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.

Inflation is the rate at which the cost of goods and services rises. Inflation is measured by the consumer price index (CPI), which monitors the average prices of goods and services across categories like food, vehicles, apparel, and healthcare services.

Due to inflation, your hard-earned money will buy you fewer groceries, gas, medical services, or anything else than previously. While inflation affects most industries, how much it affects them varies. After all, not all goods and services increase at the same percentage. Inflation may impact multiple sectors, impacting your wallet simultaneously.

Food industry—When inflation hits, Food prices go up due to the increased costs of agriculture, labor shortages, and infrastructure issues, like a shortage of truck drivers. It may be no surprise that your grocery bill is more expensive than it used to be.

Air transportation—An increase in oil prices often leads to a rise in airplane fuel prices, which eats into the earnings of many airlines. Also, since travel is usually a nonessential expense, many people tend to spend less on airfare or avoid airfare costs altogether, further hurting the bottom line of the air transportation industry during inflationary periods.

Understanding the guidelines surrounding Required Minimum Distributions (RMDs) becomes crucial as we navigate the complexities of personal finance and retirement planning.

For those who have inherited retirement accounts or are approaching their RMD age, the ten-year rule is a pivotal part of this financial landscape. Here are the ten things you need to know about it.

1. The origin of the ten-year rule—The rule took effect in 2020 with the passing of the Setting Every Community Up for Retirement Enhancement (SECURE) Act. This legislation revamped many rules regarding retirement accounts, including RMDs.

2. Who the rule applies to—The ten-year rule primarily applies to non-spouse beneficiaries of Individual Retirement Accounts (IRAs) and defined contribution plans such as 401(k)s, 403(b)s, and other employer-sponsored retirement plans.

3. The purpose of the rule—The rule mandates that these beneficiaries empty the account by the end of the 10th year following the original account owner's death. This rule ensures that tax-deferred growth benefits don't extend indefinitely and that the government can reclaim some of its deferred tax money.

4. No yearly RMDs—Under the ten-year rule, there's no requirement to withdraw a certain amount each year. As long as the entire account balance liquidates by the end of the tenth year after the account owner's death, the beneficiary is compliant with the rule.

Given the dynamic nature of global markets and the ever-changing economic landscape, addressing portfolio management and market volatility is essential. During these periods, wealth preservation paths can prove complex. Managing and addressing portfolio risk, taxes, estate and retirement planning, and monitoring progress toward goals is essential.

Therefore, a comprehensive understanding of fundamental strategies for navigating market volatility often includes the following:

1. Diversification. The old investment adage, “Don't put all your eggs in one basket,” is particularly relevant today as it was decades ago. Diversifying your investment portfolio mitigates the risk by spreading the investments across various types of investments, sectors, or geographies.

For example, consider including bonds, ETFs, real estate, or alternative investments in your portfolio instead of investing only in equities.

2. Staying informed. Additionally, staying informed about market trends and economic indicators is key to wealth management. Understanding how geopolitical events, policy changes, or other developments affect market conditions provides insight into making informed investment decisions. Staying informed enables one to anticipate market shifts and position one's portfolio accordingly.

There is often debate on the role that luck plays in accumulating wealth. Some argue that wealth accumulation is a matter of hard work, commitment, and good decisions, while others believe luck is a factor.

However, there are actions that those with wealth initiate in their wealth accumulation approach.

1. Financial Literacy—Financial literacy is the cornerstone of wealth accumulation. It equips one with understanding how money works, tools to make informed financial decisions, and strategies to optimize wealth. A basic knowledge of economic concepts, investing principles, taxes, budgeting, risk management, and retirement planning is vital. Wealth accumulation isn't about relying on luck but developing the skills and aptitude to grow financially.

2. Ability to adapt to changing circumstances—Wealth accumulation isn't just about sticking to one strategy. Instead, it requires constant adaptation based on changing scenarios. A sudden market downturn or an industry's spiraling growth shouldn't catch you off guard.

Being prepared, flexible, and willing to change your investment approach is essential. This often determines whether assets will continue accumulating or lose value.

Social Security (SS) retirement benefits are a vital component of retirement income for many people. It consists of multiple benefits, including disability, survivor, and retirement benefits, and is an indispensable part of many individuals' financial plans.

Knowing how to boost SS benefits can be advantageous over one’s lifetime.

Understanding benefit start options

Deciding when to start receiving Social Security benefits is essential. There are three options: early retirement, full retirement age, or delaying benefits. Each offers a different perspective depending on individual circumstances, making it vital to understand each option thoroughly.

Early retirement

Opting for early retirement benefits involves starting to collect benefits at age 62. Doing so provides immediate income but results in a managed monthly benefit amount. This reduction could range from a modest 25% to a drastic 30% cut, depending on your full retirement age defined by the Social Security Administration based on your birth year.

While this option may be appropriate for those who need immediate income or have a shorter life expectancy, it might not be the most optimal strategy for those who live long lives. To make an appropriate decision, assess your financial needs, health status, and family longevity history.

A 529 plan offers tax advantages in addition to saving for future education costs. These plans help parents save for their children's college expenses and may be appropriate in estate planning.

529s as a wealth transfer strategy have become more accepted due to their characteristics, tax advantages, and potential for flexibility in distribution. Here are some of the key estate planning benefits of 529 plans:

Account owner control

What sets the 529 plan apart is that the account owner retains control over the assets. Unlike other gifting techniques, where the giver loses control over the gifted assets, with a 529 plan, the owner can change beneficiaries or reclaim the funds (with penalties and income taxes applied). This control can be instrumental, especially when unforeseen circumstances arise.

Reduces the size of taxable estate

One of the primary benefits of a 529 plan is its potential to reduce the size of one's taxable estate while retaining control over the funds. Contributions you make to a 529 plan are considered gifts for tax purposes.

In 2025, individuals can contribute up to $19,000 per beneficiary without triggering a gift tax. Under a special election, individuals can 'super-fund' their contributions upfront to $95,000 per beneficiary (or $190,000 for married couples), constituting five years' worth of gifts and removing them from one's lifetime taxable estate.

Retirement is a chapter of life that, for some, may signal leisure, freedom, and working by choice, not necessity. However, this phase usually requires retirement income from retirement savings withdrawals. Different retirement account types have different taxation when withdrawing monies: taxable, tax-deferred, and tax-free.

This article discusses investment strategies and taxation, which affect the growth and value of retirement savings accounts.

Taxable accounts

Taxable accounts have fewer restrictions on contributions and withdrawals, but the returns are subject to taxation. Investing in taxable accounts is done with after-tax money and includes:

· Brokerage accounts

· Individual stocks

· Real estate and other hard assets (metals)

· Mutual funds, exchange-traded funds (ETFs), index funds

Tax-deferred accounts

Traditional Individual Retirement Accounts (IRAs) and 401(k)s are the most common retirement savings accounts and offer tax-deductible contributions. A tax deduction implies that the amount contributed to these accounts is deducted from taxable income for that year, thereby reducing one's tax bill. If you fall into a high tax bracket, the tax savings from making these deductions can be substantial.

Many seek financial professionals to help them with investment guidance and financial management. This management involves reviewing investments, savings, insurance, and other elements as they work toward their goals. However, not all financial professionals are created equal. Here's what to look for before hiring one.

Skills and training—Competence is key when selecting a professional. They must demonstrate knowledge about the financial markets, investment strategies, tax laws, insurance, and other relevant areas. They should also have the necessary qualifications, credentials, and certifications. This training and education indicate they have undergone thorough training and passed the examinations needed to offer guidance in these areas.

Experience—Secondly, it's essential to consider the financial professional’s experience. Questions to ask while interviewing them include:

· How long have you been providing financial guidance?

· What types of clients have you served?

· Do you specialize in certain areas?

Understanding their experience level and areas of knowledge can help determine if they're the appropriate professional for your unique needs.

Planning for retirement often raises one crucial question: How much should one withdraw each year during retirement? Managing withdrawals may significantly impact the longevity of your retirement funds. Managing withdrawals aims to strike an equal balance between enjoying your retirement and ensuring your savings last throughout life.

Different factors influence this withdrawal calculation, including the size of your retirement portfolio, other income sources, lifestyle demand, life expectancy, and market conditions. Consequently, it would be wrong to assume that a 'one-size-fits-all' policy works for everyone.

This article aims to explain what to consider when planning retirement savings withdrawals.

The 4% Rule

A classic rule often followed is the "4% Rule," which suggests withdrawing 4% of one's retirement savings in the first year of retirement. In subsequent years, the withdrawal should adjust according to inflation. For instance, if you have a retirement corpus of $1 million, you withdraw $40,000 in the first year. This strategy assumes that your portfolio comprises a balanced mix of stocks, bonds, and other retirement savings and insurance vehicles, anticipating they last for at least 30 years.

A critical aspect of retirement planning is understanding the rules and requirements surrounding Required Minimum Distributions (RMDs) from retirement savings accounts. An RMD is a mandatory minimum amount that retirement account owners must withdraw from their accounts annually.

This article overviews RMD requirements and how to circumvent IRS penalties by not exercising them.

What accounts have RMDs?

RMDs are the minimum amount the IRS requires to be withdrawn from a tax-deferred retirement plan. The amount withdrawn is taxed as ordinary income at the owner's tax rate. RMDs apply to:

· Traditional IRAs

· SEP IRAs

· SIMPLE IRAs

· Rollover IRAs

· 401(k) and 403(b) plans

· Most small business accounts

It's essential to note that Roth IRAs, Roth 401(k)s, and Roth 403(b)s do not have RMDs.

Changing RMD ages

In the past, RMDs commenced at 70 1/2 unless one solely owned a 5% or more interest in the business sponsoring the retirement plan; then, it started at a later retirement date. The rule changed following the enactment of the Secure Act in 2019, which pushed the RMD beginning age from 70½ to 72.

Planning for retirement can be overwhelming, but it becomes much easier if you start early. If you plan to retire next year, there are specific things you must consider and implement now as you prepare for an independent retirement. Here are seven tips to help you prepare to retire.

#1- Pay off debt.

Before you retire, it's essential to eliminate as much debt as possible. Whether credit card debt, mortgage loans, or student debt, any outstanding financial obligations may affect your retirement savings. Eliminating these debts can help you manage your monthly expenses and have more cash for your golden years.

#2- Estimate your retirement income needs.

The first step in retirement planning is estimating how much money you need to retire. A common rule of thumb suggests that you may need about 75—80% of your pre-retirement income to maintain a similar lifestyle throughout retirement.

The amount varies depending on health, lifestyle, debts, travel plans, etc. A financial or insurance professional can help determine if this percentage is appropriate for you.

