Les Szarka, CFP®, ChFC®'s Latest Posts
Election Day and Your Money
Election Day is here, and the big question on everyone’s mind is: How will the results impact your finances and investments? 🗳️
Les Szarka, CEO of Szarka Financial, shares insights on the potential market and economic reactions to this unprecedented election cycle. From stock market volatility to long-term investment strategies, here’s what you need to know.
Topics covered in this video:
📈 Historical market trends on election days
📊 Key factors shaping the financial landscape post-election
🤔 Why uncertainty fuels volatility—and how to navigate it
Originally aired November 5, 2024.
If you have any questions or need personalized financial advice, don’t hesitate to contact Szarka Financial.
WATCH: Retirement Taxes: Essential Tips to Avoid Costly Mistakes
When you enter retirement, taxes might be the last thing on your mind. However, understanding how your retirement income is taxed is crucial to avoid unexpected financial burdens. Les Szarka, CEO of Szarka Financial, shares insights and tips on managing taxes in retirement to ensure a financially secure future.
Understanding Taxable Income in Retirement
Many retirees assume that without a regular paycheck, taxes are a thing of the past. Unfortunately, this is not the case. The IRS considers most forms of retirement income as taxable. This includes Social Security, pensions, traditional IRAs, and even annuities. The key is knowing which types of income are taxable and at what rates.
Different Income Sources and Their Tax Implications
- Social Security: Depending on your total income, up to 85% of your Social Security benefits can be taxable.
- Pensions: Generally, pension income is fully taxable.
- Retirement Accounts: Withdrawals from traditional IRAs and 401(k)s are taxed as ordinary income.
- Roth IRAs: Distributions are usually tax-free.
- Annuities: These can be partially taxable depending on whether they were purchased with pre-tax or post-tax dollars.
Strategic Tax Planning Effective tax planning involves strategically managing your income sources. Les Szarka recommends a proactive approach, such as planning which accounts to draw from each year to minimize your tax bracket. For instance, you might want to draw from taxable accounts first or use Roth conversions strategically.
The Importance of Professional Advice Given the complexity of retirement taxes, working with a financial advisor can be invaluable. An advisor can help you navigate the rules, stay updated with tax laws, and create a plan that minimizes your tax liabilities while maximizing your income.
Conclusion Taxes in retirement can be complicated, but with careful planning and the right strategies, you can significantly reduce your tax burden. Stay informed and consult with financial experts like Les Szarka to ensure your retirement is financially secure.
For more in-depth advice and real-life stories from Les Szarka, check out our latest video on YouTube and subscribe for regular updates on financial planning and retirement strategies.
For personalized advice, consider reaching out to Szarka Financial.
WATCH: 3 Financial Tips for Those Newly Single
Navigating life after a significant change, such as divorce or the loss of a spouse, can be overwhelming, especially when it comes to managing finances. Les Szarka, CEO of Szarka Financial, provides three essential tips to help you regain financial control and ensure stability during this challenging time.
1. Manage Your Cash Flow
The first step is understanding your new cash flow. Significant life changes can drastically alter your income. For instance, if you’re a widow, you might lose a portion of social security or pension income. If you’re divorced, you might be adjusting to a single income. It’s crucial to assess your monthly expenses and compare them with your current income to ensure you can comfortably cover your bills.
2. Assess Your Housing Situation
Next, evaluate your housing situation. Consider whether it’s feasible to maintain your current residence. If you own a home, think about the costs of property taxes, utilities, and maintenance. In many cases, selling the house and finding a more affordable living situation might be the best decision, especially if you’re ‘house rich but cash poor.’
3. Take Inventory of Your Assets
Lastly, take a thorough inventory of your assets. This step is vital whether you’ve inherited everything or are dealing with divided assets post-divorce. Understanding your financial position will help you make informed decisions about your future lifestyle and financial goals.
Bonus Tip: Update Your Legal Documents
Ensure your legal documents reflect your current situation. This includes updating your will, trusts, and beneficiary designations. Many people forget to remove ex-spouses from these documents, which can lead to complications.
Conclusion
Adjusting to life as a newly single individual is challenging, but with these tips from Les Szarka, you can navigate your financial future with confidence. For personalized advice, consider reaching out to Szarka Financial.
MONEY TALKS: Understanding Current Economy and Market Trends
Navigating the Current Economic Landscape: Insights from Money Talks
In this latest episode of Money Talks, hosts Les and Alex Szarka delve into the complexities of today’s economic and market conditions. From job reports to inflation rates, their discussion sheds light on how these factors impact our daily lives and financial decisions. Here’s a comprehensive breakdown of their insights and what it means for you.
