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Signs of a Scam and How to Resist It

Although scammers often target older people, younger people who encounter scams are more likely to lose money to fraud, perhaps because they have less financial experience. When older people do fall for a scam, however, they tend to have higher losses.1 Regardless of your age or financial knowledge, you can be certain that criminals are hatching schemes to separate you from your money — and you should be especially vigilant in cyberspace. In a financial industry study, people who…

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Child Tax Credit for 2021: Will You Get More?

If you have qualifying children under the age of 18, you may be able to claim a child tax credit. (You may also be able to claim a partial credit for certain other dependents who are not qualifying children.) The American Rescue Plan Act of 2021 makes substantial, temporary improvements to the child tax credit for 2021, which may increase the amount you might receive. Ages of Qualifying Children The legislation makes 17-year-olds eligible as qualifying children in 2021….

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What’s New in the College World?

If you’re the parent or grandparent of a current or prospective college student, you might be interested to learn what’s new in the world of higher education. Higher college costs For the 2018-2019 school year, average costs for tuition, fees, room, and board were: $21,370 at public colleges (in-state) $37,430 at public colleges (out-of-state) $48,510 at private colleges The following table shows the average annual percent increase for tuition, fees, room, and board since 2015.1 Despite steady cuts to…

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Why is it important to factor inflation into retirement planning?

Inflation is one of the key factors you will need to consider when planning for retirement. Not only will the cost of living rise while you’re accumulating assets for retirement, but it will continue to rise during your retirement, which could last 25 years or longer. This, combined with the fact that you will not likely earn a paycheck during retirement, is the main reason your portfolio needs to maintain at least some growth potential for the duration of…

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What can I learn from looking back on my financial situation in 2017?

What can I learn from looking back on my financial situation in 2017? If your financial plan for 2017 didn’t work out the way you wanted it to, don’t beat yourself up. Instead, ask yourself the following questions to determine what you can learn from reflecting on your financial situation in the last year. Did you meet your financial goals and expectations for 2017? Perhaps you started the year with some financial goals in mind. You wanted to establish…

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Converting Retirement Savings to Retirement Income

You’ve been saving diligently for years, and now it’s time to think about how to convert the money in your traditional 401(k)s (or similar workplace savings plans) into retirement income. But hold on, not so fast. You may need to take a few steps first. Evaluate your needs If you haven’t done so, estimate how much income you’ll need to meet your desired lifestyle in retirement. Conventional wisdom says to plan on needing 70% to 100% of your annual…

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Grandparents Can Help Bridge the College Cost Gap

For many families, a college education is a significant financial burden that is increasingly hard to meet with savings, current income, and a manageable amount of loans. For some, the ace in the hole might be grandparents, whose added funds can help bridge the gap. If you’re a grandparent who would like to help fund your grandchild’s college education, here are some strategies. 529 college savings plan A 529 college savings plan is one of the best vehicles for…

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Key Retirement and Tax Numbers for 2017

Every year, the Internal Revenue Service announces cost-of-living adjustments that affect key tax numbers including contribution limits for retirement plans, thresholds for deductions and credits, and standard deduction and personal exemption amounts. Here are a few of the key adjustments for 2017. Retirement plans Employees who participate in 401(k), 403(b), and most 457 plans can defer up to $18,000 in compensation in 2017 (the same as in 2016); employees age 50 and older can defer up to an additional…

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