The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act is a recent legislative measure that was signed into law. This act seeks to make improvements to existing retirement savings plans by introducing new provisions to benefit workers, retirees, and businesses. The new legislation was introduced in response to the changing demographics of the workforce, where workers are living longer and seeking greater flexibility in their retirement planning.

Your financial future may be impacted by the retirement plan changes made by the SECURE 2.0 Act. Some of the main changes from the Act are as follows:

Matching for Roth accounts

The SECURE 2.0 Act’s first noteworthy element allows businesses to offer their staff the choice of receiving vested matching contributions to their Roth IRAs. This represents a substantial change from the past, when matching contributions were limited to conventional pre-tax accounts.

Roth retirement plans allow for after-tax contributions, after which earnings can increase tax-free. As a result, retirement withdrawals are tax-free, which can result in significant savings for the employee. Employees will have the opportunity to maximize their tax savings if their employers offer the option of matching contributions to Roth accounts.

It’s crucial to remember that, unlike Roth IRAs, Roth accounts must make required minimum distributions (RMDs) from an employer-sponsored plan until tax year 2024. RMDs for Roth accounts will then be equal to those for conventional pre-tax accounts. In order to clear up any misunderstandings, employers should explain this to their staff.

Overall, the option for employers to pay matching contributions to Roth accounts gives them more freedom to customize their retirement plans to suit the needs of their workforce. For both businesses and people trying to maximize their tax savings in retirement, it’s an exciting trend.

New and Improved RMDs

The SECURE 2.0 Act makes some substantial changes to required minimum distributions (RMDs). The age at which owners of retirement accounts must start taking RMDs will increase from 72 to 73 on January 1, 2023. However, you must continue taking RMDs as scheduled if your 72nd birthday is in 2022 or earlier.

Additionally, starting in 2033, this Act will raise the starting age for RMDs to 75. Retirees now have a little more time to put money down for their future and can retain more of it in their accounts for longer periods of time thanks to this adjustment.

Additionally, the current 50% penalty for failing to take an RMD will be reduced to 25% of the RMD amount not taken. More retirees should be encouraged by this decrease to adhere to RMD regulations and make sure they are annually withdrawing the proper amount from their retirement accounts.

Additionally, beginning in 2024, the new law exempts Roth accounts in employer retirement plans from the RMD requirements. For retirees who prefer to retain their money in Roth accounts to avoid taxes, this exemption gives them greater freedom.

The excess annuity payment can be allocated to the year’s RMD if an individual has in-plan annuity payments that are greater than their RMD requirement. For retirees, this provision smooths out the payment process and does away with the necessity for extra payments throughout the year.

Finally, it’s crucial to remember that retirees have a few choices when it comes to taking their first RMD. The deadline for taking it is December 31, 2024, although they have the option to postpone it until no later than April 1, 2025. Prior to making any decisions, it is always a good idea to speak with a financial advisor to determine which course of action is best for the individual’s particular financial situation.

Changes to annuities

A number of annuity-related adjustments are made under the SECURE 2.0 Act, with a special emphasis on Qualified Longevity Annuity Contracts (QLACs). Deferred income annuities, known as QLACs, can be bought with retirement assets. Retirement beneficiaries receive a lifetime income stream from a QLAC, with payments required to start at or before age 85.

The SECURE 2.0 Act makes several significant changes, one of which is an increase in the cash cap for QLAC premiums. Retirees will be able to invest up to $200,000 in QLACs starting on January 1, 2023, a significant increase from the existing cap of $145,000.

Additionally, the Act does away with a previous restriction that set the maximum premium amount at 25% of a person’s retirement account balance. Retirement savers now have greater freedom because they can put more of their retirement funds into QLACs, providing a reliable income stream for their later years.

Higher catch-up contributions

The SECURE 2.0 Act’s provision for larger catch-up contributions is one of its main advantages. Beginning January 1, 2025, people ages 60 to 63 will be able to make catch-up contributions to a workplace plan of up to $10,000 per year. This is an increase from the current catch-up payment for individuals 50 and older in 2023 of $7,500.

It’s crucial to remember that all catch-up contributions made to a Roth account at age 50 or older must be made in after-tax money if you made more than $145,000 in the previous calendar year. Individuals who earn $145,000 or less annually, inflation-adjusted, are exempt from this Roth requirement.

It’s also important to note that those 50 and older can currently contribute up to $1,000 in catch-up contributions to their IRAs. With this Act, this limit will be indexed to inflation, which means it may rise annually in accordance with increases in the cost of living as determined by the federal government.

Overall, the Act’s larger catch-up contribution limits give people the chance to boost their retirement savings and perhaps even their retirement income.

Qualified charitable distributions

Changes to qualified charitable distributions (QCDs), a fantastic method to support charities while lowering taxes, are also part of the SECURE 2.0 Act. People who are 70 1/2 years of age or older will be able to choose to use up to $50,000 as part of their QCD limit as a one-time gift to a charitable remainder unitrust, charitable remainder annuity trust, or charitable gift annuity starting in 2023.

It’s crucial to remember that this sum, if appropriate, counts against the annual RMD. By the end of the calendar year, gifts must be made directly from the IRA in order to be considered. Additionally, QCDs can only be given to 501(c)(3) organizations that meet the requirements, not to all charities.

The SECURE 2.0 Act is a step in the right direction toward enhancing retirement security and assisting people in better planning for their golden years. Be careful to speak with a financial counselor if you’re interested in making use of these new laws to identify the best course of action for your particular circumstance.

