Football season ended Sunday with the Chiefs winning their first Super Bowl in 50 years. They overcame deficits of at least 10 points in each of their three playoff wins. They are the first team to trail by at least 10 points in three consecutive games they won by at least 10 points. Pretty amazing.
If your child or grandchild has a job, consider opening a Roth IRA for them. By putting money in a Roth IRA, they can potentially enjoy decades of tax-free growth on low-tax earnings. In retirement, they can withdraw the money tax-free as well. If they need the money earlier, under the right circumstances, they can also withdraw contributions to the account.
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Here are this week’s articles as well as a brief description of each:
1. Do Your Kids Need a Roth IRA? If they have earned income, they should have one. You don’t have to be an adult to have a retirement account. Opening a Roth IRA for kids can help give them a head start on their retirement savings. It can also provide a source of cash for college, homeownership, or other expenses. The account’s earnings can’t be withdrawn without penalty prior to age 59 ½. But the account owner can access contributed amounts earlier without any tax or penalties. This article can help you better understand how these accounts work. You’ll also learn more about the requirements and advantages of such accounts.
2. 5 Common Mistakes That Cause New Habits to Fail. How successful have you been in keeping this year's New Year’s Resolutions? According to this article, somewhere between 81% and 92% of New Year’s Resolutions fail. Why? It’s not easy to change behaviors. This article provides some insights based on the author’s work researching and writing about the science of behavior change. Applying the solution to the first problem – Trying to Change Everything at Once – has helped me successfully establish some new habits.
3. Couples and Money: When Together Is Better. After a few years of marriage, some financial decisions are relatively easy. But when it comes to big picture finances, decisions get more complicated. Strategies that worked for you as individuals can look very different when you approach them as a couple. Areas where working together can help include the following:
· Saving for retirement
· Determining Social Security benefits
· Choosing healthcare coverage
· Managing your taxes
· Maintaining your credit scores
4. Seven Small Things People Use to Decide If They Like You. When we meet someone new, our survival mechanism makes it hard to keep from evaluating and interpreting their behavior. Research shows many of our judgments are based on smaller, subtle things, such as handshakes and body language. In fact, we often form complete opinions based solely on these behaviors. Paying attention to the behaviors identified in this article can help you make a strong impression. Two that I focus on when considering my own behavior:
· How often I check my phone
· Eye contact
5. How Do Your Financial Priorities Stack up With Our Pyramid? Can you only devote a limited amount of time to your finances? If so, this financial pyramid may help you separate your top priorities from the least important ones. What’s at the pyramid’s base? Setting and prioritizing your financial goals. When preparing a financial plan, gaining an understanding of your goals should be an area of focus, especially in the beginning stages.
We hope you find the above posts valuable. If you would like to talk to us about financial topics including your investments, creating a financial plan, saving for college, or saving for retirement, please complete our contact form. We will be in touch. We can schedule a call, a virtual meeting via Zoom, or a meeting at Apprise Wealth Management's office in Northern Baltimore County.
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