In 2021, 44.7 million Americans are facing the burden of student loan debt. They owe more than $1.53 trillion in student loans. These alarming statistics prove the importance of saving for higher education. In the past, many parents prioritized saving for their child’s college or trade school. However, today students are taking steps to cover the cost of their own higher education and keep their student loan debt to a minimum.   Benefits of Saving for College or Trade School When students make an effort to save for their education after high school, they get a head start on life with minimal debt. Instead of spending years trying to pay off their student loans, they can focus on other financial goals such as buying a house or saving for retirement. Saving for college or trade school may also motivate students to choose a major that provides job opportunities and encourages them to complete their degree.   How Students Can Save for Higher Education There are a number high school or college-aged students can save for higher education: Apply for Scholarships: Scholarships provide money for college that students don’t have to repay. If they’ve excelled in academics, athletics, or extracurricular activities, it may be in their best interest to apply for scholarships. Even small scholarships can help save hundreds or thousands of dollars on the overall cost of secondary education. Enroll in AP Classes: A high school student can earn college credits by taking Advanced Placement or AP classes in high school. The fewer credits they need to complete their degree while in college, the more money they’ll save. Work: While balancing classes, homework, and studying while working can be difficult,

For kids, teens, and college students, summer break often represents freedom from schedules, responsibilities, and all those other drains on your time. Retirement actually can provide a similar level of freedom, but only if you’ve adequately prepared, planned, and saved. Below, we discuss three ways that planning ahead for your retirement can be like scheduling your summer. Deciding What to Do After spending decades at a 9-to-5, you may struggle to find ways to fill your time after retirement. Just like summer break, a couple of weeks of well-deserved decompression may turn into boredom. It’s important to have a plan to transition into retirement. Whether this means having a list of vacation destinations, a hobby to turn to, or an organization to volunteer with, giving yourself some options can help you remain active and engaged instead of simply vegetating. Deciding Where to Go Many new retirees spend a lot of time traveling now that they no longer need to worry about coming back to a pile of work or rationing a limited number of vacation days. As you spend time traveling during your working years, take note of the destinations you’d like to return to. Planning for retirement in general can look a lot like planning a vacation: you’ll need a budget, a destination, a timeline, and a Plan B. More than just longer vacations, retirement may also mean traveling to a new home – whether downsizing, moving closer to family, or even heading to a senior living community. When considering next steps, especially if debating an interstate move, take into account factors like: The way your state treats and taxes retirement income Whether the setup of your home allows

What is it? Life insurance is not only about protecting your survivors in the event of your death. Depending upon the type of policy you purchase, it can also enable you to meet specific life goals: retiring comfortably, paying for your child’s education, accumulating wealth, and paying for estate costs. If you own a business, life insurance can even fund the purchase of your business interest when you die or decide to sell your business. In addition, life insurance can provide you with certain tax benefits. The following life insurance-related strategies may help you to achieve your various investment objectives. Buy term and invest the difference Individuals who buy cash value life insurance typically do so because it offers them a chance to accrue savings and protect loved ones simultaneously. On the downside, however, cash value life insurance involves higher premiums than term life insurance and may afford you little (or no) opportunity to manage and control your investment. Depending upon your financial situation and goals, it may be best to buy term life insurance and invest the difference between the term insurance premium and the cash value premium in an investment of your own choosing. Although a certain amount of risk will be involved, it may be possible for you to obtain higher returns on your own, as insurance companies tend to invest quite conservatively. In terms of risk, be aware that many investors who intend to invest the difference end up spending the difference. Also, term insurance does not last indefinitely. When your term is up, your premium to renew may skyrocket, or perhaps you may not even qualify to renew or replace the policy. Use cash value

