Kindred Financial LLC

The Backdoor Roth IRA strategy has been gaining a lot of attention — and for good reason.

If your income is too high to contribute directly to a Roth IRA, this strategy may allow you to fund one anyway (legally and strategically).

🔎 Who is it for?
High-income earners who are phased out of making direct Roth IRA contributions.

💡 Why is it valuable?
If you have no existing pre-tax IRA accounts, you may be able to convert contributions with little to no additional tax impact.

⚠️ If you do have traditional, SEP, or SIMPLE IRA assets, the pro-rata rule applies — and that can change the tax outcome significantly.

The attached article breaks down the rules and key considerations. If you’re wondering whether this makes sense for your situation, it’s worth understanding the details.

Disclosure: This summary is provided for informational purposes only and should not be considered tax, legal, or financial advice. Tax rules can vary based on individual circumstances and may change over time. Before making any decisions related to deductions, filing status, or retirement planning, please consult with a qualified tax professional or your financial advisor to determine what is appropriate for your specific situation.

The Backdoor Roth: Is It Right for You? If your income is too high to contribute to a Roth IRA, there's another way in—but it comes with some caveats.

The One Big Beautiful Bill Act has a “senior deduction” boost deduction that could apply to family members! Something to keep in mind to make sure your loved ones are taking advantage of all tax deductions!

If you’re 65 or older — or know someone who is — there’s a new tax break that could help: starting with the 2025 tax year, seniors get an extra **$6,000 standard deduction** (or **$12,000** for couples where both are 65+). ([IRS][1])

This deduction stacks on top of the regular standard deduction, is available whether you itemize or not, and applies until 2028 (unless changed). ([Bipartisan Policy Center][2])

It’s a good idea for eligible seniors — or their caregivers/family — to double-check income thresholds and filing status to see if this could reduce taxable income. For more details on eligibility and how it works, it’s worth reading the full article linked above.

[1]: https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors?utm_source=chatgpt.com "One, Big, Beautiful Bill Act: Tax deductions for working ..."
[2]: https://bipartisanpolicy.org/explainer/the-2025-tax-bill-additional-6000-deduction-for-seniors-simplified/?utm_source=chatgpt.com "The 2025 Tax Bill: Additional $6000 Deduction for Seniors, ..."

Disclosure: This summary is provided for informational purposes only and should not be considered tax, legal, or financial advice. Tax rules can vary based on individual circumstances and may change over time. Before making any decisions related to deductions, filing status, or retirement planning, please consult with a qualified tax professional or your financial advisor to determine what is appropriate for your specific situation

The 2025 Tax Bill: Additional $6,000 Deduction for Seniors, Simplified H.R. 1 introduces a new $6,000 tax deduction for seniors, alongside extensions of key TCJA provisions. Learn how this benefit works, who qualifies, and what it could cost the federal budget.

Does a chart like this put investing into a perspective?

https://www.visualcapitalist.com/sp-500-annual-returns-since-1874/

Disclaimer: Investing involves risks including the potential loss of principal. No strategy or product can assure success or protects against loss. Past performance is no guarantee of future results. Please consider liquidity needs and risk when investing.

Charted: The Pyramid of S&P 500 Returns (1874-2024) In 2024, the S&P 500 surged 23%, setting a series of record highs. We show these returns in a historical context spanning 150 years.

Fascinating to see how the market is dissected by market cycles.
Will the inverted yield curve and interest rate cuts kill the rally?

https://www.visualcapitalist.com/60-years-of-stock-market-cycles/

Disclaimer: Investing involves risks including the potential loss of principal. No strategy or product can assure success or protects against loss. Past performance is no guarantee of future results. Please consider liquidity needs and risk when investing.

Visualizing 60 Years of Stock Market Cycles Stock market cycles often rhyme throughout history, shaped by monetary policy, consumer spending, and herd behavior.

The Magnificent 7 Priced for Perfection.

Can 7 companies drive the performance of the entire market? When do they become too expensive?
https://www.evestia.com/_files/ugd/3d4693_ab508fa67c8644fd97e3666a5b1b7368.pdf

Disclaimer: Please consult your tax professional before implementing any tax strategy. Investing involves risks including the potential loss of principal. No strategy or product can assure success or protects against loss. Past performance is no guarantee of future results. Please consider liquidity needs and risk when investing.

www.evestia.com

Tax Time! Here is a link to a helpful 2024 Tax Guide!

