The Motley Fool

JANUARY 27, 2025

The program is staying afloat by draining money from its trust funds, but it can't do that forever. But cuts remain a possibility if the government doesn't find a way to increase the program's funding. A recent Congressional Budget Office (CBO) report indicated the trust funds would be depleted by 2034.

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The Motley Fool

SEPTEMBER 28, 2024

Image source: Getty Images HSAs (health savings accounts) are the unsung hero of personal finances. These accounts allow people with qualifying high-deductible insurance plans to set aside $4,150 for single plans and $8,300 for families out of pre-tax dollars. Once you hit age 55, you can add another $1,000 per year. Here's why.

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The Motley Fool

MAY 31, 2024

But consistently saving and investing in a tax-advantaged retirement account like a 401(k) or IRA can set you up to be able to spend much more later in life. Here's how much the average retiree has in their retirement accounts The Fed's survey of consumer finances asks for details on all sorts of retirement accounts.

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The Motley Fool

MARCH 19, 2025

Six decades ago, his fledgling fund acquired the struggling textile maker Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Amazon Amazon, the world's largest e-commerce and cloud infrastructure company, accounts for 0.70% of Berkshire's portfolio. billion stake now accounts for 2.9% That's a six-bagger gain in 14 years.

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The Motley Fool

JUNE 22, 2024

If you went around asking people to name a retirement account, there's a good chance that most of them would say 401(k). Based on its popularity, you could argue that it's the retirement account. They each share common benefits but have noteworthy tax-break differences. What type of IRA account is right for you?

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The Motley Fool

JULY 14, 2024

IRAs and 401(k)s come with different tax benefits. Traditional IRAs and 401(k)s give you a tax break on the money you put in, and investments get to grow on a tax-deferred basis. Roth IRAs and 401(k)s offer the benefit of investment gains that are completely tax-free, as well as tax-free withdrawals. Here's how.

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The Motley Fool

SEPTEMBER 10, 2024

Image source: Getty Images Your trusty savings account is an important piece of your financial puzzle. Unfortunately, many of your fellow Americans are not so fortunate -- research from The Motley Fool Ascent found that just 45% of us can afford a $400 expense with the money in our checking or savings accounts.

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The Motley Fool

NOVEMBER 24, 2024

Step one is to open a retirement account with a top stock broker so you can start building your investment portfolio. The first is that it will help you find some spare cash that you can use to build your retirement fund. You put in post-tax dollars and can then make tax-free withdrawals once you've retired.

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The Motley Fool

OCTOBER 20, 2024

Image source: The Motley Fool/Upsplash High-yield savings accounts are a great place to put the money you're setting aside for a house down payment, emergency fund, or future investments. But as great as high-yield savings accounts are, there are a few mistakes you can make with them. Here are three and how to avoid them.

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The Motley Fool

SEPTEMBER 9, 2024

Image source: The Motley Fool/Unsplash Building an emergency fund is a cornerstone of personal finance -- and once you've got that money saved, it's crucial to find the best place to keep it (and no, keeping it in your checking account isn't usually your best move). Where does your emergency fund belong? You have a few options.

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The Motley Fool

NOVEMBER 11, 2024

Tax-advantaged retirement accounts are wonderful financial vehicles that can help you build wealth and plan for retirement. IRAs and 401Ks allow you to invest with pre-tax dollars, allowing the wonders of compound interest to grow your nest egg until it can help support you when you are no longer working. If you are 85?

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The Motley Fool

SEPTEMBER 8, 2024

But one way you can invest more money than you might otherwise be able to is by investing your tax refund every year. If you can afford to do so, putting that money into some quality exchange-traded funds (ETFs) can have a significant effect on your portfolio's balance in the long run. But that's a fairly safe investment option.

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The Motley Fool

JANUARY 21, 2025

You don't want to pay taxes on your retirement account withdrawals The main advantage of Roth IRAs is that you get tax-free withdrawals in retirement, as long as you're at least 59 1/2 years old and have had the account for at least five years. You could also invest it in a taxable brokerage account.

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The Motley Fool

SEPTEMBER 13, 2024

They deposit the money into their checking account while deciding what to do with it. After the 9/11 attacks, it began to focus more on the potential funding of terrorist activity. The government may also charge the perpetrator for tax evasion in addition to cash structuring. And it's not just U.S.

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The Motley Fool

OCTOBER 18, 2024

Many families see 529 plans as the go-to college savings accounts because of their tax benefits. Your contributions might reduce your state income tax liability, depending on your plan, and interest grows tax deferred. If you use the money for qualifying educational expenses, you won't owe any taxes on withdrawals.

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The Motley Fool

JULY 1, 2024

Image source: Getty Images If you have $10,000 or more to deposit at your bank, you're probably eager to get it into your account where the funds will be safe and accessible. Before you head down to your local branch, though, there are a few key points you need to know when you have a very large deposit to make. Here are four of them.

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The Motley Fool

OCTOBER 28, 2024

Professional fund managers are extremely smart, highly educated, hard-working, and ultra-competitive. If you can perform in the top 2% of all professional fund managers on Wall Street, you're sure to find yourself with a very handsome payday at some point. All you have to do is buy a broad-based index fund and hold it for years.

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The Motley Fool

JUNE 8, 2024

Image source: Getty Images An emergency fund is more than just a financial buffer -- it's peace of mind. In life's unpredictable whirlwind, from sudden medical emergencies to unexpected car breakdowns or even job loss, an emergency fund acts as your financial lifeline. For example, the average tax refund in the U.S.

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The Motley Fool

DECEMBER 15, 2024

Professional fund managers tend to be highly educated, hard-working, and extremely smart. But it doesn't take a highly complex trading plan to come out ahead of 98% of professional mutual fund managers over the long run. If you want to beat the professionals, your best bet is to buy a broad-based index fund and just hold onto it.

