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Advice and Planning,Financial Education,Financial Security

Financial Knowledge in 2022

It is a new year, and with it comes financial changes. We at Centricity want to keep you informed on what has changed in the world of Personal Finance in 2022

                   

Investments

401(K) Contributions
The IRS has increased the amount you can contribute to your 401(k) in 2022. You can now contribute an annual amount of $20,500 for ‘22 (up from $19,500 in 2021).
Individual Retirement Accounts (IRA)
Contributions to IRA’s are capped at $6000 ($7000 if aged 50+) for ‘22, so there is no change from ’21. Keep in mind you can still contribute to the ‘21 capped value until April 15 of 2022.
Learn more about investments and IRAs.

                      

Budgeting in the New Year

Changes in income and expenditure
You can expect some changes in your budget in ‘22. Wages have been shifting with an upward trend, but prices have also gone up. Here are some key budgeting factors to consider.
  • Inflation has led to a rise in prices, especially in food (meat) and rent
  • Student loan payments are scheduled to return in May ‘22
  • Covid-19 restrictions are shifting, and a return to activities may result in higher expenses, but you may still find yourself saving due to remaining restrictions, such as in travel.
  • Don’t forget about your subscriptions! With many services becoming subscription-based, it is a good time to review which you want and which you don’t.
  • The Child Tax Credit was not renewed in ‘22, You may see it return if the Build Back Better plan is passed. For now, if you are a parent who had received it, plan for the loss of the tax credit.

                      

Scams

Beware of Fraudsters!
Scammers are often coming up with new ways to get your information. Be wary of phone spoofing and remember that most institutions won’t call you to ask for your personal info.
Make sure your information is up-to-date across your services, as it makes it easier for them to help you should you need it.
Learn more about recent scams and how to keep your information safe from fraudsters.

                      

Questions?

Contact us to schedule an appointment with our certified financial counseling staff.
We’re here to help you make the most of your finances!