Investing Archives | Page 15 of 191

Nov

2024

Tips for Helping Your Parents Retirement

By Rebecca Lake | invest, Investing, Preparing for Retirement | Comments Off

Saving for retirement can have its challenges, and there’s one you might not be expecting. You may find yourself helping to plan your parents’ retirement if they’ve fallen short of their savings goals.

Learning that your parents have no, or very little, retirement savings may be disheartening, especially if you’re expected to help fill the gaps in their financial plan. Figuring out how to retire your parents while still keeping your own financial goals in sight can be tricky, but it’s not impossible.

Key Points

• Encourage your parents to discuss retirement openly and build a support system to address financial concerns.

• Your family or a financial advisor can help analyze parents’ financial situation, including savings, debts, and monthly expenses, to plan effectively.

• Help parents find ways to save for retirement by reducing expenses and increasing income.

• If your parents have earned income, ask them to consider opening a retirement investment account, like an IRA, to boost savings.

• Utilize available resources and federal programs to support parents’ retirement planning and saving.

What to Do If Your Parents Didn’t Save for Retirement

When your parents can’t afford to retire your first instinct might be to get angry or place blame. However, it’s important to remember that you’re not alone and there are others like you in the same situation.

Consider this: More than half of retirees and pre-retirees aged 50 to 74 report feeling financially fragile. And the median retirement savings among them, per recent data, was just $128,000. Among pre-retirees, too, almost one-third said they had no plans for when to retire.

Statistically, women are less likely to have retirement savings than men. About 50% of women aged 55 to 66 have nothing saved for retirement, compared to 47% of men according to Census Bureau data. Being married more than once decreases women’s likelihood of having something saved for retirement.

The numbers aren’t encouraging, but it’s not too late to help your parents get back on track to retire. Assuming one or both of your parents are still working there are some things you can do to help them make the most of their current income in order to save for retirement.

How to Help Your Parents Retire

Retiring your parents may not be an easy task but it’s important to stay focused on the bigger goal. Also, remember that while it’s fine to want to help your parents retire, sidelining your own finances to do that could put your own retirement at risk.

1. Talk to Them About the Situation

Talking about money with your parents may be uncomfortable if they’ve never been forthcoming about their finances. However, it’s important to have an honest discussion about where they are with regard to retirement planning.

Doing so can help you both set realistic expectations. Some of the possible topics to discuss include:

• Living arrangements: Will they continue to live in their current home? If so, is that home paid for? And if they don’t plan to stay in the home, will they expect to live with you or move somewhere else?

• Financial support: If they lack retirement savings of any kind, will they expect you to help out financially? If the answer is yes, what does that translate to in hard numbers?

• Long-term planning: Should one or both of your parents require nursing care, what will that look like? Will you be their caregiver or will they need to move to an assisted living or long-term care facility? How much will that cost and where will the money come from to pay for it?

Those are just some of the issues that might come as you dig into the retirement planning conversation. Keep in mind that it shouldn’t be a one-time chat, either. If you’re planning to help retire your parents, then you’ll all need to be comfortable with discussing it on an ongoing basis.

2. Get Support

Trying to help your parents retire can be overwhelming and it’s a good idea to look for outside support if possible. If you have siblings, for example, you can ask them to join in the discussions about money and retirement planning. You might enlist the help of your parents’ siblings if you’re an only child.

It may also be beneficial to get an expert’s opinion. If your parents are receptive, you might want to consult with an advisor who specializes in financial planning or starting a retirement plan for families, whether that entails opening an IRA online or managing debt. They may be able to offer outside perspectives on the biggest issues that need to be addressed right away to get their retirement plan in shape.

3. Break Down the Numbers

Figuring out how to help your parents retire means taking a close look at their finances. Depending on your family situation, there might be some pushback here but it’s important for you and your parents to sit down and do the math.

Specifically, it’s helpful to understand:

• How much they have saved for retirement, if anything

• What retirement benefits they have through their employer (i.e., a 401(k), pension, etc.)

• How much debt they’re carrying and what types of debt they have

• What their spending looks like in a typical month and how that might change once they retire

• What type of assets they might have, such as a home, investments, or a life insurance policy

Having the numbers in front of you can help figure out what’s realistic, with regard to how much income they’ll need to fund their lifestyle in retirement and how much financial support you might need to provide.

4. Help Them Find Money to Save

If your parents have money coming in from working, then you’re already one step ahead of the game in helping them prepare for retirement. The challenge now is to help them find the money they need to set aside something for the future.

There are several ways to do that:

• Reduce expenses

• Increase income

• Look for “free” money

If you’ve already gone over the details of their monthly spending, the next step is walking through their budget with them to find expenses they can cut out. The more drastically your parents can cut their expenses, the more money they may be able to free up for retirement savings.

When there’s debt in the picture, whether it’s credit cards, car loans, or a mortgage, consider how they could get rid of those expenses. Taking a personal loan to consolidate credit cards, for example, could help them save on interest while paying off what they owe faster. The same goes for refinancing their mortgage.

Increasing income may be trickier, but you could suggest things like getting a part-time job or second job, or starting a small side hustle. Even something like selling things around the house they don’t need can bring in extra income they could use to save for retirement.

Finally, consider what free money they might be passing up. If they have a 401(k) at work, for example, but aren’t contributing enough to get the full company match then a simple adjustment to their annual contribution rate could fix that. That’s a smart way to encourage them to start investing or at least reviewing stock market basics in retirement with the income they already have.

💡 Quick Tip: All investments come with some degree of risk — and some are riskier than others. Before investing online, decide on your investment goals and how much risk you want to take.

¹Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.

5. Open a Retirement Investment Account

If your parents don’t have a 401(k) or similar plan at work, it’s never too late to think about starting a retirement plan. And even if they do have a workplace plan, they could still benefit from opening a secondary account for retirement savings.

Among the different types of retirement plans, an Individual Retirement Account (IRA) is the most accessible for savers who have earned income. You could encourage your parents to open a traditional or Roth IRA, depending on their current tax situation and where they expect to be tax-wise once they retire.

