Whether you are an employee in corporate America or a small business owner, retirement is a part of life. For many, the thought of retiring and whether or not you are ready to take those first steps might be overwhelming or intimidating. Ancient philosopher Lao Tzu once said, “The journey of a thousand miles begins with one step.” [i] Here is a 6 question checklist for small business owners to ask themselves to determine if they are ready for retirement.   ☐  Have I decided on a retirement timeline? Most people don’t wake up one day and decide that they will retire tomorrow. It is a decision that requires years of preparation. Knowing when you want to retire is the first step toward pursuing this goal.   ☐  Do I have enough money set aside to maintain my quality of life after retirement? This might seem like a no-brainer when it comes to retirement, but many small business owners wonder if they will have enough to comfortably retire. Experts suggest that upon retirement, you want to have at least 10 times your annual salary in savings. Here are a few more questions to consider in preparation for retirement: [ii] Are your debts paid off? Will you be able to pay your retirement expenses (both entertainment and bills) long-term without having to eventually depend on social security? Will the 4 percent rule be an approach that is feasible for you? (The 4 percent rule refers to being able to live off of 4 percent of your invested money in the first year of retirement, then increase or decrease the amount to account for inflation in subsequent years). [iii]   ☐  Is

Once you are in your 60s, you are likely to focus less on growing your retirement funds than answering, “When do I retire?” And once you crack open your nest egg, how should you allocate its contents? The answer often lies in a substantial shift in your investment strategy. Here are some ideas for investing in your 60s and beyond.   Preliminary Questions Before you settle on a plan, you need to be able to answer a few questions. These include: How long do you need your savings to last, and how long are you likely to live? How many years might you be in retirement? What are your expected annual expenses in retirement? What is your non-invested income, such as pensions, Social Security, and annuity payments? By having an idea of how much you need in retirement and how much income you may expect to receive outside of your investments, you then calculate how much you need to withdraw from your retirement funds.   Allocating Your Retirement Assets Everyone’s safety threshold is different—but most people appreciate having a balanced portfolio of CDs and high-yield savings accounts with stock holdings. However, a too-conservative portfolio may not earn enough to outpace inflation, while a too-aggressive portfolio might leave you vulnerable to sudden market drops. There are a few different ways to approach this. One of the most popular ones is the “glide path” strategy.1 Subtract your age from 100, and that is the proportion of assets you should have in stocks. So, for example, a 40-year-old would want at least 60% of their portfolio in stocks; a 70-year-old would want no more than 30% of their portfolio in stocks. The remainder

529 plans can be powerful college savings tools, but you need to understand how your plan works before you can take full advantage of it. Among other things, this means becoming familiar with the finer points of contributions and withdrawals. How much can you contribute? To qualify as a 529 plan under federal rules, a state program must not accept contributions in excess of the anticipated cost of a beneficiary’s qualified education expenses. At one time, this meant five years of tuition, fees, and room and board at the costliest college under the plan, pursuant to the federal government’s “safe harbor” guideline. Now, however, states are interpreting this guideline more broadly, revising their limits to reflect the cost of attending the most expensive schools in the country and including the cost of graduate school. As a result, most states have contribution limits of $350,000 and up (and most states will raise their limits each year to keep up with rising college costs). A state’s limit will apply to either kind of 529 plan: savings plan or prepaid tuition plan. For a prepaid tuition plan, the state’s limit is a limit on the total contributions. For example, if the state’s limit is $300,000, you can’t contribute more than $300,000. On the other hand, a savings plan limits the value of the account for a beneficiary. When the value of the account (including contributions and investment earnings) reaches the state’s limit, no more contributions will be accepted. For example, if the state’s limit is $400,000 and you contribute $325,000 and the account has $75,000 of earnings, you won’t be able to contribute any more — the total value of the account has

