How to Get Insurance to Cover Your Roof Replacement

When you need your roof replaced, it can be a daunting task since you know getting a new roof won't come cheap. Rather than be stuck paying for your roof out of your own pocket, you will be smart to do all you can to make sure your homeowner's insurance policy pays for the new roof.

To ensure this is exactly what happens, here are some important steps you must take along the way.

Understand Your Coverage

If you have homeowners insurance and need your roof replaced, you may automatically assume it is covered. However, that is only sometimes the case. Unfortunately, not all insurance policies cover all types of roof damage. 

In fact, policies generally offer either repair coverage or replacement coverage. Because of this, you should always check over your policy to find out the specifics of what it covers.

Document the Damage

As you know, a picture is worth a thousand words when it comes to roof damage. By taking photos of your roof damage and sending them to your insurance company, you will have a much better chance of getting your claim approved for a roof replacement. 

If you are unable to document the damage yourself, contact experienced roofing contractors who can conduct an inspection and document the damage during their inspection.

Work with Reputable Roofers

To stand a much better chance of getting your roof replacement claim approved, it is always best to hire a reputable roofing company to conduct the inspection and perform the actual replacement. 

If you choose to hire a fly-by-night roofer, you may not only find your claim being denied, but also that the so-called "roofer" is nothing but a con artist who is preying on unsuspecting homeowners. 

If you have had a serious storm in your area recently that caused damage to your roof, be very aware of these scam artists.

Promptly Submit Your Claim

Once your roof suffers damage and needs to be replaced, don't wait around to file your insurance claim. If you do, this will make it much too easy for your insurance company to state that they believe the roof damage was not recent, which will result in your claim being denied. 

Once your claim is submitted, the insurer will have 15 days to make a decision about approving or denying your claim, so be prepared to be patient.

When you need a roof replacement, remember that this is why you have insurance in the first place. By using your coverage to its full advantage, you can soon have a new roof without paying one penny out of your own pocket.

How Does a Roth 401k Differ from a Traditional 401k?

If your employer offers a 401(k), investing in either a standard 401(k) or a Roth 401(k) is a wise choice when preparing for retirement.

They may be a better fit. Every variety has advantages and disadvantages of its own. Although the primary and most well-known difference between a traditional 401(k) and a Roth

• 401(k) is the time at which your money is taxed.
• Your employer's plans, employer matching contributions, state of residence, and savings capacity are also factors.

Everyone has better options; you must decide based on your unique situation.

• A Roth 401(k) is among the two primary categories of 401(k) plans, and it provides considerable tax advantages to employees who save for retirement.
• The regular 401(k) is another major plan that offers substantial but different tax advantages for retirement savings.

Here's everything you need to understand about Roth 401(k)s so you can decide if they're good for you.

What’s a Roth 401(k)?

A Roth 401(k) is a kind of employer-sponsored retirement savings plan allowing employees to contribute after deducting taxes. When that employee retires, they will be able to take tax-free withdrawals.

In 2006, the Roth 401(k) was introduced, combining characteristics from the standard 401(k) and the Roth IRA. Like a traditional 401(k), you can use a Roth account to take the benefits of an employer match on the contributions if your employer offers one.

Furthermore, the Roth feature of a Roth 401(k) allows you to make tax-free withdrawals.

The income tax is paid directly on the employee's money from every paycheck and deposited into the retirement account. Withdrawals from the retirement fund would be tax-free after the employee retires.

How does it work?

• The person’s age determines a Roth 401(k) contribution limit.
• Individual contribution limits in 2020 and 2021 are $19,500 annually. Individuals aged 50 and up are eligible for a catch-up payment of $6,500.
• If your employer matches your contributions, you may contribute to a Roth 401(k). A Roth 401(k) deposits matched funds into a tax-deferred account.
• The Roth 401(k) account should be held for a minimum of 5 years.
• The account holder should only make withdrawals due to a disability if the account owner reaches the age of 59½ or after the account holder’s death.
• Unless the employee is still working at the company holding the 401(k) and is not a 5% (or more) owner of the company sponsoring the plan, distributions are needed for employees who are at least 72 years old (70½ before January 1, 2020).
• You can make tax-free withdrawals from a Roth 401(k) after retirement. Non-qualified withdrawals from a Roth 401(k) are pro-rated based on your contributions and income.

Additionally, you may be charged the 10% early withdrawal penalty on funds classified as gross income.

To avoid a penalty, you must begin collecting the required minimum distributions (RMDs) after you reach the age of 72 (70½ before January 1 or earlier). When you retire, you can avoid this obligation by rolling your Roth 401(k) into a Roth IRA, which does not require RMDs. This way, your funds can keep growing tax-free, and your heirs won’t have to pay taxes on distributions if you pass your IRA over to them.