Whether you are an employee in corporate America or a small business owner, retirement is a part of life. For many, the thought of retiring and whether or not you are ready to take those first steps might be overwhelming or intimidating. Ancient philosopher Lao Tzu once said, “The journey of a thousand miles begins with one step.” [i] Here is a 6 question checklist for small business owners to ask themselves to determine if they are ready for retirement.   ☐  Have I decided on a retirement timeline? Most people don’t wake up one day and decide that they will retire tomorrow. It is a decision that requires years of preparation. Knowing when you want to retire is the first step toward pursuing this goal.   ☐  Do I have enough money set aside to maintain my quality of life after retirement? This might seem like a no-brainer when it comes to retirement, but many small business owners wonder if they will have enough to comfortably retire. Experts suggest that upon retirement, you want to have at least 10 times your annual salary in savings. Here are a few more questions to consider in preparation for retirement: [ii] Are your debts paid off? Will you be able to pay your retirement expenses (both entertainment and bills) long-term without having to eventually depend on social security? Will the 4 percent rule be an approach that is feasible for you? (The 4 percent rule refers to being able to live off of 4 percent of your invested money in the first year of retirement, then increase or decrease the amount to account for inflation in subsequent years). [iii]   ☐  Is

Once you are in your 60s, you are likely to focus less on growing your retirement funds than answering, “When do I retire?” And once you crack open your nest egg, how should you allocate its contents? The answer often lies in a substantial shift in your investment strategy. Here are some ideas for investing in your 60s and beyond.   Preliminary Questions Before you settle on a plan, you need to be able to answer a few questions. These include: How long do you need your savings to last, and how long are you likely to live? How many years might you be in retirement? What are your expected annual expenses in retirement? What is your non-invested income, such as pensions, Social Security, and annuity payments? By having an idea of how much you need in retirement and how much income you may expect to receive outside of your investments, you then calculate how much you need to withdraw from your retirement funds.   Allocating Your Retirement Assets Everyone’s safety threshold is different—but most people appreciate having a balanced portfolio of CDs and high-yield savings accounts with stock holdings. However, a too-conservative portfolio may not earn enough to outpace inflation, while a too-aggressive portfolio might leave you vulnerable to sudden market drops. There are a few different ways to approach this. One of the most popular ones is the “glide path” strategy.1 Subtract your age from 100, and that is the proportion of assets you should have in stocks. So, for example, a 40-year-old would want at least 60% of their portfolio in stocks; a 70-year-old would want no more than 30% of their portfolio in stocks. The remainder

529 plans can be powerful college savings tools, but you need to understand how your plan works before you can take full advantage of it. Among other things, this means becoming familiar with the finer points of contributions and withdrawals. How much can you contribute? To qualify as a 529 plan under federal rules, a state program must not accept contributions in excess of the anticipated cost of a beneficiary’s qualified education expenses. At one time, this meant five years of tuition, fees, and room and board at the costliest college under the plan, pursuant to the federal government’s “safe harbor” guideline. Now, however, states are interpreting this guideline more broadly, revising their limits to reflect the cost of attending the most expensive schools in the country and including the cost of graduate school. As a result, most states have contribution limits of $350,000 and up (and most states will raise their limits each year to keep up with rising college costs). A state’s limit will apply to either kind of 529 plan: savings plan or prepaid tuition plan. For a prepaid tuition plan, the state’s limit is a limit on the total contributions. For example, if the state’s limit is $300,000, you can’t contribute more than $300,000. On the other hand, a savings plan limits the value of the account for a beneficiary. When the value of the account (including contributions and investment earnings) reaches the state’s limit, no more contributions will be accepted. For example, if the state’s limit is $400,000 and you contribute $325,000 and the account has $75,000 of earnings, you won’t be able to contribute any more — the total value of the account has

Targeted scams have become even more popular with the amount of personal information readily available on the internet. Social Security recipients are, unfortunately, targeted by some of the most sophisticated scam artists out there. From phone scams to phishing attempts and intercepted deposits, here are three common Social Security scams and how you might avoid being fooled by them. Phony Phone Calls Generally, the Social Security Administration (SSA) communicates with you over the phone only if you request a call. You are unlikely to get a call from the SSA at random. Be immediately suspicious of anyone who calls you and claims to have information about your Social Security benefits. Moreover, the SSA will never require you to make payments with a gift card, wire transfer, prepaid debit card, cryptocurrency or by mailing cash. Scam artists love receiving these payments because they are more difficult to trace. Money sent in these ways may be almost impossible for you to recover. Phishing Emails or Texts Scam artists use a technique called phishing. A phishing attempt may send you a text or email message that appears to come from the SSA and coerces you into providing personal information. Once you provide some personal information or click on an unsafe link, the phishers may gain access to your bank accounts, email or social media accounts. Gaining access to social media accounts, in particular, may allow the phisher to lock down these accounts and demand a ransom in return for unlocking them. Direct Mail Fraud Although most Social Security scams have moved online, direct mail scams continue in some areas. These scams involve letters or pamphlets sent to Social Security recipients, offering an extra

