With every change in the world, there always seems to be the temptation to make an impulsive financial decision, especially when it comes to investing. This year especially was difficult for investors who made such decisions when the coronavirus hit hard and upended the stock market bringing a lot of panic selling with it. Events like the coronavirus and this year’s presidential election are always impactful when it comes to investor markets, but you need to be careful about investment decisions made solely on market movements. You can keep your long-term goals and continue building wealth if you follow certain …
What Is Suspending Social Security Benefits
Suspending Social Security benefits is a process by which an individual can voluntarily stop receiving benefits for a while. The suspension can last up to four years, and the individual’s benefits will not accrue. However, once the suspension period is over, the individual can restart their benefits and receive back payments for the months they were not receiving benefits. Reasons for Suspending Social Security Benefits 1. To Increase Your Benefit Amount One reason is to continue working and accumulating benefits. By doing this, the individual can ensure better financial stability in retirement. 2. To Promote Self-Reliance Suspending Social Security benefits …
Do You Know What You Plan on Paying Yourself in Retirement?
When it comes to getting ready for retirement, the focus is typically on setting aside enough money and investing wisely so you have enough to not only retire but also thrive. But what many people don’t realize is that you need more than just an impressive nest egg and a solid investment plan to thrive in retirement. It would help if you also thought about how to pay yourself in retirement. Paying yourself means figuring out how you will fund your everyday expenses during your golden years and other necessary expenditures, such as housing, travel and education. If you’re unsure …
Have You Thought About These Things for Retirement?
It is one of the most common questions people ask, and their parents usually ask them. What should I do when I retire? The biggest benefit of retiring is spending time with your family, but what about the rest? It’s not just about skipping work for a day or two. The question is complicated as it involves a lot of things, and we’ll highlight some factors you should keep in mind when planning for retirement. Another factor is your retirement plans. What do you want to accomplish during your retirement? Do you want to travel? Enjoy life? Spend more time …
Do You Know How to Allocate Your Portfolio?
You’ve been told time and time again that you need to invest in a diversified portfolio. But what does that mean, exactly? And more importantly, how do you achieve it? Diversification is important because it helps protect your portfolio from losses in any one particular asset class. Why is asset allocation important? Asset allocation is important because it helps you manage risk. By diversifying your investments across different asset classes, you can help balance out the ups and downs of the market. This can provide you with a smoother ride to reaching your financial goals. There is no perfect asset …
What Is Suspending Social Security Benefits
Suspending social security benefits is a process by which an individual can voluntarily stop receiving benefits for a while. The suspension can last up to four years, and the individual’s benefits will not accrue. However, once the suspension period is over, the individual can restart their benefits and receive back payments for the months they were not receiving benefits. Reasons for Suspending Social Security Benefits 1. To Increase Your Benefit Amount One reason is to continue working and accumulating benefits. By doing this, the individual can ensure greater financial stability in retirement. 2. To Promote Self-Reliance Suspending social security benefits …
What is the Student Debt Forgiveness?
In the United States, there are many ways to get financial aid to help pay for college. There are scholarships, grants, and even low-interest loans. However, with these options, student loan debt continues to grow. In fact, according to a recent report by the New York Federal Reserve, the average student loan balance has grown to $21,200 in the last ten years alone. Thankfully, there is another way to reduce or even eliminate your student debt: The Student Debt Forgiveness program. Student Debt Forgiveness programs can substantially lower or eliminate student loans if you meet specific requirements and conditions. What …
Don’t Forget to Account for All RMDs (Required Minimum Distributions)
In today’s World, an ever-increasing number of individuals are turning to Individual Retirement Accounts (IRAs) as a primary retirement savings vehicle. The main reason is the flexibility and tax advantages that IRAs offer. There are a lot of different factors to consider when it comes to saving for retirement, and it can be easy to make mistakes, especially if you are not well-versed in the ins and outs of IRAs. One thing often overlooked is taking Required Minimum Distributions (RMDs). What are RMDs? More than likely, if you have an IRA, you will be required to take a distribution at …
What To Expect in 2023 for the Cost-of-Living Adjustment
The COLA is a Cost-of-Living Adjustment for Social Security beneficiaries. It’s also known as the raise, which helps offset rising living costs so that beneficiaries don’t experience a decline in their standard of living. Seniors spend more on utilities, housing, and healthcare than younger people. In some places, the increase in prices of goods and services isn’t keeping up with general inflation. This means that the cost of living in those areas is increasing faster than average inflation. How is COLA Calculated? COLA is calculated using the Consumer Price Index (CPI). The CPI measures the average increase in prices of …
Are we going into a recession?
The past week has seen a steep decline in the stock market on the fear of rising rates and an impending recession. It’s still higher than the lows of June, but after a brief rally over summer the stock market has again turned downward. The Consumer Price Index (or CPI) numbers, a standard measure of inflation, came in at 8.3%. Everyone was expecting 8.1% and the fact that they were a smidgen higher means the Federal Reserve isn’t succeeding at curbing inflation. This means that Jay Powell, chairman of the Fed is likely to announce another 0.75% to 1% rate …