​Youth sports are highly popular in the United States. According to Project Play, 54 percent of American youths between the ages of six and 17 participated in a team sports program or engaged in after-school or weekend sports lessons. The study did not account for youths who enjoy recreational athletic activities outside of organized youth sports leagues. Families in the US considering youth sports for their children have many options to choose from.

Studies indicate that soccer is the most popular youth sport in America, with upwards of three million registered youth athletes. Over the last 10 years, the sport's participation rate has increased at a growth rate of about four percent. Many factors have contributed to the sport's rise in popularity, from its massive international following to the minimal equipment requirements.

Basketball is another top sport among American youths, attracting roughly 2.6 million participants each year. Basketball is notably the most "equitable" youth sport in the US, with comparable splits across different demographics, including participation levels among boys and girls. Among various attractive qualities, basketball is one of the most consistent offerings from high school sports programs, contributing to its national popularity.

It bears repeating that these are only official numbers; recreational baseball slightly trails basketball with about 2.5 million youth athletes. Little League Baseball represents one of the oldest youth sports traditions in the US and, more recently, has expanded to include Little League Softball. When combined, baseball and softball stand as the country's most popular youth sports, with 3.6 million total student-athletes, though many players compete in both baseball and softball.

In recent years, health and safety concerns have impacted participation rates for youth football. The sport remains popular, however, attracting more than 1.5 million youth athletes every year. Participation skews heavily towards male athletes. Several trends may impact the future popularity of the sport, such as the rise of organized leagues for flag football, which will be present at the 2028 Summer Olympics in Los Angeles.

Several youth sports programs in America have expanded considerably in recent years, including volleyball. Volleyball's popularity is on a steep incline and is approaching 850,000 youth participants. Families have the option of signing up for a club team or participating in a school-run program.

Lacrosse is another sport recognized for its rapid rise in popularity and participation in recent years. Over 300,000 student-athletes play lacrosse, a dynamic, fast-paced game that may be contributing to football's decline.

America has a longstanding tradition of ice hockey. That said, participation levels are often higher in locations with colder climates. The majority of America's more than 550,000 youth hockey players play in school and after-school leagues where ice rinks are readily accessible.

Many youth athletes in America take part in team sports. Families interested in individual sports should consider tennis, a sport that draws about 400,000 youth athletes annually. Tennis is a safe sport, especially compared to contact sports like football, but the cost associated with rackets and court time may deter some families.

Finally, over 300,000 youth athletes in America take part in track and field programs. Track and field is unique because athletes can compete in multiple disciplines, from distance running to jumping events.

​Fixed and variable annuities serve as alternative investment vehicles, providing investors with options beyond traditional securities. Fixed annuities can hedge against market fluctuations, and variable annuities have the potential to generate high returns. Both fixed and variable annuities offer investors benefits tailored to specific needs.

Geopolitical and economic forces have sparked investor interest in fixed annuities. During periods of economic stability and bull markets, investors tend to invest in stocks and equities, which have a higher likelihood of yielding high returns in a high-growth market environment. However, during bear or market correction periods, investments, namely securities, decrease in value. In response, investors seek safer investments. Therefore, they may choose fixed annuities over variable ones.

Generally, insurance companies issue annuities or contracts between the issuer and the consumer, which have a predetermined rate. An annuity helps achieve specific financial goals, such as purchasing a home or saving for a child's college education.

Fixed annuities protect investors by providing guarantees on the interest rate each year of the contract. The investor funds the contract, and the insurance company conducts an actuarial analysis to determine the payments. The contract may provide for a lifetime of payments or a fixed number of years. Furthermore, some annuities allow investors to receive payments immediately or defer them for a specified period.

Fixed annuities offer investors more security than their variable counterparts because they guarantee a return, even in a volatile market, and can provide a consistent income stream. Their low-maintenance nature means that they do not require annual reviews and updates. Conversely, their drawbacks include the lack of flexibility for investors to make changes and lower returns compared to variable annuities.

Variable annuities have some complications because the issuer offers investment options, referred to as subaccounts, comprised of stocks, bonds, money markets, and other asset classes. Unlike fixed annuities, which provide a guaranteed return, the returns of variable annuities depend on the performance of the investments selected by the purchaser. Thus, it may return greater or fewer returns than a fixed annuity.

Variable annuities offer investors more investment choices and have the potential to provide higher returns than fixed annuities. When examining the entire portfolio, variable annuities can help diversify a plan that contains low-risk products. However, the variety means that investors will pay higher fees to manage their investments compared to fixed annuities, which could reduce returns. Finally, variable annuities carry more risk because they typically contain a mix of stocks, bonds, and other securities.