Planning for retirement is exciting, but it may come with a bit of stress. If you worked hard all your life, now might be the time to relax and enjoy the fruits of your labor. One of the things that you may need to consider is when it is time to begin claiming your Social Security benefits. If you are unsure when to start your claim, here are a few questions that may help you determine if it is time to make a claim or if you should delay a little longer.   When Are You Considered Full Retirement Age? The first question to ask is what is considered your full retirement age. Once you are at your full retirement age, you are entitled to your full monthly Social Security benefit. The full retirement age depends on the year you were born. Those born in 1958 are at full retirement age at 66 and eight months. Those born in 1959 are at full retirement age at 66 and 10 months. Those born after 1960 come to full retirement age at 67.2 years old.   How Much Money Do You Have in Your Retirement Savings? You will want to consider the monthly income you get from your retirement savings. Determine how much annual income you need for your monthly obligations. Then see how much money you need to withdraw from your savings each year. If there is a shortfall, you may want to claim your Social Security when you are eligible. If you have enough annual income from savings for your needs, you may want to wait on your claim to get a higher monthly benefit.1   Are You Dealing With

Could you be losing money because of simple monetary mistakes? Avoid these money-wasting habits in 2023 to have more cash when you need it—or save it for a rainy day.   Failing to budget Conventional wisdom says to follow the 50/30/20 rule, meaning you should put no more than 50 percent of your income toward necessities like food and housing, only use about 30 percent for arbitrary spending, and then reserve about 20 percent for savings. You won’t know whether you are meeting these goals, however, if you don’t create a detailed budget. Start by carefully noting what you spend each week for about a month, eliminating any unnecessary expenses. Then create a budget for yourself to ensure you’re sticking to these reductions. If you can decrease your regular spending, you may find that when the next new year arrives, you’ll have more funds for important things like retirement or a down payment on a house. Running up your credit cards A common mistake people make is using their credit card for extras like dinners out or shopping trips and then not paying it off right away, thus incurring extra interest charges. This year, try to avoid accruing excessive credit card debt by never charging more than what you can pay back right away. You should also check the balance on your credit card weekly to make sure it’s not getting to be more than you can handle. Not having an emergency fund There are times in life when things go wrong—like when you get a flat tire or your pipes spring a leak. Even a small emergency can result in a financial catastrophe if you don’t have money set

Increasing your financial literacy may allow you to make better decisions about your money and your financial future. Many great resources are available to get you started on the path to financial literacy and to expand your current knowledge. Here are five tools to consider.   Financial Guide Books There is a wide variety of financial books published. That means that no matter your income level, current financial situation, or future financial goals, you might find a book to address your needs. For many people, books are an excellent resource option as you learn the information at your own pace and at a convenient time. Start by determining a topic you want to focus on and then narrow down your search to books that engage you and are easy to understand.1   Financial Magazine Subscriptions Magazine subscriptions are the perfect way to stay up-to-date on the latest financial insights, tips, and news. Also, receiving your magazine every month might prompt you to take the time to give your finances the once over and see what needs to be improved and what information you still need to learn.1   Local Community Events Explore some of the local and virtual financial events available in your area. Check with your local libraries or financial professionals to determine when events and seminars may occur. These events may provide you with valuable information and might have a question-and-answer session where you may ask specific financial questions.2   Financial Podcasts Listening to a podcast may help you improve your financial literacy without wasting your free time if you have a long commute or enjoy jogging or walking. Podcasts provide information that is easy to consume and