Investing in Your Future

EDWARD JONES

Use your tax refund wisely

It is tax time again – which for many Americans means that a tax refund is on its way. If you’re going to get a refund this year, how can you use the money to your best advantage?

Of course, it is always tempting to spend the check from Uncle Sam on something fun. But a tax refund could be sizable – the average amount in 2016 was $2,857, according to the IRS – so putting this money to work could help boost your progress toward your financial goals.

Here are some possibilities for using your refund:

Help fund your IRA. If you were to receive a tax refund of $2,857, you would have slightly more than half of the $5,500 annual IRA contribution limit for 2017, although, if you are 50 or older, you can contribute an extra $1,000. Consequently, you may find it much easier to fully fund your IRA for the year — and you should do exactly that, because an IRA is a great retirement savings vehicle. If you have a traditional IRA, your contributions may be fully or partially deductible, depending on your income, while your earnings can grow tax deferred. (Taxes are due upon withdrawal, and withdrawals prior to age 59-1/2 may be subject to a 10% IRS penalty.) With a Roth IRA, your contributions are not deductible, but your earnings are distributed tax-free, provided you don’t start taking withdrawals until you are 59-1/2 and you have had your account at least five years.

Help diversify your portfolio. If a market downturn hits one asset class, and that’s where you keep most of your money, you could take a big hit. Owning an array of investments – such as stocks, bonds, certificates of deposit, and so on – can help prepare your portfolio to weather the effects of market volatility. By adding new investments, or increasing your holdings of existing investments, you may be able to further diversify your portfolio – and you can use your refund for this purpose. (Keep in mind, though, that diversification, by itself, cannot guarantee profits or protect against loss.)

Contribute to a 529 plan. If you have children or grandchildren whom you would like to help send to college, consider using your tax refund to help fund a 529 plan. Your 529 plan contributions may be deductible from your state taxes, and your earnings are distributed tax-free, provided they are used for qualified higher education expenses. (However, withdrawals not used for higher education expenses may be subject to both income tax and a 10% penalty.)

Pay off some debts. You can help improve your financial picture by reducing your debt load – but it may make sense to prioritize these debts. For example, rather than make an extra mortgage payment, you might want to first tackle those debts or loans that carry a high interest rate and that don’t allow you to deduct interest payments. After all, your monthly mortgage payment will remain the same even if you make an extra payment, but if you can get rid of some smaller debts, you will free up some cash that you could use to invest for your future.

Think carefully about how to use your tax refund. It represents an opportunity that you will not want to waste.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Reduce your risk of STDs

Gonorrhea and chlamydia are common and curable sexually transmitted diseases (STDs) caused by the bacteria that grow in warm moist areas including the urethra, vagina, cervix fallopian tubes, anus and rectum.

Approximately 75% of females and 50% of men have no symptoms from chlamydia.  Symptoms may include an abnormal discharge from the vagina or penis and/or pain while urinating. Most men experience some symptoms from gonorrhea, including burning when urinating, a yellowish-white discharge from the penis and painful or swollen testicles.  Many women with gonorrhea have no symptoms, but some have painful burning when urinating and vaginal discharge. Chlamydia and gonorrhea can lead to pelvic inflammatory disease in women, and infertility in both men and women.

If you are sexually active, reduce your risk by always using a condom during oral, vaginal and anal sex. Since most people have no symptoms, it is important to get tested for STDs.  If you test positive for chlamydia or gonorrhea, your health care provider will give you a prescription for antibiotics or treat you in the office. If you are infected, talk to your partner as soon as possible so that he or she can be tested and treated also.

The Berrien County Health        Department offers STD testing and treatment at its locations in Benton Harbor and in Niles. Please call 269-926-7121 for more information or to schedule an appointment.

Helping increase organ donations in Michigan

More than 120,000 Americans are currently in need of a life-saving organ transplant, including more than 3,500 people here in our state.

While about half of Michigan adults are currently registered as organ donors, it’s not enough to meet the need. The governor recently signed my legislation, known as Lauren’s Law, to help ensure that we are doing everything possible to give the gift of life to those who need a transplant.

