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.

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The Motley Fool

AUGUST 14, 2024

So far, these seven high-return, low-risk investments make the most sense to me. Not to be confused with the money market accounts (MMAs) typically offered by banks and credit unions, money market funds are not FDIC insured. In exchange for the high rates, you agree to leave your money in the account for that specified period.

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The Motley Fool

MARCH 19, 2025

Amazon Amazon, the world's largest e-commerce and cloud infrastructure company, accounts for 0.70% of Berkshire's portfolio. Visa Visa, the world's top card payments processor, accounts for 1% of Berkshire's portfolio. Those partners handle all the accounts and customer debt, while Visa only charges "swipe fees" of 1.5%-3.5%

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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. Assuming an average annual return of 8%, your portfolio might be worth over $300,000 by the time you reach 67. 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. What does that have to do with savings accounts?

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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

AUGUST 24, 2024

In spite of receiving Social Security checks, 44% of retirees are considering a return to the workforce, according to The Motley Fool's recent research on attitudes toward the Social Security cost-of-living adjustment (COLA). Those who aren't able to save enough in a retirement account may choose to go back to work instead.

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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. That's because FinCEN knows there are thousands of reasons why someone might deposit more than $10,000 into their checking account, the vast majority of which are 100% innocent. The Smurfs are instructed to open a handful of bank accounts.

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The Motley Fool

NOVEMBER 30, 2024

I'm a brand-new retirement investor, having opened my first-ever retirement account just a few months ago at age 40. I grew up in a household with multiple small businesses and an often shaky financial situation, rather than with parents with office jobs who contributed diligently to employer-provided retirement accounts.

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The Motley Fool

NOVEMBER 16, 2024

But at its current price of about $71 and enterprise value of $153 billion, Uber's stock still looks reasonably valued at 31 times forward earnings and 17 times next year's adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ). The 10 stocks that made the cut could produce monster returns in the coming years.

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The Motley Fool

DECEMBER 30, 2024

Shopify also provides financial solutions for payment processing, bill payments, tax filing, and account management. In fact, its merchants account for more than 10% online retail sales in the U.S., Additionally, the company also supports merchants with tools for marketing, logistics, and wholesale commerce, among others.

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The Motley Fool

APRIL 11, 2025

For perspective, Nvidia is the S&P 500 Growth Index's top holding right now, but it only accounts for about 11% of the index's (and ETF's) total value. There's no need to dump that position just to buy this one, particularly if selling something would create an unwanted tax consequence. The end result is a better-balanced index.

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The Motley Fool

MARCH 19, 2025

As for long-term performance, about 55 ETFs have beaten this Vanguard fund's average returns over the past 10 years without resorting to financial tricks such as leveraged funds. As you can see in the chart above, enabling DRIP for the Vanguard S&P 500 ETF adds nearly 20% to your returns in a single decade.

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The Motley Fool

JULY 10, 2024

However, if you can set aside some money in a retirement plan this year, the government will reward you with a tax credit if your income falls below a certain threshold. It's important to note that the Saver's Credit is nonrefundable, so you won't receive a tax refund if your credit is worth more than you owe.

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The Motley Fool

JULY 13, 2024

The Roth IRA is one of the most coveted retirement accounts in existence, and for good reason. Some well-known perks of contributing to a Roth IRA include tax-free growth and tax-free withdrawals during retirement. workers are unaware of a significant benefit that can help you during tax time: the Saver's Credit.

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The Motley Fool

SEPTEMBER 13, 2024

Depending on your income, your state might tax a portion of your benefits. How to keep more of your Social Security benefits Before focusing on individual states, everyone collecting Social Security should know how their benefits are taxed by the federal government. It pays to plan ahead for taxes in retirement.

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The Motley Fool

SEPTEMBER 1, 2024

Unfortunately, there are some harsh truths about 401(k) accounts that you should come to terms with before you decide this is the right move. Here are the problems with maxing out your 401(k) account There are a few big problems with maxing out your 401(k). You could miss out on better tax breaks. Image source: Getty Images.

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The Motley Fool

JULY 24, 2024

There are many types of retirement accounts to choose from, including a 401(k) and traditional IRA. Open an individual retirement account For many, Roth IRAs are the best thing since sliced bread because you can contribute after-tax dollars now in exchange for tax-free income later. Image source: Getty Images.

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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

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

AUGUST 24, 2024

The federal government encourages retirement savings by offering a tax break for anyone who contributes to certain retirement accounts like a 401(k) or IRA. If you save money in a traditional tax-deferred retirement account, you can deduct the amount you put in on your tax return this year.

