Currently, 34 states do offer tax deductions for 529 contributions in state plans. Only six states offer taxpayers a deduction for contributions to any state’s 529 plan: Arizona, Kansas, Minnesota, Missouri, Montana, and Pennsylvania. Maine doesn’t currently offer any special state deductions, but it does have its own state-offered plan, NextGen. NextGen With NextGen, parents, grandparents, and even family friends can contribute to an account with earnings that grow tax-free....

While many employees contribute to a 401(k) retirement plan through their workplace, others use a 403(b) or a 457 plan instead, though they work very similarly. Here are seven essential best practices to make sure you get the most out of participation in a retirement plan at work. Save as Much as Possible Today It is often wise to go beyond the default savings rates that many plans automatically use to enroll new hires....

Set Clear Financial Goals If you don’t have a set destination to work towards it can be hard to find the passion or drive to save. Whether it’s a house you’ve been eyeing or your retirement, carefully defining these goals and figuring out how much you’ll need to save can help you craft a plan for getting there. As you establish financial goals, consider making them S.M.A.R.T.—specific, measurable, actionable, realistic and time-bound....

It all starts with understanding how the stock market works, what your investment goals are, and whether you can handle a lot or just a little bit of risk. What Are Stocks? Stocks are equity investments that represent legal ownership in a company. You become part owner of the company when you purchase shares. Corporations issue stock to raise money, and it comes in two variations: common or preferred. Common stock entitles the stockholder to a proportionate share of a company’s profits or losses, while preferred stock comes with a predetermined dividend payment....

Learn about a few of the most important deductions specifically for home businesses and how to claim them. When You Can Claim Home Office Deductions One of the most significant deductions unique to home businesses is for the cost of the rent or mortgage in proportion to the area in your home where you work. You can qualify to claim this home business space deduction if you meet the Internal Revenue Service (IRS) requirements that the space must be used regularly and exclusively for business purposes....

“The labor market remains in excellent shape as the spring quarter begins,” PNC Senior Economic Advisor Stuart Hoffman wrote in a commentary. “Firms are competing for workers and bidding up wages.” The job market is so good, in fact, that it might look a little too good to people at the Federal Reserve, economists said. Fed officials have worried about a “wage price spiral” taking hold, in which employers raise pay to attract scarce workers, then raise prices of goods and services to pay for the wage increases, driving inflation higher....

The bank reserve ratio is often used as a monetary policy tool since the regulations adjust the available funds that banks have to make loans. Reserve requirements are also designed to help shield the banking system from sudden drops in liquidity that can result from a number of financial crises. While some countries, like the U.K. and Australia, have no reserve requirements, others—like Brazil—have 20% reserve requirements, while Lebanon has 30% reserve requirements for its banking system....

Income-Expense Approach Much has been written about the 50/30/20 budgeting method, which was proposed by Senator Elizabeth Warren and her daughter, Amelia Warren Tyagi. It says that people should devote 50% of their income to needs, 30% to wants, and 20% to savings and debt reduction. This budgeting method starts by looking at your income and using it to decide how you’re going to spend money. Most other budgeting methods, like You Need a Budget or Dave Ramsey’s EveryDollar, also use your income to determine your budget....

Here’s what you need to know about RMDs. Why Do Required Minimum Distributions Exist? Investment gains within a retirement account aren’t taxed until they’re withdrawn. If you have other sources of income, and if RMDs didn’t exist, you could hypothetically live off your other sources of income and never pay taxes on the retirement account gains; they could potentially be passed onto family or friends as an inheritance without creating a taxable scenario....

The Timothy Plan values life, stewardship, liberty, purity, longevity, family, sobriety, and marriage. As an investment firm, its main goals include defunding Planned Parenthood and preventing stem-cell research. It also claims to stand against addiction, pornography, and human trafficking. The Timothy Plan filters publicly traded companies through its moral screening eVALUEator tool. It has identified 1,260 companies that fail the moral screening based on its values. Learn more about what the Timothy Plan is and how it works....

