The Motley Fool

SEPTEMBER 16, 2024

That's living in a state that doesn't tax the daylights out of its retired residents. Indeed, some investors are surprised to learn that while several states allow their retirees to live a relatively income-tax-free life, others don't. Are you looking to maximize your retirement income? Start with the lowest-hanging fruit.

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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

JANUARY 16, 2025

Low-cost exchange-traded funds (ETFs) offer a simpler path to diversification and staying invested for the long term. The Vanguard family of funds, in particular, stands out for its industry-leading low expense ratios. The fund's low 2.2% Looking at longer-term results, the fund has generated a 12.5% VTI data by YCharts.

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The Motley Fool

JANUARY 20, 2025

Many of these companies are structured as master limited partnerships (MLPs), which pass through their profits to their unitholders and as such don't pay corporate taxes. This portion is tax deferred until the stock is sold and reduces the owner's cost basis. This is a nice benefit, although it does add some paperwork come tax time.

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Private Equity Insights

APRIL 2, 2025

The firm provides high-end tax and financial advisory services and serves 95% of the DAX40, as well as numerous global mid-market leaders. EQTs investment will support WTSs plans to expand internationally through WTS Global, pursue inorganic growth via M&A, and invest further in tax technology and AI innovation.

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Private Equity Wire

JANUARY 20, 2025

International hedge funds and private equity firms are increasingly investing in Lloyds of Londons tax-exempt investment vehicle, as the 300-year-old UK institution expands its efforts to attract global investors, according to a report by the Financial Times. This has drawn increasing attention from alternative fund managers.

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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

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). Your emergency fund could drop in value Stock investing isn't without risk.

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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

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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Mutual Funds Funds Taxes Investing 240

The Motley Fool

SEPTEMBER 8, 2024

Take out another $7 billion in administrative expenses, and the program's trust funds shrank by $41 billion in 2023, and we expect these deficits to continue over the coming years. What happens when the trust funds run out? trillion in its trust fund reserves at the beginning of 2024. Image source: Getty Images.

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The Motley Fool

NOVEMBER 28, 2024

Since withdrawals in retirement are tax-free, housing aggressive growth investments in a Roth can maximize the benefits of long-term capital appreciation. Let me explain why this fund deserves consideration as a Roth IRA anchor holding, and how it compares to Warren Buffett's preferred S&P 500 index fund. 1 through Nov.

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Private Equity Insights

MARCH 27, 2025

It offers a robust regulatory framework, flexible fund structures, and strong access to global capital. Recent changes to international tax regimes, combined with Luxembourgs own reforms, have boosted the countrys appeal. Liquidity needs have driven demand, making Luxembourg a prime hub for secondary fund activity.

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Private Equity Firms Private Equity Firms Private Equity Managers Buyout 147

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. Wake up with Breakfast news in your inbox every market day.

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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). Chubb's core operating income per share (excluding any tax benefits) grew 30% in 2023 and 13% in 2024. Warren Buffett is one of the most closely followed investors in the world. billion stake now accounts for 2.9%

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The Motley Fool

SEPTEMBER 5, 2024

That means roughly 85% of actively managed funds -- the term used for investment funds that try to beat the market by buying and selling various stocks -- are actually unable to beat the market over the long term. The first is that to managing an investment fund incurs significant costs. The investment below is for you.

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Funds Exchange-Traded Funds Investing Taxes 243

The Motley Fool

OCTOBER 6, 2024

The latest report from the SSA expects the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds -- technically separate but often combined for simplicity in projections -- to be depleted by the end of 2035. The money collected each year in payroll tax immediately funds the benefits paid out to current retirees.

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Funds Taxes Investing 245

Private Equity Insights

MARCH 19, 2025

The fund focuses on high-growth food industry businesses, with portfolio companies including automation specialist AB Process Ingnierie and bakery chain Sophie Lebreuilly. Relais Desserts is the seventh investment from Cerea Capital III, which completed its first close in 2022. Can`t stop reading?

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Stakes Due Diligence Bidding Consultants 162

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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Taxes Exchange-Traded Funds Accounting Funds 228

The Motley Fool

NOVEMBER 8, 2024

One is to fund a traditional IRA, which gives you an immediate tax break on your contributions. You could also fund a Roth IRA, which doesn't come with an up-front tax break but offers perks galore. With a Roth IRA , your investments gains are tax-free, and withdrawals are tax-free in retirement.