Employer-sponsored Roth 401(k) plans are the only way to invest in a Roth 401(k). If your company only offers a regular 401(k) with matching contributions, you’ll be wasting money if you don’t participate.

What are the benefits of a Roth 401(k)?

• Employees in a low tax bracket who intend to shift into a higher one upon retirement may benefit the most from a Roth 401(k).
• Currently, contributions will be taxed at a reduced rate, while retirement withdrawals will be tax-free.
• Tax-free distribution is the most significant benefit. The money in the fund will be tax-free throughout retirement, regardless of how much it grows over time.
• There is a minor disadvantage to this retirement plan. Since contributions to a traditional 401(k) are not taxed immediately, they have a lower impact on your take-home pay and maximize your tax break for the year.

How are they different from traditional 401(k)s?

A Roth 401(k) may be a superior option when considering future advantages. You need to pay income tax on your contributions in current-dollar to build a tax-free retirement nest egg.

Significantly, the contributions and the income will be tax-free over time. On the other hand, a regular 401(k) account requires you to pay income tax on the total amount you withdraw.

However, the Roth 401(k) takes a bigger bite out of your annual income. If you’re nearing retirement, the immediate tax savings may be more appealing than the chance of future tax-free withdrawals. If you plan to be in a lower tax bracket after retirement, the typical tax advantage of a 401(k) may be more beneficial.

Pre-tax contributions are made in a standard 401(k), which lowers your current adjusted gross income.

Contributions to a Roth 401(K) are made after taxes without impacting the current AGI. Employer matching contributions are taxed when distributed and must be placed in a pre-tax account.

When would someone choose a Roth 401(k) over other options?

The advantages of a Roth 401k above other options cannot be overlooked. The most appealing factors for selecting this option are the financial benefits of reduced tax deductions and tax-free withdrawals.

Therefore, those with access to 401(k)s may benefit from a 401(k) and a personal IRA. Before creating a personal IRA, maximizing your 401(k) contributions will be advantageous to fully benefit from the 401(k) benefits mentioned above.

For instance, if your employer matches any 401(k) contributions you make, every $1 you put into the plan is now worth $2. Note that employer contributions are stored in a separate account and that any gains are fully taxable upon withdrawal.

The ability to invest in things that are not available in your 401(k) plan is one reason you might want to have an IRA before maximizing your 401(k) plan.

Most 401(k) plans only let you choose from a set of mutual funds selected by your employer.

Your investment scope may be widened by having an IRA to include individual equities or unconventional assets like real estate or cryptocurrencies.

The choice between a Roth and a traditional account hinges on your projected tax rate in retirement compared to your current speed and your requirement for current income. The conventional is preferred since it is often believed that your tax bracket will be lower after retirement.

Since it might be challenging to anticipate your tax rate decades in the future, most people base their choice between a Roth and a standard retirement account on their ability to contribute a certain amount from their current income.

A standard 401(k) plan will require less of your income to be maximized than a Roth 401(k), as contributions are made pre-tax (k). You can’t overlook the emotional agony of investing in alternative options. 

Imagine reaching retirement age and discovering your $2 million nest egg has been reduced to $1,600,000 after the tax deduction! You’ll miss $400,000 in retirement, far more than $250 in a paycheck. You’d rather pay taxes now.

You probably wouldn’t care about the amount you’re saving in taxes if you put 15% of every paycheck into your Roth 401(k). You’ll be delighted to notice that you don’t owe the government a single penny from your hard-earned savings when you retire.

Conclusion

Retirement savings can help you avoid debt during retirement. People in retirement use credit cards to mitigate emergencies and welcome credit card debt into retirement. 

If you have enough money saved in your retirement account, you can use the money and get a tax benefit. The important considerations are how you wish to deposit and withdraw money into the account.

Finally, keep in mind that, provided your plan permits, you can split the difference and contribute to both accounts, switching back and forth during your career or even throughout the year. Your tax situation in retirement will be diversified if you use both accounts, which is always positive. Let's start by investing money today!

Author Bio: Attorney Loretta Kilday has more than 36 years of litigation and transactional experience, specializing in business, collection, and family law. She frequently writes on various financial and legal matters. She is a graduate of DePaul University with a Juris Doctor degree and a spokesperson for Debt Consolidation Care (DebtCC) online debt relief forum. Please connect with her on LinkedIn for further information.

Why Name Matching is Crucial to Financing

From helping with sales, simplifying the hiring process, and reaching out to customers quickly and more efficiently, this is a process you should consider for your financing business.

