Millennials, as a generation, have had a tough go, financially speaking. Older millennials graduated college right in time for not just one, but two recessions. Throw in high levels of student debt, stagnant wages, and raging inflation, and it's a small miracle millennials have retirement savings at all. But as of last year, millennials had an average 401(k) balance of $67,300, according to Fidelity. That's not a huge amount of savings per se. But it's also not dire at all. Where to invest $1,000 right n ...

Core Insights - The article discusses strategies to protect 401(k) investments from stock market volatility, particularly in the context of President Trump's return to office and the associated market fluctuations. Group 1: Market Volatility - Stock market turbulence has been a significant concern for investors since January 2025, particularly following the "Liberation Day" tariffs announced by President Trump, which caused a notable drop in the S&P 500 by 11% from April 2 to April 8, 2025, before it rebounded [1]. - Personal finance expert Suze Orman emphasizes that acting on panic during market declines can lead to locking in losses, making recovery difficult, as the markets have shown a quick recovery from earlier losses [2]. Group 2: Investment Strategies - Proper diversification is highlighted as a prudent strategy to protect 401(k) portfolios from market volatility, suggesting a mix of stocks and bonds to mitigate the impact of market swings [3][4]. - Rebalancing portfolios on a scheduled basis, ideally once or twice a year, is recommended to maintain desired asset allocation, although frequent rebalancing in response to volatility can lead to increased transaction costs and eroded gains [5].

Group 1 - The article discusses the importance of managing tax payments to avoid penalties, emphasizing that paying at least 90% of the current year's tax or 100% of the previous year's tax can help avoid penalties [1] - It highlights the necessity of reviewing credit reports for errors, advising individuals to contact credit bureaus to dispute inaccuracies [2][3] - The article suggests budgeting for "this year-only" expenses and maintaining an emergency savings account to cover unexpected life events [4][5] Group 2 - It outlines a timeline for financial planning throughout the year, including key dates for tax payments and retirement contributions [7][13][14] - The article emphasizes the importance of reviewing financial allocations and beneficiaries mid-year to ensure they align with current circumstances [20][22] - It encourages individuals to consider education savings plans and charitable contributions as part of their financial strategy [23][25]

Don't ring in the new year until you have milked 2025 for every tax savings you can. Yes, there are still savings to be had but you have less than 48 hours to grab them. Below is a list of the best tips from experts for tax savings before saying goodbye to 2025. A tax break only available for 2 days Thanks to the the SECURE 2.0 Act of 2022, if you’re under 59-1/2 years old, you can take up to $2,500 from a retirement plan to pay qualified long-term care insurance premiums without a 10% early withdrawal ...

Key Points - The article discusses important changes in retirement savings plans as 2026 approaches, focusing on IRA, 401(k), and HSA limits, as well as implications for higher earners [1] Group 1: IRA Changes - IRA contribution limits will increase in 2026, allowing savers under 50 to contribute up to $7,500, while those 50 and older can contribute a total of $8,600, which includes an $1,100 catch-up contribution [2][3] Group 2: 401(k) Changes - 401(k) contribution limits will also rise in 2026, with the maximum contribution for savers under 50 increasing to $24,500, and for those 50 and older, the total allowable contribution will be $32,500, including an $8,000 catch-up contribution [4] - A new super catch-up option will allow savers aged 60 to 63 to contribute an additional $11,250, bringing their total limit to $35,750 [5] - Starting in 2026, higher earners (those earning over $145,000) will only be able to make 401(k) catch-up contributions through a Roth 401(k) [6] Group 3: HSA Changes - HSA contribution limits will increase in 2026, allowing individuals with self-only coverage to contribute up to $4,400 and those with family coverage to contribute up to $8,750. Additionally, individuals aged 55 and older can make a $1,000 catch-up contribution [9]

