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How Changes in Life Can Save You Money

How Changes in Life Can Save You Money

by | Mar 24, 2025 | Family Finances

How Changes in Your LIfe Can Save You Money

Family Finances

new baby_new parents_life changes

Did you know certain life events can save you money at tax time?

man and woman putting on wedding rings

1. Getting married

Did you know that getting married often results in a welcoming tax break? Filing jointly will typically award you lower tax rates, as well as higher deductions and credits. This is due to lower federal tax rates for couples compared to filing as single. Even if you waited until the last day of the year to get married, you are still considered married all year when it comes tax time and can reap the rewards of tying the knot.  (However, this is not guaranteed and there may be instances where being married can increase your taxes.)

couple holding keys

2. Buying a new home

Homeownership is a big commitment with a lot of upfront costs. However, it is also one of the biggest tax savings people see. The IRA offers a range of tax credits and deductions designed to lighten the financial load for homeowners.

One of the biggest tax benefits of homeownership is the home mortgage interest deduction. This deduction allows you to subtract the interest you pay on your mortgage loans from your taxable income, resulting in potential savings come tax time.

Additionally, property taxes may offer tax savings through the property tax deduction. This deduction allows homeowners to offset some of the financial burden of property taxes by deducting them from their taxable income. To claim it, you will need to itemize your deductions on Schedule A on form 1040. This can be a smart financial move and keep more of your hard-earned money in your pocket.

hospital_having baby_new parents

3. Having a baby

Did you have a baby last year? If so, congratulations! Not only on the new baby but also on the new tax deductions and credits you are now eligible for. Some of the tax benefits you will receive for having a baby are the Child Tax credit, and if you pay for child care, the Child and Dependent Care Credit.

For the 2024 tax year (taxes filed in 2025), the credit is worth up to $2,000 per qualifying dependent child, and the refundable portion is worth up to $1,700. The credit amount remains the same for 2025 (taxes filed in 2026).

The child and dependent care tax credit is designed to help people who work or are looking for work offset expenses related to the care of a child under 13 or a dependent with a disability. It’s important to notice that this credit is nonrefundable. This means that any taxes owed will be decreased by the credit amount, but taxpayers will not receive any overage of the credit in the form of a refund once their tax bill goes down to $0. Generally, the child and dependent care tax credit is worth 20% to 35% of up to $3,000 (for one qualifying dependent) or $6,000 (for two or more qualifying dependents). This means that the maximum child and dependent care credit is $1,050 for one dependent or $2,100 for two or more dependents.

retirement_seniors_planning_finances

4. Retirement contributions and distributions

Contributing to a retirement plan or a 401K plan can get you rewarding tax deductions. However, once you start withdrawing money out of your retirement account, expect to be taxed on that distribution.

While this is only a few of life’s events, there are many of these life transitions that bring big tax benefits. It is important to know what you qualify for and what their rules are prior to filing your taxes each year.

The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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Roth IRA vs. Traditional IRA: Which is Right for You?

Roth IRA vs. Traditional IRA: Which is Right for You?

by | Mar 12, 2025 | Family Finances, Retirement

Roth IRA vs Traditional IRA: Which is Right for You?

Family Finances | Retirement

retirement_roth_traditional_ira

When it comes to retirement planning, Individual Retirement Accounts (IRAs) are a popular choice for many investors. There are two main types of IRAs: Roth IRAs and Traditional IRAs. Both offer tax advantages, but they function differently. Understanding the key differences between the two can help you decide which one is best suited for your financial goals and retirement needs.

1. Tax Treatment: The Key Difference

The primary distinction between a Roth IRA and a Traditional IRA lies in how and when they are taxed.

