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Tag: savings

What the new tax law means for your college savings plan

What the new tax law means for your college savings plan

Finance
Your trusty college savings plan is no longer just for higher-education costs, thanks to the new tax law. Whether you have young children or grandchildren, you're probably aware of the rising cost of higher education: The average annual cost of tuition, fees and room and board at a four-year private college rose 3.5 percent, to $ 46,950, for the 2017—2018 school year, according to data from the College Board. That figure hit $ 20,770 for in-state tuition at a four-year public institution, the College Board found. Families can save for those expe...
Teenagers risk missing out on savings pots

Teenagers risk missing out on savings pots

Business
Anyone turning 16 from now can start managing their Child Trust Funds for the first time - although some may be unaware that they have these savings.These funds were set up by the Labour government in 2005 to encourage parents to save for their children and to promote financial awareness.They began with an automatic contribution from the government.Campaigners worry that hundreds of thousands remain unaware of the money, which would total hundreds of pounds. Why are so many of us not saving for a rainy day? Young workers 'aware of pension reality' Initially, the government provided a £250 voucher in the child's first year and the same amount again when they reached the age of seven, to be invested in cash or stocks and shares on the child's behalf u...
Don't let these funds undermine your 401(k) savings

Don't let these funds undermine your 401(k) savings

Finance
If you're choosing among the retirement funds on your 401(k) menu, you may have noticed something called a target-date fund on the list. Target-date funds typically consist of a mix of stocks, bonds and other investments that determine their risk based on when you want to retire. The funds are a popular choice among workers. Fifty-nine percent who have access to a 401(k) or other employer-sponsored plan said they use an automatic allocation strategy to save, according to research released in June by the Transamerica Center for Retirement Studies. In contrast, 43 percent use a do-it-yourself approach. ...
Two unexpected ways the new alimony tax rules affect your retirement savings

Two unexpected ways the new alimony tax rules affect your retirement savings

Finance
Alimony payments will fall under new tax rules starting in 2019. That could mean big changes for your retirement accounts. It's all a part of the Tax Cuts and Jobs Act that was ushered in by Congress late last year. Under the new regulations, the individual who pays alimony to an ex-spouse will no longer be able to deduct those payments. And the recipient of the money will no longer pay taxes on that income. The law applies to divorce agreements that are formed after the New Year. "If you wer...