The Job Market: More Part-Time, Less Full-Time
Les and Alex kick off the episode by scrutinizing the latest jobs report, which reveals a notable shift: while 270,000 part-time jobs were added, the economy lost over 600,000 full-time positions. This shift reflects broader changes in the labor market, driven by inflation and the rising cost of living.
Inflation: A Closer Look
While official figures show a decrease in inflation from its peak, Les points out that real-world costs for essentials like car insurance, food, and energy remain high. This ongoing rise in living expenses continues to strain household budgets, despite the seemingly positive inflation numbers.
Consumer Sentiment and Spending Habits
Consumer optimism is waning, and this is critical for the economy. As consumer sentiment dips, spending patterns shift, with more people relying on credit cards to make ends meet. The alarming rise in credit card delinquencies and total debt, now surpassing a trillion dollars, indicates potential trouble ahead.
Stock Market Dynamics
The stock market presents a tale of two cities. While the S&P 500 shows an average rise of 15%, this growth is concentrated in a handful of tech stocks. The Dow Jones, with its broader representation, tells a different story with only a 2% increase. This disparity highlights the fragile nature of the market’s apparent strength.
Looking Ahead: Predictions and Concerns
Les and Alex discuss the potential for a soft or hard economic landing. They express cautious optimism for a gradual slowdown but acknowledge the uncertainties that lie ahead, particularly with the upcoming elections and potential interest rate cuts.
Staying informed and adaptable is crucial in navigating today’s economic landscape. Whether you’re managing personal finances or investments, understanding these market trends can help you make more informed decisions. Tune into Money Talks for regular updates and expert analysis.
SEMINAR: What Is the SECURE Act 2.0?
Unlocking the Benefits of SECURE Act 2.0: Join Our Upcoming Seminar
As retirement planning evolves, staying informed about the latest legislative changes is crucial. The SECURE Act 2.0, a significant law passed in 2022, offers new opportunities to enhance your retirement savings. We are excited to invite you to a comprehensive seminar led by Les Szarka, CFP®, ChFC®, and CEO of Szarka Financial, where you’ll learn how these changes can benefit you.
Event Details:
Date: Monday, June 10
Time: 7:00pm – 8:00pm
Location: Westlake Porter Public Library, Porter Room
Sponsored by: AAII Cleveland Chapter
Why You Should Attend
The SECURE Act 2.0 introduces several key provisions designed to help Americans save more effectively for retirement. Whether you’re just starting to build your retirement nest egg or looking to maximize what you’ve already saved, this seminar will provide valuable insights tailored to your needs.
Key Topics Covered:
- Automatic Enrollment in 401(k) Plans: Learn how new automatic enrollment rules can help you save effortlessly.
- Employer-Matched Student Loan Payments: Discover how your student loan repayments can now contribute to your retirement savings.
- Flexible Retirement Fund Options: Explore the expanded choices for your retirement accounts, including new Roth options.
- Emergency Savings Accounts: Understand the benefits of the new emergency savings accounts and how they can protect your retirement funds.
- Hardship Withdrawals: Get to know the expanded reasons for penalty-free withdrawals, ensuring you can access your funds when needed.
- Charitable Contributions from IRAs: Learn about the improved ways to give to charity directly from your IRA.
- 529 Plan to Roth IRA Conversions: Find out how you can convert unused 529 college savings funds into a Roth IRA.
About the Speaker
Les Szarka, CFP®, ChFC®, is the Chief Executive Officer of Szarka Financial and a seasoned financial expert with years of experience helping individuals and families achieve their financial goals. Les will break down the complexities of the SECURE Act 2.0 into easy-to-understand language, ensuring you leave with actionable strategies to boost your retirement savings.
Who Should Attend?
This seminar is perfect for:
- Young professionals starting their retirement savings journey.
- Mid-career individuals looking to enhance their current retirement strategies.
- Retirees seeking to optimize their savings and understand new withdrawal options.
- Anyone interested in learning about the latest retirement saving opportunities.
How to Register
Don’t miss this opportunity to gain crucial knowledge about the SECURE Act 2.0 and how it can benefit your retirement planning. Click the link below to register and secure your spot at the seminar.
REGISTER TODAY FOR THIS FREE EVENT!
Final Thoughts
Navigating the changes in retirement laws can be challenging, but with the right guidance, you can make the most of these new opportunities. Join us on June 10th for an informative and empowering session that will help you take control of your retirement future.
Stay tuned for more updates and financial tips by following our blog. We look forward to seeing you at the seminar!