Let's get personal

In this #MakeAnImpact series, we’ll explore the AB(K)s of company retirement plans. Retirement plans are a crucial aspect of attracting and retaining top talent along with small business owners who want to save for retirement and take advantage of the tax benefits.

There are various company retirement options available to employers today. Let's take a closer look at each of these options.

Let's Get Personal about Electronic File Organizing

In today's digital age, it's becoming increasingly important to have a secure and organized way to store and manage your financial documents. That's where electronic file organizing comes in. Using tools like eMoney, financial planning clients can easily manage and access their financial documents from anywhere, at any time.

At ELEMENT, we're passionate about helping our clients achieve financial security and confidence. One of the ways we do that is by providing them with the tools and resources they need to stay organized and in control of their finances. Electronic file organizing is a key component of that.

In today's fast-paced business world this Make An Impact series we negotiate the importance, now more than ever, to attract and retain top talent. A competitive compensation package is a critical component of any successful employee recruitment and retention strategy. However, with the current state of the job market in 2023, developing a compensation package that is both attractive to potential employees and sustainable for your business can be a challenging task.

To develop a compensation package that is competitive in 2023, there are several key factors that business owners should consider.

Market Research

The first step in developing a competitive compensation package is to conduct thorough market research. This research should include analyzing data on industry trends, job market demand, and salary information for similar positions in your area. This information will give you a baseline understanding of what you should offer to attract and retain top talent.

Presented by Nicole Cannone Wegman, CFP ®, Director of Financial Planning

In this Let’s Get Personal post we'll explore what FDIC limits are, how they work, and what steps you can take to ensure that your bank deposits are protected.

With recent news about bank failures, it's natural to be concerned about the safety of your deposits. But did you know that the FDIC protects any money you have deposited in insured bank accounts up to $250,000 per account holder in the unlikely event of an insured bank failure?

What are FDIC limits?

The FDIC is an independent U.S. government agency that provides deposit insurance to protect depositors in the event that an insured bank or savings institution fails. FDIC limits refer to the amount of coverage that depositors are entitled to receive if their bank fails.

Currently, the FDIC insures deposits up to $250,000 per depositor, per insured bank. This means that if you have less than $250,000 in a single insured bank, your deposits are fully covered. If you have more than $250,000 in one account, the excess amount may not be insured. However, there are ways to increase your coverage, such as opening additional accounts or using different ownership categories (more on that later).

In this make and impact series, we're going to explore Dollar Cost Averaging (DCA) - a technique for investing that involves purchasing a fixed dollar amount of a particular investment at regular intervals over an extended period of time.

At its core, DCA is a way to manage the risks associated with investing. It helps to smooth out the highs and lows of the market and avoid making emotional investment decisions.

Here's how it works: instead of investing a lump sum of money all at once, an investor will split that money into smaller, equal portions and invest each portion over a period of time. This approach means that an investor buys more shares when prices are low and fewer shares when prices are high. By spreading out the investment over time, the investor can reduce the impact of market fluctuations on their portfolio.

In this Let’s Get Personal post, we'll explore a powerful tool in the investment world: Tax Loss Harvesting. As a savvy investor, you're always looking for ways to maximize your returns and minimize your tax bill. Tax Loss Harvesting is one strategy that can help you do both.

First, let's define what Tax Loss Harvesting is. It's a technique where you intentionally sell securities at a loss in your taxable investment account to offset capital gains elsewhere in your portfolio. The idea is to use those losses to reduce your overall tax liability. You then reinvest the proceeds in a similar but not identical security to maintain your overall portfolio's desired asset allocation and market exposure. So, how does tax loss harvesting work? Essentially, you sell investments that have decreased in value, which generates a loss. You can use these losses to offset capital gains from other investments, reducing the amount of tax you owe. If your losses exceed your gains, you can use up to $3,000 per year to offset ordinary income, and any remaining losses can be carried forward to future years.

In this Let’s Get Personal post we navigate the benefits of utilizing a donor advised fund for charitable giving. Many of us have charities near and dear to our hearts that we want to support. There are so many benefits to supporting the organizations you care about, but what if you could also obtain an immediate tax deduction?

A donor advised fund (DAF) is one of the easiest and most tax-advantageous ways to give to charities.  A donor advised fund is like a charitable investment account for the sole purpose of supporting charitable organizations you care about.  How great is that?

Presented by Anamika Madan, CFP ®

In this issue of Let’s get personal we tackle HELOC (Home Equity Lines of Credit) and PLOC (Personal Lines of Credit).

First let’s talk basics, if you own a home one of the biggest perks is the ability to build equity over time. With a HELOC, you're borrowing against the available equity in your home and the house is used as collateral for the line of credit. As you repay your outstanding balance, the amount of available credit is replenished – much like a credit card.

A personal line of credit (sometimes referred to as a PLOC) is a set amount of money from which you can borrow (up to the limit) for a given period of time, referred to as your draw period. Similar to a credit card, you draw the amount you need from the available balance, and you only pay interest on that amount. Sound familiar? Now, let’s get go a little deeper.

President Biden Announces Student Debt Relief Plans

Presented by Jennifer Lawrence, AIF®

On August 24, 2022, President Biden announced plans to offer student loan forgiveness to selected individuals. Below is a summary of the executive action that the Biden Administration plans to effectuate. It’s important to note that strong legal challenges to these provisions are likely because the changes are sought to be implemented without Congressional approval.                                                     

Final Extension of Student Loan Repayment Moratorium

Borrowers won’t be required to make payments on their federal student loans through December 31, 2022. Borrowers haven’t been required to make student loan payments for more than two years thanks to pandemic-related relief for borrowers. No interest has accrued on federal student loans during the repayment pause. President Biden has indicated that this will be the final extension, and that borrowers will have to resume student loan repayments in early 2023.

Forgiveness of $10,000–$20,000 from Student Loan Balances

Individuals making less than $125,000 per year ($250,000 for married couples) in income will be eligible to have up to $10,000 of student loan debt canceled. For Pell Grant recipients, the cancellation amount may increase to $20,000. In most circumstances, the Department of Education will have individual income data to be able to automatically process the debt cancellation. In the event the government doesn’t have the relevant data, it anticipates providing applications in short order.

I Bonds: The What & Why

Presented by Nicole Cannone Wegman, CFP ®

In this Let’s Get Personal post we venture into the bond pool, specifically Series I Savings Bonds. Let’s talk about what they are and why you might want them on your Balance Sheet.

The What

Series I Savings Bonds or I bonds are a type of U.S. savings bond designed to protect the value of your cash from inflation. With U.S. inflation at an all-time high, Element understands how important it is to protect your cash savings and make sure your emergency fund is preserved.