This is not a call for celebration but instead to marvel, briefly, that this may be your reality. And it is true that the ability to dig deep to help others depends in part on preserving what you have.

My colleague Jeff Sommer noted that stock markets posted big gains in the medium-term wake of the Pearl Harbor bombing and the U.S. invasion of Iraq. Investors did well during the Cold War years, too, even as millions of people suffered.

For most people, it would not feel good to try to profit off these sorts of events directly, but mere patience is no moral failing.

On Thursday, as stock markets fell steeply and then recovered, Michael Zawadiwskyi, a Ukrainian American financial planner, said he did talk a few clients out of the idea that they should sell various investments to shield themselves from potential losses. About half his clients share his roots.

But he did not get as many calls as you might have expected. Shared heritage aside, he and his clients subscribe to universal principles of sound financial planning. They have their money in buckets of investments, some to use now and some for later. They are prudent about risk and diversification. They don’t deviate from the plan unless radical changes in their own lives demand it.

And he knows his history. “I don’t think war slows the economy down long term,” Mr. Zawadiwskyi said.

That did not keep him from staring in disbelief at pictures of tanks rolling through Ukraine and wondering what will become of its citizens. Most of them, he believes, do not have their bags packed just yet, especially those in the western part of the country, where his family has roots.

Article source: https://www.nytimes.com/2022/02/26/your-money/russia-ukraine-investments-stocks.html

The I.R.S. supports two programs that offer free tax help to underserved groups. One is the Volunteer Income Tax Assistance program, or VITA, which generally helps people with income of $58,000 or less, as well as people with disabilities and those who speak limited English. The program works with local community groups, which staff offices during tax season with volunteers trained by the I.R.S. You can use the I.R.S. locator tool to find a site near you. Many require that you make an appointment. (You can also go to GetYourRefund.org, a VITA partner that helps families with somewhat higher incomes — up to $66,000.)

The second is the Tax Counseling for the Elderly program, which generally offers free tax help to people 60 and older. The program specializes in tax matters unique to older people, like pensions and retirement-related issues. (Many of the sites are operated by the AARP Foundation Tax-Aide.)

MilTax, a program of the Defense Department, offers free tax preparation and help to service members and their families. The program includes tax software that addresses questions specific to the military, like deployments and combat and training pay.

The I.R.S. Free File program offers no-cost online tax programs to people who earn $73,000 or less. The program began in 2003 as a way to offer do-it-yourself tax software to the public, through a pact between the I.R.S. and the Free File Alliance, a collection of commercial vendors.

But the program was not widely used, in part because the I.R.S. lacked money to promote it. While 70 percent of filers were eligible to use it, just 2.4 percent did, according to a federal review. HR Block dropped out of the federal program in 2020, and last year Intuit, which makes the popular TurboTax program, said it was leaving as well. In its regulatory filings, Intuit said it had left because the Free File agreement was changed in 2019 to “eliminate the pledge by the I.R.S.” that the agency wouldn’t offer a competing service.

Still, eight software providers are participating this year, including TaxAct and TaxSlayer. “These companies have a good product,” said Tim Hugo, executive director of the Free File alliance. Some states offer free state tax returns through FreeFile as well.

Surveys have found that a vast majority of users are happy with Free File, Mr. Hugo said. “People like the product,” he said. “We just need more people to know about it.”

Article source: https://www.nytimes.com/2022/02/25/your-money/taxes/filing-taxes-online-free.html

I wonder, though, whether you haven’t left out one of the main ways in which you could assist him. What if you and your father discussed your respective situations frankly, working out a strategy for addressing his financial problems? You could have a conversation about what’s reasonable for him to expect from you, in light of your situation. These conversations are bound to be uncomfortable, and you may both have avoided them for that reason. But I suspect that confronting the matter — with love and respect — will be better than each of you continuing to agonize about it on your own. In the end, it will be up to you to decide what you give him. And a loving father isn’t going to want to undermine your chances of living a happy and successful life, whether that’s here in the United States or back home nearer to him.

