Managing 401(k) investments is crucial to planning one's financial future. Two primary ways to manage investments are to do it yourself (DIY) or work with a financial professional. However, the decision ultimately depends upon comfort level, knowledge of investment strategies, and available time. Here is what investors must consider for each method—DIY or financial professional management—before making a decision.

The DIY method

A DIY investor must watch the market trends and adjust their portfolio to manage returns while minimizing risks. This approach requires time commitment, patience, and emotional self-control to avoid making impulsive decisions during market fluctuations. In addition, a DIY investor must understand the following:

· Investing principles

· Stock market dynamics

· The potential risk of each investment

Determining the DIY portfolio mix

A DIY investor must watch the market trends and adjust their portfolio to manage returns while minimizing risks. This approach requires time commitment, patience, and emotional self-control to avoid making impulsive decisions during market fluctuations. Before investing, DIYers must consider:

Divorce can significantly change life and has considerable implications for taxes. Tax filing after divorce requires an understanding of new filing statuses, exemptions, child deductions, alimony, and property settlements, among other factors. Here are the steps to help navigate filing taxes the first year after divorce.

Step #1- Understand your filing status

Tax filing status predominantly affects the amount of taxes one pays. One's marital status on December 31 determines one's tax filing status for that year. If the divorce is final before the end of the year, the IRS considers you unmarried for the whole year. Therefore, it's required to file as single or head of household.

· Single—Single status may be appropriate for taxpayers who do not qualify for other filing statuses.

· Head of household—Head of household status typically allows for a higher standard deduction and lower tax rates than the single-filing status. One may qualify for this status by maintaining a household for a child, dependent parent, or other qualifying relative for more than half the year and being unmarried or considered unmarried at the end of the year.

Owning luxury assets such as exquisite homes, cars, yachts, and priceless art pieces requires safeguarding them against potential risks or loss. This is where umbrella insurance comes into play, acting as an extra layer of protection above regular insurance policy coverage, shielding the owner from significant financial loss.

For those with substantial luxury assets, umbrella insurance is crucial for preserving investments and maintaining financial stability in the event of a loss, which can result in a decrease in value. However, there's more to know before purchasing this unique insurance.

Why purchase Umbrella Insurance?

Typically, standard insurance policies pay up to their limit. However, what if the damages are substantial and the claim's cost exceeds the policy's limit? Enter Umbrella Insurance—a comprehensive coverage policy that kicks in when the regular property insurance policy is maxed out.

The risks associated with luxury assets are often higher. For example, a multi-million-dollar home has more value at risk than a typical suburban house, and a high-end luxury car may be more liable in the event of an accident.

For instance, consider an incident where a guest at a luxury property suffers from an unfortunate accident and decides to sue. The homeowner's policy might cover the medical bills up to its limit. Still, if the affected party files a lawsuit demanding extensive compensation, the cost could exceed the policy limits. Umbrella insurance helps protect assets from premature liquidation, allowing the lawsuit's claim to be paid.

Treasury bills, often referred to as T-bills, are considered a secure and reliable investment option suitable for some investors. Governments worldwide offer this option, enabling investors to allocate funds in a low-risk environment while earning a return.

While the safety of T-bills may be a significant attraction for investors, they typically offer lower returns than other investment options, such as stocks, bonds, or mutual funds. Understanding this trade-off between risk and reward is necessary to make an informed decision. Therefore, investors must approach T-bills strategically while considering the following tips.

1. Understanding what T-bills are is essential

A T-bill is a short-term government debt issue with a maturity period ranging from a few days to 52 weeks. It is sold at a face value discount, and the return on the investment is the difference between the purchase price and the price paid by the government at maturity.

2. Identify investment goals beforehand

Evaluating one's financial goals before investing in T-bills is essential. They may be suitable if one aims to earn a consistent return, albeit with lower yields compared to higher-risk investments.

Life insurance and annuities are essential financial planning tools for providing future independence. Each may be part of a comprehensive financial plan depending on one's situation and goals.

But first, it’s essential to understand what each is.

• Life insurance—Life insurance is a contract with an insurance company in which, in exchange for premium payments, the company promises to pay a sum of money, called a death benefit, to beneficiaries upon your death.
• Annuity— An annuity is a contract issued and distributed by an insurance company and bought by individuals. The insurance company pays the purchaser a fixed or variable income stream in exchange for the premium.

Here’s how to determine which may fit your needs, depending on your circumstances.

1. You have dependents

Life insurance may be appropriate if your dependents count on your income. Apart from providing independence to your loved ones in case of your untimely death, some life insurance policies also offer investment options, allowing the death benefit to grow over time. Life insurance can provide for lost income and pay for dependent care and education.