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The Motley Fool

FEBRUARY 4, 2025

Combined, they account for about 28.4% That bodes well for 2025, especially because discount revenue accounts for the vast majority of Amex's total sales. times analysts' estimates for 2025 EBITDA (earnings before interest, taxes, depreciation, and amortization). Image source: The Motley Fool. Card fees added $8.5

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The Motley Fool

OCTOBER 28, 2024

And in an ironic twist, the less competitive you are, the better you'll be able to stick with a strategy that can lead you to after-tax returns that beat 98% of professionally managed mutual funds. As a result, the average fund manager will produce returns very close to the market average. Image source: Getty Images.

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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). So what kind of account is best for this crucial cash?

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The Motley Fool

JULY 24, 2024

Unfortunately for people living in nine states, depending on their incomes, there's a chance they'll owe state income taxes on a portion of their Social Security benefits this year. How are Social Security benefits taxed? Anyone collecting Social Security ought to know the details of how the federal government taxes their benefits.

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The Motley Fool

AUGUST 3, 2024

You'll face taxes on withdrawals in retirement Unless you keep your money in a Roth IRA , your retirement plan withdrawals will be subject to taxes during your senior years. To then have to lose some of that income to taxes might be a blow. Maxing out your IRA before moving on to a taxable investment account is generally best.

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The Motley Fool

OCTOBER 25, 2024

Unfortunately for those who fall into the latter category, Social Security is beginning to lag behind the increasing cost of living in the country, causing some people to consider returning to the workforce. There are two main types of IRAs -- traditional and Roth -- and each has a unique benefit and tax break.

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The Motley Fool

SEPTEMBER 29, 2024

Image source: Getty Images Pulling money out of retirement accounts generally means paying income tax on the withdrawal, plus a 10% penalty. There's a good reason for this -- the more you pull out of your retirement accounts, the less you'll have to live off in retirement. You're also forfeiting any future growth. and $1,219.64

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The Motley Fool

JULY 29, 2024

Will your Social Security get taxed? It's when outside income gets thrown into the mix that taxes on Social Security start to apply. The problem with taxes on Social Security benefits is that they come into play at pretty low income thresholds. Beyond $44,000, up to 85% of your Social Security may be taxed.

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The Motley Fool

DECEMBER 15, 2024

The strategy will produce after-tax returns better than about 98% of actively managed mutual funds over the long run. That dynamic helps explain why the average investment with a professional fund manager might produce returns roughly in line with the market average. In fact, the less work you do, the better the strategy works.

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The Motley Fool

JULY 17, 2024

When it comes to retirement accounts, the Roth IRA is one of my favorite tools. With tax-free growth and tax-free withdrawals in retirement, it separates itself from other accounts like 401(k)s and traditional IRAs (although those are great options, too). That's a win-win.

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The Motley Fool

AUGUST 21, 2024

You probably know that an IRA account can help you save for retirement. Know that the S&P 500 has averaged annual returns close to 10% over many decades. A traditional IRA gives you an upfront tax break, lowering your taxable income by the amount of your contribution. At that time, your withdrawals can be tax-free.

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The Motley Fool

SEPTEMBER 2, 2024

Roth IRAs have a unique tax break you don't receive from popular accounts like 401(k) or traditional IRAs. They allow you to contribute money that's already been taxed and then take tax-free withdrawals in retirement, as long as you're 59 1/2 years old and made your first contribution at least five years ago.

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The Motley Fool

SEPTEMBER 22, 2024

There are a few factors that make CDs a compelling investment: The APYs are often better than what you get in a high-yield savings account. If you're saving for retirement and you're willing to forgo a tax break for the current year, you could invest in an S&P 500 ETF using a Roth IRA. S&P 500 ETFs: Which has better returns?

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The Motley Fool

NOVEMBER 8, 2024

High-interest savings accounts or government bonds Similar to the investing in dividend stock strategy above, here you would put money away in high-interest savings accounts or buy government bonds. No, these do not generate "wow" returns, but we are not looking for that; we are looking for modest, easy, simple, passive returns.

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The Motley Fool

OCTOBER 18, 2024

And there's one perk that always steals the spotlight: tax-free income during retirement. With a Roth IRA, you pay taxes upfront, and after you turn 59 1/2 and meet the five-year rule , all the money in your account is tax-free. Even if your account grows to over $1 million, you won't have to share a dime with Uncle Sam.

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The Motley Fool

SEPTEMBER 21, 2024

On top of that, you'll run up against some fees that could chip away at your returns. This might not be ideal if an emergency arises and you don't have much saved outside of the account. Sure, you could dip into your 401(k), but you'll face a 10% penalty on top of paying taxes.

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