By adjusting how you allocate your savings for retirement, you are able to benefit the greatest from two of the most popular savings strategy plans, 401(k)s and IRAs. We suggest a savings strategy that is designed to maximize your after-tax return and investment flexibility. For more on savings strategies and how to determine the best amount to contribute, read this Financial Strategy.
For most high-income earners, the decision to make an IRA contribution is a personal one. One significant benefit of contributing to a Traditional IRA is the tax-deferred growth; however a significant drawback is the growth portion of future distributions is taxed as regular income. For the benefits and drawbacks of IRA contributions for high-income earners, read this Financial Strategy.
Legislation in Georgia has made credit freezes an effective and economical way to curb identity theft. Credit freezes lock your credit records so that no one other than you can establish new credit in your name. For more on credit freezes and how they differ from fraud alerts, read this Financial Strategy.
Your identity can be stolen in many obvious places, such as businesses you patronize, your mailbox or directly from you. It is virtually impossible to eliminate the risk of identity theft. For more information on how thieves may potentially obtain your information and how you can minimize your risk of becoming a victim, read this Financial Strategy.
One of the many ways to pay for a college education is a Section 529 Prepaid Tuition Plan. This plan allows you to lock in tuition at the current rate. One caveat to this plan is that it is considered a parental asset, causing a dollar-for-dollar reduction in financial aid eligibility. For a detailed comparison of the advantages and disadvantages of a prepaid tuition plan, read this Financial Strategy.
In order to enjoy that new car smell, you will likely have to make a decision on how to finance the purchase of that car. Preparing yourself by understanding your different finance options will benefit you in this process. For more information on comparing finance options offered by dealers, leasing companies or your local bank, read this Financial Strategy.
If you are retiring and hold a significant amount of your company’s stock in your qualified retirement plan, you can choose to elect a special tax treatment for the distribution called net unrealized appreciation. Before you make this election, you’ll need to compare your tax liability on the distribution to future tax costs. For more information on this strategy, read this Financial Strategy.
If you’re faced with a bankruptcy situation, there are federal laws in place that protect your assets held inside qualified retirement plans such as a 401(k) or an IRA. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 extends some of these safeguards. For more information on how much is protected by these laws, read this Financial Strategy.
Everyone knows about death and taxes, and if your estate is large enough, sometimes they go hand in hand. Estate tax is the transfer of property from one individual to another at the time of death. For more information on how estate tax is derived and the deductions and credits available to reduce the gross estate, read this Financial Strategy.