IN THE NEWS

I’M 47, LEFT MY JOB AND WANT TO CONVERT MY $130,000 TRADITIONAL IRA TO A ROTH. WHAT’S THE BEST TAX STRATEGY?

Retirement reporter Alessandra Malito assembled wonderful advice for her MarketWatch article about converting from a Traditional IRA to a Roth IRA.

You should keep your 401(k) separate from the IRA with after-tax contributions to avoid a taxable event for each conversion, said Erika Safran, founder and principal at Safran Wealth Advisors. But "back-door Roth conversions" for the IRA with after-tax dollars would be "ideal," she said. (Back-door Roth accounts are, simply put, made of converted dollars that were once after-tax contributions in a traditional account.)

Learn more from additional financial experts in the article at Morningstar.com!

SAFRAN WEALTH ADVISORS – ANNUAL MARKET REVIEW 2023

This report features world capital market performance for the past year. It was a year that defied expectations by many accounts. After posting double-digit losses in 2022, stocks soared and bonds rebounded in 2023 with most of the gains occurring in the last quarter.

ARE YOU TAKING AN RMD? 10 SMART THINGS YOU CAN USE IT FOR RIGHT NOW.

Beth Pinsker, for MarketWatch, lays out several valuable options to consider as you navigate an RMD. I was happy to contribute a few thoughts of my own. Here’s a fun option:

"Take a vacation and enjoy your well-earned money," says Safran.

But there is so much more to learn in the full article at Morningstar.com!

HERE’S WHAT TO KNOW WHEN GIFTING A STOCK OR OTHER INVESTMENT THIS HOLIDAY SEASON

You may be surprised to learn that a gift, in the form of an investment, would be well-received by 7 out of 10 Americans. I shared some thoughts with Dylan Croll, a markets reporter at Yahoo Finance.

“When an individual receives securities as a gift, the potential growth is hopeful. It might be something more in the future," Erika Safran, founder of Safran Wealth Advisors, told Yahoo Finance. "Perhaps if an individual comes from a family or low income earners, chances are that that monetary gift will be put to use, pay a bill, pay off a debt, pay for tuition….But for someone who may not need the money, receiving the securities creates a greater future opportunity."

Get the full scoop at Yahoo Finance.

hear from the experts on navigating bankruptcy

There are many challenges surrounding bankruptcy. I was asked by LawFirm.com to contribute my perspective on its affects and potential alternatives.

“Generally, filing for bankruptcy is an action of last resort… It can affect a person’s future employment, and they may be considered a higher-risk employee in multiple industries.”

Read more of what I, and other experts, had to say at LawFirm.com.

AMERICANS REVEAL THEIR NO. 1 FINANCIAL REGRET, BUT ADVISERS SAY THEY HEAR THESE HORRIBLE MISTAKES THE MOST

Have you ever wished you could change a past financial decision? As MarketWatch’s Zoe Han explains for Morningstar, most Americans experience financial regret.

"This is what life is," said Erika Safran, financial planner and founder of Safran Wealth Advisors based in New York City. "Just because it didn't work out, doesn't mean it wasn't worth pursuing."

Learn about people’s top financial regrets at Morningstar.com.

YOUR MONEY: How to break up with your bank

Changing financial institutions may seem daunting, but you may have good reason to make the switch, as noted by Chris Taylor, Senior Correspondent for Reuters.

The main problem for breaker-uppers: “Banking relationships are sticky,” says Erika Safran, a financial planner in New York City.

Could changing banks be a good financial decision for you? Read more at Reuters.com.

MASTERCLASS: 529 PLANS

A pleasure to sit down with Asset TV Masterclass discussing 529 plans alongside Anthony Bamonte of Invesco US and Tricia Scarlata of J.P. Morgan Asset Management.

While some rules surrounding education savings may have changed, saving early, with consistent contributions, still holds value. Click to watch!

regulation changes to inherted iras

Erika Safran, CFP ® Principal at Safran Wealth Advisors, discusses the changes to inherited IRA accounts that came with the passing of the Secure and Secure 2.0 Acts and what they mean for account beneficiaries. Click to watch!

Target-date funds are taking a beating along with everything else – ‘Take a step back,’ advisers say

Due to market volatility, many investors are concerned about risk exposure regarding their target-date funds. Alessandro Malito included my advice in her article for MarketWatch:

“One would have said it was too late three months ago, and now we are pretty much worse than we were three months ago,” Safran said. “Is it too late? That’s the big question. My response to that is going to be the same as it is in real life. If it is something you should have done and haven’t done, go ahead and do it.”

