If youâre a busy small business owner whoâs wondering if itâs OK to use your personal checking account for your business, the answer is yes. Probably. At least for a little while. But you may find there are complications and risks involved if you mix your personal and business funds in one account for very […]
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In 2014, federal legislation paved the way for states to offer ABLE accountsâtax-advantaged plans that allow individuals with disabilities to save for ongoing expenses without threatening their eligibility for crucial government support, such as Supplemental Security Income or Social Security Disability Insurance. Previously, people with disabilities had to have less than $2,000 in total assets to maintain their eligibility for such programs, which made it difficult for them to live independently.Â
As is the case with 529 college-savings accounts, ABLE accounts (the acronym stands for Achieving a Better Life Experience) grow tax-free, and the earnings arenât taxed as long as the money goes toward qualified disability expenses. The maximum annual contribution to an ABLE account rose to $16,000 on January 1. The limit, which is tied to the IRSâs gift tax exclusion, had been capped at $15,000 since 2018.Â
All but four statesâIdaho, North Dakota, South Dakota and Wisconsinâoffer ABLE programs, and if you live in a state that doesnât offer one, you can create an account offered by another state.Â
Anyone with a disability who receives disability-related benefits, such as SSI or SSDI, or who can produce a certification from a doctor that states that their disability is âmarked and severe,â can open an ABLE account, with one major caveat: The individualâs disability must have occurred prior to his or her 26th birthday. Congress is considering legislation that would extend the age of onset from 26 to 46. If enacted, the legislation would likely double the number of people who qualify for an ABLE account, says Mary Morris, chief executive of ABLEnow, an ABLE program offered by Virginia. âIt would hit a really large group of working people with disabilities and those who we think benefit most from an ABLE account,â Morris says.Â
Contributions to an ABLE account can come from anyoneâfriends, family, even strangersâas long as they donât total more than $16,000 in one year. And many states allow residents a state tax deduction for a portion of their contributions to their own stateâs plan, Morris says. Michigan, for example, allows residents who contribute to its ABLE account to deduct up to $5,000 (or $10,000 for a married couple). Minimum contributions to ABLE accounts vary from state to state, but generally theyâre low, ranging from $5 to $50.Â
If you have unused funds in a 529 college-savings account, you can roll over that money to an ABLE account. If you go this route, you can still use the money for college, but you can also use it for qualified ABLE account expenses.
The list of qualified expenses is broad and includes basic living expenses, health and wellness programs, housing, transportation and vehicle expenses, education and training, assistive technology, and even financial management.
People are now saving for homes and small business start-up costsâas well as disability-related expenses, such as an electric-powered wheelchair or scooterââanything that someone wants to, as the name suggests, achieve a better life experience,â says Tom Foley, a financial planner and executive director of the National Disability Institute. Individuals can also use these accounts to build up an emergency savings fund.
In 2022, the old rules of investing have mostly gone out the window, but one thing hasn’t changed: Wall Street’s best value stocks continue to be an attractive place for investors to plunk down their money for the long term.
The S&P 500 is down roughly 10% year-to-date. War continues to rage in Ukraine and disrupt energy markets. And significant changes in interest-rate policy continue to upend investment strategies that have been profitable for several years running.
But that’s the thing about investing. If you want to get ahead, it’s important to think beyond the obvious opportunities and consider a holistic approach that will generate returns even in even challenging environments. That involves looking beyond fashionable growth investments to value stocks that might been roughed up of late but still offer long-term upside.
In hopes of finding the best value stocks for investors right now, we looked for:
A few of these companies have admittedly seen trouble lately, hence their sagging stock prices, but even then, their underlying businesses are sound. And considering the broader challenges to every company on Wall Street, it’s important for investors to focus on high-quality picks over the latest flashy growth narrative, regardless of recent performance.
Here are 15 of the best value stocks to buy now.
Share prices and other market data as of April 25. Analyst ratings courtesy of S&P Global Market Intelligence. Stocks are listed by analysts’ consensus recommendation, from highest score (worst) to lowest (best).
You may have many reasons â or just one important one â to get a personal loan. Our step-by-step guide answers questions about how to get a personal loan.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Start now and save smart to get your down payment.
The post How To Save For a House: 10 Tips To Afford Your Down Payment appeared first on The Rent.com Blog : A Renterâs Guide for Tips & Advice.
For decades, the goal has been to work hard, earn money and then retire! However, in recent years, the traditional retirement model seems to be changing. So whatâs the alternative?
More retirees are deciding to slowly leave the workforce by reducing their hours or finding more fulfilling jobs, even if they pay less. This trend is known as semi-retirement. In a recent survey by Express Employment Professionals, most retirees said they would choose semi-retirement if their employer offered it.
If you feel this lifestyle suits you, there are some steps you can start taking now to ensure youâre ready to transition to a semi-retired life.
Before you consider transitioning to a partially retired life, make sure you have a plan for your finances. Even though you will still be bringing in money each month, make sure to check with your financial adviser to see how much money you have in your retirement accounts and how you can adjust your budget as needed.
If youâve already started taking Social Security before your full retirement age and are still working, you will get a reduction in your benefits if you make more than the exemption amount laid out by the Social Security Administration. In 2022, that amount is $19,560. Fortunately, you will only see this reduction until you reach your full retirement age.
If you havenât started taking Social Security benefits but youâre thinking about it, there are some things youâll want to consider. You can start claiming benefits as early as age 62, but the longer you can afford to wait for those benefits, the larger your payments will be each month. Once you turn 70, those benefits wonât increase anymore, so it doesnât always make sense to wait longer than that.
You will also want to consider your health care costs. If you are eligible for Medicare but decide to stay employed, you can hold off on taking Medicare Part B and D benefits and take advantage of your companyâs health care plan if you work for a company with 20 or more employees. Since Medicare usually covers basic health care needs, using an employer plan could give you some financial support when you are paying for medications, hearing aids, dental care and even long-term care.
If you work for a company with less than 20 employees, you will need to apply for Medicare. In most small businesses, after age 65 your health expenses will be covered by Medicare first and any other employer-based plan second. Generally, your employer-based insurance at a small business may not cover all of your expenses.
There are a number of employment options to consider when planning for semi-retirement. If you want to stay with your company, see if they offer semi-retirement options. You could reduce your hours and stay in your role, or use your knowledge to become a consultant or mentor for up-and-coming employees who could eventually slide into your current role. Not all employers offer this option, so make sure you do your research and talk to your boss.
With so many work-from-home options, you could also find a new job that is less demanding or is a passion project. You could work with your favorite non-profit in a part-time role or get involved with a local university and share your expertise with a new generation of professionals.
If starting a small business has always been your dream, this approach to retirement might be a good option. After breaking away from the 9-to-5 grind, you will have more time and money to turn your hobby into a business. With any new business, be prepared that you may have to spend more hours than you thought to get the business off the ground. Also, consider how much of your retirement funds you can reasonably spend. A financial professional can help you sort out what you need to live on and what you can put toward your new venture.
If you are working in a part-time position during retirement and you arenât bringing in enough income to live on, you may need to withdraw money from your retirement accounts, like a 401(k) or IRA. If you do, you will need to pay taxes on that income as well.
If you start withdrawing from your retirement accounts before age 59½, you will also have to factor a 10% early withdrawal penalty into your budget. Make sure you adjust the hours you are working or the amount you are planning to withdraw to make sure you arenât surprised by your tax situation when itâs time to file.
No matter what you decide to do in your retirement, a financial professional can help you navigate all your options and create a plan that fits your lifestyle. At the end of the day, itâs your retirement, so choose what makes YOU happy!
They say you should never mix business with pleasure â and that applies to bank accounts, too. If youâre a freelancer, small business owner, or entrepreneur, chances are opening a business checking account could be a good move for you. While both business and personal checking accounts allow you to safely store money and utilize […]
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Want to save money for your future? A savings account seems like the obvious choice. But thereâs another option out there called a money market account. Itâs like a hybrid between a savings account and a checking account. If youâve been debating on opening a savings account or money market account, now might be a [â¦]
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.