Sage Wealth Planning LLC

Are you thinking about the duration until which you need your money that is invested? #financialplanning

"All Roth is not All Right.” While contributing to a Roth IRA has its undeniable benefits, it's crucial to recognize that it might not be the right fit for everyone. ▪ Flexibility is Key: Having a mix of pre-tax and post-tax retirement savings provides flexibility in managing your tax liability during retirement by allowing you to pull funds from different types of accounts that have different tax treatments. ▪ Tax Savings Today: Roth IRAs are funded with after-tax dollars, meaning you don't get an immediate tax deduction. If you're in a high tax bracket now but anticipate being in a lower one during retirement, contributing to a Roth might not optimize your tax advantages. ▪ Strategy Diversification: Due to the different tax treatments, different accounts can have different investment strategies. Having different types of accounts allows you to accomplish diversification efficiently. Remember, there's no one-size-fits-all solution in financial planning. It's essential to align your strategy with your unique circumstances and future aspirations. *This for educational purposes only, and is not intended to be specific financial advice*

To sell or not to sell? For those who participate in Employer Stock Purchase Plans (ESPP), November and December are common months for the plan to vest. You then have a decision on what to do with the stock that has just become yours. ▪ Do you sell right away? ▪ Do you hold to get favorable tax treatment? ▪ Do you wait until the stock is at a more favorable price to sell? Read more about maximizing the ESPP benefit, and considerations once vested below. https://lnkd.in/gJjM8YjS *This for educational purposes only, and is not intended to be specific financial advice*

What is a Donor Advised Fund?   A Donor Advised Fund (DAF) is a charitable investment account. The main benefit of a DAF is that you get credit for the charitable contribution in the year of contributing to the account vs. when the money is given to the charity. Instead of donating directly to a charity, the donor sets up an account managed by a custodian. Although the custodian maintains the account, the donor can decide where and when to donate the funds. Donors can be individuals, families, or organizations. Unlike other donations, the donor can decide to release DAF grants to IRS-qualified charities later but get tax deductions when they make the contributions to the account. A DAF can be a great way to reduce taxable income if you are charitably inclined, as it allows you to “bunch” your contributions. For example, let’s say you give $10,000 a year to a local charity. If you have a high-income year, you could gift $50,000 to the DAF, take the deduction, and then distribute the $10,000 a year from the DAF. Source: Guide to Donor-Advised Funds and Their Tax Benefits (moneygeek.com) *This for educational purposes only, and is not intended to be specific financial advice*