#3- Fully fund an emergency fund.

An emergency fund is crucial to safeguard against unexpected financial emergencies that could derail your retirement plan. Your emergency fund should be large enough to cover six to twelve months of living expenses.

Financial planning, including tax planning, is vital to personal financial health and wealth accumulation. Financial professionals often specialize in tax planning, determining one's wealth growth trajectory and overall tax liability. They frequently collaborate with tax professionals to provide proactive tax-planning services for their clients.

This focus on tax planning and other specialties can help clients work toward financial independence, knowing that their financial affairs—and taxes—are in capable hands. Here are some reasons why discussing taxes and tax planning is essential.

Tax laws

Tax laws evolve continually, and staying updated with these changes can be overwhelming for individuals unfamiliar with the intricacies of tax legislation. Financial professionals specializing in tax planning stay abreast of new tax laws, rulings, and court decisions about taxes. They interpret how these changes may affect their clients' financial circumstances regarding investments and strategies and identify the appropriate investments to help manage tax liabilities.

Personal and business tax planning

Financial professionals specializing in tax planning understand all tax-related issues. They can assist clients in income tax planning, estate tax planning, retirement tax planning, business tax planning, and other related areas. Financial advisors who are well-versed in tax planning can also structure investments, financial activities, and new business opportunities to help manage tax liability.

Numerous factors can influence retirement savings and the longevity of one’s retirement nest egg. Among them are longevity, liquidity, inflation, mortality (the stock) market, and taxes (LLIMMT). Each plays a crucial role in shaping an individual's retirement outlook.

This article covers LLIMMT and a comprehensive understanding of how each may impact planning for retirement.

Longevity— Longevity pertains to life expectancy or the length of time that a retiree expects to live beyond the average retirement age. With advancements in healthcare, the average lifespan has been gradually increasing, which means that retirees need more money to cover their expenses for a more extended period.

If retirees underestimate their longevity, they might exhaust their retirement savings sooner than anticipated, leading to financial hardship in their golden years.

Liquidity—Another critical factor is liquidity, which refers to the ease with which an asset can convert to cash without significantly affecting its value. Retirees must have enough liquid assets to cover unexpected costs like medical expenses or home repairs without selling off long-term investments at a loss. The risk of not having enough liquidity may result in retirees depleting retirement savings more quickly than expected.

The estate tax, also called the death tax, is a tax on transferring assets from a deceased person to their heirs or beneficiaries. One significant component of our current estate tax law is the sunset provision, which implies that specific policies within the law have a set expiration date after which they cease to exist. The impending estate tax sunset on December 31st. 2025, may significantly impact high-net-worth individuals transferring their estate to heirs and those who inherit these assets.

In this article, we review the current estate tax exemption, the step-up basis rule, and how proactive estate planning and the implementation of strategies may help lighten the tax burden on heirs.

Today’s Federal estate tax exemption

Currently, the estate tax exemption limit in the U.S. is $13.61 million per benefactor, implying that any estate valued less than this amount will most likely not be subjected to federal estate tax. Nonetheless, these parameters are subject to change following the sunset provision, which will expire at the end of 2025.

As the sunset date approaches, the federal estate tax exemption could be decreased by nearly half. This reduction would mean more estates fall into the taxable category, substantially impacting heirs. Investors who initially thought their estate or heirs would not be liable to pay the estate tax due to the value under the exemption threshold may need to reevaluate their estate plan due to the lower limit.

As the end of the year approaches, it's time to start thinking about what comes next for your finances in the New Year. Reviewing your financial situation can help you evaluate your financial health and set the stage for working toward goals in the coming year. Here is an eight step end-of-year financial checklist to work through as you pursue being on top of your financial game in the New Year.

1. Review your budget.

The first step in your end-of-year review should be assessing your current budget. Did you stick to your planned budget throughout the year? If not, identify areas where you overspent or underspent, then make necessary adjustments for the coming year. For example, did you underspend on your retirement savings contributions? If so, adjust your contribution amount now.

It's essential to analyze your current debt situation during your budget review. Understanding how much you owe and what interest rates you're paying can help you quickly prioritize which high-interest loans to pay off first and then next as you decrease your debts.

2. Update your goals.

Your goals need periodic reviews and updates. These could include paying off a particular debt, saving more for retirement, or building an emergency fund. Reflect on your progress towards these goals and revise them as necessary.

One of the major concerns people have when planning their retirement is how to protect their retirement savings from unforeseen medical expenses. Healthcare costs have steadily risen, but adequate planning can help maintain these costs in retirement. This article outlines four ways to help protect one's retirement savings from unexpected healthcare costs in retirement.

1. Maintain regular health checkups and screenings.

Additionally, monitor your health and go for regular checkups. Regular checkups can help detect any health issue early, reducing potential medical costs. A healthier lifestyle can also decrease your likelihood of developing chronic illnesses, which can be costly to manage in the long run.

2. Establish a healthcare emergency fund.

Another approach to covering unexpected healthcare costs is opening and contributing to an emergency fund savings account. This strategy creates a buffer to cover unexpected medical costs without dipping into retirement savings. Continue to save so that you have enough to cover the policy's yearly out-of-pocket deductible amount.

3. Purchase a comprehensive health insurance plan.

When giving gifts to our children or grandchildren, or others close to our heart, we often default to the latest toys or gadgets. However, the value of these items tends to diminish over time in terms of both interest to the child and monetary value.

A different approach to gifting can focus on investing in a child's future. This perspective offers more than instant gratification; it provides lasting benefits that may help provide an independent future for your loved ones.

Savings account

A savings account is a traditional way to invest in a child's future. Opening an account in their name provides them with a financial safety net and can familiarize them with saving from an early age. It encourages them to think about finances and manage money responsibly, setting a foundation they can build upon into adulthood.

529 Plan

Another worthwhile investment is education. A 529 or education savings plan is an investment account that offers tax-free withdrawals on the accumulation when used to pay for qualified education expenses. 529 plans can pay for college, K-12 tuition, apprenticeship programs, and education loan repayments.

Asset protection is a crucial aspect of entrepreneurship that women entrepreneurs must be aware of, regardless of the industry in which they operate. Women entrepreneurs must create a barrier to their personal and business assets. With a comprehensive approach, they can protect their wealth and business continuity.

Crafting an asset protection plan involves working with financial, insurance, and legal professionals to implement strategies to help protect personal and business assets from potential claims and lawsuits.

This article emphasizes asset protection strategies women entrepreneurs must consider to help protect their personal and business assets.

Tip #1- Keep business and personal assets separate.

A pivotal asset protection strategy for women entrepreneurs is separating business and personal assets. Creating a distinction between personal and business assets is vital and involves working with legal professionals to establish a legal entity for your business—a corporation, LLC, or partnership. This separation limits personal liability, safeguarding personal assets from business debts or lawsuits.

A legal professional can help you determine which type of business entity is suitable for your situation.

The fourth quarter of the year is crucial as it represents an opportunity to assess the past year's portfolio performance, gauge current investment strategies, and lay the groundwork for the coming year. These end-of-year reviews are more than just reviewing the highs and lows of market performance. Instead, they provide thoughtful insights that can impact the financial strategies used as one works toward their goals in the forthcoming year.

Here are the five critical areas that a fourth-quarter review will assess.

Portfolio performance

Fourth-quarter reviews enable investors to measure how well their portfolio has performed against projected outcomes and predefined goals. This assessment helps investors and financial professionals evaluate the effectiveness of their investment strategies.

The review analyzes each security, asset class, and return. This information helps investors understand the patterns and trends that may impact future returns and their goals.

Tax planning

Fourth-quarter reviews are the perfect time for tax planning. With detailed information, investors can make informed decisions about when to hold or sell assets, using capital gains and losses most effectively. This information forms the groundwork for tax planning, allowing investors to work toward decreasing their tax liabilities before year-end.

As the U.S. population ages and life expectancies continue to increase, Social Security policymakers and experts are considering various adjustments and updates to the program to help lengthen its long-term sustainability. Three significant discussions are underway that may impact Social Security retirement benefits starting in 2025.

Using a different index to determine COLA

Another proposed change concerns calculating cost-of-living adjustments (COLA) for Social Security retirement benefits. Some policymakers have suggested using a different index, such as the Chained Consumer Price Index for All Urban Consumers (C-CPI-U), to accurately reflect changes in the cost of living. This adjustment could result in a lower annual increase in benefits but may help improve the accuracy of future COLAs.

The COLA may be 2.6% in 2025, down from 3.2% in 2024. A COLA of 2.9% would increase the average Social Security retirement benefit by $54 a month, starting in January 2025

Revising the eligible and normal retirement ages

One proposed change garnering significant attention is adjusting the full retirement age. Some proposals recommend a further increase to age 68 or even 70. Proponents of this change argue that it would better align benefits with longer life expectancies and reduce the financial strain on the Social Security system.

Many individuals' wealth comes with the ability to create thoughtful and impactful change for others. However, making the foundation for impactful giving requires strategic planning and understanding how to transform their assets into lasting legacies. With a comprehensive approach, giving-minded individuals can skillfully transfer their assets into an enduring legacy that impacts communities and causes they care about.

This outlines how individuals can use an eight-step approach to engage in thoughtful and impactful giving that transforms assets into positive change.

Begin with a Strategic Giving Plan

The path from assets to impactful legacies must always start with a strategic giving plan. Strategic planning aligns your vision, values, and financial capabilities with your philanthropic objectives. It requires you to identify the causes that resonate with your core values, set clear goals around those causes, understand the resources you can dedicate to these goals, and establish metrics to assess the impact of your contributions.

Implement Donor-Advised Funds

Donor-advised funds (DAFs) have become a widely used giving strategy for their simplicity, flexibility, and tax advantages. DAFs are philanthropic vehicles administered by public charities that allow donors to contribute, receive an immediate tax deduction, and recommend grants from the fund over time.

Financial professionals often discuss insurance with their clients because it is an essential component of comprehensive planning. While many people associate financial professionals solely with investments and planning for retirement, the reality is that insurance plays a crucial role in protecting and preserving wealth.

This article discusses the five reasons financial professionals discuss insurance with their clients during meetings and suggests specific insurance products.

Risk mitigation

One of the primary reasons financial professionals discuss insurance with their clients is to mitigate risk. Insurance products such as life insurance, disability insurance, and long-term care insurance can help safeguard against unexpected events that could derail a client's financial goals. For example, a life insurance policy can help provide financial confidence for a client's loved ones in the event of an untimely death, ensuring they are not burdened with outstanding debts or loss of income.

