Good Financial Reads: Put Your Money to Work

Health Savings Accounts (HSAs): What You Need to Know

by Johnson Rhett, Branning Wealth Management

What’s the most tax-friendly financial account out there?

Is it the IRA? The 401(k)? Or maybe the good old taxable account? Each of these have their advantages, but Health Savings Accounts (HSAs) might take the prize! 

You may have heard that HSAs offer a triple tax advantage. But what does that really mean?

• Tax-Deductible Contributions – The money you contribute to an HSA is tax-deductible, which lowers your taxable income for the year, similar to a traditional 401(k) contribution. Additionally, if you contribute via payroll deductions, they’re exempt from FICA taxes (Social Security and Medicare).
• Tax-free growth – Any money in your HSA grows tax-free, meaning you won’t pay taxes on interest, dividends, or investment gains within the account.
• Tax-free withdrawals (for qualified medical expenses) – When you use HSA funds for eligible medical expenses, you do not pay any taxes on withdrawals, making it a powerful tool for covering healthcare costs. 

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I Love You, Roth

by Keith Spencer, Spencer Financial Planning

Who’s Roth? Not someone whose parents had financial acumen and wanted to be edgy by naming them after their favorite investment account. I am of course speaking about Roth accounts, both Roth IRAs and Roth 401(k)s. Why do I love them so much? Let’s go through 9 of the reasons.

They provide tax diversification.

There's a good chance most of your retirement savings are in a pre-tax 401(k) at work. Those are great because you get a tax deduction upfront when you make the contribution. That lowers your tax bill this year. The downside is that you have to pay income taxes on any withdrawals you make during retirement.

Roth accounts, on the other hand, don't give you an upfront tax deduction. But you can withdraw from them tax-free during retirement.

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Do ETFs Fit Your Investment Strategy?

by Michael Becker, CFA, CFP®, Toberman Becker Wealth LLC

Planning for retirement? A well-balanced portfolio is key to long-term financial security. ETFs can play a pivotal role in your portfolio, offering diversification and flexibility to match your goals. In this guide, we’ll explore ETFs, how they compare to other investments, and how they fit into a smart investing strategy.

Knowing your risk tolerance helps you choose assets that align with your future financial goals. While ETFs are just one option, they can provide an accessible and efficient way to grow wealth over time. In this article, we will define ETFs, compare them to stocks and bonds, explore different types, and discuss their advantages and disadvantages in a diversified portfolio.

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Treasury Inflation-Protected Securities: What Are TIPS?

by Alvin Carlos, District Capital Management

Inflation erodes the purchasing power of money over time, making it a major concern for investors looking to preserve wealth. One way to safeguard investments against inflation is through Treasury Inflation-Protected Securities (TIPS). These unique government-backed bonds are designed to maintain their real value by adjusting with inflation, providing a hedge against rising prices.

But how do TIPS work? Are they a good investment for you? In this comprehensive guide, we’ll explore the fundamentals of Treasury Inflation-Protected Securities, their benefits and drawbacks, and how they fit into an investment portfolio.

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