​Building a stable retirement plan often starts with choosing the right savings vehicle. Two of the most popular options are the Traditional IRA and the Roth IRA, which offer tax advantages that grow retirement savings in different ways. While the timing of those benefits differs, each account provides flexibility in how account holders can withdraw funds, making them valuable tools for meeting various retirement goals. The decision between the two impacts savings, tax payments, and the management of the retirement plans. Therefore, individuals should weigh the pros and cons of each.

Traditional IRAs allow savers to lower taxable income annually when they make their contributions, shrinking their tax bill upfront. They may have the ability to deduct the contributions, depending on income and participation in an employer’s retirement plan. The money will grow in the account tax-free until the account holder withdraws it, usually after retirement. At that point, officials tax withdrawals like regular income. Because the IRS aims to collect the taxes due, traditional IRAs come with required minimum distributions, or RMDs, that start at age 73.

Roth IRAs flip that setup. Contributions go in after taxes, so there’s no immediate tax break. Some like that the account grows tax-free, and the IRS will not tax qualified withdrawals in retirement, including the original contributions and any earnings.

Roth IRAs don’t come with RMDs, which adds flexibility for people who want to let the money keep growing or pass it on. However, not everyone qualifies to contribute. Income limits restrict who can open or contribute to a Roth IRA directly, though there are workarounds in some cases.

Contribution limits for both accounts are mostly the same. The cap is $6,500 per year for those under 50 and $7,500 for those 50 and older. These limits tend to rise slowly over time to keep up with inflation. Even with matching caps, the long-term tax impact of each account depends on individual circumstances. Someone expecting a lower income in retirement might benefit more from a Traditional IRA. Meanwhile, individuals who believe they may enter a higher tax bracket down the road might prefer the Roth option since they will pay taxes at lower rates.

Individuals also have the option to convert a Traditional IRA into a Roth IRA. Known as a Roth conversion, it offers benefits when income dips or taxes fall. The converted amount incurs taxes as income in the year of the switch, so timing matters. For some, the short-term cost is worth the long-term tax-free growth. Others may find it pushes them into a higher bracket or creates a more significant tax bill than expected.

Making an informed choice between a Traditional IRA and a Roth IRA requires comparing tax benefits. Individuals must also anticipate how changes in income and tax laws might impact retirement down the road. Taking a proactive approach to selecting the right account, whether deferring taxes now with a Traditional IRA or securing tax-free withdrawals in the future with a Roth IRA, can significantly shape one’s financial stability in retirement.

​Life insurance is a contract between a policyholder and an insurance company, ensuring that a designated beneficiary receives a payout upon the insured’s death. The lump sum payment is designed to help loved ones manage expenses such as funeral costs, debts, mortgages, and living expenses, providing peace of mind that family members or dependents will be financially secure in the event of the policyholder’s death.

In exchange for this coverage, the policyholder pays regular premiums, which can be monthly, quarterly, or annually. Life insurance policies come in various forms, including term life insurance, which provides coverage for a specific period—most insurers offer terms ranging from 10 to 30 years—and whole life insurance, which lasts for the insured’s lifetime as long as premiums are paid.

The amount paid out, known as the death benefit, varies based on the policy’s terms, the premiums paid, and the coverage amount chosen at the time of purchase. However, it is important to note that some deaths may not be covered by life insurance policies.

Suicide is one of the most common exclusions in life insurance policies. Most insurers have a two-year exclusion period for suicide, meaning that if the policyholder dies by suicide within the first two years of the policy's commencement, the death benefit will not be paid out. This exclusion is in place to prevent individuals from taking out life insurance with the intent of immediate self-harm to provide financial benefits to their beneficiaries. If the policyholder commits suicide within the two years, the insurer may refund the premiums paid.

Death due to risky activities or hobbies may also be excluded from life insurance coverage. Activities like bungee jumping, skydiving, and extreme sports carry a high risk of injury or death, and insurers may view these as too risky to cover. Similarly, individuals working in high-risk professions such as mining, offshore drilling, or military service may find that their policies exclude deaths occurring on duty. Some insurance companies offer specialized coverage for these professions, but they often come with higher premiums.

Misrepresentation or fraud during the application process is another leading cause of a denied claim. If an applicant provides false information about health, lifestyle, or medical history, the insurance company may contest the claim upon the insured’s death. For example, if someone fails to disclose a pre-existing medical condition or claims to be a non-smoker when they smoke, the company may investigate and refuse to pay out the policy if the death is linked to the undisclosed condition.

