Month: June 2025

Retirement planning is one of the most important financial decisions you can make, and Individual Retirement Accounts (IRA) are one of the best tools available to help you start saving and build long-term security. Whether you’re just getting started or looking to fine-tune your retirement plan, understanding the fundamentals of IRAs is key to reaching your goals.

In this guide, we’ll break down what an Individual Retirement Account is, the benefits of different types of IRAs, how to choose IRA investments, and common mistakes to avoid.

Traditional vs. Roth IRA: Which is Right for You?

When choosing an IRA, the most common decision is between a Traditional IRA and a Roth IRA. Each offers tax advantages but in different ways.

Traditional IRA

• Contributions may be tax-deductible, depending on your income and whether you have a retirement plan at work.
• Taxes are paid when you withdraw the money in retirement.
• Required Minimum Distributions (RMDs) begin at age 73.

According to the IRS, Traditional IRAs are ideal for individuals who expect to be in a lower tax bracket during retirement.

Roth IRA

• You don’t have to pay tax on the earnings that accumulate if you have a qualified distribution.
• No RMDs during the account holder’s lifetime.
• Income limits apply for contributions.

If you anticipate being in a higher tax bracket later or value tax-free income, a Roth or Traditional IRA comparison from NerdWallet can help clarify your best fit.

No matter which IRA you choose, Curis Financial is here to help you open and manage your account with ease.

The Tax Benefits of Contributing to an IRA

IRAs provide attractive tax benefits that can help your retirement savings grow more efficiently.

Tax Advantages Include:

• Tax-deferred growth: With Traditional IRAs, you won’t pay taxes on earnings until withdrawal.
• Tax-free withdrawals: With Roth IRAs, you won’t owe any taxes on qualified withdrawals.
• Potential deductions: Traditional IRA contributions may lower your taxable income in the year you contribute.

These tax perks make IRAs a smart component of any retirement plan. Even small contributions can grow significantly over time thanks to compound interest and tax-deferred gains.

At Curis Financial, our team can help you evaluate your options and take advantage of every tax benefit available to you.

How to Choose the Best IRA Investments

Opening an IRA is just the beginning. The real power comes from how you invest the funds inside the account.

Types of IRA Investments to Consider:

• Stocks: Offer growth potential but come with higher risk.
• Bonds: Provide steady income with lower volatility.
• Mutual Funds: Offer diversification by pooling your money with other investors.
• ETFs: Similar to mutual funds but typically with lower fees.
• CDs and Cash Equivalents: Safer options with minimal return, best for conservative savers.

Choosing the right IRA investments depends on your age, risk tolerance, and retirement timeline. Younger investors might opt for more growth-oriented assets, while those nearing retirement may want to shift toward stability and income.

Need help deciding? Curis Financial offers resources for personalized retirement planning support to help you build a portfolio that aligns with your future.

Common IRA Mistakes and How to Avoid Them

Even the best-intentioned savers can make mistakes. Here are a few of the most common IRA errors and tips for avoiding them:

1. Missing Contribution Deadlines

IRA contributions for the current tax year are due by the tax filing deadline (usually April 15 of the following year). Missing the deadline means losing out on valuable tax savings.

2. Withdrawing Too Early

Taking money out of your IRA before age 59½ may result in taxes and penalties unless you qualify for an exception.

3. Not Taking RMDs (Traditional IRA)

If you don’t take your Required Minimum Distributions on time, you may face steep IRS penalties.

4. Ignoring Beneficiary Designations

Failing to update your beneficiary info could create issues for your heirs. Review these regularly, especially after life events.

5. Choosing the Wrong Type of IRA

Not every IRA suits every investor. Consider your income, tax situation, and long-term goals when deciding between a Traditional and Roth IRA.

Avoiding these common pitfalls can help you maximize your retirement savings and minimize surprises.

Plan Your Retirement with Curis Financial

An IRA is more than just a savings account,  it’s a foundation for your future. Whether you choose a Traditional or Roth IRA, selecting the right IRA investments and understanding how to avoid costly mistakes can make a big difference in your retirement plan.

Ready to take the next step? Visit Curis Financial to explore your IRA options and start building a secure retirement today. Our expert team is here to guide you every step of the way.

Your future is worth investing in. Let Curis Financial help you get there!

Student loans are a major part of many people’s financial lives, especially for those pursuing higher education. Whether you’re in school, repaying your loans, or thinking about refinancing, it’s important to understand how student loans impact your credit. So, do student loans affect credit scores? The answer is yes, in both positive and negative ways.

Let’s explore how student loans appear on your credit report, the ways they can help or hurt your credit score, and how to manage them wisely to protect your financial future.

Understanding How Student Loans Appear on Your Credit Report

Student loans are typically reported to the major credit bureaus (Equifax, Experian, and TransUnion), just like credit cards and personal loans. That means they show up on your credit report and influence your overall credit profile.

When lenders review your credit report, they’ll see:

• The type of loan (federal or private)
• The original loan amount
• The current balance
• Your payment history
• Whether the loan is in repayment, deferment, or forbearance

Curis Financial offers student loan resources and can help you better understand the basics of loan reporting.

Positive Impacts: How On-Time Payments Can Boost Your Score

So, do student loans affect credit scores positively? Absolutely — when managed correctly.

Here are a few ways that making on-time payments on your student loans can help build strong credit:

• Builds a Positive Payment History: This is one of the most significant factors in calculating your credit score.
• Adds to Credit Mix: Having different types of credit (installment loans like student loans and revolving credit like credit cards) is beneficial.
• Lengthens Credit History: If you took out student loans early in your education, they add age to your credit file.

Making payments on time, every month, shows lenders that you’re responsible. Over time, this can help you qualify for other loans, such as a personal loan or mortgage.

You can check out Curis Financial’s resource partner, GreenPath Financial Wellness, for help building positive habits and staying on track.

Negative Impacts: Missed Payments, Delinquency, and Default

While student loans can improve your credit score when handled properly, they can also damage it if you miss payments or fall behind.

Here’s how missed payments can affect your credit:

• 30 Days Late: May be reported to credit bureaus and lower your score and may move into delinquency status.
• 90 Days Late:, May have greater impact on your credit.
• 270+ Days Late (federal loans): This can lead to default, severely damaging your credit and making you ineligible for future federal aid.

According to Federal Student Aid, defaulting on a loan can result in wage garnishment, tax refund seizures, and long-term credit issues.

To avoid falling behind, contact your loan servicer early to explore income-driven repayment plans or consolidation options.

Deferment vs. Forbearance: What Happens to Your Credit

If you’re struggling to make payments, deferment and forbearance are two options that temporarily pause your student loan payments.

Deferment:

• Often used when you’re in school or facing financial hardship
• May pause interest accrual for subsidized federal loans
• Still reported to credit bureaus, but doesn’t hurt your score if payments were on time before the deferment

Forbearance:

• Typically used for short-term financial issues
• Interest continues to accrue on all loan types
• Also appears on your credit report, but does not negatively affect your score unless your account was delinquent before entering forbearance

Both options protect you from missed payments and can prevent long-term damage to your credit. Just remember, they’re temporary fixes, not permanent solutions.

If you’re unsure which path is best, visit Curis Financial or check out our financial aid resources for students to explore your options.

Tips for Managing Student Loans to Protect Your Credit Score

Worried about how student loans affect your credit score long-term? Here are a few tips to help you manage them effectively:

1. Set Up Auto-Pay: Automating payments ensures you never miss a due date.
2. Choose a Repayment Plan That Fits: Federal loans offer several income-based repayment options.
3. Make Extra Payments When You Can: Paying more than the minimum helps reduce your principal and saves on interest.
4. Communicate With Your Loan Servicer: If you’re struggling, don’t wait. Ask for help early.
5. Track Your Credit: Monitoring your credit score regularly helps you spot issues before they grow.

Whether you’re just starting to repay your student loans, or looking to refinance, managing them well can put you on the path to financial wellness.

Need help building a plan? Reach out to Curis Financial and connect with a financial coach through our GreenPath resource.