Monthly News and Tips
AUGUST 2022
Retirement Accounts – As people get older, their net worth increases. This is largely because they have had more time to save and accumulate assets. The median net worth of Americans aged 55 to 64 is $212,500, according to the Federal Reserve Board’s latest Survey of Consumer Finances. Your net worth is calculated by subtracting any liabilities, such as debt, from your assets.
Your retirement accounts make up a portion of your assets. They also play a starring role in ensuring you can retire comfortably. Common accounts include: 401(k)s, 403(b)s, IRAs, and pension plans. All of these accounts allow you to set aside money for retirement on a tax-deferred basis, which means you won’t have to pay taxes on the money until you withdraw it in retirement. This can be a huge advantage, since it allows your money to grow faster and compound over time.
The sooner you start saving for retirement, the better off you’ll be. But it’s never too late to start! Even if you only have 10 years left until your retirement goal date, there are still steps you can take to ensure a comfortable retirement.
Taxes on cryptocurrency – In the past decade, cryptocurrency has become one of the most popular investments in the world. But despite that popularity, there is still a lot of confusion about how cryptocurrencies are taxed. The IRS generally treats gains on cryptocurrency the same way it treats any kind of capital gain. That is, you’ll pay ordinary tax rates on short-term capital gains (up to 37 percent in 2022, depending on your income) for assets held less than a year. If you hold the asset for more than a year, you’ll pay the lower long-term capital gains rate (up to 20 percent in 2022). However, there are some special rules that apply to cryptocurrency. For example, if you receive cryptocurrency as payment for goods or services, you’ll need to include the fair market value of the cryptocurrency in your income. Similarly, if you sell or exchange cryptocurrency, you’ll need to calculate your capital gain or loss and report it on your tax return. With so many factors to consider, it’s important to consult with a tax professional before making any decisions about buying or selling cryptocurrency.
Having a financial plan – setting your goals helps to keep you on track, whether you’re beginning your work life and just starting or as you get closer to retirement. Call to set up a time for mee, we can help you move towards achieving your goals.
Did You Know??? Most people don’t have money because they don’t have a plan.
On a Personal Note… I had a wonderful vacation in Alaska with my son and his wife on the Kenai Peninsula.
