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Resources

How to Correct an Error on Your Credit Report

According to the Consumer Financial Protection Bureau (CFPB), credit report errors more than doubled during the coronavirus pandemic. In addition, the CFPB found that many pandemic protections which were designed to help consumers, such as loan forbearance periods on federal student loans and federally backed mortgages, ended up negatively impacting their credit reports as a result of complications such as processing delays and suspended payments being marked incorrectly.1 This is a significant issue for many consumers, because credit report…

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Building Blocks for Financing College with Less Debt

Financing a college education with the least amount of debt involves putting together a variety of resources in the most favorable way for your family. It requires planning, savings discipline, an understanding of financial aid, smart college research, and good decision making at college time. Your College Fund Your savings are the cornerstone of any successful college financing plan. It’s helpful to think of your college savings as a down payment on the full cost, similar to a down…

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Are You a HENRY? Consider These Wealth-Building Strategies

HENRY is a catchy acronym for “high earner, not rich yet.” It describes a demographic made up of young and often highly educated professionals with substantial incomes but little or no savings. HENRYs generally have enviable career prospects, but many of them feel financially stretched or may even live paycheck to paycheck for years, especially if they are working in cities with high living costs and/or facing large student loan payments. If this sounds like you, it may be…

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Big Boost for Social Security Payments

The Social Security cost-of-living adjustment (COLA) for 2022 is 5.9%, the largest increase since 1983. The COLA applies to December 2021 benefits, payable in January 2022. The amount is based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from Q3 of the last year a COLA was determined to Q3 of the current year (in this case, Q3 2020 to Q3 2021). Despite these annual adjustments for inflation, a recent study…

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Your Social Security Statement: What’s in It for You?

The Social Security Administration (SSA) provides personalized Social Security Statements to help Americans age 18 and older better understand the benefits that Social Security offers. Your Statement contains a detailed record of your earnings and estimates of retirement, disability, and survivor benefits — information that can help you plan for your financial future. You can view your Social Security Statement online at any time by creating a my Social Security account at the SSA’s website, ssa.gov/myaccount. If you’re not…

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Charitable Giving Can Be a Family Affair

As families grow in size and overall wealth, a desire to “give back” often becomes a priority. Cultivating philanthropic values can help foster responsibility and a sense of purpose among both young and old alike, while providing financial benefits. Charitable donations may be eligible for income tax deductions (if you itemize) and can help reduce capital gains and estate taxes. Here are four ways to incorporate charitable giving into your family’s overall financial plan. Annual Family Giving The holidays…

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401(k) and IRA: A Combined Savings Strategy

Contributing to an employer-sponsored retirement plan or an IRA is a big step on the road to retirement, but contributing to both can significantly boost your retirement assets. A recent study found that, on average, individuals who owned both a 401(k) and an IRA at some point during the six-year period of the study had combined balances about 2.5 times higher than those who owned only a 401(k) or an IRA. And people who owned both types of accounts…

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Two Decades of Inflation

IMPORTANT DISCLOSURES Wellspring Financial Partners, LLC does not provide tax or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances….

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Retirement Plan Limits

IRS Limits on Retirement Benefits and Compensation As published in IRS News Release IR-2021-216, Nov. 4, 2021   2022 2021 2020 401(k), 403(b), 457 Elective Deferral Limit $20,500 $19,500 $19,500 Catch-Up Contribution Limit (age 50 and older) $6,500 $6,500 $6,500 Annual Compensation Limit $305,000 $290,000 $285,000 Defined Contribution Limit $61,000 $58,000 $57,000 Defined Benefit Limit $245,000 $230,000 $230,000 Definition of Highly Compensated Employee $135,000 $130,000 $130,000 Key Employee $200,000 $185,000 $185,000 IRA Contribution Limit $6,000 $6,000 $6,000 IRA Catch-Up…

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SECURE Act 2.0 – Both Houses of Congress are Considering Retirement Reforms That Appear to Have Enough Bipartisan Support to Become Law Before the End of this Year

Bills in both the House and the Senate aim to build on the SECURE Act passed in 2019. This legislation is called Securing a Strong Retirement Act and is nicknamed SECURE Act 2.0. There is enough bipartisan support for some of these measures to become law before the end of this year. A number of these reforms are in the Democrats $3.5 trillion stimulation package. Progressive Democrats are hoping to use the reconciliation process to push through some of…

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