Level 5 Financial Blog
This blog has posted previously (June 9, 2020, May 2, 2019 and January 21, 2019) about state mandates which require small employers to offer employee funded individual retirement plans like Roth IRA’s to their workforce. Since tax advantaged traditional IRA’s have been available under federal law since 1982 and Roth IRA’s since 1998, these state capitol developments are hardly “blazing new trails.” The only novelty is the element of coercion placed on the employer and the linkage of payroll deduction to the funding of the account, similar to what is commonly done with 401k’s, 403b’s, SIMPLE IRA’s etc. It is also worth noting that nearly every private financial institution currently offering IRA’s allows contributions to be made via regular pre-established electronic fund transfers from individual checking/savings accounts. The previous postings, while applauding any gesture that improves individual retirement readiness in the U.S., question whether these duplicative legislative efforts constitute a good use of taxpayer dollars. Colorado has just joined New Mexico, Oregon, Illinois, California, Connecticut, Maryland and Massachusetts with Governor Jared Polis signing Senate Bill 200 creating the Colorado Secure Savings Program.
When people consider the subject of long-term care, they often think about nursing homes. In fact, long-term care has little to do with nursing homes. Understanding the difference can help you protect your family and finances.
The Covid-19 pandemic has certainly wreaked havoc on peoples’ lives the world over. Students have suffered a huge experiential loss as graduations, proms and sports competitions have been cancelled or severely curtailed. There is one area, however, where some students may reap a benefit from the coronavirus.
The Covid-19 pandemic has strained the social safety net as job furloughs and unemployment caused many to lose their regular sources of income. As a result, food banks and other charitable organizations have seen huge increases in the number of people relying on their services. Of course, this increased demand puts financial pressures on the charities, but at least one report suggests that donors stepped up their efforts in this time of need.
Our children are very observant and learn many things-both good and not so good—-from watching adults. There’s no question that our nation as a whole could benefit from greater financial literacy and we can start by raising “money smart” kids. According to T. Rowe Price’s 11th annual Parents, Kids and Money Survey, 85% of parents believe they teach their children everything they need to know about money. Yet, 2 of 3 parents express some level of reluctance to discuss money or financial topics with their children and roughly half believe they often miss opportunities to talk with their children about money and finances.