Tehachapi's Online Community News & Entertainment Guide
Tehachapi's Online Community News & Entertainment Guide
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If you own a small business or are self-employed, you've always got plenty to do, but you can't forget about the days when you'll be less busy - that is, when you're retired. How can you prepare for that time of your life? One key step is establishing a retirement plan for your business or yourself. And thanks to the 2022 SECURE 2.0 Act, you can now receive tax credits for opening and administering a 401(k), SEP-IRA or SIMPLE IRA. These aren't the only plans available for small businesses or...
When you're retired, you'll likely have some financial concerns - just like all retirees. However, if you've invested regularly and followed a long-term financial strategy, you should be able to address most issues that come your way. But there's one important action that's sometimes overlooked by retirees: sharing their financial situation with their grown children. And this knowledge can benefit everyone in your family. You might be surprised by the concern your children have for your...
To be successful in most endeavors, it's important to develop good habits - and that's certainly the case for investors. And the earlier one develops these habits, the better. So, if you have teenagers who may be starting to work at part-time jobs, now may be a great time to introduce them to investing - and one place to begin might be a Roth IRA. As you may know, a Roth IRA is a popular retirement savings vehicle - its earnings can grow federally tax-free, provided withdrawals aren't taken...
Mutual funds offer investors a chance to own shares in dozens of companies, as well as bonds, government securities and other investments. But you might be able to broaden your portfolio further by owning another type of fund - an exchange-traded fund (ETF). An ETF, like a mutual fund, can own an array of investments, including stocks, bonds and other securities. Many ETFs are passively managed in that they track the performance of a specific index, such as the S&P 500. In this respect, they...
There has been a lot of talk about a "cashless" society, but it's not here yet. In fact, cash can still be a valuable element of your overall financial picture – if you employ it wisely. But how? Consider these four key uses of cash: • Everyday spending – Of course, you need sufficient cash on hand to pay for your cost of living – mortgage, debt payments, utilities, groceries, etc. You'll likely rely on your savings or checking accounts to pay for these needs. • Unexpected expenses and emerg...
By definition, business owners put a lot of their financial resources into their enterprises. But as an owner, you may need to invest in more than inventories and payroll to help achieve the future you've envisioned. Here are a few investments you may want to consider: • Retirement account – Depending on the nature of your business and how many employees you have, you can choose from a variety of tax-advantaged retirement plans, such as an owner-only 401(k), an SEP-IRA and a SIMPLE IRA. By con...
During your working years, you generally know how much money you're bringing in, so you can budget accordingly. But once you're retired, it's a different story. However, with some diligence, you can put together a "paycheck" that can help you meet your income needs. Where will this paycheck come from? Social Security benefits should replace about 40% of one's pre-retirement earnings, according to the Social Security Administration, but this figure varies widely based on an individual's circumsta...
If you're getting closer to retirement, you might be thinking more about Social Security. Specifically, can you count on it to contribute part of the income you'll need as a retiree? There's been an increase in alarming language surrounding the solvency of Social Security, but in reality, its prospects are not nearly as gloomy as you might have heard. Here's the story: Under current law, Social Security is estimated to exhaust its trust funds by 2035, after which benefits could be cut by 20%,...
In the past year, we've seen some big swings in the financial markets. This volatility may make you feel as if you have little control over your investment success. But the truth is, you do have more control than you might think, as long as you don't let fear guide your decisions. Investment-related fear can manifest itself in a few different ways: • Fear of loss – Some investors may emphasize avoiding losses more than achieving gains. Consequently, they might build portfolios they consider ver...
Cybercrime is booming. In 2021, the FBI reported that cybercriminals scammed nearly $7 billion from Americans - a figure slightly higher than the gross domestic product (GDP) of Switzerland for that year, according to research organization World Economics. How can you protect yourself from cyberthieves? Here are some suggestions that can help: • Watch out for "phishing" attempts. You may receive emails that appear to be from a legitimate firm, requesting information your financial institution wo...
As the year winds down, your thoughts might drift to the future. And, as part of that future, you may be thinking of where your financial assets will end up. You've worked hard to accumulate them, and you'll certainly need some of them to support your retirement, but what about the rest? What's the best way to pass them on to your loved ones? There's no single path for everyone to follow. But you might consider establishing a trust, which offers some key benefits. For example, your estate can av...
It's unfortunate, but recessions are a fairly normal part of the economic landscape. When a recession occurs, how might you be affected? The answer depends on your individual situation, but regardless of your circumstances, you might want to consider the items in this recession survival checklist: Assess your income stability. If your employment remains steady, you may not have to do anything different during a recession. But if you think your income could be threatened or disrupted, you might...
