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
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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
Remote work has become an integral part of the U.S. labor market, with economists seeing it as a significant shift that is here to stay for a long time. The rise of remote work was accelerated by the Covid-19 pandemic, leading to a widespread adoption of work-from-home arrangements. This trend has not only persisted but
Retirees facing income from various sources such as Social Security, pensions, retirement plans, and other investments often struggle with tax obligations. The IRS requires retirees to either withhold taxes or make quarterly payments to avoid penalties. While the quarterly estimated tax deadlines are well-known, there is a lesser-known year-end strategy that can help retirees cover
After funneling money into pretax retirement accounts, retirees will eventually face mandatory withdrawals in retirement known as required minimum distributions, or RMDs. While RMDs can trigger higher taxes, they can also offer an opportunity to optimize your investment portfolio, according to experts. Certified financial planner Matthew Saneholtz, chief investment officer and senior wealth advisor at
Former President Donald Trump has made it clear that he intends to preserve the individual and business tax cuts that were enacted via the Tax Cuts and Jobs Act (TCJA). His campaign team stated that he plans to continue with these tax cuts and has even promised “big tax cuts for families and small businesses.”
The federal minimum wage has remained at $7.25 per hour for the past 15 years, causing many workers to struggle to make ends meet. While some states have enacted higher minimum hourly pay rates, there are still 20 states where the minimum wage is no higher than the federal level. This stagnation has led to
Vice President Kamala Harris recently unveiled an economic plan that includes an expanded child tax credit worth up to $6,000 in total tax relief for families with newborn children. This proposal aims to restore the higher child tax credit that was enacted through the American Rescue Plan in 2021, providing significant financial support to families
As investors approach retirement, it is crucial for them to be aware of the potential threat known as “sequence of returns risk.” This risk, also referred to as “sequence risk,” is a significant issue caused by poor investment returns combined with withdrawals, especially in the early years of retirement. This unfortunate combination can lead to
President Donald Trump recently proposed a bold idea for Social Security – ending taxes on benefit income. This proposal aims to ensure that seniors do not pay taxes on their Social Security benefits, allowing them to keep more of their monthly checks. While this may sound appealing at first, the plan has faced criticism for