Finance

Optimize your financial plans for 2024

Published

2 years ago

January 4, 2024

LEARN HOW YOUR PLANNED GIFT CAN HELP THE AMERICAN LEGION

The beginning of January is an excellent time to consider your financial plans for 2024. Some individuals are planning for retirement and should consider their contributions to a qualified retirement plan. Others may have already retired and should consider their withdrawal strategies or required minimum distributions (RMDs). You may benefit from a strategic plan to make wise financial decisions in 2024.

Retirement Contributions. The 2024 limit for your 401(k) contributions could be up to $30,500. The regular contribution is $23,000. If you are 50 or older, there is also a potential $7,500 catch-up contribution amount. Individuals with moderate incomes may save $8,000 in an IRA. The regular contribution is $7,000 and the additional amount is $1,000 for those 50 and older. If you have not maxed out your 2023 IRA contribution, you can still make a transfer until April 15.

Tax-Free Retirement Accounts. While traditional IRA or 401(k) accounts are funded with pre-tax dollars, there are many benefits for making contributions of after-tax dollars into a Roth 401(k) or Roth IRA. Although the contributions are after-tax, your future retirement payouts will be tax-free. Some individuals have higher incomes and therefore do not qualify for a Roth IRA, or their employer does not offer the Roth 401(k), but they may qualify for a Roth conversion. A traditional IRA or 401(k) can be transferred into a Roth IRA. There is a requirement to pay income tax on the transferred amount, but the future payouts will be tax-free.

Recently Retired. If you retired during the past year or two, you are likely to be planning withdrawals from your savings account or investments. One of the main questions facing individuals is how much to start withdrawing. Most financial planners suggest withdrawing 4% of the account. While a conservative investor may choose to withdraw 3%, the 4% withdrawal rate is frequently advocated. Part of the withdrawal decision relates to your retirement budget. Individuals who retire may have significant expenditures on hobbies or travel. If you have substantial expenditures, you may have a larger retirement budget. You also might consider one-time expenses such as the purchase of a new vehicle or renovation of your home.

Fixed Payments. A popular method to receive fixed payments for a term of years or a lifetime is an annuity contract from a financial services company or nonprofit. With the current higher interest rates on bonds, the rates on both commercial annuities and charitable gift annuities are higher. These fixed payments can be created for one or two lives. The combination of Social Security income, retirement account withdrawals and fixed annuity payments can provide a substantial income.

Estate Plan Review. January is an excellent time to update your estate planning documents. You should review your will (if you do not have a will, you should plan to make one), and check the beneficiary designations on life insurance policies and retirement plans. Some individuals have held life insurance policies or retirement plans for many years. There may have been a change in family circumstances and the wrong beneficiary is listed on the plan document. You also should create a durable power of attorney for health care, which is referred to as an advance directive in some states. Your health-care directive is designed to protect you. Your designated health-care proxy will be able to make future decisions if you are incapacitated.

Required Minimum Distributions (RMDs). If you are 73 or older in 2024, you will be required to take a distribution from your traditional retirement plans. You generally will start taking a withdrawal of 3.78% from a traditional IRA, 401(k) or 403(b) plan. The exception is for a couple with a spouse more than 10 years younger. There is a reduced withdrawal requirement for those couples. Another option to fulfill your RMD for 2024 is a qualified charitable distribution (QCD). The 2024 QCD limit is increased to $105,000 for individuals who over 70½.

The American Legion’s Planned Giving program is a way of establishing your legacy of support for the organization while providing for your current financial needs. Learn more about the process, and the variety of charitable programs you can benefit, at legion.org/plannedgiving. Clicking on “Learn more” will bring up an “E-newsletter” button, where you can sign up for regular information from Planned Giving.

Finance

'There Could Be A Whole Other Life He's Living' 'The Ramsey Show' Host Says After Wife Finds $209K Debt Behind Her Back

Published

4 hours ago

January 10, 2026

Press Room

'There Could Be A Whole Other Life He's Living' 'The Ramsey Show' Host Says After Wife Finds 9K Debt Behind Her Back

A hidden financial discovery exposed the scale of debt inside a long-running marriage. Anne, a caller from Pittsburgh, reached out to “The Ramsey Show” for guidance after uncovering $209,000 in credit card balances. Married for 19 years and now in her 50s, she said the balances accumulated without her knowledge. She said her husband managed nearly all household finances. Anne added that her name was not on the primary bank account. She had no online access, and both personal and business expense

Finance

Will Trump’s US$200 Billion MBS Purchase Directive Reshape Federal National Mortgage Association’s (FNMA) Core Narrative?