What Is the American Airlines AAdvantage Program? AAdvantage is the frequent-flyer program for American Airlines. Members earn AAdvantage miles for each dollar spent on airline purchases, and those miles can be used to book flights, other travel reservations, and more. American Airlines is one of the largest commercial airlines, operating about 6,700 daily flights to 350 destinations in 50 countries with its regional partner airline, American Eagle. How Can You Enroll in the American Airlines AAdvantage Program?...

Before comparing annuities with mutual funds, let’s cover the basics of how each category works. Annuity Basics The first distinction to make is that there are two primary types of annuities: fixed annuities and variable annuities. A fixed annuity works similarly to a bond, which means that there is a fixed interest rate paid to the investor for a specified period. Variable annuities have sub-accounts that are typically like mutual funds....

According to a new peer-reviewed paper by researchers at the University of Missouri and Indiana University, the more companies lie on their financial statements, the higher the chance the economy is headed for a recession in the next five to eight quarters. The new measure could help economists more accurately predict whether a major economic setback is ahead. While many experts currently foresee the economy entering a mild recession next year as a result of the Federal Reserve’s anti-inflation interest rate hikes, forecasts vary widely about whether we’ll get one and how bad it will be....

Are Private Student Loans Eligible for Forgiveness? In general, no. On Wednesday, Aug. 24, 2022, President Joe Biden announced federal student loan forgiveness of $10,000 per eligible borrower and $20,000 for Pell Grant recipients. This cancellation of debt applies to student loans like direct loans—rather than debt owed to private lenders such as Sallie Mae. The vast majority of all student loan debt, 92%, is federal—that is, owed to or backed by the federal government....

Klaus Vedfelt / Stone / Getty Images One thing that generally is not a factor in your credit score is your age. With few exceptions, lenders aren’t able to use your age to determine your creditworthiness, and it is never acceptable for a scoring system to negatively impact someone’s score because they are 62 or older. However, there definitely is a correlation between age and credit scores. Research shows that credit scores typically rise with age, but that likely is because of the way scores are calculated....

There are some reasons the Internal Revenue Service lets you withdraw from your IRA early without paying taxes. Learn more about these reasons and why it’s best to try to find other funds before taking any out of your IRA. Reasons for Early Withdrawal The best course of action is to let your IRA grow as long as you can. The 10% tax on early withdrawals keeps people from taking money out of these accounts for short-term or non-emergency needs....

When considering a certificate of deposit (CD) as a savings method, it’s important to understand the difference between traditional bank vs. brokered CDs. Learn more about each type, as well as the advantages and disadvantages. What Is a Bank CD? Bank CDs are long-term savings instruments that are offered directly by various banks and credit unions. These banks take in deposits via CDs with the intention of loaning these funds out....

Both types of institutions allow you to safely deposit or borrow money for a range of uses, but there are differences between the two when it comes to how you want to handle your money. What’s the Difference Between Banks and Credit Unions? Banks are for-profit organizations owned and run by shareholders. These investors might be thousands of anonymous stockholders or just a few large investors, depending on the bank....

A modern way of bartering involves, of course, the internet and organizations that manage and control bartering between businesses and individuals. These systems are called barter exchanges. How Big Is the Barter Economy? The International Reciprocal Trade Association (IRTA) says it’s difficult to tell because most barter transactions don’t get recorded. But the IRTA says barter is in the 12 to 14 billion dollar range. About half of this amount comes from traditional retail barter exchange companies and corporate barter....

The good news is there are pleasant places to live across the United States that you can afford even if you don’t have a lot of money saved to retire. Whether you prefer rural, urban, year-round warmth, or a taste of all four seasons, a few cities are so affordable to live in that you might even be able to get by on just your Social Security benefits. How Much Social Security Can You Expect?...