For nearly a year and a half, we were in a pandemic pod with another family, and our children became fast friends. We saw this family nearly every weekend; it was our only social interaction. A few months ago, just after the children went off to different preschools, the parents suddenly said they were splitting up, much to our surprise. Several months later, one of the parents had sole custody, claiming the other parent was mentally ill and recounting several violent incidents.

The other parent has reached out to ask us to write a letter on her behalf to support regaining some custody of her child. She says that her ex-partner’s claims of violence and mental illness are false. I wasn’t present for any of the incidents, so I can’t say who was right or wrong; we merely heard stories. On one hand, the claims of violence could be true, and my account of her character would be false, although true to me. On the other hand, if the claims of violence are false, am I assisting a system that is denying my child’s friend interactions with the other parent by not writing a letter on her behalf? I want to do what is in the best interest of the child, while maintaining healthy boundaries. My husband says not to get involved, and my instinct is to trust the system. Do I have an obligation to write a letter on her behalf? Name Withheld

The legal system for deciding matters of custody is far from perfect. But it’s most likely to work well if decision makers have as much useful information as possible. So accurately describing what you know — and avoiding conjecture about what you don’t — should be more helpful than not.

In a contentious custody battle, each parent is naturally tempted to exaggerate the flaws of the other. While things have changed since the period when you were in a pod together, it’s relevant that (as I assume) both your friends appeared to be responsible and caring parents when you did spend time with them. You worry that your character claims would be false, though “true to me.” Really, they’re true or they’re not. That you put it this way underlines your uncertainty about how much you know. So make it clear that you can speak only about what you were present to see. The parent who solicited the letter is the one submitting it to the court, and she won’t if she or her attorney has reservations about it. Still, this is a case where the dictum “write what you know” is worth taking to heart.

Kwame Anthony Appiah teaches philosophy at N.Y.U. His books include “Cosmopolitanism,” “The Honor Code” and “The Lies That Bind: Rethinking Identity.” To submit a query: Send an email to ethicist@nytimes.com; or send mail to The Ethicist, The New York Times Magazine, 620 Eighth Avenue, New York, N.Y. 10018. (Include a daytime phone number.)

Article source: https://www.nytimes.com/2022/02/22/magazine/parents-financial-assistance-ethics.html

Converting a conventional IRA to a Roth, which will generate a one-time tax bill from the I.R.S., might be in order, depending upon your income. Mr. Brownell recommended that workers consider this move well before retirement to save taxes down the road.

“Roth converts may be paying lower federal income tax in their ‘cutting back’ years,” he added. Because of the tax hit with a Roth conversion, you will need to talk with your tax or financial planner, or run numbers on an online calculator, to see if it makes sense for you.

D.I.Y., or Get Help?

You can, of course, manage the transition yourself or get some professional help. Finding a fee-only certified financial planner is a good start. It’s possible to find a planner who will work for a flat fee or hourly rate. Don’t hire anyone who wants to sell you investment products.

Hands down, increasing your nest egg during your in-between time is always a good idea. For 2022, you can contribute $20,500 to your 401(k) or other defined-contribution plans. That’s $1,000 more than last year. People over 50 can add $6,500 in catch-up contributions.

More important, one of your key questions should be, “What do I truly want to do and how do I get there?” Whether you are envisioning partial or full retirement, it helps to have some specific goals. For Ms. Sterner, one of those goals is having more time to engage with her local network. “I have worked nationally and internationally my entire career,” she said. “I am finding huge enjoyment volunteering in my local community.”

Ultimately, your quality of life is the biggest factor. In Ms. Sterner’s case, that involves “managing my finances, so instead of wrangling clients I can be wrangling lake trout from my kayak.”

