Sheryl Jarvela (@sheryljarvela)

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Early IRA Withdrawals Without the Penalty: 10 Ways to Access Your Funds

2024-05-18

Unlocking Early IRA Withdrawals Without the 10% Penalty IRAs are widely used for retirement savings due to their tax benefits. However, early withdrawals before age 59½ typically incur a 10% penalty. Here’s how you can access your IRA funds early without facing this penalty: 1. First-Time Home Purchase: Individuals can withdraw up to \$10,000, while couples can withdraw up to \$20,000 for a first-time home purchase. You must not have owned a home within the past two years. Any unused funds must be returned to your IRA within 120 days of withdrawal to avoid the penalty. 2. Educational Expenses: Withdrawals can be made for higher education expenses, including tuition, fees, books, and living expenses. The student must be at least a half-time student. Withdrawals may impact financial aid eligibility. 3. Major Medical Expenses: Withdrawals are allowed for medical expenses exceeding 7.5% of your adjusted gross income. Only the amount exceeding the threshold is eligible for penalty-free withdrawal. 4. Roth IRA Eligibility: Roth IRAs allow penalty-free withdrawals of contributions after they have been held for at least five years. Withdrawals of earnings still incur taxes and potential penalties. 5. Disability: Withdrawals are permitted if you are unable to work due to a physical or mental disability. Documentation from a physician is typically required. 6. New Parent Exception (2020): Parents of newborns or adopted children can withdraw up to $5,000 penalty-free within one year of the child’s birth or adoption. Funds not needed can be returned to the IRA. 7. Military Service: IRA withdrawals during active duty for 180 days or more are penalty-free. 8. Annuity Payments: Penalty-free withdrawals can be made through a series of IRS-approved annuity payments. Consult a professional to ensure correct calculations. 9. Inherited IRAs: Beneficiaries of inherited IRAs can make penalty-free withdrawals. However, penalties may apply if the IRA is treated as your own. Remember, these exceptions may not apply to all situations. It’s important to consult with a financial advisor or tax professional to determine your eligibility and minimize any potential penalties.

#irawithdrawals
#rothira
#disability
#medicalexpenses
#inheritedira
#firsttimehomepurchase
#earlyirawithdrawals
#10percentpenalty
#penaltyfreewithdrawals
#educationalexpenses

Divine Abundance Prayer: Manifest Prosperity and Breakthrough

2024-04-26

In this transformative prayer, we invoke the power of the Divine to release any obstructions that hinder our growth and manifest our desires. With unwavering faith, we beseech the Lord to elevate us from despair and grant us the abundant blessings we deserve. As we perform this prayer, we envision a limitless flow of energy bringing forth opportunities for wealth and prosperity. We affirm our worthiness for these blessings, trusting that they will come to us through divine favor. We anticipate a favorable response, knowing that the power of the universe is working in our favor. By expressing our gratitude for the blessings that are already manifesting, we amplify their power. We acknowledge that we are becoming a magnet for wealth, attracting it whenever we desire. The divine reign of prosperity is showering upon our households, and we receive it with profound appreciation, knowing that it will continue to bless us for a lifetime.

#gratitude
#spiritualgrowth
#transformation
#manifestation
#lawofattraction
#financialsuccess
#miracles
#divinefavor
#divineprayer
#abundanceprayer

Master Your Finances with Numbers: Unveiling Budget Templates

2024-04-23

In this video, we review two helpful budget templates available in Apple’s Numbers app. The first template is called “Simple Budget” and provides a straightforward interface for tracking income and expenses. We demonstrate how to add and edit categories, as well as adjust values to see how they impact the overall budget. The second template, “Personal Budget,” offers a more detailed approach, allowing you to categorize transactions and compare actual spending to your budget. We show you how to add transactions, select categories, and track your progress over time. Both templates are color-coded and feature charts that visually represent your financial data. Additionally, the “Personal Budget” template includes a “How to Use” section that provides guidance on setting up and managing your budget effectively. Whether you prefer a simple or more comprehensive tracking system, these templates offer a convenient and efficient way to manage your finances in Numbers. By using these templates, you can gain insights into your spending habits, identify areas for improvement, and make informed financial decisions. If you’re seeking a more hands-off approach to budgeting, you may prefer third-party apps like Mint.com. However, if you’re comfortable managing your finances directly and want to avoid sharing your data with external platforms, these Numbers templates provide a valuable alternative. To get started with the Simple Budget template, simply double-click on the file to open it. Then, edit the income and expense categories to match your needs. You can also add new rows to track additional income sources or expenses. For the Personal Budget template, select the “Transactions” sheet to enter your transactions. Use the pop-up menu to categorize each transaction and track your actual spending. The “Summary” sheet will automatically update to show your progress towards your budget goals. By utilizing these templates and regularly reviewing your financial data, you can stay organized, make better financial choices, and achieve your financial objectives.