For younger audience

Automatic enrollment and automatic plan portability

One of the most significant changes made by the SECURE 2.0 Act is that starting in 2025, companies will be required to automatically enroll qualified employees in 401(k) and 403(b) plans with a minimum contribution rate of 3%. This is an effort to address the issue of Americans’ lack of retirement savings, especially among younger workers who are not saving enough. It is hoped that automatic enrollment in retirement plans will encourage more Americans to start saving for the future and raise the nation’s total savings rate.

The Act also permits retirement plan service providers to provide plan sponsors with automatic portability services, allowing employees’ low-balance retirement accounts to be transferred to a new plan when they move employers. For lower-balance individuals who generally cash out their retirement plans when they leave employers rather than continuing to save in another eligible retirement plan, this adjustment is especially helpful.

A significant step toward raising Americans’ total retirement savings rate is automatic enrollment and automatic plan portability. The SECURE 2.0 Act attempts to solve some of the key obstacles to retirement savings, such as procrastination and inaction, as well as give much-needed assistance to those with smaller account balances. It does this by automatically enrolling employees in retirement plans and making account transfers simple. The objective is to inspire more people to begin saving for the future and to improve the security of retirement for all Americans.

Emergency savings

The SECURE 2.0 Act encourages plan participants to save for emergencies in addition to retirement funds. Starting in 2024, defined contribution retirement plans—like 401(k) plans—will be able to establish an emergency savings account. As a result, workers are permitted to designate a portion of their retirement payments to a special emergency fund.

The maximum yearly contribution to the emergency savings account is $2,500, whichever is less and is determined by the employer. The first four withdrawals made each year are exempt from taxes and penalties, giving plan participants the freedom to access their emergency savings as needed. For people who might not have the sufficient reserves to handle unforeseen costs, this function is extremely helpful.

Like regular retirement contributions, contributions to the emergency savings fund may also be eligible for an employer match. This gives staff members still another reason to take part in the program and accumulate emergency funds.

Participants in plans may be more inclined to save when there is an emergency fund available. This can reduce financial stress and assist people in avoiding taking on high-interest loans or using their retirement funds.

In general, the SECURE 2.0 Act’s requirement that retirement plans include an emergency savings account is a significant step toward fostering financial security for individuals and families.

Student loan debt

The SECURE 2.0 Act’s introduction of matching contributions for employee student loan payments is among its most important aspects. This indicates that starting in 2024, businesses will be permitted to contribute to their employees’ retirement accounts in an amount equal to the student loan payments made by those employees. This is fantastic news for workers who are struggling with student loan debt since it gives them an additional incentive to save money while they are repaying their loans.

The minimum 401(k) contribution requirements of the company will be met by the matching contributions for student loan payments. This implies that an employer will continue to make matching contributions to an employee’s retirement account even if they are paying off student loan debt.

This is a game-changer for those who have student loan debt, since they have long struggled to strike a balance between preparing for retirement and repaying their debt. Now, thanks to the SECURE 2.0 Act, they will be able to do both at once.

529 Plans

Regarding 529 Plans, the SECURE 2.0 Act also made some significant changes. For those who don’t know, a 529 plan is a tax-advantaged savings program created to aid families in setting aside money for future educational costs.

Under the new legislation, the beneficiary may now roll over funds from a 529 plan after 15 years to a Roth IRA. It’s crucial to remember that these rollovers cannot total more than the aggregate before the 5-year window closes on the payout date. In other words, if you make a $20,000 contribution over a ten-year period to a 529 plan, you can only roll over up to $20,000 into a Roth IRA after fifteen years.

It’s also crucial to remember that the rollover counts towards the annual Roth IRA contribution cap. For instance, if the annual contribution cap for that year is $6,000 and you roll $5,000 from a 529 plan into a Roth IRA, you can only make an extra $1,000 contribution to the Roth IRA for that year.

Everyone’s financial situation is unique, so it’s crucial to speak with a financial advisor or tax expert to determine how the changes brought about by Secure 2.0 may affect your particular situation. Nevertheless, for families looking to maximize their education savings while also making retirement plans, the option to roll over 529 plan assets to a Roth IRA after 15 years may offer more flexibility.

About the Author

Krishna Rao is a former financial planner who now lives in Tampa. He was employed by Wells Fargo Wealth Management prior to retiring.

In this uncertain world, two things are very certain — everybody has to pay taxes and everybody is going to die. Of course, nobody wants to think about their own death. In fact, many of us try to avoid the topic at all costs. Unfortunately, there are consequences for not planning. Similarly, everybody talks about a will, but many people fail to actually do it. Each person has his/her own reason why they don’t do it. Many just don’t get around to doing it. In fact, one survey found that the most common reason adult Indians living in America failed to do a will is just that — procrastination. Some people think that a will and estate planning is only for rich people.

Legal Requirements for Drafting a Will

As long as you are an adult and of sound mind, you are entitled to create a will. General requirements to ensure a will’s legality include signatures of at least two witnesses and your own signature, along with the date the document was created. Even though there are websites available where you can create your own will, the attorney cost is not that much, so utilizing an attorney’s expertise is highly recommended.

Legal Mumbo Jumbo

When you start looking into creating your own will, you will come across a few words which you may not be familiar with or you may have a misconception about.

The first word is estate. What is an estate? If you are thinking of a large land with a multi-story, multi-room mansion, you are not even close.