2. Retirement income is important to you

Among various real estate investment options, purchasing parcels of undeveloped land has seen a substantial surge in popularity. In recent years, farmland has also become a popular investment for many who have no intention of farming but intend to lease parcels for agricultural production as a source of income. As land values continue increasing, due diligence is recommended before a deal is carried out. Like any investment, investing in land also comes with risks.

Raw land: A blank canvas

Undeveloped land, often termed 'raw land,' provides a blank canvas for the real estate investor. The potential uses for this land are virtually limitless, from residential housing projects to commercial developments or even agricultural utilization. However, the primary lure of undeveloped land is its inherent potential for substantial profit margins. Real estate investors acquire these large parcels with hopes that urban expansion or developmental projects may increase the land's value over time.

Lower cost- Investors often prefer purchasing larger parcels due to economies of scale. Larger parcels typically cost less than smaller ones, providing investors with more space and optimal utilization potential. Moreover, securing sizeable pieces allows for a broader range of development possibilities, increasing the chances of a higher return on investment.

Losing a spouse can be an incredibly challenging time. Amidst the emotional turmoil, there's the daunting task of dealing with finances and filing income taxes at the end of the year.

Facing the aftermath of a loved one's death is challenging, and dealing with income tax returns can add to the stress. However, the steps outlined here can make the process more straightforward.

Step #1- Identify the filing status

The first step in filing income taxes after the death of a spouse involves determining your filing status. If your spouse passed away during the tax year, the IRS still considers you married for the entire year for tax purposes. Therefore, you must file a joint return using the "Married Filing Jointly" status.

However, if you have dependent children, you may be able to use the "Qualifying Widow(er) with Dependent Child" status for two years following the death, granting you the same benefits as a joint return. A financial or tax professional can help determine the filing status for your situation and clarify any questions you may have.

Even if your spouse filed married filing separately, income taxes must be filed for the year of their death.

529 plans can benefit adults in numerous ways besides being a savings vehicle for a child's education. It offers a straightforward way for adults to finance their education, take non-qualified distributions, fund a Roth IRA, and, under certain restrictions, make payments towards outstanding student loans.

The flexibility of a 529 plan provides adults with numerous options for using the monies.

Adult education funding- Using a 529 plan for adults returning to school is remarkably straightforward. Contributions to a 529 plan grow free from federal and, in most cases, state taxes. These distributions are tax-free when withdrawn and used to pay for qualified higher education expenses such as tuition, fees, books, and room and board for beneficiaries enrolled at least half-time. Adults can even set up a 529 plan on their behalf, making themselves both the account owner and the beneficiary.

Non-qualified distributions- A 529 plan allows non-qualified distributions for purposes other than educational expenses. However, it's essential to know that withdrawing money for non-educational expenses may result in income tax on any earnings portion of the distribution and a 10% penalty. The penalty can be waived in specific circumstances, for example, if the beneficiary receives a scholarship or attends a U.S. military academy. To understand how non-qualified distributions work and if a non-qualified waiver would apply, consult a financial professional.

Tariffs are pivotal in shaping domestic and global trade policies and economic events. Implementing tariffs may impact countries, manufacturers, businesses, and investors alike.

Therefore, understanding the correlation between tariffs and an investor's portfolio performance is vital. Here, we provide a brief history of tariffs, their significance, and how they impact investors.

Tariffs and policies

Tariffs have a long history in the U.S. as they were once a significant source of governmental revenue; in 1913, income tax replaced tariff monies. In 1930, the Smoot-Hawley Tariff Act increased tariffs on over 20,000 imported goods, triggering a trade war that prolonged the Great Depression.

The U.S. has continued its policy on tariffs for various reasons, such as to protect domestic interests, as leverage in negotiations, and to capture a share of global wealth.

Other policies have emerged, signaling a shift toward imposing tariffs on imported goods worldwide:

• 1947- The General Agreement on Tariffs and Trade (GATT)
• 1995- The World Trade Organization's agreement on trade equalization and reducing tariff barriers.

A tool with far-reaching implications

Social Security, established in 1935, provides financial benefits to the elderly, disabled, and disadvantaged groups. However, there are concerns regarding its sustainability.

Social Security is particularly concerning among younger generations who are not yet receiving benefits and must continue paying SSI taxes despite their future benefits being reduced or, at worst, discontinued. So, should you be concerned about the state of Social Security? The answer, while multifaceted, tends to lean toward the affirmative.

Reasons for concern

There are several reasons for concern about Social Security's sustainability.

Demographic changes—The number of baby boomers born between 1946 and 1964 are reaching retirement age, and their numbers are significant. As they draw Social Security retirement benefits, fewer workers contribute to the program, straining the system's financial resources.

Longer lifespans—Due to advancements in healthcare and technology, People are living longer than ever. While longer lifespans are a positive development, they also mean that individuals draw upon Social Security benefits for extended periods. This increased longevity, combined with the influx of retiring baby boomers, puts increasing pressure on an already burdened Social Security system.