Ever feel like there are way too many retirement account names to keep straight? It’s almost like alphabet soup for your retirement planning.

In this episode of Common Curiosities: Retirement, Michael, CFP® and EA is joined by his wife, who asks the questions many people may secretly have. Like what to do with extra money now, what about extra money I don't need now, how do these different accounts actually work, and who can (or can’t) fund a specific account?

Along the way they cover:

💬 What's different between traditional IRA from a Roth IRA outside of just the taxes and who the heck is “Mr. Roth” anyway?

💬 Why are there so many types of accounts? 401(k)s, 403(b)s, and IRAs (and how they connect with one another)

💬 Who can open or contribute to a Roth IRA (even if you’re under 18)

💬 Why earned income matters (and what the IRS really means by that)

💬 The “Starbucks app” version of paying taxes now vs. later

💬 Plus, a little “girl math” and TJ Maxx logic to keep things grounded

It’s an easygoing, real-world conversation for anyone who’s ever looked at their 401(k) form or Roth contribution limits and thought, “Wait, which one is this again?”

Chapters

00:00 Understanding IRA vs Roth IRA

00:51 What to do with a little extra money?

01:53 Do we treat checking and savings similarly?

02:30 Potential pros and cons of HYSA or MM

05:03 Money left after your TJ Maxx budget?

07:26 Who the heck is Roth?

09:01 Tax management like the Starbucks app?

09:48 Tax differences on Roth vs Trad. IRA

10:48 If I'm young which account should I consider?

11:42 When can you start retirement savings?

12:40 Have earned income but who can fund an IRA?

13:56 Is there a stage you can't use a Roth IRA?

14:40 Income restrictions for IRA and Roth IRAs?

15:52 How many different type of retirement accounts are there?!

18:39 Are there auto investments in 401ks or IRAs?

19:32 Why so many different retirement accounts types!?

21:10 Youtube Disc. TN & Words.mp4

𝐖𝐡𝐲 𝐰𝐞'𝐫𝐞 𝐡𝐞𝐫𝐞?

We’re here to make retirement planning feel less intimidating by helping people think through their strategies and plans through clear relatable financial topics!

Disclosures:

Harborfront Financial Group is a Registered Investment Advisor registered with the Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.

The information contained in this material is intended to provide general information about Harborfront Financial Group and its services. It is not intended to offer investment advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Information regarding investment products and services are provided solely to read about our investment philosophy and our strategies. You should not rely on any information provided on our web site in making investment decisions.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Harborfront Financial Group, a Registered Investment Advisor. Harborfront Financial Group and Custer Financial Advisors are separate entities from LPL Financial.

This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing. All investing involves risk including loss of principal. No strategy assures success or protects against loss.

Ever wonder why your tax refund may change so much from year to year or why making a little more money doesn’t always feel like it pays that much extra?

In this episode of Common Curiosities: Retirement, Michael CFP® and EA breaks down how our progressive tax system actually works, using everyday language (and a few buckets of water).

We walk through side-by-side examples of a married couple earning $120,000 and $200,000 to see how their tax bill may look, what tax deductions they may get (or not get) and even look at planning around certain tax credits.

You’ll learn:

💧 How each “bucket” of income gets taxed differently

💡 The difference between marginal and effective tax rates

👶 How credits may reduce your tax bill (and when some begin to phase out)

💭 Why tax planning can be valuable and should align with your investment and retirement planning

It’s a practical, down-to-earth look at how the numbers actually stack up hopefully understandable as well.

Because good financial planning isn’t just about investing… it’s about knowing how taxes, savings, and long-term goals all fit together like ingredients in a recipe that works for you.

Stay curious. 🧠

Chapters

00:00 Why is it important to understand your taxes?

00:41 How the US tax system works

01:32 $120k income example

03:38 0% Tax on LTCG Possibly?

05:34 $200k Income Tax Example

06:17 Are bonuses taxed differently?

06:59 Am I trying to qualify for certain deductions or credits?

07:32 Balancing deductions and income to become eligible for tax benefits

09:41 Retirement contributions for deductions to get under tax credits and manage brackets

11:19 Roth IRA contribution mistake

11:33 Integrating tax planning with investment plans

13:20 Youtube Disc. TN & Words.mp4

𝐖𝐡𝐲 𝐰𝐞'𝐫𝐞 𝐡𝐞𝐫𝐞?

We’re here to make retirement planning feel less intimidating by helping people think through their strategies and plans through clear relatable financial topics!

Disclosures:

Harborfront Financial Group is a Registered Investment Advisor registered with the Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.

The information contained in this material is intended to provide general information about Harborfront Financial Group and its services. It is not intended to offer investment advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Information regarding investment products and services are provided solely to read about our investment philosophy and our strategies. You should not rely on any information provided on our web site in making investment decisions.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Harborfront Financial Group, a Registered Investment Advisor. Harborfront Financial Group and Custer Financial Advisors are separate entities from LPL Financial.

This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing. All investing involves risk including loss of principal. No strategy assures success or protects against loss.

If you’re a Michigan school teacher, you only get 75 days from your first pay period to choose your retirement plan and that one decision may shape your financial future for decades.

In this episode, Michael CFP® and EA unpacks what those two options really mean. There's the Pension Plus 2 plan and the Defined Contribution plan. He discussed how they work differently when it comes to paychecks, matching contributions, potential taxes, early access, and even what happens to your money after you’re gone.

We’ll talk through questions like:

💭 How does the new Michigan Teacher pension formula actually work?

💭 What happens if you change careers or retire early?

💭 Why do newer teachers have such different benefits from those who started 20 years ago?

💭 What are the pros and cons to each option?

💭 How do you know which plan might fit you best based on your goals, comfort level, and your long-term plans

If you’re a newer teacher, this episode breaks down the fine print into plain English to help you make a more confident, informed choice about your future.

🧠 Stay curious.

🎧 Listen to more episodes of Common Curiosities: Retirement wherever you get your podcasts.

𝐖𝐡𝐲 𝐰𝐞'𝐫𝐞 𝐡𝐞𝐫𝐞? We’re here to make retirement planning feel less intimidating by helping people think through their strategies and plans through clear relatable financial topics!

Disclosures:Harborfront Financial Group is a Registered Investment Advisor registered with the Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.The information contained in this material is intended to provide general information about Harborfront Financial Group and its services. It is not intended to offer investment advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Information regarding investment products and services are provided solely to read about our investment philosophy and our strategies. You should not rely on any information provided on our web site in making investment decisions.Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Harborfront Financial Group, a Registered Investment Advisor. Harborfront Financial Group and Custer Financial Advisors are separate entities from LPL Financial.This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing. All investing involves risk including loss of principal. No strategy assures success or protects against loss.This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. All investing involves risk including loss of principal. No strategy assures success or protects against loss.