COVID-19 left many people short on cash in 2020. Layoffs, furloughs and cut hours meant less income. As challenging and stressful as it is taking a pay cut, even a temporary one, there are some ways to use it to your advantage. If you experienced an income loss steep enough to knock you down a […]
Navigating a Backdoor Roth Conversion
A backdoor Roth conversion helps higher-income earners cut down on their tax burden when their income exceeds the limits of a traditional Roth. In a Roth, your money grows tax-free and you won’t pay taxes when you withdraw from your account later on. The backdoor conversion is a way to take advantage of the tax […]
Mega Roth Conversions
Mega Roth Conversions – The Basics If you want to get more money into a Roth IRA than what you can normally do, then you may want to think about doing a large, or mega, Roth conversion with after-tax money. This mega Roth conversion strategy could allow you to add an additional $36,500 into a Roth […]
3 Retirement Accounts for the Self-Employed
If you are self-employed or a contractor at a hospital, here are three accounts that you should consider setting up. Solo 401(k) or Individual 401(k) for the Self-Employed I like the Solo 401(k), also known as the Individual 401(k), because it offers the most flexibility. You get an employee and employer contribution totaling $55,000. Plus, there […]
What You Need to Know About Backdoor Roth Conversions
As Benjamin Franklin once said: “In this world nothing can be said to be certain, except death and taxes.” Franklin’s right. As an investor, you’ll be paying taxes. But there are strategies to reduce how much you’ll pay, and that can make a big difference in the size of your portfolio when you retire. In […]