#financialplanning
#personalfinance
#moneymanagement
#financialliteracy
#budgeting
#finance
#budgetingtips
#expensetracking
#numbersapp
#applenumbers

Is It Safe to Keep Money in Banks? What You Need to Know After Recent Bank Closures

2024-04-06

In light of recent regional bank collapses, concerns about the safety of personal funds are valid. Financial advisors generally reassure that leaving substantial funds in a single bank remains secure. However, it’s prudent to consider certain measures if your deposits exceed $250,000, the FDIC insurance limit. Diversifying your savings across different accounts within the same bank or opening additional accounts such as joint accounts or beneficiary accounts for your children can maximize your FDIC insurance coverage up to $1 million. Alternatively, consider splitting your funds between multiple banks, ensuring exposure to both small and large institutions. Evaluating the rationale behind maintaining significant cash holdings is also advised. With high-interest rates, attractive returns on liquid and risk-free investments like short-term treasury bills provide viable alternatives. Unlike the 2008 crisis, the economy exhibits positive indicators, suggesting preparation through selective investments and diversification is key.

#financialplanning
#moneymanagement
#diversification
#riskmanagement
#economicoutlook
#investmentstrategies
#financialsecurity
#fdicinsurance
#bankingcrisis
#treasurybills

Unleash Your Earning Power: 4 Side Hustles for Easy Money

2024-04-01

Video Description Unveiling four unconventional side hustles that can potentially earn you over $900 per day, requiring minimal skills. Hustle 1: Trash Can Cleaning Capitalize on the growing demand for trash can cleaning services. Start with a \$70-\$150 pressure washer and low-cost soap or a separate sprayer. Create affordable door-hanging flyers to advertise your services. Charge around \$65 for one-time cleanings and \$35 for monthly recurring services. Hustle 2: Canvas Artwork Sales Create motivational canvases, pop culture remixes, or public domain artwork. Utilize print-on-demand services like Printify to handle production and shipping. Sell through your Etsy store or explore other platforms. Find inspiration on sites like Designspiration.com and Envato Elements. Hustle 3: Amazon Product Video Reviews Make money by creating video reviews for products on Amazon. Earn a commission when viewers watch at least 30 seconds of your video and purchase the product. Focus on products with high sales volume and limited video reviews. You can buy the product, review it, and return it for no upfront cost. Hustle 4: Reselling AliExpress Products Find highly discounted products on AliExpress and resell them at a marked-up price on platforms like Amazon and Etsy. Use Google Trends to identify popular products. Determine competitive pricing by researching top-selling products on Amazon. Start with a small inventory and scale up as your business grows. Additional Tips Minimal Skill Required: All four hustles require minimal skills and can be easily learned. Low Start-up Costs: Start most of these businesses with less than $300. High Earning Potential: Each hustle has the potential to earn over $900 per day. Action-Oriented: Take the initiative to start these side hustles and earn extra income. Growth Opportunities: These hustles can scale into full-time businesses with high earning potential.

#entrepreneurship
#sidehustle
#workfromhome
#passiveincome
#makemoneyonline
#productreviews
#reselling
#printondemand
#etsy
#canvasart