Article source: https://www.nytimes.com/2022/02/18/business/retirement-planning-money-social-security-medicare.html

So you’re saying this time is different?

Yes — and no. The facts always change, even if economic, stock and housing market cycles are regular (if not predictable or consistently timed) events over our lifetime.

And, oh, what a set of facts we have. A pandemic and the government response resulted in many people spending less on travel, commuting, clothes, student loan payments and entertainment.

That put extra money in the down payment accounts of those who didn’t lose their jobs or any income. At the same time, the mortgage bundles the Fed was buying helped lead to record-low mortgage rates.

That made it easier to bid up house prices — just as lots of people sped up moving plans in search of more space to work at home and keep kids out of their hair. There was even more competition for available homes, and new homes took longer to build because of supply chain issues and labor shortages.

There’s more. Professional investors were buying homes — with the all-cash bids that most sellers prefer and most individual owners can’t match — as never before in 2021. According to Redfin, they accounted for 18.4 percent of the home purchases in the fourth quarter of 2021. In Southern and Western cities — like Atlanta, Charlotte, Miami, Orlando, Las Vegas and Phoenix — investors accounted for more than a quarter of sales.

These institutional buyers are probably not done, either.

“It’s an absolutely terrible time to be a buyer,” said Sarah Ponder, a financial planner in Austin, Texas. There, the median home price has risen 30 percent in the past year, according to the city’s Board of Realtors.

Ms. Ponder, who specializes in helping real estate professionals and has already done five property transactions of her own in just 15 years of adulthood, pointed to one final X-factor: Folks her age may not know what rapidly rising interest rates do to one’s home-buying psyche.

Article source: https://www.nytimes.com/2022/02/18/your-money/inflation-mortgage-rates.html

But there are some details to pay attention to: Once you buy the bonds, you can’t redeem them for one year. And if you redeem them before five years, you’ll lose your last three months of interest.

An individual can buy up to $10,000 in digital I bonds each year via the TreasuryDirect website. And you can buy an additional $5,000 in paper bonds using your income tax refund.

Here are some questions and answers about savings options:

Do I have to be a member of a credit union to open an account?

Credit unions are member-owned financial institutions, and you typically must join to open an account. Membership is often restricted to people living in a certain area or sharing interests, like the same employer or service in the military. But rules have become more flexible in recent years. For instance, “everyone is eligible to apply” to join PenFed, said Spencer Kenyon, a spokesman, because it merged in 2019 with a credit union with an “open” charter. To join, you simply need to open and maintain a basic savings account with at least $5.

I found a bank offering higher savings rates, but I’ve never heard of it before. Is it safe?

Smaller regional banks and online banks are more likely to offer higher rates but may be unfamiliar to consumers. But as long as the bank or credit union is federally insured, Mr. Tumin said, your funds are protected. The F.D.I.C. and its credit union counterpart, the National Credit Union Share Insurance Fund, protect savings deposits of up to $250,000 per depositor, per bank.

Banks must indicate that they are F.D.I.C. members. If you are unsure about a bank’s status, you can use the F.D.I.C.’s bank finder tool. Most so-called neo banks or fintech companies aren’t insured themselves but team up with F.D.I.C.-insured banks to hold deposits. The F.D.I.C. recommends confirming the details of how the company handles deposits. Customers should also verify the name of the bank holding the funds and confirm that it is federally insured.

Should I keep my emergency savings in a basic savings account or seek higher rates?

Emergency savings should generally be kept in a liquid savings account so you can withdraw the funds quickly if you have an unexpected expense, said Kia McCallister-Young, co-director of America Saves, a campaign of the Consumer Federation of America.

Depending on how much of a cushion you have saved, you could put part of your reserve into a higher-rate certificate of deposit. But you should probably choose a shorter-term C.D. so your funds aren’t locked up for a long period. And if you’ve had trouble building a rainy-day fund, Ms. McCallister-Young said, tax time is a good time to start: You could put all or part of your refund aside to get the account started.

