Investing, Saving for Retirement
Daniel Patterson
Where to Save Money First?

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…

Where to Save Money First?
General Finance, Investing
Daniel Patterson
25 All-Time Great Books for Your Summer Reading ...

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.

25 All-Time Great Books for Your Summer Reading List (2020)
General Finance
Daniel Patterson
4 Financial Items to Review While in Quarantine

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…

4 Financial Items to Review While in Quarantine
Investing, Saving for Retirement
Daniel Patterson
What is an ETF?

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…

What is an ETF?
Investing, Employer Benefits
Daniel Patterson
Should I Contribute to a Roth 401(k) or a ...

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….

Should I Contribute to a Roth 401(k) or a Traditional 401(k)?

Investing

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What is a Mega Backdoor Roth IRA?

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What is a Mega Backdoor Roth IRA?

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!

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Five Ways to Increase Your Odds of Investment Success

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Five Ways to Increase Your Odds of Investment Success

Investing in the stock market, when done properly, can be a great way for individuals to put their money to work and begin to build wealth over time. Improper investing, on the other hand, can lead an individual to experience significant losses. While you cannot ever completely eliminate the possibility of investment losses, there are several things that you can do to greatly increase your odds of long-term investment success. Below, I’ve outlined five that I think are particularly valuable to the average investor…

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A Comprehensive Guide to Roth IRAs

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A Comprehensive Guide to Roth IRAs

Since first being introduced in 1997, Roth IRAs have become an increasingly popular retirement savings vehicle, and understandably so. There’s a lot to like about Roth IRAs, particularly for younger investors who can benefit the most from many of the Roth IRA’s features. While most people have at least heard of a Roth IRA, there tends to be a lot of confusion regarding the nuances and details of these accounts. This article is meant to clarify what exactly a Roth IRA is, what it isn’t, and why I think it’s a great place for investors, particularly younger professionals, to start saving money for retirement… 

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Backdoor Roth IRAs – Part 2 - Pitfalls to Avoid

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Backdoor Roth IRAs – Part 2 - Pitfalls to Avoid

The IRA Aggregation Rule states that when an individual has multiple IRA accounts (Traditional IRAs, along with SEPs and Simple IRAs), for conversion purposes, all of these accounts are considered one large account. In these cases, the individual cannot say that he/she solely wants to convert his IRA to a Roth from the nondeductible portion of his/her IRA accounts…

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Backdoor Roth IRAs – Part 1: An Introduction

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Backdoor Roth IRAs – Part 1: An Introduction

Roth IRAs have become an increasingly popular retirement savings tool for Americans, and rightfully so. The accounts grow tax deferred and, if held until 59 ½, the growth in the accounts can be withdrawn at a 0% income tax rate. Also, unlike its Traditional IRA cousin, owners of Roth IRA accounts do not have to…

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Connect with SFP:

Daniel Patterson, CFP
Sweetgrass Financial Planning
daniel@sweetgrassfp.com
(843) 608-0231