When the ups and downs of stock markets leave you stressed and wondering whether stocks really will help you pursue your long-term financial goals, there are two things to remember: 1. Historically, over long periods, stocks have tended to move higher. For instance, at the start of October 1987, the Standard & Poor’s (S&P) 500 Index was valued at 327. On Black Monday, October 19, the Index lost 22 percent in a single day. By...
Americans are choosing to retire early. Economists Olivier Coibion, Yuriy Gorodnichenko, and Michael Weber associated with the National Bureau of Economic Research (NBER) have been comparing data gathered in January and April 2020 to learn how labor markets were affected by the crisis. 1 They shared their work in Labor Markets During the COVID-19 Crisis: A Preliminary View. The economists reported the employment-to-population ratio declined sharply from January to early April. In January, 60 percent...
There was a little something for everyone in the ‘Setting Every Community Up for Retirement Enhancement’ (SECURE) Act, a piece of bipartisan legislation that was attached to the United States federal spending bill and signed into law toward the end of 2019. Here are some of its provisions: 1 Tax relief for children with unearned income Authorized federally-penalty-free distributions from retirement plans after the birth or adoption of a child Opened workplace retirement plan participation...
If your income is pie, then the federal government takes a hefty slice each year. A 2020 report from the Tax Foundation found a single average wage earner in the United States pays about 29.8 percent of their income in federal taxes. That’s about $18,368 in federal taxes and does not include state and local taxes. The calculations include: 1 Income tax 15.1 percent Employee paid payroll taxes 7.1 percent Employer paid payroll taxes* 7.6...
The words ‘bear market’ have been bandied about a lot lately. When you read or hear them, remember to respond the same way you would if you saw an actual bear in the woods – by staying calm and keeping your wits about you. A changing bond market environment creates challenges for investors and financial advisors, but it also creates opportunities. Bonds and a bear market Many people believe bonds are risk free. That’s not...
How long will you live? It’s not a question anyone can answer with any certainty, and that creates a significant risk when planning for retirement. Your retirement may last for a long time, and you will need to have enough income to live comfortably without running out of money. Retirement income planning can be like trying to hit a moving target in the wind. The target is moving forward and back because we do not...
There is a simple and unsettling reality in the United States. Most Americans are not financially prepared for retirement. Some are completely unprepared. The Employee Benefits Research Institute (EBRI)’s 2020 Retirement Confidence Survey found almost half (41 percent) of workers have less than $50,000 in personal savings and investments, and about 18 percent has less than $1,000. 1 Many are better prepared. Slightly more than half of survey participants were actively saving for retirement. However...
A Conversation You Need with Aging Parents Dan Taylor faced a precarious situation after his father suffered from a stroke at age 72 and couldn’t live alone. Dan was responsible for looking after him and had no idea how to proceed. He was overwhelmed by the plethora of options and was determined to find a place where his father “would be treated with dignity and respect.” His experience inspired him to write The Parent Care...
As of December 2018, more than 43.7 million retired Americans collected Social Security, with more than 8 million disabled workers collecting benefits as well. But Social Security is much more than retirement income. Along with providing a small income to millions of seniors, Social Security also provides life insurance as well as survivor benefits. If you’re nearing retirement age and still have a lot of questions about Social Security, here are a few facts for...
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither...
Data breaches, once a fairly rare occurrence, have become more frequent as hackers become more skilled in their ability to extract personal data from popular social media sites such as Facebook and Twitter. And while we commonly hear about breaches from these large, global organizations, it’s important to remember that small businesses are just as likely to experience a data breach, meaning your information that is stored at you CPA’s office, your attorney’s office, or...
We all have our own unique relationship with money. We certainly have our own unique way of both spending and saving money. However, if you’re ready to start putting some money aside, or looking for tips on money management, or even the best way to pay your bills, the following tips may provide a little bit of help: Keep track of your income and expenses. This means looking at bank and credit card statements, not...