Protection of income and assets

Insurance can act as a safety net that protects assets and income. Disability insurance, for instance, can provide income replacement if a client cannot work due to illness or injury. This insurance safeguards that their financial plan remains on track, even in unforeseen circumstances.

Are you tired of living paycheck to paycheck, feeling like you never have enough money to cover your expenses and save for the future? If so, you're not alone. Many people struggle with transitioning from being a spender to a saver. However, with the right mindset and some strategic changes, you can transform your financial habits and start building a more secure future for yourself. Here are the steps to take toward this transformation.

Assess Your Current Situation

The first step in transforming from a spender to a saver is to examine your current financial situation carefully. This examination includes understanding your income, expenses, and debt by outlining your monthly payments, including bills, groceries, entertainment, and other discretionary spending. This assessment will give you a clear picture of where your money is going each month.

Change Your Mindset

Transforming your spending habits starts with a shift in mindset. Instead of focusing on instant gratification, start thinking about your long-term financial goals. Consider what you want your financial future to look like and how becoming a saver will help you work toward these goals. This shift in mindset can be empowering and can help motivate you to make the necessary changes.

Understanding what long-term care (LTC) entails is vital in formulating an appropriate care plan. LTC refers to services designed to help care for an individual's health or personal care needs for a short or extended period. These services assist people in living independently and safely when they can no longer perform everyday activities independently.

But for single individuals, the need for LTC services might be more imminent due to a lack of partner or immediate family support. Planning for long-term care (LTC) is essential to financial management and personal well-being.

Addressing this crucial need has become more pertinent with the ever-increasing healthcare costs and a growing aging population. This articles addresses the six steps singles must comprehensively work through as they plan for LTC.

Step #1- Determine how much you can pay for care.

Start by calculating how much you can afford to pay out-of-pocket for long-term care costs in today’s dollars. Consider factors like your income, savings, investments, and other resources. Working with a financial or LTC insurance specialist can help determine the future cost of care, factoring in things such as average yearly LTC insurance rate increases, inflation, etc. They will use software to determine a scenario cost to help guide the LTC roadmap.

The landscape of retirement savings in the United States is experiencing crucial changes following newly enacted legislative changes for 2024. These updates and reforms seek to enhance the flexibility of retirement savings accounts and transform how Americans save and prepare for retirement. Here are some of the more significant changes this year.

Contribution increase

One key 2024 retirement savings legislative update pertains to contributions into retirement plans such as the 401(k). The legislation introduces a significant increment in contribution limits, allowing Americans to save more for retirement. This change enables individuals to accumulate a more substantial retirement savings nest egg and allows them to manage their taxable income, given the pre-tax nature of these contributions.

The annual contribution limit for 401(k)s increased by $500 to $23,000 for individuals under 50 and $30,500 for those 50 and older. The annual contribution limit for SIMPLE IRAs also increased to $16,000, with an additional $3,500 catch-up contribution for workers 50 and older.

Required Minimum Distributions (RMDs)

Simultaneously, the legislative amendments also seek to extend the age limit for retirement account distributions. Previously, the age for mandatory minimum distributions (RMDs) from retirement savings accounts began at 70.5 years. However, under the new guidelines, distributions are now mandatory at age 72. This delay affords retirees additional time to grow their assets and manage their retirement income more effectively.

Retirement is a time to enjoy the fruits of your labor. But even after you have stopped working, it's important to make sure your money continues to work for you. Investing wisely can help you maintain your lifestyle, protect your nest egg, and even leave a legacy for your loved ones. Here’s a straightforward five-step guide to help you navigate investing after retirement.

Step 1: Revisit Your Financial Plan

Financial planning is not just for building wealth—it’s equally important during the years you’re spending it. The economic landscape, marked by events like the pandemic and market fluctuations, can impact your retirement portfolio. It is wise to sit down with your financial advisor to review your investment portfolio. Make sure your investment strategy aligns with your retirement goals and consider whether new investments could affect your retirement income.

Step 2: Understand and Manage Risk

Investing during retirement comes with different challenges than during your working years. While buying in a down market might seem appealing, retirees need to be cautious. Since you may need to access your funds sooner rather than later, your investments should be aligned with lower risk levels. This approach helps avoid potential losses from needing to sell investments during a market dip.

When inflation increases, people often feel the sting of paying more for groceries, gas, and almost everything else. Many may feel inflation is terrible because their paychecks are shrinking, and they don't like paying more for the same items. But inflation also has positive benefits that may occur over time, such as:

Wages increase- Employers often increase wages for their current employees and new hires to attract and retain workers during inflation. For a period, inflation may increase job openings at employers with lower wages until they increase their wages too. Higher wages bring more money into the economy as workers have more money to spend.

Property values increase- Pre-existing homes, automobiles, and some investment strategies increase in value during periods of inflation.

Fixed-rate debtors' benefit- The payments and interest rates of fixed-rate mortgages and other debts remain the same as the property's value increases as inflation rises.

The risk of deflation minimizes- Deflation is when prices fall. During periods of deflation, people stop buying because they believe the prices will fall even more. Deflation often leads to fewer sales, layoffs, and wage decreases which is the opposite of what occurs during inflation.

When working teens invest early in a Roth IRA, they can contribute to a strategy that could accumulate millions later in retirement. Working teens can contribute to a Roth IRA when a parent or grandparent opens the account. A Roth IRA can be opened at any age if a child has income. For example, if your five-year-old child was a model for a local store and received a paycheck in their name, the amount received can be contributed to a Roth IRA.

Working teens receiving W-2 income with a checking account in their name can have automatic contributions deducted and deposited into their Roth IRA. Or, if the teen doesn’t receive a W-2 for money from mowing lawns, babysitting, or other work, the income must be reported to the IRS through income tax filing to qualify for Roth IRA contributions. However, due to the teen’s low income, they likely will not have to pay social security, local and federal taxes.

The teen doesn’t need to make contributions themselves. Parents and grandparents can contribute on the teen’s behalf if it doesn’t exceed the teen’s income for the year and is below the IRS limits. Here are other things to know about Roth IRAs for working teens:

· Roth IRAs fund with after-tax contributions, so taxes are paid upfront.

Regardless of the business's size, small business owners have 401(k) retirement savings plan options that may be suitable for their situation. Business owners must plan for retirement by utilizing retirement savings vehicles that may provide them with common IRS tax savings incentives when funding specific 401(k) options.

A business owner can open several retirement savings plan types if they're the only employee or have anywhere from two to 100 employees. As you work with your financial and tax professionals to determine which is appropriate for your small business, we outline what to know about each:

Solo 401(k)- A solo 401(k) is a retirement savings plan for self-employed business owners who want to maximize their retirement contributions. It's also called an individual 401(k) or i401(k). Here are other things specific to this plan:

· Only the business owner and their spouse can participate in this plan.

· Contributions are made in two ways: employee elective-deferral contributions and profit-sharing contributions.

· The plan may offer loans, depending on the plan documents.

· There is no nondiscrimination testing, which would determine who may or may not participate.

With the cost of college expensive for many, receiving a tax break from the IRS for college-related expenses may be appealing. 529 Plans and Coverdell Education Savings Accounts (ESAs) offer tax-advantaged withdrawals when used for qualified expenses.

But for those seeking an additional tax deduction on their tax return, there are specific tax credits that students and their parents may qualify for. However, many tax credits come with rules, so you must work with your tax and financial professional to determine which applies to your situation. Here are the tax credits you may qualify for in 2023 or the future, pending no changes in IRS education expenses deduction rules:

1. The American Opportunity Tax Credit (AOTC)- This tax credit is for single tax filers with an income less than $80,000 (phase out is $80-$90,000) and for married couples filing jointly with a combined income of less than $160,000 (phase out is $160-$180,000). There are other specifics to this tax credit:

· Students must attend college at least half-time.

· The same student can claim the tax credit for up to four years.

· The student must be an undergraduate and not have completed all four college years.

Investing is a complex process that requires careful thought, strategy, and an understanding of various factors that could influence your portfolio's performance. Many investors understand the significance of market trends, economic cycles, and changing consumer behavior. However, politics is another The 401(k) plan is an excellent way for working Americans to save for retirement. For many, hitting the maximum contribution limit is a goal that many work toward to reap the benefits of saving tax-deferred. But what happens when you've maxed out your 401(k) contributions and want to continue saving for an independent and comfortable retirement?

Maxing out your 401(k) is a significant achievement toward securing an independent financial future. However, several other investment strategies offer tax advantages and asset accumulation potential so you can continue investing toward your retirement savings goal. Here are some strategies to consider investing in next.

Individual Retirement Account (IRA)

One of the most common options when you've maxed out your 401(k) is contributing to an Individual Retirement Account (IRA). An IRA offers similar tax benefits to 401(k), where your contributions grow tax-deferred.

Investing is a complex process that requires careful thought, strategy, and an understanding of various factors that could influence your portfolio's performance. Many investors understand the significance of market trends, economic cycles, and changing consumer behavior. However, politics is another crucial aspect that often needs to get the attention it merits. The link between politics and your investments is more profound than one might initially expect.

To truly grasp how politics impacts investment performance, it's necessary to consider multiple dimensions. Elections, policy changes, geopolitical events, and even political rhetoric can influence economic activities, indirectly affecting the financial markets. Thus, as an investor, understanding the correlation between these domains becomes critical in making informed strategic decisions.

One of the most immediate ways politics can affect investment performance is through policy formulation and implementation. Governments worldwide use fiscal and monetary policies to manage their economies. These policies can change significantly depending on whether the ruling party is pro-business or pro-labor or leans towards fiscal conservatism or liberalism. For instance, a government may implement favorable tax cuts for businesses, boosting stock markets and positively impacting shareholders.

Many people encounter many obstacles in pursuing financial independence and wealth accumulation. These obstacles may seem insignificant at first glance, but they can drastically impact one's capability to acquire wealth. Understanding what may hinder one from accumulating wealth is crucial. This article explores the obstacles that can deter you away from financial confidence and your wealth accumulation journey.

Living beyond your means

Living beyond your means is one of the primary obstacles to wealth accumulation. The pattern of overspending, whether through extravagant lifestyle choices, impulsive purchases, or excessive credit card use, can ultimately lead to excessive debt. By spending more than you earn, you're denying yourself the chance to save and invest your money, thus obstructing your wealth-building journey.

A lack of financial education

Secondly, a lack of financial education can seriously impede one's ability to accumulate wealth. Many must be trained in personal finance management, investments, tax, and retirement planning. Understanding these critical areas makes making informed financial decisions and working toward increasing one's wealth increasingly easier.

Vacation should be a time of relaxation and fun. But sometimes, a vacation can follow us home in the form of debt. Preparing your finances for going on vacation and paying the expenses associated with it is essential to avoid financial stress afterward. Here are some ways to quickly build a vacation fund and save money along the way.

