MCGUIRE FINANCIAL SERVICES, INC

Have You Heard of the "Mega Backdoor Roth"? 📊 How it works: Make after-tax contributions to your 401(k) Convert those contributions to a Roth IRA or Roth 401(k) 2024 Limits: Standard 401(k) limit: $23,000 ($30,500 if 50+) Mega Backdoor potential: Up to $69,000 total ($76,500 if 50+) 🔑 Key Points: ✅ Bypasses Roth IRA income limits ✅ Allows for tax-free growth ✅ Not all 401(k) plans offer this choice ⚠️ Important considerations: Tax implications of conversions Impact on employer matching Your overall financial goals Current vs. future tax rates This post is not a replacement for real-life advice. Your tax professionals can help you learn more about the tax implications of a mega backdoor Roth. 🔍 Is it right for you? Check if your plan allows: After-tax contributions In-service distributions or in-plan Roth conversions ✅ Once you turn 73, you must take the required minimum distribution from your 401(k). Withdrawals are taxed as ordinary income and may be subject to a 10% federal income tax penalty if taken before age 59½. ✅ With a Roth IRA, to qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances. The original Roth IRA owner is not required to take minimum annual withdrawals. With a Roth 401(k), employer matching with pre-tax dollars is not distributed tax-free during retirement. If you’d like to learn more about Backdoor Roth IRAs or discuss your retirement strategy, feel free to message us. #RetirementStrategy #MegaBackdoorRoth #PersonalFinance

🚢 History meets modern technology in an incredible underwater discovery! The legendary ship Endurance, lost over a century ago during Ernest Shackleton's Antarctic expedition, has been found and filmed in stunning detail. 🎥 A new documentary showcases the ship's remarkably preserved state, with items like the ship's wheel still standing upright after all these years. It's a testament to human perseverance—both in Shackleton's time and in our modern quest for discovery. While we often focus on financial journeys, stories like this remind us of the value of pursuing our passions and the importance of resilience in the face of challenges. What forgotten treasures are you hoping to uncover in your life? 🌟 #HistoricalDiscovery #Endurance #Exploration https://lnkd.in/dAMBymQS

🔌 Does an electric car always save you money? We've heard from more clients asking about electric vehicles (EVs). So, we thought we’d share some of the pros and cons of EVs that you might not be familiar with: Pros: ➕ You may be eligible for a clean vehicle tax credit of up to $7,500 on a new car. But this incentive can change without notice, so you’ll want to consult your tax, legal, or accounting professional. 🔧 EVs have fewer moving parts, which can mean less maintenance. No more 3,000-mile oil changes! ⚡ Driving an EV costs only 3–5 cents per mile, compared to about 15 cents for gas cars. EVLife in April 2024 explained that that’s 3–4 times cheaper! Cons: 🏠 Home charging installation costs can vary widely: $300–$600 for essential equipment and over $4,000 for complex setups, according to 2023 research from Capital One. 🚗 Insurance alert: EV premiums can be higher. Policy prices depend on a wide range of factors, including the specific model. ⚡ Finding an open EV charging port may be challenging, depending on where you live and drive. Hope this was helpful! We help clients explore these types of decisions and integrate them into an overall financial strategy. Feel free to message! #ElectricVehicles #FinancialStrategy #EVOwnership

As we approach the 2024 election, it's interesting to consider how various market sectors might be influenced by the outcome: 1️⃣ Healthcare: Election outcomes can impact healthcare stocks due to potential policy changes. 2️⃣ Energy: Shifts in energy policy can influence both the traditional and renewable energy sectors. 3️⃣ Technology: Regulatory stances can sway investors' sentiments in this sector. 4️⃣ Infrastructure: Campaign promises might include infrastructure initiatives that can influence related industries. 5️⃣ Financial: Proposed changes in financial regulations can impact a wide range of financial institutions. While elections can lead to short-term sector fluctuations, it's important to maintain perspective. History shows that markets have grown over time despite periodic election-related volatility. Remember, your financial plan is designed for the long haul, not just the next election cycle. #Election2024 #MarketSectors #InvestmentStrategy #SectorAnalysis