Core Insights - The IRS announced significant changes to 401(k) contribution limits, impacting retirement savers across various age groups [1][2][5]. Contribution Limits - The annual contribution limit for 401(k) plans will increase to $24,500 in 2026, up from $23,500 in 2025, allowing an additional $1,000 pre-tax contribution [5][6]. - For workers aged 50 and older, the total contribution limit will rise to $32,500, which includes an $8,000 catch-up contribution [5][6]. Impact on Retirement Planning - These changes are designed to reflect cost of living adjustments, similar to those seen in social security payments, thereby providing more opportunities for retirement savings [3][6]. - The increased contribution limits are expected to benefit both high-income earners, who can gain substantial tax breaks, and younger investors, who can leverage a longer investment horizon for retirement growth [7]. Focus on Older Investors - Notable changes have been made specifically for investors aged 50 and above, emphasizing the importance of maximizing retirement savings as they approach retirement [9][10].

Core Insights - The typical American aged 65 to 74 had $200,000 in retirement savings as of 2022, indicating that many older Americans rely heavily on Social Security to meet their financial needs [1] Group 1: Retirement Savings Strategies - Starting early in contributing to retirement accounts like IRAs or 401(k)s is crucial for wealth accumulation, even with small amounts [4] - Extending the savings period significantly increases the potential retirement nest egg; for example, saving $400 monthly for 30 years could yield around $544,000, while extending it to 40 years could result in approximately $1.243 million, assuming an 8% return [5] - Investing wisely is essential; a conservative approach may lead to lower returns, while a stock-heavy portfolio can provide reasonable returns [7] Group 2: Investment and Spending Habits - Diversification across market segments and maintaining a long-term perspective during market downturns can help protect retirement portfolios [8] - Mindful spending on experiences rather than cutting back on all enjoyable activities can enhance quality of life while still contributing to retirement savings [9][10] - Careful selection of splurges allows individuals to enjoy life without compromising their financial goals, leading to a comfortable retirement [11]

Core Insights - Many retirees face hidden fees that can significantly impact their fixed income and savings, particularly in retirement accounts and healthcare costs [1][2]. Retirement Account Fees - The average annual spending for individuals aged 65 and older is $60,087, but they may incur additional, often unnoticed, retirement account fees ranging from 0.5% to 1.5% or higher [3]. - Common fees include rollover fees, account closing fees, expense ratios on mutual funds and ETFs, marketing or distribution fees, trading costs, custodial fees, service fees, and robo-advisor fees [7]. Health Insurance Fees - Retirees typically incur healthcare costs, and even with Medicare, there may be additional expenses for medical devices or long-term care [5]. - The income-related monthly adjustment amount (IRMAA) can lead to higher Medicare premiums, which can range from $259 to $628.90 depending on income [6].

Core Points - New IRS rules will restrict catch-up contributions for high earners aged 50 and up, effective from 2027, with some plans potentially implementing changes as early as next year [1][2] - Workers earning over $145,000 in the previous year will only be able to make catch-up contributions to their 401(k) and other workplace plans using after-tax (Roth) dollars, eliminating the option for pretax contributions [1][4] Summary of New Rules - Catch-up contributions allow individuals aged 50 and above to contribute more to retirement accounts, with the standard 401(k) contribution limit set at $23,500 for 2025, plus an additional $7,500 for catch-up contributions [4] - Workers aged 60-63 can qualify for a temporary "super" catch-up contribution of $11,250 [4] - High earners will lose the tax deduction associated with pretax contributions, which lower taxable income in the contribution year, while Roth contributions do not provide current tax reductions but allow for tax-free growth and withdrawals in retirement [4][5] Implications for High Earners - High earners will be required to make all catch-up contributions into the Roth bucket, which may limit their tax strategy options [5] - For those earning less than $145,000, the choice between pretax and Roth contributions remains available [5] - Roth contributions can provide a diversified tax strategy in retirement, offering a mix of taxable and tax-free accounts, which could be beneficial if tax rates increase in the future [6]

Table of Contents As filed with the Securities and Exchange Commission on May 10, 2023 Registration No. 333-270496 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 PRE-EFFECTIVE AMENDMENT No. 2 TO THE FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 BV Financial, Inc. BayVanguard Bank 401(k) Profit Sharing Plan (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) Maryland 6036 14-1920944 (Primary Standard ...