Establish a vacation budget- The first step is establishing a vacation budget to help you understand how much you can afford to spend. Start by assessing your current financial situation. How much extra income do you have right now that could be redirected towards your vacation? Consider any upcoming bills or other financial obligations. Once you have a rough idea of the disposable income you can use, you can begin allocating funds for travel, lodging, food, and activities.

Cut down on unnecessary expenses- Cutting back on non-essential expenses is a great way to accumulate additional monies quickly for your vacation. Consider eating out less, canceling unused subscriptions, or postponing discretionary purchases while you build your finances for your vacation. Every penny saved is a penny you can spend on your vacation.

Direct indexing, also known as separate accounts or tailored portfolio management, is an investment strategy providing advanced portfolio customization and tax efficiency.

Direct indexing does not involve purchasing shares in mutual funds or exchange-traded funds (ETFs). Instead, it involves buying individual securities comprising a certain index such as the S&P 500, NASDAQ, or any other market index. Here are a few reasons an investor may use a direct indexing strategy.

Flexibility

The draw of direct indexing lies in its flexibility. An investor can adjust the portfolio holding to include or exclude certain stocks based on personal preferences, ethical concerns, or tax considerations. In contrast, traditional methods like ETFs and mutual funds offer limited control since they are pre-packaged portfolios managed by funds.

Tax efficiency

Another key advantage offered by direct indexing is tax efficiency. Investors have more control over selling and buying individual securities in their portfolio, potentially leading to comprehensive tax loss harvesting strategies. Tax loss harvesting is when specific shares experience a loss they are sold to offset gains and manage the investor’s overall tax liability.

Legacy planning involves leaving more than financial assets for future generations. It's about preserving and continuing one's values, life experiences, and personal philosophies. It is a holistic approach to managing wealth, typically involving multiple generations developing and implementing the plan.

Legacy planning covers traditional estate planning activities such as trusts and asset distribution but includes broader considerations, such as how a person wants to be remembered. Here are some of the critical actions involved in legacy planning.

Understanding assets and liabilities

The first step in legacy planning involves clearly understanding your financial assets and liabilities. This first step entails analyzing your investments, properties, insurance policies, retirement accounts, businesses, and other financial aspects. Comprehensive planning is necessary to allocate resources for identifying immediate needs, preparing for future needs such as retirement, and setting aside wealth for inheritance and legacy beneficiaries.

Drafting estate planning documents

Next, drafting important estate planning documents is crucial, including an outline of the distribution of assets, the naming of guardians for minor children, if applicable, and trusts that offer more sophisticated distribution options and tax benefits. In case of incapacitation, a healthcare proxy and financial power of attorney are also vital to name someone to make medical and financial decisions on your behalf.

Long-term care (LTC) is an essential component of healthcare that aids individuals who are physically or mentally incapable of independent living. While it may seem daunting, LTC offers numerous benefits that can significantly enhance the quality of life and overall well-being of those in need.

Families often find themselves considering long-term care options for their loved ones due to a variety of reasons. One significant cause is the inevitable progression of age, which can bring about several health issues and an overall decline in the ability to perform daily tasks independently. Here are four reasons why families consider LTC for their loved ones.

Personalized Care

One of the most significant benefits of LTC is the provision of personalized care tailored to each individual's needs. LTC facilities employ a team of professional healthcare providers who work round the clock to provide nursing care, rehabilitation, medication management, and personal care services like bathing, dressing, and meal preparation.

These professionals are equipped to handle emergencies promptly, administer medications accurately, and monitor health status regularly. Having trained healthcare professionals helps ensure that care recipients receive the adequate and necessary care they require.

Over the next few decades, an estimated $30 trillion in assets will pass to heirs. This wealth transfer provides opportunities and challenges for those who will inherit this wealth. Financial independence is paramount to understanding the implications of wealth transfer and adequately preparing for it. Here, we explore five key actions heirs must focus on as they prepare to inherit.

Open communication

Engaging in open and honest conversations about wealth transfer with the generation passing on the wealth is essential. Although discussing inheritance matters can be uncomfortable, it ensures all parties are on the same page and enables the younger generation to appreciate the responsibilities involved. Understanding what to expect can significantly manage anxieties and misconceptions, aiding smoother transitions.

Financial literacy

One critical area of emphasis is financial literacy. As future beneficiaries, understanding the obligations of inheriting vast sums of money or assets and understanding the complexities of estate planning, tax laws, investment strategies, and wealth management is vital. Enhancing one’s financial literacy helps prepare oneself to manage inherited wealth with tools to grow and preserve inherited assets.

As we look into 2024, predicting the trajectory of mortgage interest rates has never been more critical for prospective homebuyers. Understanding the factors influencing these rates and how they may play out can help potential homeowners make informed decisions.

Several variables weigh heavily on the direction of mortgage rates, including the state of the economy, monetary policy, inflation, and housing market conditions. Unfortunately, global economics is a highly intricate system, and these factors can change unexpectedly due to unforeseen events.

However, as challenging as forecasting may be, it's crucial to the planning process for future homeowners. So, despite the unpredictability, let's delve into some insights that may continue to impact mortgage rates throughout the summer and the rest of the year.

The economy.

Current economic indicators suggest that mortgage rates might increase modestly by the end of 2024. The Federal Reserve, which indirectly impacts mortgage rates through short-term interest rate adjustments, has hinted at potential increases this year and in the coming years. A rise in short-term interest rates often puts upward pressure on long-term rates, including mortgages.

An escapade to an exotic getaway or a relaxing vacation provides an opportunity for rejuvenation. However, these leisure vacations often come with a price tag.

Establishing a vacation fund is crucial to enjoying your holiday without financial strain. Here are some practical tips to help you build your vacation fund effectively.

1. Establish a budget.

Before saving for the vacation, establish a budget to cover your daily living expenses, including groceries, bills, mortgages, and emergency funds. After covering these necessities, identify how much money you can devote to your vacation fund.

2. Set clear vacation fund goals.

Having a distinct vacation goal can inspire motivation. Identify where you want to travel and perform a ballpark calculation of the possible costs. These costs may include airfare, accommodations, food, entertainment, transportation, and incidental expenses. Once you have an estimate, you'll have a clear savings goal to start the vacation fund saving process.

3. Open a dedicated savings account.

Opening a separate savings account specifically for vacation funds can help curb the temptation to dip into these savings for other expenses. Isolating vacation funds can also help you monitor how close you are to managing your vacation-saving goal.

Charitable giving is an integral part of many individuals' financial strategy, not only as a means of helping others but also for the numerous benefits it offers to the giver. Here, we delve into ten benefits that further underscore the importance of charitable giving.

Tax deductions- One immediate benefit of charitable giving is the potential for considerable tax deductions. Assets or cash donated to non-profit organizations can generally be deducted from income tax, significantly reducing the overall tax obligation for many individuals.

Legacy building- Through substantial charitable donations, individuals have the unique opportunity to leave a lasting legacy. The ripple effect of their contributions can be sustained for generations, positively shaping society and creating an enduring memory of their philanthropy.

Personal satisfaction- Another significant benefit is the personal satisfaction derived from giving. Knowing the difference one person can make in the lives of others can bring immense joy and happiness.

Enhancing family bonds- Instilling the value of giving in younger generations helps them understand the importance of philanthropy. By involving family members in choosing charities or setting up family foundations, they become aware of societal issues, resulting in stronger family bonds over shared values.

Going through a divorce can be an emotionally charged and stressful event. Aside from the emotional toll, there's often the challenging task of disentangling finances and assets, a process that frequently leaves many divorcees in a precarious financial situation. However, it is essential to remember that this is not the end of the road—with a comprehensive strategy, you can rebuild your finances post-divorce. Here is a guide for divorcees seeking a fresh start for their finances.

1. Cut down on unnecessary spending.

Divorce usually means moving from a dual-income lifestyle to a single-income household. Therefore, some lifestyle adjustments may be necessary, at least temporarily. Review your recurring expenses and identify areas where you can cut back. These could include gym memberships, cable subscriptions, or dining out. Trimming these expenses creates room in your budget for savings, expenditures, and an emergency fund.

2. Create a budget.

The first step to rebuilding your financial health post-divorce is to assess your new financial reality. It's vital to thoroughly understand your income and expenses and establish a new budget based on these figures. A new budget allows you to adjust your spending accordingly, save money where you can, and prioritize your expenses. Including future financial goals—retirement savings, children's education, or a down payment on a home—in your budget is also essential.

The Internal Revenue Service (IRS) has proposed several significant changes to the tax code as part of its revenue proposals for 2025. If enacted, these changes could have profound implications for estate planning.

As estate law and financial professionals closely monitor these potential revisions, it's crucial for individuals interested in safeguarding their wealth for future generations to stay informed about these impending changes.

The IRS's 2025 revenue proposals target wealthy individuals, potentially impacting estate planning strategies. These proposals include raising the top income tax rate, taxing capital gains at death, eliminating the stepped-up basis for capital gains, limiting the annual gift exclusion, reducing the estate and gift tax exemption amount, and limiting the generation-skipping transfer (GST) tax exemption. Understanding these potential changes is vital to maintaining confidence in your estate planning strategy.

One of the crucial proposals is the plan to increase the top income tax rate from 37% to 39.6% for individuals earning more than $400,000 per year. This change alone could necessitate reviewing and possibly adjusting an individual's current estate planning strategy.

Understanding the many economic indicators that can impact your portfolio's performance is essential as an investor. Monitoring these indicators can help you better predict patterns, identify trends, and make informed investment decisions.

Here are some key economic indicators to watch this year.

Gross Domestic Product (GDP) — measures a country's total economic output over a specified period. It essentially represents an economy's size and growth rate, making it a fundamental indicator for investors to monitor. A growing GDP signifies a healthy economy, often leading to stronger corporate profits and higher stock prices.

Unemployment Rate—The unemployment rate is another critical indicator of an economy's health. High unemployment rates can spell trouble as they often correspond to lower consumer spending, which leads to lower corporate profits and, consequently, lower stock prices.

Inflation Rate— Inflation denotes the rate at which the overall level of prices for goods and services is rising. While moderate inflation is a sign of a growing economy, excessively high or rapidly increasing inflation can erode purchasing power and lead to economic instability. Watching this indicator helps investors adjust their strategies to shield themselves from inflation's effects.

Spring is a great time to declutter your homes and an excellent opportunity to clean up your financial life. Spring cleaning must involve reviewing, reorganizing, and eliminating unnecessary financial clutter to help make your money management more efficient.