With traditional IRAs, contributions are typically tax-deductible and anyone can contribute. A Roth IRA, on the other hand, allows for tax-free qualified withdrawals in retirement. Eligibility to contribute is based on income and filing status. Understanding the differences can help with choosing a retirement plan for your parents, or yourself if you have yet to start saving.

6. Take Advantage of Available Resources

There are numerous federal programs that are designed to help retirees manage their financial lives. Researching what’s available can help you figure out what benefits your parents might qualify for once they retire.

For example, it’s important to consider when parents should take Social Security benefits if they don’t have retirement savings. The earliest age for claiming benefits is 62, but taking benefits early can reduce the amount retirees receive. Delaying benefits to age 70 can increase their monthly payments, but that may not be realistic.

Other options for getting financial help include:

• Medicare, which provides health insurance coverage for seniors 65 and older

• Medicaid, which provides healthcare services for low-income families and individuals

• HUD public housing (for seniors with disabilities or limited income)

• Assistance programs that help with utility bills, heating bills, or phone bills

• Food assistance programs, including Supplemental Nutrition Assistance Program (SNAP) Benefits, and Meals on Wheels

• Assistance programs for military veterans if either of your parents served in the armed forces

• Property tax or homestead exemptions for seniors

• Programs that help with home repairs for eligible seniors

Your parents may not need all of these programs, but it’s still a good idea to know what’s out there. If you’re not sure how to find resources for retirees, you can contact your local departments of health, social services, or adult services to ask for guidance. You can also try your local council on aging, if one exists in your area.

7. Address Long-Term Financial Planning

One of the most staggering costs in retirement for many seniors is healthcare. At the low end, the cost may average almost $25,000 per year for adult assisted living or community care. At the high end, you might pay almost $117,000 on average annually for a private room in a nursing phone.

Purchasing long-term care insurance can help to pick up the tab but policies can be expensive. Medicaid could pay for coverage but your parents would need to meet the income and resource guidelines set by their state to qualify for help.

A hybrid life insurance policy could kill two birds with one stone, so to speak. These policies can pay out benefits toward long-term care during your parents’ lifetime should they need them. They can also pay out a death benefit when they pass away, which could help you to cover things like final expenses or any remaining debts they leave behind.

Again, it may be in everyone’s best interest to sit down and talk these things through with a financial advisor, which may help them think about starting a retirement plan.

Investing for Retirement With SoFi

Discussing their financial plan and sharing tips for investing can help your parents to feel more comfortable about the idea of retirement. At the same time, it’s important to consider where you are on your financial journey. It’s generally a good idea to start saving for retirement as early as possible, but if your parents did not, there are still options.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Help grow your nest egg with a SoFi IRA.

FAQ

Can I open a retirement account for my parents?

No, but you can help them open a retirement account of their own. For example, you could walk them through opening a traditional or Roth IRA at a brokerage. You can also help them to review their retirement account options at work to make sure they’re getting the most benefit possible.

What do you do when your parents haven’t saved for retirement?

When parents have no retirement savings, it’s important to take a deep breath and not panic. It’s possible to help your parents get on track with retirement savings if they’re committed to setting realistic expectations and taking action to set aside as much money as possible in the remaining years before they retire. You may also encourage them to talk to a financial advisor about how to get their finances in shape.

How much does the average family need to retire?

The amount of money one family needs to retire may be very different from another’s, depending on the number of family members and their desired retirement lifestyle. Saving at least $1 million for retirement is a commonly-accepted target, though it may be possible for one person to retire with just $500,000 while someone else might need $2 million to live comfortably.

Photo credit: iStock/Fly View Productions

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INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

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Nov

2024

Roth TSP vs. Roth IRA: How They Compare

By Rebecca Lake | Growing Wealth, invest, Investing, Preparing for Retirement | Comments Off

Both Thrift Savings Plans (TSPs) and Individual Retirement Accounts (IRAs) come in traditional and Roth versions. One of the main differences between a Roth TSP vs. Roth IRA is who can contribute. Federal employees and members of the military can save in a Roth TSP. Anyone with earned income that’s within IRS income thresholds can contribute to a Roth IRA.

In either case, your contributions are not tax-deductible, but you can make tax-free qualified withdrawals when you retire.

Key Points

• Roth TSPs are available to federal employees and military members, while Roth IRAs are accessible to anyone with earned income within IRS income thresholds.

• Contributions to both Roth TSPs and Roth IRAs are made with after-tax dollars, allowing for tax-free qualified withdrawals in retirement.

• Roth TSPs have higher annual contribution limits and allow for employer matching contributions, unlike Roth IRAs.

• Roth IRAs typically offer a broader choice of investment options than Roth TSPs.

• Choosing between a Roth TSP and Roth IRA depends on employment status, contribution capacity, and retirement goals.

What Are Roth Thrift Savings Plans (TSP)?

The Thrift Savings Plan is a retirement plan that’s designed specifically for federal employees. You’re generally eligible to contribute to a TSP if you’re covered by the Federal Employees’ Retirement System (FERS) or the Civil Service Retirement System (CSRS). Members of the military can also save for retirement in a TSP.

A Roth TSP allows you to contribute after-tax dollars. When you make qualified withdrawals in retirement, those withdrawals are not taxed. Earnings are considered qualified if:

• At least 5 years have passed since January 1 of the first year in which you began making contributions, and

• You’re 59 ½ or older, permanently disabled, or deceased.

Contributions are made through elective salary deferrals, similar to a 401(k) plan. Catch-up contributions are allowed for workers aged 50 or older. Under the SECURE 2.0 Act, a higher catch-up contribution limit applies in 2025 for those ages 60 to 63. The IRS determines how much you can save in a Roth TSP each year. Here are the contribution limits for 2024 and 2025.

	2024	2025
Elective Deferrals	$23,000	$23,500
Catch-Up Contributions	$7,500	$7,500 $11,250 for those ages 60-63
Annual Additions Limit	$69,000	$70,000

The annual additions limit is the total amount you can contribute in a calendar year. It includes employee contributions, as well as automatic and matching contributions made by your employing agency. Catch-up contributions do not count in this total.

🛈 While SoFi does not offer a Roth TSP, we do offer a Roth IRA to help members save for retirement.

What Are Roth IRAs?