The best investment choice depends on the investor's financial goals and objectives. Considerations include risk tolerance, retirement window, and environmental factors, such as inflation. Conservative investors may opt for fixed annuities that come with guarantees and lower fees than those with a high-risk profile. Those who can withstand market fluctuations in the stock market are willing to pay extra costs and invest in variable annuities. Furthermore, someone with a short time horizon for retirement might opt for a fixed annuity to guarantee savings toward their portfolio compared to someone with a greater time horizon, which mitigates market volatility.

​In a July 2024 MSN article, experts explain why 2024 became the year to invest in bonds. Most bonds do not generate significant returns, making them an underappreciated investment vehicle. However, bonds offer investors a place to invest capital in an interest-bearing, stable financial vehicle.

The rise in bond interest in 2024 began before the pandemic when investors shifted their capital among different high-yielding savings accounts to achieve a 1 percent return on their investment. At the time, bonds yielded very little interest, so stocks became the only viable investment alternative for those seeking high returns. By 2024, inflation and the federal government’s actions to curb it through rate hikes created an environment where bonds became more attractive, as agencies issuing new bonds offered higher rates to compete with existing ones.

Bonds still have a place in any portfolio. Bonds serve as loans that investors, corporations, and government agencies issue for the public to invest in. These groups use the funding to support specific projects, ventures, or programs. Thus, investors benefit from purchasing bonds through the interest that the bond issuer pays them at regular intervals throughout the term (life) of the bond.

An investor can purchase a bond for as little as $100, with some backed by mortgage contracts, buildings, equipment, and other tangible assets. Bond purchasers can also buy and sell bonds in the same way as stocks and other securities, but they become vulnerable to fluctuations in prices, which can result in selling at a high or low price. Finally, the longer the bond’s maturity term, the more likely it is to fluctuate in price, which exposes this investment vehicle to certain risks.

Compared with other securities, bonds remain a conservative investment vehicle and carry lower risk. Nonetheless, investors face the risk of experiencing a price drop, and the bond could sell for less than its original purchase price. Furthermore, inflation can cause fixed-interest bonds to lose value because their interest payments do not maintain the same purchasing power. Sometimes, the bond issuer cannot make interest payments or fulfill the bond’s value at the end of its term.

Compared to high-yielding investment vehicles, bonds exhibit lower volatility. The low volatility means that they will not yield as much in return as stocks, equities, and other investments. However, bonds help diversify portfolios, balancing them and reducing risk. In a portfolio, bonds often move in the opposite direction of stocks, providing a buffer against volatility.

Moreover, bonds offer a fixed stream of income. For example, retirees find that bond interest payments offer a reliable source of income. High-income investors in municipal bonds benefit from their federal tax exemption. In some cases, they also do not incur state and local taxes. When compared with CDs, savings accounts, and money market funds, bonds are more attractive.

In certain instances, bonds outperform cash equivalents. Cash equivalents are highly liquid investment vehicles that investors can easily convert to cash, such as CDs, bankers’ acceptances, corporate commercial paper, and money market instruments. They also have short maturity times and are low risk. In comparison with cash equivalents, bonds have historically outperformed them. Over the 95 years spanning 1928 and 2023, bonds delivered returns 1.3 percent higher than those of cash.

​Building an investment portfolio involves understanding markets, choosing suitable investments, and using available resources to make informed decisions. It also requires careful planning to manage risks and achieve financial goals through strategies such as risk diversification.

Risk diversification includes investing in bonds, mutual funds, and stocks. Thus, a well-constructed portfolio balances different risk levels and types to reduce the impact of significant declines in any single holding. Diversifying across multiple asset classes can lower the chance of substantial losses.

Next, investors should consider asset allocation, which defines the distribution of funds among different investment categories. Sometimes, investors benefit from adopting a broader diversification strategy rather than focusing on individual investments. Different asset classes have varying rates of return and levels of volatility over time. For instance, stocks may increase in value while bonds decrease, or vice versa, depending on market conditions. Therefore, allocating assets strategically can help stabilize portfolio performance and maximize potential returns.

​Those with significant college expenses can take advantage of IRS income tax breaks. The American Opportunity Tax Credit (AOC) is a common option, restricted to the first four years of undergraduate education (whether this involves oneself, one’s spouse, or one's offspring). This makes professional and graduate courses ineligible.