The simple basic estate consists of the following:

• Checking and savings accounts
• Investments
• Your home and other real estate
• Your car
• Life insurance
• Your personal possessions

The second term you may come across is a trust. Depending on the complexity of your estate, your financial planning may benefit from a trust rather than a will. A will must undergo probate — the process of proving it in court — which can slow down the execution process. A trust does not.

The third term you may see frequently is the power of attorney, which is the authority to act for another person in a specified or all legal or financial matters.

The fourth term you will hear is the living will. The living will is a written statement detailing a person’s desires regarding their medical treatment in circumstances in which they are no longer able to express informed consent, especially an advanced directive. Depending upon your situation, you may need all four legal documents.

The fifth term is a probate. Probate, mentioned earlier, is the legal process that ensures your will is valid. It also refers more generally to the court-supervised process of distributing an estate.

Keep it up to Date

As you update your computer and your mobile devices from time to time, all of these legal documents need to be updated as well. As you accumulate more assets over your lifetime, get married, and have children, revisiting your documents to make any necessary revisions is very important.

Here are the most important Reasons to have a Will:

1. Peace of mind for your loved ones
   Some people put off creating their will because they assume their loved ones will automatically get an inheritance. This isn’t always true. If you do not have a will, the legal process to obtain the money you thought might automatically go to them can be long and expensive for your loved ones after you pass.Recently a 45-year-young Indian IT professional in South Florida passed away after a heart attack. He did not have a will, and he did not put his wife’s name on bank accounts or any other investments as a beneficiary. Even though he had over $100,000 in his bank account, his wife could not withdraw any money. Unfortunately, she did not have enough money to pay for the funeral. A few days later when she hired an attorney, she found out that it would cost her a minimum of $5,000, and that it may take five to six months to get even one dollar from the bank.
2. A will determines who is responsible for your finances.
   Deciding who will handle your finances is a great reason to have a will. When you write a will, you have the opportunity to nominate an “executor.” This is the person who will be in charge of wrapping up all of your affairs.The responsibilities of an executor may include everything from closing bank accounts to liquidating assets, so you should choose someone who is capable and who you trust to carry out these activities. If you don’t choose an executor in your will, the court will pick one for you — and it may not be the person you’d want.  In most cases, executors tend to be spouses, children, or parents of the deceased.
3. Decide who will take care of your minor children.
   Any time you think about your children’s future, you are bound to get emotional. If you have to think about what would happen to them if you were to die, you get even more emotional. That, however, should not prevent you from having a plan  in place regarding who will take care of your minor children should both parents die.If you don’t nominate a guardian in your will, a court will decide from among your family members. However, you know your child best and are probably in a better position than a court to make sure your child does not end up in the wrong hands. Therefore, this is another of the most important reasons to have a will.
4. Minimize the potential for family disputes.
   Every family experiences conflicts and goes through ups and downs in their relationships. These conflicts can flare up if one of the family members dies without a will. When you die without a will, your loved ones will have to guess at what your final wishes were. This ambiguity can create friction, and even fights, which sometimes last a long time. A will may reduce these conflicts considerably.
5. Minimize estate taxes
   In the beginning of the article, I mentioned that everybody has to pay taxes regardless of his or her situation. Unfortunately, when you die, your loved ones will have to pay taxes on their inheritance. If you plan and create a will after you consult your attorney and your accountant, there is a very good chance they will suggest how to minimize the inheritance taxes your loved ones may have to pay when they receive property from your estate.

6. Make a legal process easy for your loved one.
   Most legal terms are confusing and misunderstood by many. Most people think that probate is always lengthy and expensive, but that is far from the truth if you have a will. A clearly drafted one will definitely reduce the delay.  If a disgruntled family member “contests” the will because he or she thinks they deserve a larger share of your estate, your will can quickly settle the dispute.

7. Leave a Legacy
   I am sure you want to leave a positive impact on the world and leave a legacy after you die. The easiest way to do this is to support a charity or cause you love most. When you create a will, you can preserve your legacy by leaving a part of your estate to a non-profit organization. This donation, up to certain amounts, may also reduce your estate taxes.

Disclaimer:

Author is not an attorney, accountant, or a financial advisor. The article is for general information. To understand the pros and cons, you should consult your attorney.

Professor, Dept. of Economics, Finance & Real Estate, Monmouth University

The college savings plan known as a “529” is often touted as a smart way to save for a child’s college education. But these plans involve more than just putting away money for college. Here an expert on 529s, shines light on how the plans work.

What are 529 plans?

A 529 college savings plan is an investment account that families can open to save for college by investing money that grows tax-free. The name of the account comes from Section 529 of the U.S. tax code.

The money can be used for qualifying education expenses, such as tuition, room and board, textbooks, computers and travel.

People can add money to a 529 account whenever they like, or set up automatic withdrawals from their checking account.

At the end of 2020, Americans had invested a total of US$425 billion in 529 plans. In 2020, the average 529 plan had $25,644, but average balances vary by the age of the child. This amount is almost exactly the total cost of only one year at an in-state, four-year college. The average total cost of one year at a private school is more than double that amount.

When money is placed into a 529, it’s not as if the money is just sitting there. You will have several possible investment options to choose from that comprise stocks, bonds or a combination of the two. There are usually preset investment portfolios based on a child’s age. When a child is young, these portfolios are mostly stocks and are invested more aggressively. But as the child ages, the portfolio automatically transfers more money to bonds, which are usually less volatile. So the effectiveness of a 529 plan depends on how well the stock market performs.

