The Motley Fool

MARCH 23, 2024

Mutual fund giant Vanguard has officially crunched the numbers. There comes a point when the gains made on your previous gains are far greater than the benefit of adding more funds to the account in the meantime. You can contribute up to $23,000 of your wages to a 401(k) account in 2024, all of which is tax deductible.

Mutual Funds 246

Mutual Funds Taxes Investing Accounting 246

The Motley Fool

JANUARY 4, 2024

With IRAs, investors can choose from a vast array of stocks, bonds, mutual funds, and other investment vehicles. Consider a scenario where you have a specific investment strategy, such as focusing on growth stocks or diversifying through exchange-traded funds (ETFs).

Accounting 130

Accounting Mutual Funds Exchange-Traded Funds Education 130

The Motley Fool

APRIL 1, 2024

Image source: The Motley Fool/Upsplash As both a financial writer and a Certified Financial Planner™, I'm very familiar with all of the various types of bank accounts and other interest-bearing instruments Americans can use to store their cash. household has $10,618 in their checking account. But there are two other things to mention.

Accounting 130

Accounting Mutual Funds Banks Active Investors 130

The Motley Fool

AUGUST 31, 2023

A custodial account could be the solution. Custodial accounts are a special type of brokerage account that allows parents (or any adult) to invest on behalf of a minor child. And while UGMA accounts are available in all states, there are a couple (Virginia and South Carolina) that don't allow UTMA accounts.

Accounting 130

Accounting Mutual Funds Banks Education 130

The Motley Fool

APRIL 22, 2024

Fortunately for me, my full-time employer sponsors a tax-advantaged retirement account, and offers a contribution-matching program. Not to mention, my employer only allows access to those funds once a person is no longer employed by them. After doing so, however, I could buy whatever ETFs, stocks, or mutual funds I wanted.

Mutual Funds 245

Mutual Funds Exchange-Traded Funds Accounting Taxes 245

The Motley Fool

FEBRUARY 24, 2024

Image source: Getty Images One of the benefits of saving for retirement in a 401(k) is potentially getting access to money in that account that's put in by your employer. So if your employer will match 100% of up to $3,000 in contributions, the minimum amount you should aim to put into your account is -- you guessed it -- $3,000.

Mutual Funds 239

Mutual Funds Funds Accounting Assets 239

The Motley Fool

APRIL 19, 2024

Millions of us have 401(k) accounts , sponsored by our employers or former employers. And hundreds of thousands, if not millions, of us actually have accounts worth $1 million or more. That's not the norm -- millionaire accounts only made up about 1.8% of 401(k) accounts administered by Fidelity, for example.

Mutual Funds 246

Mutual Funds Taxes Accounting Funds 246

The Motley Fool

FEBRUARY 26, 2024

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. Instead, opt for a low-fee index fund if your 401(k) plan offers it.

Mutual Funds 245

Mutual Funds Investing Accounting Funds 245

The Motley Fool

MAY 14, 2024

She believes you should build an emergency fund before investing in a CD, and that CDs can be a good complement to a savings account but not a replacement for one. He suggests putting your money into a mutual fund instead of a CD. Savings accounts, on the other hand, come with variable interest rates.

Mutual Funds 130

Mutual Funds Accounting Stock Market Stock Market 130

The Motley Fool

APRIL 1, 2024

Image source: The Motley Fool/Upsplash There are many ways you can invest your money, from traditional options like stocks and mutual funds to more recent options like cryptocurrency. While some millennials may be investing more than they should in crypto, the biggest issue is that only 47% are using retirement accounts.

Mutual Funds 130

Mutual Funds Exchange-Traded Funds Investing Taxes 130

The Motley Fool

APRIL 25, 2024

The Vanguard 500 Index ETF (NYSEMKT: VOO) is one of the most popular ETFs (exchange-traded funds) , and for good reason. Vanguard made a name for itself by offering low-cost index mutual funds and later expanded its popular offerings to ETFs. The nice advantage ETFs have over mutual funds is that they allow for intraday trading.

Mutual Funds 246

Mutual Funds Funds Exchange-Traded Funds Portfolios 246

The Motley Fool

JANUARY 22, 2024

You can also contribute to a taxable brokerage account regardless of where the money comes from. 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).

Mutual Funds 246

Mutual Funds Taxes Accounting Assets 246

The Motley Fool

MARCH 17, 2024

Bonus offer: unlock best-in-class perks with this brokerage account Read more: best online stock brokers for beginners This year, 401(k)s max out at $23,000 for savers under age 50 and $30,500 for those 50 and over. You may have heard that mutual funds are the best place to put your money if you have a 401(k).

