“Dear Kelly” Financial Advice

I am struggling to interpret what the new Social Security Fairness Act means and how it affects me and my NYS Pension, or Social Security. Can you shed some light on how it may impact my retirement? Kelly’s Response

In 2024, have there been any changes in tax rules pertaining to how much I can save into my 403(b) and Roth IRA? I’m nearing retirement and want to make sure I’m putting as much into these accounts as possible. Kelly’s Response

I just received a promotion and a raise at work and would like to use my extra income to pay off my debts. Can you recommend how to consider my methods of paying them off? Do I pay off one at a time, or should I pay them all off little by little? Kelly’s Response

I’d like to do some ‘financial spring cleaning’ soon. I have a spattering of accounts, each has (or had) it’s own purpose when I set them up, but I am not sure if they are all necessary at this point, or if they are all working together to help me reach my goals. What would you recommend? Kelly’s Response

Last year I waited until the last minute to buy holiday gifts for my friends and family and found it stressful for my life and my wallet. I want to make a change so this isn’t the norm. Do you have any advice for holiday gift-giving planning when it comes to finances? Kelly’s Response.

Lately, I am finding myself financially strapped. Kids, inflation, holidays, I just don’t have the wiggle room month to month that I had before, and I’ve accrued some debt. Despite my best efforts, my credit card balance has continued to creep up. How do I get myself back on track? Where do I get started? Kelly’s response.

I typically have about $3k in my savings account and the rest goes to my retirement account or bills. A friend of mine was recently laid off, and it got me thinking about safety nets. Do you recommend people have an emergency fund? If so, how can I know the amount I should have saved as ‘just in case’ money? Kelly’s Response

Next year my daughter is getting married. I am 5 years within retiring and have taken on many extra-curricular activities at school as a way to earn extra income to put towards the wedding. Will my extra income affect my eventual NYS Pension payout? Kelly’s Response

Now that school is almost over for the summer (for some of us), do you have any general financial advice for someone that has felt like they just don’t have the bandwidth to handle financial organization during the school year? I’d like to take some time this summer to become organized and feel confident in my finances. Kelly’s response

My first grandchild was born this year and I’d like to give her a holiday gift – the gift of education. Can you tell me a little bit about college savings plans, if I can open an account for her, and some of the things to consider? Kelly’s Response

My son and his family will be visiting for the holidays, and I would like to start a tradition of gifting my grandchildren a few shares of Disney stock every holiday until they reach 18 and can take control of the account. What is the best way to do this? Kelly’s Response

With all of the changing tides in the market, how do I understand what is best for me, and what is going on? It is hard for me to keep track of and I feel like I hear/read contradicting messages in the media. Kelly’s Response

I’m retiring next year and trying to determine if I should select the Single Life monthly payout option for my NYS Pension or the option that allows for a beneficiary to receive a monthly payment after I should pass away. For the 2nd option, who am I allowed to list as my beneficiary? Anyone? Kelly’s Response

Should I do anything with my finances to prepare for the upcoming election? Kelly’s Response

Last year I finally moved my money from my old 401(k) to my current 403 (b). I was told that doing this would not result in a taxable event but I just received a 1099 in the mail from the transaction, can you help me understand why I received this form? Kelly’s Response

Without getting too much into the weeds, how do I know if I’m saving enough to retire when I’m ready? Kelly’s Response

I’ve hit a wall and am ready to retire yesterday. I’m 50 years old, in Tier 4 of the NYS Pension, and have worked 28 years. I am seriously considering putting in my notice before the new school year. Financially, how much would this cost me? I’m willing to sacrifice a little bit of potential retirement earnings from lost pension benefits in order to be done with it all. Kelly’s Response

I’ve never had or contributed to a Roth IRA before and was considering opening one at the suggestion of a friend of mine. Can you tell me a little more about this type of account and why they could be beneficial? Currently I only have my 403b with my district as part of my retirement plan, but I’d consider setting up a Roth IRA If it made sense. Kelly’s Response

I only have 3 more years until my full retirement age, and I am considering changing districts for a few different reasons. By making the switch, I would save 30 minutes of travel each way, and make the same amount of money. Should I consider anything else (financially) before making the change? Kelly’s Response

This year one of my resolutions is to use resources available to me. I know that Equitable Advisors and SAANYS work together to provide resources to SAANYS members. Can you tell me how I can maximize what is available to me because of this relationship? What types of things can SAANYS members get through Equitable Advisors? Kelly’s Response

In honor of National Women’s Month, what advice would you give to a woman who is suddenly in charge of her own finances for the first time?

I have two friends in this situation, one from a death of a spouse and the other from a recent divorce. In both circumstances, the significant other had control over finances and now my friends are responsible for their own financial future for the first time and feeling a little overwhelmed. Kelly’s Response

Our 14 year old entrepreneurial daughter is finishing up her summer with a nice chunk of cash from babysitting, dog walking, and pet setting for our various neighbors. She worked hard, and now has the most money she’s had ever (about $2,000).

My wife and I would like to have a sit-down with her to recognize all of her hard work, and share insight on how to responsibly handle her funds.

Do you have any general advice that we could present to her to help her make a plan? We would like to be as hands-off as possible with her money, since we trust her to make good decisions (that being said, we will still need to steer her in the right direction). Kelly’s Response

I find myself having a few retirement accounts piling up from former jobs and a few more from my past when I had good intentions to save into other investment plans (but stopped contributions a few years into it when life got busy). Should I let these accounts sit and grow on their own? What is the benefit of consolidating accounts? Kelly’s Response

My husband and I adopted a 3-year-old boy last year, and it’s one of the best decisions we’ve ever made. He’s settled in well and is a wonderful addition to our family. He is our only child, and someone recently suggested we get life insurance policies to ensure he’ll be supported if one of us passes away unexpectedly. My husband and I are in excellent health and are not sure if it’s necessary. What guidance would you have, and what policy would you recommend? We both work and make $120,000 a year combined. Kelly’s Response