Despite the significance of spring cleaning, financial cleaning is an area that tends to be overlooked during the spring cleaning spree. To start spring cleaning your finances, you must separate your financial life into critical sections, highlighted in the seven steps below.

Step #1— Analyze your budget. Compare your current expenditures with your income streams. Examine your bank statements, credit card invoices, and receipts to assess where your money is going. This review will help provide insight into any unnecessary bills, subscriptions, or recurring payments that you can eliminate to save more for future goals.

Step #2—Review savings and investing. Reviewing your savings and investments is another crucial part of financial spring cleaning. Check if you are saving enough and whether your investment strategies align with your risk tolerance, timeline, and goals. Diversify your investments to help manage risk and optimize returns. Consider consulting a financial professional to ensure adequate investment planning.

The financial ecosystem is ever-evolving, and the 2024 earnings season is no exception. Consistently, each earnings period generates a flurry of activity among investors across the globe as publicly traded companies release their quarterly or annual earnings reports.

For investors, this event indicates stock market performance and dictates subsequent strategic portfolio decisions.

We have observed significant transformations in the earnings season due to many factors. Technological advancements, other dynamics such as global economic conditions, and regulatory changes reshape earnings seasons in ways we haven't seen before. Here are the trends set to impact earnings season this year and beyond

Digitization

With the continued adoption of powerful financial technologies, companies now have sophisticated digitized tools and software at their disposal, making the process more efficient in monitoring potential losses and forecasting projected returns. These technologies offer real-time insights and data-driven analytics, enabling faster, more accurate reporting and projections.

Cybersecurity is another area of digitization that impacts earnings season. Companies must implement cybersecurity tools to prevent the loss of data and PII (Personal identifying information), which can lead to substantial fines, lawsuits, and loss of business.

In the world of finance and investing, it is no secret that the majority of investors are men. However, with an increasing number of women investing independently, it is essential to understand how women investors differ from their male counterparts. While both men and women share the same goal of growing wealth, their approaches, preferences, and concerns can vary significantly. Here are some key aspects to consider when examining the differences between men and women investors.

Risk tolerance

One of the most significant differences between men and women investors is their risk tolerance. Studies have shown that women are more risk-averse than men regarding investing, which could be due to various factors, such as cultural and societal norms. Also, women typically prefer low-risk investments compared to men. Women prioritize preserving their capital rather than chasing high returns, which is considered a more cautious investment approach.

Different reasons for investing

Additionally, women tend to invest for different reasons than men. While men may view investing as a means to increase their wealth and achieve financial confidence, women, on the other hand, often consider investing a way to secure their future and provide stability for their families. This difference in perspective can lead to varying investment strategies and choices. For example, women may focus more on creating a diverse portfolio and invest in socially responsible companies that align with their values.

In today's fast-paced world, it's all too easy to get caught up in the constant flow of news and information. As investors, it's crucial to stay informed about the market and economic trends. Equally vital is the ability to filter out the noise that isn’t relevant. Here are four essential tips to help investors ignore the ‘news noise’ and stay laser-focused on their goals.

Tip #1- Distinguish between noise and relevant information.

Firstly, it's important to distinguish between noise and relevant information. Noise refers to the constant buzz of sensational headlines and short-term market fluctuations that have little impact on long-term investment strategies. On the other hand, relevant information includes data, research, and analysis that provide insights into a company's or industry's fundamental health. As an investor, it's crucial to focus on relevant information and not get swayed by the noise.

Tip #2- Have a long-term perspective on investing.

It's essential for investors to have a long-term perspective on investing. The news media is designed to capture our attention with dramatic headlines and breaking news. However, this can lead to knee-jerk reactions and impulsive decisions. Investors must understand that investing is a long-term game, and short-term fluctuations should not cause concern. Investors can avoid rash decisions based on the day's news by keeping a long-term perspective.

Sustainable and ethical investing, or socially responsible investing (SRI), refers to investing in companies that prioritize environmental, social, and governance (ESG) factors in their operations. SRI goes beyond financial returns and considers the impact of a company's actions on people and the planet.

There has been a significant surge in global interest in SRI in recent years. According to a Global Sustainable Investment Alliance report, the global market for SRI has now exceeded a staggering $30 trillion, a clear indication of the growing demand for socially responsible investments. This trend is driven by the increasing awareness of environmental issues and the desire to align one's values with financial goals.

One of the main principles of SRI is managing and mitigating environmental harm. SRI includes investing in companies prioritizing renewable energy sources, managing carbon emissions, and promoting sustainable practices. Investing in these companies supports environmentally friendly practices and contributes to a greener economy.

SRI is not just about financial returns; it's about positively impacting individuals and communities. Companies that treat their employees fairly, ensure safe working conditions, and promote diversity and inclusion demonstrate this societal aspect. SRI also supports initiatives such as affordable housing, access to education, and healthcare, which are crucial for community development and social progress. Investing in these companies may contribute to a more equitable and inclusive society.

As Americans, we often pride ourselves on our independence, self-sufficiency, and living the American Dream. However, one thing that can hold us back from truly living our full potential is debt. In recent years, the average American household has accumulated significant debt, whether credit card debt, student loans, or mortgages. Shockingly, Americans rank third in debt compared to other countries. This alarming statistic underscores the urgent need to change our mindset and 'double down' on reducing personal debt.

How debt impacts our lives

The first step toward reducing debt is understanding its impact on our lives. Debt is more than just a financial burden; it can affect our mental and emotional well-being. The constant stress and worry that comes with owing money to creditors can lead to anxiety, depression, and even strained relationships. Moreover, debt can limit our opportunities for growth and financial independence. It can prevent us from taking risks, pursuing new career opportunities, or saving for future goals.

How reducing debt improves our situation.

So why should Americans 'double down' on reducing debt? For starters, eliminating debt increases our confidence. Reducing the amount of money owed frees our income for savings, investments, and emergencies. This extra financial cushion can give us confidence and a safety net. Here are other things reducing debt helps improve:

Often, there is a misconception that seeking financial help indicates incompetence or lack of financial self-sufficiency. However, seeking help is the exact opposite. High-performing individuals who excel in their respective fields adopt a more pragmatic approach- they understand the importance and benefits of employing a financial professional's services.

Seeking the help of a professional to assist in one's wealth planning leaves more time for them to focus on their primary specialty area, thus driving efficiency in managing results. Often, these individuals are focused on their careers, are business owners, or are high achievers with many goals. Here are ten ways a financial professional can assist high-performing individuals work toward improving their financial health.

1. Help plan for goals

A financial professional can develop a customized plan considering income, expenses, financial goals, risk tolerance, and investment strategies. This holistic plan considers all aspects of a high-performing individual's financial life and aligns them with their goals.

2. Prepare for retirement

It's vital to start planning early to maintain your desired lifestyle while working and after retirement. Financial professionals will work to understand your retirement lifestyle goals and devise a comprehensive plan based on your goals, risk aversion, and timeline.

As people approach their golden years, planning for retirement often becomes a focal point of their financial strategies. One aspect of planning that sometimes creates confusion or misinterpretation is the role of Social Security retirement benefits. Understanding how Social Security Retirement fits into retirement can be crucial as it may influence other planning decisions.

Social Security is a government-run program that provides financial assistance to eligible retirees through monthly payments. Contrary to popular belief, Social Security is not meant to be a primary source of retirement income but rather a safety net or supplement. Here are essential features of Social Security retirement to consider when planning for retirement.

Stable income in retirement

First and foremost, it is essential to understand that Social Security can provide income stability in retirement. While many have diverse portfolios, they may be vulnerable to market fluctuations and other economic uncertainties. Consequently, the steady flow of Social Security income can serve as a buffer, adding an extra layer of independence.

Benefits and cost of living adjustments

With the rise of automation, artificial intelligence (AI), and the gig economy, the workforce is transforming significantly. As we move towards the new decade, businesses and individuals must understand the future workforce trends and prepare accordingly.

One of the most significant changes we can expect in the future workforce is the increased use of automation and AI. These technologies have steadily gained momentum and are predicted to take over many routine and repetitive tasks. AI may impact both blue-collar jobs and white-collar professions such as accounting, data entry, and law. The thought of robots taking over human jobs may seem unsettling, but it's crucial to note that this shift may also create new job opportunities in fields such as data science, programming, and machine learning.

As automation takes over routine tasks, employees may be able to focus on complex and creative work that requires critical thinking and problem-solving skills. Jobs may become more specialized, and employees may need to upgrade their skills to stay relevant. The trend of lifelong learning may become even more critical as employees may need to keep up with changing technologies and roles.

Spring is known as the prime season for homebuyers. The warmer weather, blooming flowers, and longer days make it the perfect time to start the search for a new home. However, with the competitive market and limited inventory, buying a home in the spring can be challenging. To help prospective buyers navigate the home-buying season, here are ten tips to guide the home-buying process.

1. Start loan pre-approval early. Spring is a popular time for homebuyers, so competition can be fierce. It's essential to start preparing early by getting pre-approved for a mortgage, organizing your finances, and creating a list of must-haves for your new home.

2. Work with a professional Real Estate agent. A professional real estate agent is your best ally when navigating the spring housing market. They have the experience to help you find a suitable home and negotiate on your behalf.

3. Do your research. Before starting your home search, research the neighborhoods and areas you are interested in. Look into school districts, amenities, and crime rates to make an informed decision.

4. Be open-minded. Keeping an open mind is essential with the limited inventory in the spring market. Don't limit yourself to a specific location or style of home. Be open to exploring different options appropriate to your needs and budget.

Planning for the financial future as a couple is crucial to building a life together. Planning is vital in strengthening a relationship's bond of trust and understanding. When couples plan together, they often practice good financial management skills and communication, creating a comprehensive financial future. Here are seven essential tips to help couples work toward their goals.

Tip #1- Practice open communication.

Discussing finances might not be the most romantic topic for couples, but it is instrumental for a healthy relationship. Both partners must discuss and disclose their financial status, including debts, savings, investments, and financial habits. Open communication helps understand each partner's financial position and aids in planning the household finances accordingly.

Tip #2- Follow a budget. Budgeting is an essential aspect of financial confidence. Couples should sit together and create a budget catering to their needs, wants, and future goals. The budget should cover necessities like utility bills, groceries, housing, insurance, and other daily expenses. A well-planned budget helps couples track their spending habits, prioritize their needs, and allocate funds appropriately.

The Internal Revenue Service (IRS) plays a central role in ensuring fiscal discipline while at the same time providing a stable economic platform for long-term financial growth. One of the IRS's areas of emphasis is retirement savings, with regulations adjusted annually to cater to the changing economic landscape. This piece seeks to review the 2024 IRS retirement saving thresholds, giving readers a glimpse into the future as they plan their retirement savings.

