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WATCH: Navigating Inflation, Interest Rates & Stock Trends

WATCH: Navigating Inflation, Interest Rates & Stock Trends

by | Apr 25, 2024 | Alex Szarka, Les Szarka, Money Talks

Join us for this insightful episode of Money Talks where Les and Alex Szarka delve into the complexities of today’s financial landscape. They discuss the critical economic indicators affecting both investors and the general populace, examining everything from the surge in inflation rates to the unpredictable movements of the stock markets in light of current economic trends. Equip yourself with expert knowledge on how to navigate these changes with strategy and insight.

🔹 Key Topics Covered:

Inflation Insights: Delve into recent inflation trends and what future forecasts might hold.

Interest Rates: Decode the Federal Reserve’s policies and their implications for the economy.

Stock Market Analysis: Unpack the causes of recent market fluctuations and key factors for investors to monitor.

Economic Indicators: Analyze vital statistics like employment figures and consumer sentiment to gauge economic health.

🔹 Why You Can’t Miss This Episode:

Expert Guidance: Benefit from the deep expertise of seasoned financial planners, Les and Alex Szarka.

Practical Tips: Discover how recent economic developments could impact your financial planning and investment decisions.

Market Predictions: Receive informed predictions about potential market movements in the upcoming months.

READ: Roth IRA for Kids

READ: Roth IRA for Kids

by | Apr 25, 2024 | Chuck Conrad, Retirement

Small business owners may find it challenging to find ways to provide additional benefits to their children who work for the company. One often overlooked choice is including a Roth individual retirement account (IRA) as part of their compensation, a strategy that offers the potential to benefit both the children and the business.

Small businesses play a significant role in labor markets. They employ 61.7 million Americans, 46.4 percent of all private-sector employees. Over the period from 1995 to the present, small businesses have been responsible for generating 17.3 million net new jobs, which accounts for an impressive 62.7 percent of all jobs created since 1995.1

The Basics of a Roth IRA

A Roth IRA is a tax-advantaged investment account that allows individuals to contribute after-tax income. Unlike in traditional IRAs, contributions to a Roth IRA are not tax deductible, as their advantage lies in the tax-free growth potential and tax-free withdrawals in retirement.

Roth IRA contributions are phased out for taxpayers with adjusted gross incomes (AGIs) above a certain amount. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.

Utilizing a Roth IRA for Compensation

To contribute to a Roth IRA, the working family member must have earned income. This requirement creates a unique opportunity for small business owners to include their children as employees and compensate them accordingly. In this scenario, the fact that the child is likely in a very low tax bracket is an advantage, meaning that a smaller percentage is paid up front.

Building a Foundation for the Future

Not everyone knows that Roth IRA funds can be used for various purposes before the age of 59½, such as purchasing a first home, covering educational expenses, and even paying medical costs. Consistent contributions from a young age can accumulate into a substantial account. Imagine that a child starts working at 8 and continues until 16, and the small business contributes to a Roth IRA. Upon reaching adulthood, the child could have a sizable sum saved for milestones such as purchasing a house or funding a college education.

Seeding Financial Success

Although the initial contributions may seem small, the long-term benefits of including a Roth IRA in a child’s compensation package are significant. It not only establishes a solid financial foundation but also instills valuable lessons about saving, investing, and preparing for the future. By involving a financial professional, parents can ensure that their children receive guidance as they transition into adulthood.

Preparing for the Next Generation

Managing money for the next generation has gained considerable attention in recent years. As businesses and families prepare their financial legacies, strategies such as including a Roth IRA in compensation packages are becoming increasingly popular. By working with a financial professional, families can navigate the complexities of wealth management. If you own a small business, including a Roth IRA in your children’s compensation package could be a game-changer. With the potential for tax-free growth and a range of permitted uses, this strategy can provide numerous benefits and potentially greater financial success.

  1. Advocacy.sba.gov, March 7, 2023

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

READ: New Client FAQs

READ: New Client FAQs

by | Apr 24, 2024 | Retirement

Understanding the Basics: How We Handle Your Financial Services at Szarka Financial


Welcome to the Szarka Financial family! As a new client, you’re likely curious about how we manage your accounts and the behind-the-scenes process. We’ve compiled this blog post to address some of your common questions and serve as a helpful guide you can refer to at any time.

Account Transfers: Patience Pays Off
Transferring accounts to a new financial institution can be slow, often taking several weeks or more, even when everything goes smoothly. Rest assured, we closely monitor every step of the process and will keep you informed. We’ll reach out promptly if you require any additional information or documents. Meanwhile, you are always welcome to contact us for an update on your transfer status.

Account Statements: Keep Them Safe
We provide account statements in electronic and printed formats. Retaining all your statements is essential for tax purposes. When we meet, please bring these statements along with any from other investments you might hold, which will help us discuss your overall financial picture and answer any specific questions you may have.

Transaction Confirmations: Record Keeping Is Key
Each transaction or trade made on your behalf is accompanied by a confirmation, which you should keep for your records. These confirmations are important for tracking activity and necessary for tax purposes.

IRA Contributions and Distributions: Timely Actions
You can make IRA contributions for the previous calendar year until April 15. Once you turn 73, the IRS requires you to take minimum distributions (RMDs) from your IRAs. Our team is here to help you manage these contributions and distributions efficiently.

Withdrawal Options: Flexibility for Your Needs
Szarka Financial offers various withdrawal options. Whether you prefer lump sum or systematic withdrawals set up to occur automatically from certain accounts, we can accommodate your needs. Withdrawals can be sent directly to your bank account or mailed as a check. Let us know if you want to explore these options more.

Significant Life Changes: Keeping Us Informed
Life is full of unexpected events—some joyous and others challenging. Major life events such as a divorce, losing a loved one, or a job loss should be reported to us as soon as possible as these could significantly impact your financial status. Keeping us informed allows us to make necessary adjustments and provide the support you need during these times.

Our Client Manager Team: A Personal Touch
At Szarka Financial, we understand that sometimes you need to talk to someone. Our client manager team is here to provide that personal touch. A phone call can often be the quickest way to get the help you need or resolve any issues. We encourage you to reach out directly to your client manager whenever you feel it’s necessary. They are well-equipped to handle your queries with the attention and care you deserve.

While this list isn’t exhaustive, it covers the fundamental aspects of what we handle together at Szarka Financial. We’re committed to supporting you through every step of your financial journey. Should you have any further questions or need assistance, please do not hesitate to contact our team.