Targeted scams have become even more popular with the amount of personal information readily available on the internet. Social Security recipients are, unfortunately, targeted by some of the most sophisticated scam artists out there. From phone scams to phishing attempts and intercepted deposits, here are three common Social Security scams and how you might avoid being fooled by them. Phony Phone Calls Generally, the Social Security Administration (SSA) communicates with you over the phone only if you request a call. You are unlikely to get a call from the SSA at random. Be immediately suspicious of anyone who calls you and claims to have information about your Social Security benefits. Moreover, the SSA will never require you to make payments with a gift card, wire transfer, prepaid debit card, cryptocurrency or by mailing cash. Scam artists love receiving these payments because they are more difficult to trace. Money sent in these ways may be almost impossible for you to recover. Phishing Emails or Texts Scam artists use a technique called phishing. A phishing attempt may send you a text or email message that appears to come from the SSA and coerces you into providing personal information. Once you provide some personal information or click on an unsafe link, the phishers may gain access to your bank accounts, email or social media accounts. Gaining access to social media accounts, in particular, may allow the phisher to lock down these accounts and demand a ransom in return for unlocking them. Direct Mail Fraud Although most Social Security scams have moved online, direct mail scams continue in some areas. These scams involve letters or pamphlets sent to Social Security recipients, offering an extra

Planning for retirement is exciting, but it may come with a bit of stress. If you worked hard all your life, now might be the time to relax and enjoy the fruits of your labor. One of the things that you may need to consider is when it is time to begin claiming your Social Security benefits. If you are unsure when to start your claim, here are a few questions that may help you determine if it is time to make a claim or if you should delay a little longer.   When Are You Considered Full Retirement Age? The first question to ask is what is considered your full retirement age. Once you are at your full retirement age, you are entitled to your full monthly Social Security benefit. The full retirement age depends on the year you were born. Those born in 1958 are at full retirement age at 66 and eight months. Those born in 1959 are at full retirement age at 66 and 10 months. Those born after 1960 come to full retirement age at 67.2 years old.   How Much Money Do You Have in Your Retirement Savings? You will want to consider the monthly income you get from your retirement savings. Determine how much annual income you need for your monthly obligations. Then see how much money you need to withdraw from your savings each year. If there is a shortfall, you may want to claim your Social Security when you are eligible. If you have enough annual income from savings for your needs, you may want to wait on your claim to get a higher monthly benefit.1   Are You Dealing With

Could you be losing money because of simple monetary mistakes? Avoid these money-wasting habits in 2023 to have more cash when you need it—or save it for a rainy day.   Failing to budget Conventional wisdom says to follow the 50/30/20 rule, meaning you should put no more than 50 percent of your income toward necessities like food and housing, only use about 30 percent for arbitrary spending, and then reserve about 20 percent for savings. You won’t know whether you are meeting these goals, however, if you don’t create a detailed budget. Start by carefully noting what you spend each week for about a month, eliminating any unnecessary expenses. Then create a budget for yourself to ensure you’re sticking to these reductions. If you can decrease your regular spending, you may find that when the next new year arrives, you’ll have more funds for important things like retirement or a down payment on a house. Running up your credit cards A common mistake people make is using their credit card for extras like dinners out or shopping trips and then not paying it off right away, thus incurring extra interest charges. This year, try to avoid accruing excessive credit card debt by never charging more than what you can pay back right away. You should also check the balance on your credit card weekly to make sure it’s not getting to be more than you can handle. Not having an emergency fund There are times in life when things go wrong—like when you get a flat tire or your pipes spring a leak. Even a small emergency can result in a financial catastrophe if you don’t have money set

Increasing your financial literacy may allow you to make better decisions about your money and your financial future. Many great resources are available to get you started on the path to financial literacy and to expand your current knowledge. Here are five tools to consider.   Financial Guide Books There is a wide variety of financial books published. That means that no matter your income level, current financial situation, or future financial goals, you might find a book to address your needs. For many people, books are an excellent resource option as you learn the information at your own pace and at a convenient time. Start by determining a topic you want to focus on and then narrow down your search to books that engage you and are easy to understand.1   Financial Magazine Subscriptions Magazine subscriptions are the perfect way to stay up-to-date on the latest financial insights, tips, and news. Also, receiving your magazine every month might prompt you to take the time to give your finances the once over and see what needs to be improved and what information you still need to learn.1   Local Community Events Explore some of the local and virtual financial events available in your area. Check with your local libraries or financial professionals to determine when events and seminars may occur. These events may provide you with valuable information and might have a question-and-answer session where you may ask specific financial questions.2   Financial Podcasts Listening to a podcast may help you improve your financial literacy without wasting your free time if you have a long commute or enjoy jogging or walking. Podcasts provide information that is easy to consume and

