Building personal cash reserves will improve your financial security and prepare you for anything that comes up in the future. Whether you experience a medical emergency or want to make sure that you have something to pass on to your heirs, building cash reserves isn't difficult as long as you take the right approach. By utilizing the financial pyramid technique, you can more effectively reach your financial goals and increase your cash reserves.

When the economy is struggling and inflation is high, the rising costs of goods can make it difficult to rein in expenses. Saving money during times of inflation might seem impossible when you need to pay for your mortgage, health insurance, food, and a car payment. These expenses add up quickly. It's possible, however, to save money during inflation by creating a budget. Here are some money saving tips to keep in mind while you make a budget.

Looking for a good way to teach your kids about financial topics or a Christmas gift that keeps on giving for your children or grandchildren? Take a peak at the Money Tales series from Sheila Bair.

Everyone has big dreams of hitting the Lottery, especially now when the jackpot is so huge. What they do with those winning varies slightly from person to person but you can often hear the typical “I’d buy a house” or “A personal jet” huge purchases or the more practical “pay off all my debt”. Although, we all know the winning is taxable, less discussed is the payout options available to winners.

Lump Sum Payment

The lotto winner receives the entire value of the prize at once, taxes are due on the total amount when you file their taxes for that year. You can invest the money right away to capitalize on potential returns and you have access to liquid funds. This option is best suited for prudent individuals who can manage their money wisely.

Student Loan Forgiveness Plan

• On August 24, 2022, President Biden announced $10,000 of debt relief per federal student loan borrower for those who did not attend college on Pell Grants. He announced $20,000 for those who did attend college on Pell Grants.
• The loan forgiveness is for individuals making under $125,000 a year and families making under $250,000 a year. Loans must have been taken out by June 30, 2022.
• If you’re a current borrower and a dependent student, you will be eligible for relief based on your parents’ income rather than your own.
• Borrowers for whom the Department of Education does not have accurate income information (the majority of borrowers) will need to apply for loan forgiveness. The application should be available by early October. It will take four to six weeks for the forgiveness to appear in a borrower's loan profile, so the government recommends borrowers apply before November 15 to ensure the relief is applied by the time payments resume in January 2023. Sign up at studentaid.gov to be notified when the application opens.
• Borrowers will be able to apply for student loan forgiveness through December 31, 2023.
• President Biden also extended the pause on student loan repayments that was set to expire on August 31. Payments will begin again in January 2023.
• Something getting less attention than it should: If you made student loan payments during the pandemic pause, you can now receive a refund. Simply contact your loan servicer to begin the refund process.
• Certain states will be taxing your forgiven loan, be sure to let your accountant know that you had a forgiven loan

Proposed Changes to Income-Driven Repayment Plans

The Department of Education has proposed changes to income-driven repayment plans:

• The proposal would cap monthly payments at no more than 5% of your discretionary income, down from 10% now. Remember, discretionary income is the money left after paying taxes and essential cost-of-living expenses.
• Borrowers with undergraduate and graduate loans will pay a weighted average rate.
• The plan would also forgive loan balances after ten years, instead of the usual 20, for those with original balances of $12,000 or less.
• Under this proposal, loan balances will not grow as long as you make your monthly payments, even if you’re not required to make payments.
• If you have worked for a government agency or a nonprofit organization, you may also qualify for the Public Service Loan Forgiveness Program

After managing the grief of losing a loved one comes the potential burden and stress of managing an inheritance. Here are a few tips to help you through the process.

Consult a financial professional AND a tax professional. The laws surrounding inheritance are currently in flux and it is hard to know what the news rules are and how they apply to your situation. Working with professionals can help you navigate those rules easily and they can help guide you in how the different types of inheritance may affect your financial situation.

Bloomberg economists have estimated that the average household in the U.S. will be spending upwards of $433 more per month in 2022 than they did last year. This is a minimum of $5,200 per year if you make no changes to your style of living. If your budget has little room for additional expenses, you will need to make some difficult decisions about your budget.

You’re likely reading about an “impending recession,” which sounds kind of scary, especially for those of us who remember the Great Recession of 2008-9. The question right now is: are we already in a recession, or just experiencing another bump in the roller coaster?

If you are a small business owner in the State of California and do not carry a retirement benefit plan for your employees, the deadline for the CalSavers Program is quickly approaching. If you have 5 or more employees and do not currently offer a workplace retirement plan you must register by June 30, 2022.

Financial Planning is often a term used colloquially to mean managing one’s money, but it isn’t exclusive to saving and implementing market strategies. It is also safeguarding those assets for the future through analyzing special financial needs (death, disability, job loss, monetary windfall), taxation implications, medical/health planning, and liability concerns. Most professionals offer a couple specialized services but not all.