The IRS adjusts its retirement savings thresholds, reflecting the changes in the cost of living and inflation rates. The primary reason for these changes is to encourage individuals to save for retirement and to ensure that the retirement savings system remains fair and equitable. Understanding these thresholds helps saving and tax planning; here are the retirement savings thresholds for 2024.

IRAs- First, the contribution limit for Individual Retirement Accounts (IRAs) will experience a moderate increase. The limit on annual contributions to an IRA increases to $7,000, up from $6,500. The IRA catch‑up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment. For 2024, the catch-up contribution limit is $1,000, bringing the total for individuals aged 50 and over to $8000.

A personal credit crisis is something many people fear, as it can lead to financial ruin and burden an individual with immense debt. Credit issues can lead to numerous problems such as legal judgments, fraud, overspending, and negative impacts on your credit score. Fortunately, steps can be taken to avoid such a crisis. Here are eight things that can help you manage your finances and prevent a credit crisis.

1. Budget and track expenditures. It's essential to maintain a strict budget irrespective of the size of one's income. Uncontrolled spending can lead to incurring a significant amount of debt, which in turn can trigger a credit crisis. It's vital to always keep a detailed record of expenditures to prevent overspending and stay within a budget.

2. Conduct regular financial audits. Regularly auditing your financial health to check uncontrolled spending, investment performances, and wealth accumulation is essential. Also, periodically audit your credit reports to detect any errors or anomalies that could negatively impact your credit scores. In case of discrepancies, it's crucial to initiate a dispute promptly to preserve a favorable credit status.

As we continue to navigate the digital era, Artificial Intelligence (AI) technology advancements have impacted many industries, most notably finance and banking. However, with the development of AI comes a problem: AI is making financial fraud harder to spot.

The repercussions of AI-driven fraud extend beyond the immediate monetary losses. There are substantial costs related to reputation, customer trust, and regulatory compliance. Trust-based business relationships can be eroded due to these fraud incidents, leading to indirect losses that result in direct financial losses.

Traditionally, fraud has been fought using standard detection systems and manual fraud analysis. However, traditional approaches to combat fraud must be revised as fraudsters become more sophisticated, leveraging AI to perpetrate malicious deeds. They have ushered in an era of "intelligent fraud," which is now more complex to detect and prevent.

This escalating sophistication of financial fraud exemplifies a "moving-target defense" that the finance and banking sectors must continue to implement. Fraudsters relentlessly adapt their tactics, forcing businesses and banks to continually adjust their fraud detection models, which, in turn, slows down the detection process, allowing fraudsters more time to prepare their schemes.

As one approaches retirement, monitoring your financial situation by understanding your net worth and assessing the assets and resources needed to maintain a comfortable lifestyle throughout retirement is vital. This article explores eight key financial wellness metrics that pre-retirees must monitor as they approach retirement.

1. Income replacement ratio. One of the primary financial wellness metrics is the Income Replacement Ratio (IRR), which calculates the percentage of your pre-retirement income that your retirement income will replace. Many individuals work toward a target ratio between 70-80%. Therefore, if you currently make $100,000 annually, your retirement income should ideally be between $70,000 to $80,000.

2. Net worth. Net worth is one of the most fundamental financial wellness metrics, measuring the total assets, including savings, personal properties, and investments, minus any liabilities or debts. This metric gives an essential broad picture of your financial health and indicates financial stability that may help you to support yourself comfortably in retirement.

3. Liquidity ratio. The liquidity ratio is another critical metric that measures your ability to cover short-term expenses without selling long-term assets or taking on additional debt. This ratio is calculated by dividing your liquid assets, such as cash, savings, and short-term investments, by your current liabilities. A ratio of 1 or greater indicates a healthy level of liquidity. A ratio of 0 or -1, and so on, may indicate concern.

Tax planning is an essential aspect of financial management, especially for individuals who have accumulated substantial wealth over their lifetime. Retirees, in particular, need to pay special attention to their tax planning strategies to help ensure they can address their retirement income and leave a significant legacy for their descendants.

The substantial assets of many retirees often mean they bear a heavier tax burden than others. The key to reducing this tax liability lies in creating a strategic tax plan, utilizing various tax-efficient tools, and remaining agile in response to changes in tax laws. In addition, retirees may consider optimizing tax planning strategies, which include Roth conversions, tax-efficient investments, estate planning, trusts, and charitable planning.

1. Roth IRA conversions. Roth conversions are a quintessential consideration in a tax planning strategy. A Roth IRA allows for tax-free growth and distribution, affording retirees a tax-advantageous means of growing and accessing retirement funds. However, pre-tax assets must be converted into a Roth using a Roth conversion, which triggers a tax payable event. Retirees may find performing these conversions during lower-income years or market downturns beneficial to help mitigate the tax impact.

An increasing number of full-time workers seek to increase their income through working a side hustle, which is employment in addition to a full-time job. In this article, we'll delve into the benefits of this trend, essential tips for juggling multiple jobs, and the thin line between considering it as a hobby or business income.

The benefits of a side hustle

Although a side hustle offers the potential for more income, its benefits extend far beyond. Side hustles enable individuals to explore their interests or passions outside their full-time jobs. Side hustles often amplify a sense of freedom and self-reliance, reducing job-related stress and burnout.

A side hustle can be an excellent way to strengthen or add to a skill set, which could lead to promotions or improved job performance in a full-time career. Depending on the side hustle, it may become a viable, exciting career option or help establish a safety net for layoffs or job loss.

Ways to reduce side hustle challenges

Combining full-time work with a side hustle may be challenging, and the key to independence largely depends on mastering the art of balancing multiple jobs. Here are a few tips to make it smoother:

Wouldn't it be nice to pay fewer income taxes in retirement? A tax-advantaged strategy called a Roth IRA conversion may lower your taxable income later in retirement. A Roth IRA conversion involves repositioning a traditional IRA or qualified employer-sponsored retirement plan assets into a Roth IRA. There are a few Regardless of your goals, planning at the beginning of the New Year can prepare you to work toward achieving them. One of the most significant benefits of planning is that it gives you the confidence to stay on track toward your goals or make changes to pursue them throughout the year.

To get started, examine your current financial situation by assessing your budget, debt management, savings, retirement savings, and insurance. Next, work toward more complex areas, such as your will and estate plan. As you start planning, your marital status, assets, income, health, financial literacy, employee benefits, number of children, and future retirement income must all be factored into your plan. While having a plan can't guarantee protection from unexpected life events, it can help you create the groundwork to achieve these eight things in the New Year:

1. Establishing an emergency fund- An emergency fund is money saved in an account to use during financial stress to help improve economic security.

Asset management coupled with financial wellness are crucial for ensuring long-term confidence when wealth transferring from generation to generation. Understanding and implementing appropriate wealth transfer techniques is essential for effectively sharing wealth with the next generations. Here are some essential techniques to help manage generational wealth transfer more confidently:

Participating in Estate Planning- One pillar for managing generational wealth transfer is thorough estate planning. Estate planning doesn't just involve drafting a will; an estate plan should include provisions for the possible incapacity of the wealth owner, power of attorney, healthcare directives, and other appropriate documents for efficient wealth transfer. For families, it's essential to incorporate trusts as part of the estate plan to help pursue the future control of assets.

Purchase life insurance- Life insurance is essential for generational wealth transfer because it allows one to leave a significant amount of money tax-free to heirs. Life insurance can also help cover estate taxes and provide liquidity when needed.

As the end of the year approaches, investors need to focus on tax-related considerations, particularly regarding capital gains. Year-end tax planning can help investors manage their overall tax liability while seeking to manage investments for suitable tax outcomes. Here we explore four key tax planning tips for capital gains: what it is, tax law changes, tax-efficiency, and offsetting capital losses.

Tip #1- Understanding capital gains

First, having a good understanding of the concept of capital gains is crucial. In simple terms, a capital gain is the increase in value of an investment or real estate beyond its purchase price. However, this gain is unrealized until the investment sells. The resulting profit from a sale is taxed at a rate that depends on how long the investment was held. Capital gains taxes apply only to capital assets, which include stocks, bonds, digital assets like cryptocurrencies and NFTs, jewelry, coin collections, and real estate.

The current tax law provides for two types of capital gains: short-term capital gains for assets held for less than one year and long-term capital gains for assets held longer than one year.

Recessions, defined by consecutive quarters of negative economic growth, have been a cyclical feature of market economies since their inception. While it's tempting to quantify a recession solely in terms of GDP contraction, it's crucial to understand that the implications stretch far beyond economic growth. To truly appreciate the encompassing impacts of a recession, one must delve into various areas that may be affected:

Sociopolitical Considerations- Recessions leave a significant footprint on the socioeconomic landscape of affected nations. In severe cases, recessions may escalate social unrest. Dwindling financial resources can bring heightened competition and intensify socioeconomic issues and political instability. For instance, during the 2008 financial crisis, social movements like Occupy Wall Street emerged as a direct response to perceived corporate greed and financial mismanagement, demonstrating the profound sociopolitical ramifications of an economic recession.

National and Corporate Debt- National and corporate debt levels invariably surge during recessions as nations and businesses borrow to balance their books. As revenues plummet, they borrow to cover operational costs and essential services. The increased debt can compel spending cuts, leading to fewer managed services, job losses, and other consequences. For example, during the COVID-19 pandemic, companies worldwide loaded on debt to survive, potentially setting the stage for a future debt crisis.

As the landscape of our economy shifts and evolves, so do the policies and practices that guide our federal programs. One such program that undergoes continual alterations and modifications is Social Security. In this article, we will explore the social security changes anticipated in 2024 that could significantly affect Americans who rely on this vital government program.

While the Social Security program, designed to support elderly and disabled citizens, has been a cornerstone of public policy since its inception in 1935, it is not immune to transformations. Social Security Retirement beneficiaries must know these changes to help plan their finances accordingly.

One of the critical changes forecasted is the increase in the Full Retirement Age (FRA). FRA is when people can claim 100% of their social security benefits. In the past few years, there has been an incremental shift in the FRA. This gradual age increase is a response to the enhanced life expectancy rates and stabilization of mature-age employment levels.

In the changes proposed for 2024, the FRA is expected to reach 67 for those born in 1960 and later. This shift could result in lower monthly benefits for those who retire early. Similarly, those who pursue their FRA in 2024 may have to wait a bit longer to claim their full benefits.

