gas prices
9 Best Apps to Find Cheap Gas Stations & Save Money On Fuel
4 Ways to Beat Uber Surge Pricing
Donât let Uber surge pricing leave you broke. Use one of these five tricks to get a cheaper ride wherever you need to go.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
No Tax for Donating Leave to Ukraine Victims
Russia’s invasion of Ukraine has triggered a worldwide outpouring of support for victims of the war. And aide to those suffering is not just coming from other nations. Ordinary citizens from around the world are helping, too. They’re showing up in neighboring countries to help refugees, sending care packages, donating to relief organizations, giving blood, and more.
- SEE MORE 140 Companies That Have Pulled Out of Russia
In the U.S., some companies are facilitating this effort by setting up leave-based donation programs. Under these programs, workers can give up their vacation, sick, or personal leave in exchange for having their employer make a cash donation to a charitable organization tied to Ukrainian relief efforts. However, one of the questions workers may have about participating a leave-based donation program is whether their donation will be treated as taxable income on their W-2 form.
Fortunately, the IRS has cleared up this concern for leave-based programs set up to help victims of the war in Ukraine. According to the tax agency, payments made by an employer under such a leave-based donation program before January 1, 2023, won’t be treated as gross income, wages, or compensation of their workers. As a result, employees who elect to forgo leave under a leave-based donation program to help Ukrainian war victims won’t be treated as having constructively received gross income, wages, or compensation. That also means an employer shouldn’t include the payments it makes to a charity under the program in Box 1, 3, or 5 of its electing employees’ W-2 forms.
However, to prevent “double dipping,” workers who participate in a leave-based donation program can’t claim a charitable contribution deduction on their 2022 tax return for the value of their forgone leave. On the other hand, the employer may be able to deduct its payments to charity if it otherwise meets the requirements for a charitable deduction.
- SEE MORE Why Are Gas Prices Still Going Up?
The Free Upside App Shows You Where to Save up to 25 Cents/Gallon on Gas
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Will Gas Prices Ever Go Down?
As it becomes increasingly painful to fill up your gas tank, you might well be wondering: Will gas prices go down at some point?
Fuel prices feel like they’ve been on a never-ending ride higher of late. A year ago, the national average price of regular unleaded was $2.96 per gallon, according to travel website AAA. A month ago, it was $4.12. Today, it’s $4.33. And it’s probably heading higher still this spring.
- SEE MORE The 25 Cheapest U.S. Cities to Live In
We recently looked at the reasons why gas prices are so high: global oil demand rebounding from the pandemic faster than production. The war in Ukraine. Efforts in the U.S. to transition the economy away from reliance on fossil fuels. Energy companies’ reluctance to invest in more oil production.
Now, we’ll try to answer the question undoubtedly on many drivers’ minds: Will gas prices go down soon â and if so, what will do the pushing?
Fuel Tax Relief?
A few states have tried to ease the financial burden on their residents by suspending their state fuel taxes for a short period. But are gas prices doing down because of those moves?
Not really.
For instance, Connecticut suspended its 25-cent-per gallon state levy on fuel for April, May and June. But according to AAA, the average price of regular unleaded in the Nutmeg State today is $4.32, up from $4.13 a week ago. Increases in crude oil prices can swamp the effect of suspending a state’s gas tax. And when those state taxes are paused, the savings don’t all go in the driver’s pocket. Fuel sellers keep some portion of them.
Could the federal government give drivers nationwide a tax cut by suspending the 18.3-cent-per-gallon federal tax on gas? Unlikely, report my colleagues at The Kiplinger Letter, who regularly speak with lawmakers on Capitol Hill to assess which bills have a chance of passing.
In the case of a proposed suspension of the federal gas tax, Democrats, the majority party, can’t agree among themselves to do it.
More Oil on the Way
Here’s a little good news: More crude oil should be reaching the global market later this year, which means more gasoline and other refined fuels. Eventually, that should help push gas prices down, or at least keep them from rising so fast.
- SEE MORE Calculating Taxes on Social Security Benefits
In the U.S., energy companies are slowly putting more rigs to work drilling new wells, even as they prioritize returning cash to investors via share buybacks and dividends. Oilfield services company Baker Hughes reports on the number of working rigs in the U.S. each week, and most weeks lately, the tally has risen a bit. Meanwhile, OPEC announced last week that it will continue with its plan to gradually restore the oil exports it cut in 2020 when prices plunged, which means adding about 400,000 barrels of daily exports each month.
The bad news: Neither domestic oil output nor OPEC’s sales are rising fast enough to push oil prices down now. And that means gas prices are unlikely to take a breather soon, either.
