Meaglia Financial Consulting

Let's Talk Money! May/ June Edition: https://www.ltmonline.com/meagliafinancialnews/2021MayJun Charitable Giving: A Win-Win Is giving to charity on your to-do list? Making a charitable donation to a nonprofit organization allows you to support a cause that's important to you and take a tax deduction...... Is Life Insurance Optional? Everyone hopes to live a long and healthy life. But the fact is, there are no guarantees. Would your family or business survive financially if you died suddenly or your company lost a key employee? Life insurance is designed to provide for families or businesses if the unexpected happens... May Is Older Americans Month A Presidential Proclamation designates May as the month for honoring older people in our communities. It can also serve as a reminder to ask older relatives about their health and finances. Consider talking with loved ones about... Consistency Is Key for Retirement Investors Slow and steady like the tortoise or fast and furious like the hare? Which investing approach do you think offers the best chance of saving enough for a comfortable retirement? For a long-term investor, being a tortoise has its advantages... All this and more in this issue of Let's Talk Money: https://www.ltmonline.com/meagliafinancialnews/2021MayJun #FinancialNews #InvestmentTips #FinancialManagement #LetsTalkMoney #MeagliaFinancialConsulting

New Limits for HSAs Covered by a high-deductible health plan (HDHP)? That makes you eligible to contribute to a health savings account (HSA). An HSA allows you to set aside money in a tax-advantaged account to pay current and future qualified medical expenses. For 2021, the annual HSA contribution limit is $3,600 for individuals with self-only HDHP coverage and $7,200 for individuals with family HDHP coverage. If you're age 55 or older, you can make an additional $1,000 catc...h-up contribution. HDHP Defined The IRS currently defines an HDHP as a health plan having a minimum deductible for 2021 of $1,400 for self-only coverage and $2,800 for family coverage. Limits on out-of-pocket expenses (including deductibles, copayments, and coinsurance, but not premiums) are $7,000 for self-only HDHP coverage and $14,000 for family HDHP coverage READ MORE: https://www.ltmonline.com/meagliafina//New_Limits_for_HSAs

Who Needs an Estate Plan? You may think of estate planning as something only wealthy people need. But the truth is, a basic estate plan is important for anyone who wants to ensure that his or her final wishes are carried out READ MORE: https://www.ltmonline.com//2021Ma/Who_Needs_an_Estate_Plan

Say No to Lifestyle Inflation What's on your wish list? A bigger house? A new boat? An exotic vacation? As your career advances and your earning potential grows, it's tempting to want to "upsize" your lifestyle. But before you go all in with increasing your spending, prioritize your goals and focus on what's essential for a successful financial future. Wants Versus Needs ... It’s fun to imagine yourself in a new home. Extra bedrooms, a home theater, and a pool all sound great until you consider the real cost to your savings. Think about how much more you could end up spending in monthly mortgage costs and taxes before you make a decision to buy more house than you really need. Instead of upgrading, add the money you would have spent on higher mortgage payments to your retirement savings. Having enough money once you retire is a worthwhile objective READ MORE: https://www.ltmonline.com//2/Say_No_to_Lifestyle_Inflation

Cultivate Your Financial Smarts When there's a lot going on in your life, you might be tempted to put thinking about your finances on the back burner. But that's never a good plan. Improving your financial outlook can be as easy as laying down - and following - a few simple ground rules. Create a Spending Plan ... Add up your monthly expenses - rent/mortgage, utilities, insurance, food, commuting costs, loan and car payments, etc. - and subtract them from your after-tax income. If expenses are top heavy, look for places to trim. Build Credit Paying bills and making loan payments on time will help you earn a healthy credit score. Credit cards can help you establish credit, but make sure you pay off any balances each month to avoid accruing interest and lowering your credit score READ MORE: https://www.ltmonline.com//2021MarApr/Cultivate_Your_Finan

Contribute Now to Reduce Your 2020 Tax Bill You can lower your tax bill and increase your retirement savings with one simple move. Making a contribution to an eligible retirement account by the April 15, 2021 income tax deadline will reduce your 2020 taxable income by the amount you contribute. Individual Retirement Account (IRA) ... An IRA offers you the flexibility to choose a variety of different investments to hold in your account. For 2021, you can contribute up to $6,000 to an IRA $7,000 if you’re age 50 or older. You must have earned income, including money from wages, salaries, tips, bonuses, commissions, or self-employment, to contribute to an IRA. Your spouse can contribute to an IRA as well. Additionally, employees, incomes below $75,000 ($124,000 for couples) are eligible to make traditional IRA contributions and still claim the deduction. SIMPLE IRA A Savings Incentive Match Plan for Employees, or SIMPLE IRA, is a retirement savings plan designed for small businesses with 100 or fewer employees READ MORE: https://www.ltmonline.com//Contribute_Now_to_Reduce_Your_2

