Keep It Simple Financial Planning

Why were the markets extra volatile last week? Could be something called "carry trades." In this video, we'll discuss how carry trades impact investors and market fragility. #japan #investing #stockmarket #marketvolatility

Simple Market Update Ep. 2: Dollar Cost Averaging vs. Lump Sum Investing

Thinking of clocking in even after you clock out of your main gig? Working in retirement can be a game-changer for your finances. 💰📈 Good news first: your Social Security benefits are calculated using your highest 35 years of inflation-adjusted earnings. Working longer could bump up those numbers and increase your benefits! So, it's not just about the dollars you earned decades ago. Inflation-adjusted dollars count, thanks to the Social Security Administration. 🙏 But beware: extra income could also mean extra taxes and potential surcharges on benefits like medicaid. 🚫 Make sure you weigh the pros and cons before picking that post retirement opportunity. #SocialSecurity #inflation #retirementplanning

What's the difference between a Traditional IRA and a Roth IRA? 🤔 💰Traditional IRA, you don't pay taxes when you put your money in but you must pay taxes at your ordinary Federal & potentially State tax rate when you withdraw 💰Roth IRAs, your taxes were deducted from your income prior to when you initially contributed to your account, but once in there and invested, they can grow as well as be withdrawn tax free. How you use either account depends solely on what you predict your tax situation will be when you retire. Use Traditional IRAs if you expect to be in a lower tax bracket in the future and Roth IRAs if you expect to be in a higher one. But of course, always consult with an expert financial advisor before making these sort of important decisions with your retirement income. #retirementplanning #personalfinance #taxplanning

Think the money in your 401k or IRA is all yours? Think again! 🙅 Taxes deferred today will catch up with you in retirement. 📈 The government will eventually collect their share when you start making your Required Minimum Distributions (RMDs). RMD age is shifting! It was 72, but thanks to the Secure Act 2.0, it's now 73 for those born between 1951 and 1959, and 75 if born in 1960 or later. What does this mean for you? 🤷 Your tax rate in retirement will determine how much of that 401k or IRA you really get to keep. So, plan wisely and get to know your after-tax retirement picture BEFORE you actually retire. #rothira #401k #taxplanning

🤔 Is Social Security being held back? The Social Security trust fund is invested in secure government bonds, ensuring stability but limiting growth potential. However, some propose harnessing the power of American industries by allocating a portion of the fund to the S&P 500. 📈 Historically, the S&P 500 has delivered an average annual return of around 10%, albeit with fluctuations. One proposal suggests investing approximately 40% to 60% of the trust fund into equities, professionally managed like an index fund. This approach could potentially enhance sustainability and reduce the need for tax increases. What do you think? Comment below if you feel the possibility of offsetting taxes is worth the increased risk of investing in index funds. 👇 #taxplanning #retirementplanning #personalfinance

One of the primary proposals to increase the longevity of Social Security is through a tax increase. As a self-employed individual, you pay both the employee and employer portions, totaling 12.4% of your income up to $160,200. That's about $19,865 in Social Security taxes annually. One proposal is to increase Social Security taxes on income above $400,000 reinstating the 12.4% for self-employed and 6.2% for W2 Employees. By doing so, individuals with higher incomes would contribute more, potentially addressing the issue. However, Not many people make this kind of money. 😞 Therefore, I don't think this is the best solution to our problem. Follow for more insider info in the world of finances, taxes and retirement planning. #taxplanning #retirementplanning #personalfinance

When looking at health insurance planning prior to Medicare qualified age of 65, we need to think about more than just saving on health insurance in the short term. Since health insurance cost is tied directly to the client's income, by keeping income lower, we can typically keep health insurance lower. However, that may not always be the best financial move from a holistic tax planning perspective. For example, if we have a saturation where the client will pay $100 more monthly for health insurance but now they can complete a Roth conversion at a lower tax bracket today than they'll be in the future, the extra insurance cost today may be more beneficial to pay than the clients future tax rate on an IRA distribution. Why not book a free consultation to see just how powerful professional financial guidance can be for you? Click the link in my bio. 👆 #taxplanning #retirementplanning #personalfinance

The Social Security system isn't perfect. 🙅 One way it falls short is when they make mistakes with your earnings records. With the Social Security benefits being calculated using your top 35 earning years, any mistake when calculating this can lead to losses in your lifetime Social Security income. It's entirely possible for you to end up with ‘Zero Years' where nothing is recorded or lower earnings where you end up losing large amounts of your Social Security benefit because of this fault in their records. 😫💸 This is why it's always a great idea to work with a professional financial advisor. They can protect your retirement income from issues like this and help you find the solutions you need. Why not book a free consultation to see just how powerful professional financial guidance can be for you? Click the link in my bio. 👆 #taxplanning #socialsecurity #personalfinance