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Wondering if your social security income will be taxable? It depends on your income in retirement! - If your total income is $25,000 to $34,000 for a single filer ($32,000 to $44,000 if married filing jointly), 50% of your benefit will be taxed. - If your total income is greater than $34,000 for a single filer ($44,000 for a couple), up to 85% of your benefit is taxable. That calculation for your total income is as follows. Adjusted gross income + nontaxable interest + half of your social security benefits. See thrivent .com/social for more information
Wondering if your social security income will be taxable? It depends on your income in retirement! - If your total income is $25,000 to $34,000 for a single filer ($32,000 to $44,000 if married filing jointly), 50% of your benefit will be taxed. - If your total income is greater than $34,000 for a single filer ($44,000 for a couple), up to 85% of your benefit is taxable. That calculation for your total income is as follows. Adjusted gross income + nontaxable interest + half of your social security benefits. See thrivent .com/social for more information
While 2023 is behind us, making 2023 contributions toward your Roth IRA is not too late! Until April 15th, you can contribute up to $6,500 for last year or $7,500 if you're 50 or older (income dependent). Thrivent and its financial advisors and professionals do not provide legal, accounting or tax advice. Consult your attorney or tax professional.
While 2023 is behind us, making 2023 contributions toward your Roth IRA is not too late! Until April 15th, you can contribute up to $6,500 for last year or $7,500 if you're 50 or older (income dependent). Thrivent and its financial advisors and professionals do not provide legal, accounting or tax advice. Consult your attorney or tax professional.
With investing, it's essential to differentiate between risk tolerance and risk capacity. You may only feel comfortable with a small amount of risk, but you may need more to reach your financial goals. Say you are a conservative investor and are worried about a potential downfall in the market- you would have a low-risk tolerance. But if your financial goals require large amounts of growth in your investments- your risk capacity may conflict with your gut feeling. Finding that balance can make investing difficult, as it is easy to let emotions dictate our decisions. See thrivent .com/social for more information.
With investing, it's essential to differentiate between risk tolerance and risk capacity. You may only feel comfortable with a small amount of risk, but you may need more to reach your financial goals. Say you are a conservative investor and are worried about a potential downfall in the market- you would have a low-risk tolerance. But if your financial goals require large amounts of growth in your investments- your risk capacity may conflict with your gut feeling. Finding that balance can make investing difficult, as it is easy to let emotions dictate our decisions. See thrivent .com/social for more information.
If you have a large traditional IRA or 401K, you have a large tax problem. The IRS has a stake in a portion of your account, and it's a matter of when they will receive it. Here are a few questions to consider. 1. What will tax rates look like when you take distributions? Rates are currently projected to increase in 2026 when the Tax Cut and Jobs Act sunsets from our current low rates. 2. Large pre-tax retirement accounts create large required minimum distributions. This may push you into a higher tax bracket and is not a problem that goes away. 3. When you pass with a traditional IRA/401K, it can push your spouse or your beneficiaries into a higher tax bracket. There are many ways to minimize this risk, so make sure that tax efficiency is a part of your plan. See thrivent .com/social for more information.
If you have a large traditional IRA or 401K, you have a large tax problem. The IRS has a stake in a portion of your account, and it's a matter of when they will receive it. Here are a few questions to consider. 1. What will tax rates look like when you take distributions? Rates are currently projected to increase in 2026 when the Tax Cut and Jobs Act sunsets from our current low rates. 2. Large pre-tax retirement accounts create large required minimum distributions. This may push you into a higher tax bracket and is not a problem that goes away. 3. When you pass with a traditional IRA/401K, it can push your spouse or your beneficiaries into a higher tax bracket. There are many ways to minimize this risk, so make sure that tax efficiency is a part of your plan. See thrivent .com/social for more information.