A Roth IRA retirement account is an individual retirement account that allows you to contribute after-tax dollars, then make qualified withdrawals tax-free. Roth IRAs are available to individuals through brokerages, banks, and other financial institutions, rather than through employers.

You’ll need to have earned income to contribute to a Roth IRA. The IRS sets the maximum annual contribution limit. Catch-up contributions are allowed if you’re 50 or older. Here’s how the limits compare for 2024 and 2025.

	2024	2025
Annual Contributions	$7,000	$7,000
Catch-Up Contributions	$1,000	$1,000

The annual limit does not apply to rollover or reservist contributions. How much you can contribute to a Roth IRA is based on your income and tax filing status.

You can make the full contribution in 2024 if:

• You file single or head of household and your modified adjusted gross income (MAGI) is less than $146,000

• You’re married, file separately, did not live with your spouse during the year and your MAGI is less than $146,000

• You’re married and file jointly or are a qualifying widow(er) and your MAGI is less than $230,000

You can make a full contribution in 2025 if:

• You file single or head of household and your MAGI is less than $150,000

• You’re married, file separately, did not live with your spouse during the year, and your MAGI is less than $150,000

• You’re married and file jointly or are a qualifying widow(er) and you’re MAGI is less than $236,000

There are no required minimum distributions for Roth IRAs, so you can leave money in your account until you need it. You can also withdraw original contributions at any time, without a tax penalty.

¹Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.

Similarities Between Roth TSP vs. Roth IRA

It’s important to open a retirement account that fits your needs. In terms of what’s similar between a Roth IRA vs. Roth TSP, they both allow you to contribute money on an after-tax basis. In other words, you pay taxes on the money that goes into the plan upfront so you can withdraw it tax-free later.

Once you reach age 59 ½, you can begin taking distributions without triggering any tax consequences. In terms of early withdrawals from a TSP vs. Roth IRA, there’s no difference. The IRS can assess a 10% early withdrawal penalty when taking money out of either account prematurely.

Both Roth IRAs and Roth TSPs are subject to the five-year rule mentioned earlier. Again, that rule dictates that at least five years must have passed since making your first contribution in order to avoid a tax penalty when making withdrawals.

TSP Roth vs. Roth IRA Similarities
Funded with…	After-tax dollars
Contributions are…	Not tax-deductible
Qualified withdrawals are…	Tax-free

Differences Between Roth TSP vs. Roth IRA

While they do have some things in common, there are some notable differences between a Roth IRA vs. TSP.

First, the TSP is an employer-sponsored plan, while an IRA is not. If you don’t work for the federal government you wouldn’t have access to a Roth TSP, but you could still open a Roth IRA and contribute to it.

Next, Roth TSPs have much higher annual contribution limits and catch-up contribution limits. They also allow for employer matching contributions, something you won’t get with a Roth IRA. Your ability to contribute to a TSP is not limited by your income either.

While Roth IRAs allow you to withdraw original contributions at anytime without a tax penalty, that’s not the case for Roth TSPs.

TSP Roth vs. Roth IRA Differences
Contribution limits…	Are higher for Roth TSPs
Matching contributions…	Only apply for Roth TSPs
Contribution withdrawals…	Only Roth IRAs allow you to withdraw original contributions at anytime without a tax penalty

Roth TSP vs. Roth IRA: The Pros

There are several types of retirement plans that can offer tax advantages, including both Roth TSP and Roth IRA accounts. In terms of the pros, the main benefits of choosing either of these accounts lies in the ability to withdraw money when you retire tax-free.

If you expect to be in a higher tax bracket when you retire, Roth TSP or Roth IRA withdrawals won’t increase your tax liabilities. That’s a good thing if the value of your investments within either account has risen significantly since you first begin making contributions.

Roth TSPs may help you save a decent amount of money for retirement if you’re able to max out your plan each year. The addition of employer matching contributions is another benefit, since that’s essentially “free” money. You don’t get that with Roth IRAs, but these accounts can still be a good way to save if you don’t have access to a retirement plan at work.

Roth TSP Pros	Roth IRA Pros
• Contribute money on an after-tax basis • Contributions grow tax-free • Qualified withdrawals are tax-free • High annual contribution and catch-up contribution limits • Employer matching contributions may help your savings grow faster • Eligibility to contribute is not tied to your income	• Contribute money on an after-tax basis • Contributions grow tax-free • Qualified withdrawals and withdrawals of original contributions are tax-free • Save for retirement even if you don’t have a workplace retirement plan

Roth TSP Pros

Roth IRA Pros

• Contribute money on an after-tax basis

• Contributions grow tax-free

• Qualified withdrawals are tax-free

• High annual contribution and catch-up contribution limits

• Employer matching contributions may help your savings grow faster

• Eligibility to contribute is not tied to your income

• Contribute money on an after-tax basis

• Contributions grow tax-free

• Qualified withdrawals and withdrawals of original contributions are tax-free

• Save for retirement even if you don’t have a workplace retirement plan

Roth TSP vs. Roth IRA: The Cons

While there are some advantages to saving in a Roth TSP or Roth IRA, there are also some potential downsides. For one thing, you’ll need to have a federal job (that is, work for the federal government is some capacity) in order to contribute to a Roth TSP. With a Roth IRA, your ability to make a contribution hinges on your income and filing status.

Roth TSPs are also known for offering a narrower range of investment options. If you make an in-service withdrawal from your account and you’re not age 59 ½ yet, you should be prepared to pay a tax penalty.

A Roth IRA doesn’t offer matching contributions, nor can you borrow from it. Any early withdrawals that are not qualified or don’t otherwise meet the five-year rule could be subject to tax penalties. While you might have more investment options to choose from, it’s important to be mindful of the fees you may pay.

Roth TSP Cons	Roth IRA Cons
• Must be an eligible federal employee to contribute • Investment selection may be limited • In-service withdrawals only allowed for financial hardship • Early withdrawal penalty may apply	• Must be within the IRS threshold guidelines to contribute • How much you can contribute is tied to income and filing status • No option to take loans • No employer matching contributions • Early withdrawal penalty may apply

Roth TSP Cons

Roth IRA Cons

• Must be an eligible federal employee to contribute

• Investment selection may be limited

• In-service withdrawals only allowed for financial hardship

• Early withdrawal penalty may apply

• Must be within the IRS threshold guidelines to contribute

• How much you can contribute is tied to income and filing status

• No option to take loans

• No employer matching contributions

• Early withdrawal penalty may apply

Roth TSP vs. Roth IRA: Which Is Better for Your Retirement Goals?