Is the money only for the first four years of college?

It is also possible to use 529 plans for graduate school. So if a child earns a full scholarship as an undergraduate, then the money from the child’s 529 plan can be saved for graduate school.

A recent change in 529 plans allows them to be used for education before college. More specifically, they can be used to pay up to $10,000 per year for tuition at K-12 schools.

For college, however, there are no limits on how much can be withdrawn to cover education expenses.

Do 529 plans vary by state?

Every state in the United States, plus Washington, D.C., has its own 529 plan. However, not all plans are the same. For that reason, it is important to research which plans have the lowest fees, the best investment options and the best overall returns.

There are no residency requirements. In other words, you don’t have to live in a particular state to invest in the state’s 529 plan. However, if a state offers a tax deduction for investing in its 529 plan, then you have to live in that state to get the deduction.

What if the beneficiary of the 529 doesn’t go to college?

It is possible to move funds in 529 plan accounts from one beneficiary to another. Beneficiaries who do not use their 529 plan funds can even transfer the account to their own children or another family member without penalty.

The biggest problem with 529 plans is that money not used for qualified education expenses incurs a 10% penalty on investment earnings. Those earnings are also subject to federal and sometimes state income taxes if they are not used for education expenses that qualify under a 529 plan.

Who should invest in 529 plans?

Families unable to qualify for financial aid are the target investors for 529 plans.

A 529 plan account with a large balance could keep a student from being eligible for financial aid, even if the balance is much less than the overall cost of the degree. So, in cases like this, a 529 plan could cost families money rather than help.

Grandparents whose grandchildren are unlikely to qualify for financial aid are also common investors in 529 plans.

Parents, grandparents or anyone with the ability and desire can contribute up to $16,000 each year if a child’s parents are not married – or $32,000 if they are married – and not pay gift taxes. People can contribute up to this maximum amount each year for each beneficiary. So, if a grandparent has two grandchildren whose parents are married, they can contribute $32,000 in one year to each child’s 529 plan.

Each state has different rules on how much someone can contribute over a lifetime to any one 529 plan, but it ranges from $235,000 in states such as Georgia and Mississippi to $550,000 in Missouri and $418,000 in Florida.

Do 529 plans work?

Yes. They are a way for families to invest money in the stock market and, if all goes well, enjoy financial gains that they can withdraw for their children’s education without paying taxes. They work best under several conditions.

First, if a family is unable to qualify for financial aid, 529 plans offer an effective way to save for college because the money is invested in the stock market and can grow faster than other options, such as savings accounts. Plus, the gains are not taxed as they would be if invested in a non-529 plan investment account.

Second, because the investment time horizon is short – possibly less than 18 years – your money does not have much time to grow, so you have to invest early. There is no age limit for beneficiaries of 529s. You can start one for yourself or someone else at any age.

Third, if you live in one of the states that offer a tax deduction for investing in a 529 plan, that is a factor to consider. Specifically, a 529 holder should look at whether the value of the tax deduction is large enough to outweigh the fact that there are fewer or worse investment options.

Fourth, anyone can contribute to a person’s 529 plan, so it makes a great gift that will not end up being broken or thrown away.

Fifth, grandparents or other relatives, and even family friends, can set up 529 plans for grandchildren, stepchildren, nieces and nephews. In general, it’s probably more efficient to have one 529 plan, but some people like to retain some control over the plan they invest in, so some kids may have several. For instance, I have 529 plans for both of my kids, but their grandparents have 529 plan accounts for them, too.

There are other situations that allow you to withdraw 529 plan funds and not be subjected to the 10% penalty, such as when a beneficiary dies, becomes disabled or earns a full scholarship. Relatives might find this type of saving more emotionally rewarding than gifting money now or giving a larger inheritance at death.

Are there any drawbacks?

There are two primary problems with 529 plans, even for families that might benefit from them the most.

First, timing when to withdraw money is more challenging than, say, for retirement. For example, if the market is having a down year, but a beneficiary is in college and you need to pay tuition, then the benefits can be smaller overall. Say you have $50,000 invested in a 529 plan, and the market falls 10% right before you withdraw the money. If that happens, then you would only have $45,000 to withdraw. On the other hand, if the market increased 10% right before you needed the money, then you would have $55,000 to withdraw.

Second, your investment options are limited. If your state offers a tax deduction for investing in a 529 plan you might choose to invest in your state’s plan even if that plan might not be very good, such as if it has expensive fees. Alternatively, you might choose to invest in another state’s 529 plan and lose the state tax deduction, but have more investment options and fewer fees. This could save you more money in the long run.

About the Author

Robert Haywood Scott III is Professor in the Department of Economics, Finance, and Real Estate at Monmouth University. He teaches Business Statistics, Econometrics, Macroeconomics, and Financial Markets & Risk Management. His research interests include credit and debt markets, applied econometrics, financial literacy, small business financing, and real estate economics. He is the author of “Kenneth Boulding: A Voice Crying in the Wilderness” (2015) published by Palgrave Macmillan and included in their “Great Thinkers in Economics” book series. His co-authored book with Dr. Kenneth Mitchell, “Pesos or Plastic? Financial Inclusion, Taxation, and Development in South America” was published in 2019 by Palgrave Macmillan.

