The second bill, the Family Savings Act of 2018 (H.R. 6757), includes changes to retirement and education accounts and creates a new tax-deferred savings account. For starters, the measure would remove the age limit on individual retirement account contributions. Currently, IRA owners cannot make additional contributions beginning in the year they turn 70½. Roth IRAs,
Growing up in Connecticut helped shield Emilie Hoogewerff, 24, from the crash. “I don’t think I knew how bad it was,” she said. Hoogewerff describes her hometown as a bubble for “rich, white people who don’t have much connection to what’s going on in the world.” But Hoogewerff was not rich. At 14, after her
Ultra-wealthy investors may be feeling bearish about the markets, but they are still searching for returns. Members of TIGER 21, a group of about 630 individuals with at least $10 million to invest, allocated more of their wealth toward stocks and riskier assets during the second quarter of 2018, according to the group’s quarterly report.
The poverty rate also fell for the third consecutive year. In 2017, the official poverty rate was 12.3 percent, down from 12.7 percent in 2016. The number of people who did not have health insurance – 28.5 million, or 8.8 percent, in 2017 – did not change significantly from 2016, according to the Census Bureau.
It’s important to note that the percentage is based on your insured value, not the damage caused. So if your home is insured for $200,000 and you have a 2 percent hurricane deductible, you’ll pay $4,000 even if the damage is only, say, $10,000. Policies also have coverage exclusions and limits that are helpful to
As interest rates continue to rise, investors now have a few options as to where they can store their short-term cash. “Now that we have begun seeing yields pop up to more meaningful levels, it’s important to shop around,” said Morningstar’s Benz. The Crane 100 Money Fund Index, which measures the 100 largest money market
Though the Salamones had laid the groundwork for some of their long-term goals, including opening 529 college savings accounts for their three children, they never had a formal financial plan. John didn’t have a will when he died, which initially made it difficult for MaryEllen to access the money he had left behind. It’s a
In the last decade, the S&P 500 has rallied 200 percent, yet many Americans are less willing to invest in the market than they were before 2008. Roughly three quarters of Americans, or 74 percent, said their financial habits have changed as a result of the financial fallout and Great Recession, according to a new
But transparency and open conversations must take place, Timmons says. Referring to the shock of the study’s title, she said, “You’d never let someone not answer your question if you were asking about an STD.” Just like a physical STD, you can take steps to protect yourself. The methods to guard against transmission are similar
For the industry, the shift in policy and priority at the CFPB has been a welcome relief. “We appreciate the willingness of the bureau’s leadership to seek input from all stakeholders as it reviews the CFPB’s priorities to ensure that regulations benefit and protect consumers,” said Ian McKendry, spokesman for the American Bankers Association, in
The Atlantic hurricane season runs from June 1 to Nov. 30, although the peak season is mid-August to late October. Last year’s three monster storms — Hurricanes Harvey, Irma and Maria — hit during that period of high storm activity. Combined, they caused $265 billion in damage, according to the National Oceanic and Atmospheric Administration.
It turns out that your major is just as important — if not more — than where you go to school. Personal finance website Bankrate.com ranked 162 college majors based on average annual income and unemployment rates. New to the site’s ranking this year was another consideration— the portion of degree holders who have advanced
Dollar advantage: $1 currently buys 19 Mexican pesos, up 5 percent from last year and about twice as much as a decade ago, according to OANDA.com. Airfare: The average round-trip flight price is $377, down from $381 last year, according to Hopper.com. Because of the warm weather, cheap flights and close proximity, Mexico remains an
Be aware that backdoor Roth conversions from nondeductible contributions can be tricky. If you have other IRAs, including a SEP and SIMPLE IRAs, with pretax dollars in them, you could face income taxes based on the overall value of all the accounts. This is known as the prorata rule. Further, if you’re due to take
Grandparents saving for their grandchildren’s education could especially benefit, Kantrowitz said. Currently, a parent’s 529 plan has a minimal impact on their child’s financial aid eligibility, whereas grandparents’ accounts can have a serious one. To work around that drawback, grandparents could now wait to use their 529 plans until their grandchildren are out of school
Kevin Lamarque | Reuters Richard Smith, former chairman and CEO of Equifax Inc., testifies before House Energy and Commerce hearing on “Oversight of the Equifax Data Breach: Answers for Consumers” on Capitol Hill in Washington, U.S., October 3, 2017. “There’s no question that the silver lining in the Equifax data breach is that it woke
If you’re looking for a country that offers a quality retirement, you may want to look outside the U.S. Natixis Investment Managers has released its annual ranking of countries with the best retirement based on finances, material well-being, health and quality of life. This year, the U.S. managed to nudge up one spot to number
Among the other points you should know: under public service loan forgiveness, your debt is forgiven tax-free. Your private loans can’t be forgiven; only federal loans qualify for public service loan forgiveness. Kantrowitz said some people assume they’ll qualify for forgiveness after 10 years of payments. However, it’s not about how long you’ve been paying
It’s never too early to establish some guardrails for your child’s spending. Draw up a budget for the school year, and get to know the real cost of attending school. “Do you want to live well at college at the expense of living well after college?” asked Goldrick-Rab. Go beyond the school’s estimates: Think about
In addition, there is the risk that if you are covered by your spouse’s employer health plan and turn 65 that you can be kicked off the plan. This is not common, Votava said, and would only happen if the employer has fewer than 20 employees. For companies with 20 employees or more, there are