Selecting a retirement plan is an important decision as you want to choose an option that aligns with your needs, goals, risk tolerance, and objectives. Contributing to a Roth TSP could be wise if you’re a federal employee, since you can take advantage of higher contribution limits and employer matching contributions.

A Roth IRA, meanwhile, could make sense if you don’t have access to a retirement plan at work or you want to supplement your employer’s plan. Contributing to a retirement plan at work doesn’t bar you from also contributing to a Roth IRA, as long as you’re within the income limits set by the IRS.

The one that’s better for you may depend on where you work, how much money you’re able to contribute to retirement savings each year, and when you plan to retire. When comparing investment options for a Roth TSP vs. Roth IRA, consider the overall track record of those investments as well as the fees you might pay.

The Takeaway

Whether you choose a Roth IRA vs. Roth TSP or something else, it’s important to save for retirement early and often. Even if you can only afford to contribute small amounts to a retirement account, they can add up over time as long as you remain consistent.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

Easily manage your retirement savings with a SoFi IRA.

FAQ

Should I max out my TSP or Roth IRA?

If you can afford to max out your TSP, it might make sense to do so before maxing out a Roth IRA. The simple reason for that is TSPs have higher annual contribution limits and you can also get a matching contribution from your employer. If you only have a Roth IRA, then maxing it out each year can help you save the most money possible toward your retirement goals.

Is a Roth IRA better for retirement or a Roth TSP?

A Roth IRA is a good retirement savings option if you want to be able to make tax-free withdrawals later. However, a Roth TSP allows you to contribute a larger amount of money each year and your employer can also make matching contributions on your behalf.

Does a Roth TSP reduce taxable income?

Roth TSP contributions are made using after-tax dollars, so they do not reduce your taxable income for the year. You can, however, manage your tax liability by taking advantage of any deductions and credits you might be eligible for.

Photo credit: iStock/nortonrsx

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INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

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Nov

2024

Are You Asking Yourself: Are 401(k)s Worth It Anymore?

By Dan Miller | invest, Investing, Preparing for Retirement | Comments Off

401(k) plans have been around for decades, and millions of Americans have successfully used them to help with saving for retirement. Named for the section of the tax code that enables them, a 401(k) is an employer-sponsored plan that allows you to withdraw funds directly from your paycheck to save for retirement. Having the money come out directly from your paycheck makes it quite easy to save for retirement.

There are several benefits that come from contributing to a 401(k) plan. You’ll get a tax break for contributing to your account, since contributions made to a traditional 401(k) are made with pre-tax dollars, reducing the gross income you’ll need to report to the IRS that year. Many employers also make matching contributions to their employees’ 401(k) accounts. Still, with so many other ways to save for retirement available now, you might be wondering if 401(k)s are worth it.

Key Points

• A 401(k) is an employer-sponsored retirement plan allowing tax-advantaged contributions that can be invested and withdrawn in later years.

• Traditional 401(k)s allow employees to make pre-tax contributions, meaning they reduce taxable income for that year, while Roth 401(k)s allow employees to make after-tax contributions.

• Employer-matching in 401(k)s can provide additional funds, enhancing retirement savings.

• 401(k)s have higher contribution limits than IRAs but are limited by employer investment options.

• In comparison with savings accounts, 401(k)s offer higher potential returns but come with penalties for early withdrawal.

How 401(k) Plans Work

A 401(k) is an employer-sponsored plan, which means that you have to be employed by a company that offers one. If your employer does not offer a 401(k) program, in most cases, you can not start one on your own. In that case, you may need to look for other options, and may want to think about opening an IRA.

If you do have a 401(k), you can specify a percentage of your total pay or an amount to be withheld from your paycheck each pay period. Contributions to a traditional 401(k) account are made with pre-tax dollars and are therefore not counted in the gross income you’ll need to report to the IRS (likely lowering your overall tax bill). Instead, you will pay income tax based on the amount of money you withdraw from your account when you reach retirement age. You can also choose how to invest your contributions, based on a list of investment options provided by your employer.

401(k) Matching Explained

Many employers offer 401(k) matching as an additional employee benefit, and employers can set up matching programs in a variety of different ways.

One example might be that a company might offer to match 50% of your contributions, up to a maximum of 6% of your pay. So if you contribute the full 6% of each paycheck to your 401(k) account, your employer will contribute an additional 3%.

Effectively, employer matching allows employees to benefit from “free money” coming from their employer directly into their retirement plans.

Pros and Cons of 401(k)s

401(k)s, like any other investment and savings vehicle, have advantages and disadvantages. Here are some pros and cons of 401(k) accounts.

thumb_up

Pros:

• 401(k) plans are tax-advantaged, allowing for pre-tax (traditional) or post-tax (Roth) contributions

• The contribution limits are higher than that of other retirement options (like IRAs)

• Your employer may offer matching funds

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Cons:

• Investment options are limited to what is offered by your employer

• There is a limit to how much you can contribute each year

• Some investment options may come with fees

401(k) vs Savings Account

If you’re considering where to put your money and deciding between 401(k) retirement savings versus stashing it in a regular savings account, there are a few things to keep in mind.

Money you put into a traditional 401(k) account is intended for retirement, so you may face penalties and an additional tax bill if you take it out before you reach retirement age. However, the investment options available in many 401(k) accounts may allow you to earn higher returns than those available in savings accounts. The money in a savings account would only accrue interest.

Here’s a hypothetical look at how returns may generate at various rates. All figures are for $50,000 invested in a diversified (401)k, assuming a 401(k) was invested entirely in an S&P 500 index fund, and at varying rates of return (compounding continuously, meaning that an investor earns returns on their initial investment, plus their returns, repeatedly) with no additional contributions.

