When it comes to 401(k) contributions, there is a fine line between maximizing your savings and making financially sound decisions. While it is tempting to contribute the maximum amount allowed into your 401(k) plan, it may not be the best choice for everyone. Financial advisors advise that before making the decision to maximize your contributions,
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The Covid-19 pandemic brought about a significant change in the labor market dynamics of the United States. Remote work, which was once considered a temporary solution, has now become a permanent fixture, according to economists. Nick Bunker, the economic research director for North America at job site Indeed, describes the work-from-home revolution as one of
As retirees, it is crucial to have a clear understanding of the various sources of income that may be available to you, including Social Security, pensions, retirement plans, and other financial resources. Managing these income streams effectively requires careful planning to ensure compliance with IRS regulations and avoid potential penalties. For the year 2024, retirees
As you approach retirement and start facing mandatory withdrawals in the form of required minimum distributions (RMDs), it’s important to view this as an opportunity rather than a burden. These withdrawals can trigger higher taxes, but experts suggest that you can leverage RMDs to optimize your portfolio. Matthew Saneholtz, a certified financial planner, advises retirees
Former President Donald Trump and Vice President Kamala Harris have unveiled their economic agendas, both calling for tax changes that could impact millions of Americans. The Tax Cuts and Jobs Act (TCJA) enacted by Trump includes provisions such as lower federal income tax brackets, a higher standard deduction, a bigger child tax credit, and more
The federal minimum wage has remained stagnant at $7.25 per hour for the past 15 years, providing little relief for the workers it is meant to support. This lack of increase in the minimum wage has left many workers struggling to make ends meet as the cost of living continues to rise. **The Need for
Vice President Kamala Harris recently unveiled an economic plan that includes an expanded child tax credit worth up to $6,000 in total tax relief for families with newborn children. This proposal is aimed at restoring the higher child tax credit that was enacted through the American Rescue Plan in 2021. The 2021 credit provided a
As retirement nears, investors need to be aware of a potential threat known as the “sequence of returns risk.” This risk, also called “sequence risk,” arises when poor investment returns are coupled with withdrawals, particularly in the early years of retirement. The combination of these factors can gradually diminish a retiree’s nest egg over time.
Former President Donald Trump has recently proposed a bold idea for Social Security reform: ending taxes on benefit income. While this proposal may seem appealing to seniors who rely on these benefits, there are several critical issues that need to be addressed. Rep. John Larson, D-Conn., pointed out a significant flaw in Trump’s plan: the
As investors grapple with economic uncertainty, financial advisors are providing guidelines on the appropriate amount of cash that should be set aside for emergencies. Despite the second-quarter economic growth, a significant number of Americans still believe that the U.S. is in a recession. The opinions are divided, with some experts projecting a recession while others