It’s the last week of the month, so we’re diving into the listener mailbag for today’s episode! Tune in as Scott answers some listener questions that have recently been sent into the show and see what knowledge you can gain from them. Stick around, because these strategies could be useful for your life or help you avoid financial mistakes in the future.

Here’s what we’ll discuss in this episode:

Mailbag: Should I move my IRA away from a place that charges a 2.5% fee? (1:32) Mailbag: How does paying taxes on Social Security work? (7:44) Mailbag: I just got a raise at work but now I make too much money for a Roth IRA. Where should I invest instead? (13:10) Mailbag: I inherited over 100 acres of land and would like to keep it in the family, but is this the best choice? (17:28)

Want to get in touch?

Web:

Email: office@sierensfinancialgroup.com

Phone: 847-235-6989

Read more and get additional financial resources here:

Check out our YouTube channel: …(read more)

LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

High Fees, Taxes on Social Security, Roth Alternatives, Keep or Sell the Farmland – Mailbag

Welcome to our monthly mailbag edition, where we address our readers’ questions on various financial matters. This month, we received several interesting queries regarding high fees, taxes on Social Security, Roth alternatives, and whether to keep or sell farmland. Without further ado, let’s dive into these topics.

1. High Fees:
Question: I recently discovered that I’ve been paying high fees on my investment accounts. What can I do to reduce these fees and ensure my money works harder for me?

Answer: High investment fees can eat away at your returns, so it’s important to address this issue. Start by carefully reviewing your investment accounts and comparing the fees they charge with those of other providers. Consider moving your funds to low-cost index funds or exchange-traded funds (ETFs) that have a track record of solid performance and lower expense ratios. Additionally, seek the guidance of a fee-only financial planner who can help you assess your portfolio and guide you toward more cost-effective investment options.

2. Taxes on Social Security:
Question: I’m nearing retirement age and curious to know whether my Social Security benefits will be taxed. Can you shed some light on this subject?

Answer: Whether or not your Social Security benefits will be taxed depends on your overall income level. If you file your taxes as an individual and your combined income (adjusted gross income + nontaxable interest + half of your Social Security benefits) exceeds $25,000, a portion of your benefits may be taxed. For married couples filing jointly, the threshold is $32,000. It’s essential to consult with a tax professional to fully understand how your specific situation will be impacted.

3. Roth Alternatives:
Question: I’ve heard a lot about Roth IRAs recently, but I’m unsure whether a traditional IRA would be a better fit for me. Can you explain the differences and help me decide which one is most suitable?

Answer: Roth IRAs and traditional IRAs offer different tax advantages. In a traditional IRA, contributions are typically tax-deductible, and taxes are paid upon withdrawal during retirement. Roth IRAs, on the other hand, are funded with after-tax dollars, meaning you won’t receive an immediate tax break. However, all earnings and withdrawals in retirement from a Roth IRA are tax-free, provided you meet certain qualifications. The decision depends on various factors, such as your current tax bracket, expected tax rates upon retirement, and personal preferences. Consulting with a financial advisor can help you navigate these options and determine the best choice for your circumstances.

4. Keep or Sell the Farmland:
Question: I have inherited some farmland, but I’m uncertain whether it would be more beneficial to keep it or sell it. How can I make an informed decision?

Answer: Deciding whether to keep or sell inherited farmland depends on multiple factors, including your financial goals, the current condition of the land, and your level of involvement in agriculture. Consider evaluating the land’s income potential, if any, and potential tax implications upon selling. Additionally, think about the costs associated with maintaining the property and the potential for future appreciation. Consulting with a financial advisor and real estate professional who specialize in farmland can provide valuable insights to help you make an informed decision.

That concludes our mailbag for this month. We appreciate your questions and remind you that personal finance decisions should always be made in consultation with professionals who have a deep understanding of your unique circumstances. Stay tuned for next month’s mailbag edition, where we’ll address more pressing financial queries.