The Motley Fool

JANUARY 22, 2024

So if you want the option to retire at, say, age 52, then you'll need to keep some of your long-term savings outside of a tax-advantaged account. Sure, you could choose one specific mutual fund over another in your 401(k). But you don't get to dictate what assets those funds actually invest in.

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The Motley Fool

NOVEMBER 24, 2023

Such employer-sponsored plans aren't necessarily your best first choice for building a retirement fund, however. The bulk of them are managed by mutual fund companies, with most of those companies limiting your investment choices to their family of funds. There are reasons to select other savings options.

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The Motley Fool

APRIL 19, 2024

Your account gets automatically funded from every paycheck, once you set it up. Money in your 401(k) account grows in a tax-advantaged way -- either by postponing taxation via a traditional 401(k) or by avoiding it altogether via a Roth 401(k). You typically have only a large or small handful of funds to choose from. (If

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The Motley Fool

FEBRUARY 26, 2024

With its high contribution limit, tax advantages, and potential for a company match, it could be your biggest source of savings once you retire. The biggest fees in 401(k) plans are often the investment fees charged by mutual fund companies. You should aim to avoid actively managed mutual funds with high expense ratios.

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Mutual Funds Investing Accounting Taxes 245

The Motley Fool

OCTOBER 13, 2023

If you contribute some of your earnings to an IRA, you can shield some income from taxes. They give you a limited penalty-free withdrawal to buy a home If you're funding an IRA to have savings down the line in retirement, then it's generally best to leave that money alone until retirement. Not so with an IRA. 31 of this year.

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The Motley Fool

APRIL 22, 2024

The emergence of spot Bitcoin exchange-traded funds (ETFs) has opened up a new avenue for investors to enter the cryptocurrency market without the complexities of managing crypto wallets and navigating exchanges. Fortunately for me, my full-time employer sponsors a tax-advantaged retirement account, and offers a contribution-matching program.

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Mutual Funds Exchange-Traded Funds Accounting Taxes 245

The Motley Fool

SEPTEMBER 12, 2024

With a traditional 401(k), the more you put in, the more income you can potentially shield from taxes, up to the yearly IRS limit. It generally makes sense to fund your 401(k) plan up to the matching amount your company is willing to give. However, non-medical HSA withdrawals at age 65 or later are subject to taxes.

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The Motley Fool

JUNE 3, 2024

In particular, people with net worths of $1 million or higher tend to have more of their money in the following: Stocks/mutual funds Real estate Business interests Those in the $10,000 and $100,000 tiers invest in those, too, but not nearly as much. Take the professionally managed hedge funds available to wealthy investors.

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The Motley Fool

SEPTEMBER 2, 2024

This would be a good option if you don't have an emergency fund , or if your current emergency fund doesn't cover three to six months of living expenses. These accounts have certain tax advantages. Contributions to a 401(k), for instance, lower your taxable income and may end up reducing your tax bill.

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The Motley Fool

JULY 19, 2024

Protect yourself from market volatility Ideally, retirement investments move from higher-risk investments like stocks to lower-risk investments like bonds and mutual funds as you get close to retirement. Relying on a business's cash flow can help you weather the market's ups and downs by not pulling out funds when the market falls.

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The Motley Fool

SEPTEMBER 27, 2024

Minimize your investment fees Most 401(k)s give you a choice between a variety of mutual funds or index funds your employer chooses. Most mutual funds charge expense ratios , which are listed as percentages in your prospectus. Index funds are a great low-cost investment option if they're available to you.

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The Motley Fool

FEBRUARY 11, 2024

Average 401(k) balance for 55 to 64 year olds Mutual fund company Vanguard crunches the numbers every year using data from its own clients. Most 401(k) plans only offer a limited number of mutual funds to choose from. It's not yet at the very end of your opportunity to sock money away. investor stands.