Additionally, in the chart below, the percentage of corresponding rates of return is based on an inflation-adjusted return, and this percentage can be even lower based on time in the market. We’ve also included the rate of return for a hypothetical savings account, which might pay out 0.4% annual interest, for comparison:

Starting amount	Rate of Return	Ending amount after 20 years
$50,000	0.4%	$54,156
$50,000	3%	$90,306
$50,000	5%	$132,665
$50,000	7%	$193,484
$50,000	10%	$336,375

As you can see, even a small increase in your overall rate of return may pay dividends in the long term. There can also be a place in your overall financial plan for both retirement savings and regular savings accounts, but generally, it’s probably a good idea to make sure that any money you are investing for the long term has the highest possible rate of return, given your risk tolerance. Typically, the higher the potential rate of return is for an investment, the higher the potential risk involved.

Compound Interest vs Simple Interest

Depending on how you are investing or saving your money, you may earn interest. And that interest may be calculated as simple interest, or compounded on a particular schedule.

Many investments in the stock market that you might use in a 401(k) account may compound continuously. Other investments like bonds, CDs, or savings accounts may use simple interest or compound interest on other schedules.

Here’s a look at how a $50,000 investment would grow at a 7% interest rate, using either simple interest or interest compounded at various other timeframes:

Starting amount	APY	Ending amount after 20 years
$50,000	7%, simple interest	$120,000
$50,000	7%, compounded annually	$193,484
$50,000	7%, compounded quarterly	$200,320
$50,000	7%, compounded monthly	$201,936.94
$50,000	7%, compounded continuously	$202,760.00

401(k)s vs IRAs

401(k)s and Individual Retirement Accounts (IRAs) are both types of accounts that may give you tax advantages for saving for retirement. Again, a 401(k) is a retirement account sponsored by your employer, while an IRA is something you set up individually.

There are pros and cons with an IRA vs 401(k), so make sure you understand how they both work. That way you can make the best decision for your unique situation.

Perhaps the most stark difference between the two is the amount you can contribute in a year. For 2024, contribution limits are $23,000 in a 401(k) versus $7,000 in an IRA.

Is a 401(k) Right for You?

There are many different types of retirement accounts, and a 401(k) account can be an important part of your retirement plan. Check with your employer to see if they offer a 401(k) account, what investment options are available, and whether they offer any matching funds. Then consider how that fits in with your other retirement options to decide if a 401(k) is right for you.

The Takeaway

401(k) accounts are employer-sponsored retirement accounts that may be available as an employee benefit. When you contribute to a traditional 401(k) plan, the amount you contribute is not counted in the total gross income you’ll need to report that year. This may allow you to lower your overall tax liability. Additionally, many employers offer a 401(k) matching program, where they provide additional funds into your account as an employee benefit.

It can be a smart financial decision to use one of these accounts to make sure you have enough money put aside for your retirement.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

¹Terms and conditions apply. Roll over a minimum of $20K to receive the 1% match offer. Matches on contributions are made up to the annual limits.

🛈 While SoFi does not offer 401(k) plans at this time, we do offer a range of Individual Retirement Accounts (IRAs).

FAQ

Is a 401(k) worth it anymore?

There are many different kinds of retirement plans, and each come with their own pros and cons. A 401(k) is a valuable tool that may be a good choice for many Americans. Compare the benefits of a 401(k) with the benefits that come with other types of retirement plans to make the best choice for your specific situation.

Is it better to have a 401(k), or just save money?

It can make sense to keep some of your money in safe investments like cash or money market accounts. Having a few months’ worth of expenses in cash or cash equivalents can serve as a useful emergency fund. However, you likely won’t want to keep too much of your money in these types of investments, since they generally offer lower returns than investments that might be available in a 401(k) account.

What are the main disadvantages of a 401(k)?

While a 401(k) account has a lot of benefits and advantages, there are a few disadvantages. First is that you can only open a 401(k) account if your employer offers one, and your employer controls what investments are available. You also are limited in how much money you can contribute to a 401(k) account each year.

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INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

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Nov

2024

How To Invest in Publicly Traded Sports Teams

By Rebecca Lake | Growing Wealth, invest, Investing | Comments Off

Owning a professional football or baseball team is well out of reach for the average investor, but owning a piece of one isn’t. Publicly traded sports teams offer investors exposure to the world of alternative investments without requiring you to bring billions to the table.

If you have a brokerage account you may be able to invest through the wide world of sports. Here’s a look at how it works to invest in publicly traded sports teams.

Key Points

• Investing in publicly traded sports teams allows individuals to engage with their passions and diversify their portfolios through publicly traded teams.

• U.S. sports leagues like the NBA, NHL, and MLB have publicly traded teams, while international options include Manchester United and Borussia Dortmund.

• Key factors to consider before investing in sports teams include team management, ownership structure, financials, and performance record.

• Risks include stock price fluctuations, potential privatization, and significant debt loads affecting financial stability.

• Investment strategies may include buying shares through brokerages or investing in sports-focused ETFs for diversified exposure.

Understanding Sports Team Ownership Structures

Sports team ownership structures vary by organization and franchise. Major and minor league teams can be owned by:

• A single individual

• A family or family trust

• Corporations

• Limited liability companies (LLCs)

• Partnerships

• Private equity firms

Some teams have mixed ownership, meaning there are multiple owners, which can include a mix of individuals or entities. The controlling owner may be an individual or family who owns a majority share, with the rest distributed among other owners that were interested in investing.

There may be limits on what percentage of ownership an individual or entity can have in such a structure. For example, the National Football League (NFL) approved a vote in 2024 to allow private equity funds to buy stakes in teams. Private equity is capped at 10% of total ownership and controlling owners must have at least 30% ownership.

What Is a Publicly Traded Sports Team?

Most sports teams are privately owned following one of the ownership structures listed previously. Publicly traded sports teams are teams that are owned by corporations that may or may not make their shares available to trade on stock exchanges.

Current Publicly Traded Teams

A handful of professional sports teams are publicly traded. If you’re interested in how to invest in sports teams here are the companies you might choose from.

• Atlanta Braves. The Braves baseball team is owned by Atlanta Braves Holdings, Inc. (BATRA), which also operates mixed-use development projects. BATRA is traded on the Nasdaq Select Global Market.