Regardless of whether you prepare your taxes yourself or use a professional’s services, it’s a good idea to gather the information and documentation you need well in advance of your actual tax filing date. Below, we’ve listed some key information you need when preparing this year’s taxes. Your Personal Information The personal information you may need to file taxes may contain information from your prior year’s return, including: Your Social Security Number (SSN), along with SSNs for your spouse, if applicable, and any dependents Last year’s Adjusted Gross Income (AGI) if you’re e-filing your taxes and need to confirm your identity Any tax filing PIN you may have. Your Income Information Your tax return typically requires documentation for all the taxable income you received the previous year. W-2 forms 1099 forms 1099-MISC for contract employees 1099-K for those who receive payment through a third-party provider like Venmo or Paypal 1099-DIV for investment dividends 1099-INT for investment interest 1099-B for transactions handled by brokers Receipts, pay stubs, or any other documentation on income that isn’t otherwise reflected. Your Deduction Information Next, gather information on deductions that help reduce your overall tax burden. These include, but aren’t necessarily limited to: IRA and other retirement contributions Medical bills Property taxes Mortgage interest Educational expenses like college tuition or student loan payments State and local income taxes or sales taxes Charitable donations Dependent care expenses Classroom expenses (for teachers) There are other state-specific deductions that may apply to your situation. Your Tax Credit Information Credits may further decrease your tax burden. Unlike deductions, which may lower your taxable income, tax credits simply credit you a portion of what you’d otherwise owe. Some available tax credits

With the signing of the Omnibus Appropriations package into law, both employees and employers can take advantage of more than 90 new provisions aimed at creating opportunities to create or modify workplace retirement plans and strategies. What to know about the Secure Act 2.0 that may impact you and your financial and retirement goals? Read below for a helpful overview of important information to know about the SECURE Act 2.0.   Key Points Catch-up contribution changes Enhancement of tax credits for small business Changes to required minimum distributions (RMDs) Student loan payment matching Expansion of auto-enrollment Emergency plan modifications through a 401(k) plan Distribution of excess 529 assets to Roth IRAs Employer contributions to be offered to employees on a Roth basis SIMPLE and SEP contributions to be made on a Roth basis Self-correction and IRA violations without submission to the IRS Benefits for part-time and low to middle-income workers   Catch-up contribution increase and changes for earners over $145,000 Catch-up contributions allow you to put more money in your retirement savings accounts than the amount usually permitted for the year. This may enable people who have delayed saving or, for those who haven’t start yet, to “catch up” in pursuit of their retirement goals. There are two significant changes to the catch-up contributions. First, effective in 2024, all catch-up contributions for individuals earning more than $145,000 per year (indexed) must be made on a Roth, or after tax basis. This does not apply to SIMPLE plans.   Second, beginning Jan. 1, 2025, individuals ages 60-63 will be allowed to make catch-up contributions to their workplace plan of up to $10,000 or 150 percent of the standard catch-up contribution amount

Spring can be a fantastic time to refresh your retirement plan and savings habits. With 2023 bringing increased limits for 401(k)s, individual retirement accounts (IRAs), Health Savings Accounts (HSAs), and other tax-advantaged accounts, it’s worth taking a closer look at your retirement savings. Below, we discuss three ways to refresh your retirement plan this spring.   Maintain Consistent Savings With inflation taking a bite out of just about everyone’s paychecks, it can sometimes be tempting to decrease the amount you’re contributing to retirement just to gain a bit of breathing room. However, maintaining a consistent rate of savings even through lean times can go a long way toward securing your financial future. When it comes to saving for retirement, time is on your side—and the more you can contribute at a younger age, the more time this money will have to grow.   If your savings rate has been at the same level for more than a few years, it may be time to revisit this contribution. You may discover that you can afford to set aside a little more; in other cases, it may make sense to switch from a tax-deferred account to a post-tax account like a Roth 401(k) or Roth IRA.   Review Your Asset Allocation When it comes to investing for retirement through an employer plan, the options available to you may sometimes seem overwhelming. Far beyond mere “stocks vs. bonds,” employees are asked to choose from accounts ranging from growth to stability, domestic to international, and tech to blue chips. For some plans, the default option is to put contributions into a money market account rather than investing them in the stock market.   Does