A donor-advised fund (DAF) is a charitable giving vehicle administered by a public charity created to manage charitable donations on behalf of organizations, families, or individuals. The benefits of DAFs extend beyond their primary purpose of facilitating philanthropic activities. One of the main incentives of DAFs is the tax benefits donors receive from giving. Donors can bolster their philanthropic impact by understanding and leveraging these tax advantages:

1. Immediate Charitable Tax Deductions- One tax benefit of DAFs is the immediate charitable tax deduction. When a contribution is made to a DAF, the donor receives an immediate tax deduction in that tax year. The donor can immediately benefit from the tax deduction before the funds are granted to specific charities.

The tax deductions apply to multiple contributions: cash, privately held stock, real estate, and other appreciated assets. However, the IRS limits the deductible amount based on the donor's adjusted gross income (AGI) for tax purposes. Typically, the deductions can be up to 60% of AGI for cash contributions and up to 30% of AGI for appreciated securities.

2. Tax-Free Growth- Donations in a donor-advised fund grow tax-free, which may incentivize donors to continue giving and increasing their contributions. The investments made within the DAF continue to appreciate without incurring capital gains taxes. Over time, appreciation may lead to a larger pool of funds available for charitable giving, magnifying the donor's philanthropic impact.

Investors must perform a thorough year-end financial review as the year draws close. Whether you're a seasoned investor or a beginner testing the waters of wealth creation, a comprehensive financial evaluation allows you to modify your strategy, rebalance your portfolio, and manage your returns. Below is an eight step year-end financial checklist to help ensure you're on track for financial independence in the New Year.

Step #1- Evaluate your financial goals. The first item on your financial checklist should be taking stock of where you stand with your financial goals. This evaluation may provide a clear insight into how your investments have performed throughout the year and whether or not you've achieved your objectives. It's crucial to assess if these goals align with your current financial situation, standard of living, and retirement plans.

Step #2- Review your investment portfolio. A balanced investment portfolio is part of a comprehensive investment strategy. Review your portfolio to ensure it aligns with your risk tolerance, investment goals, and timeline, which may evolve. Understand your wealth distribution across various asset classes; is there a need for rebalancing according to market trends and financial circumstances?

Many people are aware of their capacity to impact the world to make it a better place through giving. Philanthropy and charitable giving provide a platform for them to affect positive change beyond wealth accumulation. Charitable endeavors can be personally rewarding while positively impacting the broader society that benefits from their generosity.

The traditional one-time donation is always honorable, but other innovative strategies may have a broader impact. Here are some charitable giving ideas to consider:

Implementing a Donor-Advised Fund (DAF). A Donor-Advised Fund is a philanthropic vehicle that provides an immediate tax benefit to the donor. You contribute financially to the fund and get the privilege to recommend grants to non-profits of your choice over time. DAF allows donors to decide where their funds may make the most impact.

Impact investing. Impact investing refers to investments made into companies, organizations, and funds to generate a social/environmental impact and a financial return. This type of charitable giving goes beyond simply writing a check; it involves actively funding strategies for some of the world's most pressing problems.

For many, retirement is the phase of life to kick back, relax, and enjoy the fruits of years of working and saving. However, financial decisions before and during retirement can significantly influence our quality of life and tax liability. Therefore, employing tax-smart retirement withdrawal strategies may help you maximize your retirement nest egg.

Here are seven tax-smart retirement withdrawal strategies to help mitigate your tax burden and help you maintain financial confidence throughout retirement:

1. Tap into your non-retirement accounts first. Withdrawing money from your non-retirement accounts may make sense earlier in retirement. Why? The IRS doesn't tax the principal balance you contributed to these accounts. You will only have to pay taxes on dividends and capital gains. Plus, delaying withdrawals from tax-deferred retirement accounts gives your money more time to grow.

2. Utilize a Roth IRA Conversion. Converting a traditional IRA to a Roth IRA may help mitigate your tax liability in retirement. However, you'll have to pay taxes on the converted amount during the conversion year, but the money in your Roth IRA will continue to grow and can later be withdrawn tax-free.

Wouldn't it be nice to pay fewer income taxes in retirement? A tax-advantaged strategy called a Roth IRA conversion may lower your taxable income later in retirement. A Roth IRA conversion involves repositioning a traditional IRA or qualified employer-sponsored retirement plan assets into a Roth IRA. There are a few reasons why investors may pursue a Roth IRA conversion strategy:

· A Roth provides the flexibility to withdraw money when needed.

· There is no Required Minimum Distribution (RMD).

· A Roth IRA conversion as part of estate planning may help lessen the impact of estate taxes on an estate.

Before initiating a Roth IRA conversation strategy, here are things to consider before making your decision:

#1- You will have to pay taxes. Since traditional IRAs and other qualified retirement plans are tax-deferred, upon converting assets into a Roth IRA, the account owner must pay income tax on the amount they convert. Also, the taxes are due upfront when the conversion occurs.

#2- Your Adjusted Gross Income (AGI) may increase. A Roth IRA conversion will increase your income in the year that the conversion happens. Increasing your AGI may also impact your income tax as you move into another income tax bracket.

The financial decisions you make between now and the end of the year can significantly impact how much you may pay once tax day arrives. If you take action before December 31st, you may reduce your tax burden and keep more of your hard-earned money. Here are some smart tax-saving strategies to consider:

1. Max out your retirement savings contributions- Tax-advantaged retirement accounts such as 401(K)s and IRAs fund with pre-tax dollars. Any additional contributions you make now can help lower your 2023 taxable income. Therefore, max out your retirement account contributions if you before the end of the year. If you receive an end-of-year bonus from your employer, request to contribute it to your pre-tax retirement savings account.

Use the IRS contribution limit notice for 2023 or contact your financial and tax professionals to determine how much you can save to help lower your taxes based on your situation.

2. Maximize your flexible saving account (FSA) contributions- FSAs are pre-tax healthcare savings accounts offered through employers designed to cover out-of-pocket healthcare costs. You don’t pay taxes on the money you contribute to an FSA. Here are a few more things about FSAs:

As the end of the year approaches, taking time for an end-of-the-year financial check-up is critical. It involves a comprehensive review of your financial position. Assessment can help you understand how you spent your money throughout the year and guide you to make better financial decisions in the forthcoming year. Prepare by using this checklist as you work toward your financial objectives.

1. Review your budget. By revisiting your budget, you can compare and contrast your actual spending with the past budget entries for the year. Reviewing is a great way to help you understand where your money went, gauge if your spending habits have been healthy or not, and decide the areas where you need to cut back. Your budget can also provide insight into investing more in the coming year.

2. Scrutinize your debt. Don't simply pay the minimum due on your debt; try to understand it. How much interest are you paying? Can you consolidate and refinance at a lower rate? Do you have a plan for paying off your debts? As part of your year-end check-up, thoroughly examining your debt may provide a strategic approach to managing it effectively.

3. Assess your investment strategies. Another key area to review is your investment strategies; analyze how much you're contributing and the performance of your investment portfolios. Also, consider if you need to rebalance your portfolio to help ensure you're on track toward your short-term and long-term financial goals.

One challenge Sustainable Finance aims to solve is the advancement of women's health. Sustainable finance and women's health have profound implications in fostering global health equity, empowering women, and advancing socio-economic development. It's important to understand the connection between sustainable finance and women's health;

· Sustainable finance is any form of financial service that integrates environmental, social, and governance (ESG) criteria into its business or investment decisions. Its underlying objective is to promote long-term environmental sustainability and social welfare.

· Women's health encompasses various issues, from reproductive health to non-communicable diseases such as cancer and cardiovascular disease. Addressing these health challenges requires financial investment, especially in developing countries lacking health infrastructure.

Sustainable finance encompasses various initiatives, including improving access to quality healthcare services, research and development (R&D) for women-specific health issues, training health professionals, and strengthening gender-responsive health systems. Through strategically investing in women's health, sustainable finance is making progress in promoting gender equality by enhancing the health and well-being of women across the globe.

In the U.S., women control a third of household assets. But by 2030, U.S. women are expected to control much of the assets that the baby boomer generation will pass to heirs, roughly 30 trillion in assets. High-earning women have become the newest face of wealth and will increase their net worth even more.

High-earning women are becoming the primary ‘breadwinners’ in many families and are increasingly the financial decision-makers. Women have unique needs that often differ from their male counterparts:

· Women have an additional life expectancy of 5 years longer than men.

· Women earn seventy-nine cents to every dollar a man earns.

· Women often take time off from work to care for other family members.

· Women, on average, save less than men for retirement and other financial goals.

Women must manage their finances and work with an advisor they trust who understands their situation. Even though they may be high earners, they must plan for and manage their wealth and may benefit by incorporating these financial planning components:

Tax planning- Planning for taxes at the beginning of the year can help determine what tax-saving strategies are available based on having a higher income. Certain tax credits and contribution limits for retirement savings accounts may phase out.

For 2023, Social Security Retirement and Supplemental Security Income (SSI) benefits increased due to inflation. The increase was 8.7%, resulting in an average monthly benefit increase of $146 per month for a yearly increase of $1,827 in 2023.

Social Security benefits are adjusted yearly for inflation as a cost-of-living adjustment (COLA) based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W index measures the monthly price change in a market basket of goods and services, including food, energy, and medical care.

With the inflationary prices Americans experienced in 2022, the 2023 Social Security COLA adjustment helped increase monthly benefits. While we can’t predict what inflation will do in 2023, the Consumer Price Index may decrease if inflation cools. In this instance, the Social Security COLA could be much less.

According to estimates by The Senior Citizens League, using current inflation data from the Consumer Price Index, it's estimated that there will be a 3.1% COLA increase in 2024. The 3.1% COLA increase would be the lowest since 2020, when there was a 1.3% increase. Social Security benefits represent about 30% of income for Americans aged 65 and older.

Gender lens investing is a type of impact investing that aims to create a beneficial social or environmental impact and an expected financial return. What differentiates gender lens investing is that it is an investment that, from its inception, is intended to benefit women and girls.

Gender lens investing considers gender-based factors in investment decision-making to advance gender equality. Gender lens investing may benefit women and girls in two distinct ways:

#1- Investing with the intent to address gender issues or promote gender equality by:

• Investing in women-owned or women-led enterprises
• Investing in enterprises that promote workplace equity (in staffing, management, boardroom representation, and along their supply chains); or
• Investing in enterprises that offer products or services that substantially improve the lives of women and girls.

