Provident Wealth Advisors

Here's to another year of Rocking It as the Amazing Mom you are! We hope your special day is full of love,
joy and precious memories in the making.
Happy Mother's Day,
from all of us at Provident Wealth Advisors!

WHAT SHOULD I DO WITH MY OLD 401(k)?

Most people will change jobs several times before retiring. The question is, what do you do with your old 401(k) when you leave a job? In the years 2014-2016, 41% of people cashed out at least part of their 401(k) when leaving a job, and 85% of those people drained the balance entirely! However, cashing out your old 401(k) is rarely the best option. Not only will you be hit with a heavy tax penalty, you'll also be greatly reducing any future compound interest.

The 4 most common ways to handle your old 401(k) are as follows:

1. Cash it out.
2. Leave it with your old employer.
3. Roll it into your new employer's plan.
4. Roll it into an IRA.

In this video, Dina Siracusa, Vice President of Provident Wealth Advisors, LLC, speaks with Erin Kennedy, Director of Communications for Brookstone Capital Management, about the best (and worst) options for your old 401(k).

If you've recently changed jobs and would like help figuring out what to do with your old 401(k), please feel free to contact us at 281-466-4843 or visit our website at providentwealthllc.com.

IS THERE ANY REASON TO USE A TRADITIONAL IRA?

We are currently living in a historically low tax rate. It makes more sense to pay your taxes now, while they're low, rather than take a tax deduction, especially since the Tax Cuts and Jobs Act is set to sunset in 2025.

Ed Slott, who is currently referred to as "America's IRA expert" recently told industry experts that "an IRA is just an IOU to the IRS." Slott says he doesn't see any benefit to using a traditional IRA right now because tax rates are so low. In this video below, Dina Siracusa, Vice President of Provident Wealth Advisors, LLC, speaks with Erin Kennedy, Director of Communications for Brookstone Capital Management, about why she agrees with Ed Slott.

If you'd like to learn more about whether contributing to tax-deferred or tax-free accounts makes sense for you, please feel free to contact us at 281-466-4843 or visit our website at providentwealthllc.com.

STOP USING THE S&P 500 AS A BENCHMARK

When we hear about the stock market, it's often about how the S&P 500 is performing. The S&P 500 has been on a rally lately, which is why some of us look at our portfolio and wonder why it's not up the same amount. In this video, Dina Siracusa, Vice President of Provident Wealth Advisors, LLC, and Erin Kennedy, Director of Communications for Brookstone Capital Management, break down why you don't want to see a lot of movement in your portfolio (up or down), because huge swings might not be in line with your risk tolerance.

We know that diversification is important when it comes to long-term financial success, but market history has proven that a well-diversified portfolio will almost certainly underperform broad markets and most individual asset classes in the short-term.

At Provident Wealth Advisors, LLC, we always consider long-term factors when it comes to your financial success. We start with a comprehensive financial plan that takes your unique goals and risk tolerance into account. With a financial plan in place, you're more likely to stick with it, instead of making costly, knee-jerk decisions in response to short-term movements in the market.

To create a unique financial plan that suits your needs, please contact us at 281-466-4843 or visit our website at providentwealthllc.com.

ONE OF THE TOUGHEST TRANSITIONS IN RETIREMENT: BECOMING A SPENDER VERSUS A SAVER

Only one-third of retirees are comfortable spending their retirement money. Most would rather live off of Social Security, pensions, or income from part-time work, rather than spend down their nest egg. It is a delicate balance in retirement: you don't want to compromise your quality of life, nor do you want to run out of money.

Dina Siracusa, Vice President of Provident Wealth Advisors, LLC, specializes in helping people change their mindset in retirement. She explains her action plan to Erin Kennedy, Director of Communications for Brookstone Capital Management, which entails:

1. Creating a Spending Plan
2. Assessing Fixed Income Sources
3. Bridging the "Retirement Gap"

A holistic financial plan includes sustainable income sources that allow you to feel comfortable spending (or even growing!) the money you've worked so hard to accumulate. This kind of planning is what we specialize in at Provident Wealth Advisors, LLC.

If you have any questions about designing a retirement lifestyle you can enjoy, please contact us at 281-466-4843 or visit our website at providentwealthllc.com.

4 REASONS TO CONSIDER A ROTH CONVERSION NOW

There may never be a better time to open a Roth account. Roth IRAs offer tax-free earnings growth, and as Dina Siracusa, Vice President of Provident Wealth Advisors, LLC, explains to Erin Kennedy, Director of Communications for Brookstone Capital Management, there are 4 clear-cut reasons to consider investing in a Roth account today:

1. Today's Historically Low Tax Rate: The Tax Cuts and Jobs Act, which reduced federal income tax rates, is set to sunset in 2025.
2. Your Depreciated Portfolio: Pay taxes on a smaller value now, then allow that future growth to happen tax free.
3. Tax Diversification and Control: Roth accounts allow you to have more control over your income and your tax liability.
4. No RMDs: Unlike traditional accounts, Roth accounts have no Required Minimum Distributions.

If you'd like to speak with someone at Provident Wealth Advisors, LLC, about opening a Roth account, or if you'd like to learn how to convert your traditional IRA to a Roth IRA, please contact us at 281-466-4843 or visit our website at providentwealthllc.com.

UNDERSTANDING THE 3 DIFFERENT TAX BUCKETS TO REDUCE YOUR TAXES IN RETIREMENT

Understanding the 3 different tax buckets will give you a huge advantage when it comes to controlling your tax liability in retirement. As Dina Siracusa, Vice President of Provident Wealth Advisors, LLC, explains to Erin Kennedy, Director of Communications for Brookstone Capital Management, strategic planning utilizes a combination of all 3 accounts, including:

1. Tax-deferred accounts
2. Taxable accounts
3. Tax-free accounts

Tax-free accounts have distinct advantages when it comes to saving for retirement. Contributions are made after-tax, but your money grows tax-free. Designing a thoughtful retirement plan must include strategic tax planning and tax diversification.

Our team at Provident Wealth Advisors, LLC, would love to help you figure out the best combination for your financial future. For more information regarding our services, please contact us at 281-466-4843 or visit our website at www.providentwealthllc.com.