Have you ever put too much money into your Roth IRA and worried about possible penalties? Trust me, I’ve been there, staring at my account balance and wondering, “Can I take this back, or am I stuck paying that dreaded 6% penalty?” The good news is that you can recharacterize an excess Roth contribution, and … Read more
Though pensions come in two types—defined-contribution and defined-benefit—the most common type of traditional pension is the defined-benefit plan. During an employees working years, the employer contributes to the plan. (With a defined-contribution plan, the employee does, too. ) After the employee retires, they receive monthly benefits for the rest of their life from the plan. … Read more
Ever wondered if those assets transferred through a TOD designation count as inheritance? You’re not alone in this confusion. As someone who’s helped many clients navigate estate planning I can tell you this question comes up constantly. Transfer on death (TOD) designations offer a convenient way to pass assets to loved ones while avoiding the … Read more
It can be hard to deal with a loved one’s money after they die. One question I get a lot from grieving families is, “Can you get into a bank account without probate?” The short answer is yes, you often can — but only in specific situations After helping hundreds of families through this process … Read more
Key takeaway: Your 401(k) is part of your net worth, but its role in defining “high net worth” depends on liquidity and specific criteria. Hey there! I’ve been diving deep into personal finance lately, and one question keeps popping up in conversations with my friends and family “Is a 401(k) considered an asset?” It’s actually … Read more
As Franklin D. Roosevelt famously said, “Taxes are paid through the hard work of every labourer. ” So, when the opportunity to reclaim a portion of that effort arises – by taking 25% of your pension as a tax-free lump sum – it’s definitely an appealing option. However, choosing to take a large pension lump … Read more
Ever dreamed of waking up each morning knowing your investments are working for you – not the other way around? Living off your stock portfolio is the ultimate financial freedom goal for many investors. But the big question remains: exactly how much do you need to make this dream a reality? I’ve spent years researching … Read more
Life gets real when you hit 40. You’ve probably got a mortgage, maybe kids in school, and retirement suddenly doesn’t seem so far away. According to a 2024 Transamerica Retirement Survey, only 16% of Gen X workers feel very confident they’ll retire comfortably. If you’re part of that nervous majority, I’ve got good news – … Read more
All the rules you need to know about taking money out and converting it to another type of account. Part of the series What 50-Year-Olds Need To Know About Roth IRAs Roth individual retirement accounts (IRAs) come with many tax benefits, including tax-free withdrawals. However, to avoid a 10% early withdrawal penalty and owing income … Read more
As the Head of Financial Planning at Citizens Wealth Management, Jason is a strategic partner who creates the strategy, manages the planner teams, and coordinates personal financial planning activities across the company to help clients deal with and grow in new situations. Today, the average American retires at around age 63. But what if youre … Read more