Barbrey & Associates

05/27/2022

Should You Open a Custodial Roth IRA for Your Child?

Compound interest is an extremely effective financial instrument. Even a small sum of savings may grow into a significant nest egg when you have a lengthy time horizon to let money grow. Parents who understand this notion frequently use it to benefit their children by making investments on their behalf while they are young.

Opening a custodial Roth IRA on their behalf is one option that can provide dividends for many years.

These accounts aren’t only for high school seniors. Your child (or grandchild) can also benefit if they are under 18. Here’s more on what a custodial Roth IRA is, and why it can be a huge help later in life...

Read more here:
https://barbrey-associates.com/2022/05/27/should-you-open-a-custodial-roth-ira-for-your-child/

05/19/2022

What Is a Permanent Life Insurance Policy?

When you help support a family, you’re likely to consider how your family would be cared for if you pass. This is really the purpose of life insurance. However, there are several types of life insurance.

Permanent life insurance, which includes whole life insurance, is one of the options available, and it is precisely what the name implies: permanent. If the insurance is still in effect when you pass, it will pay a death benefit regardless of whether you live to be 65 or 105. That is what distinguishes it from the other major form of coverage, term life insurance. The term will expire, generally with no monetary value.

Buying permanent life insurance is similar to purchasing a home. You accumulate equity in your property with each mortgage payment until you buy it entirely. Whether you sell the house or keep it for your family, it is an asset you own. When you pay your permanent life insurance payments, you are accumulating value in your policy while you are still living, and your insurance will ultimately become a valuable asset that you own. Because of these factors, permanent life insurance is often more expensive than term insurance for the same person....
https://barbrey-associates.com/2022/05/17/permanent-life-insurance/

05/11/2022

New Post!

Here Are Some Ways to Put Your Extra Savings to Work

If you’ve managed to save a substantial sum of money in your savings account, congratulations! However, if your stockpile exceeds what’s required for an emergency fund, you should take a step back and ask yourself: Is there a better method I might be putting my money to work toward my financial goals?

While there’s nothing like the comfort and peace of mind that comes from knowing you’ve got enough cash to weather any unexpected life events, stashing too much cash isn’t always a sensible approach. Because after you hit the 1 year’s worth of expenses in your savings (Stop) because after a certain point it becomes simply inefficient.

Just because you keep your savings in cash doesn’t mean you’re risk-free. In reality, you must consider the dangers of inflation as well as the foregone rewards that you are foregoing by not putting your money to work. Money sitting in a normal savings account now generates almost nothing in the way of interest – just 0.06 percent per year as of March 2022. That is far from sufficient to match the historical pace of inflation. That implies that every year you keep your money in a savings account, you lose purchasing power...

Read more: https://barbrey-associates.com/2022/05/11/extra-savings/

05/03/2022

Recently, there has been a lot of discussion in the media regarding rising interest rates. In addition to unsettling the stock market, the focus on increased rates has frightened many potential homeowners who face larger mortgage payments, as well as those looking for a vehicle who may face higher monthly payments.

Given these and other unpleasant effects, it appears that higher rates are bad and lower rates are desirable. In actuality, the truth is somewhere in the middle. Furthermore, gaining a better grasp of interest rates might assist you in putting current news into context. Here’s everything you need to know. https://barbrey-associates.com/2022/05/03/increasing-interest-rates/

04/21/2022

Last year, more than 125 million Americans received a tax refund, one of the few benefits of having to submit your taxes. And, with an average return of just over $2,500, there’s a chance you’ll have some cash in your bank account.

Finally, what you do with your tax return is determined by your goals and priorities. Continue reading for more ideas on what to do with your refund.

1. Treat yourself

Yes, you heard that right. Setting aside a portion of your return for a splurge is not only justified, but it may also help you remain on track with your other goals. So, whether it’s a luxury restaurant for your next date night or a fun excursion with friends, your return may be spent on something enjoyable without depleting your daily budget. In fact, anytime you earn a windfall, consider putting away a percentage for discretionary spending so that you may enjoy part of that money now while still using it for other purposes ...

Last year, more than 125 million Americans received a tax refund, one of the few benefits of having to submit your taxes. And, with an average return of just over $2,500, there's a chance you'll have some cash in your bank account.

04/11/2022

When Does a Roth Conversion Make Sense?

If you already have money in a conventional IRA, there are a few scenarios in which a Roth conversion can make sense. This is because a Roth conversion allows you to pay tax now, locking in what you owe Uncle Sam while avoiding any future taxes on that money. It makes sense to utilize a conventional IRA if you want to reduce taxes today and pay them later. However, in many circumstances, it is preferable to reverse this and pay taxes immediately by converting to a Roth.

So, when is a Roth conversion a good idea? Here are a few crucial events to think about...

https://bit.ly/3rfAcTS

03/31/2022

In this week's post (Retirement Planning) Know the right time to retire, these are some questions to ask yourself. Read it here

Know the right Time to Retire: Questions to Ask Before You Decide

01/21/2021

The hardest part of personal finance isn’t investing, taking risk or managing taxes. It’s balancing lifestyle with the ability to consistently save towards your goals. Get this right and you’ll be unstoppable

11/11/2020

There is no greater debt of gratitude we owe as Americans than to those who have worn the uniform of the U.S. throughout history and fought for the freedoms we enjoy.

May God bless & care for all our veterans, those still serving in our military & their families!

07/04/2020

Wishing everyone a happy 4th of July!

07/01/2020

Less Stress This Summer !

The coronavirus pandemic has given us a lot of reasons to be stressed these days. The psychology of stress can affect your approach to finances and how we prepare for milestones such as retirement. Keep in mind how learning to deal with it can not only help your overall well-being but your financial strategy as well.

And while you may not be able to take a ‘normal’ vacation, one of the best things we can do for ourselves is focusing on our physical and mental health. Through all the tips and tricks out there, find what works for you. Don't be afraid to try new ways to take a break from the stress that will leave you feeling refreshed and revitalized.

Here are some articles I found insightful. Please feel free to share them with your network.

Time Management Is About More Than Life Hacks
https://bit.ly/2NOYZdo

3 Steps To Experiencing 145 Fewer Days Of Financial Stress
https://bit.ly/3eRGgKh

Market update and signs of progress
https://bit.ly/3eSX6bt

Confused yet? Is exhaustion setting in? Our circumstances are indeed both confusing and exhausting. Data is volatile, the markets are chaotic, policymakers are scrambling, and consumers are gingerly beginning to re-introduce themselves to the outside world. What to do?