An overview of its current financial dilemma and potential solutions. Will Social Security be different when you retire? Its reserves are projected to be depleted by 2034, and if that happens, the program could pay retirees only about 80% of projected retirement benefits.1 Since 2010, Social Security has paid out more than it has taken in. With roughly 10,000 …
Missteps That May Negatively Impact Estate Plans
Inattention and procrastination can hurt family wealth. Some estate planning is better than none, but sometimes people address wealth transfer issues inadequately or ineptly when they tackle the task. Here are some classic miscues. Waiting too long. A wealthy individual may postpone estate planning until too late in life, which may present obstacles due to diminished faculties or declining health. …
Tackling Student Loan Debt
What options do you have if you risk a default? Have you made a federal student loan payment in the last three months? About 11% of federal student loan borrowers have not and are therefore in default. That default rate only represents the borrowers entering repayment.1 More than 8.1 million Americans are behind on federal student loan payments. If you …
50%, 20%, 30%: A Money Rule to Consider
One rule that can help you budget your income. Try the 50/20/30 technique for managing your household money. Applied over time, it may improve your financial picture. Here’s how you can do it: Assign 50% of your income to essential expenses. Think food, rent, transportation costs, and utilities. Try to avoid using up more than half your monthly income for …
Time is Your Friend
A look at the potential of compounding and early, steady investing. Time may be the greatest asset for the young investor. While some people may frantically try to catch up on retirement saving after age 50, you have the chance to harness the power of compounding by starting decades earlier. When you start may matter more than how (or how …
College Won’t Pay for Itself. How Will You Pay for It?
You may have more choices than you think. Is creating a college fund on your to-do list? Consider these options. 529 plans. Anyone can contribute to these savings vehicles. Some let you prepay college tuition; others allow you to accumulate and invest education funds. Earnings on investments in a 529 plan grow tax-deferred, and withdrawals are exempt from federal taxes …
Will You Retire in a Bull or Bear Market?
Learn how that could affect your retirement strategy A bull market can promote overconfidence. You may be lulled into thinking that the major indices will rise for years to come. That is not a given. The danger arrives if the market slumps and your income is too heavily tied to equity performance. The upside is that when the bulls run, …
Options for Your Tax Refund
What should you do with the money? A look at some choices. Each year, about 70% of taxpayers receive a federal tax refund. The average IRS refund is substantial—$2,800. What could you do with a tax refund sent to you? You could invest that money. It could go into your workplace retirement plan, an Individual Retirement Account, or a college …
The Risks of D.I.Y. Investing & Financial Planning
In trying to do it yourself, there’s the chance you could do it all wrong. Many successful people refrain from trying to plan their financial futures. They delegate that job to professionals, as they lack the time, inclination, or knowledge to do it themselves. This makes sense. It takes years to gain a thorough understanding of financial market cycles and …
What to Do Before 30 if You Want to Build Wealth
Some key financial steps that you could take. Your twenties are the perfect time to save and invest. Do it now, and you will have a great ally—time—on your side. Think about doing the following things if you’re not doing them already. Put money into a retirement plan. Save and invest through a 401(k), a 403(b), a Roth or traditional …