Articles - Financial Planning

Backdoor Roth IRA Contributions: An Awesome Opportunity for High-Earners

The Roth IRA is one of my top three favorite types of accounts for retirement savings due to the many long-term tax benefits Roth IRAs provide. Unfortunately, contributing directly to a Roth IRA isn’t available to everyone. If you either don’t have enough earned income or your income, in general, is too high, you will not be able to contribute directly to a Roth IRA. For those of you high-income earners who make too much, there is a nice little planning workaround to consider.
Sustainable Investing

Sustainable Investing: Impact the Planet Using Your Retirement Portfolio

With all of the talk these days about climate change and what can be done, as a society, to lower our greenhouse gas emissions, I want to dive deeper with you into sustainable investing and what it might look like for you to invest sustainably. If you’re at all concerned with the evidence in favor of climate change that you’ve been seeing in the news lately and you are investing for retirement (which, if you’re a LifeSighted blog reader, you know you should be doing!), it’s worth understanding what sustainable investing is, why you should be investing sustainably, and how to go about investing sustainably.

Selling vs. Renting: Should I Sell My House or Rent It Out? A Financial Planner’s Perspective

Maybe you’re moving into a bigger house to fit a growing family, maybe you want to downsize, or maybe you’re relocating for work. Luckily, you’ve done such a good job planning that you have plenty in savings to cover the move and don’t have to sell your current house. Now you’re at a crossroads, though. What should you do — sell your house or use it as a rental?

5 Financial Planning Tips to Turn Your Small Business Income into Personal Wealth

People have many reasons for why they would want to start their own business — following passions, creating a better work/life balance, choosing the people they want to work with (or for), just to name few. The motivation I hear most often, though, is that they want the control over their own destiny and income that owning a business provides (whether that business is a “side hustle” or their full-time source of income).

7 Pandemic-Proof Fundamentals of Personal Finance

“A goldfish grows to the size of its bowl!” This commonly known adage is used to encourage people to expand their horizons by widening their self-limited beliefs. However, the true reason that goldfish in a tiny tank stay small is lesser known. Goldfish are “indeterminate growers,” meaning they grow for their entire lifetimes. The determining factors for how large or small a goldfish develops relates to the health conditions within the tank…

I Want to Buy a House – How Much Can I Afford?

Regardless of whether you rent or buy, housing is likely to be one of the largest expenditures you will have over your lifetime, second maybe only to taxes. Obviously, paying your tax bill feels a whole lot worse than paying your mortgage, which is why we all do our darnedest to minimize our tax liability. Still, making the right housing decisions can have just as much of an impact on your finances, and as a result, other areas in your life too.

The 2018 Tax Reform & How It Impacts You

As many of you know, there have been a lot of changes to the tax code under the Tax Cuts & Jobs Act that will affect everyone to some extent. Most of these changes are taking effect this tax year (2018) and will last until 2025, at least, so I thought it would be helpful to highlight a number of the changes here just in case you wanted to get started on your tax planning early this year (and you should)!

Human Capital: Why It’s Important and How You Can Improve Yours

Dealing with a lot of clients in or nearing retirement, I would get a lot of questions about whether or not they had a large enough portfolio (or financial capital) to maintain their lifestyle throughout their retirement years. Once they understood what they had and then what their budget was, they were fairly comfortable with the process of receiving a “paycheck” from their investments and didn’t worry too much about their investment returns.

Traditional vs. Roth 401k: Which is Best for You?

Roth 401(k) and 403(b) accounts first hit the retirement plan market in 2006, but have only recently been more widely adopted by employers as an offering to their employees. While potentially another great option for you to save more for retirement, choosing between a Traditional and a Roth 401(k) adds yet another decision for you to make in your financial life. So together, let’s decide which is right for you.

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