Is your tax refund check burning a hole in your pocket? Pay yourself first!
With the April 18 federal tax filing deadline in the rearview mirror, it is time to get ready to spend that refund check.
Make sure your financial plan includes paying yourself first. If you have a Roth TSP, did you know you can still have a Roth IRA as well?
That’s right! A federal employee can contribute up to $19,000 annually into their TSP and another $6,000 into a Roth IRA for a maximum of $25,000 a year in tax-deferred retirement planning accounts. There are a couple of stipulations. Participants must be under the age of 50 and have a total adjusted gross income of below $140k if filing individually or $180k if filing jointly.
First things first, get the TSP match. Next, see if a Roth IRA for you or your spouse makes sense. Pay yourself. Contact us to build a financial plan that works for you.
Securities offered by Registered Representatives through Private Client Services, Member FINRA/SIPC. Advisory products and services offered by Investment Advisory Representatives through Rockport Wealth LLC, a Registered Investment Advisor. Private Client Services and Rockport Wealth LLC are unaffiliated entities.
Investments in securities do not offer a fixed rate of return. Principal yield and/or share price will fluctuate with changes in market conditions, and when sold or rendered, you may receive more or less than originally invested. No system of financial planning strategy can guarantee future results. Investors cannot directly invest in indices. Past performance does not guarantee future results. The performance numbers we mention are indexes. If you’re a client, we manage a custom portfolio for your particular situation and the performance will be different.
Investing in Veterans Spotlight
A monthly look at Veterans adding value to their communities.
Tony is a retired U.S. Army Major with 20 years of service to the nation. He began volunteering with the veteran service nonprofit GallantFew in 2014 and joined as a staff member upon retirement in 2020.
A staunch advocate for the need of a robust transition experience for all service members, Tony has served more than 1,000 veterans in their post-military career and education search.
Three years ago, Tony came to VIP to close the gap in financial education that hinders the active duty force.
“Without a doubt, the lack of understanding of the role of money and application of financial education in developing a budget is the single biggest issue facing serve members as they exit active duty,” Mayne says. “To go from a state-supported to individual-driven financial world in one’s late-20s, 30s, or 40s puts Veterans at a significant disadvantage as they develop their transition plan.”
Mayne reports that the all-encompassing nature of the military benefits package hampers the financial education and military members’ ability to thrive upon departing the service.
“I rarely meet transitioning service members or Veterans that know when they can draw from their Roth TSP or social security,” Mayne says. “Long-term planning to achieve goals gets complicated when Veterans blindly take benefits such as Veterans Group Life Insurance without pricing the expense of their policy over time.”
All Veterans participating in the GallantFew VetSTAR Transition Program are automatically enrolled in the VIP Plan to Succeed Financial Education Course.
Download the FREE Plan to Succeed Workbook
All the tools you need to take control of your financial future.
Rockport’s VIP March Market Analysis:
The month of March ultimately turned out to be a very good month for both stocks and bonds. Things started out strong, then disruptive news on the banking industry caused a noticeable mid-month swoon which fortunately recovered strongly by month end. When the final bell rang on March 31st, the S&P 500 index was up 3.21% for the month. Year to date the index is up 7.03%. It is important to note that even though the index had a strong quarter it was largely driven by only a handful of stocks. If you removed the top 10 performing stocks the S&P 500 would not be in positive territory for the year. We call this market breadth and if the market is going to continue its winning ways the breadth will need to improve and more stocks will need to participate in the rally. The first quarter was strong among nearly all asset classes as even bonds as measured by the Aggregate Bond Index were up 2.31%.
Adam Stalnaker and Joe Kovach
Owners, Rockport Wealth Advisors
1 Based on younger male or female non-smokers in a Preferred health rating. You should do your own comparison and analysis based on your specific circumstances before making any decisions or changes to your insurance.
*The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. Results can be found at slickcharts.com.
*Treasury yields can be found at finance.yahoo.com.
*Charts produced at yCharts.com
*Bonds can be found at https://www.bloomberg.com/markets/rates-bonds
Rockport Wealth Advisors is a dba of Rockport Wealth, LLC, a fee-based Registered Investment Adviser (RIA) registered with the Securities and Exchange Commission and offering a full range of professional services. The scope of any financial planning and/or consulting services to be provided depends upon the needs of the client and the terms of the engagement. Please see our CRS & ADV disclosure documents for more information about our business.
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