Inflation is a topic that affects us all, and understanding its impact on our finances is crucial. Here, I'll shed light on the erosive nature of inflation and how it diminishes the true purchasing power of our hard-earned money. From the rising costs of cars and houses to the constant increase in prices, inflation is an undeniable force shaping our financial landscape. But don't worry, it's not all doom and gloom! I'll also share insights on how to navigate inflation and make it work for you. Remember, knowledge is power, and understanding inflation is a key step towards securing your financial future. #FinancialFreedom #InvestingTips #WealthBuilding #InvestmentStrategies #EmpowerYourFinances #InflationProtection #FinancialEducation
Keep It Simple Financial Planning’s Post
More Relevant Posts
-
Neuroscience-backed financial planner empowering individuals to become powerful wealth managers.
Money Won’t Make You Happy Financial independence is a wonderful thing. Being rich is even better. Building long-term wealth is life changing. But don’t expect any of these things to make you happy. The masses spend most of their lives worrying about money and imagining how life would be on easy street. They’ll tell you that money won’t make you happy, yet they secretly believe it will. They’re wrong, and mostly because they’ve never experienced it. Having money makes your life easier and more comfortable. It offers you opportunities you can’t get in any other way. But if you’re not happy without it, you won’t be happy with it. Paying off your school loans and credit cards is a great feeling, but the feeling is fleeting. Building your dream house is amazing, but after the excitement wears off, it’s still like any other house with bedrooms, bathrooms and a kitchen, only nicer. The most exhilarating moment of purchasing your fantasy car is the day before you pick it up. The fact is that emotional animals thrive on emotion, and while money can buy things that excite us, they rarely keep us happy. The happiest people are closely connected to others, such as friends and family, whom they travel through life together. The best strategy is to create your happiness before you create your wealth, and don’t expect your financial success to have any sustainable long-term impact on your level of fulfillment and happiness. Making your life easier and more comfortable are good enough reasons to chase wealth. It will allow you to live life on your terms and timeline. The rich live by their own rules, and money gives you the freedom to make them up as you go. Without wealth, you’ll always answer to someone who has it. With it, you’ll answer only to yourself. Choose the road that gives you the comfort to live and the freedom to chart your own course.
-
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
-
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
