Cardinal Advisors

Your IRA isn’t just a retirement account. It may also play a role in creating the income you need after your paycheck stops.

In this example, we look at how retirement savings can be structured around an income gap and long-term needs.

Learn more about retirement planning with Cardinal Advisors.

Questions? Email us at [email protected], call us at (919) 535-8261, or visit our website at https://cardinalguide.com/

You sit down at the kitchen table with your tax return, and the number at the bottom is bigger than you expected. You're retired now. Weren't your taxes supposed to go down?

Here's what most people don't realize: once you stop working, you have more control over your taxes than you ever had. But only if you use it.

We see it all the time. Someone turns 73, their first required IRA withdrawal kicks in, and suddenly they're in a higher tax bracket and paying more for Medicare. Nobody warned them.

In our newest video, Tom, Drew, and I walk through how Social Security is taxed, how to avoid surprise Medicare charges, when Roth conversions make sense, and the "widow's tax" that can catch a surviving spouse off guard. I also share how one couple I met with ended up with a raise in retirement just by planning around taxes.

If you've got money in an IRA or 401(k), this one is worth your time.

Open enrollment is coming up. Here's how to check your Medicare drug plan or sign up for one, step by step.

Are you earning enough interest on your savings? 📈 Fixed annuities offer guaranteed high-yield interest rates that beat traditional bank savings accounts—without adding hidden fees or reducing your account balance 🏦✨

If you have money set aside for safety and liquidity, learn how simple fixed annuities can work alongside your other funds to help grow your retirement savings risk-free 🛡️💵

Questions? Email us at [email protected], call us at (919) 535-8261, or visit our website at https://cardinalguide.com/

What is a MYGA annuity, and how does it compare to a bank CD? 🏦 In this video, we explain Multi-Year Guaranteed Annuities (MYGAs) and how they offer fixed interest rates for a set period of time—making them simple, predictable, and easy to understand 📈✨

We share top A-rated insurance companies offering competitive MYGA rates, and discuss why these straightforward financial tools can be a reliable part of your retirement plan 🛡️💵

Questions? Email us at [email protected], call us at (919) 535-8261, or visit our website at https://cardinalguide.com/

You open your bank statement, look at the interest you earned last month, and think, "That's it?"

You know you've got too much money sitting in the bank. But you've also watched the market go up and down, and you're not about to risk money you worked your whole life for. I hear this from folks every week. Many of them almost apologize for it.

There's a middle ground a lot of people have never heard of. It's called a Multi-Year Guaranteed Annuity, or MYGA. It works much like a CD: you pick a term, you get a fixed rate, and it doesn't move with the market. The rates are often higher than what the bank is paying.

Tom, Drew, and I put together a video explaining how MYGAs work, how they compare to CDs, and how to use one without tying up money you might need.

Can kids have a Roth IRA? 👧📈 In this video, we break down how Roth IRAs for minors work, including tax-free growth, contribution rules, and withdrawal guidelines for their long-term financial future!

Key Takeaways 💡
- Traditional IRA Rules Apply: Roth IRAs for minors follow fundamental IRA rules regarding growth, tracking, and distributions. 📜

- Post-Tax Contributions: Contributions are made with post-tax money, meaning you don't pay taxes on those contributions again upon withdrawal. 💵

- Retirement Timeline: Funds are generally designed to stay in the account until age 59½ to grow tax-free (though specific exceptions exist). ⏳

- No Earned Income Required for 530A: Unlike traditional Roth IRAs that require earned income, certain children's accounts (like 530A Trump Accounts) allow parents to build retirement savings from birth! 👶

Frequently Asked Questions ❓

Q: Does a child need earned income to start a Roth IRA vs a 530A account?
A: Standard Roth IRAs require the child to have earned income (like a job or household chores/babysitting), whereas IRC Section 530A accounts allow contributions right from birth without income requirements. 💼👶

Q: When can money be withdrawn from a child's Roth IRA tax-free?
A: Contributions can generally be withdrawn anytime tax-free, but earnings are typically subject to taxes and penalties if taken out before age 59½ unless an exception applies. ⏳

Q: How does tax-free growth benefit a minor over time?
A: Starting an account early gives the funds decades of tax-free compound growth, providing a massive head start on retirement savings. 📊

Questions? Email us at [email protected], call us at (919) 535-8261, or visit our website at https://cardinalguide.com/

Did you know there is a strict hierarchy for who can legally open an IRC Section 530A savings account (Trump Account) for a minor? 👶🏛️ In this video, we break down the legal order of eligibility to ensure you set up the account correctly without making common mistakes!