Additionally, when a policyholder is murdered, a life insurance claim can be rejected if the beneficiary is suspected of involvement in the policyholder's death. If the beneficiary is convicted of murder, the insurance company will deny them death benefits under the “slayer rule,” which prevents criminals from profiting from their actions. However, if the beneficiary is acquitted of the crime or is not charged, the death benefit will be paid out.

Finally, deaths resulting from drug or alcohol abuse are frequently excluded, especially if the insured was under the influence at the time of death. These deaths are seen as preventable, and if an autopsy report indicates that a policyholder died due to an overdose, an intoxication-related accident, or another substance-induced incident, the insurer may reject the beneficiaries’ life insurance claim.

It is essential to carefully review the terms and conditions of any life insurance policy to understand what is and is not covered, so that beneficiaries are not caught off guard by unexpected claim denials.

​The Administration for Community Living Adults reports that 75% of adults aged 65 years and above will need some long-term care service at some point in their lives. Long-term care can be expensive and take many forms. LTC seeks to address the daily living needs of older persons, such as eating, bathing, and dressing.

Adults in need can receive LTC at home, in a daily care program, nursing home care, an assisted living facility, or a senior living home. The need may arise because of a debilitating injury, chronic condition, or other non-permanent condition that might require constant supervision.

LTC insurance covers the support cost of care for people needing daily living assistance. Some adults enroll in LTC insurance because most private health insurance plans do not provide it. Medicaid and Medicare, for example, cover a person when they require skilled nursing and rehabilitation but only for short periods, such as when recovering from injury or immediately after surgery. Besides, standard health insurance plans might not cover assistance when required for an extended period, necessitating someone to pay out-of-pocket.

An individual can buy LTC insurance through an agent or directly from an insurance company. Some people might buy a LTC insurance policy at work. Additionally, some companies offer the opportunity to purchase LTC coverage from their insurance brokers at group rates. Most states in the US have “partnership” programs with companies working in the long-term care sector to encourage people to not only plan for but acquire long-term care insurance.

When someone buys LTC insurance, they can choose how much coverage they want. Usually, LTC insurance has a maximum daily or monthly benefit. For example, it may cover up to $6,000 per month for a home healthcare worker or nursing home. Some LTC policies only reimburse the amount that policyholders spend. Others may send the insured cash for the value of the benefit regardless of its actual cost once the care delivery starts.

Additionally, the beneficiary can pick a waiting period before the coverage kicks in. The most common period is ninety days. The coverage amount may increase to keep up with rising daily living costs or needs at an additional fee. Also, some LTC insurance plans allow recipients to choose where to receive their care. This, for instance, enables older adults who want to continue receiving care at home with hired assistance as they age.

The cost of long-term care insurance policies varies based on factors such as the person’s health, age, gender, and marital status when they apply for LTC coverage. Like home or auto insurance, the insured usually pays premiums as long as the LTC policy is in effect. Then, they file claims when they require covered services.

Moreover, the cost of LTC insurance also depends on the insurance provider and the desired amount of coverage. Some LTC insurance companies offer couples a shared care option when both buy policies. It allows them to share the total coverage amount. If, for example, one spouse reaches their policy limit, they can still draw from their spouse’s pool of benefits.

LTC has some tax advantages if the insured has itemized deductions, such as IRS-allowed expenses, that can reduce an individual’s taxable income. Specific tax codes within the federal tax system (and in some states) allow individuals to count part or all LTC insurance premiums as tax-deductible medical expenses when they meet certain thresholds.

The information herein is as of the date of publication and is provided for informational purposes only. The content will not be updated after publication and should not be considered current after the publication date. We provide historical content for transparency purposes only. All information is subject to change without notice and due to changes in the market or economic conditions may not necessarily come to pass. Mention of a security should not be considered a recommendation or solicitation to purchase or sell the security.  Past performance does not guarantee future results. The reader assumes the responsibility of evaluating the merits and risks associated with the use of any information or other content and for any decisions based on such content.

​Treasury Bills (T-bills) are short-term bonds or debts backed by the United States Department of the Treasury. The government issues treasury bills in order to manage its liquidity and secure enough capital to fund public spending. The government also uses treasury bills to correct short-term deficits.  

Because they offer a combination of profitability and stability, treasury bills are usually considered the ‘safe-haven’ of the financial world. Treasury bills are appealing to some investors because they are short-term investment plans that do not hold down their funds for a long period. Some treasury bills have maturity periods that are as short as a few days. The most common treasury bill maturity periods are 28 days, 91 days, 182 days, and 364 days. 