You could also check with your employer. About 15 percent of large employers offer options to help workers build rainy-day funds, according to the Employee Benefit Research Institute.

Article source: https://www.nytimes.com/2022/02/11/your-money/savings-rates-interest.html

If theirs is an investment portfolio like that, they’ll begin the process by setting up a trust. Lawyers draw up the documents, and then investment advisers run the trust. The advisers must be people who have never managed the beneficiaries’ assets.

The beneficiaries — that is, the people with the inside information — can set basic investment goals and update them from time to time. But they don’t get to see the individual investments that the adviser is buying, holding, selling or shorting. They are, quite literally, blind to what is going on in their portfolio.

Two Senate Democrats, Mark Kelly of Arizona and Jon Ossoff of Georgia, are sponsoring a bill to limit members of Congress’s trading activity, and they have blind trusts themselves. Unfortunately, their offices would not put me in touch with their lawyers or investment advisers to discuss the trusts’ mechanics or either man’s investing philosophy.

But other lawyers who have set up blind trusts said the vehicles were often a kind of last resort. “It’s a little bit of a pain,” said Bryson B. Morgan, who practices with the political law and exempt organizations groups at Caplin Drysdale in Washington. “There are various other easier ways to deal with conflicts of interest.”

The simplest is to sell all the stocks and other investments that might pose a problem and replace them with diversified holdings — an approach that any civilian can use without a lawyer or an investment pro, as Mr. Morgan’s colleague Beth Shapiro Kaufman pointed out.

“They can buy a certain set of mutual funds that have their preferred asset allocation and rebalance on a preset, periodic basis,” she said. “Then they just have to be disciplined when they get a pit in their stomachs.”

The pit, however, is a problem. While you feel it in your stomach, it starts in your head — and it’s wise to prime your brain with guidelines.

Article source: https://www.nytimes.com/2022/02/05/your-money/stock-portfolio-investment-management.html

Some states, including Louisiana, have made filing the Fafsa a graduation requirement for high school students to help lift completion rates

Ms. Cook’s network is encouraging school districts to use some of the funds they receive from the federal pandemic relief program to expand support for post-high school preparation, including Fafsa completion assistance.

Here are some questions and answers about the Fafsa and student aid:

How much aid could I get from a Pell grant?

The maximum grant is set by Congress and is currently $6,495. Not all eligible students get the full amount; that depends on financial details reported in the Fafsa and other factors, like the cost of the school they are attending. Legislation pending in Congress would double the maximum amount and expand eligibility for the grants, but its outcome is uncertain.

Where can I get help completing the Fafsa?

Most schools are back to in-person learning, and counselors should be more available, although many have heavy workloads, Ms. Cook said. “Reach out and ask a counselor,” she said.

Some schools are working with community groups to bolster college preparation for students. OneGoal, a nonprofit group with programs in Illinois and several other states, works with schools to help them expand in-school instruction for students on post-high school planning. Classes, taught by school staff with support from OneGoal coaches, typically include help with Fafsa preparation.

Mr. Schraeder with EAB said the federal Student Aid Office has helpful information on its website, including a YouTube channel with videos that walk you through the process.

When should I file the Fafsa?

Each year, a new Fafsa becomes available on Oct. 1 for the following academic year, and may be filed until June 30 after the applicable school year ends. (The form for the 2022-23 school year, for instance, opened on Oct. 1, 2021, and can be filed until June 30, 2023.)

Article source: https://www.nytimes.com/2022/02/04/your-money/students-college-grants-fafsa.html

Benefits are adjusted annually for inflation, and they are not affected by the ups and downs of financial markets. Perhaps most important, benefits are guaranteed for life, which makes Social Security an important form of insurance against the risk that you’ll run out of money late in life. That can be especially important for women, who tend to outlive men but also earn less income, generating lower levels of retirement assets.

