Will you outlive your retirement income? Are your financial expectations for the coming year realistic?
Our financial newsletters are designed to provide helpful information on a wide variety of financial topics. Simply click on one of the newsletter topics below to read the article in its entirety.
April
President Trump’s rapid, on-and-off implementation of tariffs and the escalating trade war it sparked unsettled the financial markets. Meanwhile, the U.S. economy, which had appeared to be pulling off a soft landing, began to flash...
In fact, target-date funds are not as simple as they appear to be. Like all investment options, they have strengths and weaknesses. Focused on time Target-date funds offer a professionally managed mix of assets —...
The difference between deficit and debt When the federal government spends more money than it collects in taxes in any given fiscal year (the government’s fiscal year runs from October 1 to September 30), there...
Although it’s scary to consider the possibility of a cancer diagnosis, it might be helpful to prepare for the financial implications. Even with health insurance, today’s advanced cancer treatments can be very costly. And for...
If your employer-sponsored retirement saving plan allows traditional and/or Roth contributions, which type should you choose? It may help to compare the key features of these accounts and consider a couple of hypothetical examples. Saving...
Once considered a far-fetched notion, the prospect of a four-day workweek (with no loss in pay) is now being taken seriously by companies around the world. This is largely due to changing attitudes towards work-life...
March
A tariff is a tax on a particular class of imported goods or services that is typically designed to help protect domestic industries from foreign competition. However, the Trump administration is also using tariffs as...
Estate, gift, and generation-skipping transfer tax The annual gift tax exclusion (and annual generation-skipping transfer tax exclusion) for 2025 is $19,000, up from $18,000 in 2024. The gift and estate tax basic exclusion amount (and...
Working together Tax-deferred retirement accounts such as 401(k)s, 403(b)s, and IRAs can be held in only one person’s name. [A spouse is required to be the beneficiary of a 401(k), and to some extent, a...
The federal government has offered a formal phased retirement program since 2014, allowing eligible full-time employees to collect half their pensions while working half time. Typically, at least 20% of their remaining work hours must...
Value stocks are associated with companies that appear to be undervalued by the market or are in an industry that is currently out of favor. These stocks may be priced lower than might be expected...
The Fed’s monetary policy is set by the Federal Reserve Open Market Committee (FOMC), which meets eight times each year. In making their decisions, the FOMC considers a wide array of “hard” economic data but...
February
Although the increased benefit amount for individuals will vary, the Congressional Budget Office (CBO) has estimated that eliminating the GPO will increase monthly benefits for 380,000 impacted spouses by $700 on average and by $1,190...
The Employment Situation Each month, the Bureau of Labor Statistics publishes the Employment Situation Summary report based on information from the prior month. The data for the report is derived primarily from two sources: (1)...
Emergency savings account A separate account dedicated solely to emergencies is the cornerstone of any financial plan and acts as the first line of defense in times of crisis. Generally, you’ll want to have at...
Higher catch-up contributions for some. As of January 1, individuals ages 60 through 63 may be able to make increased catch-up contributions (if offered) to their workplace plan. The catch-up amount for people age 50...
Of course, the fact that a product is popular doesn’t mean it’s right for you, but it might be worth considering. Indexed annuities are complex, so it’s important to understand how they work and the...
Why tipping culture is changing Tipping affects everyone (even tipped workers have to tip others!) and confusion and complaints about tipping abound. If you’re among those feeling uneasy about tipping, blame the pandemic. That’s when...
January
In an online auction, a data broker bids to place “real-time” ads for its clients on a consumer’s cell phone or other mobile device, based on consumer data shared in the auction, which typically includes...
Many states have applied for or have received optional early funding to jumpstart their home energy rebate programs. Rebates are available in some states starting in 2024 (possibly delayed until 2025 for others). The DOE...
What you can do now Save as much as possible in tax-advantaged accounts. If you’re forced to retire earlier than planned, your work-sponsored retirement plans, IRAs, and health savings accounts (HSAs) could become critical resources....
If you plan to pay for care out of pocket, consider how long your retirement savings would last if you or your spouse end up needing care in a nursing home for several years. How...