Don't let taxes stress you out this year. Empower yourself with knowledge and make filing a bit less stressful!

Topics that come up a lot this time of year:
1) Self-employed plans (SEP IRA, Solo K Plan)
2) Roth Contribution, am I eligible?
3) Roth Conversions and Backdoor Roth

🚀 📊📝

https://static1.squarespace.com/static/547d09f4e4b0f4bc27de58c2/t/65e2c2661696121d741923cc/1709359719233/Kindred+Financial+2024+Tax+Guide+%281%29.pdf

Disclaimer: Please consult your tax professional before implementing any tax strategy. Investing involves risks including the potential loss of principal. No strategy or product can assure success or protects against loss. Past performance is no guarantee of future results. Please consider liquidity needs and risk when investing.

static1.squarespace.com

Timing the market is hard. Getting out and back in is a giant challenge.

Riding out volatility can be hard if you're looking at your account daily, seeing real dollar drops rattles investors. But knowing is half the battle and learning about the historical occurrences build perspective to become a patient investor.

Study this infographic from Virtual Capitalist to learn more.

Disclaimer: Investing involves risks including the potential loss of principal. No strategy or product can assure success or protects against loss. Past performance is no guarantee of future results. Please consider liquidity needs and risk when investing.

Timing the Market: Why It's So Hard, in One Chart In this graphic, we show why timing the market is extremely difficult, and how it can meaningfully dent portfolio returns.

Let's chat about money markets! Some money market mutual funds are paying 5%+ but are they right for you?

Higher interest rates often mean higher paying short term investments. Money markets and CDs are popular for investors worried about uncertainty (aka risk) or investors with short term liquidity needs.

Understand the difference between money markets and CDs, here's a good article to get you up to speed https://www.nerdwallet.com/article/banking/money-market-vs-cd
A key strategy to think about when investing in CDs is you are locking the money up for a duration (6 month, 1 year, etc...). If interest rates rise during that time you've locked in at a lower rate. If interest rates drop you've locked in at a higher rate.

When using money markets you have liquidity to your money and the yield is around current interest rates, however when interest rates fall so does your yield on your money market.

If your money is in your bank and you're NOT looking to invest it for the long haul, you can find more competitive options in the article below. https://www.forbes.com/advisor/investing/the-best-money-market-mutual-funds/

Disclaimer: Investing involves risks including the potential loss of principal. No strategy or product can assure success or protects against loss. Past performance is no guarantee of future results. Please consider liquidity needs and risk when investing.

10 Best Money Market Mutual Funds Of 2023 How do you choose the best money market mutual funds? It’s hardly an academic question, since you can enjoy a yield averaging 5.16% from the 100 largest money market mutual funds, according to Crane Data. In contrast, the national average yield for bank savings accounts is 0.43%. Here’s a more c...

Monday Education Infographic: As an investor you should learn the rule of 72.

Another thought investing early is a huge advantage.

Visualized: How Long Does it Take to Double Your Money? Since 1949, the S&P 500 has doubled in value 10 times. We show how long it takes to double your money across a range of annualized returns.

Colorado Parents: If you've had a child born or adopted on or after January 1, 2020 in Colorado they are eligible to receive a free $100 contribution to a CollegeInvest 529.

Once you receive the $100 from First Step, CollegeInvest will match your future contributions dollar-for-dollar, up
to $500 per year for the next 5 years. You could receive up to
$2,500 in matching funds!

Click the link to learn more and to sign up.

Disclaimer: Investing involves risks including the potential loss of principal. No strategy or product can assure success or protects against loss. Past performance is no guarantee of future results. Please consider liquidity needs and risk when investing.

CollegeInvest 529 College Savings Plan First Step Program Introducing FIRST STEP, a free kickstarter saving program for Colorado newborns from CollegeInvest, Colorado’s 529 college saving program.

https://www.visualcapitalist.com/the-top-performing-sp-500-sectors-over-the-business-cycle/

I love looking at segments like this, it supports why you should diversify but also understand the economic cycle!

Disclaimer: Investing involves risks including the potential loss of principal. No strategy or product can assure success or protects against loss. Past performance is no guarantee of future results. Please consider liquidity needs and risk when investing.

The Top Performing S&P 500 Sectors Over the Business Cycle We show the best performing S&P 500 sectors over each phase of the business cycle using nearly seven decades of data.