The AOC provides credit extending to a maximum of $2,500. This represents 100 percent of initial qualifying expenses up to $2,000, with the remaining $500 representing 25 percent of the next tranche of qualified expenses up to $2,000. Qualifying expenses include tuition, mandatory school fees, and the costs of textbooks and other learning materials. Transportation, personal living expenses, and medical outlays while attending college do not apply. AOC stipulates that the person must attend a qualifying college on at least a half-time basis. With more than one dependent potentially qualifying, the full tax deduction is limited to those with a Modified Adjusted Gross Income (MAGI) of under $80,000.

Those seeking a tax break for educational expenses outside AOC eligibility, such as when gaining job skills or pursuing a hobby, may still qualify for the Lifetime Learning Tax Credit (LLC). This covers a maximum of $2,000 in expenses and is calculated as 20 percent of that year’s initial $10,000 tuition and associated costs. The same $80,000 MAGI rule applies. As AOC and LLC credits may not be claimed for the same student in the same year, one must select one or the other if the student qualifies for both.

​Estimating how much money someone needs during retirement involves predicting their future expenses. Then, they can map that prediction onto their anticipated savings.

Common retirement income sources include accrued savings, Social Security, and work pensions. The exact amount from each income stream can depend on age, Social Security eligibility, and how much individuals set aside in their savings. Moreover, the amount someone should accumulate for retirement depends on their desired standard of living.

Financial planners recommend that individuals use the four percent rule. It assumes that retirees will spend four percent of their savings annually before factoring in unanticipated expenses, like vacations or emergencies. The rule provides some flexibility, but individuals should consider that annual expenses may increase with age due to medical care. Factors like their estimated life expectancy can also impact the minimum savings they'll need and how long they can use them before running out.

Investing in stocks, bonds, or other financial instruments presents a heightened risk but can yield more money than savings alone. Individuals who begin investing young can employ riskier strategies and transition to lower-risk products as they approach retirement age. If these savings measures don't meet a retiree's expenses, they can continue working full-time past retirement age or transition into working part-time.

​Gift tax is a component of estate planning that warrants a closer examination to ensure financial clarity and compliance. A gift tax includes any transfer of property or assets to another individual without receiving any significant form of compensation in return. This includes tangible items like cash and real estate and intangible assets like stocks and bonds.

Understanding the fundamentals of gift tax, including what constitutes a taxable gift, available exclusions and exemptions, and reporting obligations, empowers individuals to navigate the complexities of estate planning with confidence and foresight. It is worth noting that not all gifts are subject to taxation. The Internal Revenue Service (IRS) provides specific exclusions and exemptions to lessen the burden on taxpayers. These include the annual exclusion, allowing individuals to gift up to a specified amount each year per recipient without incurring gift tax. Additionally, gifts made for medical or educational expenses and those between spouses are often exempt from taxation.

Understanding reporting requirements is equally important. While gifts below the annual exclusion threshold typically do not require reporting, larger gifts require filing a gift tax return, Form 709, to disclose the details of the transaction. The form must then be attached to the annual tax return by the tax filing deadline of the year after the gift was made.

​Individual Retirement Accounts (IRAs) serve as indispensable tools for individuals aiming to protect their financial future through tax-advantaged savings. Whether one is self-employed or already contributing to a workplace retirement plan like a 401(k), IRAs present additional avenues for accumulating wealth and preparing for retirement.

An IRA, short for individual retirement account, constitutes a specialized savings account tailored to facilitate long-term retirement planning. Unlike employer-sponsored retirement plans such as the 401(k), IRAs extend accessibility to individuals with earned income, giving them a means to save and invest for retirement independently.

There are various types of IRAs. Each has its own distinct eligibility criteria, tax implications, and withdrawal rules. The four main types are traditional, Roth, SEP, and SIMPLE IRAs.

Traditional IRAs offer potential tax deductions for contributions. They defer taxation until retirement withdrawals, thereby fostering upfront tax savings and future growth. Conversely, Roth IRAs offer tax-free withdrawals of both contributions and investment gains during retirement, making them particularly advantageous for young investors.

SEP IRAs are especially tailored for self-employed individuals and small business owners. They feature flexible contribution limits and tax advantages conducive to retirement savings. Similarly, SIMPLE IRAs are designed for small businesses and self-employed individuals. They incorporate employer contributions and straightforward retirement savings options for employees.

Selecting the most suitable IRA hinges on various factors such as current income, tax situation, retirement goals, and risk tolerance. Consulting with a financial advisor or tax professional can provide valuable insights into selecting the optimal IRA.

Establishing an IRA is a relatively straightforward process, with options available through banks, investment firms, and online brokerages. Once opened, individuals can invest in a wide range of financial products, tailoring their investment strategy to their unique financial goals and risk tolerance.