The Art of Enjoying Life on a Budget

2024-03-31

Enjoying Life on a Budget: A Journey of Balance In our quest to live a fulfilling life, financial constraints often loom over us like a dark cloud. But what if we could embrace the beauty of life without breaking the bank? This video embarks on a journey of financial balance, where we explore the delicate art of holding on and letting go. From Frugality to Fulfillment In our younger years, many of us succumb to the allure of overspending, living beyond our means. But life’s unforeseen challenges, like the 2008 recession, can force us to confront our financial realities. It was during this time that I embarked on a journey of budgeting, meticulously tracking every dollar to ensure our family’s financial well-being. However, in our pursuit of financial security, we can sometimes swing too far in the opposite direction, becoming overly frugal and depriving ourselves of life’s simple joys. I had fallen into this trap, developing a scarcity mindset that left me feeling anxious and restricted. Finding the Sweet Spot Over the years, I’ve learned that financial balance is not about deprivation but rather about mindful spending. By identifying the things that truly enhance our lives, we can prioritize our expenses and cut back on unnecessary purchases. For me, travel sparks a deep sense of joy and fulfillment. Immersing myself in new cultures, tasting exotic cuisines, and witnessing breathtaking landscapes enriches my soul. While travel can be expensive, I’ve found ways to make it more affordable, such as cooking meals at our accommodation or opting for budget-friendly destinations. The Rewards of Simplicity Beyond travel, I’ve discovered that many of life’s greatest pleasures come at little to no cost. A leisurely stroll through a local market, the smell of freshly baked bread wafting from a nearby bakery, or simply sitting on a beach watching the sunset—these are experiences that fill my heart without emptying my wallet. The Power of Small Savings Embracing frugality doesn’t mean sacrificing comfort or convenience. Small changes in our daily habits can add up to significant savings. For example, air-drying clothes instead of using a dryer not only reduces energy consumption but also gives our clothes a fresh, sun-kissed scent. A Budget for Life, Not a Life in a Budget By striking a balance between holding on to our financial security and letting go of unnecessary expenses, we can create a budget that supports our well-being without stifling our joy. Remember, enjoying life doesn’t have to break the bank. It’s about finding ways to live a fulfilling life within our means, appreciating the simple pleasures and investing in experiences that truly enrich our souls.

#**most
#relevant
#hashtags

The Secret to Building Wealth: Your First $100,000

2024-03-22

This profound advice from a millionaire I admired as a child has stayed with me ever since: “Don’t worry about earning millions; instead, focus on the first \$100,000 because after that, your net worth will skyrocket." Initially, I didn't fully grasp his words, but I trusted his guidance and concentrated on reaching that initial \$100,000 milestone. As it turned out, his advice proved to be invaluable. There are two primary reasons why amassing the first $100,000 is particularly challenging. Firstly, your earning capacity is akin to your level in a video game; you haven’t played long enough to develop the necessary skills to compete with more experienced players. This is especially true for younger individuals, as they face heightened competition for higher-paying positions due to older professionals remaining in the workforce longer. However, the internet presents a unique opportunity for younger generations to supplement their income. With social media platforms like Instagram and the ease of starting online side hustles, they can potentially earn far more than their older counterparts, who may not possess the same level of digital literacy. The second obstacle in reaching the \$100,000 mark is the limited potential for compound interest. Compound interest is like a snowball that grows as you invest and earn returns on your investments. However, when your principal is below \$100,000, the snowball is too small to accumulate significant growth. For example, if you invest \$10,000 in an S&P 500 Index Fund with an average annual return of 7%, it will take five years to grow to \$14,175. This modest growth highlights the importance of focusing on increasing your contributions to your investment pot rather than relying solely on compound interest. To overcome these challenges, I recommend implementing the GROWTH method I developed during my early wealth-building journey. “G” stands for “Gain control of your finances” through budgeting. Budgeting is not about deprivation; it’s about making informed choices and distinguishing between needs and wants. “R” represents “Root your investments.” By investing consistently, even small amounts, over a long period, the power of compound interest can work its magic. For instance, investing \$250 monthly in an S&P 500 Index Fund with a 7% average annual return can yield over \$650,000 in 40 years, with $536,000 coming from compound interest. “O” stands for “Optimize your tax management.” While paying taxes is a responsibility, there are legitimate ways to reduce your tax burden. Entrepreneurs, for example, can deduct business expenses from their profits, effectively reducing their taxable income. “W” refers to “Weed out debts.” Unpaid debts can hinder your financial progress due to high interest rates. Prioritize high-interest debts and make regular payments, even small ones, to gradually reduce them. “T” stands for “Tap into additional streams of income.” Starting a side hustle can supplement your income, allowing you to invest more, diversify your income sources, and accelerate your wealth-building journey. Finally, “H” represents “Heightened self-discipline.” Embracing self-discipline is crucial for implementing these strategies and achieving your financial goals. If you’re determined to build wealth, self-discipline will be your most valuable currency.