So, when can we expect gas prices to go down?
Gas Prices Could Go Down During Autumn
A good bet for when gas prices will go down is the fall, if seasonal patterns hold up this year.
Before COVID-19 scrambled those patterns, gas prices would typically rise in spring, peak sometime around Memorial Day, ease a bit but stay high during the summer, then pull back sometime after Labor Day.
As post-pandemic life gets back to normal, that pattern could return this year. Heavy summer travel and the resulting heavy demand for gas are likely to ebb by late summer or early fall as kids go back to school. By then, the Federal Reserve’s interest rate hikes will have had some time to slow the overall economy, which should weigh on oil demand, too. OPEC should be pumping more oil then, as will the U.S., continuing the slow rebound in production from the pandemic-induced slump.
That might not be much comfort to motorists as they pay for expensive fill-ups this spring and summer. But unless an economic recession comes along soon and crimps demand for fuel in painful fashion, high gas prices probably won’t go down anytime soon.
- SEE MORE The 22 Best Stocks to Buy for 2022
Inflation Hedge – What It Is and How It Protects Your Investment
How People with Pandemic-Induced Financial Fatigue Can Get Back on Track
People are worn out. They are trying to make it through the stress of the pandemic, a continually volatile market and record inflation. And, for many who are years from retirement, they have decades of work ahead of them.
These younger Americans are in the middle of their working years â those critical saving-for-retirement years. Itâs not easy to keep those retirement goals in mind when current finances feel uncertain.
- SEE MORE Is Budgeting Overrated?
The new 2022 Retirement Risk Readiness study* from Allianz Life found that people who have yet to retire are much more concerned about their financial futures than retirees â particularly after two years of uncertainty with the pandemic.
The big point: People further from retirement feel financially at risk.
The majority of younger Americans (particularly those more than 10 years from retirement) are more afraid of running out of money than death. In the study, 63% of non-retirees said they fear running out of money more than death. Meanwhile, just 46% of retirees had the same fear. All people are saving and investing in the same market. Yet, these younger Americans are much more worried about their financial future.
Actions taken during the pandemic could be one reason they donât feel secure because, according to the study, non-retired Americans made some financial decisions during the pandemic that left them in a precarious position:
- 34% took cash out of investment accounts like a 401(k) or IRA.
- 39% reduced the amount of money they were putting into retirement accounts.
- 54% said they spent too much on non-necessities.
In general, people should refrain from touching retirement investment accounts until they leave the workforce. They should also maintain contributions to those accounts. But, these moves already happened â an opportunity lost. So, letâs focus on what people can do to address risks to their retirement security, starting today.
Here are some tips to get back, or stay, on track toward retirement goals. The proposed SECURE ACT 2.0 looks like it will pass at the time of this writing, and some of the provisions will help saving for retirement more attractive and affordable for younger pre-retirees.
Get back to basics
Sometimes you have to return to Finance 101. Re-examine your monthly income and expenses. Find out how much you can reasonably save â and then do it. Make a plan to pay off debt, especially high-interest or non-mortgage debt like credit card debt and car loans.
The hardest part about this process is that it involves work and brutal honesty. You have to write everything down â donât expect youâll remember everything. This is where commitment begins.
Then, start checking down the list of ways you can make those efforts work even harder for you. First consider putting those savings into a high-yield savings account. Once you have an emergency fund of around six monthsâ worth of expenses in cash, then you can start putting money into investment accounts.
If your employer offers a retirement savings plan, consider enrolling in it. Many companies also offer employees a match on contributions to a retirement account as part of their benefits package. Take full advantage of it. That means, if you make $50,000 a year and your company matches 5%, you could invest $2,500 into a 401(k) plan a year and automatically double that with another $2,500 from your employer. By the end of the year, you have just put 10% of your salary into retirement savings.
The proposed SECURE ACT 2.0 contains a provision that would provide for automatic enrollment for employees at a 3% contribution rate that will increase every year by 1%. Before this comes about, make sure you are comfortable with that amount. Also, if student loan debt is preventing you from being able to make contributions, there is currently a provision that would allow employers to match what you are paying in student loans with a contribution to your 401(k) or other employer plan. If the bill passes, you should ask about this.
You could also be eligible for tax credits for those contributions made to retirement accounts. The Saverâs Credit is available to some low-to-moderate income families. The Saverâs Credit gives a tax break for contributions made to an IRA or employer-sponsored retirement plan.
Automate your savings
The easiest way to save is not to have to think about it. This is one reason why 401(k) contributions are so great. They come out of your check each pay period without you having to make an active decision. This eliminates the temptation to spend, spend, spend. Particularly if youâre among the more than half of non-retirees who said they spent too much money on non-necessities during the pandemic.
