It’s been quite the year. With record inflation, a shift over to bear market territory, and the threat of a recession, there was a lot of ground to cover. So, as 2022 comes to a close, we're looking back at the top 10 articles of the year from Wealth Enhancement Group, chosen by our readers.
Browse our Best of 2022 articles below to revisit your personal favorites or discover something you may have missed.
Transferring Wealth to Family to Lower Taxes
People often only view estate planning as a way to divvy their assets after passing away. Transferring assets upon death is a viable strategy, but it could lead to a hefty tax bill without careful planning. When it comes to estate planning, you may find that it's more about what you leave behind while you're still here rather than what you leave after you're gone. And it's with this idea in mind you may explore alternative strategies for transferring wealth to your family and heirs.
Does the Raise in Fed Interest Rates Affect Your Financial Plan?
Interest rates have a close relationship with inflation. Central banks (like the Federal Reserve) raise and lower interest rates as necessary to either stimulate a nation's economy or curb rampant inflation. As inflation rises, banks raise interest rates because every dollar a bank lends out is worth more than the dollar they get back in repayment. Higher interest rates enable banks to compensate for that lending "loss" due to inflation. But how does this affect your financial plan?
Understanding Inflation: What Causes Inflation and How it Impacts You
Inflation is a crucial factor affecting your investments and the future success of your financial plan. While inflation has been relatively contained for the past several decades, it has recently spiked to levels not seen since the early 1980s. Here, we'll define inflation and its causes, provide insight into its potential effect on financial assets, and compare historical periods of inflation in the United States.
Factoring Inflation Into Your Retirement Plan
Inflation is arguably the most frustrating threat to your retirement nest egg because it's completely out of control. You worked hard for your money and want it to work just as hard for you in retirement. But unchecked inflation has the potential to weaken your retirement savings significantly. The good news, however, is there are things you can do to take on inflation. By implementing these five strategies, you can soften the blow of inflation and be better prepared down the road.
Are Financial Advisors Worth It?
You work hard to save for retirement and want to ensure you're doing everything you can to grow those savings, hopefully. That's why you must know how your financial advisor adds value above and beyond what you might accomplish. To do that, you'll want to use information from independent, objective sources.
4 Social Security Secrets the SSA Won't Tell You
For many Americans, Social Security is a crucial component of retirement. The problem, however, is that there is a lot that people need to learn about Social Security, and the Social Security Administration (SSA) offers little-to-no guidance or assistance. However, financial advisors can not only provide advice, but we can also help you uncover a few secrets about the best ways to maximize Social Security benefits as you approach retirement.
Tax Implications of a Roth Conversion
There’s a lot to like about Roth IRAs. After all, who wouldn’t like the chance to have the money in your account grow tax-free? However, most retirement assets are held in tax-deferred accounts like Traditional IRAs. So, to take advantage of the potential tax-free growth that Roth IRAs offer, you need to get your money into a Roth IRA. And since there are limits to how much you can contribute to a Roth IRA, that can be easier said than done. That’s where Roth conversions come in.
Traditional IRA vs. Roth IRA: What Are the Tax Benefits?
One of the most common ways people invest and save for retirement today is through an individual retirement account (IRA). The two most common types of IRAs are Traditional and Roth. While they share some advantages (like offering tax-deferred growth of capital over the years that you contribute and invest), they each have unique nuances—especially regarding how they're taxed.
4 Ways to Bridge the Health Care Gap in Early Retirement
Health care is bound to be one of your biggest expenses in retirement. As your needs increase with age, so do your costs, and if you need more preparation, you could be left trying to figure out how to pay for it all. Paying for health care on your own can get very expensive, so you'll need to devise a plan.
Bear vs. Bull Market: Understanding Market Cycles
Like most things in the natural world, investment markets are cyclical. Just as seasons change, the investment markets also cycle through periods of rising and declining value. Since many factors contribute to these market cycles, it's impossible to predict how long they will last. But it can be beneficial to understand them so you can be better prepared to make informed decisions.