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The Motley Fool

JULY 14, 2024

Image source: Getty Images You've spent all their lives saving for college, and you finally have a pretty hefty sum -- but now that interest rates are high enough to be worth considering, you wonder if there are more ways you could be growing your kid's college fund. She just set one up from the boys' savings account online.

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The Motley Fool

SEPTEMBER 2, 2024

High-yield savings account In terms of risk aversion, a high-yield savings account is one of the safest options. These accounts earn interest steadily at a certain annual percentage yield (APY). High-yield savings accounts won't grow your money as aggressively as stocks and bonds. Both give you the power of tax deferral.

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The Motley Fool

MARCH 28, 2025

Do the ins and outs of required minimum distributions (RMDs) from individual retirement accounts (IRAs) have you feeling a bit overwhelmed? Before doing anything RMD-related for tax year 2024, there are five easily avoidable mistakes you'll want to make sure you sidestep. Don't panic! RMDs aren't as complicated as you might think.

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The Motley Fool

OCTOBER 21, 2024

To this end, here's a rundown of four simple strategies for minimizing the tax bills created by required minimum distributions -- or RMDs -- from your IRA accounts once you can no longer postpone them. The amount is a percentage of the account's value that changes with your age. What's a required minimum distribution?

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The Motley Fool

MARCH 19, 2025

That's why a broadly diversified index fund like the Vanguard S&P 500 ETF (NYSEMKT: VOO) should be at the top of every investor's first shopping list. The fund can also be the foundation of a thoughtfully designed portfolio, or play several useful supporting roles in other investment styles. Why the Vanguard S&P 500 ETF?

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The Motley Fool

OCTOBER 8, 2024

Retirement accounts, like IRAs and 401(k)s , come with several advantages for investors. One of the most important is you can defer the taxes on your contributions. But you can't wait forever to pay your tax bill. That's why it imposes required minimum distributions (RMDs) on traditional retirement accounts.

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The Motley Fool

OCTOBER 23, 2024

The big advantage of those accounts is that you can deduct your contributions from your taxes. With a lower tax bill, you'll have more money to invest and save for your future. By the time you retire, you could have a sizable nest egg in those pre-tax accounts along with some money in a taxable brokerage account.

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The Motley Fool

AUGUST 2, 2024

Saving money in a retirement account like an IRA or 401(k) is a great way to boost your savings. The tax deduction you receive upfront can help you save more today and build a big nest egg quickly. But eventually, the government wants its tax revenue. You'll be required to pay taxes on the amount you convert.

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The Motley Fool

JULY 14, 2024

Roth IRA vs. traditional IRA If you're not familiar with the difference between the two types of individual retirement accounts, it's not complicated. With Roth IRAs , conversely, there's no tax break when putting money into these types of accounts, but withdrawals from Roth IRAs are tax-free. There are limitations.

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The Motley Fool

JUNE 28, 2024

When it comes to retirement savings, Roth IRAs are among the most popular accounts. Many savers are familiar with the basic perks, such as tax-free growth and withdrawal benefits. However, there's one overlooked feature that might ease your anxiety about locking money away in a retirement account for decades.

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The Motley Fool

SEPTEMBER 9, 2024

Having so much in savings that you have to open a taxable brokerage account just to invest it is a great problem to have. But there may be a way for high earners to save even more in their tax-advantaged retirement accounts. That could either be a Roth account within the 401(k) plan, or a separate Roth IRA.

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The Motley Fool

OCTOBER 1, 2024

But you must make contributions to your own account before your employer will set anything aside. They give you the freedom to invest your money however you'd like, and you also get a say in when you pay taxes on your funds. That's the limit for all your IRAs, not each account individually. Image source: Getty Images.

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The Motley Fool

NOVEMBER 3, 2024

One of the biggest benefits of saving in traditional retirement accounts like a 401(k) or IRA is the upfront tax break you receive. You won't owe any income taxes on contributions in the year you make them. But you can't defer those income taxes forever. Eventually, Uncle Sam wants his cut. 31 of every year).

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The Motley Fool

OCTOBER 24, 2024

There are different kinds of college savings plans, but all states except Wyoming offer these types of investment accounts. Generally speaking, 529 plans are accounts with low required minimum contributions. These funds can be invested and ultimately withdrawn tax-free. Image source: Getty Images.

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The Motley Fool

JULY 19, 2024

That year, the average retirement account balance among Americans with a pension, IRA, 401(k), Thrift savings plan, or other employer-sponsored plan was $333,940. The median balance is a better reflection of the average retirement account balance. of American households didn't have anything saved in retirement accounts.

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The Motley Fool

NOVEMBER 6, 2024

The IRS just released the 2025 contribution and income limits for retirement accounts, including Roth IRAs. A quick primer on the Roth IRA The Roth IRA is one of the hottest retirement accounts around, and being able to contribute to it each year is a big deal for many. The tax-free growth and income you get to enjoy in retirement.

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The Motley Fool

OCTOBER 15, 2024

One of the great advantages of saving for retirement in an IRA or 401(k) is the tax savings. Instead of paying taxes on the money you contribute today, you can defer those taxes until retirement. But eventually the IRS comes asking for its tax revenue. 31 of each year). Image source: Getty Images.

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The Motley Fool

JULY 3, 2024

Choosing the best mix of accounts to house your retirement funds can be challenging. You have individual retirement accounts, such as Roth and traditional IRAs, and employer-sponsored retirement plans like a 401(k) and 403(b). This change aligns with Roth IRAs, which are not subject to RMDs during the account owner's lifetime.

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