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Apache is functioning normally

May 21, 2023 by Brett Tams

A New Year, A Financial Lifeline?

How are you doing on your New Year’s resolutions and goals? Are you still on track? Many take no action and expect different results. Why do we keep doing the same things over and over and “hope” things will mysteriously “change”? Hope and change are more than words. They can win elections, but the proof is in the results. Are you getting the financial results you desire?

As finances affect almost every area of our lives, stewardship should be one of the areas that capture our greatest attention in the New Year. Yet as a portfolio manager and financial advisor for the past 16 years, I am finding this is the area most people neglect. They get “too busy” or “uninterested” or even “unsure” how to plan ahead.

With the troubled economy, many financial problems that were covered over during the prosperous times have now been exposed. It’s not difficult to survive when jobs are plentiful and credit is easy! However in today’s economy smart money moves are a hot commodity!

Now as important as it is to make wise decisions with your money, it is just as important to avoid the bad money mistakes. These money mistakes are what cause people to go deeper in debt, not save enough for retirement, and lose money in the stock market to name a few.

In 2011, this is your year to make things right! Out with the old and in with the new. If you’ve already started saving for your future, this is the year to supercharge your savings. If you haven’t started, well this is the year to start! In order to plan ahead, we have to make sure we have a plan to combat the four deadly forces that wreak havoc in our finances.

To Win The Battle, We Need A Game Plan!

To win at the money game, you will need to be aware of the dangers that lie ahead. You can never be bullet proof, but having plans in place can soften the blows that are sure to come. Let’s look at four problem areas that have the potential to blow up a financial plan.

Problem Area # 1: Ignoring Inflation

Inflation erodes your future purchasing power over time. $100,000 in 2011 will not buy less products and services in 2012, never mind twenty years from now Are equities the best investment choice during inflationary periods of the market? Quite often, the answer is “no.”

What about bonds? Think again! These usually do not do well either. So what’s the magic answer? When inflation appears, the assets that tend to perform the best are alternative investments such as private equity funds, real estate investment trusts and commodities. These may not only help you diversify your portfolio, but also help you fight the effects of inflation on your invested assets.

Interest rates are starting to rise and I believe hyper-inflation (high inflation) is right around the corner. As you invest, you’ve got to recognize the impact that inflation can have on your investments and plan accordingly.

We Are Planning Ahead Right Now!

At FaithBasedInvestor.com, we are loading up on investments that do well during inflationary periods:

• Precious metals: We will continue to hold investments that have inflation protection. Gold and silver should continue to be hot commodities.
• Agriculture: We will continue holding companies and investments that have exposure to the food industries.
• Energy: We will continue to hold and look for opportunities in the energy sector: coal, oil, and alternative energy solutions.
• Foreign Currencies: We will diversify our domestic exposure (US Dollars) by using foreign currencies like the Yen, Swiss Franc, and Aussie Dollar.
• Dividend Stocks: We will look to hold and seek out companies paying dividends. This will help us with cash flow and outpacing inflation.
• Inflation-Protected Bonds: We will continue to hold U.S. and foreign bonds that have inflation protection.

Problem Area # 2: Ignoring Investment Fees

Investment fees represent the second wealth killer. These fees can add up to thousands or even millions of dollars over decades of compounding. 401(k) management and administration fees, mutual fund fees, and annuity expenses wipe out investor’s wealth each and every year. The Department of Labor recently showed that even a 1% increase in your fees can wipe out as much as 28% of the value of your 401(k) over time. Also look at your mutual funds. The average cost of most funds is north of 3% annually! (1.6% average expense ratio and 1.4% SAI Fees) For more on fees check out this article on 4 reasons why mutual funds are lousy investments.

Problem Area #3: Ignoring Taxes

The big appeal of 401(k)’s and IRAs is the ability to defer taxes, right? However, with the United States’ $14 trillion worth of debt, which likely direction do you anticipate future tax rates will go? 401(k)s, IRAs, and annuities are ticking tax bombs! The biggest problem with deferring taxes is this:

Let’s say you are successful managing your investments and grow a HUGE nest egg. Congratulations, right? Yes, it’s great to have more money! However, at retirement age when you pull this money out, all that growth and your tax deferred contributions now become fully taxable ordinary income when withdrawn. Say you save $5,000 and it grows to $100,000. The entire $100,000 is fully taxable. At a 40% tax rate, that’s $40,000 in taxes! The government allowed you the initial tax deduction of $5,000 for $40,000 or more in the future. Not a bad deal FOR THEM!

Now don’t hear we wrong. I’m not saving you shouldn’t have any tax-deferred investments. I just wouldn’t put all your savings here. I would have a combination of tax-deferred, tax-free, and taxable savings. It’s simply hedging your tax exposure.

Problem Area #4: Taking Far Too Much Risk For Too Little Of A Return

Many people tell you to buy an index fund and hold it forever… Or take a look at mutual funds with good five and ten year track records and you will do great! Good in theory, bad in practice for most investors. If you put $100,000 into an S&P 500 index back in 2000, that would be worth about $114,000 – a gain of nearly 14% in the S&P 500 fund from January, 2000 to January of 2011. Wow! 14% for 11 years worth of a roller coaster! Was this little return worth all of those sleepless nights?

Instead choose investments that are in line with your faith and values and you know inside and out. Most investors hand off their money to “someone else”, be it a mutual fund, advisor, broker, or money manager, without understanding what they are investing in, how much risk they are taking, what values they are supporting, and how liquid or illiquid the investment is.

Make This The Year To Get Educated

Don’t just take my word for it. Do the research, do your homework! Make this the year you will read up on finance and start making wiser decisions. What are your thoughts?

Source: biblemoneymatters.com

Apache is functioning normally

May 21, 2023 by Brett Tams

Many people hit a period of financial hardship at some point in their lives. Maybe there’s a medical emergency and big bills, a job layoff, or a family member in serious need: These and other scenarios can put your money management in a precarious position.

Approximately 70% of Americans report feeling stressed about money, according to a CNBC/Momentive survey. This can be centered on anything from living paycheck to paycheck to worrying about saving for one’s (and one’s family’s) future.

Here, you’ll learn more about what happens when financial hardship hits and how to take steps to improve the situation, from applying for assistance to negotiating with lenders to discovering new sources of income.