The year is 2016. I am 19 years old, on my way to Brandsmart to buy a television. The TV was $400 and some change, and I remember I did not have all the money up front. I was directed by the salesman to the financing department, and was told I could finance the TV instead of giving the whole $400 up front. My excitement quickly turned to dismay when I was denied financing of a $400 television due to bad credit. 

Credit? First of all, what are these people even talking about? I had just graduated high school barely a year before, and was too busy raising a child to even think about credit or the importance of it. I remember the lady verbally telling me was score was 412, and I thought to myself that there is no way I can be that far from good credit since I had naturally excelled at almost everything in life thus far (academics, sports, etc), so imagine my shock when I found out that the “good credit” scale started off at 700.

The entire way home all I could think about was, “if I could not even get a $400 television.. how am I supposed to get a car, house, or even a credit card?” I drove a 1995 Acura Integra at the time, but as we all know, with old cars come a lot of problems. Although I was living at home, I obviously wasn’t going to be there forever. Who knew that just a simple denial would trigger a lightbulb in my head .. to what is now my livelihood.

From that day forward, I realized that credit is power. Literally. Good credit allows you to obtain good interest rates, high credit limits, travel for free, and more. I educated myself profusely on credit and how I could get myself out of the 400 range to at least a 700 by the end of the year. Just for context purposes, the reason why my credit was bad in the first place was due to not completing college classes I was enrolled in. I thought since I left early enough, I wasn’t responsible for any remaining balance, when it turns out I surely was. Since I did not pay, I had 2 accounts in collections I was unaware about until that fateful day at Brandsmart. I spent the next couple of weeks enrolling in credit education courses allowing me to educate myself on all the ins and outs of credit in general. The next step was very vital … credit laws. What the bureaus can and can’t do, what creditors can and can’t do, and most importantly, the rights we have with the information that is on our credit report. It goes without saying that none of the information I mentioned above is taught to us in school, and its really up to us to just figure it out.

That is when Sore That Score Credit Education was born. After I successfully brought my credit to the 700 range in a matter of months, I felt compelled to help others do the same. I knew the feeling of not knowing anything about credit overall and on top of that, how do I go about fixing it?

Now I dedicate myself to not teaching people about credit, but helping them repair and maintain their credit as well.

About the Author
My name is Talia Sudore and I am a Florida native. I started my credit journey when I was 19 and I was figuring out the world as most 19 year old’s do. I specialize in teaching people how to build, maintain, and repair their credit so that they can enjoy the finer things in life.

No business large or small can be faulted for feeling overwhelmed in the era of COVID-19—overwhelmed trying to stay afloat and prosper and overwhelmed how to achieve a breakthrough in current times that is sustainable for a long time. For example, when many businesses can’t stay open or can’t do in-person meetings, Bimal shows how to become a pioneer, double your revenues or profits, and take over your industry in a year.

Did you know that 99.7 percent of the businesses are small businesses and 80 percent of them fail even after 15 years in the business because 80 percent of them focus on linear growth instead of exponential growth?  That is what the book series makes entrepreneurs achieve by helping them prepare their own ‘customized success blueprint’ through the webinar, content, questions, tools, exercises, resources inside the book. Did you know that if you took 30 exponential steps from wherever you are right now, you will circumnavigate the Earth 26 times or make a round trip to the Sun? That is why entrepreneurs need to focus on exponential growth and the book assists in doubling your business or profits in a year.

Bimal has successfully helped several entrepreneurs achieve exponential growth in a year and now is putting his ‘One Year Breakthrough’ system in a book series where businesses achieve their three-year goal in one year. Bimal started his career in the financial sector and it was a client who revealed to him how valuable his advice was. The client told him that what he did in one hour of coaching, consulting, and planning was more valuable than the 10 of the usual meeting on financial planning done over the three years. When Bimal asked what that was worth that he was doing as a hobby, the client surprised Bimal with a big check—which turbocharged Bimal’s future.  “Every entrepreneur with big goals should consider hiring Bimal. If I could have Bimal in my pocket and carry him around at all times that would be great.”- Says,  Mike Barnhill, Specialist ID, Inc.

The book comes with five big benefits:

• Free Webinar to provide 10X more value with the book
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• True stories for each system to show you that they really work
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• Build your own ‘customized success blueprint’ with timeless systems that can be used repeatedly.

“My mission is to make pioneers out of entrepreneurs by helping them achieve their three-year goal in one year and have the government pay for it. I work as a management consultant, trainer, recruiter, marketer—all the hats I need to wear. I even go in the kitchen and cook with them. I do whatever it takes to achieve the end goal.” —says Bimal.

“Bimal has taken our company from struggling to a thriving company with a dream team in record time. Bimal truly does whatever it takes to grow your business to the next level.”- Lawrence Einbinder, CEO, Florida Hot Tub and Spa, Inc.

The book is written in a very unique style of its own as it uses the power of technology to include a webinar that guides you through the book, it asks a lot of questions, provides a lot of thinking tools, provides free resources to resolve your challenges, most of all it is written in such a way that even if you answer a few questions, you will see a meaningful positive transformation in your life or business.

You can get the book series at https://bit.ly/BimalBooks and start building your journey to ‘Becoming A Pioneer.’

Bimal Shah hs successfully scaled many entrepreneurs in South Florida and you can visit his website at www.TheOneYearBreakthrough.com, email him at bimal@theoneyearbreakthrough.com

or access Free tools and resources at https://linktr.ee/TheOneYearBreakthrough.