• Toronto Blue Jays. Rogers Communications (RCI) owns the Blue Jays and is a leading provider of wireless service in Canada. RCI is traded on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE).

• New York Knicks. Madison Square Garden Sports Corp. (MSGS) owns and operates the New York Knicks. Shares are traded on the NYSE.

• New York Rangers. MSGS also owns and operates the New York Rangers hockey team.

• Manchester United. The Manchester United Football Club is owned by Manchester United plc. The stock trades on the NYSE using the ticker symbol MANU.

• Borussia Dortmund. Borussia Dortmund is a publicly traded sports team that trades on the German stock exchange. Its ticker symbol is BVB.

The Green Bay Packers, a professional football team playing in the NFL, are often included in the discussion about publicly traded sports teams, too. But while the team is publicly owned, it is not publicly traded. The team has, in the past, offered stock sales, and is a nonprofit organization.

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Strategies for Investing in Sports Franchises

There are several ways to invest in sports teams. The simplest path may be investing in sports by purchasing shares through a brokerage.

You’ll need to open a brokerage account if you don’t have one already, and deposit funds to trade. Once your account is set up you can buy and sell shares of publicly traded sports teams the way you would any other stock. Some brokerages also offer access to alternative investment funds, such as commodities or currencies.

If you don’t want to tie up all of your investment dollars in a single team, sports-focused ETFs are another option. These are thematic ETFs that allow investors to own a basket of investments in a single fund. Funds may be focused on:

• Sports betting

• Digital sports entertainment, including esports and gaming

• Sports broadcasting

• Sports and athletic technology, such as wearables

• Energy drinks or foods that are marketed to athletes

Real estate investment trusts (REITs) are another opportunity to invest in sports, albeit not necessarily sports teams per se. REITs own and operate real estate properties, which can include sports stadiums, arenas, and training facilities. Investing in sports REITs can diversify your portfolio while generating passive income through dividends.

Private equity may also be an option, depending on your situation. Private equity involves investment in sports companies that are not publicly traded. Investing in private companies can be lucrative but the barrier to entry is often high, as you may need to be an accredited investor to qualify.

SEC guidelines consider you to be an accredited investor if you:

• Have a net worth greater than $1 million, excluding the value of your primary residence

• Earned $200,000 or more ($300,000 with a spouse or partner) for the previous two years and expect the same level of income for the current year.

If you don’t meet those requirements there’s another option. You could invest in private equity ETFs that have a sports focus. This alt investment guide offers a closer look at how nontraditional assets like private equity work.

Risks and Challenges in Sports Team Investing

Investing in sports has risks like any other investment. Weighing them carefully can help you decide if it makes sense to invest with sports.

Here are some of the biggest challenges and associated risks associated with investing in sports teams:

• Stock prices of publicly traded sports teams (or their parent organizations) can fluctuate widely, based on how well the team performs.

• A team that’s publicly traded today may not be tomorrow if the team is sold to a new owner who decides to make it private.

• Sports teams can generate huge profits but they can also carry significant debt loads, which can affect their financial health and stability.

• Investing in sports REITs can generate passive income but those investments often lack liquidity.

• Private equity often has higher barriers to entry and may carry more risk than other sports investments.

Before investing in sports it’s helpful to review your current asset allocation and risk tolerance. That can help you decide how much of your portfolio to allocate to sports investments.

Recommended: Alternative Investment Definition

The Takeaway

Investing in sports is an opportunity to put your money where your passions are and diversify your portfolio. Comparing different investment paths can help you decide which one makes the most sense for you. And remember that if you’re interested in trading sports stocks, it’s easy to open a brokerage account and start investing online.

Ready to expand your portfolio's growth potential? Alternative investments, traditionally available to high-net-worth individuals, are accessible to everyday investors on SoFi's easy-to-use platform. Investments in commodities, real estate, venture capital, and more are now within reach. Alternative investments can be high risk, so it's important to consider your portfolio goals and risk tolerance to determine if they're right for you.

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

Which sports leagues have publicly traded teams?

In the U.S., the NBA, NHL, and MLB all have at least one publicly traded sports team on the stock market. While the Green Bay Packers are publicly owned and offer periodic sales of shares, they are not publicly traded.

Can I invest in international sports teams?

There are at least two international sports teams that are publicly traded. They are the Manchester United Football Club and Borussia Dortmund, a German football club and sports club.

What factors should I consider before investing in a sports team?

Some of the most important factors to consider before you invest in sports teams are the team’s management, its ownership structure, and its financials. It’s also wise to look at the team’s performance record, as that can influence how it’s valued at any given point in time.

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SoFi Invest®

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SOIN-Q324-058

Nov

2024

What Are Real Assets? Understanding Tangible Investments

By MP Dunleavey | Growing Wealth, invest, Investing, Terminology | Comments Off

Real assets are tangible, physical assets that can be exchanged for cash, owing to their use in manufacturing and consumer goods, and other purposes. Real assets, as a category, may include precious metals, commodities, real estate, infrastructure, and more.

Typically, real assets are considered a type of alternative investment, owing to their low correlation with traditional asset classes such as stocks and bonds. As such, real assets may provide some portfolio diversification. But real assets are also susceptible to specific risks pertaining to each sector.

Key Points

• Real assets take their name from the fact that they are tangible, physical assets, as opposed to financial assets (like stocks and bonds) or intangible assets (like a brand).

• Real assets have a cash value, and can generally be traded for cash. They typically include real estate, land, commodities, infrastructure, precious metals, and more.

• It’s possible to invest in real assets directly (by owning the physical goods, resources, or structures) or indirectly (via mutual or exchange-traded funds).

• They are considered a type of alternative asset, because most real assets are not correlated with conventional asset classes, and thus may provide some portfolio diversification, and potential returns.

• Real assets come with specific risk factors that pertain to each type of tangible asset, in addition to the risks that come with most alts: e.g., illiquidity, lack of transparency, less regulation.

Defining Real Assets

What is an asset? On the whole, assets can be considered tangible (e.g., land), intangible (e.g. a brand or trademark), or financial (e.g. shares of stock). While real assets have a cash value and can be exchanged for cash, they are not considered a type of financial asset because they are not securities.