What is Financial Hardship?

Everyone probably has their own definition of “economic hardship” that’s based on their own needs and wants. And the federal government has its own criteria for what counts as a “hardship” when it comes to taking an IRA distribution, looking for tax relief, or requesting a student loan deferment.

But generally, a financial hardship is when an individual or family finds they can no longer keep up with their bills or pay for the basic things they need to get by, such as food, shelter, clothing and medical care.

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Warning Signs

Sometimes financial difficulties can sneak up on a person, and catch them completely off guard. And sometimes, the warning signs have been there for a while, but were missed or ignored.

Identifying the root cause of financial distress can help give you a head start on working through your money issues. Here are some red flags that might signal a person is headed for financial distress:

Having Credit Card Balances At or Above the Credit Limit

While using credit cards may seem like a good way to get around a short-term lack of funds, the practice could lead to extra fees and a lower credit score. The percentage of available credit someone is using — known as a credit utilization ratio — can indicate to lenders how heavily they’re depending on credit cards to get by. And because it’s one of the major factors in determining a person’s overall FICO score (a credit score lenders use to determine whether to extend credit to a borrower), financial advisors typically recommend keeping card balances at or below 30% of the limit.

Juggling Which Bills Get Paid Each Month

It may be tempting to skip a payment from time to time, hoping to catch up eventually — but there can be short- and long-term consequences for juggling bills. Insurance coverage may be lost. There may be a late fee, or a bill could be turned over to a collection agency.

Utilities can also be shut off, and a deposit might be required to restart the account. Making late payments on a credit card could lead to a higher interest rate on the account. And late payments and defaults can hurt credit scores.

Only Making Minimum Payments on Their Credit Cards

It may be necessary to make minimum payments if times are especially tight, and there likely won’t be any short-term harm. But even if the cardholder stops making purchases, just the interest charged will keep the account balance growing, possibly extending the amount of time it takes to pay down that debt by months or years.

Often Paying Late Fees or Overdraft Fees

A one-time mistake may serve as an annoying reminder to be more cautious with money management, but if late fees, overdraft and non-sufficient funds fees, and overdraft protection transfers become a regular thing, they can add another layer of worry to a person’s financial burden. (Using alerts, automatic payments, and apps from your financial institution may offer a more effective method to track bills as well as deposits and withdrawals.)

Having a High Debt-to-Income Ratio

Lenders often use a person’s debt-to-income ratio — a personal finance measure that compares the amount of debt you have to your income—to determine if a borrower might have trouble making payments. If a person’s debt-to-income ratio is high, it could make it more difficult to borrow money, or to get a good interest rate on a loan.

Tapping Retirement Savings to Pay Monthly Bills

In certain cases, the IRS will allow an account holder to withdraw funds from a 401(k) or IRA to cover an immediate and heavy financial need (such as medical expenses, payment to avoid eviction or repair home damage) without paying the 10% early withdrawal penalty. But taxes will still have to be paid on those distributions. And taking that money now, instead of letting it grow through the power of compound interest, could have serious repercussions for the future.

Dealing with Financial Hardship

For those who’ve been struggling for a while, or who’ve had a sudden but substantial financial loss, it might feel as though they’ll never recover. But there are several options those who are experiencing financial trouble might consider taking to get back on track. Some they can do for themselves, while others might require getting financial hardship help from others. And while some might be temporary, others take a longer view. Here are a few:

Reducing Monthly Spending

Creating a monthly budget can help individuals and families prioritize and guide their spending decisions. This may involve prioritizing your monthly expenses, starting with the essentials and going down to the “nice to haves.” Once you’ve established which expenses are the most important, you may then be able to look for places to cut back or cut out of your budget altogether. Cutkacks may not feel fun, but they can help jump-start your recovery.

For example, could you cut costs if you cooked meals yourself more often? Are you trying too hard to keep up with what friends and family are spending on clothes, vacations, and cars? Are there monthly bills that could be reduced (could you save money on streaming services, internet, and phone services; manicures and other beauty treatments; or even rent, insurance, or car payments)? It may help to start by tracking expenses for a month or so to get an idea of where money is going, and then sit down and map out a more realistic path for the future.

Creating a Debt Reduction Plan

Along with a budget, it also may be useful to come up with a plan for paying down credit card balances, student loans and other long-term debt. It’s important to always make the minimum payment on all these bills, if possible, but a personal debt reduction plan could help with prioritizing which bill any leftover money might go toward after all the household expenses are paid each month — or the money might come from a tax refund, bonus check from work, or a gift. Knocking down debts that include high amounts of interest can eventually free up more cash to put toward short- or long-term savings goals.

Looking for Ways to Earn Extra Income

Is there a way to turn a hobby, skill, or interest into some extra funds? Maybe a favorite local business could use some part-time help. Or, if a second job is out of the question, perhaps a side hustle with flexible hours is a possibility. Writers, artists, and designers, for example, may be able to turn their talents into a side business. Babysitting the neighbor’s kids or running errands for an older person are also options. And, of course, on-demand services like Uber and DoorDash are employing drivers, delivery persons, and other workers.

Considering a Loan to Consolidate Bills

Getting a personal loan for debt consolidation won’t make money problems go away completely—but it might make managing payments a little simpler. With just one monthly payment (instead of separate bills for every credit card or loan) it can be easier to keep tabs on how much is owed and when it’s due.

Because interest rates for personal loans are typically lower than the interest rates credit card companies offer (especially if a rate went up because of late payments), the payoff process for that debt could go faster and end up costing less. (Generally, lenders offer a lower interest rate to those who have a higher credit score, borrowers who are already behind on their bills may pay a higher interest rate or have more trouble getting a loan.)

Student loan borrowers also may want to look into consolidating and refinancing with a private lender to get one manageable payment and, possibly, save money on interest with a shorter term or a lower interest rate.

Refinancing may be a solution for working graduates who have high-interest, unsubsidized Direct Loans, Graduate PLUS loans, and/or private loans.

Federal loans carry some special benefits that private loans don’t offer, including public service forgiveness and economic hardship programs, so it’s important for borrowers to be clear on what they’re getting and what they might lose if they refinance.

