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529 plans are designed for saving for education and are beneficial since contributions accumulate and grow tax-free as long as withdrawals are used for qualified education expenses. But 529 plans may also be part of a wealth transfer strategy. Donors often use 529 plans to give the gift of education, but also because of these additional features: If the Donor owns the 529 plan, they retain control of the assets.The gift removes the assets from the Donor's estate, reducing their estate taxes.

The uncertainty of today's economy, rising interest rates, and market volatility may have you concerned about your 529 plan's performance over the past months. If your child or grandchild has an upcoming tuition bill soon, now may be an appropriate time to review the 529 plan. Here are some tips to help you maintain your 529 plan during periods of uncertainty:1. Check the 529 plan's allocation- About two-thirds of 529 plans are age-based plans, with the remaining one-third of 529 pla

With all of the attention the life insurance industry has been receiving lately, it's easy for policyholders to overlook two important factors: 1) few investments, if any, meet the safety of life insurance and, 2) few investments offer the advantages of tax-free accumulation of cash values and tax-free death benefits. Whether you own a traditional whole life insurance policy, or an interest- or investment-sensitive policy, it is important to have some familiarity with how your policy earning

Small businesses may often find themselves struggling, and there are many situations in which business owners may find themselves weathering a storm and hoping to make it through. While the strength and fortitude of those who run small businesses can be an asset in helping them succeed when times are rough, there are a few strategies that can make survival a little easier. Reduce Costs Strategically When things start to go awry, one of the first things most business owners look for is ways to c

Assessing the context, impact and the future of unprecedented rate hikes   Almost exactly one year ago, on March 16, 2022, the Federal Open Market Committee (FOMC) enacted the first of what would become nine consecutive interest rate increases. This move marked the beginning of an aggressive (and unprecedented) monetary tightening cycle, aimed at combating high inflation and stabilizing the economy. As we pass the one-year anniversary of this significant decision, it's crucial to as

How much do you really know about your employer-sponsored retirement savings plan? Ifyou're like many people, you have many ideas about how your plan works that may or may not be entirely accurate. To gauge your knowledge, take this brief quiz: Are the following statements true or false? Even though I'm young, I should still make saving for retirement a priority. True. Because of the power of compounding, your youth is actually one of the best reasons to start contributing now. Compound

Most people know that once they approach retirement age, their reward for years of work comes from Social Security payments they put money towards during their employment. Deciding when to file for your Social Security payments is likely what you may focus on, but there are some other Social Security benefits you may be missing out on that are worth investigating. 1. Survivor BenefitsTens of thousands of people receive their Social Security benefits each year but fail to claim eligible surv

When people think of “myths,” they often think of such stories as Pandora’s Box (the woman who took the lid off of a jar releasing all of the world’s ills upon the world, were taxes one of them?), or the Tale of Prometheus (who stole fire from his fellow gods to give to humans and was punished by Zeus with eternal suffering). However, money myths have also been circulated with such frequency that many people unknowingly believe them. These myths also tend to restrict peop

The SECURE 2.0 legislation included in the $1.7 trillion appropriations bill passed late last year builds on changes established by the original Setting Every Community Up for Retirement Enhancement Act (SECURE 1.0) enacted in 2019. SECURE 2.0 includes significant changes to the rules that apply to required minimum distributions from IRAs and employer retirement plans. Here's what you need to know. What Are Required Minimum Distributions (RMDs)? Required minimum distributions, sometimes ref

One of the more important—and hopefully enjoyable—events you will face in life is retirement. After spending many years building your career, you have likely accumulated a comfortable nest egg. If you have reached a point where retirement is the next big step, you need to develop a strategy that will help you cross the bridge from the world of work to the world of leisure. While most retirement planning discussions focus on the financial aspects of securing a comfortable retirem

Thoughts from a financial professional   When helping people get ready for retirement, financial professionals find the same issues come up over and over. Thinking ahead can spell the difference between a retirement with enough money and a stressful one with difficult decisions that you don’t want to make. Here are 7 retirement considerations that every investor should think about: 1. Understand Social Security. The goal with Social Security is not to get the most you can from the go

What is your credit report? Your credit report is your credit history, as recorded in a file maintained and sold by consumer reporting agencies commonly known as credit bureaus. If you've ever applied for a credit card, personal loan, car loan, or mortgage, you have a credit report. Your credit report contains information about your income, debts, and credit payment history. It also includes information about whether you have been sued, arrested, or filed for bankruptcy. While your credit r

It will take some time, but the FDIC was designed for moments like this   The FDIC-seizure of Silicon Valley Bank is the second-largest US bank failure in history as it held $209 billion in assets at the time of its collapse. Even after adjusting for inflation, by assets it trails only Washington Mutual, which held $434 billion in assets when it failed in 2008. The Silicon Valley Bank failure rocked the tech industry and sent tremors throughout Wall Street as it largely serves start-ups

As Samuel Goldwyn once said, "The harder I work…the luckier I get!" 1 But when it comes to investing, luck may play a huge role in outcomes—no matter how hard you work.2 Below, we discuss some ways that luck may impact your investing, as well as some steps you may wish to take to try to make your own good luck this St. Patrick's Day. The Impact of Luck on Investment Returns One reason so many financial professionals advise against market timing for long-term

In 2021, women-led companies only received 2% of all venture capital funding, a figure considered the lowest percentage in more than five years.1  Data shows this figure does not necessarily reflect the potential success of female-owned businesses, but possibly more of a reluctance for male investors or male-led funds to green-light these projects. The reasons could include tradition, fear, or even institutional biases that venture capitalists may not even be aware of. But by declining