Key Takeaways 💡
- Legal Priority Order: Federal law strictly defines who has first priority when opening a minor's 530A account. 📜

1. Parents First: Biological or legal parents always have the primary right and priority to establish the account. 👨‍👩‍👧

2. Legal Guardians: If parents are unavailable (e.g., deceased or incapacitated), legal guardians step into priority position. ⚖️

3. Adult Siblings: If neither parents nor legal guardians are available, an adult sibling is next in line. 👦👧

4. Grandparents: Grandparents hold priority if the above family members are unable or unavailable to open the account. 👴👵

Frequently Asked Questions ❓

Q: Can grandparents open a minor's 530A account directly?
A: No, grandparents cannot open the account first if a parent or legal guardian is available. Parents have primary legal priority. 👵👨‍👩‍👧

Q: Why is there a legal hierarchy for opening a minor's account?
A: The law establishes order to prevent duplicate or conflicting account setups by multiple family members for the same child. ⚖️

Q: Can extended relatives contribute to the account once it is opened?
A: Yes! While parents or primary guardians must open the account, grandparents, relatives, and employers can contribute funds afterward. 💵

Questions? Email us at [email protected], call us at (919) 535-8261, or visit our website at https://cardinalguide.com/

How do you fund an IRC Section 530A account (Trump Account) for a child? 👶💵 In this video, we break down the 4 types of contributions allowed under federal law and the rules every family should know!

Key Takeaways 💡
1. Federal Government ($1,000 Seed Money): Eligible newborns born between 2025 and 2028 receive a one-time $1,000 seed contribution from the federal government. 🇺🇸

2. Parents, Grandparents & Individuals: Family members and friends can contribute up to a combined maximum of $5,000 per year per child. 👨‍👩‍👧‍👦

3. Employer Contributions: Employers can contribute up to $2,500 per year tax-free per employee toward dependents' accounts (which counts toward the $5,000 annual limit). 🏢

4. Government Entities & Non-Profits: Qualifying state/local governments and 501(c)(3) charities can also make contributions to support children's long-term savings. 🏛️

Frequently Asked Questions ❓

Q: What is the maximum amount parents can contribute each year?
A: Parents and individuals can contribute up to $5,000 per child per year. If an employer contributes, the total combined non-exempt contribution limit remains $5,000 per child.

Q: Does the $1,000 federal seed money count toward the $5,000 limit?
A: No, the $1,000 federal seed deposit for eligible newborns does not count toward the annual $5,000 contribution cap.

Q: Can employers contribute to a child's 530A account?
A: Yes! Employers can contribute up to $2,500 per year per employee tax-free under IRC Section 128.

Questions? Email us at [email protected], call us at (919) 535-8261, or visit our website at https://cardinalguide.com/

Are you wondering how to qualify for the $1,000 government seed money for newborns? 👶💰 In this video, we outline the exact eligibility rules, age requirements, and key steps parents must take to claim these funds for their child's account.

Key Takeaways 💡
- Eligibility Window: Applies to children born between January 1, 2025, and December 31, 2028. 📅

- Citizenship & SSN Required: The child must be a U.S. citizen with a valid Social Security Number (SSN). 🇺🇸

- Action Required: Funds are not paid automatically—parents/guardians must actively open the account and elect to claim the $1,000 contribution. 🏦

- Ineligible Children: Kids born before 2025 will receive an "ineligible" prompt during setup, though parents can still open and fund accounts manually. 📈

Frequently Asked Questions ❓
Q: What are the requirements for a newborn to qualify for the $1,000 seed money?
A: The child must be a U.S. citizen with a valid Social Security Number born between Jan 1, 2025, and Dec 31, 2028. 🍼

Q: Will the government send the $1,000 automatically?
A: No, parents or authorized guardians must open the account and elect to claim the funds through the setup process. 📲

Q: Can parents open accounts for older siblings born before 2025?
A: Yes! While older children do not qualify for the government's $1,000 trial contribution, parents can still open accounts and fund them independently. 💵

Questions? Email us at [email protected], call us at (919) 535-8261, or visit our website at https://cardinalguide.com/