Retirees who are concerned about the high costs of prescription drugs can breathe a sigh of relief as a new change is set to take effect in 2025. Starting in January, enrollees in Medicare drug plans will have their annual out-of-pocket drug costs capped at $2,000. An estimated 1.4 million participants in Medicare drug coverage
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When it comes to investing, many people focus on asset allocation in terms of selecting the right mix of stocks and bonds. However, what often gets overlooked is the importance of asset location. Asset location refers to where your investments are held, such as in tax-deferred accounts like traditional IRAs or taxable accounts like brokerage
The U.S. Department of Education recently provided more information on the upcoming rollout of the new Free Application for Federal Student Aid (FAFSA) for the year 2025-26. This announcement comes in response to the challenges encountered during the previous year’s college aid application cycle. The new FAFSA will undergo beta testing with limited groups of
Tax-gain harvesting is a lesser-known strategy that can provide significant benefits when it comes to rebalancing your portfolio and saving on future taxes. This tactic involves strategically selling profitable assets in your brokerage account during lower-income years, such as early retirement or periods of unemployment. This strategy can be particularly advantageous during a strong year
In recent years, the federal government has significantly increased its efforts to enforce tax payment by revoking passports of those who ignore large tax bills. This enforcement mechanism, established in 2018, requires the IRS and Treasury Department to notify the State Department when an American taxpayer has a “seriously delinquent tax debt.” This debt threshold
In his recent speech at the Democratic National Convention, Minnesota Gov. Tim Walz acknowledged the vital role that Social Security survivor benefits played in supporting his family after his father’s untimely death. This testimony shed light on the significance of Social Security benefits for children who have lost a parent. According to recent data from
The cost of attending college continues to rise, with some schools now reaching nearly six figures per year when factoring in all expenses. According to data provided to CNBC for the 2024-25 academic year, several prestigious universities such as New York University, Tufts, Brown, Yale, and Washington University in St. Louis have sticker prices exceeding
The recent massive data breach at National Public Data, a background check company owned by Jerico Pictures Inc., has raised concerns about potential exposure of 2.9 billion personal records. While reports vary on the exact number of records leaked, the breach is a stark reminder of the risks associated with cyber threats. According to National
The recent announcement by Federal Reserve chair Jerome Powell regarding a possible interest rate cut has sparked discussions among investors and financial advisors. Powell’s indication that the central bank might start cutting interest rates, currently at their highest level in two decades, has implications for various investment strategies and asset classes. While some investors may
When it comes to maximizing 401(k) contributions, financial advisors have varying opinions on who should take that step for their retirement savings. While some believe it is a wise decision to fully utilize the allowances provided, others caution against overextending financially. Before deciding to max out your 401(k) contributions for 2024, it is essential to