About the Author

Bimal Shah, as a financial advisor for 21 years, has helped the community to preserve and protect their assets, build lasting legacies, increase their income, and reduce the taxes they pay. To contact him, please email him at info@bizactioncoach.com or call him at 561-208-4032.

achieve next level growth of doubling your business in a year

launching a complete book series titled

Becoming A Pioneer

how to become a pioneer

double your revenues or profits

customized success blueprint

One Year Breakthrough

Mike Barnhill

Specialist ID, Inc

Lawrence Einbinder, CEO, Florida Hot Tub and Spa, Inc

Bimal Shah

financial advisor

The COVID-19 pandemic has made Americans even more aware of the importance of planning for the unexpected. While no one knows exactly what’s in store for the future, one thing you can do for your loved ones is create an estate plan that expresses your wishes in the event of incapacity or death. If you’re like a lot of people, you may not know where to start, but here are five documents that can form the foundation of a well thought out estate plan:

1. Last will and testament: This is the primary document that defines how you want your property and other assets to be handled. It also assigns guardians for minor children and even pets and it provides a place where you can name your executor, the person who will manage the dissolution of your estate. Your will can also include directions regarding your funeral arrangements, such as whether you prefer to be buried or cremated.
2. Power of Attorney (POA): This legal document identifies an “agent” or person who can act on your behalf. You can choose to be very specific or very broad in the authority you assign to the POA. In some cases, a different family member may be POA for finances and/or personal property while another person is assigned to make decisions regarding medical care.
3. Living will: Also known as an advanced health care directive, a living will conveys your wishes regarding end-of-life medical care. It spells out the extent of life-extending care you want to receive in case you are unable to communicate these preferences yourself. For example, you can request that medical personnel perform invasive life-saving procedures such as resuscitation or tube feeding as needed. Alternatively, you can put in place a Do Not Resuscitate (DNR) order and request only comfort care.
4. Beneficiary designations: Beneficiary designations identify who you wish to receive a particular asset. These designations typically are made within the financial asset itself, such as a life insurance policy or an investment account. It’s important to keep your beneficiary designations up-to-date following a life change such as marriage, divorce, death of a spouse or birth of a child.
5. Inventory of key documents and contacts: Once you have the top four legal documents in place, it’s prudent to think about how your loved ones will access your accounts once you’re gone. A document that lists everything from mortgages and other bills to bank accounts, insurance policies, real estate deeds and other legal proof can be very helpful. Your executor will need passwords for online accounts and may need physical copies of birth, marriage, divorce and Social Security records. Lastly, provide complete contact information for relevant parties such as your banker, lawyer, financial advisor and insurance agent.

Although conversations about estate planning can be difficult, they’re critical to leaving the legacy you want. Talk with a trusted financial advisor who can review your entire financial picture and determine what steps you need to take to safeguard your estate.

About the Author

Supal Vora, AAMS®, APMA® CRPC®is a Private Wealth Advisor Chief Executive Officer with Pahal, Vora and Associates a private wealth advisory practice of Ameriprise Financial Services, LLC. He specializes in fee-based financial planning and asset management strategies and has been in practice for 18 years. Visit www.pahalvoraandassociates.com or call (904) 571-1495.

Estate Plan

Supal Vora

Last will and testament

Power of Attorney

Living will

Beneficiary designations

Inventory of key documents and contacts

guardians for minor children

For the second time in 10 months, the US Congress has approved a fiscal stimulus plan that is designed to provide a financial boost to a wide range of Americans in response to hardships created by the COVID-19 pandemic. This includes individuals, businesses and other organizations. The legislation was part of a comprehensive package that passed both the House and Senate on December 21, 2020 and was signed into law on December 27.

While the $900 billion+ package is structured somewhat similarly to a stimulus program put forward in March 2020, the level of benefits are generally reduced from that time. Nevertheless, it does offer some help for those struggling due to the economic fallout from the continuation of the pandemic. Here are five key areas of support included in the plan:

#1 Direct payments of up to $600 per person

Economic impact payments of $600 will be made for individuals earning up to $75,000 per year based on adjusted gross income (AGI) in 2019. Married couples with AGI of up to $150,000 will receive $1,200. In addition, a $600 payment is provided for each dependent child. Payments phase out for those with higher incomes. Single taxpayers with a 2019 AGI of $87,000+ or married couples with a 2019 AGI of $174,000+ are not eligible for any payments under this plan. If the IRS has direct deposit information for one of your bank accounts, you will receive the money that way. Others will receive a physical check in the mail.

 #2 Added unemployment benefits

With millions of Americans still unemployed, Congress has approved a modest expansion of benefits by up to $300 per week. This added benefit is scheduled to run until mid-March 2021. Provisions also extend the Pandemic Unemployment Assistance program that offers benefits to those in non-traditional employment such as gig workers and the self-employed.

#3 Rental assistance

The legislation addresses what has been touted as a potential avalanche of evictions of renters. It extends until January 31, 2021 a moratorium on evictions that was slated to expire at the end of 2020. It is possible that the federal government will extend the deadline beyond that date. Included in the bill is $25 billion in emergency assistance to renters to help cover their rental costs. These funds can be used to pay past due and future rent payments as well as utility bills. It is not clear exactly how that money will be distributed.

 #4 Childcare assistance

Additional funding is provided to give states the flexibility to provide child care assistance to families. The bill also includes funding (managed by each state) for direct financial support to childcare providers to help cover their operating expenses.

