We all have our own unique way of handling our finances. While some of us are natural born savers, others may have a hard time making it to the next paycheck. Fortunately, most of us fall somewhere in-between, putting away money at times, while making frivolous purchases at other times.
If you’re expecting a bonus check from your employer this year, you may be tempted to blow it all on the latest iPhone or a bigger TV. But before you decide to splurge, first take a look at your overall financial picture to make sure you’re taking the best advantage of that extra cash:
The vast majority of Americans, 78 percent, say they’re “extremely” or “somewhat” concerned about not having enough money for retirement, according to Northwestern Mutual’s 2018 Planning & Progress Study. And for good reason:
Even though tax filing season is well under way, there's still time to make a regular IRA contribution for 2018. You have until your tax return due date (not including extensions) to contribute up to $5,500 for 2018 ($6,500 if you were age 50 or older on December 31, 2018).
There are a number of ways an individual can avoid the 10% early withdrawal penalty from their IRA or employer work plan. Some exceptions apply specifically to IRAs (i.e. higher education; first-time home buyer, etc.) and others pertain only to company plans (for example, the age-55 exception and qualified domestic relations orders, among others).
Teachers are on the front lines of our children’s futures, so it’s unsettling to see evidence that their own future is increasingly at risk.
In schools across the country, there are countless teachers working through their lunch breaks trying to keep up with the demands of the day. But what many don’t know is that in the time it takes to eat lunch, they could conduct a retirement savings review with a financial professional.
The window of opportunity for many tax-saving moves closes on December 31, so it's important to evaluate your tax situation now, while there's still time to affect your bottom line for the 2018 tax year.
Timing is everything
Retirement can sneak up on you.
Life is full of uncertainty and the best laid financial plans must account for the unexpected.