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The Big Picture

DECEMBER 14, 2023

At the Money: Mutual Funds vs. ETFs with Dave Nadig, Financial Futurist for Vetta Fi (December 13, 2023) What’s the best instrument for your investments? Mutual funds or ETFs? But over the past few decades the mutual fund has been losing the battle for investors attention.

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The Motley Fool

SEPTEMBER 21, 2024

You'll mostly see target date funds , mutual funds , and maybe some company stock. Generally, you have to keep your 401(k) funds locked up until you reach age 59 1/2. Sure, you could dip into your 401(k), but you'll face a 10% penalty on top of paying taxes.

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The Motley Fool

DECEMBER 22, 2023

Not only do the holidays inspire goodwill and cheer, but many people are interested in writing off their donations as we close out the tax year. But there's also a lot of confusion about charitable donations and when you can write them off for tax purposes. To write off a charitable deduction, you'll need to itemize your tax return.

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The Motley Fool

MAY 29, 2024

Although some exposure to these stocks is OK, I'd encourage passive investors to opt for index funds that focus on broader growth markets such as cybersecurity, cloud computing, or artificial intelligence (AI). These are offered by employers and allow workers to allocate a portion of their paycheck each month to fund retirement.

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The Motley Fool

DECEMBER 2, 2023

The 401(k) is a cornerstone of retirement planning -- it's tax-friendly, hands-off, and convenient. Contributions to a traditional IRA may be deductible, and earnings grow tax-deferred until you take withdrawals in retirement. Contributions to a Roth IRA are made with after-tax money, and withdrawals are tax-free in retirement.

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The Motley Fool

FEBRUARY 19, 2024

A family office may offer financial planning, investment management, tax expertise, and charitable giving opportunities. A prime brokerage A prime brokerage is a group of services offered to ultra-high-net-worth individuals (UHNWI) or hedge funds. This allows them to own shares in companies that the average investor can't yet purchase.

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The Motley Fool

SEPTEMBER 30, 2024

For example, a Roth IRA offers exceptional tax benefits, making it an outstanding retirement planning tool. It also comes with immediate tax benefits. For example, taxes on 401(k) contributions are deferred until retirement, meaning you can lower your taxable income during your working years by contributing more to your 401(k).

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The Motley Fool

JULY 19, 2024

Even if you add investments outside of retirement accounts, like individual stocks, bonds, and mutual funds, 50% of American households have less than $9,000 invested. The IRA comes with tax incentives. For every dollar you contribute to a traditional IRA, you can deduct it from your tax return. That's a far cry from $1.46

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The Motley Fool

DECEMBER 27, 2023

Image source: Getty Images Making donations to charities is a generous thing to do, and it can also help reduce your tax bill. But if you want to make the most of your charitable giving, smart tax planning should also be part of your agenda. Let's look at a few positive results that can happen from tax deductible charitable giving.

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The Motley Fool

MAY 29, 2024

There's nothing wrong with dipping your first toe in Wall Street's waters through a low-cost exchange-traded fund (ETF). Even so, you still have dozens of index-tracking strategies and hundreds of funds to choose from. What's an exchange-traded fund? You don't have to pick a strategy right away.

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The Motley Fool

APRIL 15, 2024

They invest heavily in stocks and mutual funds Baby boomers have the largest percentage of their wealth in stocks and mutual funds. Experts often recommend the 50/30/20 rule , which says 50% of your after-tax income goes to needs, 30% to wants (non-essentials), and 20% goes to saving or paying off debt.

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The Motley Fool

MARCH 17, 2024

If you'd prefer to maximize your tax break now, you can open a traditional (pre-tax) version of any of them, but if you'd prefer to enjoy tax-free income after you retire, a Roth account is certainly an option.

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The Motley Fool

OCTOBER 28, 2024

The simple explanation is this means investing equal dollar amounts at specific intervals in your favorite stocks, ETFs, or mutual funds. As a basic example, instead of investing $6,000 at a set point in the year in a S&P 500 index fund, maybe invest $500 in the same index fund at the beginning of each month.