Many of us rely on payment apps for convenience, but it's important to understand their limitations. While these apps make transferring money easy, storing funds in them might not be the wisest financial move. 📱 Did you know that money left in most payment apps isn't FDIC-insured? This means your funds could be at risk if something goes wrong. Plus, you're missing out on potential interest from high-yield savings accounts. Consider promptly transferring money out of payment apps. It's a simple step that can help protect your funds and potentially earn you more over time. Interested in learning more about maximizing your money's potential? Let's discuss strategies that align with your financial goals. 💼 #FinancialSafety #DigitalPayments #SmartMoney https://lnkd.in/gUzREEVK

🤔🤔 Ever thought, "If only I'd known how this would turn out, I would've done it differently"? Thought this decision-making hack from entrepreneur Uri Levine was pretty interesting: Ask yourself: "Knowing what I know now, would I do something different?" Levine focused on the importance of making tough decisions early, saying that many start-ups fail because leaders avoid hard calls, like fixing communication issues. At work, it might help you: 🤔 Decide if it's time to let underperforming assets go 🚀 Choose to take on a big change management project 🔄 Determine if you should implement a new technology system As a financial professional, there are times when I use this approach to guide my clients. Reflecting on what I know now helps me make aligned decisions for their financial futures. Bottom line: Insights from our experiences are invaluable. What decision are you facing right now? Maybe this approach can help you navigate it. #DecisionMaking #CareerGoals #PersonalGrowth

🚨Are major changes ahead for your estate strategy?🚨 With National Estate Planning Awareness Week just around the corner, it's the perfect time to examine your legacy strategy more closely, especially since some changes may be on the horizon. The Tax Cuts and Jobs Act (TCJA) of 2017 increased estate tax exemptions, but unless Congress acts, these changes expire at the end of 2025, according to a 2024 report from the Tax Foundation. ➡️ Here's what you need to know: 👉 2024 Exemption: $13.61M for individuals, $27.22M for couples. 👉 Post-2025: The exemption amount will revert to 2017 levels (adjusted for inflation). Why Act Now? With potential changes on the horizon, taking a proactive approach may put you in a better position to manage your estate in 2026 and beyond. 💡 Everyone should consider creating an estate strategy. A financial professional can monitor the landscape of estate law and keep you updated on the status of potential changes! #nationalestateplanningweek #estatestrategy #financialguidance

The latest inflation data presents a mixed picture for consumers. Overall, inflation dropped to 2.4% in September, marking a significant decrease. However, core inflation, which excludes volatile food and energy prices, remains elevated at 3.3%. While consumers saw relief at the gas pump with prices falling 4.1%, they faced increased costs at the grocery store, where prices rose by 0.4%. This gradual easing suggests the economy is finding balance. However, it's crucial to remember that personal financial strategies should adapt to changing economic conditions. Diversifying income sources and staying informed remain key to navigating these shifts. #Inflation #EconomicTrends #FinancialPreparation https://lnkd.in/eB6HKU35

Are you someone who owns an S&P 500 index fund? Perhaps it is part of your company-sponsored retirement plan. Keep this in mind: The S&P 500 has changed since 2023, with large-cap technology stocks playing a larger role in index performance. In fact, technology and financial stocks make up roughly 40% of the S&P 500, up from less than 15% in 2023, according to a July 2024 report in the Wall Street Journal. Tech stocks alone represent about 30% of the index! 🚀 🔍 Other Insights for the WSJ report: ➡️ Increased Sensitivity: The index is now more sensitive to interest rates due to its tech and financial stock concentration. ➡️ Global Correlation: There's a higher correlation with other global indexes, which some investors may be overlooking. ➡️ Implications for Diversification: The S&P 500 offers some diversification, but it may be more limited at this point. Remember, diversification is an approach to help manage, but not eliminate, investment risk if security prices decline. ➡️ Past Performance: The S&P 500 Composite Index is an unmanaged index that is considered representative of the overall U.S. stock market. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index. If the S&P 500 is part of your investment strategy, you may want to take a closer look at the index. Connect with us if you need help. #MagnificentSeven #financialprofessional

The Social Security Administration just announced a 2.5% cost-of-living adjustment for 2025. What does this mean for beneficiaries? 1️⃣ Average monthly retirement benefits will increase by about $50. 2️⃣ This is the lowest COLA since 2021, reflecting slowing inflation. 3️⃣ Over 72.5 million Americans will see this increase in their benefits. While this adjustment helps maintain purchasing power, it reminds us that relying solely on Social Security may not be enough for a comfortable retirement. Diversifying income sources and looking ahead remain crucial strategies. #SocialSecurity #RetirementPlanning #COLA2025 Source: https://lnkd.in/e2mEpvkU