Categories: Financial

Why Trusts are Good Teaching Opportunities for Financial Advisors

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Trusts are a great teaching opportunity for financial advisors and Forex traders alike. They open clients up to a range of options and provide a way to grow and protect their assets. Trusts can enable advisors to help clients by offering more personalized services that go beyond buying and selling stocks and bonds. They can also help traders manage their risk and diversify their portfolios, while simultaneously helping to shelter profits and protect both clients and advisors from tax liabilities. All in all, trusts are a powerful and useful tool for both clients and advisors and offer financial advisors an excellent teaching opportunity.

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Categories: Income

Why Do Roth IRAs Have Income Limits? Explained

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Roth Individual Retirement Accounts (IRAs) have income limits so that the account holders can access the tax advantages associated with the accounts. Roth IRAs are funded with after-tax contributions, but earnings growth is not taxed as long as the funds remain in the account. By ensuring that most of the individuals taking advantage of this type of retirement account are lower- or middle-income earners, Congress has sought to protect the tax-free status of growth and distributions from the account. Additionally, as with all IRAs, the contribution limits are designed to prevent individuals from accumulating too much wealth while also ensuring that no single person accumulates enough to be excluded from Social Security benefits.

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Categories: Income

Traditional IRA Income Limits: What You Need to Know

A traditional IRA is a retirement savings plan that offers tax advantages to help individuals save for retirement. The amount of money that an individual can contribute to a traditional IRA is limited by the Internal Revenue Service (IRS) each tax year. For 2021, the income limit for contributing to a traditional IRA is $124,000 for single taxpayers and $196,000 for married couples filing jointly. Individuals with higher incomes are still eligible to make contributions to a traditional IRA, but any contributions over the income limit are subject to a tax penalty.

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