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The Motley Fool

OCTOBER 28, 2024

Financially savvy people understand that high-yield savings accounts (HYSAs) are a better option for storing their emergency funds. While you should always keep your emergency fund safe and easily accessible (like in an HYSA), other investments can be in multiple types of funds. thanks to compound interest.

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The Motley Fool

MAY 11, 2024

Over 91 million American households have already received a tax refund in 2024. Just 9% of Americans plan to invest their tax refund, according to a January survey from Bankrate. You don't need to be a genius to take your tax refund and turn it into a much more valuable asset. Should you invest your tax refund all at once?

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The Motley Fool

JANUARY 7, 2024

Many people also have a tax refund coming their way in the next few months. If you choose the IRA route, you'll be able to decide how you want to invest your money and when to pay taxes on it. Mutual funds and exchange-traded funds (ETFs) charge expense ratios, which are an annual fee you pay the fund manager.

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The Big Picture

JANUARY 24, 2024

At the Money: How to Pay Less Capital Gains Taxes (January 24, 2024) We’re coming up on tax season, after a banner year for stocks. Successful investors could be looking at a big tax bill from the US government. On this episode of At the Money, we look at direct indexing as a way to manage capital gains taxes.

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The Motley Fool

JUNE 27, 2024

Money in your 401(k) account grows in a tax-advantaged way. If it's a traditional IRA, you'll get an upfront tax break, as you can deduct your contribution each year from your taxable income. stock market via a low-fee S&P 500 index fund and/or an even broader index fund. The Motley Fool has a disclosure policy.

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The Motley Fool

JANUARY 31, 2024

The cohort includes families holding individual shares directly and those owning stocks indirectly through funds, retirement accounts or other managed accounts. Those will typically offer a menu of funds to choose from, including funds that invest in stocks. Why stocks? Bonds 5% Bills 4% Gold 2.1%

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The Motley Fool

JANUARY 2, 2024

By investing in this top index fund , you are on the path to improving your financial well-being. A proven approach If you're a stock market newbie, I think it's smart to invest any starting capital you have in the Vanguard 500 Index Fund Admiral Shares (NASDAQMUTFUND: VFIAX). If this sounds like you, all hope isn't lost.

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The Motley Fool

NOVEMBER 30, 2023

Exchange-traded funds, or ETFs, can be superb investing vehicles. ETFs are both cost- and tax-efficient, and they can instantly diversify a portfolio across a broad swath of the equity markets or within a specific sector/theme. The Vanguard 500 Index Fund (NYSEMKT: VOO) , or VOO, is one of the best ETFs for this purpose.

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The Motley Fool

SEPTEMBER 2, 2023

But while there are clear benefits to funding a 401(k), you may not want to keep all of your retirement savings in one for a couple of good reasons. IRAs offer more investment options One downside of 401(k)s is that they generally limit you to investment funds, like index and mutual funds , and do not allow you to invest in individual stocks.

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Mutual Funds Accounting Taxes Funds 246

The Motley Fool

AUGUST 14, 2024

Money market funds A money market fund is a mutual fund that invests in low-risk securities. For example, a money market fund might invest in municipal debt, corporate bonds, or Treasury bills. Still, due to what they're invested in, money market funds are one of the safer investment options available.

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The Motley Fool

SEPTEMBER 4, 2023

The program could increase its revenue by increasing tax rates or raising the payroll income tax cap. Nonetheless, there are several reasonable fixes that would preserve the Social Security system's funding for decades to come. There are a few different options to overcome the projected solvency issues.

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Mutual Funds Exchange-Traded Funds Assets Taxes 246

The Motley Fool

SEPTEMBER 21, 2024

You can also buy bonds through ETFs or mutual funds. Funds are baskets of securities and can be a more accessible and affordable way to add bonds to your portfolio. For example, a top high-yield savings account is a great home for your emergency fund. You'd get a payment of $100 every six months for 10 years.

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