Mutual Funds 130

Mutual Funds Funds Accounting Portfolios 130

The Motley Fool

DECEMBER 30, 2023

Bonus offer: unlock best-in-class perks with this brokerage account Read more: best online stock brokers for beginners The basic idea is that you'll withdraw 4% of your retirement savings during your first year of retirement and give yourself cost of living adjustments to keep up with inflation in subsequent years.

Mutual Funds 246

Mutual Funds Stock Market Stock Market Accounting 246

The Motley Fool

SEPTEMBER 23, 2023

You probably already know about typical retirement savings accounts like the IRA and 401(k). But you may have access to a special retirement account that could supercharge your savings. And if you make even a dollar of self-employment income, you're eligible to open an account and contribute. Image source: Getty Images.

Accounting 130

Accounting Taxes Mutual Funds Funds 130

The Motley Fool

NOVEMBER 24, 2023

Indeed, the 401(k) retirement account has been hailed as a game-changer since its inception over 40 years ago, establishing an effective means of saving for retirement once pension plans were no longer up to the task. Such employer-sponsored plans aren't necessarily your best first choice for building a retirement fund, however.

Mutual Funds 246

Mutual Funds Taxes Exchange-Traded Funds Accounting 246

The Motley Fool

FEBRUARY 19, 2024

Bonus offer: unlock best-in-class perks with this brokerage account Read more: best online stock brokers for beginners 1. Self-directed brokerage account This option is for billionaires who want to do all of their investing themselves. There's usually no minimum amount of money needed to open a self-directed brokerage account.

Hedge Funds 239

Hedge Funds Mutual Funds High Net Worth Individuals Mergers and Acquisitions 239

The Motley Fool

OCTOBER 13, 2023

So if you don't have access to one, you may be thinking of opening an individual retirement account (IRA) instead. Bonus offer: unlock best-in-class perks with this brokerage account Read more: best online stock brokers for beginners 1. Rather, you get until the following year's tax-filing deadline to finish funding your account.

Mutual Funds 246

Mutual Funds Taxes Accounting Funds 246

The Motley Fool

MAY 13, 2024

Image source: The Motley Fool/Upsplash Individual retirement accounts (IRAs) are often recommended by financial experts. Read more: unlock best-in-class perks with one of these brokerage accounts What kind of returns do IRAs offer? What's important is that you're putting away money for retirement through tax-advantaged accounts.

Mutual Funds 130

Mutual Funds Taxes Accounting Returns 130

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. So if you invested $250 per month in a brokerage account and earned an average annual rate of return of 10%, you'd have about $295,000 in 25 years.

Mutual Funds 246

Mutual Funds Financing Finance Consultants 246

The Motley Fool

NOVEMBER 5, 2023

The company says that if you have a mutual fund account and your stock dividends are automatically reinvested in new shares, then each reinvestment increases the "tax basis" in the mutual fund. When you sell some of your shares in the mutual fund, the reinvested dividends reduce your taxable capital gains.

Taxes 243

Taxes Mutual Funds Accounting Funds 243

The Motley Fool

MARCH 17, 2024

Here's a rundown of the three main types of accounts self-employed individuals can use to save and invest. Plenty of options It's also worth noting that in addition to these three types of accounts, self-employed individuals are eligible to use a traditional or Roth IRA to save. Additionally, thanks to the SECURE Act 2.0,

Mutual Funds 246

Mutual Funds Taxes Accounting Funds 246

The Motley Fool

JANUARY 25, 2024

of Americans managed to save at least $1 million in their retirement accounts by the end of last decade, according to EBRI estimates based on the latest Federal Reserve Survey of Consumer Finances. While there are some cases where target-date funds use index funds and keep costs low, that's not always true.

Mutual Funds 246

Mutual Funds Exchange-Traded Funds Accounting Funds 246

The Motley Fool

MARCH 19, 2024

And if you don't have a 401(k), you can always save for retirement in an account you open yourself with a brokerage firm. But if you're going to use a 401(k) as your retirement plan of choice, then it's important to make the most of that account. These are common in mutual funds as well as target date funds.

Mutual Funds 130

Mutual Funds Accounting Funds Banks 130

The Motley Fool

DECEMBER 1, 2023

There's no employer match One big benefit of saving in a 401(k) is that you'll often get free money in your account in the form of an employer match. When you invest in an index or mutual fund, you don't get total control over your investments. Here are a few reasons you may want to pass on your company's 401(k). The reason?