A 401(k) Plan: Paving the Road to Retirement There’s a lot to like about a 401(k) plan. Whether you already participate in your employer’s plan or you’re just now thinking about joining, reviewing the benefits as tax time approaches is a smart idea. The Pretax Advantage ... When you participate in a traditional 401(k) plan, your contributions to the plan are taken out of your pay before income taxes are deducted, thus lowering your taxable income. Your plan contributions and any earnings grow tax deferred until you withdraw them, typically at retirement, when you may be in a lower tax bracket than you are now. And with automatic payroll deduction, contributions to your employer’s plan come out of your paycheck before you are tempted to spend the money READ MORE: https://www.ltmonline.com//A_401k_Plan_Paving_the_Road_to_

Mind The Gap If you’re looking for a steady source of income before you start collecting Social Security, consider an annuity* to fill the gap. Immediate Need Whether you’re planning to retire soon or recently retired, delaying when you begin collecting Social Security can potentially increase your monthly payout.... To fill this time gap, consider purchasing an immediate annuity. The regular annuity payments can delay the need to draw on your retirement funds for your day-to-day expenses. An immediate annuity begins paying you immediately, as opposed to a deferred annuity which starts paying you at a future date. Depending on your situation, you can purchase annuities that pay over the period of time you need. If you retire at age 62 but want to wait until age 70 to begin collecting Social Security, you can purchase an eight-year annuity that will provide monthly payments until you reach age 70... READ MORE: https://www.ltmonline.com/meagliafinancialne//Mind_The_Gap

Avoid a Spending Hangover The holidays are behind you, but chances are paying the bill is not. Starting the New Year with a thoughtful spending plan can help you make progress throughout the year. Include your entire family in the process to help ensure they are on board with this goal... READ MORE: https://www.ltmonline.com//2021J/Avoid_a_Spending_Hangover

Let's Talk Money! January/ February Edition: https://www.ltmonline.com/meagliafinancialnews/2021JanFeb Avoid a Spending Hangover The holidays are behind you, but chances are paying the bill is not. Starting the New Year with a thoughtful spending plan can help you make progress throughout the year. Include your entire family in the process to help ensure they are on board with this goal... Mind The GapIf you’re looking for a steady source of income before you start collecting Social Security, consider an annuity* to fill the gap Do You Need an Umbrella?An umbrella insurance policy is a tool to help protect your family and your assets. It adds an extra layer of protection above your other liability policies like automobile or homeowners. If you are involved in a major accident, having an umbrella policy can save you from costly legal claims and judgments Getting FIRE'd?FIRE stands for Financial Independence, Retire Early. It’s a financial movement growing in popularity as more and more people seek to eliminate debt and build savings so they can retire earlier than usual. Regardless of your target retirement date, this movement focuses on some smart financial strategies #FinancialNews #InvestmentTips #FinancialManagement #LetsTalkMoney #MeagliaFinancialConsulting

Prepare for the Unexpected 2020 has been exceptionally challenging! With a global pandemic, civil discord, flooding and storms, business owners and individuals alike have a renewed appreciation for the value of risk management. Of course, insurance plays an important role in managing risks. Protect Yourself and Your Family... The first task is to protect yourself and your family from major financial risks such as the death or disability of a breadwinner or parent. Doing so is pretty straightforward. In a nutshell, most families should consider layering several types of coverage.. READ MORE: https://www.ltmonline.com//2020/Prepare_for_the_Unexpected

Bunching Deductions As the year draws near a close, it is time to see if there are any moves you can make that will help reduce your annual income tax bill. The Tax Cuts and Jobs Act, passed in late 2017, complicated the matter of taking deductions, but there are some helpful options if you plan ahead. The Obstacle The Tax Cuts and Jobs Act doubled the standard deduction. For tax year 2020, it’s now $12,400 for single filers and $24,800 for married filers. That affected many ...people who had few deductions because they are better off taking the standard deduction. A Possible Solution That’s where bunching deductions comes in. Here’s generally how it works... READ MORE: https://www.ltmonline.com/meagliafina//Bunching_Deductions