Learn what others have to say at MarketWatch.com.

‘Rebalancing during this pullback is a great idea’: Ask your financial adviser these 6 questions before reacting to stock-market volatility

Investors are keeping close tabs on the stock market as we have reached a new inflation high. Among a few other topics, MarketWatch’s Andrew Keshner asked me to weigh in on this question: What happens if I keep my money in index funds?

“Investing in index funds is a vehicle for investing, not an investment strategy.”

Read through the six questions and gain some expert advice as you navigate the current market at MarketWatch.com.

safran wealth advisors quarterly report

Click the button below to view our report for the first quarter of 2022.

Navigating Life Insurance for Estate Planning

Have you considered your life insurance options? Have you begun the process of estate planning? MoneyGeek’s Nathan Paulus will help answer key questions to get you started. I provided commentary as a part of MoneyGeek’s “Expert Insight” panel.

“Life insurance is important during the years that your earnings and family are growing. Insurance serves for income replacement and ideally, the amount of insurance required is the amount needed to replace future life expenses including college funding.”

Learn from more experts at MoneyGeek.com.

ATM cards let you withdraw money easily from your bank account, but have more limits than debit cards

Sophia Acevedo, for Business Insider, walks through the pros and cons of ATM cards and debit cards, and I provided a few thoughts on managing bank cards.

Erika Safran, CFP® and principal at Safran Wealth Advisors, LLC, says a bank account with a card may be ideal for someone young or who doesn't have a credit card yet. If you get an account with a card that lets you spend, Safran points out you'll have a valuable feature because it's difficult to live without a credit card.

Read more at Business Insider, and learn the ins and outs of bank cards to figure out which is best for you (or for a young one learning to manage their money).

Remodeling your home? Here’s how to pay for it.

Home improvement has been a hot trend throughout the COVID-19 pandemic. Journalist Haisten Willis explains various options for financing such a large investment.

Safran adds that construction loans can also include private mortgage insurance and that there are ongoing evaluations and appraisal costs during the project. For those who use a construction loan, she advises refinancing to a conventional mortgage once the renovation project is finished.

Which method is best for you? Head on over to The Philadelphia Inquirer to learn more.

how credit cards work: THE ULTIMATE GUIDE TO USING CREDIT CARDS FOR FIRST-TIME USERS

The MoneyGeek team has developed a comprehensive guide for first-time credit card seekers. I was interviewed to contribute some “Expert Advice.”

“To preserve a good credit rating, consider having the minimum amount due automatically deducted from your bank account. You avoid the risk of missing a payment, and your credit report will reflect you are in good standing.”

Interested in your first credit card? There’s more to learn at MoneyGeek.com.

THE BEST TRAVEL CREDIT CARDS OF 2021

Who doesn’t love a reward? Reporting for MoneyGeek, finance writer Holly D. Johnson explores the best options for credit cards with travel perks. I answered a couple of questions under “Tips From the Pros.”

“Getting a travel rewards card with high annual fees will likely offset the benefit of the rewards unless the charges on the card are high enough to merit rewards that exceed the annual fee.”

So, which credit cards are the most rewarding? Read the article at MoneyGeek.com to find out.

INTERVIEW WITH RUSSIAN TELEVISION INTERNATIONAL NEWS

Child Tax Credit payments average $428/month; 82% of parents getting it want it extended, survey finds

In his piece for Grow by Acorns + CNBC, Shawn M. Carter takes a look at the positive affect Child Tax Credit has had on American families.

“It’s not surprising that most parents with young children want the Child Tax Credit extended,” says Erika Safran, a certified financial planner and principal at Safran Wealth Advisors. “It makes sense to support a program that directly benefits you and your family. Having cash on hand [if your] current income and assets are insufficient is what makes this program valuable.”

Check out the article to see how parents are using the credit, and find out if you’re eligible to participate.

I’m 62, live in Missouri but work in Florida and have $1.8 million — ‘have I positioned myself well?’

A 62-year-old man with $1.8 million sought retirement advice from MarketWatch. Allesandra Malito responded to his query with valuable questions and options to consider, and I contributed some advice in the process.

Ultimately, “your success will be a function of your savings, investments and your cash flow,” said Erika Safran, a certified financial planner and principal of Safran Wealth Advisors.

If you are thinking about your retirement plan, there’s more to learn in this article at MarketWatch!

