Retirees often overlook the impact of taxes on their retirement savings until it’s time to start withdrawing funds from their pretax accounts. According to a study conducted by Northwestern Mutual, only 3 in 10 Americans have a plan in place to reduce taxes on their retirement savings. One effective strategy to minimize the tax burden
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Recent trends have shown a significant increase in the amount of cash parked in money market funds. This is largely due to the high interest rates offered by these funds, with some investors earning up to 5% annual percentage yields on savings accounts and other low-risk vehicles. However, experts are warning against becoming too comfortable
In recent years, individual retirement accounts (IRAs) have been increasing in size, which has led to potential tax issues for retirees and their heirs. According to the Employee Benefit Research Institute, the median IRA or self-employed Keogh balance was $87,000 in 2022, showing a steady increase from $81,144 in 2019. Additionally, a Fidelity report found
In a year filled with challenges for college applicants, one crucial factor emerged as the primary influence on students’ decisions – financial aid. The significance of financial aid in college choices cannot be overstated, as it often determines where students will ultimately attend. Even in normal circumstances, the amount of financial aid offered, including grants,
The U.S. Department of the Treasury and IRS have recently released final tax reporting rules for digital asset brokers, and crypto investors are facing the challenge of preparing for these changes within a limited time frame. The new regulations are set to phase in starting in 2026, with significant requirements for brokers to report gross
The unemployment rate has been below 4% for 30 months, a near record, but there are still many individuals who are struggling to find a job. Some of these individuals, known as NEETs, are not in employment, education, or training. This group often consists of individuals who are discouraged by their economic standing and are
In a recent ruling, the 10th Circuit U.S. Court of Appeals decided to lift an injunction that had temporarily halted a key provision of President Joe Biden’s Saving on a Valuable Education (SAVE) plan. This decision comes as a major victory for the Biden administration, allowing them to move forward with implementing the income-driven repayment
The U.S. stock market landscape has seen a significant shift in recent years, with just a handful of companies dominating the market. The S&P 500, a widely recognized benchmark for U.S. stocks, serves as a telling illustration of this trend. The weight of the top 10 stocks in the S&P 500 has surged significantly, accounting
Planning for retirement involves more than just watching your savings rate and total nest egg; it also requires considering your life expectancy. This number can be elusive and uncertain, as no one knows how long they will live. The financial industry often defaults to age 95 as a life expectancy assumption, but that may not
Lawmakers have been increasingly interested in taxing the ultra-rich, but a recent Supreme Court ruling could pose a threat to future wealth tax proposals. In the case of Moore v. United States, a challenge to the “mandatory repatriation tax,” which is a one-time levy on certain foreign investments enacted in 2017, was blocked by the