The Ultimate Step-by-Step Guide to Saving for a House

2024-03-14

Step 1: Determine Your Financial Target Saving for a house requires a clear financial goal. Calculate the home’s total cost, including mortgage, interest, taxes, insurance, HOA fees, and utilities. These expenses should not exceed 30% of your monthly net income. Use this figure as your down payment target. Step 2: Establish a Timeline Set a realistic timeframe for purchasing your home. Divide your down payment target by the number of months until your desired purchase date to determine your monthly savings goal. Step 3: Find a Savings Haven Choose a low-risk, high-yield savings account or money market account for your savings. These accounts offer easy access to your funds when needed. Avoid risky investments with potential for loss. Step 4: Automate Your Savings Set up automatic transfers from your checking account to your savings account. Automate weekly or monthly amounts to simplify the process and ensure consistent saving. Step 5: Accelerate Your Savings Allocate additional income sources, such as bonuses, tax refunds, or the sale of assets, towards your savings goal. Each extra dollar saved reduces the time it takes to reach your target. Additional Considerations: Remember that owning a home involves ongoing expenses such as maintenance and property taxes. Avoid rushing the process and consider all financial aspects before making a purchase. Determine if homeownership aligns with your lifestyle and long-term plans.

#financialplanning
#firsttimehomebuyer
#personalfinance
#moneymanagement
#wealthbuilding
#mortgage
#financialgoals
#homeownership
#downpayment
#realestate

Sinking Funds: The Ultimate Guide to Stress-Free Expense Planning

2024-03-05

In this video, we explore the concept of sinking funds and how they can help you manage upcoming expenses. A sinking fund is essentially a dedicated savings account for a specific expense that you know will occur in the future. Examples of common sinking funds include car maintenance, Christmas expenses, birthdays, holidays, and car insurance. These expenses tend to be hefty, requiring a significant amount of money that may strain your budget if paid for all at once. That’s where sinking funds come in. By setting aside a small amount of money each month towards a sinking fund, you can gradually accumulate the necessary funds to cover these expenses when they arise, avoiding the need to tap into your emergency savings or go into debt. Suppose you want to save for Christmas, which occurs every December. Starting your sinking fund journey in January allows you to allocate a small portion of your budget towards this goal over the next 12 months. By setting aside \$21 per week, you'll accumulate approximately \$1,000 by Christmas, ensuring you can comfortably cover the expenses without financial stress.

#financialplanning
#moneymanagement
#financialfreedom
#financialliteracy
#cashflow
#savemoney
#budgetingtips
#moneysaving
#debtfreeliving
#sinkingfunds

Sinking Funds: The Ultimate Guide to Financial Stability

2024-02-20

The Power of Sinking Funds: A Guide to Financial Security Sinking funds are a cornerstone of personal finance, offering a strategic and stress-reducing approach to budgeting for both expected and unexpected expenses. By allocating specific savings accounts for different purposes, you can break down large expenses into manageable monthly contributions. Common Sinking Funds Car Repair Fund: Prepare for inevitable car maintenance and repairs by setting aside a portion of your income each month. Car Replacement Fund: Plan for the eventual need to replace your vehicle by accumulating a gradual savings over time. Home Repairs Fund: Anticipate the ongoing maintenance and repairs associated with homeownership by setting up a dedicated fund. Water Bill Fund: If your water bills are paid quarterly, establish a sinking fund to avoid large, unexpected expenses. Pet Expenses Fund: Cover the costs of veterinary care, grooming, and other pet-related expenses with a dedicated sinking fund. Christmas Fund: Ensure a stress-free holiday season by allocating a monthly amount towards Christmas gifts and expenses. Gift Fund: Set aside money throughout the year to cover gifts for birthdays, weddings, and other special occasions. Clothing Fund: Avoid impulse purchases and save for necessary clothing expenses by creating a sinking fund. Travel Fund: Make your vacation dreams a reality by contributing to a travel sinking fund, allowing you to pay for trips in cash. Insurance Bills Fund: Break down hefty quarterly or semi-annual insurance bills into manageable monthly payments with a sinking fund. Medical Bills Fund: Prepare for any unexpected medical expenses by setting aside funds in a dedicated sinking fund. Back to School Fund: Ease the financial burden of back-to-school expenses by saving throughout the year. Yearly Renewals and Subscriptions Fund: Avoid surprises and ensure timely payments for annual memberships, subscriptions, and other recurring expenses. Remember, the specific sinking funds you establish will depend on your individual financial situation and priorities. Start by identifying your most pressing expenses and gradually add funds as your budget allows. Sinking funds empower you to address financial challenges proactively, reduce stress, and achieve your financial goals.