The purpose of a hardship distribution is to make available funds in the event of a hardship you are experiencing financially. Most employer sponsored plans provide access to 401K funds regarding a hardship distribution.
Debt can be so overwhelming… Whether it’s student loan debt or credit card debt, it all hurts your wallet the same way. If you want to pay it off, you have to decide between two things… or do you?
When you are in debt, you hear often that you need to spend less money if you ever want to get out of debt. The most frequent phrase used on this side of the argument is the “latte factor”. Basically, this phrase is saying that you should cut out a latte a day to get out of debt or invest in your future. It does not just mean lattes, however, it is talking about any unnecessary expenses. Maybe, you do not need cable anymore because you only watch Netflix and Hulu.
Notching its eighth consecutive quarterly advance, the S&P 500 rose approximately 4.4% in the past three months. What’s more remarkable is the resiliency of the market in the face of events that would historically cause periods of panic, leading to increased volatility as equity markets sell off and investors flock to the safety of bonds. In years past, life altering events typically force the market into disarray; however, despite recent events such as the standoff with North Korea, the multitude of natural disasters, the Charlottesville unrest, Catalan turmoil in Spain and the Las Vegas shooting, the equity markets keep shrugging off every occurrence and continue chugging along. The lack of inflation, steady economic growth, accommodative monetary policy, strong labor market and very strong earnings growth have created a robust tailwind for equities, creating a sense of investor complacency with what would traditionally be viewed as an uncomfortable turn of events.
If asked what comes to mind when thinking of financial planning, many would likely mention topics such as saving for retirement, planning for college, creating strategies for retirement income, or structuring a portfolio with an eye toward maximizing tax efficiency. Indeed, planning for our later years, or saving to accomplish certain goals, tend to be the primary focus for many in financial planning. Equally important, we believe, is the importance of incorporating life insurance strategies into a financial plan that will address specific needs such as providing for loved ones, or ensuring a business’ continuity, if and when one is gone.
The ROTH after tax and the Traditional Pre-tax method of saving is almost identical except for one variable, which is a person’s income tax. A person’s income tax rate will be a key factor in deciding which avenue to take, pre-tax or not.
How Are Personal Income Tax Rates Determined?
An income tax rate is based on the amount of taxable income a person brings in. The higher the taxable income, the higher the income tax rate. A person’s filling status, meaning if they have dependents or other deductions, will directly affect the tax bracket a person falls in. More income, or higher wages equals a hirer tax bracket.
The ROTH after tax and the Traditional Pre-tax method of saving is almost identical except for one variable, which is a person’s income tax. A person’s income tax rate will be a key factor in deciding which avenue to take, pre-tax or not.
How Are Personal Income Tax Rates Determined?
An income tax rate is based on the amount of taxable income a person brings in. The higher the taxable income, the higher the income tax rate. A person’s filling status, meaning if they have dependents or other deductions, will directly affect the tax bracket a person falls in. More income, or higher wages equals a hirer tax bracket.