#5 More financial backing for business owners

The Paycheck Protection Program (PPP), which provides forgivable loans to eligible businesses, is included in this package. $284 billion of funding is earmarked for first and second PPP loans. While small businesses are a primary target, the funds are also available to non-profit organizations, churches and faith-based organizations. An additional $15 billion was set aside to support live performance venues, independent movie theaters and cultural institutions.

 Also included under the business-related provisions is a clarification on tax treatment of expenses covered by PPP loans. Businesses that received loans and had them forgiven are still allowed to deduct the costs covered by those loans on their federal tax returns.An additional provision in the measure reinstates a full tax deduction for corporate meal expenses. This had been limited to a 50 percent deduction under previous law.

This is a time when you want to be sure to balance decisions that address your short-term financial obstacles with your long-term financial plan. Touch base with your financial advisor to discuss your situation and best strategies to cope with this challenging time.

About the Author
Supal Vora, AAMS®, APMA® CRPC®is a Private Wealth Advisor Chief Executive Officer with Pahal, Vora and Associates a private wealth advisory practice of Ameriprise Financial Services, LLC. He specializes in fee-based financial planning and asset management strategies and has been in practice for 18 years. Visit www.pahalvoraandassociates.com or call (904) 571-1495.

COVID-19 pandemic

unemployment benefits

Rental assistance

financial backing for business owners

Paycheck Protection Program

If you or your loved ones are contemplating the buy-or-rent decision, consider these questions to inform your next move.

1. How likely are you to stay in the community? Americans move far more frequently than they used to. If you won’t be staying put for long, renting is fiscally wise. Closing costs add up, whether you’re buying or selling, especially when you do so in quick succession. By contrast, renters typically only have to shell out a damage deposit, which generally can be recouped at the end of the rental agreement.
2. Are prices stable, falling or rising in your area? Look at the trends in home values in your area to assess whether buying a house is a good investment. Consider the reputation of local schools and hospitals, planned development and other factors that affect resale value.
3. Is all your rent going to waste? Rent paid to a landlord can seem like a throwaway expense, because renters gain no equity in the arrangement. However, if the roof over your head is adequate and the cost is less than what you could adequately find in the housing market, you can get ahead of the game by investing the difference. A handful of states offer some type of rental tax credits. If applicable, factor this tax savings into your number crunching.
4. Are you ready for the responsibilities of ownership? Some people love doing the work it takes to maintain a home. Others, not so much. It takes skills, willingness and time in your schedule to be your own handyman or gardener. But if you don’t care for the workload, or if your workday doesn’t permit much puttering around the house, you’ll need to set aside additional funds to hire someone to do the work or risk devaluation of your investment.
5. Will a home purchase leave you cash poor? Many Americans count their home equity as part of their retirement savings, yet the market crash of 2008 is one reminder that it’s risky to pour everything into your home and neglect other forms of saving. Economies can falter. Neighborhoods can change. Natural disasters can occur. And property taxes can go up, increasing the cost of home ownership.

Individual circumstances will dictate whether home ownership makes economic sense. A financial professional can help evaluate readiness to afford monthly mortgage payments and other expenses of home ownership, including the cost of home maintenance. Avoid rushing your decision to ensure your next step is a sound one.

About the Author Supal Vora, AAMS®, APMA® CRPC®is a Private Wealth Advisor Chief Executive Officer with Pahal, Vora and Associates a private wealth advisory practice of Ameriprise Financial Services, LLC. He specializes in fee-based financial planning and asset management strategies and has been in practice for 18 years. Visit www.pahalvoraandassociates.com or call (904) 571-1495. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2021 Ameriprise Financial, Inc. All rights reserved.

Important life goal

Buy-or-rent decision

Rental agreement

Monthly mortgage payments

Natural disasters

Financial decision

Rental tax credits

Best financial decision

Financial professional

Home maintenance

Bitcoin has recorded an impressive bullish performance this year and the cryptocurrency doesn’t appear to be slowing down. Bitcoin has more than doubled its price in the year-to-date period; it is currently trading up around $35,000, a price that is exponentially higher than the trading price of gold.

In the early days of Bitcoin, traditional financial institutions and many Wall Street experts were at the forefront of riling, undermining, and castigating Bitcoin and its users. One of the main reasons behind the initial skepticism that Bitcoin faced in the investment community was the bad imagery that linked up Bitcoin as the preferred payment instrument for criminal activities.

However, Bitcoin has enjoyed a rebirth in recent times and Wall Street is starting to warm up to the idea of a world where Bitcoin is accepted as legal tender. This piece looks at three of the most optimistic Bitcoin predictions from Wall Street analysts.

Saxo Bank analyst predicts Bitcoin at $100,000 in 10 years

Saxo Bank analyst Kay Van-Petersen was one of the earliest Wall Street analysts to see the latent potential in Bitcoin. In December 2016, he predicted that Bitcoin would rise almost 165% from $754 (at that time) to $2000 in 2017. His outrageous prediction is right; and now, Bitcoin is trading at $35,000.

Van-Petersen is back with another “outrageous” prediction. This time, he thinks Bitcoin can score another huge increase to trade around $100,000 in the next one to two years. Van-Petersen is putting his name on the line to tout bullish prospects of Bitcoin. In his words, “This is not a fad, cryptocurrencies are here to stay… There will emerge two to three main ones. Bitcoin will be one of those. And the reason is the first-mover advantage, the scale and the pioneering.”