Treasury bills are assigned face values ranging from $1,000, $5,000, and $10,000. In this context, face value refers to the value of the treasury bill at its maturity date. Treasury bills are assigned at face value because they are zero-coupon securities that do not pay periodic interest. So, the difference between the treasury bill’s purchase price and its face value usually accounts for the investor’s return or interest earned. For instance, if the Treasury issues an 182-day treasury bill at $90,000 with a face value of $100,000, at the end of the 182 days, the investor will receive $10,000. The $10,000 difference between the face value and the purchase price will account for the investor’s interest earned. This means that the interest accruing from a treasury bill is inbuilt. 

The government issues treasury bills through public auction processes that give both individual and institutional investors the opportunity to bid. Treasury bill auctions involve two major types of bids, namely, competitive and non-competitive bids. Competitive bids give investors the opportunity to offer the discount rate or yield that they are willing to accept. If the investor’s offer is within the range of the government’s capacity, the investor will receive their allocation. On the other hand, non-competitive bids are a type of bid where there is a default discount rate or yield that the investors are expected to accept. After the auction, investors with successful bids are notified, and they make payment for the T-bills. 

Treasury bills are one of the most widely considered investment options because they come with little to no risk. This is possible because they are government-backed, with a very low possibility of the government defaulting on its obligations. Also, treasury bills have more predictable and fixed returns. This means that it is more suitable for investors who need a predictable short-term cash flow. 

Further, investors prefer treasury bills because of their liquidity. Liquidity describes how easily or efficiently a security or asset can be converted into cash without adverse implications on its market price. Investors can easily sell their treasury bills in the secondary market before they mature. Treasury bills also come with tax advantages because they are exempt from both state and local taxes. However, federal taxes apply to treasury bills. 

Factors like government fiscal policy and inflation can determine treasury bill prices. For instance, if the United States government decides to run on budgetary deficits, it might be required to issue more T-Bills to the public. A surplus in supply without corresponding demand might crash the price of treasury bills. Also, when a country experiences inflation, it reduces the public’s purchasing power, making treasury bills more difficult to purchase.

​According to the American Horse Council’s 2023 Economic Impact Study of the United States Horse industry, roughly 1.5 million American horse owners manage approximately 6.65 million horses. Most Americans who ride or work with horses encounter one of a few common breeds, such as quarter horses and Arabian.

The nation’s equestrian community is much larger, with 25 million people participating in horse-based activities annually. Approximately 12 million Americans attend equestrian events yearly, while 4.6 million work in the horse industry. There are more than 300 unique horse breeds in the world. The most common breed in the US is the American Quarter Horse.

Established in 1940, the American Quarter Horse Association (AQHA) has recognized almost six million Quarter Horses in America, more than any other breed. Quarter Horses sprint over short distances, roughly one-quarter mile, and have other athletic traits. The breed also has a calm, even-keeled breed. Americans used the American Quarter Horse as a ranch animal to herd cattle.

Quarter Horses have recently participated in various equestrian competitions, from hunter/jumper events to rodeos and stock horse races. Above all else, the Quarter Horse has a reputation as a reliable family horse.

Meanwhile, the Arabian horse breed originated in Saudi Arabia, where they value horses for their endurance and other traits needed for making long journeys in harsh desert conditions. Desert travelers developed close bonds with their mounts, even sharing a tent at night, resulting in a very people-oriented breed. Arabians have a distinct look, with an angular face and high tail. Professional and recreational equestrians use the Arabian’s versatility and calm temperament to excel in various disciplines, especially endurance-based events.

Native to England, the Thoroughbred is another breed regarded for its speed and all-around athletic ability. Many Americans recognize Thoroughbreds as the horses that compete in major equestrian races such as Belmont Stakes, Preakness Stakes, and the Kentucky Derby. Thoroughbreds also compete in various events outside of racing, such as fox hunting, dressage, and hunter/jumper competitions.

The Appaloosa is another equine breed native to the US. First bred by the Nez Perce Native American tribe, these horses feature spotted, mottled coats and striped hooves. The striking imagery makes the Appaloosa a common selection for parade participants. Appaloosas frequently appear in English and Western riding events as a competitive breed.

Finally, the Morgan breed of horses originated in New England in the 19th century. The Morgan is the state horse of Vermont and Massachusetts. It was a favorite among ranchers and farmers, valued for its strength and determination. The Morgan gained national attention during the Civil War and has grown in popularity over the last century-plus.

Again, there are hundreds of breeds for equestrians and horse owners to consider. In addition to these examples, well-known horse breeds include the Clydesdale, the American Paint Horse, the American Saddlebred, Icelandic horses, and miniature horses. Young or children interested in riding may benefit from choosing from the various pony breeds, such as the Shetland pony. It allows them to practice with less aggressive breeds.