Mutual Funds 130

Mutual Funds Accounting Funds Assets 130

The Motley Fool

DECEMBER 4, 2023

But if you have the option to save in one of these accounts, it pays to do so. With an IRA that you have to actively fund yourself each month, you risk overspending and not being able to move money over at all. But like target date funds, the fees associated with mutual funds can be high.

Mutual Funds 130

Mutual Funds Funds Assets Accounting 130

The Motley Fool

MARCH 29, 2024

On the other hand, there are some benefits of investing in employer-sponsored retirement plans like 401(k), 403(b), and 457 accounts that aren't quite as well-known. Automated, low-cost investing 401(k) plans take the guesswork out of investing, and usually do it with low-cost mutual funds. Here's a few you need to know.

Mutual Funds 130

Mutual Funds Taxes Accounting Funds 130

The Motley Fool

MARCH 26, 2024

Most often, they'd direct 10% into employer-sponsored retirement accounts and another 10% into a savings account. Also, set up an automatic monthly transfer to your savings account. Many financial experts suggest building an emergency fund with enough to pay for three to six months of living expenses.

Mutual Funds 240

Mutual Funds Financing Finance Assets 240

The Motley Fool

MARCH 3, 2024

For one thing, it's easy to fund a 401(k). All you have to do is tell your employer what percentage of your wages you want to contribute, and voilà -- funds get routed into your account automatically each month. Some of those mutual funds, such as target date funds, can carry relatively high fees.

Mutual Funds 130

Mutual Funds Exchange-Traded Funds Taxes Accounting 130

The Motley Fool

FEBRUARY 28, 2024

Your investment options are limited Most 401(k) plans offer a limited set of ETFs or mutual funds where you can invest your contributions. While some plans may offer great funds with low expense ratios, most don't. And even when the plan offers low-fee funds, you might prefer a different investment.

Mutual Funds 130

Mutual Funds Taxes Education Accounting 130

The Motley Fool

SEPTEMBER 9, 2023

You might manage your money passively, for example, by automating some transactions -- such as automatically paying some bills and contributing to retirement accounts. You'll see the two in the world of mutual funds, as an example. Think of a classic index fund, such as one that tracks the S&P 500 index.

Passive Investors 130

Passive Investors Mutual Funds Investors Exchange-Traded Funds 130

The Motley Fool

MARCH 30, 2024

Why the Roth IRA is different The Roth IRA has one important feature that separates it from just about every other tax-advantaged retirement savings account: You can withdraw your contributions tax-free and penalty-free at any time, for any reason. However, any investment returns you've accrued in the account must remain in it.

Mutual Funds 130

Mutual Funds Funds Taxes Accounting 130

The Motley Fool

DECEMBER 12, 2023

Consistently funding a 401(k) plan is a great way to set yourself up for a secure retirement down the line. It's also important to occasionally take a deeper dive into that account. So if you haven't yet contributed enough to your account to claim your 2023 match in full, try to increase your contribution rate immediately.

Mutual Funds 246

Mutual Funds Accounting Banks Funds 246

The Motley Fool

APRIL 22, 2024

The big money is coming The approval of spot Bitcoin exchange-traded funds (ETFs) in January not only marked another milestone for the cryptocurrency but also opened the doors for a new set of buyers.

Mutual Funds 246

Mutual Funds Exchange-Traded Funds Pension Funds Assets 246

The Motley Fool

JANUARY 11, 2024

But it won't be right for everyone, and there are a few reasons you might want to avoid this type of account. You may not have as many investment options The 401(k) is one of the most restrictive types of accounts when it comes to choosing where you invest. Image source: Getty Images.

Mutual Funds 130

Mutual Funds Accounting Assets Taxes 130

The Motley Fool

APRIL 9, 2024

of retirement savers had accumulated over $1 million across their accounts as of the end of the last decade, according to estimates from the Employee Benefit Research Institute, based on the latest Federal Reserve Survey of Consumer Finances. Finding funds with a low expense ratio will have a massive impact on your overall returns.

Mutual Funds 246

Mutual Funds Accounting Funds Financing 246

The Motley Fool

JANUARY 7, 2024

If you fell short on your plans to beef up your retirement account in 2023, it's OK. Record the balances of all your retirement accounts. This includes 401(k)s, IRAs, and health savings accounts (HSAs) if you use these for long-term savings. for every dollar you put into the account, up to a certain percentage of your income.

Mutual Funds 264

Mutual Funds Exchange-Traded Funds Taxes Accounting 264