Many of us want to save and invest more, but with so many options available to us, such as our 401(k)s at work, IRAs, ESPPs, 457(b) plans, etc., it can sometimes be hard to figure out the order of where to save money first. If you can relate to this, then this blog is for you…
In honor of it almost being summer time, I decided to compile a list of the 25 all-time great investment/financial planning/business related books that I’ve read over the years. There should be something for about everyone on this list.
If you’re anything like me, social distancing is beginning to make you a little stir crazy. While we’re waiting for this coronavirus to calm down and everything to go back to normal, here are three financial items that would be helpful for you to review while you’re stuck inside…
Exchange Traded funds (ETFs) have become an increasingly popular investment option over the last couple of decades. There is now over $4 trillion worth of assets that are invested in ETFs worldwide. The largest and oldest ETF, the SPDR S&P 500 (SPY) has nearly $237 billion in assets and is consistently one of the most highly traded securities in U.S. exchanges. In spite of this, I’ve found that many investors are still kind of confused on what exactly an ETF is. Many times, they’ve heard about them, but are still kind of fuzzy on the details of how they work…
If your company provides both a Roth 401(k) and a Traditional 401 (k) option to you at work, which one should you contribute to? I know most of you would prefer a clear-cut, definitive answer, but unfortunately it’s not quite that easy or straightforward. Rather, the right choice can vary greatly from person to person and depends heavily on the particulars of your personal financial situation….
A Mega Backdoor Roth IRA strategy could be a great option for individuals who have maxed out all of their other tax-advantaged accounts, but still want to save more money for retirement in a tax-preferred manner. For those that are eligible (more on this in a bit), the Mega Backdoor Roth IRA strategy could allow you to contribute up to $37,000 to your Roth IRA per year, with no income limitations. If your spouse is also eligible to contribute to a Mega Backdoor Roth IRA, then the strategy would allow you to contribute up to $74,000 cumulatively as a couple to your Roth IRAs per year!
Daniel Patterson, CFP
Sweetgrass Financial Planning
daniel@sweetgrassfp.com
(843) 608-0231
