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.
One of the great things about my job is that I get to walk with clients through some of the biggest milestones of their lives, whether it’s getting married, having children, or retiring. We’re not just celebrating these achievements — we’re using the opportunities to dig in to how they affect the person’s finances and to help set them up for success moving forward.
We believe that those of you who have been working with us at Family Financial Partners for a while likely feel well-prepared for a fun and relaxing summer. Many of you have saved for the vacation, have your legal documents in order, are adequately insured, and have a plan for fall tuition. We’ve reviewed your financial strategies together and know what we need to do to keep you on the right path.
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