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)?
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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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Using Roth IRAs to Save for College – The Pros and Cons

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Using Roth IRAs to Save for College – The Pros and Cons

Roth IRAs are a great, tax-efficient way for many families to save money for retirement, but can they also be useful in college education planning? Should you utilize a Roth IRA or a more traditional college savings account, such as a 529 plan, when saving money for your children’s college education? The answer is it really depends. If you’re absolutely certain that you want this money to be used to pay for your children’s education expenses, then it’s really hard to beat the tax-efficiencies of your state’s sponsored 529 plan. With that said, there are several interesting characteristics of a Roth IRA that could make it the superior option for some families…

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Inherited an IRA? Here’s What You Need to Know

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Inherited an IRA? Here’s What You Need to Know

When inheriting an IRA from a friend or family member, it is important to understand the special rules that apply to these accounts and the options that are available to you as a beneficiary. The decisions you make early on with inherited IRAs can have a significant impact on both the tax implications for you individually, as well as the lasting legacy that these inherited accounts create for beneficiaries…

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8 Year-End Tax-Saving Tips

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8 Year-End Tax-Saving Tips

December is here, which means that we are nearing the end of yet another tax year. This may be causing some of you to have visions of looming tax-bills instead of sugar plums dancing through your head. Fear not! Here are 8 tax-saving tips that you can do between now and the end of the year to possibly reduce your tax obligations for the year.  

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Employee Stock Options 101

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Employee Stock Options 101

Many companies today offer their employees the ability to purchase shares of stock in the company by granting stock options as a form of compensation. Stock options are beneficial to both parties, as it allows employers to attract and retain high-quality employees, while providing a nice additional benefit for employees. While stock options can be a great potential benefit, many employees are not very familiar with how they work. The goal of this article is to help you better understand what stock options are and how they work, what types of stock options there are, and how to maximize them for your benefit.

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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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Protecting Your Most Valuable Asset with Long-Term Disability Income Insurance

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Protecting Your Most Valuable Asset with Long-Term Disability Income Insurance

If I were to ask you to name the most monetarily valuable asset that you have, chances are I’d get responses such as “my home” or “my investment portfolio” or “my car.” While all of these could be considered an asset for you (cars generally less so), the reality is that if you are in your 20s, 30s, or 40s and still in the midst of your working years, your greatest asset is your ability to continue to earn a living in your profession….

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Connect with SFP:

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