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1. What Is a Roth Conversion? A Roth conversion is a financial strategy that allows you to move money from a Traditional IRA or other pre-tax retirement accounts into a Roth IRA. When you do this, you pay income taxes on the amount converted, but once the funds are in the Roth IRA, they grow…
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Roth IRAs are powerful tools for building tax-free retirement wealth, but the 5-year rules for withdrawals often trip people up. Let’s demystify these rules for both contributions and conversions, using common real-life scenarios for people at different stages — young professionals, mid-career savers, and retirees. What Are the Two 5-Year Roth IRA Rules? 1. The…
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If you’ve ever found yourself lying awake at night, your mind drifting from your golf swing to your golden years, you’re not alone. My husband, Mark, and I have entered that club. We’re the Robinsons: Mark, the ever-pragmatic former civil engineer; me, Leo, a now-retired graphic designer who finds solace in a messy pottery studio;…
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Timing your Social Security claim is one of the most impactful decisions you’ll make in retirement. Your choice affects not just your monthly income but your long-term financial security, tax liability, and even your spouse’s future benefits. This guide breaks down the key ages, factors, tax considerations, and real-life strategies to help you make a…
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Retirement is a milestone many of us look forward to—a time to relax, travel, and enjoy life without the constraints of a 9-to-5 job. But the big question is: Are you saving enough to retire comfortably? With rising life expectancies, inflation, and uncertain economic conditions, retirement planning has become more critical than ever. In this…
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When Linda retired at 62 after decades as a nurse, she expected bliss: no more 12-hour shifts, no more night calls, and finally, time to do whatever she wanted. But after a few weeks of sleeping in and catching up on TV, she felt something she hadn’t expected—boredom. “I thought I’d be thrilled,” she said.…
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When Jack and Linda Thompson retired at age 60, they felt cautiously optimistic. After decades of hard work—Jack as a civil engineer and Linda as a high school counselor—they had managed to save $1 million in retirement accounts. They lived in Springfield, Illinois, a charming mid-sized city with a reasonable cost of living—but yes, Illinois…
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If you’re over 50, retirement is no longer a distant concept—it’s a fast-approaching reality. Whether you’re planning to retire in five years or fifteen, asking the right questions now can help you avoid costly mistakes and build a future you’re excited about. Here are 10 essential questions to guide your retirement planning, along with real-life…
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Investing can feel like navigating a minefield – one wrong step and your hard-earned money could vanish. But understanding different investment vehicles is your map to safer travels. In this comprehensive guide, we’ll explore 18 investment options from the most volatile to the safest, complete with real-life stories of investors who learned valuable lessons the…
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Retirement is the most expensive thing you’ll ever pay for—more than a house, more than college, and definitely more than your dream vacation. One of the best tools to prepare for it is the Individual Retirement Account (IRA). But like any tool, it only works if you use it right. Unfortunately, many people make costly…