The act requires the secretary of state’s office to inquire whether someone wishes to be added to the Michigan anatomical gift donor registry when he or she applies for a driver’s license.

It is named “Lauren’s Law” after Lauren Shields, who at age 9 was placed on life support while waiting for a heart transplant, which she eventually received. She became the face of organ donation in New York and helped pass a similar law there.

I want to thank John Grinnell, a Southwest Michigan resident and kidney transplant recipient, for getting me involved in this issue.

To help raise awareness about organ donation, Sen. Morris Hood III, D-Detroit, and I sponsored a Senate resolution declaring Valentine’s Day as Organ Donor Registry Day.

I was proud to see the senate come together in a bipartisan effort to let people know about our state’s organ donor registry and how they can help.

Becoming an organ donor might be the most impactful thing in someone else’s life that any of us ever do. It is easy to do and could save lives.

For information about donating or to sign up to become a donor, residents may visit the Gift of Life Michigan website at GiftofLifeMichigan.org.

As always, I look forward to hearing your comments and feedback on the important issues facing Michigan. You can contact me at 517-373-6960.

House Republicans unveil action plan

Recently, I joined my Republican colleagues in the House to unveil our 2017-2018 Action Plan. It is a broad reaching plan of action for the next two years, which will help to drive Michigan’s continuing comeback and invest in our state’s long-term prosperity. I believe it is important that we share our goals with the people of Michigan, so that we can be transparent and held accountable for accomplishing what we set out to do. I also hope that it will prompt you to share with me your ideas about moving Michigan forward.

In the last several years, Michigan has made significant progress in recovering from the lost decade, but success is a journey, not a destination. In recognition of that, House Republicans are committed to pursuing policies that will drive growth and make Michigan an even better place to live, work, and raise a family. This includes a number of priorities, such as ensuring that state government lives within it means and is efficient, effective and transparent. We should be working to reduce auto insurance rates while protecting drivers. We should be investing in our students, so that they are better prepared to compete in the global economy and be our state’s future leaders. We should be reducing burdensome regulation, and making sure that state government works with job creators, not against them. Finally, we must be investing in Michigan’s infrastructure, not only roads and bridges, but also our water systems, energy infrastructure and high-speed broadband.

While doing this, we are also committed to being fiscally responsible and paying down the state’s long-term debts. We must continue to pass balanced budgets on time, so that our schools and local governments have certainty in their budgeting process. You can view the full action plan, as well as other news and updates from House Republicans at www.gophouse.org.

I hope that you will continue to share your thoughts and concerns with me and contact my office if I can ever be of assistance to you or your family. You can reach me toll free at 1-800-577-6212 or via email at BethGriffin@house.mi.gov.

Encouraging the hiring of our veterans

Last week, the House of Representatives advanced two important bills that will help our nation’s veterans. A major problem with returning veterans, especially those serving in Iraq and Afghanistan, is finding civilian employment. These two bipartisan bills will encourage businesses here in Southwest Michigan and across the country to hire and retain our veterans.

The first piece of legislation is H.R. 244, the HIRE Vets Act, sponsored by U.S. Rep. Paul Cook, R-California. This bill requires the Department of Labor (DOL) to establish the HIRE Vets Medallion Program within two years of enactment, to annually recognize private and public-sector businesses for their efforts to employ veterans. H.R. 244 was passed by the House on a bipartisan vote of 409 to 1.

The second bill is H.R. 974, the Boosting Rates of American Veteran Employment (BRAVE) Act, sponsored by U.S. Rep. Kathleen Rice, D-New York. This bill allows the Secretary of the Department of Veterans Affairs, when awarding procurement contracts for goods or service, to give preference to government contractors that employ veterans on a full-time basis. The bill would also allow the Secretary to debar contractors who purposely misrepresent their employment of veterans to receive a contract. This bill passed the House on a bipartisan vote of 407 to 0.

Legislation to improve the lives of our brave men and women in uniform is always the easiest vote for me to make. These votes were no different.

To learn more about this and other important legislative issues, please visit my website: upton.house.gov or call my offices in Kalamazoo (269-385-0039), St. Joseph/Benton Harbor (269-982-1986), or Washington, D.C. (202-225-3761).