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Important IRS Update: Significant Interest Penalty Increase for Tax Underpayments
The Internal Revenue Service (IRS) has recently announced a critical change that could significantly impact taxpayers who underpay their taxes. This update is particularly relevant as we approach the next tax filing season. Previously, the IRS charged a 3% interest penalty on estimated tax underpayments. However, this rate has now been increased to a substantial
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Will Inflation Hurt Stock Returns? Not Necessarily
Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks. A look at equity performance in the past three decades does not show any reliable connection between periods of high (or low) inflation and US stock returns. Since 1993, one-year returns on
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Maximize Your Charitable Impact with These Four Strategies
As the year draws to a close, it’s a perfect opportunity to rethink how you give to charity. This is important for managing how much tax you pay and how much help reaches those in need. Here are four effective strategies: Need Guidance? Reach Out to Us! These strategies are just a starting point. There
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Lack of Financial Literacy Costs Many Americans
Being financially literate has many positive benefits for your life. Understanding how finances works can set you up for success, but can also support your loved ones well into the future with things like gifting and estate planning. A recent study found that financial literacy cost 15% of US adults, a minimum of $10,000 in 2022. The research was gathered and reported by the National Financial Educators Council and shows that nearly 40% of adults say that their financial literacy costs them at least $500. That’s an increase from 2021 numbers. The average cost that an American loss due to lack of financial understanding was $1,819.
The survey was conducted with 3000 adults all over the nation between October and December. Financial literacy refers to many different money related topics like saving, income, budgeting, investing, and understanding how things like credit scores and interest rates work.
Other studies have attempted to learn more about just how much Americans know about their finances. A TIAA Institute GFLEC Personal Finance Index is a test used to determine basic financial literacy, and adults typically answer 50% of those money questions correctly. Lack of knowledge about finances can impact everything from saving for emergencies to how much debt you take on and more. Regardless of what last year looked like for you, this is a chance to turn the page and start fresh with your financial strategies.
Working with a qualified financial professional is one way to make sure that you have covered all of your primary concerns with finances and have a place to get your questions answered.
If you’d like some more financial education, check out our 27 Principles to Investing playlist: https://www.youtube.com/playlist?list=PLB62qn_iXR3t2Bn-AfVTgRNdSXq6fDLBz