Money Study Group | UH Personal Finance

Tax Allocation Bucket Strategy

The second law of Personal Finance is the law of Tax-Advantaged Investing. The IRS makes the law, your job is to take advantage of it!

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Week 11 Assignment

Tax Advantaged Investing Strategies

Part One – Weekly Article

Roth IRA vs 401k or Traditional (deductible) IRA

Watch the two videos listed below and do your own search to find additional resources to learn more about these types of accounts:

  • Roth IRA

  • Traditional (Tax Deductible) IRA

  • 401K Retirement Account

Write an article 300 – 500 words,

Format the article as you would for other video summary assignments,

  • Include at least three source links in your article to receive full credit.

  • One of your links needs to be a YouTube.com link

  • Include Outline of Zoom Meeting (see below for more details)

Compare and contrast the Roth IRA vs the Traditional (Tax Deductible) IRA with respect to the following:

  1. Who is eligible?

  2. What are the Tax Advantages?

  3. How much can a person contribute on an annual basis?

  4. When can investors withdraw funds?

  5. Tax Penalties

  6. Distribution Requirements

  7. Any Exceptions related to penalties and withdrawals

 

Becoming a Millionaire: Roth IRA vs 401K (What makes the MOST PROFIT)

 

Jim Cramer: Roth Or Traditional Account?

 

 

Part Two – BayRock Plan Updates

Tax Allocation

In part two of this assignment, you’re going apply what you learned about Tax Allocation. You will first need to update your planning portal with an extra $150,000 in 3 different investment accounts. You can delete these accounts after you complete your Capstone Assignment. Use your own Asset Allocation as you create your investment accounts. And tell me what you learned as you pay close attention to how your choices impact your financial plan.

You will need 10 Screenshots

  • Before Probability

  • Before Asset Allocation

  • Before Tax Allocation

  • Investment: Big Blue Bucket — $50k

  • Investment: Tax Deductible IRA — $50k

  • Investment: Tax Free Roth IRA — $50k

  • Investment Account Summary

  • After — Asset Allocation

  • After — Probability

  • After — Tax Allocation

Before Screenshots

Probablity

Tax Allocation-0

Asset Allocation

Tax Allocation-1

Tax Allocation

Tax Allocation-3

Add 3 Investment Accounts

Taxable Account — $50,000

### Big Blue Plastic Bucket

Tax Allocation-4

Tax Deferred

Tax Deductible IRA — $50,000

IRA Bucket-Tax Deferred

Big Brown Bucket (401K)

Big Brown Bucket-Tax Deferred

Tax Free

Roth IRA — $50,000

Small Gold Bucket

Tax Allocation-6

Investment Account Summary

Tax Allocation-7

After Screenshots

Asset Allocation

Tax Allocation-8

Probability

Tax Allocation-9

Tax Allocation

Tax Allocation-10

Part Three – Outline Lecture

Topical Timeline/Outline for Zoom Meeting

Indicate whether you attended the Zoom Meeting, watched live on Facebook, watched live on YouTube, or viewed the video at some other time via Facebook or YouTube.

Include a Topical Timeline/Outline for this week’s lecture as follows:

  • Topical Outline

  • Timing for the topic from 05:10 – 11:15

  • Next Topic

  • Timing for the next topic from 11:16 – 15:25

  • And so on…

Be sure to include the Topical Timeline/Outline all together in one section of your assignment article, here’s an example of what I mean:

Introduction: 00:00 – 1:25

How to Catch Fish: 01:25 – 4:45

How to Clean Fish: 04:25 – 09:55

When to Go Fishing: 09:55 – 13:44

What Kind of Fish are good to eat: 13:44 – 21:32

Fish Story Summary: 21:32 – 34:21

Submit One PDF in BB

  • Include Week 11 Quiz (Screenshot)

  • Include Week 11 Class Collaboration Screenshot for the upcoming Capstone Workshop:

Post a brief comment with any specific question or issue related to your financial plan. If you have a specific question that you want me to address in the upcoming Capstone Workshop, please email your specific question(s) to me at [email protected]

If you’re having no issues and if you don’t really have any questions, please post a comment describing your overall experience this semester in Personal Finance.

Post in Money Study Group, Facebook, or YouTube and grab a screenshot.

 

 

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IMPORTANT DISCLOSURE:

Investment Advice and Financial Planning are offered through BayRock Financial, L.L.C., a Registered Investment Advisor. BayRock does not provide tax or legal advice. The information presented here is not specific to any individual’s personal financial circumstances. To the extent that this material concerns tax matters or legal issues, it is not intended to be used, and cannot be used, by any investor or taxpayer for the purpose of avoiding penalties that may be imposed by law. Each investor should seek independent advice from a tax professional based on his or her individual circumstances. All content from MissionalMoney.com and SaltyAdvisors.com is provided for general information and educational purposes only. This content is based on publicly available information from sources believed to be reliable. Neither Missional Money nor BayRock Financial, L.L.C. can assure the accuracy or completeness of these materials and this information can change at any time and without notice. Use this material only as general guide to further discussion with your Certified Financial Planner™ professional and/or other Financial Advisor(s).

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