Planning

Lock Down Your Credit: How Freezing It Can Protect You from Fraud

In an increasingly digital world, protecting your financial information is more critical than ever. One of the most effective tools available to consumers to safeguard their identity and financial accounts is a credit freeze. This article will explore what a credit freeze is, how it works, and why you might want to use one to protect your credit profile from unauthorized access. What is a Credit Freeze? A credit freeze, sometimes called a security freeze, is a service provided by credit reporting agencies that restricts access to your credit report. By implementing a credit freeze, you effectively prevent new creditors…
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Understanding Probate: What It Is, What Assets Go Through It, and How to Navigate It

Understanding probate is part of determining what estate planning strategies to put into place. Many people do not know what probate is other than that they should avoid it at all costs. Before diving into complex and expensive strategies, you should know what it actually is, what it means your for assets, and what it means for your heirs. Probate is a legal process that occurs after a person passes away. It involves validating the deceased person's will (if one exists), settling their debts, and distributing their remaining assets to beneficiaries. Depending on the complexity of the estate, probate can be…
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Understanding Benefit Base vs. Cash Value in an Annuity

Annuities are a staple in retirement planning, offering a mix of benefits that can provide peace of mind in the later stages of life. However, navigating the components of an annuity, particularly the distinction between the benefit base and the cash value, can be confusing. To simplify this, let's explore these concepts using a relatable analogy: a store coupon. The Benefit Base: Your Special Store CouponImagine you receive a coupon from your favorite store. This coupon is not cash; it has no value outside the store. It’s only useful for getting a discount on a future purchase or redeeming a…
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Guide to Market Volatility

It is easy to get caught up in the news cycles when market volatility hits and begin to question your portfolio. Here are some valuable tips for managing market volatility that are useful for investors of all levels:Stay Informed, But Don't OverreactMarket volatility is not generally caused by a single source but a combination of factors:Economic Data: Changes in unemployment rates, inflation, and GDP growth can influence market movements.Geopolitical Events: Political instability, elections, or conflicts can cause uncertainty and market swings.Monetary Policy: Central bank decisions on interest rates and monetary policy often impact investor sentiment.Investor Sentiment: Market psychology plays a…
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Understanding Per Stirpes: A Guide with Examples

Estate planning is a critical process that ensures your assets are distributed according to your wishes after you pass away. One important concept in estate planning is "per stirpes." This legal term, derived from Latin, means "by branch" and plays a significant role in how your estate may be divided among your heirs. This article will explain the concept of per stirpes, provide examples to illustrate its application, and discuss how and where per stirpes can be included in your estate planning documents. Additionally, we will explore the implications of minors inheriting under a per stirpes distribution.What is Per Stirpes?Per stirpes…
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Understanding AGI, Taxable Income, MAGI, and Provisional Income

In the realm of personal finance and taxation, several key terms frequently arise that are crucial to understanding how your income is calculated and taxed. Four of these terms are Adjusted Gross Income (AGI), Taxable Income, Modified Adjusted Gross Income (MAGI), and Provisional Income. Each plays a distinct role in determining your tax obligations and eligibility for various credits and deductions. This primer aims to provide a comprehensive overview of these concepts.Adjusted Gross Income (AGI)Adjusted Gross Income (AGI) is a critical figure in your tax calculations. While you are not taxed on AGI, serves as the starting point for determining…
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Pre-Tax Net Wealth versus After-Tax Net Wealth

comprehending the distinctions between pre-tax net wealth and after-tax net wealth is crucial for accurate financial planning and decision-making. Both metrics are pivotal in understanding one’s true financial position, but they differ significantly due to the impact of taxation.  Consider two households: one had $1,000,000 in traditional IRAs and the other has $1,000,000 in Roth IRA's. While their pre-tax net wealth is the same, they have very different after-tax net wealth. Pre-Tax Net Wealth Pre-tax net wealth refers to the total value of an individual’s assets before any taxes have been deducted. This includes savings in retirement accounts like 401(k)s…
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The Basic Types of Annuities

Annuities are contracts with an insurance company that provide certain benefits. There are many types of annuities out there and the terminology and usage can be confusing. This article provides and overview of the basic types of annuities and their variations. Quick Annuity Primer Base Contract: Every annuity starts with a base contract. The base contract has certain guarantees embedded it such as minimum interest rates, annuitization factors, fees, surrender charges, how the cash value can be invested. Riders: Some annuities have the option to add riders. Riders are additional features that can be added to the base contract to provide additional…
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Protecting Yourself from Common Scams: Tips and Strategies

In an increasingly digital world, scams have become more sophisticated and prevalent. Understanding these schemes and learning how to protect yourself is crucial. This article outlines some of the most common scams that are used to de-fraud honest people of their hard-earned money. Here, we provide detailed descriptions of each scam and practical tips on how to safeguard yourself.General Tips to Protect Yourself from ScamsEducate Yourself: Stay informed about the latest scams and how they operate.Be Skeptical: If you receive unsolicited calls, emails, or messages, be very skeptical.Secure Personal Information: Protect your personal information online and offline.Use Strong Passwords: Create…
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Preparing for Long-Term Care: Statistics and Financial Insights

When planning for your financial future, determining how to address the potential for a long-term care event will be one of the hardest decisions to make. The topic is particularly complex given the uncertainty around whether or not you will even have a long-term event; and if you do, how long will it last, what will it cost, and when will it occur. The decision is complicated even further by the higher cost of insurance or the high cost of long-term care planning strategies.The purpose of this article is to educate on the prevalence of long-term care and provide context on…
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