Published

16 hours ago

January 10, 2026

Press Room

Will Trump’s US0 Billion MBS Purchase Directive Reshape Federal National Mortgage Association’s (FNMA) Core Narrative?

In early January 2026, President Donald Trump directed government representatives, widely understood to include Fannie Mae and Freddie Mac, to purchase US$200 billion in mortgage-backed securities to push mortgage rates and monthly payments lower. Beyond its housing affordability goal, the move highlights how heavily the administration is leaning on government-sponsored enterprises like Fannie Mae to influence credit conditions and the mortgage market’s structure. With this large-scale…

Finance

Holyoke City Council sends finance overhaul plan to committee for review

Published

1 day ago

January 9, 2026

Press Room

Holyoke City Council sends finance overhaul plan to committee for review

HOLYOKE — The City Council has advanced plans to create a finance and administration department, voting to send proposed changes to a subcommittee for further review.

The move follows guidance from the state Division of Local Services aimed at strengthening the city’s internal cash controls, defining clear lines of accountability, and making sure staff have the appropriate education and skill level for their financial roles.

On Tuesday, Councilor Meg Magrath-Smith, who filed the order, said the council needed to change some wording about qualifications based on advice from the human resources department before sending it to the ordinance committee for review.

The committee will discuss and vote on the matter before it can head back to the full City Council for a vote. It meets next Tuesday. The next council meeting is scheduled for Jan. 20.

On Monday, Mayor Joshua Garcia said in his inaugural address that he plans to continue advancing his Municipal Finance Modernization Act.

Last spring, Garcia introduced two budget plans: one showing the current $180 million cost of running the city, and another projecting savings if Holyoke adopted the finance act.

Key proposed changes include realigning departments to meet modern needs, renaming positions and reassigning duties, fixing problems found in decades of audits, and using technology to improve workflow and service.

Garcia said the plan aims to also make government more efficient and accountable by boosting oversight of the mayor and finance departments, requiring audits of all city functions, enforcing penalties for policy violations, and adding fraud protections with stronger reporting.

Other steps included changing the city treasurer from an elected to an appointed position, a measure approved in a special election last January.

Additionally, the city would adopt a financial management policies manual, create a consolidated Finance Department and hire a chief administrative and financial officer to handle forecasting, capital planning and informed decision-making.

Garcia said that the state has suggested creating the CAFO position for almost 20 years and called on the City Council to pass the reform before the end of this fiscal year, so that it can be in place by July 1.

In a previous interview, City Council President Tessa Murphy-Romboletti said nine votes were needed to adopt the financial reform.

She also said past problems stemmed from a lack of proper systems and checks, an issue the city has dealt with since the 1970s.

The mayor would choose this officer, and the City Council will approve the appointment, she said.

In October, the City Council narrowly rejected the finance act in an 8-5 vote.

Supporters ― Michael Sullivan, Israel Rivera, Jenny Rivera, Murphy-Romboletti, Anderson Burgos, former Councilor Kocayne Givner, Patti Devine and Magrath-Smith ― said the city needs modernization and greater transparency.

Opponents ― Howard Greaney Jr., Linda Vacon, former Councilors David Bartley, Kevin Jourdain and Carmen Ocasio — said a qualified treasurer should be appointed first.

Vacon said then the treasurer’s office was “a mess,” and that the city should “fix” one department before “mixing it with another.”

The City Council also clashed over fixes, as the state stopped sending millions in monthly aid because the city hadn’t finished basic financial paperwork for three years.

The main problem came from delays in financial reports from the treasurer’s office.

Holyoke had a history of late filings. For six of the past eight years, the city delayed its required annual financial report, and five times in the past, the state withheld aid.

Council disputes over job descriptions, salaries and reforms also stalled progress.

In November, millions in state aid began flowing back to Holyoke after the city made some progress in closing out its books.

The state had withheld nearly $29 million for four months but even with aid restored, Holyoke still faces big financial problems, the Division of Local Services said.