One of the most underutilized and underappreciated financial tools is the Health Savings Account. It is often used to get a "discount" on health expenses as contributions are not taxed. Although, if you use it for your overall financial plan, it can make a larger impact. 1. HSA's are the only account that has a triple tax advantage. The money put in is tax-deductible, grows tax-free, and withdrawals for qualified medical expenses are tax-free. 2. All unused contributions are rolled over into the next year and can be invested. With years of growth, it can be a great way to pay for medical expenses that will likely occur in retirement. 1/2 of someone's lifetime medical expenses will be in their senior years. 3. You can use these accumulated funds to either pay for healthcare out of pocket when you need it, or to pay for long-term care expenses including long-term care insurance premiums up to the IRS limits. With the cost of healthcare increasing at a faster rate than inflation, it is important to prepare for these expenses! See thrivent.com/social and https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1361028/#:~:text=Principal%20Findings&text=For%20survivors%20to%20age%2085,accrue%20in%20their%20remaining%20years for more information. Thrivent and its financial advisors and professionals do not provide legal, accounting, or tax advice. Consult your attorney or tax professional.
One of the most underutilized and underappreciated financial tools is the Health Savings Account. It is often used to get a "discount" on health expenses as contributions are not taxed. Although, if you use it for your overall financial plan, it can make a larger impact. 1. HSA's are the only account that has a triple tax advantage. The money put in is tax-deductible, grows tax-free, and withdrawals for qualified medical expenses are tax-free. 2. All unused contributions are rolled over into the next year and can be invested. With years of growth, it can be a great way to pay for medical expenses that will likely occur in retirement. 1/2 of someone's lifetime medical expenses will be in their senior years. 3. You can use these accumulated funds to either pay for healthcare out of pocket when you need it, or to pay for long-term care expenses including long-term care insurance premiums up to the IRS limits. With the cost of healthcare increasing at a faster rate than inflation, it is important to prepare for these expenses! See thrivent.com/social and https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1361028/#:~:text=Principal%20Findings&text=For%20survivors%20to%20age%2085,accrue%20in%20their%20remaining%20years for more information. Thrivent and its financial advisors and professionals do not provide legal, accounting, or tax advice. Consult your attorney or tax professional.
Should you take your income from Social Security as early as possible? Or wait to get the maximum benefit? Whatever you decide will impact your odds of "success" in retirement. Here's an example of someone anticipating $3,000 per month at full retirement age of 67. Taking it at age 62 results in a 30% reduction to $2,100 per month in benefits. And if they postpone to age 70, they will get a 24% increase to $3,720 per month in benefits. Every retirement plan will look different, and a one-size-fits-all solution does not exist. Health, longevity, employment, tax diversification, retirement assets, and goals contribute to this decision. Taking it too early could result in running out of money while you are alive. Taking it too late could cause your retirement assets to diminish too quickly. Make sure your plan accounts for these variables! disclosure: Thrivent financial advisors and professionals have general knowledge of the Social Security tenets. For complete details on your situation, contact the Social Security Administration. See thrivent.com/social for more information.
Should you take your income from Social Security as early as possible? Or wait to get the maximum benefit? Whatever you decide will impact your odds of "success" in retirement. Here's an example of someone anticipating $3,000 per month at full retirement age of 67. Taking it at age 62 results in a 30% reduction to $2,100 per month in benefits. And if they postpone to age 70, they will get a 24% increase to $3,720 per month in benefits. Every retirement plan will look different, and a one-size-fits-all solution does not exist. Health, longevity, employment, tax diversification, retirement assets, and goals contribute to this decision. Taking it too early could result in running out of money while you are alive. Taking it too late could cause your retirement assets to diminish too quickly. Make sure your plan accounts for these variables! disclosure: Thrivent financial advisors and professionals have general knowledge of the Social Security tenets. For complete details on your situation, contact the Social Security Administration. See thrivent.com/social for more information.
