Ask KT & Suze Anything: Do My HSA Expenses Ever Expire?
Feb 27, 2025
auto_awesome
In this lively discussion, listeners explore the intricacies of managing HSAs and IRA growth rates. Suze sheds light on the benefits of charitable contributions while breaking down the essential differences between Lady Bird deeds and living revocable trusts. Strategies for navigating retirement portfolios and the importance of careful financial planning take center stage. Plus, a fun quiz on Roth IRA contributions adds a twist, enhancing understanding of retirement planning complexities. Financial wellness is just a conversation away!
Establishing an emergency savings account is fundamental for financial security, shielding individuals from unforeseen circumstances like job loss or medical crises.
Regularly reviewing retirement portfolios and exploring conversion options, such as traditional to Roth IRAs, is essential for optimizing growth and managing tax liabilities effectively.
Deep dives
Emergency Savings as Financial Security
Establishing an emergency savings account is essential for achieving financial security. It serves as a foundational tool that can protect individuals from unexpected life events, such as job loss or medical emergencies, thereby providing peace of mind. For instance, participating in programs like the Ultimate Opportunity Savings Account offered by Alliant Credit Union encourages individuals to save consistently, which can also yield attractive interest. The emphasis is placed on being proactive with your finances to ensure resilience in unstable times.
Evaluating Investment Performance
It is crucial to regularly review the performance of retirement portfolios to ensure they meet expected growth rates. A case presented involved an individual whose inherited IRA had shown minimal growth over a decade, raising concerns about its effectiveness. By comparing the returns to market averages, it was clear that the investment strategy was underperforming significantly, suggesting that a change or transfer to a different investment firm may be necessary. This example underscores the importance of making informed decisions and seeking better financial guidance to optimize retirement funds.
Understanding Tax Implications of Retirement Accounts
The podcast discussed the intricacies of converting traditional IRAs to Roth IRAs, especially for individuals nearing required minimum distributions (RMDs). It highlighted how these conversions can be strategically used to minimize tax burdens and maximize retirement planning benefits. For example, individuals who are in lower income tax brackets can benefit from converting funds while managing their tax exposure. Furthermore, options like qualified charitable distributions (QCDs) were explored as ways to make tax-efficient withdrawals from retirement accounts.
For this Ask KT & Suze Anything edition, Suze answers your questions about IRA growth rates, charitable contributions, and funding your trust. Plus, learn what a “Lady Bird” deed is and so much more!
Protect your financial future with the Must Have Docs: https://bit.ly/3Vq1V3G Get your savings going with Alliant Credit Union:https://bit.ly/3rg0Yio Get Suze’s special offers for podcast listeners at suzeorman.com/offer Join Suze’s Women & Money Community for FREE and ASK SUZE your questions which may just end up on the podcast. Download the app by following one of these links: