Will Social Security benefits be lost? While the program has long been underfunded, those already receiving or nearing retirement benefits are unlikely to be affected. Several policy changes, such as raising the retirement age or increasing payroll taxes, could stabilize the system, but younger individuals should prepare for saving for retirement now.
Pre-tax retirement plans have been a favored vehicle of investors and financial advisors for many years. As a financial advisor, I have held the opinion that these plans are one of the, if not the, best way to save for retirement.
Partnering with an independent, local, family-owned financial advisory firm offers a range of benefits that can enhance your financial planning experience. Full disclosure: I am a little biased in this opinion. Financial Strategies Group (FSG), the firm I am blessed to be a part of, fits this criteria.
In my opinion, Qualified Charitable Distributions (QCDs) are one of the most underutilized tax strategies around today. This is especially true considering the increased standard deduction amount implemented by the “Trump Tax Law.” Those who qualify and are already giving to charity often get significant tax savings with little-to-no downside by utilizing them. In this article, I will go through some basics of QCDs and three ways they can save taxpayer's money.
For over a decade (from 2009 through 2021), many investors dismissed these investments because the interest they could earn was almost laughable. However, things have changed! Since the end of 2021, interest rates have increased dramatically on virtually all interest bearing investments. As a result, the interest you can earn on your “safe” money through investments like CDs and annuities has more than doubled. By the end of this article, you will better understand when and how you can use each of these investments to maximize your financial well-being, improve your retirement, and keep your money working hard for you.
I grew up in a small town outside of Flint, Michigan called Swartz Creek. Many of the people in our community worked for one of the “Big Three” automakers, including my uncle, all three of my best friends’ dads, and many of my extended family. These companies were a classic example of a typical 20th-century employer. Right out of high school you could get a good job and make a very good living. It was certainly not easy work, but if you stuck with it for 30 years you would be well taken care of with an opportunity for early retirement, a good pension, and excellent health care benefits. Today, things are very different.
Do- Diversify your portfolio. This may sound cliché but it is vitally important. Diversification acts as an insulator against the ups and downs of the market. Don't- Try to time the market! Market timing is making investment decisions based on the expectation that the market will go up or down in the short term.
From where did you learn most of your life skills? How did you learn to brush your teeth, read, write, or drive a car? Personally, I learned these things from my parents and teachers. Here is a topic that affects just about every facet of our lives and many parents have limited knowledge of it and it is often not covered in school: finances! Finances are consistently listed as one of the top reasons for divorce, and money is one of the biggest causes of stress for Americans.