An increase in extreme weather events in recent years has caused many insurance companies to raise rates, restrict coverage, or stop selling policies in high-risk areas. This has left some homeowners in a precarious situation...
You have extra cash on hand, perhaps from a bonus or an inheritance. It’s sitting in a low-yield account. You are close to retirement or retired. You want to keep your home but lower your...
December
Why gift life insurance? Life insurance allows you to make a much larger gift to charity than you might otherwise be able to afford. Generally, the amount the charity will receive (the death benefit) is...
Set aside time to plan Effective planning requires that you have a good understanding of your current tax situation, as well as a reasonable estimate of how your circumstances might change next year. There’s a...
1. Make a list. Establish an overall budget, then make a list of gifts you will need to buy and how much you can afford to spend on each person. 2. Shop early. If you...
You may face an increased risk of having a liability claim filed against you if you have a dog, a swimming pool, a trampoline, employ workers in your home, or own a rental property. Or...
This is not the only reason it may be worthwhile to divert a sizable portion of your earnings to a tax-deferred retirement account. Doing so could significantly reduce your taxable income. Here are two types...
November
By contrast, China received just 3% of foreign investment from 2021 to 2023, a significant drop from an average of 7% in the decade ending 2019. Investment in other emerging economies also declined as the...
You might consider holding Treasuries to maturity to add stability and predictable income to your portfolio, or you could purchase them with an eye toward selling if prices rise — or both. Whatever your goals,...
If you don’t yet have a will, you’re not alone. According to a recent survey by Caring.com, 64% of Americans think having a will is important, but only 32% have one.1 There are many reasons...
Tips for submitting the FAFSA The 2025–2026 FAFSA is the same as the redesigned, streamlined version from last year. Here’s what you need to know about completing the form. FSA ID. To file the FAFSA...
New beneficiaries can choose among these options when they enroll, while current beneficiaries can make changes during the annual Open Enrollment Period from October 15 to December 7 (see chart). Some changes can also be...
These events brought renewed attention to how banks operate and the risks they take to earn money on customer deposits, as well as the government’s role in regulating and supervising bank activities. Interest rate risks...
October
The long-awaited policy shift suggests that a soft landing — the rare feat of bringing down inflation without causing a recession — is in sight. It also marks a critical juncture for the economy, with...
Higher vehicle prices and repair costs (including parts and labor), more accidents, a rising number of fraud cases and lawsuits, and severe weather events have affected the bottom line of insurers, leading to across-the-board rate...
You should periodically review your life insurance coverage to ensure that it adequately reflects your life situation. Here are several methods to consider in determining your life insurance needs. Income rule The most basic rule...
Credit cards are no longer viewed solely as a debt instrument for cash-strapped individuals. Instead, they are prized for a variety of benefits, such as earning rewards and travel perks, protecting purchases, building credit, and...
If your spouse consents in writing, you can waive the QJSA and elect instead to receive a single-life annuity. With this option, payments are made over your lifetime but stop upon your death. Single-life annuity...
Let’s say you want to purchase a bank-issued certificate of deposit (CD), because you like the lower risk and fixed interest rate that a CD can offer. CD rates rose substantially with the Federal Reserve’s...
September
The final losses for the day were not as bad as they might have been. In the early morning, the CBOE Volatility Index — often called the fear gauge — reached the third-highest level in...
RMDs and RBDs IRA owners and, in most cases, retirement plan participants must start taking annual required minimum distributions (RMDs) from their non-Roth accounts by April 1 following the year in which they reach RMD...
Receiving retroactive benefits in a lump sum might be helpful if you face a change in health or need cash in an emergency. However, you’ll want to think through the consequences, because taking an initial...
“The individual investor should act consistently as an investor and not as a speculator.”1 — Benjamin Graham, investor, author, and teacher known as the “father of value investing.” A speculator takes large risks in the...
Capital gains taxes apply to the profit from selling a home, so they may be of special concern — and potential surprise — for older homeowners who bought their homes many years ago and might...
Unfortunately, having a national average net worth that exceeds $1 million does not mean the typical American is a millionaire. A small number of very wealthy households skews the average. As always, the median net...