Also, real assets are considered a type of alternative investment. Alts tend not to move in sync with, i.e., they’re not typically correlated with conventional assets like stocks and bonds. But like all types of alternative investments, real assets come with specific risks, including lack of liquidity, transparency, and less regulation in some cases.

Characteristics of Real Assets

The primary characteristic of real assets is that they are physical. They can be objects, goods, resources, or structures that have a specific cash value and can be traded for cash in certain markets.

However, real assets are considered non-securities, because they do not derive their value from a contractual ownership arrangement like stocks, bonds, exchange-traded funds (ETFs), options, and more.

Real Assets vs. Financial Assets

Financial assets fall into the category of securities; generally speaking there are debt securities (like bonds) and equity securities (stocks), as well as derivatives (options and futures). Real assets are non-securities.

• Securities are financial instruments that can be traded on an exchange, with an expectation of making a profit. More important, securities are fungible, meaning the value of one unit is interchangeable with another of the same type of unit: e.g., a share of stock in Company A is the same as another share of that stock.

• Real assets are physical goods, and in many cases they are not fungible: one type of property or infrastructure is not interchangeable with another. That said, commodities are a type of real asset, and are generally fungible: one barrel of crude oil is the same as the next.

💡 Quick Tip: Before opening any investment account, consider what level of risk you are comfortable with. If you’re not sure, start with more conservative investments, and then adjust your portfolio as you learn more.

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Types of Real Assets

As noted, real assets consist of physical, tangible goods and resources. But while one stock generally behaves the same as another stock, each type of real asset has to be considered individually to understand its benefits and risks.

Real Estate

Real estate includes a wide range of property types and investment choices: e.g., commercial real estate, industrial real estate, healthcare facilities, rental properties, and more. While it’s possible to invest directly in real estate, it’s also possible to buy into a type of pooled investment like real estate investment trusts, or REITs.

Real estate may offer passive income (i.e., from rent), or gains from the sale of properties, but real estate investments come with potential risks: local laws and regulations can change; property can be damaged by extreme weather; interest rate risk can impact property values.

Commodities

Commodities include numerous raw materials, including agricultural products like corn and coffee; precious metals such as copper or nickel; energy sources (including renewables), and more. Commodity trading typically involves futures contracts, but it’s possible to invest in commodities via index funds and mutual funds, or ETFs.

These assets, owing to steady demand, may offer the potential for profits. They may help hedge against inflation. That said, the value of commodities can be impacted by weather, supply chain breakdowns, market fluctuations, and other factors, which makes them risky. Commodities can lose value for a number of reasons, and direct investments in commodities lack certain investor protections offered to other securities.

Infrastructure

Infrastructure assets are durable structures that provide public services, utilities, and the like to enable the smooth functioning of society. Infrastructure includes durable structures like bridges, roads, tunnels, and schools, as well as energy infrastructure like power plants. Infrastructure is typically stationary, has a long period of use, and generates predictable cash flow (via utility payments, tolls, and so on).

While it can be difficult for individual investors to invest directly in infrastructure, it’s possible to invest in municipal bonds, or funds that offer exposure to companies involved in infrastructure.

Investing in infrastructure comes with specific risks investors should consider, including interest-rate risk (which can affect access to loans, and interest on bonds), regulatory issues, climate and weather challenges, and more.

Precious Metals

Generally speaking, precious metals consist of a group of natural assets, including gold, silver, platinum, iridium, and others. Investing in precious metals may be appealing as many metals tend to retain value owing to their scarcity, their critical role in manufacturing and technology, and because some (like gold and silver) are themselves used as a store of value.

For many individual investors, it may not be obvious how to invest in gold, silver, or other metals. Though it’s possible to buy bullion or bars directly, it’s also possible to invest in ETFs that are invested in gold or precious metals, or in stocks of mining companies, and the like.

The risks of investing in precious metals include potential changes in demand, technological innovations that may require more or less of a given metal, supply chain issues, worker safety, and more.

Recommended: Why Invest in Alternative Investments?

Benefits and Risks of Investing in Real Assets

In addition to the advantages and disadvantages of different types of real assets noted above, there are a few other factors investors should consider.

Inflation Hedge

Inflation essentially decreases a dollar’s purchasing power, and a hedge against inflation can offer a potential upside.

In some cases real assets can provide a hedge against inflation. For example, assets that benefit from steady demand, like commodities, may help offset inflation’s bite. Also, land or real estate may rise in value even when the purchasing power of the dollar is declining, which may offer a potential inflation hedge.

That said, it’s impossible to predict for certain which asset classes will help to mitigate inflation, and there are no guarantees.

Portfolio Diversification

Another factor investors should consider is the potential benefit from diversification, which is the practice of investing in different asset classes to help mitigate risk. Diversifying your assets may help offset some investment risk.

Diversification is complex, however, and involves more than just including alternative investments along with equities and fixed income. Investors need to consider how certain investments, like tangible assets, might provide some sense of equilibrium in their portfolio if conventional strategies are down.

Potential for Steady Income

As discussed, some types of real assets, like infrastructure investments, can become a source of steady income. For example, roads and bridges and public transportation require a high initial investment, but then they may provide a predictable revenue stream from tolls and fares and so forth.

The same is true for some types of municipal power plants and other energy sources that supply utilities, and derive steady payments over time.

Liquidity Concerns

Taken as a whole, however, real assets are quite similar to other types of alternative investments in that they lack the liquidity and easy access to cash that most conventional investments provide.

Liquidity risk is something all investors must take into account when choosing investments, as the inability to enter and exit positions with ease, and as needed, can impact one’s goals.

Market Volatility

All markets fluctuate to some degree, but some markets are more volatile than others. When it comes to deciding whether to invest in real assets, investors must do their due diligence because the market for each type of tangible asset is vastly different from another.

Just as understanding volatility in the stock market is key to making smart choices about equities, it’s essential for investors to consider the real estate market for a property they might invest in, or the futures market for investing in commodities, and so forth.

Incorporating Real Assets into Your Investment Strategy

Would investing in real assets make sense in your portfolio? There are a few factors to consider.

