This month's newsletter covers financial regrets, college savings plans, vehicle buying versus leasing, a quiz on federal benefits, and a review of May's market performance.
Financial Regrets and Generational Insights
A 2023 survey revealed that about three out of four U.S. adults have financial regrets, such as not saving for retirement early enough, taking on too much credit card debt, and not saving enough for emergency expenses. Regret about not saving early enough for retirement is higher for those closer to retirement age.
Saving for College: 529 Plan vs. Roth IRA
This section compares 529 plans and Roth IRAs for college savings. Key points include:
- Contribution Rules: 529 plans allow higher contributions and special accelerated gifting, while Roth IRAs have income limits and lower annual contribution caps.
- Tax Benefits: Both accounts offer tax-deferred growth and tax-free withdrawals under specific conditions, with differences in penalties and tax implications for non-qualified expenses.
- Investment Options: 529 plans have limited investment options, while Roth IRAs offer a broader range of investments with greater flexibility.
Should You Buy or Lease Your Next Vehicle?
As new vehicle prices rise, this article helps you decide whether to buy or lease your next car. Considerations include:
- Ownership: Buying builds equity, while leasing does not.
- Monthly Payments: Lease payments are generally lower but come with mileage limits and potential fees.
- Maintenance and Up-Front Costs: Both options have their unique costs and benefits.
Birthday Benefits Quiz
Test your knowledge about federal benefits and tax responsibilities associated with milestone ages, ranging from 50 to 75. This interactive section helps readers understand key ages for Social Security benefits, catch-up contributions, and required minimum distributions.
Market Review: May 2024