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The Motley Fool

OCTOBER 6, 2024

So far, it has kept itself going because its trust funds have had excess cash to make up the shortfall, but that money won't last forever. The Disability Insurance trust fund will be depleted in 2064. And if the government combines the money in the two trust funds, it would be exhausted in 2034.

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Taxes Funds Investing 246

Private Equity Insights

JANUARY 14, 2025

In November, HWS joined 220 hospitality firms in warning the Chancellor of job cuts and closures caused by the tax increase. Read more Capital D invests in retail tech innovator GoWish Capital D, a private equity fund manager, has made a strategic investment in GoWish, a leading. Source: The Caterer Can’t stop reading?

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Capital Private Equity Firms Private Equity Firms Buyout 130

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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Mutual Funds Taxes Funds Portfolios 244

The Motley Fool

OCTOBER 2, 2024

Social Security benefits could be on the chopping block Social Security has historically brought in more in tax revenue than it's paid out in benefits. That led to the creation of a trust fund to hold all the excess money until workers retired and claimed their benefits. The answer lies in the dynamic between tax revenue and COLA.

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Taxes Funds Investing 246

The Motley Fool

SEPTEMBER 28, 2024

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. HSA funds can be invested HSA contributions can be invested , allowing the money to grow. Remember, HSA growth is tax free as long as it is used for medical expenses.

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The Motley Fool

NOVEMBER 6, 2024

The tax-free growth and income you get to enjoy in retirement. You could withdraw that money during retirement without taxes chipping away at your portfolio. You'll just need to wait until you're 59 1/2 and meet the five-year rule to access those earnings tax-free. Its main appeal? Image source: Getty Images. The best part?

Taxes 246

Taxes Exchange-Traded Funds Financing Finance 246

The Motley Fool

OCTOBER 19, 2024

Franklin famously said, "In this world, nothing is certain except death and taxes." Well, it turns out that while none of us can avoid death, you can avoid some taxes in retirement and retirement planning. And that is a good thing, because creating a retirement plan that avoids taxes to the extent possible is smart. What to do?

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Taxes Accounting Funds Returns 244

The Motley Fool

SEPTEMBER 14, 2024

Social Security benefit taxes are costing more seniors every year Social Security has three sources of funding. The most important is the payroll taxes workers pay on their annual incomes. There's also interest earned on money in Social Security's trust funds. Image source: Getty Images.

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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

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. This won't sidestep a tax bill. What's a required minimum distribution? Most people end up outliving at least some of their savings.

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Taxes Accounting Liabilities Assets 246

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.

Mutual Funds 246

Mutual Funds Taxes Investing Accounting 246

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. That can give you extra cash now, enabling you to save more for retirement.

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Taxes Accounting Funds Investors 246

The Motley Fool

OCTOBER 21, 2024

Enter Vanguard exchange-traded funds (ETFs), the brainchild of investing legend John Bogle. These funds typically boast lower turnover rates compared to actively managed alternatives, a characteristic that substantially reduces investors' tax liabilities. Since its inception in 2010, the fund has achieved an impressive 13.4%

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Liabilities Taxes Exchange-Traded Funds Stock Market 246

The Motley Fool

OCTOBER 1, 2024

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. Traditional 401(k)s give you an upfront tax break when you make your contributions, but you pay taxes on your withdrawals. But you also get tax-free medical withdrawals at any age.

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Taxes Accounting Banks Funds 245

The Motley Fool

OCTOBER 8, 2024

One of the most important is you can defer the taxes on your contributions. Instead of paying taxes on your income during the year in which you earn it, you can wait until you withdraw your savings in retirement to pay taxes, giving you more money to invest upfront. But you can't wait forever to pay your tax bill.

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The Motley Fool

SEPTEMBER 9, 2024

But there may be a way for high earners to save even more in their tax-advantaged retirement accounts. You won't get a tax break, but you can immediately convert those funds to a Roth IRA , which is effectively the same as contributing directly to a Roth IRA. It's called the mega backdoor Roth.

Taxes 246

Taxes Accounting Assets Funds 246

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. Additionally, you'll still owe taxes on the amount you distribute.

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