Dear Plenty Community,

As of March 8, the IRS has already dished out 43 million tax refunds, totaling approximately $135.3 billion; approximately 30% of the refunds they’re expecting this year. The average refund checks in at $3,145, a bump up from $2,972 compared to the same time last year. 

In an unexpected turn of events, this high interest rate environment means that a tax refund has essentially been an interest-free loan to the government. Owing money to the government, is also essentially an interest-free loan from Uncle Sam (esp. if that money’s earning interest for you).

Usually, taxpayers rush to file when they're expecting a refund and drag their feet when they anticipate owing taxes. If you file for an extension, you'll have until October 15 to submit your returns, but remember, any taxes owed are still due by April 15, 2024.

If you're eager to reduce your 2023 tax bill, mark your calendar for April 15, 2024, the deadline for contributing to your traditional IRA and spousal IRA. Each comes with limits of $6,500 if you're under 50, but for those over 50, the contribution limit jumps to $7,500.

There's also still time to squeeze in 2023 health savings account (HSA) contributions, as long as you've got an eligible high-deductible health insurance plan. HSAs offer triple tax benefits, including an upfront deduction, tax-free growth, and tax-free withdrawals for qualifying medical expenses.

Sincerely,

Emily

The real scoop on the nine income tax-free states

If you're currently grappling with hefty income taxes in states like California, New Jersey, or Connecticut, and you're pulling in a handsome income, moving to one of these nine states could mean savings for you.

But, as with most things in life, there's rarely a free lunch. While you may skirt income taxes, you're likely to encounter higher property taxes, sales taxes, and a slew of other sneaky taxes to make up for it.

For those lacking the flexibility to uproot and move to a lower-taxed state, there's always retirement to mull over. Florida retirements may start to make more sense. No income tax means your future could feature tax-free Social Security benefits, IRA or 401(k) withdrawals, and pension payouts.

And for those already daydreaming about sandy shores and tropical sunsets, it's worth noting that, alas, Hawaii isn't among the no-income-tax havens. But fret not. In an upcoming post, we'll delve into what a move from San Francisco to Honolulu might look like. Stay tuned for more.

Retirement planning: three things to consider

Retirement might seem like a distant dream for new couples and newlyweds, but it's crucial to start planning early. As we age, time seems to fly by faster, making it all the more important to lay the groundwork for a financially secure future.

In this article, we tackle three key questions:

• When do you envision retiring?

• How much should you aim to save?

• What are your retirement aspirations?

We delve into each question to guide you towards optimal decisions. Considering the insights from the nine no-income-tax states mentioned above, we should also ponder: Where do you envision retiring?

Our CEO Emily Luk chats with the Financial Samurai aka Sam Dogen

Emily (the CEO and Co-Founder of Plenty) and Sam had a blast chatting on the Financial Samurai podcast about the fascinating evolution of modern couples (blog post).

At Plenty, we've noticed that today's couples tend to fall into three main financial management styles: 

Option #1: The Yours/Mine/Ours approach 

Option #2: The Join-It-All approach 

Option #3: The What's-Yours-Is-Yours approach

The key is to find the approach that suits your unique lifestyle best. We're here to support all couples in navigating their financial journey together.

During our lively podcast discussion, we delved into why couples are tying the knot and starting families later in life, the rising costs of egg freezing, the modern dating scene, and more.

Catch our episode on Apple or Spotify, and keep an eye out for Plenty's own upcoming podcast series, where Emily will be interviewing other experts in the realm of money and relationships. 

Plenty is a wealth platform helping modern couples invest and plan for their future together. We bring the investment strategies and products of the wealthy to the everyday household. For more information, visit withplenty.com. If you ever have any feedback or questions, please do reach out to us at [email protected].

At Plenty, no financial topic is off-limits for modern couples. We offer straight talk and judgment-free guidance to help modern couples navigate the tricky and important intersection of money and relationships. Join thousands of couples who’ve signed up for our free newsletter today.

Plenty Financial RIA, LLC is an SEC-Registered Investment Advisor. All investments made are legally owned by you. Investing is inherently risky and Plenty does not guarantee positive performance. Investments are held in accounts at BNY Mellon | Pershings, the world’s largest securities servicing company and are SIPC insured. Investing involves risk, including the possible loss of principal, and there is no assurance that the investment will provide positive performance over any period of time. Please see Plenty Financial’s general disclosures. Brokerage services are provided by Atomic Brokerage LLC "Atomic Brokerage", member FINRA and SIPC. Clearing and custody services are provided by Brokerage firm BNY Mellon Pershing, member SIPC. Plenty Financial RIA, LLC has a relationship with Atomic Brokerage to manage and execute investments on behalf of customers. Subadvisory services are offered through Atomic Invest LLC ("Atomic Invest"), an SEC-registered investment advisor, member SIPC. Atomic Invest was formerly known as Helium Advisors LLC. Registration as an investment adviser does not imply a particular level of skill or training.