As the year winds to a close, it is a good time to assess aspects of your financial plan, such as emergency funds and education savings, and to review interest-rate sensitive areas of your portfolio.
IRS Announces Federal Income Tax Bracket Adjustments
The IRS issued an announcement last week that highlighted several changes, including inflation adjustments to each income bracket, which applies to filings in 2026 for the tax year 2025. Additionally, the press release stated that the standard deduction will increase for both married couples and singles, and will include increases for capital gains brackets, estate and gift tax exemptions, and earned income tax credit eligibility. Left unchanged by the IRS are personal exemptions, itemized deductions and lifetime learning credits, items that have been adjusted for inflation in the past. To read the full statement released by the IRS, click the button below. To better understand how these changes may affect you and your short- and long-term plans, please contact your client relationship manager or email us at info@vcmi.net.Decoding FAFSA : Understanding Its Purpose and Latest Updates
If college is on the horizon for yourself or someone you love, you have likely heard of the FAFSA – the Free Application for Federal Student Aid. Used by the government to award federal school aid, grants, and scholarships, the FAFSA is a form that is filled out annually for the upcoming academic year to determine how much a student and his or her family are expected to be able to contribute towards their college education.
Student Loan Repayment Restart
Beginning June 30, 2023, the 60-day countdown to the end of the federal student loan freeze began. While the Supreme Court has yet to rule on the Biden administration’s student loan forgiveness proposal as of this writing, the three-year pause on payments that went into effect due to the Covid -19 pandemic is set to resume in September regardless. There can be no more extensions of the freeze of student loan payments. According to research by VantageScore, a credit data analytics company, up to 76% of federal student loan borrowers may miss the first required payment and that single missed payment can ding a borrower’s credit score by as much as 82 points, on average. This month we will look at how to prepare for making payments again (or for the first time if a borrower graduated during the forbearance period).
Choosing the Rewards Credit Card that is Right for You
An internet search for “best rewards credit card” returns a seemingly endless number of listicles from every news and travel outlet touting different cards as the best. Like many things, however, the “best” is highly individualized. Some highly rated cards accrue bonus points when used in specific categories such as dining or gas, however the benefit to the cardholder will be minimal if he or she rarely spends money in those categories. Other cards offer excellent benefits but carry a hefty annual fee, which can be difficult to stomach for some.