  • Traditional IRA: Contributions to a Traditional IRA are typically tax-deductible in the year you make them. This means that if you contribute $6,000 (the annual limit for those under 50), your taxable income for that year is reduced by that amount. For example, if you earn $50,000 and contribute $6,000 to a Traditional IRA, your taxable income is only $44,000 for that year. The catch, however, is that when you withdraw money during retirement, those withdrawals are taxed as ordinary income.
  • Roth IRA: Contributions to a Roth IRA are made with after-tax dollars. You don’t get a tax deduction in the year you contribute. However, the big benefit is that once you reach retirement age, your withdrawals are completely tax-free, provided you meet certain conditions (such as being over 59 ½ and having the account for at least five years). This can be particularly advantageous if you expect to be in a higher tax bracket when you retire.
bike_seniors_summer

2. Contribution Limits

For 2025, the contribution limit for both types of IRAs is $6,500 per year if you’re under 50, and $7,500 if you're 50 or older, allowing for “catch-up” contributions. However, the eligibility to contribute to a Roth IRA phases out based on your income, while Traditional IRA contributions can still be made regardless of your income level, although the tax-deductible portion may be limited if you or your spouse participate in an employer-sponsored retirement plan.

3. Eligibility and Income Limits

Not everyone is eligible to contribute to a Roth IRA, especially if they earn a high income. Here’s a closer look at the eligibility for each account:

  • Traditional IRA: Anyone can contribute to a Traditional IRA as long as they have earned income (like wages or self-employment income). The tax deduction on contributions, however, can be limited if you, or your spouse, are covered by a retirement plan at work and your income exceeds certain thresholds. For example, in 2025, single filers making $73,000 or more or married couples earning $116,000 or more may not be eligible for a full deduction.
  • Roth IRA: Roth IRA eligibility is based on your modified adjusted gross income (MAGI). In 2025, if you're a single filer earning $153,000 or more or a married couple earning $228,000 or more, you’re ineligible to contribute directly to a Roth IRA.

4. Withdrawal Rules

When it comes to withdrawals, Roth and Traditional IRAs have different rules:

  • Traditional IRA: You can start taking withdrawals at age 59 ½, but all withdrawals are taxed as ordinary income. There’s also a Required Minimum Distribution (RMD) starting at age 73. This means you’re required to begin withdrawing a certain amount each year, which will be taxed.
  • Roth IRA: Since you’ve already paid taxes on your contributions, Roth IRAs allow you to withdraw your contributions at any time without penalties or taxes. Once you reach age 59 ½ and have held the Roth IRA for at least five years, you can also withdraw the earnings tax-free. There are no RMDs with a Roth IRA, so your money can continue to grow tax-free for as long as you want, even beyond retirement.

5. Ideal Scenarios for Each Account

While both IRAs can be beneficial, they are suited to different types of individuals depending on their financial situation.

  • Traditional IRA: A Traditional IRA may be the right choice if you want immediate tax savings and expect your tax rate to be lower during retirement. If you're in your peak earning years, contributing to a Traditional IRA can lower your taxable income now. Additionally, if you anticipate being in a lower tax bracket in retirement, paying taxes on withdrawals at that time could be advantageous.
  • Roth IRA: A Roth IRA is best for individuals who expect to be in the same or a higher tax bracket during retirement. If you’re early in your career and your tax rate is relatively low, contributing to a Roth IRA allows you to lock in today’s lower tax rates while benefiting from tax-free growth and withdrawals later on. It's also a great option if you want more flexibility in retirement and prefer not to worry about RMDs.

Conclusion: Which IRA is Better for You?

Roth IRAs tend to offer more flexibility due to their tax-free withdrawals and lack of RMDs. Traditional IRAs are more rigid, with RMDs at age 73, which could force retirees to take taxable distributions whether they need the funds or not. Ultimately, the choice between a Roth IRA and a Traditional IRA depends on your personal financial goals, income level, and retirement plans.

In some cases, individuals may even choose to invest in both types of accounts, diversifying their tax strategy for the future. Whichever you choose, it’s important to start saving early and take full advantage of these retirement tools to build a more secure financial future.

The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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7 Tips to Help You Boost Your Retirement Savings

7 Tips to Help You Boost Your Retirement Savings

by | Mar 4, 2025 | Family Finances, Retirement

7 Tips to Help You Boose Your Retirement Savings

Family Finances | Retirement

retirement_piggy bank_money_Savings

Most people hope to retire one day, but many don’t know how to get there. Saving enough money to retire can be a scary task, especially if you’re just starting out. But developing a plan and taking advantage of every savings opportunity available to you, can help ease the stress and set you on the path to financial freedom in your retirement years.

Here are seven tips to consider when trying to boot your retirement savings.

1. Start saving today

Getting started as soon as you can has a big impact on your retirement in the future. For many people, retirement is decades away, so the money you save today will have more time to grow and be worth more during retirement than the money you invest later on.

But what if you don’t have a lot of money to save now? That’s ok! Starting small can still make an impact. If you start investing $75 per month during your 20s, you’ll have more at age 65 than if you waited to start saving $100 per month in your 30s. The extra time your money has to earn interest and grow, could mean the difference between retiring or working a few more years.

2. Contribute to your 401(k) or workplace retirement plan

The easiest way to start investing is through an employer sponsored retirement plan, such as a 401(k) plan. With a workplace retirement plan, you can decide how much you’d like to contribute toward your plan each pay period. Some employers will even match your contributions, up to a certain amount.

Workplace retirement plans can take several forms. The two most common are 401(k) and 403(b) plans. But if you are self-employed or a small business owner, there are retirement options available to you as well.

Employer 401(k)

A 401(k) is a retirement savings plan offered by an employer, allowing you to contribute a portion of your salary into an investment account. The contributions are often made pre-tax, which can reduce taxable income for the year. Employers may also offer matching contributions, meaning they will contribute additional funds to your 401(k) based on your own contributions. This account grows over time through investments and is intended to provide financial security in retirement. There are rules about when and how you can access the funds, with penalties for early withdrawals.

Employer 403(b)

A 403(b) is a retirement savings plan offered by certain employers, typically in the public sector or non-profit organizations, such as schools, hospitals, and charities. Similar to a 401(k), employees can contribute a portion of their salary on a pre-tax basis, which reduces their taxable income for the year. However, they tend to have fewer investment options than 401(k) plans, and it is less common for employers to offer contribution matching. The money in a 403(b) grows tax-deferred until withdrawn, usually in retirement.

Solo 401(k)s, SIMPLE IRAs, and SEP IRAs

If you’re self-employed or own a small business, additional retirement plan options are available to you. Each have their own rules and regulations. These include, Solo 401(k)s, SIMPLE IRAs, and SEP IRAs.

Need an advisor?

Need expert guidance when it comes to managing your investments or planning for retirement? JVB Trust Services can connect you to professionals to help you achieve your financial goals.

 

3. Use your employer’s company match

Another bonus of workplace retirement plans is the employer match. An employer match for a retirement plan is when your employer contributes additional money to your retirement account based on how much you contribute. For example, if you contribute a certain percentage of your salary to your 401(k) or 403(b), your employer may match a portion of that contribution, often dollar-for-dollar or up to a certain limit. You always want to make sure you’re at least contributing enough to receive the full amount of any employer match available to you.

4. Deal with your debt as soon as possible

One thing that has a major impact on your ability to save is debt. This is especially true if you’re trying to save for retirement. Focus on paying off high-cost debt such as credit card balances and student loans. These loans come with higher interest rates, making it vital to pay-off as soon as possible. Additionally, if you have a mortgage, you want to try and pay it off before reaching retirement age – this will make living on a fixed-income easier.

5. Open an IRA

A great way to boost your retirement savings is by opening an individual retirement account (IRA). Unlike your employers 401(k), IRAs come with many more investment options such as individual stocks, bonds, ETFs, mutual funds, and more. In 2025, contributions are limited to $7,000 or $8,000 if you’re age 50 or older.

  • Traditional IRA: Contributions to a Traditional IRA may be tax-deductible in the year they are made, providing an immediate reduction in taxable income. Earnings and gains are generally not taxed until the account holder begins making withdrawals. Once you reach age 73, you must start making withdrawals.
  • Roth IRA: Contributions to a Roth IRA are made with after-tax dollars, meaning they are not tax-deductible. However, qualified withdrawals in retirement are tax-free. Roth IRAs do not require you to take withdrawals, so you can let the money grow longer and pass it on to your heirs or donate it to a charitable organization.

6. Budget Spending

Understanding how you’re spending money today can help you better prepare for retirement. Usually there are habits or patterns that arise when making and tracking your monthly budget that can be eliminated or limited to help you boost your savings. Remember, saving small amounts of money now can really add up overtime.