#2- Investing with the following approaches to inform investment decisions:

• a process that focuses on gender, from pre-investment activities (e.g., sourcing and due diligence) to post-deal monitoring (e.g., strategic advisory and exiting); or
• a strategy that examines, with respect to the investee enterprises:
• Their vision or mission to address gender issues
• Their organizational structure, culture, internal policies, and workplace environment;
• Their use of data and metrics for the gender-equitable management of performance and to incentivize behavioral change and accountability; and
• How their financial and human resources signify overall commitment to gender equality.
more

Understanding the difference between taxable, tax-deferred, and tax-exempt accounts may improve portfolio diversification and how much return you earn over time. But often, investors may not fully understand how a strategy called asset location may help improve returns and lower their overall tax bill using these different types of accounts. Each account type has different tax rules and treatments, and understanding each may help you determine which accounts suit your situation. Here, we outline what you need to know about each account type:

Taxable accounts- A taxable account is an account for which the IRS default rules apply, meaning there are no tax benefits. However, taxable accounts often have fewer restrictions and more flexibility when investing and withdrawing from them. Examples of taxable accounts include:

· checking and savings accounts

· money market accounts

· brokerage accounts that hold securities (stocks, bonds, ETFs, mutual funds, private investments)

In a taxable account, earnings such as dividends or interest are taxed yearly (money market, checking, and savings accounts) or when you sell strategies that gain value. Long-term gains on investments sold from taxable accounts are taxed at the 15% capital gains rate, which may be lower than an investor's federal tax rate.

Without a doubt, losing your job or being laid off can be an incredibly difficult experience. But it can also be an opportunity to start fresh and take control of your career. Starting your own business is one way to do this. Here are some reasons why you might want to consider starting your own business after a career setback, courtesy of J. Martin Wealth Management.

Become the Boss

When you start your own business, you become the boss. You have the freedom to make decisions about how you want to run things and what direction you want to take the company in. It's an empowering feeling that can help boost your confidence and give you a sense of accomplishment.

Tap Into Skills That Are Unused

Starting your own business gives you the chance to use skills that may have gone unused in previous jobs. This could include anything from writing, design, marketing, accounting, or programming skills. Having these skills will give you an edge over other competitors and help set you apart from the competition.

Having enough retirement income is a top concern for many Americans nearing or in retirement. Even though they may have saved consistently throughout the working years, they may be concerned that their retirement plans will succeed. A successful retirement plan provides the ability to maintain your lifestyle for the duration of your life.

Having enough retirement income for what you need and want is essential and must be planned for, even in the best economic conditions. A way to provide income safety is by using annuities as an asset class in your retirement portfolio.

Annuities Provide Safety and Income- Annuities help retirees address a specific retirement planning risk- Longevity Risk. Longevity Risk is the risk that a retiree outlives their financial assets. Here are other things to know about annuities:

· Annuities provide income for life.

· Due to their safety and growth potential, many portfolios use annuities in the financial services industry as an asset class.

· Annuities are contractual agreements with an insurance company that provide an investor with a guaranteed income stream during retirement in exchange for a premium.

Life insurance is a great addition to your portfolio that help can protect your loved ones and beneficiaries if you unexpectedly pass away. While no amount of money can ease the grief of losing someone, life insurance may help reduce the financial burden they may face. It's important to know how life insurance works and what to consider when purchasing life insurance so you can make an informed decision before you buy.

What Does Life Insurance Cover?

Life insurance can be used to help your beneficiaries pay for your funeral costs and a variety of other expenses, including:

• Everyday bills
• Wage loss
• Child care
• Debts
• College tuition
• Business debts

It’s important to note that life insurance benefits will not apply if your death results from suicide, criminal or hazardous activities, or murder by a beneficiary.

What Are Some Types of Life Insurance?

There are numerous types of life insurance products on the market. A few of the most common types include:

Helping your child save for retirement starts with financial education and discussing the importance of saving for their future. Besides financial education, there are strategies to help them get a head start their retirement savings. Here are three ways to start saving for your child's retirement now:

#1 Life Insurance- Whole life insurance, also called cash-value life insurance, doesn’t expire, meaning your child can’t outlive it. Whole life insurance features a death benefit and a cash value, which accrues interest at a fixed rate. If one continues to pay the premiums, your child can tap into the cash value by taking a policy loan or a cash withdrawal later to help fund retirement. Here are some reasons why investing in a life insurance policy for your child may be an appropriate strategy:

· Tax-free loan- The policy owner (your child, once an adult) can take tax-free loans from the cash value of the life insurance policy for various reasons, such as retirement income or to pay for college. The loan doesn't need to be paid back but will reduce beneficiaries’ death benefits. Using a cash-value loan may result in interest charges and a reduced death benefit and may collapse the policy if not appropriately managed. Consult your insurance professional so you fully understand life insurance policy loans before initiating a policy loan.

If you love to travel, summer is a great time to do so and have new experiences near home or far away. As you plan, remember to budget for travel expenses and look for ways to save during the peak summer travel season. Here are some tips to help you save on summer travel:

#1- Create a travel bucket list. You may want to travel to a few different places this summer. Create your travel itinerary with the understanding that plans may change and be flexible. Remember to leave time in your itinerary to rest, relax, and disconnect- and not spend money. Enjoy the sunrise, sunset, parks, and places that are free too!

#2- Do your research. Once you decide where you want to travel, create an estimated budget. Conduct your research online or visit a travel professional to understand your trip's cost. Remember to include daily expenses such as meals, rides to and from the airport, and tickets to events or venues you want to attend.

#3- Decide how to pay for your travel. Regardless of how you plan to pay for travel, it takes money. If you can set aside a portion of the cost into a savings account each payday, you can enjoy a paid-for vacation versus using credit. If you must use credit, plan to pay off your vacation quickly to avoid interest fees.

Achieving financial wellness can seem like an impossible task. It's easy to be overwhelmed by the intricacies of personal finance, but with the right money mindset, you can be successful. By following these simple tips, you can start to make positive changes in your financial outlook.

The Benefits of Prioritizing Long-Term Goals

It's easy to get caught up in short-term desires for things that aren't necessary for long-term success or stability. When it comes to managing your finances, make sure you prioritize long-term goals over instant gratification. This means focusing your spending on investments that will pay off down the line instead of splurging on items that won't benefit your future self.

How to Analyze Financial Information

When new financial information is presented, it's important to take a step back and consider all the factors before making a decision. Researching a situation thoroughly before taking action will give you the confidence you need to make an educated choice. Acting out of fear or panic can often lead to hasty decisions that have long-term consequences, so it pays to think things through in advance.

529 plans are tax-advantaged savings vehicles designed to accumulate contributions and help pay for the beneficiary's qualifying education expenses. Sometimes, 529 plans have unused funds after the beneficiary graduates or decides to discontinue their education. Whatever the reason for having unused 529 plan funds, you have options of what you can do with the monies. Here are five options to consider:

As our population ages, discussions about long-term care (LTC) and who pays for it are essential for many families and state governments. LTC is ongoing care in a care facility, nursing home, or at home for those unable to perform a certain number of activities of daily living (ADL) without assistance. ADLs include eating, bathing, dressing, toileting, transferring in and out of bed, continence, or when physical, mental, or cognitive function is impaired, or when a doctor has ordered specific care.

For those with LTC insurance (LTCI), ADLs determine when the policy will start paying for their care. Paying for LTC can be costly until the policy begins to pay after a set time, such as 60 or 90 days. During that time, it is up to the individual to pay depending on their level of care:

· Skilled care- 24/7 care ordered by a physician designed to treat a medical condition and is performed by qualified medical personnel.

· Intermediate care- Rehabilitative care by registered and licensed nursing staff, aids, and other healthcare providers.

· Custodial care- Care provided by someone to assist with ADL, often supervised by a physician.

Many assume that Medicare covers LTC, but in fact it only provides limited coverage for select services, such as physical therapy. For those with little or no assets or income, long-term care (LTC) is covered by Medicaid once all financial assets are gone after several years. Both states and the federal government share financial responsibility for the Medicaid program by matching state costs with federal dollars. The way Medicaid is designed, states are left paying the bill as they work to recoup LTC costs from the federal government, which can take months or years.

529 plans can help build generational "education" wealth since the plan can pass down from one beneficiary to a beneficiary of the next generation. Here are three 529 plan wealth transfer tax saving strategies to consider:

For bank customers and investors, the news may have left them wondering what they would do if this was their financial institution. Bank customers and investors have some protection through FDIC insurance or SIPC, but understanding what each cover can help them plan for failure risk.

Who should have a 529?

A 529 plan is a tax-advantaged savings plan designed to help families save for education expenses. It can be used to save for qualified expenses at any eligible educational institution, including colleges, universities, and vocational schools. Here are some guidelines on who should consider opening a 529 plan:

Parents and grandparents: Parents and grandparents who want to save for a child's education should consider a 529 plan. By starting early and contributing regularly, they can help to ensure that the child has the financial resources necessary to pursue their education goals.

High-income earners: High-income earners may benefit from the tax advantages of a 529 plan. Contributions to a 529 plan are made with after-tax dollars, but earnings grow tax-free and withdrawals for qualified education expenses are also tax-free.

Individuals with a long-term investment horizon: A 529 plan is designed for individuals with a long-term investment horizon, as contributions to the plan grow tax-free over time. This makes it an attractive option for parents and grandparents who want to save for a child's education over a period of years.

Students who plan to attend college: Students who plan to attend college should consider a 529 plan to help pay for their education expenses. By starting to save early and contributing regularly, they can help to ensure that they have the financial resources necessary to pay for their education.

You may assume that you must rollover your 401(k) when leaving your employer into another retirement savings plan. However, depending on the 401(k) plan document and if a rollover is appropriate for your situation, it may be optional.

Springtime is a great time to review your finances so you can work toward financial independence. While many are organizing their closets and cleaning out drawers and garages, instead, clean up your finances using these ten tips:

Social Security (SS) taxes and other income are deposited into the trust fund accounts, and SS benefits payout from them. The only purpose for which these trust funds are used is to pay benefits and program administrative costs.

The SECURE 2.0 and RILA Acts were signed into law on December 29, 2022 as part of the FY23 Omnibus Appropriations Act, signed by President Biden. The SECURE 2.0 Act has 92 provisions and affects most employers and employees participating in workplace retirement plans. Clarifications are expected from regulatory agencies in the coming months.

Some of the 2023 provisions include:

• The required minimum distribution age will be raised to 73 (effective January 1, 2023) and 75 (effective January 1, 2033).
• The individual tax penalty for failing to take the required minimum distribution will be reduced to 25% (possibly 10% if corrected within 2 years).
• The limit for purchasing qualified longevity annuity contracts is increased to $200,000 (adjustable for inflation) and is no longer limited to 25% of assets.
• Participants age 50+ can contribute an extra $7,500 in catch-up contributions (increased annually for inflation starting in 2024).
• Employers can give the option to receive matching contributions on a Roth (after-tax) basis.
• Employers can offer incentives to encourage employees to join retirement plans.

Future provisions include: