21 Jul

Damian Sylvia Posted in General No comments

States Are Requiring Retirement Plans

Too many Americans save too little for retirement. This problem has been discussed for decades in all kinds of media, and there seems to be no easy way to solve it.

Fourteen states are giving it a try, however: they have passed or introduced laws requiring or urging companies to provide retirement savings opportunities to employees. In most of these 14 states, employers must either sponsor a retirement plan, or automatically enroll their workers in a state program.¹

28 Jun

Damian Sylvia Posted in Retirement No comments

The Retirement Reality Check

Decades ago, there was a book entitled What They Don’t Teach You at Harvard Business School. Perhaps someday, another book will appear to discuss certain aspects of the retirement experience that go unrecognized – the “fine print”, if you will. Here are some little things that can be frequently overlooked.

24 May

Damian Sylvia Posted in General No comments

Getting (Mentally) Ready to Retire

A successful retirement is not merely measured in financial terms. Even those who retire with small fortunes can face boredom or depression and the fear of drawing down their savings too fast. How can new retirees try to calm these worries?

02 Mar

Damian Sylvia Posted in Life Insurance No comments

Annual Tax Guide – A Guide to 2022 Tax Law Changes (Part 3)

In this 3-part tax guide, we will explore where your tax dollars go, some of the ways tax filing may look different in 2022, and what you can do to prepare. Keep in mind, this guide is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your strategy.

If you missed part 1 (here) or part 2 (here) of this series, check those out first. Part 3 is below.

Preparing (Well-In-Advance) for the Tax Season

Planning well in advance of the tax season may help better prepare you for the unexpected. Here are several reasons to begin planning early:

Your home, job, or relationships changed in 2021
You need to start saving money if you may owe taxes
You want to ensure you qualify for tax deductions

You can make changes throughout the year to ensure that your tax preparations go smoothly.

In particular, you can make periodic assessments of your paycheck withholdings so that you will get a refund or can reduce or eliminate your tax burden.

15 Feb

Damian Sylvia Posted in General No comments

Annual Tax Guide – A Guide to 2022 Tax Law Changes (Part 2)

In this 3-part guide, we will explore where your tax dollars go, some of the ways tax filing may look different in 2022, and what you can do to prepare. Keep in mind, this guide is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your strategy.

Get a checkup: As a starter, the I.R.S. urges taxpayers to conduct paycheck checkups.

The agency provides tools and resources to help you calculate the correct amount to have withdrawn
from your paycheck.

The calculator may help you determine if your employer is withholding adequate amounts from
your paycheck.

The calculator asks for your projected gross income, your current withholding number, the current amount of federal taxes withheld, and other paycheck-related questions.

The calculator leads you through various screens that require you to enter the requested numbers into boxes. The calculator looks similar to a tax-filing form.

The final figure: Once the calculator generates the estimated taxes you can expect to owe or be refunded, it offers suggestions on how to change your withholding amount or request that additional money be withheld from your check.

If the calculator shows you are projected to owe taxes at the end of the year, you may file a new Form W-4, Employee’s Withholding Allowance Certificate, following the guidance provided by the calculator. The IRS-provided calculator is designed to provide feedback based on certain assumptions. It is not intended to provide specific tax, legal, or accounting advice. The calculator is not a replacement for real-life advice,
so please make sure to consult a professional before modifying your tax strategy.⁵

Suggestions may include changing the number of allowances you are claiming or requesting that your employer withhold additional money.

Taxpayers who receive pension income may use Form W-4P.Once completed, send the form to your payer if you are making changes.⁶

09 Feb

Damian Sylvia Posted in General No comments

Annual Tax Guide – A Guide to 2022 Tax Law Changes (Part 1)

Understand Where Your Federal Tax Dollars Go

In this 3-part guide, we will explore where your tax dollars go, some of the ways tax filing may look different in 2022, and what you can do to prepare. Keep in mind, this guide is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your strategy.

Before we dive into the upcoming tax brackets and what you can do to prepare for 2022, it can be helpful to understand precisely where the government allocates your federal tax dollars.

In 2021, the federal government spent $6.82 trillion, which equals 30% of the nation’s gross domestic product. Further examination reveals that three significant areas of spending make up the majority of the budget.¹

27 Jan

Damian Sylvia Posted in General No comments

Fed Gives Clear Signal About Interest Rates

The Federal Reserve met in mid-January, and clarified its position on monetary policy, providing the clearest hint yet about short-term interest rates. The fed hinted that the first interest rate hit could come as soon as March.1 The markets were on edge anticipating the Fed update. But by the end of the meeting, the market […]

11 Nov

Damian Sylvia Posted in Retirement No comments

401(k) Millionaires

Your workplace retirement account can play a critical role in your overall retirement strategy. However, some have gone further with the accounts than others, especially recently.

CNBC reported on findings that place 401(k) accounts at all-time highs, with some even joining the much-desired “two comma club” of 401(k) millionaires. Average 401(k) balances jumped 24% from the previous year to $129,300. Also on the rise were overall contributions, with 12% increasing their contributions since last year and 37% of employers placing new employees into workplace plans. The study discovered a record 412,000 401(k) plans with million-dollar balances; overall Individual Retirement Account (IRA) millionaires reached 342,000, another record.¹

18 Oct

Damian Sylvia Posted in Retirement No comments

The Social Security Administration Announces 2022 COLA

On October 13, 2021, the Social Security Administration (SSA) officially announced that Social Security recipients will receive a 5.9 percent cost-of-living adjustment (COLA) for 2022, the largest increase in four decades. This adjustment will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. Additionally, increased payments to more than […]

14 Jun

Damian Sylvia Posted in Retirement No comments

A COLA with Your Social Security?

If there is a “silver lining” to all the inflation talk, it may be that Social Security benefits are expected to see a larger-than-normal increase in 2022. Preliminary estimates call for a 4.7% cost-of-living increase (COLA) in Social Security benefits next year, which would be the highest since 2009. Benefits rose 1.3% in 2021.1 The […]

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