Asset Allocation

Asset allocation is basically the mix of stocks, bonds, and other investments in your portfolio. While a standard allocation usually includes these conventional asset classes, some investors also include other choices such as commodities, real estate, private equity, and more.

Deciding on the right allocation for your portfolio means thinking about your goals, time horizon, and how much risk you’re willing to take on. Given that real assets are often higher-risk investments, but aren’t correlated with traditional assets, investors may want to consider the advantages and disadvantages before deciding on an asset allocation that makes sense.

Direct vs. Indirect Investment Methods

Owing to the physical nature of real assets, it’s possible to invest in many real assets directly (e.g., owning rental property or gold bullion) as well as investing indirectly in real assets.

For example, commodities are typically traded via futures contracts. A commodity futures contract is an agreement to either buy or sell a specified quantity of that commodity for a specific price at some point in the future. While it’s possible to end up with actual physical commodities this way (e.g., bushels of corn or barrels of oil), for the most part futures are an indirect way to gain access to the commodities markets.

REITs and ETFs

Real estate investment trusts (REITs) and ETFs are two other common instruments for investing indirectly in real assets.

• A REIT is a trust that owns income-generating properties, so that investors are spared the hassle of direct ownership. A REIT may own warehouses, retail stores, storage units, hotels, and more. REITs can focus on a geographic area or specific market (like healthcare). A REIT is required to distribute 90% of its income to shareholders, so owning shares of a REIT may provide passive income, as well.

• ETFs are another way to invest indirectly in certain types of real assets, because these funds invest in companies that either produce, process, or in some way support a given type of real assets.

For example, there are ETFs that invest in mining, equipment, or technology companies in the precious metals and commodities sectors. Likewise, there are ETFs that invest in companies that support infrastructure projects.

Investors who are interested in exploring real assets are not limited to direct investment strategies; there are other options to consider.

The Takeaway

Real assets are tangible assets like real estate, infrastructure, or commodities, and are considered a type of alternative investment. Alts are not typically correlated with traditional assets like stocks and bonds, and thus may provide portfolio diversification that can help mitigate some risk factors. But like all types of alts, real assets come with specific risks, including lack of liquidity and lack of transparency.

Invest in alts to take your portfolio beyond stocks and bonds.

FAQ

How do real assets perform during economic downturns?

Although some alternative investments may not be affected by a downturn, the markets for specific assets can react differently, depending on the economic conditions. For example, if stocks are down, real estate may not be impacted at all. When interest rates fluctuate, the cost of loans can impact real estate values and infrastructure projects, but not necessarily commodities. It’s incumbent on each investor to consider the pros and cons of any investment before putting money into it.

What percentage of a portfolio should be in real assets?

Deciding on the percentage any asset class should have in your portfolio is a personal calculation, taking into account your goals, time horizon, and stomach for risk. It’s especially important to consider that real assets are illiquid, a risk consideration that can impact whether you want to invest in real assets at all.

Are real assets suitable for all types of investors?

No. Real assets are better suited to experienced investors, who may have the skills to navigate the complexities of real asset markets, pricing, risks, and so forth.

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INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below: Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
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Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor's risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.
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Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.
Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.

SOIN-Q324-057

Tips for Helping Your Parents Retirement

What to Do If Your Parents Didn’t Save for Retirement

How to Help Your Parents Retire

1. Talk to Them About the Situation

2. Get Support

3. Break Down the Numbers

4. Help Them Find Money to Save

Get a 1% IRA match on rollovers and contributions.

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.1

5. Open a Retirement Investment Account

6. Take Advantage of Available Resources

7. Address Long-Term Financial Planning

Investing for Retirement With SoFi

FAQ

Can I open a retirement account for my parents?

What do you do when your parents haven’t saved for retirement?

How much does the average family need to retire?

Roth TSP vs. Roth IRA: How They Compare

What Are Roth Thrift Savings Plans (TSP)?

What Are Roth IRAs?

Get a 1% IRA match on rollovers and contributions.

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.1

Similarities Between Roth TSP vs. Roth IRA

Differences Between Roth TSP vs. Roth IRA

Roth TSP vs. Roth IRA: The Pros

Roth TSP vs. Roth IRA: The Cons

Roth TSP vs. Roth IRA: Which Is Better for Your Retirement Goals?

The Takeaway

FAQ

Should I max out my TSP or Roth IRA?

Is a Roth IRA better for retirement or a Roth TSP?

Does a Roth TSP reduce taxable income?

Are You Asking Yourself: Are 401(k)s Worth It Anymore?

How 401(k) Plans Work

401(k) Matching Explained

Pros and Cons of 401(k)s

Pros:

Cons:

401(k) vs Savings Account

Compound Interest vs Simple Interest

401(k)s vs IRAs

Is a 401(k) Right for You?

The Takeaway

Get a 1% IRA match on rollovers and contributions.

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.1

FAQ

Is a 401(k) worth it anymore?

Is it better to have a 401(k), or just save money?

What are the main disadvantages of a 401(k)?

How To Invest in Publicly Traded Sports Teams

Understanding Sports Team Ownership Structures

What Is a Publicly Traded Sports Team?

Current Publicly Traded Teams

Alternative investments, now for the rest of us.

Start trading funds that include commodities, private credit, real estate, venture capital, and more.

Strategies for Investing in Sports Franchises

Risks and Challenges in Sports Team Investing

The Takeaway

FAQ

Which sports leagues have publicly traded teams?

Can I invest in international sports teams?

What factors should I consider before investing in a sports team?

What Are Real Assets? Understanding Tangible Investments

Defining Real Assets

Characteristics of Real Assets

Real Assets vs. Financial Assets

Alternative investments, now for the rest of us.

Start trading funds that include commodities, private credit, real estate, venture capital, and more.

Types of Real Assets

Real Estate

Commodities

Infrastructure

Precious Metals

Benefits and Risks of Investing in Real Assets

Inflation Hedge

Portfolio Diversification

Potential for Steady Income

Liquidity Concerns

Market Volatility

Incorporating Real Assets into Your Investment Strategy

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.¹

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.¹

Double down on your retirement goals with a 1% match on every dollar you roll over and contribute to a SoFi IRA.¹

Alternative investments,
now for the rest of us.

Alternative investments,
now for the rest of us.

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