Examining your budget could help figure out how you could change your monthly cash flow to put more money into savings and investment accounts. Automatic transfers from checking into these accounts will establish strong habits. You could start with something as simple as a $10 transfer into these types of accounts each week.
Catch-up contributions
Once you reach age 50, you can make catch-up contributions to IRAs and 401(k) plans. That means you can go beyond the normal limits to contributions allowed in those plans. This can help make up for not saving as much as you would have liked in the past.
The typical contribution limit for 401(k) plans is $20,500 in 2022. A catch-up contribution allows you to put another $6,500 into the plan. The proposed SECURE Act 2.0 has a provision to increase the catch up contributions to as much as $10,000 starting at age 62. There may also be a way your employer could match your Roth 401(k) contributions that could potentially add more tax-free retirement income for you later in life. You should consult with a tax adviser on whether this makes sense for you.
Manage your risk
Donât be seduced by a potentially huge upside. If youâre feeling behind, you may want to protect the money that you are investing.
Sure, a riskier investment might have a bigger payoff over time than the traditional, safer choice. But, that means the risk to lose is higher too.
- SEE MORE Why Are Gas Prices So High If the U.S. Is Energy Independent?
Consider creating a balanced portfolio of investments with varying levels of risks. That balance should include financial products like index funds, bonds and annuities that historically carry less risk. Investments that offer some risk mitigation, such as buffered (ETFs), or fixed indexed or registered index linked annuities (RILAs) with buffers could also be considered.
As you age, the more you should seek to control risk in your portfolio. Oftentimes these buffered products are a good compromise between a fixed investment that is not likely to keep pace with inflation and investing in something like stocks, which have inherent risks or are subject to volatility. Talk over your options with your financial adviser to come up with a balance between the need for growth and your ability or willingness to accept a certain level of risk.
Make more money
Between savings taking a back seat and record-setting inflation, you might just need to make more money to right your financial strategy. Sometimes the only way to save more is to make more.
Now might be the time to ask for a raise or look for a new, higher paying job. The labor market is in your favor with companies fighting to attract and retain talent. The study also found that 53% of non-retirees have had to or expect to find a job that pays more money due to the rising cost of living, so youâre not alone if you fall into this camp.
Use your increased earnings to increase your savings. Sure, it means you can spend more elsewhere too. Just be aware of lifestyle creep detracting from your future goals.
Create a long-term plan and consult a professional
Creating a long-term financial plan will help you think in detail about what you want those 20 to 30 retired years to look. The most important thing is that it has to be written down. Having a plan in your head does not work. While there is online software that can help, you really need to work with a professional who will create a plan for you.Â
This takes work, which is why many people donât do it. However, after you put in the initial effort, your plan is an invaluable asset that you can refer to, adjust and find comfort in as you move toward and through retirement.
A good written plan will also account for risks to that ideal future in retirement. Risks like volatility, inflation and longevity all pose a threat to those plans. You can incorporate financial strategies that can mitigate those risks.Â
Creating this document will determine strategies to set yourself up to attain that retirement lifestyle you deserve. Your actions now will dictate how you will secure those retirement goals. There is no one-size-fits-all financial plan. These tips are in the âfits mostâ category. Your financial situation would benefit from the detailed assistance of a professional.
*Allianz Life Insurance Company of North America conducted an online survey, the 2022 Retirement Risk Readiness Study, in February 2022 with a nationally representative sample of 1,000 individuals age 25+ in the contiguous U.S. with an annual household income of $50k+ (single) / $75k+ (married/partnered) OR investable assets of $150k.
- SEE MORE 5 Quick and Dirty Questions to Pick a Financial Adviser
This content is for general educational purposes only. It is not, however, intended to provide fiduciary, tax or legal advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Allianz Life Insurance Company of North America, its affiliated companies, and their representatives and employees do not give fiduciary, tax or legal advice. Clients are encouraged to consult their tax advisor or attorney for their particular situation
Allianz does not offer financial planning services.
Registered Index Linked Annuities are subject to investment risk, including possible loss of principal. Investment returns and principal value will fluctuate with market conditions so that units, upon distribution, may be worth more or less than the original cost.
Investing involves risk including possible loss of principal. There is no guarantee the funds will achieve their investment objectives and may not be suitable for all investors.Â
Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Variable annuity guarantees do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.
Products are issued by Allianz Life Insurance Company of North America. Variable products are distributed by its affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. 800.542.5427 www.allianzlife.com
Save Big Bucks By Being A One-Car Household
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.