One of the rewards for working over several decades is the ability to contribute to tax-advantaged retirement accounts, which can help provide needed income for you when you do retire. As the years went by, you may well have accumulated several retirement accounts, such as IRAs and 401(k)s or similar employer-sponsored plans. But you might find it advantageous to consolidate these accounts with a single provider. Consolidating them can provide you with several potential benefits, including...
As you know, the stock market has attracted a lot of attention – and for good reason, as we've seen considerable volatility almost from the beginning of the year. But if you own bonds, or bond-based mutual funds, you might also have some concerns. However, it's important to understand why bonds should continue to be an important part of your portfolio. To begin with, let's look at what's happened with bond prices recently. Inflation has heated up, leading the Federal Reserve to raise interest ra...
If you've been contributing to an IRA, you've chosen a great way to save and invest for retirement. All IRAs have potential tax benefits and a range of investment possibilities, but not all IRA providers offer the same features. So, if you decide that your current IRA provider is charging higher fees than you'd like, or perhaps doesn't offer as many investment choices as you want, then you might choose to move your IRA assets to another provider. How should you go about making this switch? Here...
We all want to live long lives. We all expect to live long lives. But are we financially prepared for this longevity? Before we get to the issue of preparation, let's look at a couple of interesting findings from a 2022 survey by Age Wave and Edward Jones: The surveyed retirees said, on average, they expect to live to 89, and they said the ideal length of retirement is 29 years. When asked if they want to live to 100, nearly 70% of the respondents said "yes." The main reason for this desire for...
You could spend two, or even three, decades in retirement. So, to pay for all those years, you'll probably need to take full advantage of your retirement accounts. And in 2022, you may have expanded opportunities to deduct retirement plan contributions on your tax return. Before looking at what's changed this year, let's review the key benefits of these accounts: • Traditional IRA – You typically contribute pretax (deductible) dollars to a traditional IRA, and your earnings can grow tax...
Life doesn't always go as planned. For example, you might think you'll retire at 65 or later, when you'll be eligible for Medicare. But if you retire before then, how will you pay for your health care? Without insurance, you risk incurring thousands of dollars of expenses if you are injured or become seriously ill. And if you must pay for these costs out of pocket, you might have to dip into your IRA, 401(k) or other retirement accounts earlier than you had planned – which could result in a l...
We all hope for long, healthy lives. But there's a serious "side effect" of longevity – the possibility of outliving our money. How can you help prevent this? It's useful to know the seriousness of the threat. Consider this: About 41% of all U.S. homes in which the head of the household is between 35 and 64 are projected to run short of money in retirement, according to the Employee Benefit Research Institute. While this statistic indicates a cause for concern, it certainly doesn't mean that y...
This year's tax-filing deadline of April 18 is not that far off, but you still have time to make some moves that could favorably affect your tax returns. So, you may want to consider making some tax-smart contributions. You have until the April 18 filing deadline to contribute to an IRA, or to open one for the 2021 tax year. When you invest in a traditional IRA, your earnings can grow on a tax-deferred basis and your contributions may be tax deductible, depending on your income level. And as a r...
When you invest, you incur risk – there's no avoiding it. But the concept of "risk" may be more expansive than you realized. And by understanding the different types of investment risk and how these risks can be addressed, you can improve your skills as an investor. The most common perception of investment risk is simply the risk of losing money. When you invest in stocks and stock-based vehicles, such as mutual funds, there are no guarantees that your principal – your initial investment amo...
As you know, 2021 was full of challenges. We were still feeling the effects of the COVID-19 pandemic when supply chains shut down and inflation heated up. So, if you're like many people, you might not be sorry to see the year come to a close. But now it's time to look ahead to a brighter 2022. And on a personal level, you may want to set some New Year's resolutions. You might resolve to improve your health and diet, and possibly learn some new skills, but why not make some financial...
The Tuesday after Thanksgiving has become known as Giving Tuesday, when people are encouraged to donate to charitable organizations. If you'd like to take part in this special day, you'll want to maximize the effectiveness and benefits of your charitable gifts. So, consider these questions: • Is the charity reputable? Does it use its resources wisely? Most charitable organizations are honest and dedicated to helping their specific causes. But sometimes there are a few "bad apples" in the b...
If you're going to retire in the next few years, you'll want to start thinking about making some changes to your investment portfolio. And one area you may want to look at is whatever type of cash account you might have – because, when you're retired, the amount of cash you have readily available may be even more important than when you were working. Your cash management account could pay a slightly higher rate than a typical savings account, as well as serving as a holding place for funds t...
The COVID-19 pandemic may end up changing our lives in some significant ways. To cite one example, it's likely we'll see a lot more people continue to work remotely, now that they've seen the effectiveness of tools such as video-conferencing. Education, too, may be forever changed in some ways. Perhaps just as important, though, is how many people may now think more about the future – including how they invest. If you work with a financial professional, you may have connected with this i...
