Two books are intended to help people who are worried about their finances in the midst of this painful pandemic. One suggests ways of improving your situation right now. The other focuses on ensuring that when and if you retire, your accounts will be in solid shape.
They are both worthwhile, though for complex problems, you will need to look elsewhere.
For decades there’s been a festering retirement crisis in America.
Congress has repeatedly tried to resolve the retirement crisis via stop-gap, incremental efforts. It has created new retirement accounts, like Roth IRAs to benefit lower income workers, as well as tax-advantaged health savings accounts (HSAs) to help pay healthcare costs.
Take your retirement account and divide it by half. This is the real amount that you have saved for retirement. Taxes can cut your retirement funds in half, according to Ed Slott, the nationally recognized IRA and retirement planning expert, founder of IRAHelp.com and author of the forthcoming book, The New Retirement Savings Time Bomb: How to Take Financial Control, Avoid Unnecessary Taxes and Combat the Latest Threats to Your Retirement Savings.
With little more than a week left to take tax-friendly withdrawals from individual retirement accounts and 401(k)s under the Cares Act, people stung financially or physically by Covid-19 are making last-minute decisions while wading through a thicket of rules that could have an impact on future taxes.
The end of the year is fast approaching, yet there is still time to take charge of your taxes.
While that might seem like something only the wealthy would do, there are also ways for the average American to save money — even if you are part of the 90% who take the standard deduction (which is $12,400 for single filers in 2020).