Notifying and Negotiating

Ignoring credit card payments and other debts won’t make them disappear. Borrowers who can clearly see they’re headed for financial trouble may wish to notify their credit card company or lender and try to work out a more manageable payment arrangement. (There are debt settlement companies that will do the negotiating, but they charge a fee for their services.)

A credit card issuer may agree to a reduced, lump-sum payment or a repayment plan based on the borrower’s current income, or it may offer a hardship program with a lower interest rate, lower minimum payments, and/or reduced penalties and fees. The options available could depend on why a customer fell behind, or if they’ve had problems before.

Financial hardship assistance is sometimes offered by mortgage lenders. Because these lenders generally don’t want their borrowers to foreclose on their homes, it’s in their best interest to work with borrowers when they get in trouble. The lender may be willing to help the borrower get caught up by forgiving late payments, or they may change the interest rate of the loan or lower the payment.

If you have federal student loans and are experiencing financial hardship, you might qualify for a special repayment plan, such as pay-as-you-earn, or an income-based repayment plan.

It can also be helpful to reach out to service providers (such as water, electricity, internet) and let them know you are experiencing financial difficulties. Providers may be willing to work with you and you may be able to come to an agreement well before any shut-off actions go into effect. This can also save you from late fees, or going into collections.

Getting Financial Help

There are also a number of government programs designed specifically to help people overcome sudden financial hardships. Those who’ve lost a job may be entitled to unemployment benefits. If that job provided health insurance, you may want to look into COBRA to see if you can maintain affordable health insurance. Those who were injured at work may be entitled to workers’ compensation.

Also, some people facing financial hardship may qualify for state or federal benefits like Medicaid or Social Security Disability.

Though not free, a financial professional who specializes in planning, saving, and investing may be a worthwhile investment. He or she may be able to offer a fresh perspective and help create a path to financial freedom. There may also be free or low-cost debt counselors available via non-profit organizations.

Preparing for Current and Future Challenges

Once you’ve developed your personal plan for overcoming financial hardship, you can begin working on your goals of becoming more financially independent. If the cause of your hardship is temporary (you were out of work but quickly found a new job, for example), it may take just a few months to get back on your feet. If the problems are more difficult to overcome (you’ve lost income through a divorce, or you or a loved one has an ongoing medical condition that requires expensive treatment), the timeline could be much longer. Once you’ve put your plan in place, you may want to review it on a regular basis, and perhaps do some fine-tuning.

The Takeaway

Many people go through periods of financial hardship, and often for reasons that are beyond their control. But that doesn’t mean they are out of options. There are many simple and effective steps people can take. Cutting monthly expenses, consolidating debt, and getting outside assistance are moves that can help them get back on the right financial track.

Ready to get your finances organized? You also may find it easier to track expenses and stay on budget by separating your money into virtual buckets or “vaults.” SoFi Checking and Savings is an online account that features Vaults to allow members to set aside money for different financial goals, track their progress, as well as set up recurring monthly deposits. What’s more, a SoFi Checking and Savings account offers a competitive annual percentage yield (APY) and charges no account fees, plus you can spend and save in one convenient place.

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Source: sofi.com

Apache is functioning normally

May 21, 2023 by Brett Tams

The discussion yesterday about how to earn money when you’ve lost your job got me thinking about ways to earn extra income outside regular employment. None of these are quick fixes, but they’re ways to generate cash in your spare time.

Get a Second Job

A second job can be an excellent way to earn extra money if you have the time and energy. Why have a second job?

To pay off your debt
To build up your savings
To get more experience
To ease into a career transition

Real-life example: In 2000, I took a second job programming computers. For several months, I was working sixty hours a week. I’ve never been so flush with money in all my life. Too bad I was a spendthrift back then — it was all wasted on computer games, comic books, and Magic cards.

Become a Consultant

Earlier this year, Andréa wrote a guest entry about becoming a consultant to defeat debt quickly:

“Consulting” may sound intimidating. It’s really just a fancy word for someone who trades their knowledge and expertise for pay. Every time you make a suggestion, recommend a process, draw up a plan or manage a process, you’re using consulting skills. To get into consulting, you just need to find someone who can use your expertise.

Read more advice about how to become a consultant at Andréa’s site.

Real-life example: After I decided that computer programming was not for me, I set up a small computer consulting business. I designed web pages, maintained networks, and repaired computers. Though I didn’t have much work (I never pursued the business as much as I could have), my hourly pay was the highest it’s ever been in my life.

Earn Money From Your Hobbies

If you’re like most people, your hobbies cost money. They may cost lots of money. For example, I used to spend hundreds of dollars for new camera lenses just so I could take better photos of my cats. Is there a way to turn your hobby into a money-making proposition? Even if you make just a little cash, you can help offset your costs. Here are some more ways that you can use your hobbies to bring you wealth.

Real-life example: After spending a fortune on lenses and camera equipment, I’ve actually been able to make a little money on my hobby. The $750 I’ve generated from prizes and sales is peanuts compared to what I’ve spend on the hobby, but it’s a start.

Make Money Online

Wait. Didn’t I just write that blogging is no way to get rich quick? Absolutely. But blogging can be a way to supplement your income. If you have subject that you’re passionate about, and if you like to write, a blog can let you earn extra money from your expertise.

But blogs aren’t the only way to make money online. You could open an online store. You could sell things on eBay. Here’s a list of 10 ways to make money online from Web Worker Daily.

Real-life example: This blog.

Sell Stuff

A final way to earn some extra cash fast is to sell things. Look in your closets. Check your bookshelves. Walk out to the garage. See all that junk? How much of it do you actually use? Couldn’t you borrow books from the library when you need them? When was the last time you played Mario Kart 64? Wouldn’t you feel better if your house were less cluttered?

As long as you don’t try to sell it all at once, it doesn’t take much time and effort to sell your used stuff to generate some extra cash.

Sell your most valuable items on eBay. (My eBay tips.)
Consider selling certain specialty items to specific stores: sell your used CDs to a music store, your used Nintendo stuff to a game store, etc.
Use Craigslist to sell bulky items, or to get rid of stuff that just won’t sell. (My Craigslist tips.)
Hold a garage sale to purge everything else. (Our annual garage sale is just a month away — I can’t wait.)

Real-life example: Once or twice a year, I sell extra stuff I’ve accumulated. Each year at our garage sale, I make about $300. Every couple years, I sell more valuable items on eBay. Last year I made $1500 for a few hours of work.