The software can provide benefits regardless if you operate a small or large business, taking matching to a new level. Please continue reading to learn why you should give the software a try.

It Helps with Customer Targeting

Knowing more about your customers can lead to better marketing and advertising strategies. Therefore, you should incorporate matching techniques into your business because it can help you target customers and reduce the risk of wasting money on advertisements that spend more but bring in less business. 

In the financial industry, you can use this system to determine what products and services work in your company's or organization's best interests and what steps to stop altogether. 

You will typically receive reviews and name matches; in these instances, it is vital to analyze each result and reach out to potential customers or current clients to get more feedback.

Maintain Organization

One of the most extensive responsibilities of finance businesses is keeping the tasks, meetings, and other necessities in order. Failing to stay organized and up-to-date could lead to serious errors and lost accounts because of disorganization and customer mishaps. 

However, with the matching software, you can rely on the system to keep track of your tasks, especially what needs to be completed for the day. 

Maintaining organization and having access to a productivity chart could boost accuracy and reduce the risk of displeased customers.

More Visibility

Even with a small business, name matching can lead to more visibility, gaining the exposure of a larger audience. As a result, you can increase sales due to brand awareness. 

Expanding visibility is more accessible with name matching software because of its easy steps and significant outreach. 

The matching software is excellent for linking businesses with ideal clients; therefore, you can expand your client base while increasing visibility.

New Products

Although sales are essential in the business world, having good products and services is crucial, and this software can help your finance company find the best matches and possibly lead to your next top seller. 

You merely use the software to match your current or potential product or service to see what appears onscreen. Once completed, you can look through the countless matches, read the reviews, and reach out to different individuals to see if they are interested in your products and services. 

When inquiring about new products, you can use this to gain honest feedback and decide whether to market the services and items or select another option.

These are some benefits that name matching provides your financial business or organization. Although each company is different, the strategies mentioned above can significantly boost and improve business and assist with hiring employees or making critical changes.

Tips for Finding the Right Financial Advisor

Managing your finances is important no matter how old you are. If you don’t have a handle on your finances, you won’t be able to save. It will also be difficult to achieve important financial goals.

Financial planning is critical for retirement savings. You need to make sure you save enough money to fund a comfortable retirement. However, it isn’t easy. You don’t just put money aside. You need to invest and consider various retirement accounts.

For retirement savings, the benefits of having a financial advisor are many. A financial planner can help you build a complete investment strategy for your savings. They can also help you make better decisions as you plan for retirement.

While having a financial advisor can be beneficial, you need to pick the right one. There are many professionals out there who will be eager to win you as a client. You need to take your time to make sure you find someone who will help you achieve your goals.

How do you find the right financial advisor? Read on for a few tips!

Learn About Financial Advisors

The first step is to learn a little about financial advisors and what they do. You should also learn about the different types of financial advisors. Different types of financial advisors offer different services. 

Furthermore, the type of professional you work with may determine the types of products they offer or the strategies they deploy. It can also be relevant to the legal obligations the professional has to their clients.

Even beyond learning about financial advisors, you should try to gain an understanding of the services they provide. Learn a little about financial planning and investment strategies. 

You don’t have to master these subjects, but having basic knowledge will help you understand the services and make it easier to select an advisor.

Understand Your Goals

You need to assess your financial goals before hiring a financial advisor. Consider the amount of money you make annually and what you want to do before you retire. 

Think about the age at which you plan to stop working. You will also need to consider your retirement plans. If your retirement plans are modest, you might not need as much money. 

With that said, you still need to realize that you are probably saving to fund over a decade of your life.

Build a List of Names

With a basic understanding of financial advisor services and an outline of your goals, you can start building a list of professionals to work with. Searching financial advisor websites can be a good place to start. 

Check out their websites and see the types of services they provide. Look to see how much experience they have and the type of team they have backing them up.

You should also consider the financial services from your bank. Most banks have financial planning services and products for retirement savings. 

You could also ask friends or family members if they have anyone they could recommend. Just don’t settle for the first name you find. You will need to consider several professionals to find a good fit for you.

Narrow it Down

Now that you have a list, it is time to start narrowing it down to the ones that are the best fit for your financial goals. Start by considering the services you need. 

Eliminate any that don’t have services you find vital to your financial plans. From there, you can start looking into backgrounds. You could use a tool like BrokerCheck for more information. 

It can tell you about who they have worked for, their experience, and if they have had any complaints.

Arrange Meetings

With your list narrowed down, you can now arrange in-person meetings with the remaining candidates. You need to call their offices and schedule a meeting. 