7. Don’t forget to plan for health insurance

Premiums, out-of-pocket expenses, and critical care not covered by Medicare can quickly deplete your retirement savings. In 2023, a healthy 65-year-old couple who retired, will likely use nearly 70% of their lifetime Social Security benefits to cover their medical costs in retirement.* That’s why it’s important to plan for your medical expense for retirement.

Here are a few things to consider:

  • How much could medical expenses cost me in retirement?
  • What does Medicare cover, and how much does it cost?
  • What if I retire before I’m eligible for Medicare at age 65?
  • What about my future long-term needs?
  • Are there other ways to prepare for healthcare costs in retirement?
    • In short, the answer is yes. You could self-fund by increasing the amount you save in your 401(k) or other retirement accounts. Or you could apply for a health savings account (HSA) and begin saving money while reaping the potential tax advantages.

Conclusion

Boosting your retirement savings requires consistent action and smart strategies. By maximizing contributions leveraging tax advantages, seeking the advice of professional advisors, you can secure a stable financial future.

 

*HealthView Services, “Medicare and Social Security COLAs: Putting the 2023 Numbers into Context,” October 2023.

The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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Protecting Seniors from Financial Abuse

Protecting Seniors from Financial Abuse

by | Feb 6, 2025 | Family Finances, Fraud

Protecting Seniors from Financial Abuse

Family Finances | Fraud

senior-citizens-on-device-happy

Financial exploitation of older Americans is a growing crime in the US. Fraudsters are targeting people of all ages, but 5% of seniors become the victim of financial fraud yearly.

What is Elder Financial Exploitation?

Elder financial exploitation is the fastest-growing form of elder abuse. It is defined as the illegal, unauthorized, or improper use of an older person’s funds, property, or assets. Financial abuse can take many forms, including identity theft, use of debit or credit cards, lottery scams, telemarketing or internet scams, or abuse of power of attorney. Seniors lose at least $2.6 Billion a year due to financial abuse – and possibly more due to unreported cases.

How to protect Yourself

Preventing elder abuse can be difficult, especially since it can come from multiple sources. It is important for seniors to protect themselves by making sure financial records are organized and being aware of how much money is in all of their accounts. In event they are unable to care for themselves or become incapacitated, elders should protect their assets by talking to someone at their bank, an attorney, or a financial advisor to discuss and plan, to ensure their wishes for how their money is managed and property is cared for is followed.

Tips for Seniors

  • Carefully choose a trustworthy person, whether it’s a family member, financial advisor, or lawyer, to share your financial planning or accounts with if you are unable to do so yourself.
  • Ensure all sensitive information, such as checkbooks, account statements, and more, are locked up.
  • Regularly check your credit report to review for suspicious activity. (With an idLock Checking account, you qualify for regular credit reports and scores.)
  • Never pay a fee or taxes to collect a prize or winning.
  • Unless you’ve initiated the call, never provide personal information, including your Social Security number, account numbers, or other financial information.
  • Never rush into a financial decision. Consult with a financial advisor or attorney before signing any documents or making any major financial decisions.
  • Always check references and credentials before hiring anyone. Don’t allow anyone, but your trustworthy person access to any information about your finances.
  • Keep a paper trail, pay with credit cards, or keep notes of your checks and cash payments.

 

Tips for Family and Friends

There are many scams and fraudsters that attempt to get bank account information and personal information from the elderly to steal their identity or money. Be on the lookout for signs of possible financial abuse, including:

  • Unexplained account withdrawals
  • Sudden non-sufficient fund activity or unpaid bills
  • Another individual unexpectedly making financial decisions on the older person’s behalf
  • Disappearance of valuable possessions
  • Unanticipated transfer of assets to another individual
  • Sudden changes to a will or other important financial documents
  • Suspicious signatures on checks
  • Suspicious or out of character ATM withdrawals

What should I do if I suspect elder financial abuse?

First, trust your instincts. Exploiters are very skilled and can be charming and forceful in their effort to convince you to fall for their scam and handover your personal or financial information. Don’t be fooled – if something doesn’t feel right, it may not be right.

If you suspect elder financial abuse, talk to the victim to determine what is happening and who is involved. For instance, you’ll want to know if there is a new person in their life who is helping them manage their finances or if they’ve downloaded new software on their computer because someone told them it needed updated.

Once you’ve figured out what is happening, report elder financial exploitation.

