeThere are several types of IRA accounts to choose from. They work similarly to a traditional IRA: They're funded with pre-tax earnings and withdrawals are taxable in retirement. Some will send the money directly to your new IRA account. If you rollover funds to a traditional IRA, you won't need to pay taxes on the funds (until you start making withdrawals).

☆ What today’s retirees want future retirees to know
▼ + stars: | 2022-06-22 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +4 min

US retirees have some advice for their younger selves, and by extension anyone who has yet to retire: Save more. And don’t forget to account for taxes and inflation – they’ll hit you harder than you expect. Those are key takeaways from a survey of more than 1,100 US retirees by the Employee Benefits Research Institute, which was conducted this spring. Roughly half (49%) of all survey respondents said they wish they’d started planning for retirement earlier. Nearly half of the survey respondents (48%) said they didn’t understand how taxes would affect their finances in retirement.

Financial educator Soledad Fernández Paulino joined Insider for our Re/Thinking Re/Tirement Instagram Live event. On Monday, Insider hosted an Instagram Live event focused on early retirement with Soledad Fernández Paulino, a financial educator and founder of the blog Wealth Para Todos. Build a solid emergency fund"Before you start really investing aggressively, you want to make sure that you have an emergency fund. Traditionally, experts have advised that you keep three to six months of necessary expenses in emergency fund savings. "It depends on the financial security that you have in your life," said Fernández Paulino.

Persons: Soledad Fernández Paulino, Roth, —, Fernández Paulino, Roth IRAs Organizations: Financial, Service, IRA

Pros Check mark icon A check mark. IPO investing available Check mark icon A check mark. IRA accounts with 1% match; fractional shares and margin investing Check mark icon A check mark. Buy, sell, or store more than 170 cryptocurrencies like bitcoin and dogecoin Check mark icon A check mark. Educational investment resources, mobile access, digital storage, and customer support Check mark icon A check mark.

The app only offered an individual taxable investment account, but that wasn't what I needed. In a Roth IRA, I can keep whatever I put in, and whatever I earn, totally tax-free. For my goal of building long-term wealth, investing in an individual taxable investment account should probably be the last step on my financial priorities list. There's a time and a place for individual taxable investment accounts. But, while I'm saving for the long run, a Roth IRA has too many advantages to pass up.

I was encouraged to start saving for retirement at 24 because my job offered a 401(k) with a generous match. Pick a tax-advantaged retirement account that makes sense for your financial situation and goals, and set up automatic contributions. When it comes to retirement, saving something is always better than saving nothing, so don't be too hard on yourself if you haven't made it a priority until now. Pick a retirement account (or two)Get familiar with the features of each type of retirement account. She writes most frequently about saving money, planning for retirement, taxes, debt management, and strategies for building wealth.

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