403b contribution limits increased for 2020

   The maximum 403b & 457b contribution limit has been increased from $19,000 to $19,500 for 2020. For anyone 50 or older this year can contribute an additional $6,500 for $26,000. In addition, if you have been with the same school district 15 years or longer you can contribute an additional $3,000.

New Year Tax Planning
Am I giving the government an interest-free loan?

     With the tax season just around the corner, it's not too early to start planning now to cut taxes for this year. Begin by looking at last year's tax return and areas where you might have been able to deduct expenses. Then ask yourself, " How will this year be different from last?" Do you anticipate a big pay raise, an inheritance, sale of property, or a new baby? all of these can greatly impact your taxes. Ideally you want to break even on your taxes. None of us really like paying extra taxes come April 15, but likewise you don't want a huge refund either. 
     When you get several thousand back as a refund, in essence you just gave the government an interest-free loan! It's like going into a grocery store, making a $14 purchase, giving the cashier $20, and telling them to keep the change until next April. A wise cashier could then invest the six dollars, keep the interest, and give you back the original six dollars in change. The rule of thumb is for every $1,500 you get back as a refund, you should increase your with holdings (exemptions) by "1."
     So, what can you do to help cut your taxes for 2020? First, contribute or add to your 403b, IRA, or other tax-deferred plan. For every $100/month you contribute will cut about $300/year off your taxes. Re-evaluate your tax deductions. Are you claiming all that you can? If you're getting a huge tax refund each year, maybe it's time to make some adjustments on your paycheck so you bring home more, thus saving more. Contact us for more ideas.

and not lose any representation or benefits 
Teachers can opt out of paying Union dues due to recent Janus Supreme Court decision

The California Teachers Association (CTA) is the designated union for certified school employees like teachers, counselors, psychologists, librarians, and education support professionals in most school districts in California.

For years, public employees in California have been forced to pay union dues as a condition of employment, allowing unions to take their members for granted. However, the U.S. Supreme Court recently ruled that public employees can no longer be required to financially support a labor union against their will. Janus v. AFSCME, 585 US (2018)  Furthermore, concern was raised as to where Union dues go, many times to support political candidates or causes that the school employee may not agree with. 

The decision found,

“The First Amendment is violated when money is taken from nonconsenting employees for a public-sector union; employees must choose to support the union before anything is taken from them. Accordingly, neither an agency fee nor any other form of payment to a public-sector union may be deducted from an employee, nor may any other attempt be made to collect such a payment, unless the employee affirmatively consents to pay.”

Consequently, public employees may decline to pay these private organizations without losing their jobs or employer-provided benefits. To opt-out go to https://www.optouttoday.com/california-teachers-association. This then frees up $100 or more each month that can be used to supplement your retirement such as a 403b.

Get a pay raise? Shelter it from taxes

Several school districts have either approved or are in negotiations for pay increases for both classified and certificated employees. Depending on your pay, this could mean hundreds of extra dollars each month in addition to "retro" pay. Taxes will take a considerable portion of the pay raise, so why not add to your 403b, thus keeping your taxes low, earn high er interest, and build your retirement savings that much faster? Do you know a school employee who isn't contributing? Let us know and we can help. 

Get completely out of debt in as little as 7 years (including your mortgage)
Then turn your debt into wealth!

Debt got you down? Now that Christmas is over are the credit card bills coming due? If so, there is a light at the end of the tunnel. What if you were able to pay off all your debt, including your mortgage, in as few as 5-7 years without it costing you an extra dime to do so? No debt consolidation loan, no refinancing, no bi-monthly mortgage- just a simple plan to become completely debt free. Once you are debt-free we can then show how much you can save for retirement. Imagine earning interest on your money instead of paying interest! This program has helped over 1 million people nationwide and the best part it's totally free to our clients. Contact us and let us show you how to literally turn your debt into wealth!

Earn a 5% interest bonus on each deposit for 7 years

If you're not already getting a 5% interest bonus on your money, now may be the time to start. Introducing the Paramount 5 which credits you a 5% interest bonus on each deposit you make into your 403b, IRA ,ROTH, or SEP IRA. You will also be credited additional interest based on the S&P 500 and a fixed interest account.

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