The top 10 U.S. cities for retirees who want a low cost of living

Deciding where to live is “one of life’s top decisions,” as Shawn M. Carter shares in his article on Grow by Acorns + CNBC. After contributing to his piece on U.S. retirement funds last fall, I was glad to follow up with him on retirement living.

Think about “what you want your future life to look like,” Safran says. “Make changes in your current life to meet financial goals, so you can live where you want to live.”

Read the full article to learn about out the top 10 U.S. cities for retirees who want to maintain a low cost of living.

Crypto interest accounts offer rates as high as almost 9%: Here’s what you need to know before opening one

Cryptocurrency is hot these days, but beware: Earning interest on your cryptocurrency is not the same as saving your money in cash, as I expressed to Sofia Pitt for her Grow by Acorns + CNBC article.

“You have to recognize you could lose 50% of your investment in just a few days,” [Erika Safran] says. “[It’s] a high-risk, high-reward investment ... and you should never invest any money in cryptocurrency that you are not willing to lose.”

There is much to learn about crypto interest and investments, so check out the article to get started.

the steps to financial adulthood

Join me, May 5 at noon, for the New York Public Library’s (NYPL) Money Matters webinar, where I will be presenting “The Steps to Financial Adulthood.”

Your financial success relies on smart decisions, as well as good financial habits. Are you confident about your finances? Topics covered include emergency funds, savings and expenses, credit card debt, tax withholding, investment allocation, retirement plans, insurance selection, and necessary estate documents. Erika Safran, CFP® shares important financial principles to help you live the life you envision for yourself.

Register for this event at Eventbrite.com!

Advisors Shop Smart For Freelancers By Tapping Online Platforms

Connecting with freelance artists via online marketplaces (i.e. Fiverr, DesignCrowd, etc.) can be an efficient, cost-effective approach to your design needs. I shared with Morey Stettner, for Investor’s Business Daily, about the history of my firm’s logo, which was created by a freelancer located in the Philippines over 10 years ago.

In 2009, Erika Safran used Logobirds.com to create a new logo for her firm. After picking a freelancer, Safran worked to refine the final image with the designer, whom she later learned lived in the Philippines. "We never talked," Safran said. "It was all by email. But there was good communication and the result was beautiful.”

Read the article at Investor’s Business Daily to learn more about the benefits of hiring the online freelance community.

HOW GAMESTOP FOUND ITSELF AT THE CENTER OF A GROUNDBREAKING BATTLE BETWEEN WALL STREET AND SMALL INVESTORS

Last week marked an historic time in Wall Street history as GameStop (GME) became one of the hottest stocks on the market. I caught up with Edward Helmore to discuss the incredible event for his article in The Guardian.

“I think the millennials will temporarily be rewarded, and a short-squeeze is definitely conceivable,” the investor Erika Safran at Safran Wealth Advisors said. “I think it will be an education for some and a good story for everyone else.”

Get the full scoop at TheGuardian.com!

RMDs are back: What advisors need to know in 2021

I interviewed with Donald Jay Korn for Financial Planning on the return of required minimum distributions (RMDs) after their momentary haitus last year.

Erika Safran, principal at Safran Wealth Advisors in New York, believes in one-time RMDs but prefers acting sooner than later. “Most of our clients’ RMDs are taken at the beginning of the year and moved to taxable accounts,” she says.

Learn what you need to know about RMDs from Financial Planning via investingplanner.com!

‘THERE’S ALWAYS A LOT OF HYPE AROUND IPOS’: READ THIS BEFORE BUYING AIRBNB STOCK

Andrew Keshner published a piece on MarketWatch about the potential risk of investing in newly publicly trading companies. The temptation to invest in a company that you know and appreciate is understandable, but…

“To learn about a well-known company from an investing perspective, it’s wise to look at the company’s fundamentals,” Erika Safran, the founder and principal of Safran Wealth Advisors in New York, has recommended.

Read the full article for more advice at MarketWatch.com.

HERE’S HOW TO HANDLE AN UNEXPECTED WINDFALL OF MONEY

A surprise inheritance will likely stimulate a handful of questions. Sarah O’Brien has pieced together some valuable information in her CNBC article about how to navigate this situation, and I was happy to contribute.

“If you are under age 59½ and you inherited the IRA from a spouse, if you put it into an inherited IRA and need to access the money, it won’t be subject to the 10% early withdrawal penalty,” said CFP Erika Safran, principal of Safran Wealth Advisors in New York. “That decision would depend on whether the spouse needs the money right away,” she said.

Don’t be caught off guard. Read the full article at CNBC.