For many individuals, the best answer is to delay claiming as long as possible, up to age 70.

Your monthly Social Security benefit amount depends on when you file. You can claim the retirement benefit as early as age 62, or wait as late as age 70, but the amount hinges on your full retirement age — the point when you qualify to receive 100 percent of the benefit you have earned. Currently, full retirement age is 66 and a few months for most people. If you claim after full retirement, you’ll receive credits for delayed filing; claim earlier and there will be early-claiming reductions. Claiming at the full age is worth 33 percent more in monthly income than a claim at 62, and a claim at age 70 is worth 76 percent more.

“Almost everyone takes it far too early,” Dr. Kotlikoff said. “About 6 percent of us wait until age 70, but it should be 85 percent.”

But there is no one-size-fits all answer — especially for married couples, who should have a coordinated filing strategy. “It often makes sense for the spouse with a lower earnings history to file earlier, because that increases the household’s total expected lifetime benefits,” said Mike Piper, a certified public accountant who developed Open Social Security, which is widely viewed as the best free online claiming tool.

Filing early can also be a sensible option for people who retire prematurely because of job loss or poor health. And Social Security claiming should be a part of a broader analysis of expected retirement income from retirement accounts and other annuity-style income — such as a defined-benefit pension. Taxation of retirement income can also be an important factor in the success of your plan.

Free tools

Begin your analysis with your Social Security statement. This crucial document from the Social Security Administration lists your annual earnings from the time you started contributing to Social Security and tells you how much you can expect to receive at various ages — very important numbers for any “what if” claiming scenarios you may want to run. It’s important to establish a free account at the administration’s website, because statements are mailed only to people 60 or older.

The Social Security site also offers an informative section on benefits claiming, and a very basic, free retirement estimator feature that can calculate benefits based on your earnings history. The tool focuses on individual benefits — not spousal or survivor — and does not calculate lifetime cumulative benefits. It also does not permit side-by-side comparisons of claiming options.

Article source: https://www.nytimes.com/2022/01/28/business/social-security-retirement.html

A big factor is that under the federal government’s pandemic relief programs enacted in 2020, employers are able to make tax-exempt loan repayment contributions to their employees of up to $5,250 a year through 2025. Employees don’t have to pay income taxes on the benefit. (Previously, unlike tuition assistance payments for employees enrolled in college, loan-repayment contributions were taxable.)

McLaren Northern Michigan Hospital in Petoskey, Mich., is among the employers that have added a direct assistance benefit. The hospital began offering student loan aid this month, joining two other hospitals in its health system, said Todd Burch, McLaren Northern’s president and chief executive.

It has become especially difficult to keep nurses, Mr. Burch said, because they are increasingly able to work on lucrative mobile assignments as travel nurses. “We’re looking for unique offerings to recruit and retain top talent,” he said.

The benefit is available to all employees after they have worked at the hospital for six months and pays $200 a month in the first year, $300 monthly in the second year and $400 monthly in the third year, with a maximum benefit of $12,000. (Benefits are prorated for part-time workers.) Already, 91 employees have applied for the benefit.

McLaren works with Goodly, a start-up that manages student loan payment benefits for companies. Workers submit their loan information to Goodly, which verifies the worker’s eligibility and transmits payments from the employer to the lender.

Esker, a software company with U.S. headquarters in Wisconsin, began offering the benefit in 2019. The company generally hires workers directly from college, so education loans are often a concern, said Anne Donarski, the company’s director of finance and administration.

“We know student debt is becoming an increasing burden,” she said.

Employees are eligible from their first day on the job, but the contribution increases with their tenure at the company — from $100 a month to start, up to $150 a month, payable over five years. The company has about 200 employees, and 55 use the benefit. Esker has so far paid about $186,000 in loan help, Ms. Donarski said.

Article source: https://www.nytimes.com/2022/01/28/your-money/student-loans-debt-employee-benefit.html