Use Your Extra Money Wisely!

What should you do with the extra money you earn using these techniques? Put it in a high yield savings account, establish an emergency fund, pay off debt, and then save for retirement!

Source: getrichslowly.org

Apache is functioning normally

May 20, 2023 by Brett Tams

By Jeff Rose Leave a Comment – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited March 2, 2013.

The Roth IRA conversion is still in effect. If you have been by my blog, you have probably seen that I have written numerous articles talking about the Roth IRA conversion. For 2010 there was a lot of hoopla about it, so I wanted to make sure that my readers and my clients had a good understanding to see if it actually made sense for them. The big questions going forward are, “Can you still do it? What is the tax treatment?” and “Does it make sense?” This post will answer these questions and explain the Roth IRA conversion rules of 2011.

Can You Still Do A Roth IRA Conversion?

Yes, you sure can. Prior to 2010, there was $100,000 adjusted gross income limit as far as those who could actually do the conversion.That means if you made more than $100,000 per year, you were on the outside looking in and couldn’t partake. In 2010, they lifted those limits to where anyone and their brother can now do the Roth IRA conversion. What also made 2010 a bit more special is the IRS allowed a special tax treatment to where you could defer the tax payment over a three-year period. Going forward that is no longer the case.
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Please keep that in mind. In 2011, you can still do the conversion, but any tax that is owed is due in that year specifically, so you cannot defer for a two-or-three-year stretch. What does that mean exactly? That means whenever you convert, come April 15 of the following year when you actually file your taxes, that is when you pay the tax on the conversion amount. The “conversion amount” is the value of the account the day that you actually convert.

How Do You Pay The Taxes?

Another question I get is, “What is the tax I pay?” or “How does that work exactly?” or “What is my basis from the conversion because I have been investing in my IRA for 15 years? How do I know?” The tax calculation is actually pretty simple. Your new basis becomes the amount that you actually convert. It doesn’t matter how much you invested 15 years ago. What matters is what is the value today of the IRA when you convert.

Let’s say you invested $10,000 inside that IRA. It’s now worth $45,000. The day that you convert, if it is worth $45,000, that is how much you would add as income for the year you convert. That will then determine what tax bracket you fall under and how much the appropriate tax will be. Pretty simple, but I would strongly suggest meeting with a tax professional or sitting down with your financial advisor just to make sure that you’re clear on what the tax consequence is for you and also see if it makes sense.

What If You Have Multiple Accounts?

Another common question I get is, “I have all of these IRAs and 401Ks. If I only want to convert some, how does that work?” Remember, if you have an IRA at a brokerage firm, if you have an IRA at a bank, if you have IRAs spread out everywhere, the IRS looks at all your IRAs as one. So, if you’re only trying to convert a small portion of that, that is okay, but the big factor that comes into play is if you have a nondeductible IRA. Meaning that, if you contributed to traditional IRAs after taxes so you didn’t get that tax deduction, the IRS is not going to just let you convert the nondeductible IRAs. You are going to have to pay some type of prorated tax on that amount. That, I confess, does get a little bit confusing. If you go my post that discusses the Roth IRA conversion tax rules, it outlines a couple different scenarios that can walk you through to see how much you’d have to pay with those taxes.

One last point on the IRS and how they view IRAs all as one; keep in mind the other option of converting it is not just IRAs but old 401Ks or any type of old retirement account. As far as the aggregate total, the IRS does not look at the 401K as part of that sum. So if you have some IRAs that maybe you don’t want converted and you don’t want that to be used into the conversion calculation, if you have the ability to roll those IRAs back into an old 401K or into your current 401K you can do so. Just another neat little trick that some people may or may not know, so hopefully that is helpful.

Does A Roth IRA Conversion Make Sense?

Lastly, the big question that I always get, and I’ve got this probably at least a thousand times this past year, “Does the Roth IRA make sense for me?” Here’s the thing; it depends. Call that the cop-out answer, but honestly it truly, truly depends. I have analyzed and analyzed several different clients who were interested in doing the Roth IRA conversion. It didn’t make much sense for them mostly because they couldn’t allow the growth tax fee with the Roth to really be a benefit to them or they didn’t have the cash to pay for the tax out of pocket. Those are my two requirements if you are actually going to do the conversion. You want to be able to pay the tax out of pocket. You don’t want to pay for it out of the account. That basically defeats the whole purpose of doing the Roth IRA conversion. Those are a couple things to consider.

I hope that answers your questions regarding doing a Roth IRA conversion. As you can see it, it’s not as straightforward as one would think. Be sure to seek the counsel of a professional before you pull the trigger. But even if you do pull the trigger, rest assured that you can also do a “take back” and undo a Roth IRA conversion by doing what’s called IRA recharacerization. Just remember that if you choose to reverse it, you have to do so before a certain deadline.

Source: biblemoneymatters.com

Apache is functioning normally

May 20, 2023 by Brett Tams

Till Death Do Us Part. When a couple join in holy matrimony, there are many new discoveries awaiting them. When it comes to their finances, there are potential to be some added benefits: joint checking accounts for consolidated record keeping, joint tax filing status, and lastly; the ability to contribute for a non-working spouse to contribute to their IRA. Ahhhh….isn’t marriage bliss? There are special rules and restrictions that apply to spousal contributions to IRAs that should also be considered when selecting an IRA for your family. Here we look at some of those rules to help you make an informed decision regarding your IRA account.

Disclaimer: While as tempting as it sounds, I would not suggest that a young couple elope just to be able to have access to a spousal IRA 🙂

Rules for spousal contributions.

There are a few basic rules to consider if you will be making contributions to your spouse’s IRA. For the year that you are making contributions, you must meet the following criteria:

Married to your spouse at the end of the tax year.
Spouse earned taxable income for the tax year.
File a joint federal income tax return.
Your taxable income must be less than that of the owner of the IRA.

It is also important to remember that the contribution limits are subject to change therefore it is important to remain up to date with IRS tax limits regarding maximum contributions that both you and your spouse can make to an IRA each year.

Spousal IRA Contributions

In order to contribute to an IRA you must have taxable income. This includes wages, commissions, bonuses and self employment income. This would generally rule out contributions made to an IRA from a non-working spouse, however that is not the case. Spousal contributions can be made to an established IRA from a spouse using the compensation income of the working spouse. This can be beneficial for stay-at-home parents or non working spouses who wish to contribute to retirement savings. In 2010 the contribution limits for the non-working spouse under the age of 50 was $5,000 for the tax year. This is in addition to the $5,000 their working spouse could contribute, equaling a total of $10,000 in possible savings. If you are 50 years of age or older, you can contribute an additional $1,000 per year in “catch up” contributions.

Taxation of Spousal IRA Contributions

Spousal contributions are taxed just as owner contributions. This will depend on the type of IRA account to which you are contributing. With a traditional IRA, all or most of your contributions can be considered a tax-deduction if you meet certain income requirements. While this is a great tax benefit at the time of contribution, it is important to remember that distributions from the traditional IRA will be subject to taxation. Contributions made to a Roth IRA are not considered tax deductible and will be subject to income taxes when you file your federal income tax return. While the tax benefits are not immediately realized, you will not have to pay further taxes when you take qualified distributions.

As you can see there are several factors to consider before deciding which type of IRA is right for you and your family. Once the decision is made, rest assured that you and your spouse are taking the necessary action to ensure a financially secure retirement. And if you haven’t told your significant other that you love them in a while, here’s your chance 🙂

This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

Source: goodfinancialcents.com

Apache is functioning normally

May 20, 2023 by Brett Tams

A year may seem like a short period of time, but you can accomplish a lot, including developing a one-year savings plan that can help you hit some significant financial goals. A plan that lasts 365 days can give you, as an earner, the opportunity to save and feel a sense of accomplishment.

In other words, a year from today, you could be richer than you are now, or potentially have a better emergency fund. Or, if you are diligent, you may be on your way to funding a European vacation or finally redoing that dated bathroom.

Of course, creating a plan that will work for your unique situation does require a bit of upfront effort. That’s exactly what you’ll learn when you read on.

Decide What are You Saving For

Before you even glance at your budget, it’s important to get clear about exactly what you’re saving for. Creating a specific objective can give you the information you need to create a solid plan to make it happen — it might also help motivate you to stick to that plan once you’ve made it.

cost of living to settle on something that will likely be achievable in just a year. For instance, maybe this year you want to stash cash for one of the following:

• A vacation you’ve been dreaming of for years (pending pandemic complications, of course).

• A down payment for a new car.

• A down payment (or significant portion thereof) for a new home.

• Long-awaited home improvements.

• Putting extra money away for retirement.

You may be familiar with the idea of SMART goals — that objectives are most easily met when they’re Specific, Measurable, Achievable, Relevant and Time-bound.

In the world of one-year savings plans, that means coming up with a specific dollar figure for your goal and making sure it’s relevant enough to your life to keep you motivated.

You probably also want to consult your earnings and expenses to ensure that it’s a realistic goal; it’s going to be a lot harder to save up $5,000 if you’re making $30,000 than it is if you’re making $60,000. (You’ll learn more about budgeting and cuts in just a second.) Divide your total goal by 12 to see how much it would require you to set aside each month, which will give you better insight as to how achievable it really is.

Once you’ve got your goal worked out, write it down and post it in a prominent place in your home, like on your refrigerator. Studies have shown that you’re more likely to reach your financial goals if you take this simple action, so it’s worth picking up your pen!

How To Create a One-Year Saving Plan You’ll Stick To

Now that you’ve got a goal in mind, you still need to figure out how to turn it into a reality.
Here are some ideas on how you could do it..

Start with Your Existing Budget

You can’t make any big changes to your finances if you don’t know what they look like in the first place. And that means the first step toward revamping your budget is to take a closer look at how it looks right now.

If you don’t have a budget yet, take a month to track exactly where all your money is going. Be sure to include both regular, fixed expenses, like rent and insurance, as well as more flexible, discretionary spending like food and transportation. Be brutally honest. Tacking every cent of fixed vs. variable expenses will give you the best chance at figuring out how to spend less.

Which leads us to our next step…

Get Creative with Budget Cuts

There are really only two ways to save money: make more of it, or spend less of it. And while asking for a raise or starting a side-hustle might be smart moves, you only have so much leeway with your boss and time in your day. In other words, you likely have more control of how much you spend than how much you earn.

Since this is an elevated, short-term savings goal, you might be able to make more substantial cuts than you would if you were planning on implementing this savings strategy for the rest of your life. There are simple ways to cut down monthly expenses and save money daily. For instance, could living without streaming services be possible? Or could you quit dining out for one month and then vow not to buy any new clothes the next? A challenge like that can engage some people’s competitive spirit.

Even without these measures, how can you dial down your own living expenses? You might quit buying overpriced, pre-packaged convenience foods or find ways to get creative with ramen. Maybe you can start doing your own oil changes rather than taking the car in for service. Think of this as an opportunity to learn some new life skills while also stashing some extra cash!

Recommended: How to Save Money on Gas

Regardless of how you get there, your goal is to be able to set aside the monthly amount you’ll need to meet the one-year savings goal you wrote down and pinned to your bulletin board. So get out your calculator, and don’t be afraid to get creative.

Ready for a Better Banking Experience?

Open a SoFi Checking and Savings Account and start earning 1% APY on your cash!

Make a Plan for Your Investments

No matter how much money you save, it won’t go as far as it could if you just stash it under your mattress. Figuring out where to put your savings is an important step in your planning.

Different kinds of savings accounts are used to help individuals save for different goals.

• For example, a long-term goal like retirement may be best suited for an investment vehicle like a Roth IRA, which offers some tax advantages.

• For shorter term goals like starting an emergency fund, an account that offers more flexibility and has less restrictions, like a high yield savings account, may be a better option.

Keep it Simple

Having a plan is one thing. Sticking to it is another. But if you keep a simple savings plan, you’ll stand a much better chance of actually making it work.

automating your finances by setting up recurring transfers can direct a portion of each paycheck into your savings account. This makes saving seamless — and ensures you don’t get stuck in that all-too-familiar situation at the end of the month where you accidentally spent what you intended to set aside.

And building in systemic cuts that you don’t have to think about (like ditching that monthly subscription box, for example) is a lot easier than poring over the coupon book every Sunday.

Recommended: Money Management and Setting Financial Goals

The Takeaway

Like any money goal, your one-year savings plan is going to take some grit to get to. But having the right tools at your disposal does make the process a whole lot less painful. Whether that means choosing one of the many budgets out there to find one that suits your style or using an app your financial institution provides, there are ways to enhance your money management.

A SoFi Checking and Savings Account offers you an easy birds’-eye view of your finances, and its Vaults feature allows you to set aside savings for specific goals and purposes.

Best of all, there are no account fees, you’ll benefit from a competitive annual percentage yield (APY), which can help your money grow faster.

SoFi: Helping you achieve your financial goals.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Source: sofi.com

Apache is functioning normally

May 20, 2023 by Brett Tams

Investment advisors help investors figure out their goals, create financial plans, and put those plans into action. There are a lot of them out there, too, meaning that finding the right professional for you or your family may seem daunting. But finding the best investment advisor for you can be a fairly painless process.

You’ll need to start with some basics, though, by learning the difference between an investment advisor and a registered investment advisor, what to look for when you hire an advisor, and more.

What Is an Investment Advisor?

An investment advisor is an individual or company that offers advice on investments for a fee. The term itself — “investment advisor” — is a legal term that appears in the Investment Advisers Act of 1940. It may be spelled either “advisor” or “adviser.”

Investment advisors might also be known as asset managers, investment counselors, investment managers, portfolio managers, or wealth managers. Investment advisor representatives are people who work for and offer advice on behalf of registered investment advisors (RIAs).

What Is a Registered Investment Advisor (RIA)?

A registered investment advisor, or RIA, is a financial firm that advises clients about investing in securities, and is registered with the Securities and Exchange Commission (SEC), or other financial regulator. While you may think of RIAs as people, an RIA is actually a company, and an investment advisor representative (IAR) is a financial professional who works for the RIA.

That said, an RIA might be a large financial planning firm, or it could be a single financial professional operating their own RIA.

An RIA has a fiduciary duty to its clients, which means they must put their clients’ interests above their own. The SEC describes this as “undivided loyalty.” This is different from non-RIA companies whose advisors are often held only to a suitability standard, meaning their recommendations must be suitable for a client’s situation. Under a suitability standard, an advisor might sell a client products that are suitable for their portfolio but which also result in a sales commission for the advisor.

RIAs generally offer a range of investment advice, from your portfolio mix to your retirement and estate planning.

What’s Required to Become a Registered Investment Advisor?

The following steps are required to become a registered investment advisor (RIA).

• Pass the Series 65 exam, or the Uniform Investment Adviser Law Exam, which is administered by the Financial Industry Regulatory Authority (FINRA). Some states waive the requirement for this exam if applicants already hold an advanced certification like the CFP® (CERTIFIED FINANCIAL PLANNER™) or CFA (Chartered Financial Analyst).

• Register with the state or SEC. If an RIA has $100 million in assets under management (AUM), they must register with the SEC — though there are sometimes exceptions to this requirement. If they hold less in AUM, they must register with the state of their principal place of business. This requires filing Form ADV.

• Set up the business. These steps require making a variety of decisions about company legal structure, compliance, logistics and operations, insurance, and policies and procedures.

How to Choose an Investment Advisor

Finding the right investment advisor is about finding the right fit for you. While personal preference plays a part, there are a variety of other things you might consider when you’re searching:

Start Local

Look to helpful databases of financial professionals that can help you pinpoint some advisors in your area. Here are a few to consider:

• Financial Planning Association. Advisors in this network are CERTIFIED FINANCIAL PLANNERS™ (CFP®s) and you can search by location, area of specialty, how they’re paid and any asset minimums that may exist.

• National Association of Personal Financial Advisors. All advisors in this database are fee-only financial planners, meaning they receive no commissions for selling products.

• Garrett Planning Network. All advisors in this network charge hourly.

Get Referrals

One of the best ways to find a financial professional is to ask friends, family, and acquaintances if they’ve worked with someone they can recommend. While there are ways to build wealth at any age, it may be beneficial to ask people who are in a similar financial situation or stage of life. For instance, if you’re relatively young with a lot of debt and very little savings, you may not want the same investment advisor who’s working with wealthy retirees.

Ask About Credentials

Ask investment advisors what certifications they have, what was required to get the certification, and whether any ongoing education is necessary to keep it. Some certifications require thousands of hours of professional experience or passing a rigorous exam, while others may only require a few hours of classroom time.

Other certifications are geared toward investors at a specific life stage or with specific questions. The Retirement Income Certified Professional (RIPC) certification, for instance, focuses on retirement financial planning. Those with a Certified Public Accountant (CPA) certification are probably good sources for tax planning.

Check Complaint History

Depending on who oversees the advisor or the firm, you should be able to check whether there are complaints on record. If FINRA provides oversight, you can research them on FINRA’s BrokerCheck tool. If the SEC oversees them, the SEC has an investment advisor search feature to find information on the advisor and the company. Remember: One complaint might not be a red flag, but multiple complaints might give you pause.

Find Out About Fees

Investment advisors may be paid, or charge fees, several different ways. They may charge a percentage of assets under management, meaning that the fee will depend on the assets they’re managing for you. For example, if the fee is 1% of assets under management and you’re having them manage $500,000, you’d pay $5,000 annually for their services.

Others may charge an hourly fee or a flat project fee for specific services. There are also advisors that are paid commissions from the products that they sell to clients. It’s important to understand how an investment advisor makes money and how much you’ll pay in fees each year, and then decide what you’re comfortable with.

Get Details on Their Work Style

Communication and working style may be just as important as credentials and expertise. For instance, how often do they want to meet with you? Would you be working with them directly or with a wider team of people? Do they like to communicate via phone call, email, or text? This is something else to consider.

Take a Test Drive

Many advisors will offer a phone consultation or in-person visit to see if you’re a good fit. You may want to take them up on it. Finding the right investment advisor is as much a matter of chemistry as credentials.

Questions to Ask an Investment Advisor Before Hiring Them

It can be a good idea to find out as much as possible about an investment advisor so you can make an informed decision. Here’s a list of questions you might want to ask:

• What are your qualifications?

• What type of clients do you typically work with?

• Are you a fiduciary?

• How are you paid? And how much will I be charged?

• Do you have any minimum asset requirements?

• Will you work with me, or will members of your team work with me?

• How (and how often) do you prefer to communicate? (Phone, email, text?)

• How often will we meet?

• What’s your investment philosophy?

• What services do you provide for your clients?

• How do you quantify success?

• Why would your clients say they like working with you?

The Takeaway

An investment advisor can help you think about investing for the future, plan to save enough for all your goals, and understand how to get it all done. Finding one isn’t hard, but it does take time and some research to connect with an investment advisor that meets your expectations and feels like a good match.

With that in mind, getting the right advice can be critical even before you start investing. Someone with experience in the markets helping guide you can be invaluable.

Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

For a limited time, opening and funding an account gives you the opportunity to win up to $1,000 in the stock of your choice.

SoFi Invest®
The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results.
Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).

2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.

3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
Claw Promotion: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.
SOIN0523030

Source: sofi.com

Apache is functioning normally

May 20, 2023 by Brett Tams

By Peter Anderson 5 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited December 21, 2010.

A few weeks ago I published my post called “75 Frugal Gifts You Can Give For Christmas“. The post was an extensive list of frugal gift ideas, gifts that people could buy or make for their loved ones, but not break the bank. One of my favorite gift ideas from the list was one that in my opinion is good for more than just one year, it is the gift that keeps on giving. What was it? The gift of stock.

When I wrote the post I was thinking of somehow buying a single share of stock or giving them a check to open a brokerage account or something along those lines. In the end the idea lacked something because it wasn’t very easy to implement, and it didn’t allow for the type of investing that I would prefer to do, via index funds.

A couple of weeks ago I found the answer to how you can give someone the gift of stock, but a bit easier. And it came from one of my favorite brokerage companies, ING ShareBuilder (review) . They also have one of my favorite bank accounts, ING Direct Online Savings (review)!

ShareBuilder Gift Of Stock

ShareBuilder released something this year actually called the “Gift of Stock“. Basically it’s everything you need to start investing included in the package. Who would this be a good gift for? A friend or family member that might need that boost to start investing, or it can be a great teaching tool to help your kids get interested in saving for the future.

Here are the contents of the package from ING:

$50 ShareBuilder Gift Card. Help friends and family start their own stock portfolio at ShareBuilder or become an investor yourself. The gift card is redeemable when opening a new ShareBuilder Individual, Joint or Custodial account, giving you or the gift recipient the chance to start off with $50 in their account. ShareBuilder has no account minimums.

Five Free Automatic Investment Plan Credits. Free trade credits allow you, friends or family to start building wealth. ShareBuilder’s Automatic Investment Plan allows investors to set up recurring investments with a dollar amount they can afford.

Five-part video series from The Motley Fool. Picking stocks can be easier than you think. The Motley Fool’s How to Buy the Right Stocks for Your Portfolio video series can help you develop the right financial portfolio for your financial goals.

It’s really that easy. When they get the package they can setup a new account at ING ShareBuilder, redeem their gift cards for $50 of stock and 5 free automatic investment plan credits, and start investing!

Gift Of Stock Price Drop!

Originally this gift of stock was retailing for $45 on the ING store, but as of this week the price has dropped to only $25. So get in on this hot deal now! You could even buy it for yourself to get started investing you want to! You’ll get a return for your money right out of the box since you get $50 in ShareBuilder credit for only $25!

Here’s my unboxing video of my own “Gift of Stock” package. Click to watch and see everything that’s included inside.

Want to open your own ShareBuilder account? Open your account here.
(Get a $50 account bonus with promo code: 50ws10)

Source: biblemoneymatters.com

Apache is functioning normally

May 20, 2023 by Brett Tams

If you’ve been around the blog, I’m sure you’ve noticed that I’ve written much on the Roth IRA 2010 conversion event. It’s been getting a ton of buzz as many are eager to enjoy the tax-free benefits of the Roth IRA. As with anything, just because your neighbor is doing it, doesn’t mean you should. We took a closer look at some of the unforeseeable consequences of the Roth conversion and uncovered some potential pitfalls that you may have if you convert without knowing all the facts. Another important issue for parents who have children going to college soon is the impact that a Roth conversion can have on your kid qualifying for financial aid. Tax free is nice for down the road, but converting too much could leave you with a hefty tuition bill.

Benefits of the Conversion

As of now, you won’t pay any taxes for any money in the Roth. And if you’re a believer that taxes having a greater chance of going up then down, then why not pay the tax now and enjoy tax-free growth later on? Another benefit pertains to estate planning. Seniors that reach 70 1/2 are not required to take out their required minimum distributions in a Roth and if they never use the money; can pass the money on to their heirs, tax-free.

Roth Conversion and Your FAFSA

There’s no “if’s”, “and’s”, or “but’s” about it, a conversion is what is its and that “is” taxable. Many forms of scholarships, grants, and loans are based on household income. In the event, you do a sizeable conversion, you’ll see your AGI rise and the financial aid office take a closer look.

The dollar amount you convert must be reported on your FAFSA (Free Application for Student Aid). Here’s a definition of the FAFSA form straight from their site:

The Free Application for Federal Student Aid (FAFSA) is the form used by the U.S. Department of Education to determine your Expected Family Contribution (EFC) by conducting a “need analysis” based on financial information, such as income, assets and other household information, which you (and your parents if you are a dependent student) will be asked to provide. The form is submitted to, and processed by, a federal processor contracted by the U.S. Department of Education (ED), and the results are electronically transmitted to the financial aid offices of the schools that you list on your application.

FAFSA is the application used by nearly all colleges and universities to determine eligibility for federal, state, and college-sponsored financial aid, including grants, educational loans, and work-study programs.

Bottom line, it’s all about the Benjamin’s and how many you have of them. If your AGI is higher because of a sudden increase due to a conversion, it could mean less financial aid to pay those tuition bills.

A New York Times article offered an example. Take a hypothetical family of four with a total 2010 income of $75,000 and one college student. For every $10,000 of taxable income stemming from a Roth conversion, the parents’ expected annual contribution to that student’s education would go up by $3,200 in a FAFSA estimate.¹

Financial Aid Looks at More than One Year

When it comes to your income, financial aid considers more than just one year. As you know (or you will now), the default election to pay the tax on the conversion is to defer this year (2010) and split the remaining portions 50/50 over 2011 and 2012 tax years. Essentially, doing a conversion today could affect your chances of financial aid well until 2013.

