Backdoor Roths:
“Backdoor Roth IRA contributions allow high-income earners to bypass income limits for Roth IRA eligibility,” said Michael Eckholdt, wealth advisor at Liberty Wealth Services. “By making non-deductible contributions to a traditional IRA and then converting them to a Roth IRA, individuals can enjoy tax-free growth and tax-free withdrawals in retirement. This strategy maximizes retirement savings potential and offers long-term tax advantages without income restrictions.”
Variable Rate Home Equity Lines of Credit:
“Variable-rate HELOCs offer lower borrowing costs compared to withdrawing from retirement funds, preserving long-term investment growth,” shared mortgage experts Kathy and Patrick Cranmer. “Current interest rates paid on a HELOC are less than average retirement funds are earning and may also be tax-deductible. Unlike early retirement withdrawals, HELOCs avoid penalties and taxes, allowing retirement savings to continue growing while providing flexible access to funds for immediate needs.”
Staying In The Market:
“Staying in the market in 2025 offers potential for long-term growth, especially as markets recover and innovate,” said Michael. “Seeking guidance from a trusted financial professional can help you strategically navigate volatility and make informed investment decisions tailored to your goals. Staying invested helps you take advantage of compounding returns while avoiding the risk of trying to time the market and missing opportunities.”