August
Background For decades, many real estate agents have had little choice but to join NAR and follow its rules regarding local Multiple Listing Services (MLS) — the databases used by most brokers to list information...
Traveling aimlessly Embarking on an adventure without a destination can be exciting, but not when it comes to retirement. Before starting any investing journey, the first step is setting a realistic goal. You’ll need to...
Keep in mind that asset allocation and diversification are methods used to help manage investment risk; they do not guarantee a profit or protect against investment loss. Establishing balance Asset allocation refers to the mix...
A common scam after the loss of a loved one, often referred to as “ghosting,” is when an identity thief uses personal information obtained from an obituary to assume the identity of a deceased individual....
After a long stretch of downbeat readings, this closely watched gauge of consumer confidence turned more optimistic at the beginning of 2024. Between November 2023 and January 2024, the University of Michigan’s Consumer Sentiment Index...
You can buy shares in individual REITs, just as you might buy shares in any publicly traded company, or you can invest through mutual funds or exchange-traded funds. The option to invest in a REIT...
July
HOT TOPIC
The French conflict over the retirement age reflects a fundamental social and economic issue throughout the developed world. Put simply, the world population is getting older, which means the percentage of workers in the population...
As a rule, if you plan on keeping a vehicle for a long period of time, it makes more sense to buy it. But if having the latest technology and safety features is important to...
Can you match these ages to the related federal benefits and tax responsibilities? One age will be used twice. 50 55 59½ 62 65 67 70 73 75 ___ 1. Eligible for full Social Security...
This change was delayed for the 2023 tax year because it could trigger frustrating unintended consequences. For example, an estimated 44 million taxpayers might have received unexpected 1099-K forms — with amounts that may not...
Here are two more ways that improving your home could potentially reduce your tax burden. Capital improvements Projects that add to the value of your home, prolong its life, or adapt it to new uses...
Contribution rules 529 plan: Anyone can open a 529 account. In 2024, individuals can contribute up to $18,000 ($36,000 for married couples) without triggering gift tax implications. And under a special accelerated gifting rule unique...
June
On the residential side of the market, the national median price of an existing home rose 5.7% over the year that ended in April 2024 to reach $407,600, a record high for April.2 Despite sky-high...
In recent decades, another school of thought has emerged. This field — known as behavioral economics or behavioral finance — has identified unconscious cognitive biases that can influence even the most stoic investor. Understanding these...
Tax withholding is a balancing act. If you have too much tax withheld, you will receive a refund when you file your income tax return. If you prefer to receive more in your paycheck, you...
If you own a pool or trampoline, entertain often, have teenagers who drive, employ household workers, coach youth sports, or are a public figure, the odds are even higher that you could become the target...
About one-third of states now have a median age above 40. Maine is the oldest state (44.8), followed by New Hampshire (43.3). Utah (31.9), the District of Columbia (34.8), and Texas (35.5) have the youngest...
If you keep excess belongings stored away from home and well out of sight, this recurring monthly expense may not stay top of mind. However, finding the motivation to empty a storage space could create...
May
The stock market dropped sharply on this news and continued to slide over the following days, while economists engaged in public handwringing over why their projections had been wrong and what the higher numbers might...
In fact, there are hundreds of indexes that track various categories of investments. While you cannot invest directly in an index, you can buy funds that track specific indexes, and you can look at indexes...
The SAVE Plan replaces the existing Revised Pay As You Earn (REPAYE) Plan, and all borrowers who are currently enrolled in REPAYE will be automatically transferred to SAVE. How SAVE helps borrowers The SAVE Plan...
More recently, ESG investing has become controversial, primarily due to large institutional investors such as universities and pension funds using ESG factors to construct their portfolios. Critics say that this approach compromises potential returns, while...
Near the end of October 2023, the average rate for a 30-year fixed mortgage climbed to a 23-year high of nearly 8%, before retreating a bit.2 But despite sky-high borrowing costs, buyer demand exceeded the...
For this reason, there may come a time when you rethink the practicality of your living situation. And planning ahead could help ensure that you will have access to the type of care you need,...