What if Your Kids Are Young?

Then regarding college and financial aid, it shouldn’t matter. Now that still doesn’t mean that a Roth conversion is right for you.

The potential long-term benefits of a Roth IRA conversion are considerable. Double check with your financial advisor or tax professional to see if the decision is appropriate before you elect to make the move.

Citations.

¹ bucks.blogs.nytimes.com/2010/04/16/how-a-roth-i-r-a-conversion-can-hurt-financial-aid/ [4/16/10]

Source: goodfinancialcents.com

Apache is functioning normally

May 20, 2023 by Brett Tams

Investing / Real Estate

Nes / iStock.com

If you’ve gone house hunting over the past couple of years, you know how competitive the market is. In some cities, it’s not unusual to see 30 or more bids on a single home due to heavy demand and limited inventory. Now there’s yet another layer of competition involving millennials, baby boomers and mortgage rates.

Those two generations are colliding as millennials enter their prime homebuying years and boomers look to spend their senior years in different regions and homes. The result is that they are competing for many of the same homes in many of the same markets, The Hill reported.

“With the rise of remote and hybrid work and constraints on housing affordability, millennial homebuyers are embracing the suburbs and even small towns — locations which have traditionally been the refuge of retirees,” Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors (NAR), told The Hill in an email.

But in a challenging housing market with high prices and strict lending guidelines, boomers hold two big advantages: They have more equity built up from previous home purchases, and they have higher incomes. This gives them a leg up on millennials in terms of paying for steadily rising mortgage and borrowing costs.

“Boomers are not downsizing and millennials — first-time buyers in particular — are buying later in life. This puts both generations of buyers in head-to-head competition for similarly sized properties,” Lautz said.

One reason boomers are not downsizing their homes — and in some cases are buying homes of equal or bigger size — is that they are working longer. Many Americans are continuing to work well past their 60s as a way to “phase into retirement,” according to a recent USA Today column from Grace Sutherland Smith, executive director of AgeWell Middle Tennessee.

Florida’s Retirees Are Fleeing: Here’s Where They’re Going Instead

Boomers made up the largest share of homebuyers in 2022 at 39%, according to NAR data. That was up from 29% in 2021. In contrast, millennials saw their share fall to 28% in 2022 from 43% in 2021, when they occupied the biggest slice of the market.

Boomers tended to be repeat buyers in 2022, according to Lautz, which means they already had equity from previous homes to increase their purchasing power.

Rising mortgage rates have added to the competition between millennials and boomers. During the COVID-19 pandemic, the average rate on a 30-year fixed-rate mortgage fell as low as 2.67%, according to Federal Reserve data. That made it easier for young buyers to afford a home. Today, the rate has ballooned to 6.39%.

High rates make it especially tough for buyers without much equity because they have to make smaller down payments.

“If they are to rely on a mortgage for their next purchase, they are going to want to wait until rates are lower than they are today,” KPMG economist Yelena Maleyev told The Hill. “If they plan on paying all-cash, they are not as affected by higher mortgage rates and can provide a more enticing offer than a first-time buyer.”

Retirement Savings: Here’s How Much Money Millennials Should Have To Retire by 2045
Real Estate Transfer: Baby Boomers Secure Generational Wealth by Transferring Property to Children

An increase in available homes would go a long way toward fixing the problem — for both millennials and boomers. That’s happening, though at a slow rate. Housing starts in April rose 2.2% to a seasonally adjusted annual rate of 1.40 million, The Hill reported, citing Census Bureau data. Much of the gain was due to a 5.2% increase in multifamily units under construction, although the number of new single-family homes is also increasing.

More From GOBankingRates

Source: gobankingrates.com

A New Year, A Financial Lifeline?

To Win The Battle, We Need A Game Plan!

Problem Area # 1: Ignoring Inflation

We Are Planning Ahead Right Now!

Problem Area # 2: Ignoring Investment Fees

Problem Area #3: Ignoring Taxes

Problem Area #4: Taking Far Too Much Risk For Too Little Of A Return

Make This The Year To Get Educated

Related Posts

What is Financial Hardship?

Ready for a Better Banking Experience?

Open a SoFi Checking and Savings Account and start earning 4.20% APY on your cash!

Warning Signs

Having Credit Card Balances At or Above the Credit Limit

Juggling Which Bills Get Paid Each Month

Only Making Minimum Payments on Their Credit Cards

Often Paying Late Fees or Overdraft Fees

Having a High Debt-to-Income Ratio

Tapping Retirement Savings to Pay Monthly Bills

Dealing with Financial Hardship

Reducing Monthly Spending

Creating a Debt Reduction Plan

Looking for Ways to Earn Extra Income

Considering a Loan to Consolidate Bills

Notifying and Negotiating

Getting Financial Help

Preparing for Current and Future Challenges

The Takeaway

Get a Second Job

Become a Consultant

Earn Money From Your Hobbies

Make Money Online

Sell Stuff

Use Your Extra Money Wisely!

Can You Still Do A Roth IRA Conversion?

How Do You Pay The Taxes?

What If You Have Multiple Accounts?

Does A Roth IRA Conversion Make Sense?

Related Posts

Rules for spousal contributions.

Spousal IRA Contributions

Taxation of Spousal IRA Contributions

Decide What are You Saving For

How To Create a One-Year Saving Plan You’ll Stick To

Start with Your Existing Budget

Get Creative with Budget Cuts

Ready for a Better Banking Experience?

Open a SoFi Checking and Savings Account and start earning 1% APY on your cash!

Make a Plan for Your Investments

Keep it Simple

The Takeaway

What Is an Investment Advisor?

What Is a Registered Investment Advisor (RIA)?

What’s Required to Become a Registered Investment Advisor?

How to Choose an Investment Advisor

Start Local

Get Referrals

Ask About Credentials

Check Complaint History

Find Out About Fees

Get Details on Their Work Style

Take a Test Drive

Questions to Ask an Investment Advisor Before Hiring Them

The Takeaway

ShareBuilder Gift Of Stock

Gift Of Stock Price Drop!

Related Posts

Benefits of the Conversion

Roth Conversion and Your FAFSA

Financial Aid Looks at More than One Year

What if Your Kids Are Young?