Many retirees move all their investments into cash because of the risk of losing what they have built over their lifetime. By taking that risk, they are also increasing the risk of outliving their savings and losing the value of their money to inflation. This is a normal response to the hard work of saving over your working years by adding an element of security. However, it is necessary to have a financial plan to ensure your decisions align with your long-term goals and risks. Here are some things to consider with that financial plan: 1. Make sure it accounts for your goals and all potential risks to your plan. Your savings needs to outlive you, not the other way around. 2. Does it plan on short, mid, and long-term needs? How do those buckets turn into an income for you? 3. Consider the lifetime tax implications of how/where you are investing. See thrivent.com/social for more information.
Many retirees move all their investments into cash because of the risk of losing what they have built over their lifetime. By taking that risk, they are also increasing the risk of outliving their savings and losing the value of their money to inflation. This is a normal response to the hard work of saving over your working years by adding an element of security. However, it is necessary to have a financial plan to ensure your decisions align with your long-term goals and risks. Here are some things to consider with that financial plan: 1. Make sure it accounts for your goals and all potential risks to your plan. Your savings needs to outlive you, not the other way around. 2. Does it plan on short, mid, and long-term needs? How do those buckets turn into an income for you? 3. Consider the lifetime tax implications of how/where you are investing. See thrivent.com/social for more information.
"I'm going to wait to save for retirement. Ten years from now, I will get started." Understandably, this is a common perspective. Why would you want to save for your future when you will likely make more later? Here are some numbers on why that decision can make a massive difference over your working years. Scenario 1: If you invest $7,000 per year, ($583.33 per month) with a hypothetical 7% annual return over 45 years, you would accumulate $2,061,714. Scenario 2: Start ten years later, and you would have accumulated $997.094. You are only contributing $70,000 less! Time in the market and compound growth can make saving for goals very attainable! See thrivent.com/social for more information.
"I'm going to wait to save for retirement. Ten years from now, I will get started." Understandably, this is a common perspective. Why would you want to save for your future when you will likely make more later? Here are some numbers on why that decision can make a massive difference over your working years. Scenario 1: If you invest $7,000 per year, ($583.33 per month) with a hypothetical 7% annual return over 45 years, you would accumulate $2,061,714. Scenario 2: Start ten years later, and you would have accumulated $997.094. You are only contributing $70,000 less! Time in the market and compound growth can make saving for goals very attainable! See thrivent.com/social for more information.
Good news from the IRS for 2024! You will be able to contribute $7,000 per year to IRAs and $23,000 for 401K. That is a $500 increase for both. That may not seem like much, but long term it makes a big difference! Catch-up contributions will remain the same for both. See thrivent.com/social for more information.
Good news from the IRS for 2024! You will be able to contribute $7,000 per year to IRAs and $23,000 for 401K. That is a $500 increase for both. That may not seem like much, but long term it makes a big difference! Catch-up contributions will remain the same for both. See thrivent.com/social for more information.
Here are some common mistakes I see when individuals pick out investments in their retirement accounts. 1. Only choosing last year's "winners." For example, in 2020 China-based equities were the top sector returning almost 30%. If you took this strategy, this investment was down nearly 22% the following year while the rest of the market did well. 2. Your portfolio only appears to be diversified. This is like choosing multiple funds that all invest in the same things. 3. Trying to time when the market will crash by putting investments into cash. Most people's natural tendency is to sell when the market is doing poorly, which can lead to missing out on market recoveries. Avoiding these three mistakes can benefit your long term savings! See thrivent.com/social for more information.
Here are some common mistakes I see when individuals pick out investments in their retirement accounts. 1. Only choosing last year's "winners." For example, in 2020 China-based equities were the top sector returning almost 30%. If you took this strategy, this investment was down nearly 22% the following year while the rest of the market did well. 2. Your portfolio only appears to be diversified. This is like choosing multiple funds that all invest in the same things. 3. Trying to time when the market will crash by putting investments into cash. Most people's natural tendency is to sell when the market is doing poorly, which can lead to missing out on market recoveries. Avoiding these three mistakes can benefit your long term savings! See thrivent.com/social for more information.