TOP 11 FINANCIAL NEW YEAR’S RESOLUTIONS
As we think about the months ahead, it’s the perfect opportunity to address your financial plans. While many of you already have your finances in good order, here are some great ideas you might want to review for future planning. And if you have older children or friends you think could use this advice, please share it with others.
CONGRATULATIONS ARE IN ORDER AGAIN!
In November, Axiom was proud to sponsor a One Southern Indiana 2020 ONCE Award, which honor outstanding business leaders in our community. Axiom sponsored the James W. Robinson Young Professional of the Year ACE Award, given to Dr. Joshua Kornberg. At the time, Dr. Kornberg was the executive director of Ivy Tech Community College in Sellersburg.
We are so happy to congratulate Dr. Kornberg once again, as he was recently named executive director of The Caesars Foundation of Floyd County. His role as head of the charitable foundation for Caesars Southern Indiana Casino is his first on the funder side of the nonprofit industry.
In an article for Louisville Business First, Dr. Kornberg says, “I would consider Caesars Foundation a philanthropic powerhouse in our community. It does just so many incredible things for so many nonprofits and small startup businesses.”
The Foundation, established in 1999, has awarded $51.6 million to organizations in Floyd County.
Teach Your Child About Money During COVID
While children in most areas of the country are still doing remote learning, there are some lessons parents can teach that are not part of the usual curriculum. This is a perfect time to talk to your young children about money, spending and saving.
In this article, the Child Mind Institute gives useful ideas on how to start the conversation around good spending habits. Click here to learn more.
The website Education.com offers free worksheets that have money lessons on topics like how to make change, and identifying the different types of coins and their values. Click here to learn more.
An activity the whole family can enjoy is playing money-themed board games such as “Monopoly” or “The Game of Life”. This is a fun way to teach kids money concepts while having a good time.
TAX CHANGES TO NOTE
Here are some important changes in tax laws that may affect your filing in 2021, courtesy of CNBC. It offers the latest on tax brackets, retirement accounts, and health savings accounts.
The IRS also bumped your standard deduction for the 2020 tax year, which could reduce your taxable income.
The current standard deduction is $12,400 for singles, up from $12,200 in the prior year, and $24,800 for married joint filers, up from $24,400 in 2019.
Boost Retirement Savings
If you’ve resolved to save a few extra dollars in your retirement account at work, the IRS has raised the employee contribution limit for 401(k), 403(b) and most 457 plans to $19,500, up from $19,000 in 2019.
If you’re age 50 or older, you can kick in an additional $6,500. That’s also a bump up from $6,000 in 2019.
The contribution limit for individual retirement accounts, whether traditional or Roth, is still at $6,000, plus another $1,000 for savers 50 and over.
One caveat: The IRS limits high-income earners’ ability to make direct contributions to Roth IRAs — accounts in which you can save after-tax dollars, have the money grow tax-free and use it in retirement free of taxes.
More Health Saving Opportunities
As of 2020, you can also save more in a health savings account.
These accounts allow you to put away pretax or tax-deductible money and have it grow free of taxes. You can take a tax-free withdrawal to cover qualified health expenses.
This year, you can save up to $3,550 if you’re an individual with self-only health coverage. That’s up from $3,500 in 2019. Account holders with family plans can save up to $7,100 in this account, up from $7,000 in 2019.
LIONS STREET ANNOUNCEMENT
Axiom Financial Strategies Group is excited to announce a new partnership that will greatly enhance the services and resources we provide. After carefully researching and evaluating ways to improve our client experience, we are proud to launch Axiom Insurance Solutions LLC. This move will increase our ability to address client needs with long-term care, life insurance, annuities and more.
Axiom Insurance Solutions will operate as an “Owner Firm” of Lion Street, Inc., a leading national financial services company. Lion Street is comprised of an elite network of Firms that specialize in financial solutions for high-net-worth individuals, family offices, business owners and corporate clients. Lion Street Firms gain favored access to insurance carriers and financial institutions, and the products and services they offer. This strengthens our ability to meet the complex planning requirements of our clients.
It is important to know that this partnership will not change the relationship between our clients and our team. Rather, it is Axiom’s commitment to deliver best-in-class tools to everyone we serve. Growing our resources is yet another way to provide independent, objective and personalized financial solutions.
Please let us know if you have interest in or questions about Axiom Insurance Solutions. We’re here to help.
Axiom Financial Strategies Group, LLC is a federally registered investment adviser under the Investment Advisers Act of 1940. Information about Axiom Financial Strategies Group, LLC can be found by visiting www.adviserinfo.sec.gov and searching by the adviser’s name. This is prepared for informational purposes only. It does not address specific investment objectives. Information in these materials are from sources Axiom Financial Strategies Group, LLC deems reliable, however we do not attest to their accuracy.
Axiom does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
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