As the year winds down, you might be wondering whether you still have time to make some positive financial moves and you do. One productive action to consider is maxing out on your individual retirement account (IRA).You have until April 15, 2024, to contribute to your IRA for the 2023 tax year. But if you can afford it, why not put in the extra money now and get it working for you as soon as possible?For 2023, you can put up to $6,500 into an IRA, plus an additional $1,000 catch-up contribution if youre 50 or older. (This limit rises to $7,000, plus the $1,000 catch-up amount, in 2024.) If you already have a traditional or Roth IRA, you may know the benefits, but if you dont have either, heres a quick summary: Traditional IRA When you invest in a traditional IRA, your earnings grow tax deferred and your contributions may qualify for a tax deduction. If you and your spouse dont participate in a 401(k) or similar employer-sponsored plan, you can deduct the full amount of your IRA contributions, up to the contribution limit. But if you or your spouse invest in an employer-sponsored plan, you may be able to take a full or partial deduction if you are married and filing jointly, with a modified adjusted gross income of $136,000 or less. For single filers, this figure is $83,000. (For the 2024 tax year, these figures rise to $143,000 if youre married and file jointly, and $87,000 if youre a single filer.) Roth IRA By investing in a Roth IRA, your contributions are not tax deductible, but your earnings can grow tax free provided youve held your account at least five years and you dont start withdrawing the earnings until youre 59. And because youre investing with after-tax dollars, you can withdraw contributions not the earnings at any time, for any purpose, without taxes or penalties. You may be eligible for a full or partial contribution if your modified adjusted gross income is less than $228,000 married and filing jointly, or less than $153,000 if youre a single filer. (For 2024, these figures are less than $240,000 if youre married and file jointly, and less than $161,000 if youre a single filer.) These tax advantages provide a strong incentive to fully fund an IRA each year. Furthermore, you can put almost any investment stocks, bonds, mutual funds and so on into an IRA, so you can create a portfolio that matches your goals and risk tolerance. You can still fully fund your IRA for the 2023 tax year, but as you continue to save, you might find a more efficient way to reach the maximum, such as setting aside a regular amount each month. To make it as stress-free as possible, you can have the money automatically moved from your savings or checking account to your IRA. If its still difficult to come up with these amounts every month, you could put in what you can afford and then add other funds, such as a year-end bonus or a tax refund, when you receive them. Any time you contribute to your IRA is a good time but if you can do it early, or have a savings strategy throughout the year, you can avoid the last-minute dash to put in the cash. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL firstname.lastname@example.org This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC
Its been a bumpy year for the financial markets which means that some of your investments may have underperformed or lost value. Can you use these losses to your advantage?Its possible. If you have some investments that have lost value, you could sell them to offset taxable capital gains from other investments. If your losses exceed gains for the year, you could use the remaining losses to offset up to $3,000 of ordinary income. And any amount over $3,000 can be carried forward to offset gains in future years.This tax-loss harvesting can be advantageous if you plan to sell investments that youve held in taxable accounts for years and that have grown significantly in value. And you might receive some gains even if you take no action yourself. For example, when you own mutual funds, the fund manager can decide to sell stocks or other investments within the funds portfolio and then pay you a portion of the proceeds. These payments, known as capital gains distributions, are taxable to you whether you take them as cash or reinvest them back into the fund.Still, despite the possible tax benefits of selling investments whose price has fallen, you need to consider carefully whether such a move is in your best interest. If an investment has a clear place in your holdings, and it offers good business fundamentals and favorable prospects, you might not want to sell it just because its value has dropped.On the other hand, if the investments youre thinking of selling are quite similar to others you own, it might make sense to sell, take the tax loss and then use the proceeds of the sale to purchase new investments that can help fill any gaps in your portfolio.If you do sell an investment and reinvest the funds, youll want to be sure your new investment is different in nature from the one you sold. Otherwise, you could risk triggering the wash sale rule, which states that if you sell an investment at a loss and buy the same or a substantially identical investment within 30 days before or after the sale, the loss is generally disallowed for income tax purposes.Heres one more point to keep in mind about tax-loss harvesting: Youll need to take into account just how long youve held the investments youre considering selling. Thats because long-term losses are first applied against long-term gains, while short-term losses are first applied against short-term gains. (Long-term is defined as more than a year; short-term is one year or less.) If you have excess losses in one category, you can then apply them to gains of either type. Long-term capital gains are taxed at 0%, 15% or 20%, depending on your income, while short-term gains are taxed at your ordinary income tax rate. So, from a tax perspective, taking short-term losses could provide greater benefits if your tax rate is higher than the highest capital gains rate.Youll want to contact your tax advisor to determine whether tax-loss harvesting is appropriate for your situation and youll need to do it soon because the deadline is Dec. 31. But whether you pursue this technique this year or not, you may want to keep it in mind for the future because youll always have investment tax issues to consider. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL email@example.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC
As we journey through life, many people find themselves facing one of the most pressing concerns: ensuring that they provide care and support to their loved ones, particularly their aging parents, as they transition into their senior years. Long-term senior care frequently raises questions and concerns, with one of the most common worries being, What if my parents run out of money?The cost of senior care services can indeed be a significant burden on families. Many are apprehensive about the affordability of these services and the potential financial strain they might impose. This is where a comprehensive continuum of care approach, like the one offered by Grace Pointe of Greeley, can make all the difference.Tailored Care for Your Unique NeedsOur team of experienced care professionals adopts a personalized approach to assess the specific care needs of each resident. We commit to ensuring that you dont pay for services that you or your loved one dont need. This ensures that you wont bear unnecessary costs, and your loved ones will receive the appropriate level of care to enhance their quality of life.If the affordability of long-term senior care concerns you, Grace Pointes approach is here to help. We dedicate ourselves to providing the right care at the right cost, supporting both your financial peace of mind and your loved ones well-being.To learn more about our long-term senior care services and our continuum of care approach, visit our Grace Pointe of Greeleys Long-Term Senior Care Services page.Frequently Asked Questions About Long-Term Senior CareAt Grace Pointe, we understand the financial concerns that come with long-term senior care, and were here to put your mind at ease. Our continuum of care services is designed to ensure affordability while providing your loved ones with the precise level of care they need. We understand that every individual is unique, and their care requirements can vary greatly which is why we have compiled this list of FAQs about long term senior care services below.What is long-term senior care, and when is it needed?Long-term senior care is a comprehensive service designed to provide assistance and support for seniors who may require help with daily activities due to age-related challenges or medical conditions. It becomes necessary when individuals find it increasingly difficult to maintain their independence and well-being.How do I know which type of long-term senior care is suitable for my loved one?Our experienced care professionals at Grace Pointe will assess your loved ones individual needs and recommend the most appropriate level of care. We believe in personalized care plans to ensure your loved one receives the best possible care.What is the cost of long-term senior care at Grace Pointe, and how can I afford it?The cost of long-term senior care varies depending on the level of care and services required. Grace Pointe offers a continuum of care approach, ensuring you only pay for the care your loved one needs. We will work with you to explore financing options, including community resources for Medicaid and Veterans benefits, to make care more affordable.Can I visit my loved one in long-term senior care at Grace Pointe of Greeley?Yes, we encourage family visits and understand the importance of staying connected. We also encourage you to enjoy activities and events to see the life of Grace Pointe experienced by your family members. There are some guidelines for visiting after hours to ensure the safety and comfort of the Grace Pointe residents, which can be discussed with our staff.How can I learn more about Grace Pointes long-term senior care options?You can explore more details about our long-term senior care services on our Long-Term Care Services page. Feel free to contact our team for specific information and to request a tour.How can Grace Pointe of Greeley help ensure that I dont pay for services my loved one doesnt need in the long term?At Grace Pointe, we understand the importance of affordability in long-term senior care. We offer a continuum of care approach, which means we tailor care plans to your loved ones specific needs. By doing so, we ensure that you only pay for the necessary services, maximizing affordability while maintaining high-quality care. Can I modify my loved ones care plan if their needs change over time?Yes, we understand that care needs can change. At Grace Pointe, we regularly review care plans and adjust them to accommodate changing requirements to ensure your loved one receives the best care.For answers to common questions about long-term senior care and all our services, visit our FAQ page.Dont let financial concerns hold you back from providing the best care for your aging parents. Grace Pointe of Greeley is here to support you every step of the way. Reach out to our care team with any other questions you may have about your familys care.