It will give you a chance to learn more about the individual and see how comfortable you feel working with them. It can also be a chance to ask more questions about them as a professional and the services they provide.

You can start with the obvious questions about the services they provide. You should also ask about their investment strategy and how they can help you reach your goals. 

You should also ask them about how they get paid. The fee structures can tell you a lot about a financial advisor and the ways they may handle your money. You should also ask about how accessible your money will be once it is invested.

Hiring the right financial advisor can make a big difference. It is not a decision you want to rush into. Take your time, consider many candidates, and be careful as you vet them. 

With the tips in this post, you should be able to find a financial advisor to help you reach your retirement goals.

Reasons to Start Thinking About Estate Planning While You're Young

Whether young or old, estate planning is an important part of life. It can be intimidating and time consuming, but it doesn’t have to be. 

Estate planning is all about protecting your assets, taking care of your debts, and making sure your wishes are carried out after you pass away. 

If you are a young adult, here are a few reasons why it’s never too early to start thinking about estate planning.

Estate Planning Can Help Protect Your Assets and Loved Ones

If something happens to you unexpectedly—whether it’s an illness or injury—having an estate plan in place will help ensure that your assets and loved ones are taken care of. 

Without one, your family members may struggle to access your accounts or pay off any outstanding debts if something happens to you without warning. 

An estate plan can also protect the future ownership of any business or investments that you have.

It Can Help You Make Smart Financial Decisions Now

Thinking ahead and being proactive when it comes to estate planning can help make sure that the financial decisions you make now are sound ones for the future. 

For instance, if you know that some of your money will go toward taxes when you pass away, then this should factor into how much money you save now for retirement or other long-term goals. 

Having an estate plan in place can also help minimize stress for your family members down the line by providing clear instructions regarding how they should handle things like healthcare decisions or funeral arrangements on your behalf.

It's Easier Than You Think

Creating an estate plan doesn't have to be complicated or expensive, and as a young adult, now is the best time to start putting one in place since there are likely fewer assets involved than there would be later on in life. 

A good place to start is by creating a last will and testament (also known as a “will"), which is used to designate who gets what after death. 

Depending on where you live, there may even be online tools available that make creating a will easy and affordable (or even free) with step-by-step instructions and guidance from an estate planning attorney along the way.

No matter how old (or young) we are, we all need an estate plan in place so our families don’t have extra stress during an already difficult time when we pass away—but for younger adults especially, having one in place can provide peace of mind now knowing that their decisions today will benefit them tomorrow. 

The key is getting started sooner rather than later so everything stays organized and up-to-date as life progresses. With online tools available and plenty of resources at our fingertips, preparing our estates doesn’t have to be overwhelming; it can be quite simple! 

So take the first steps today towards creating a secure financial future for yourself and those around you with an effective estate plan tailored specifically for YOU!

4 Ways to Finance Your New Vehicle

You might be interested in purchasing a vehicle, and you might not have the money to pay for the car in cash. If this is the case, you shouldn't worry, since there are various financing options that might work for paying for your car purchase.

If you're wondering about the different ways that you can finance your vehicle, you may want to consider the following options.

Apply for a Loan through Your Bank

First of all, if there is a bank that you already regularly work with for your financial needs, you might want to check into your options with them first. Your bank might offer car loans. 

If you are able to secure one of these car loans, you might find it's easier for you to get approved than if you were to go through a different bank that you don't already have an established financial relationship with. 

Plus, you might feel better about taking out a car loan from a financial institution that you already trust.

Get a Loan from a Finance Company

Not only can you potentially get a car loan from a big bank, but you can also check into finance companies. There are various finance companies that grant car loans, and some of them are even willing to work with people who have less than perfect credit, so this could be a good option for you.

Opt for Dealer Financing

Some car dealerships actually offer their own financing. Basically, this means that you make payments directly to the dealership each month instead of to a bank. Check into dealerships like On-Trac Auto Sales to find out if dealer financing might be a good option for you.

Pay with a Credit Card

When you think about swiping your credit card, you might think about using it to pay for things like new clothes or electronics or to pay your day-to-day expenses. 

However, believe it or not, many dealerships do accept credit cards. This means that you might actually have the option to pay for your car purchase with a credit card. 

This can be a good option if you have a credit card that has a high enough limit to cover the purchase. However, you should make sure that you are mindful of things like interest rates and minimum payments on your credit card after making this big of a purchase.

As you can see, there are a few different ways that you can finance your vehicle. You might find that one of these options will work well for you and will allow you to purchase the car that you want, even if you don't have cash on hand to pay for your purchase outright.