How Rising Interest Rates Impact Investments
In an attempt to control inflation, the Federal Reserve has signaled its intention to raise the federal funds rate (currently set at zero) three times in 2022. This will effectively raise interest rates in general, making it more expensive to borrow money. Even small increases in the federal funds rate can have an impact on […]
Why You Need an Evolving Financial Plan
Financial planning is not a set-it-and-forget-it activity. Rather, financial plans are ever-evolving based on your changing life circumstances. Your goals and priorities may shift as your career evolves and big changes like marriage, having a child, or getting a new job may warrant adjustments to your long-term plan. Here is a look at the situations […]
3 Tips for Evaluating Portfolio Performance
Building a portfolio is a big effort. It requires considering your goals, time horizon, and risk tolerance. Once that’s settled, you’ll have to choose investments that match these criteria. And this is only the beginning. Portfolios require regular monitoring and performance evaluation to ensure that the assets you own are still working together to help […]
Giving Back During the Holidays
The holiday season is a popular time to reflect on the past year and donate to causes you care about. Donations not only aid people and organizations in need; they also confer a potential tax benefit to the giver. Recent changes to the tax code resulting from the COVID-19 pandemic have also incentivized charitable giving, […]
Should You Make Early Withdrawals from Your 401(k)?
Your 401(k) is a tax-advantaged retirement account built to help you save more for retirement. Contributions can lower your taxable income, and money inside your 401(k) grows tax-deferred. Withdrawals are subject to income tax. To encourage people to keep money in their 401(k)s until retirement, the IRS may charge a 10% early withdrawal penalty on […]
How Diversifying Your Portfolio Can Mitigate Risk
Risk is an inherent part of investing. After all, no one can control the losses or gains of a particular asset, sector, or the market as a whole. But you can take steps to manage your risk by diversifying your portfolio. Here’s a look at what diversification is, why it matters, and how to do […]
Evaluating Your Executive Stock Options
As part of your compensation package, your company might offer you stock options to supplement your salary. While they can be a valuable form of compensation, they also leave you with plenty of decisions to make about how and when to use them. It’s important to understand the ins and outs of stock options to […]
The Unique Advantages of Health Savings Accounts
These tax-advantaged savings accounts can help you cover your health care expenses A health savings account (HSA) is a tax-advantaged savings account that allows individuals with high-deductible health plans to set money aside for medical expenses. These accounts offer unique tax benefits and can even be savings tools for retirement. What is a health savings […]
The 2021 Child Tax Credit: An Overview
The tax give-back for parents of young children is different in 2021 Every year, the Child Tax Credit reduces the tax liability of American parents. If it lowers their tax burden below zero, it can even put money in their pockets. The credit’s size increased following the Tax Cuts and Jobs Act of 2017. And […]
5 Tips for Reviewing an Early Retirement Offer
You’ve spent years planning and saving for your retirement. And then, out of the blue, your employer hands you an early retirement offer that could change everything. An early retirement, or “voluntary severance,” offer is a financial incentive to resign that an employer may offer to senior employees when they need to reduce payroll costs. […]
