Good Financial Reads: The Backdoor Roth IRA, Setting Smart Savings Goals, and More

3 min read
November 13, 2015


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Following along with the blogs of financial advisors is a great way to access valuable, educational information about finance — and it doesn’t cost you a thing! Our financial planners love to share their knowledge and help everyone regardless of age or assets.

Catch up on some of the latest posts with this week's roundup:


The Backdoor Roth IRA: How High Earners Can Get Tax-Free Money in Retirement

by Matt Becker, Mom and Dad Money

If you’re a high earner, you may have heard that you’re not allowed to contribute to an IRA.

That’s because the IRS places limits on who can contribute to a Roth IRA and who can deduct their contributions to a Traditional IRA. If you make more than those limits, you’re supposedly out of luck.

And you’d be justified in feeling like that’s a pretty raw deal. After all, you work hard for your money and you want it to work hard for you. And if you’re not allowed to contribute to an IRA, that’s up to $11,000 per year (for a married couple) that won’t get the special tax benefits an IRA offers.

Lucky for you, there’s a way around the rules.

[Read the Full Article]


Setting Smart Savings Goals

by Cathy Derus, Brightwater Financial

Now that you’ve compared your income and expenses to your values, it’s time to set specific goals that align with your values and vision. And it’s OK if these values and goals change over time. It’s better to start working towards a goal and need to pivot than do nothing at all.

For example, our major financial goal about five years ago centered around saving money for a 20% down payment on a house. After buying our first house, our financial priorities shifted towards financial independence so that we can spend more time with our family. The best definition I’ve read of financial independence comes from Matt Becker of Mom and Dad Money (he’s also a fee-only financial planner). He says financial independence is, “The freedom to make decisions based on what makes you happy instead of what makes you money.”

[Read the Full Article]


What To Do With an Inheritance

by Justin Rush, JGR Financial Solutions

According to a study by Accenture, $30 trillion of financial and non-financial assets is expected to pass from Baby Boomers to Generation X and Generation Y (Millennials) in North America over the next 30 to 40 years. If you’re like me, you have a difficult time trying to understand the magnitude of that number! However, I think we will agree there are significant opportunities and challenges associated with this level of assets being passed from one generation to the next.

So where should you begin if you find yourself as beneficiary of an inheritance? First, let me outline several things I think everyone should do when they receive an inheritance. Then’ I’ll share some practical financial planning strategies for you to consider.

[Read the Full Article]


Make Your Pesky Student Loans Disappear

by Aaron Hatch, Woven Capital 

Student loans are a drag. Many of us have no choice but to rely on student loans to help us get through school. We’re grateful for the bump in income that comes from higher education, but dealing with large student loan payments can be tough when trying to raise a family, build a career, and save for the future.

Dealing with your student loans is important if you want to build wealth and create a lifestyle you love. Taking the steps to optimize your students loan payoff can save you a lot of money in the end. Consider these five ideas as you work to pay down your student loans:

[Read the Full Article]