When we spend time in the office mapping out a long-term financial strategy, it’s easy for us to get buried in the mechanics — how much to move, what to withhold for taxes, how to structure the accounts to maximize tax efficiencies. These are all important considerations when it comes to protecting your capital.
It’s no secret that investing for retirement involves some level of uncertainty. Depending on your personality, that uncertainty may deter you from taking risk, or it may entice you to go big and chase a larger potential return.
Whether you filed your taxes on time or you filed an exemption, tax season is a great time to run a diagnostic review on where you’ve been in the last couple of years and what your tax situation looks like going forward.
In that spirit, I want to give you a few steps to zero in on your tax burden and help you find ways to be more efficient.
You’ve probably read that one of the Four Horsemen of relationship strife is money. Misalignment on money issues is one of the main problems that can sink a relationship if you’re not careful.
It’s no secret that many Millennials have had a rough go of it when it comes to the financial instability they have faced during much of their working lives. Between slow wage growth, multiple financial crises, and an inflated housing market, it’s been difficult for many to grow their wealth at a similar rate to their parents and grandparents.
For many young professionals, student loan repayment and saving for the future feel like opposing financial forces. On one hand, there’s the pressure to aggressively pay down debt. On the other, there is the desire — and need — to build a stable financial foundation for the future: emergency funds, retirement savings, buying a home, and more. The good news? You don’t have to choose one or the other. With the right strategy, you can make progress on both fronts.
I’ve shared tax filing tips before, but this year, I want to focus on one item in particular: IRA contributions.
What is an IRA?
An IRA (Individual Retirement Account) is a tax-advantaged retirement account that you fund independently of an employer-sponsored plan like a 401(k).
We say it all the time: You want to start thinking about your financial future as early as possible. But it can be difficult in your 20s, as you’re getting out of school, finding a job, and transitioning to being out on your own. It’s easy to set aside those early years when it comes to saving and investing, and, if that describes you, I completely understand.
Hiring a financial advisor is a very personal choice that lots of people have made to help them achieve financial success. But often I hear, especially from younger folks, that they’re waiting for the right time to start working with an advisor. Usually that “right time” involves having a certain net worth that they feel would make financial advice beneficial.
If you’ve been following our team for a while, you know that we talk a lot about what you can do to work toward financial freedom. Today I want to switch gears and look at what might be holding you back from that goal.
*Representatives are licensed to offer insurance and annuity products in AL, FL, GA, IL, IN, KY, MA, ME, MI, MO, NH, OH, SC, and TN and are licensed to offer investment products in AK, AL, AR, AZ, CA, CO, CT, FL, GA, IL, IN, KS, KY, LA, MA, MD, ME, MI, MO, MS, NC, NE, NH, NM, NV, NY, OH, OR, PA, SC, TN, TX, VA, WA, Washington DC and WV. This website and its content are not intended for residents of other states. Securities offered through: The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way, Cincinnati, OH 45242. 513.794.6794 Investment Advisory Services offered through The O.N. Investment Management Company. Estate Planning Services provided in conjunction with your licensed legal advisor.