Did you know that Pennsylvania has the fifth largest older adult population in the nation with 3.4 million individuals?1 As the population continues to age, more people are weighing their options when it comes to downsizing, moving into a senior living community, or choosing to age in the comfort of their homes. According to a 2021 Home and Community Preferences survey by AARP of 2,826 U.S. adults, about 75% of people over the age of 50 expressed that they would like to remain in their current houses and communitiesmeaning aging in place is becoming a more prevalent life choice among older adults.2What to Know About Aging in PlaceIf youre leaning toward spending your years in the place where you feel the most content and safe, then you need to be willing to make some modifications to your home. As you age, your needs change, which means certain features in your home may need to be adjusted. Wider doorways and walkways; accessible bathrooms, kitchens, and bedrooms; ramps and lifts; non-slip floors; and stability aids like grab bars and handrails are some of the most common enhancements that come to mind, but assistive technology can play an important role in aging in place too.Many people choose to age in place because they want to maintain their independence, and assistive technology helps make that possible. From smart home devices that allow you to control the temperature or lights with voice commands to amplified phones and doorbells, there are plenty of high-tech tools that can help you navigate your day-to-day with ease. If youre a senior with hearing loss, Captioned Telephone Relay Service is a free service that allows you to read captions of whats said to you during phone conversations using a uniquely designed CapTel phone.CapTel Makes Phone Conversations Clearer Using CapTel, you can confidently and securely age in place knowing that you can effectively communicate over the phone. Whether youre calling loved ones to catch up, chatting with your doctor, or contacting first responders in an emergency, CapTel is a dependable communication solution for older adults who have hearing loss.Best of all, the CapTel captioning service is free and available in English and Spanish, with captions appearing on the bright, built-in display screen of the CapTel phone just moments after the other caller has spoken. CapTel phones can be purchased directly for $75 through a third-party vendor, or qualified Pennsylvania residents can apply for a CapTel device through the states Telecommunications Device Distribution Program (TDDP)which provides specialized equipment to individuals who find it difficult to use a standard phone. Age in Place Confidently with CapTelTo learn more about CapTel, including how to purchase or apply for an assistive communication device, visit pactrs.com today!Sources:1Master Plan for Older Adults, Pennsylvania Department of Aging 22021 Home and Community Preferences Survey: A National Survey of Adults Age 18-Plus | Joannne Binette & Fanni Farago, AARP Research CapTel is a registered trademark of Ultratec, Inc.
As you know, the gig economy has been booming over the past several years. If youre thinking of using your skills to take on a side gig, what should you do with the money youll make?Theres no one right answer for everyone, and the decisions you make should be based on your individual situation. And of course, you may simply need the extra income to support your lifestyle and pay the bills. But if you already have your cash flow in good shape, and you have some freedom with your gig money, consider these suggestions: Contribute more to your IRA. If you couldnt afford to contribute the maximum amount to your IRA, you may find it easier to do so when you have additional money coming in from a side gig. For the 2023 tax year, you can put in up to $6,500 to a traditional or Roth IRA, or $7,500 if youre 50 or older. (Starting in 2024, this extra $1,000 catch-up contribution amount may be indexed for inflation.) The amount you can contribute to a Roth IRA is reduced, and eventually eliminated, at certain income levels. Look for new investment opportunities. If youre already maxing out your IRA, you might be able to find other investment possibilities for your side gig money. For example, if you have young children, perhaps you could use some of the money to invest in a 529 education savings plan. A 529 plan offers potential tax advantages and can be used for college, qualified trade school programs, and possibly some K-12 expenses. Please keep in mind that potential tax advantages will vary from state to state. Build an emergency fund. Life is full of unexpected events and some can be quite expensive. What if you needed a major car repair or required a medical procedure that wasnt totally covered by your health insurance? Would you have the cash available to pay these bills? If not, would you be forced to dip into your IRA or 401(k)? This might not be a good move, as it could incur taxes and penalties, and deprive you of resources you might eventually need for retirement. Thats why you might want to use your gig earnings to help fund an emergency fund containing several months worth of living expenses, with the money kept in a liquid, low-risk account. To avoid being tempted to dip into your emergency fund, you may want to keep it separate from your daily spending accounts. Pay down debts. Most of us will always carry some debts, but we can usually find ways to include the bigger ones mortgage, car payments and so on into our monthly budgets. Its often the smaller debt payments, frequently associated with high-interest-rate credit cards, that cause us the most trouble, in terms of affecting our cash flow. If you can use some of your side gig money to pay down these types of debts, you could possibly ease some of the financial stress you might be feeling. And instead of directing money to pay for things you purchased in the past, you could use the funds to invest for your future.As weve seen, your side gig money could open several promising windows of opportunity so take a look through all of them. 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