5 Resolutions to Grow Your Money in 2024, #184
With every new year comes a list of resolutions to make this one the best yet. However, a lack of planning leaves most of these goals unfinished. On this episode, I’m sharing five financial resolutions to help you grow your money in 2024 and the follow-through steps to help make them possible.
You will want to hear this episode if you are interested in...
Opening a high-yield savings account [1:28]
Investing the money in your HSA [7:16]
Putting your money in a Roth account [10:09]
Getting a better handle on your finances [12:47]
Making charitable donations [14:10]
Get ready for high-yield savings
Looking to grow your money in 2024? One of the best options is opening a high-yield savings account or a money market fund that offers between 4 and 5% interest annually. Begin by deciding between the two and, if you already have accounts with major brokerage firms like Charles Schwab, Fidelity, or Vanguard, opt for their money market funds for seamless integration.
Setting up a taxable brokerage account online takes less than 10 minutes, and linking it to your bank account enables easy transfers. Within two to three days, your funds should be in the default money market fund, earning the desired interest. If using Schwab, there's an extra step of purchasing a higher-yielding fund, such as Schwab's value advantage fund. However, if you prefer a simpler route, websites like bankrate.com list high-yield savings accounts with similar interest rates. Open an account, connect your bank, and enjoy increased returns on your savings without the need for additional investment steps.
The Roth advantage
Another great resolution for financial success in 2024 is a Roth account. With the current tax plan set to expire in 2026 and uncertainties surrounding the 2024 election, taking advantage of potential tax-free growth in a Roth account is a strategic move. The options available include a Roth IRA, allowing contributions up to $6,500 if you're under 50 or $7,500 if you're over 50. Remember, the deadline for contributions for the previous year is April 15, and there are income limits to consider. If you find yourself exceeding those limits, a Roth 401(k) could be a viable alternative, especially if you're self-employed or your employer offers one. Contributions to a Roth 401(k) are not restricted by income, and for 2024, the limits are $23,000 for those under 50 and $30,500 for those over 50.
An additional option worth exploring is a Roth conversion, where you pay taxes at your current rates on the converted amount. This move could be advantageous if you anticipate higher tax rates in the future. Consulting with your financial advisor or CPA is crucial in determining the right strategy for your specific circumstances. Assess your current tax bracket, and if you're in a 22% bracket or lower, a Roth conversion may make sense, providing potential tax savings over the long term. Whether it's opening a Roth IRA, adjusting your 401(k) election, or scheduling a meeting with your financial advisor for a Roth conversion, taking action now can position you for financial success in the face of changing tax landscapes. Listen to this episode for more on growing your money in 2024!
Resources Mentioned
Retirement Readiness Review (use code RETIRE25 for 25% off!)
Subscribe to the Retire with Ryan YouTube Channel
Connect With Morrissey Wealth Management
www.MorrisseyWealthManagement.com/contact