Tag: Roth IRA
By Noon on Monday. A guide to building a solid financial foundation after landing your first Job (EP. 20)

By Noon on Monday. A guide to building a solid financial foundation after landing your first Job (EP. 20)

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For young adults stepping into their first jobs, financial planning is the cornerstone of long-term success. But where should you start?

In this episode of Money Metaphors, host Jason Coddington unpacks the essentials of financial planning for young professionals, using relatable analogies and practical advice to make the journey less daunting. Jason dives into key strategies to help young adults build a solid financial foundation. From creating a robust cash reserve to maximizing employer retirement plans, this episode offers actionable insights that will set you up for smart financial decisions early on.

Jason explores: 

  • Build a Cash Reserve: Secure 2-3 months of living expenses to safeguard against emergencies, forming a financial “moat” around your future goals
  • Maximize Employer Retirement Plans: Take full advantage of employer matching in retirement plans—after ensuring your cash reserve is in place
  • Consider a Roth IRA: Unlock significant tax advantages with a Roth IRA, making it a key part of your long-term financial strategy
  • Manage Debt Wisely: Balance debt repayment with saving and investing for financial stability and growth
  • Establish Good Financial Habits: Consistent savings and smart financial decisions lay the foundation for long-term success
  • And much more!

Don’t miss this episode of Money Metaphors, where you’ll discover a clear path to your goals—from your first paycheck to a prosperous retirement. 

Resources:

Connect with Jason Coddington:

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Navigating the Maze of Individual Retirement Accounts (Ep. 8)

Navigating the Maze of Individual Retirement Accounts (Ep. 8)

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Confused about choosing between Traditional and Roth IRAs? 

Dive into clarity with our latest Money Metaphors episode, where Jason Coddington of Coddington Wealth Advisors navigates the world of Individual Retirement Accounts (IRAs). This episode delivers targeted insights for families and small business owners, breaking down the complexities of Traditional and Roth IRAs. Discover essential strategies, tax benefits, and planning tips to make informed decisions about your retirement savings.

Key Highlights:

  • Introduction to IRAs: Journey through the history of IRAs, highlighting their pivotal role in retirement planning since the 1970s
  • Traditional IRA Insights: Diving into Traditional IRAs, tax savings, tax-deferred growth, and the implications of withdrawals, along with critical age-related rules
  • Roth IRA Explained: Transitioning to Roth IRAs, discover the benefits of post-tax contributions and tax-free withdrawals, as well as their role in younger investors’ portfolios and estate planning
  • Tax Minimization Strategies: Explore how to reduce taxes in retirement, focusing on those over 73, through methods like Qualified Charitable Distributions
  • Innovative Financial Moves: Uncover how converting funds from a 529 plan to a Roth IRA can revolutionize your financial planning
  • And much more!

 

Resources:

  • Downloadable Flow Charts: To assist with understanding IRAs and their implications.
  • IRS Publication 580: Detailed guidelines on IRA contributions and distributions.

Connect with Jason Coddington:

 

Ira and Roth disclosures:

Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

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