For more information on elder financial abuse, visit:

Protecting older adults from fraud and financial exploitation

What is Financial Exploitation?

The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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How to Recognize a Phone Scam

How to Recognize a Phone Scam

by | Jan 29, 2025 | Fraud

How to Recognize a Phone Scam

Fraud

phone-alert-alarm-scam

Have you ever received a phone call and wondered, is this legit? In 2024, scammers stole over $1.03 trillion globally and the majority of these scams are delivered via phone calls or text/SMS messages. * Scammers have figured out countless ways to cheat you out of your money and personal information. They’ll do whatever it takes to commit identity theft, which is why its important to recognize a phone scam.

Phone scams come in many shapes and forms, but they tend to have commonalties. Here’s what to know:

1. There is no prize.

You get a call or text saying you won a sweepstakes, lottery, or prize – like a gift card or iPad – but they say you have to pay money or give account information to receive said prize. If you have to pay to get your prize, it’s a scam. If you have to pay to increase your odds of winning, it’s a scam. (It’s also illegal). If you have to give your financial or personal information, it’s a scam. Plenty of contests are run by reputable marketers but they all have clear rules they must follow, such as saying that entering is free.

2. You won’t be arrested.

Some scammers pretend to be law enforcement or a federal agency. They might say you’ll be arrested, fined, or deported if you don’t pay taxes or claiming you failed to appear for jury duty. The scammer will tell you that you can avoid arrest or other negative consequences by making a payment, including channels like Zelle, Venmo, PayPal, or purchasing a pre-paid card – and then giving the card number to the scammer. The goal is to scare you into paying. But real law enforcement and federal agencies won’t call and threaten you.

3. You don’t need to do anything “now”.

Very rarely will a reputable business request you make a decision “now”.  They will give you time to think their offer over before you commit. Don’t let yourself get pressured into make a decision on the spot.

4. Only scammers demand you pay a certain way.

Never send money to someone you don’t know. Scammers will often insist you pay in ways that make it hard for you to get your money back, including:

  • Wire Transfers
  • Money Transfers
  • P2P (Peer-to-Peer or Person-to-Person) payment services and mobile payment apps
  • Gift Cards
  • Cryptocurrency

5. Government agencies won’t call to confirm your sensitive information.

    You get a call from a government agency. To sound official, they might start by giving you their “employee ID number” and follow it up with information about you, like your name or home address. They often claim to be from the FTC, Social Security Administration, IRS, or Medicare – but sometimes they give you fake agency names. If you get a call like this, hang up and ignore it. No government agency is going to randomly call you and ask for sensitive information, like your Social Security number.

    How to Stop Calls from Scammers

    Now that we’ve covered a few of the common phone scams, it’s important to learn how to stop calls from scammers.

    1. Hang up.

    First and foremost, if you receive a phone call from a scammer or even a company you don’t want to be doing business with, hang up. If it’s a robocall, don’t press any buttons – even when it urges you to press 1 to be removed from their call list.

    1. Consider call blocking or call labeling.

    Scammers do not care if you’re on the National Do Not Call Registry. That’s why blocking a phone number is your best defense against unwanted calls. Not sure how, or not sure what options are available to you with your phone carrier? See what services your carrier offers and look online for the best reviews. The FTC offers great resources on how to block unwanted calls.

    1. Don’t trust your caller ID.

    Scammers have the technology to make any name or number show up on your caller ID. This is called spoofing. You may not be able to tell right away if an incoming call is spoofed. Be extremely careful about responding to any request for personal information. Additionally, do not respond to any questions, especially those that can be answered with “Yes” or “No”.

    If you’ve lost money to a phone scam or have information about the company or scammer who called you, tell the FTC or ReportFraud.ftc.gov.

    If you did not lose money and just want to report a call, use the reporting form at DoNotCall.gov.

    Remember, any information you provide will help stop the scammers. In 2024, 70 percent of scam victims did not report the scam. * Report the number that received the call, the number on your called ID, and any number they told you to call back. By knowing this information, law enforcement and the FTC can track down the scammers behind the call.

     

    *https://www.gasa.org/post/global-state-of-scams-report-2024-1-trillion-stolen-in-12-months-gasa-feedzai

    The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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