Financial professionals often discuss insurance with their clients because it is an essential component of comprehensive planning. While many people associate financial professionals solely with investments and planning for retirement, the reality is that insurance plays a crucial role in protecting and preserving wealth.

This article discusses the five reasons financial professionals discuss insurance with their clients during meetings and suggests specific insurance products.

Risk mitigation

One of the primary reasons financial professionals discuss insurance with their clients is to mitigate risk. Insurance products such as life insurance, disability insurance, and long-term care insurance can help safeguard against unexpected events that could...

Are you tired of living paycheck to paycheck, feeling like you never have enough money to cover your expenses and save for the future? If so, you're not alone. Many people struggle with transitioning from being a spender to a saver. However, with the right mindset and some strategic changes, you can transform your financial habits and start building a more secure future for yourself. Here are the steps to take toward this transformation.

Assess Your Current Situation

The first step in transforming from a spender to a saver is to examine your current financial situation carefully. This examination includes understanding your income, expenses, and debt by outlining your monthly payments, including bills, groceries, entertainment, and other discretionary...

Understanding what long-term care (LTC) entails is vital in formulating an appropriate care plan. LTC refers to services designed to help care for an individual's health or personal care needs for a short or extended period. These services assist people in living independently and safely when they can no longer perform everyday activities independently.

But for single individuals, the need for LTC services might be more imminent due to a lack of partner or immediate family support. Planning for long-term care (LTC) is essential to financial management and personal well-being.

Addressing this crucial need has become more pertinent with the ever-increasing healthcare costs and a growing aging population. This articles addresses the six steps singles must comprehensively...

The landscape of retirement savings in the United States is experiencing crucial changes following newly enacted legislative changes for 2024. These updates and reforms seek to enhance the flexibility of retirement savings accounts and transform how Americans save and prepare for retirement. Here are some of the more significant changes this year.

Contribution increase

One key 2024 retirement savings legislative update pertains to contributions into retirement plans such as the 401(k). The legislation introduces a significant increment in contribution limits, allowing Americans to save more for retirement. This change enables individuals to accumulate a more substantial retirement savings nest egg and allows them to manage their taxable income, given the...

Retirement is a time to enjoy the fruits of your labor. But even after you have stopped working, it's important to make sure your money continues to work for you. Investing wisely can help you maintain your lifestyle, protect your nest egg, and even leave a legacy for your loved ones. Here’s a straightforward five-step guide to help you navigate investing after retirement.

Step 1: Revisit Your Financial Plan

Financial planning is not just for building wealth—it’s equally important during the years you’re spending it. The economic landscape, marked by events like the pandemic and market fluctuations, can impact your retirement portfolio. It is wise to sit down with your financial advisor to review your investment portfolio. Make sure your investment...

When inflation increases, people often feel the sting of paying more for groceries, gas, and almost everything else. Many may feel inflation is terrible because their paychecks are shrinking, and they don't like paying more for the same items. But inflation also has positive benefits that may occur over time, such as:

Wages increase- Employers often increase wages for their current employees and new hires to attract and retain workers during inflation. For a period, inflation may increase job openings at employers with lower wages until they increase their wages too. Higher wages bring more money into the economy as workers have more money to spend.

Property values increase- Pre-existing homes, automobiles, and some investment strategies...

When working teens invest early in a Roth IRA, they can contribute to a strategy that could accumulate millions later in retirement. Working teens can contribute to a Roth IRA when a parent or grandparent opens the account. A Roth IRA can be opened at any age if a child has income. For example, if your five-year-old child was a model for a local store and received a paycheck in their name, the amount received can be contributed to a Roth IRA.

Working teens receiving W-2 income with a checking account in their name can have automatic contributions deducted and deposited into their Roth IRA. Or, if the teen doesn’t receive a W-2 for money from mowing lawns, babysitting, or other work, the income must be reported to the IRS through income tax filing to qualify for Roth IRA...

Regardless of the business's size, small business owners have 401(k) retirement savings plan options that may be suitable for their situation. Business owners must plan for retirement by utilizing retirement savings vehicles that may provide them with common IRS tax savings incentives when funding specific 401(k) options.

A business owner can open several retirement savings plan types if they're the only employee or have anywhere from two to 100 employees. As you work with your financial and tax professionals to determine which is appropriate for your small business, we outline what to know about each:

Solo 401(k)- A solo 401(k) is a retirement savings plan for self-employed business owners who want to maximize their retirement contributions. It's also...

With the cost of college expensive for many, receiving a tax break from the IRS for college-related expenses may be appealing. 529 Plans and Coverdell Education Savings Accounts (ESAs) offer tax-advantaged withdrawals when used for qualified expenses.

But for those seeking an additional tax deduction on their tax return, there are specific tax credits that students and their parents may qualify for. However, many tax credits come with rules, so you must work with your tax and financial professional to determine which applies to your situation. Here are the tax credits you may qualify for in 2023 or the future, pending no changes in IRS education expenses deduction rules:

1. The American Opportunity Tax Credit (AOTC)- This tax credit is for single tax...

Investing is a complex process that requires careful thought, strategy, and an understanding of various factors that could influence your portfolio's performance. Many investors understand the significance of market trends, economic cycles, and changing consumer behavior. However, politics is another The 401(k) plan is an excellent way for working Americans to save for retirement. For many, hitting the maximum contribution limit is a goal that many work toward to reap the benefits of saving tax-deferred. But what happens when you've maxed out your 401(k) contributions and want to continue saving for an independent and comfortable retirement?

Maxing out your 401(k) is a significant achievement toward securing an independent financial future. However, several other investment...