There are many reasons why people save money. For some, it is so they can enjoy a certain amount of financial confidence and freedom, while others squirrel away money for emergencies or future plans like the down payment for a home, college tuition, or a child’s wedding. Saving money also has the potential to alleviate a certain amount of stress that comes with paying off or avoiding debt, meeting bill payments on time, taking vacations, purchasing birthday gifts, and more. Unfortunat

 Today, many people are concerned about saving for retirement or paying for a large ticket item, such as a child’s college education. If you belong to this group, now may be the time to organize your finances. It is never too early to begin, and the sooner you start, the better. Consider the following steps to building a strong financial foundation:  Get organized. Smart money management begins with organizing your financial paperwork. By grouping documents according to categorie

Valentine's Day is one of the biggest holidays for romance and for lavishing gifts on that special someone in your life. While flowers and chocolates may be the most common gifts exchanged on that day, why not consider a gift that may grow in value year after year? Then you would truly be giving the gift that keeps on giving. Want to learn about some value-gaining gifts for your loved ones? Check out some of the ideas listed below. 1. Treasury Bonds Treasury bonds are one reliable gift tha

For many, spending more quality time with loved ones and friends is a New Year’s resolution or work-life balance goal. But for investors who are accustomed to keeping a close eye on their assets' performance, balancing one's "to do" list with one's "want to do" list may be tricky. Below, we discuss three time management tips investors may employ to free up some extra time for what matters most. Why Time Management Matters Adopting time management skills may

Understanding the importance of life insurance is one thing. Understanding the tax rules is quite another. As insurance products have evolved and become more sophisticated, the line separating insurance vehicles from investment vehicles has grown blurry. To differentiate between the two, a mix of complex rules and exceptions now governs the taxation of insurance products. If you have neither the time nor the inclination to decipher the IRS regulations, here are some life insurance tax tips and b

Financial stress can have a direct negative impact on a person's health and happiness. Unfortunately, this may lead to a downward spiral. The more stress you're feeling, the larger your financial hurdles may seem, and the more you may rely on unhealthy stress-reducing habits. Fortunately, there are steps you may be able to take to improve your financial situation and help manage money-related stress. Below are five habits you may wish to adopt to work toward financial wellness. Set

Tax preparation tools and products continue to evolve even more quickly than the federal tax code itself. Which tax prep tools are worth the hype, and which may be passed over? Below we discuss five high-tech tools to help make tax time as simple and streamlined as possible. Receipt-Organizing Apps If you're deciding whether it makes more sense to itemize your deductions, it may be time-intensive to track down all the receipts needed to determine which option is preferable. Receipt-organizi

Financial wellness is the ability to have a healthy financial life and feel good about your financial situation. Financial wellness doesn't have just one meaning because it can mean something different to each person. Financial wellness is a broad term that encompasses these key areas: Taking control of your money before it controls you.Determining how safe your money is.Planning what to do with your money. Financial wellness has become one of the top concerns for many people, especially

When you own a business, you get to deduct business expenses from your business income. This general rule applies, subject to certain limitations, whether you are a sole proprietor with employees or a self-employed freelancer working in the gig economy. The Internal Revenue Service (IRS) allows you to claim tax deductions for expenses that are necessary and ordinary for your business. While many of these tax deductions are obvious, others are more obscure. Here are five commonly overlooked

Tax season arrives each year, rain or shine, and for many people, the idea of having to do their taxes can feel somewhat overwhelming. However, in today’s world, with advances in technology and the advent of the “app,” it is becoming easier than ever before to complete complicated tasks like filing taxes and checking for tax deductions and available credits. According to data put out by the Internal Revenue Service (IRS), the average refund for tax returns in 2022 was arou

Just what you need, right? One more time-consuming task to be taken care of between now and the end of the year. But taking a little time out from the holiday chores to make some strategic saving and investing decisions before December 31 can affect not only your long-term ability to meet your financial goals but also the amount of taxes you'll owe next April. Look at the forest, not just the trees The first step in your year-end investment planning process should be a review of your overal

LPL Financial Research Outlook 2023: Finding BalanceThrough all the challenges, newfound opportunities, and every high and low we’ve experienced during the last couple of years, it’s no surprise why we might be striving for more balance. Whether it’s about the markets and global economy or what’s happening in our local communities, the news we’re hearing on a daily basis has the potential to disrupt the balance of our lives. But with resilience, perspective, and the

With the holiday season just around the corner, you may be ready to get a jump on your holiday shopping. Unfortunately, for many, holiday shopping easily gets out of control. When you are in the giving spirit, you may find yourself racking up debt rather quickly. When this happens, you are then left to deal with eliminating that debt and often paying interest. So why not tackle this holiday season shopping without the added debt? Check out a few tips below to help you stay on the path towar

The 12 Days of Year-End Planning: Things to Consider Going into “The New Year" (Year-End Planning Checklist) At the end of the year, it is necessary to reflect on your financial picture, review the last 12 months, and plan for the future. With all that is involved, it can seem overwhelming. Consider breaking up the responsibilities over twelve days, focusing on one each day, and ensuring it gets a comprehensive review.

5 Do’s and Don'ts for Charitable Giving During the Holidays The fourth quarter holidays are often seen as one of the prime times to take out your checkbook — not only do many charities put in extra efforts helping others this time of year, but donating is also a smart financial move. Giving to a charity before the end of the year can help reduce your tax burden when April 15 rolls around. Here are five crucial do’s and don'ts when it comes to charitable giving.