Analysts say Bitcoin could reach $1M if the conditions are right.

Bitcoin technopreneurs predict Bitcoin at $250,000 by 2023

BitGo Software Engineer Jameson Lopp was one of the early tech adopters of Bitcoin and he heavily invested in the future of the cryptocurrency. Lopp submits that Bitcoin has been exhibiting a seven-year trend underlying a 0.66% daily increase in price. He also quotes the recent massive uptrend to above $40,000 to support his thesis.

Lopp submits that we can expect Bitcoin to be trading around $250,000 by 2023 if the exponential power of compound interest continues to play out. In his words, the Bitcoin price increase “is not linear due to the miracle of compound “interest.” 0.42 percent of tomorrow’s value is > 0.42 percent of today’s value.”

Jim Cramer predicts Bitcoin at $1M someday

Jim Cramer often makes some interesting predictions and he has joined the Bitcoin bulls to predict that the cryptocurrency has an impressive upside potential ahead. Cramer, while speaking on CNBC’s “Squawk on the Street” observes that Bitcoin is shaping up to be a great solution for keeping firms in business against the existential threat of increased cyberterrorism.

He notes that Bitcoin could rise as much as $1M someday in the future if the pace of adoption of the cryptocurrency doesn’t slow down. In Cramer’s words, Bitcoin is surging because” European banks are frantically trying to buy them so they can pay off ransomware. It’s a short-term way to be able to deal with cybersecurity.”

About the Author

Amith Nirgunarthy’s demonstrated history of working in the internet industry coupled with strong entrepreneurship and analytical skills have helped him advise, start and exit bitcoin and crypto companies since 2013. He was first introduced to Bitcoin and its technology eco-system in India and continues to leverage his network, connecting South Asia to Russia, China and North America. He is currently the CEO and Co-founder of Blockstreet.™

Amith recently launched a new crypto fund and can be reached at 1-803-SATOSHI.

Amith Nirgunarthy

Bitcoin

Wall Street analysts

Saxo Bank analyst

Jim Cramer

Wall Street experts

Engineer Jameson Lopp

traditional financial institutions

impressive upside potential

BitGo Software Engineer

preferred payment instrument

By Supal Vora, Private Wealth Advisor

There’s no denying that it can take some work to create good habits. Becoming more disciplined about your finances is no different. Yet smart money habits can pay off over time, helping you increase your bank account and help you create a more stable financial life. Consider these five tips to help you improve your financial acumen.

Practice the principle of mindfulness
It’s as simple as paying attention to your spending habits and putting the brakes on impulsive purchases. When you’re intentional with your money, you make rational decisions based on what you can afford and what you need. Strategies to help you be more mindful include creating a monthly budget, making lists before going to the grocery store and holding off on large purchases until you can really afford them.
Keep tabs on your financial transactions.
Be vigilant about every financial transaction, no matter how small. Even though checkout clerks use computerized registers, they can still make mistakes when entering items or making change. Whether you’re at the grocery store or the department store, watch as items are rung up to ensure you’re being charged appropriately. Check your receipts. Count your change. In the case of banking errors, what you don’t know can hurt your bottom line. Check your online bank statements daily to monitor charges and also watch for fraud, which is on the rise.

Show respect for currency.
When you mistreat money, you diminish its value and give yourself permission to abuse it. Don’t wad up your bills or allow change to accumulate on the bottom of your purse. Instead, store it carefully and keep track of what you have.

Play your cards right.
It used to be that a major credit card was absolutely required for online purchases and travel reservations such as airline tickets, hotel rooms and car rentals. In today’s economy, it’s possible to manage many, if not all of these transactions with a debit card. Credit cards can provide advantages through their reward programs, and disciplined use can help build creditworthiness. Yet many cards come with an annual fee and hefty interest rates when you carry a balance. To limit credit card spending, consider keeping your credit card at home and carry only your debit card in your wallet.

Look within and remove barriers to financial freedom.
If you’ve had a hard time making wise financial decisions in the past, you may be unconsciously sabotaging yourself. For the most part, money attitudes arise from a complex mix of upbringing, culture and self-control. To help overcome this, focus on the things you consistently spend too much on. Is it dining out? Shopping for clothes? Taking vacations? Hone in on whatever your “weakness” is and try to change your spending habits in a particular area.

While each of these five tips can help you build your financial muscle, one of the best things you can do for your financial life is to meet regularly with a financial professional. An experienced financial advisor can provide financial coaching, helping you identify specific strategies for saving and investing for your future. Find a qualified professional whom you can trust to discuss all aspects of your financial life. Meet annually or as often as you require to discuss your financial goals and adjust your spending and saving habits to stay on track.

About the Author
Supal Vora, AAMS®, APMA® CRPC®is a Private Wealth Advisor Chief Executive Officer with Pahal, Vora and Associates a private wealth advisory practice of Ameriprise Financial Services, LLC. He specializes in fee-based financial planning and asset management strategies and has been in practice for 18 years. Visit www.pahalvoraandassociates.com or call (904) 571-1495. 

Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Ameriprise Financial Services, LLC. Member FINRA and SIPC. 

© 2021 Ameriprise Financial, Inc. All rights reserved.

smart money habits

supal vora

practice the principle of mindfulness

financial transactions

respect for currency

play your cards right

barriers to financial freedom

financial goals