Contribution limits for IRAs vary based on the type and the individual’s age, with tax considerations also playing a pivotal role. Deductible contributions and income phase-out ranges impact traditional IRAs, while Roth IRAs offer tax-free withdrawals under specified conditions. For example, one cannot withdraw funds until they reach the age of 59.5 years. Early withdrawals before this age often incur a 10 percent penalty, alongside income taxes. Exceptions exist for specific life events such as medical expenses and first-time home purchases, mitigating penalties under certain circumstances.

Contributing to an IRA allows one to harness the power of compound interest, enabling their savings to grow over time. For the 2023 tax year, eligible taxpayers can contribute up to $6,500 annually to a traditional or Roth IRA. These contributions offer the potential for substantial growth, especially when invested wisely. Assuming a 7 percent annual rate of return compounded over 40 years, this initial contribution could grow to an impressive $97,334 by the time of retirement age.

The annual IRA contribution limit of $6,500 may seem daunting, particularly for young savers. However, the full amount does not have to be deposited all at once. Instead, one can automate the contributions on a weekly, biweekly, or monthly basis depending on one’s financial situation.

IRAs represent great tools for retirement planning due to their tax advantages and investment opportunities, which cultivate long-term wealth. By grasping the different types of IRAs, contribution limits, tax implications, and withdrawal rules, individuals can make informed decisions to safeguard their financial future and enjoy a comfortable retirement. Whether prioritizing immediate tax savings or tax-free withdrawals in retirement, an IRA can be a crucial component of a long-term financial strategy for individuals navigating the path to retirement security.

​One of the critical decisions to be made regarding any IRA or 401(k) account is selecting a beneficiary for retirement benefits. This differs significantly from how beneficiaries are designated for insurance and other types of inherited assets such as stocks, real estate, and bank accounts. With the latter, the assets typically pass through with no taxes being assessed. However, this is not the case with traditional IRAs and pre-tax 401(k) plans. Beneficiaries are responsible for ordinary income taxes on these types of plans (unless they are set up as Roth IRAs or Roth 401(k) accounts).

The act of entering participation in a 401(k) or opening an IRA comes with documentation requirements that include designating beneficiaries (changes are made to this by completing a new beneficiary designation form). Whoever is named, a trust or will with differing instructions does not override this beneficiary designation (although state or federal statutes may give spouses special rights). Thus it makes sense to undertake a review of the beneficiary designation form every few years and ensure that all estate documents are in agreement, accurately reflecting changes in life circumstances.

Without a named beneficiary, the estate itself may wind up as the beneficiary. A lengthy probate process may begin that leads to higher taxes and fees assessed, and money held in limbo until probate is completed.

When selecting beneficiaries, it’s important to think carefully and consider those, whether child, spouse, niece, or caretaker, who will receive the most benefits from one’s assistance. One way of avoiding any gaps is to name a primary beneficiary (or beneficiaries), as well as secondary (contingent) beneficiaries. In cases where the primary beneficiary passes on before one does, or declines to inherit the assets, funds are directed to the secondary beneficiaries.

If the retirement funds are passing to a minor (generally under age 18), it’s important to assign a custodian as well. This person or entity manages the inheritance until a specified age is reached. Failing this, the state may step in and select a custodian that may prove to be a less than ideal choice.

One distinguishing feature of 401(k) plans centers on spousal beneficiary rights. With such plans, unless the spouse signs a waiver, he or she is considered the beneficiary. This can become complicated in cases of divorce and the spouse named being different than the current spouse. An example is a person who, following divorce, changes the 401(k) designation to his children and subsequently remarries. When he dies, because he did not secure a waiver from his second spouse, the money does not pass to the children (as designated) but to the current wife. The upshot of this type of contested situation is that it pays to undertake full beneficiary reviews following divorce, marriage, or the birth of children, and make updates that reflect one’s current preferences and life situation.

It’s worth noting that it’s possible to name multiple beneficiaries who share the distributed funds. This is typically accomplished by specifying percentage distributions, but may also be accomplished by splitting one account into several subaccounts, with one beneficiary assigned to each. The SECURE Act, passed in 2019, stipulates that inherited retirement accounts must be emptied within a decade. The option of taking distributions in the longer term, based on life expectancy, no longer exists.

​Financial literacy is making responsible or reasonable decisions about saving, spending, investing, borrowing, and earning. According to an investor education foundation study conducted by FINRA, four out of five young adults cannot pass a financial literacy quiz. These statistics underscore the need for more children to be taught financial literacy. Similarly, CBI Economics has demonstrated that financial literacy helps to raise early-career earning prospects by about 28 percent. This study further showed that students or young people who are financially literate are more likely to be entrepreneurs.

Managing one income requires a skill set that includes knowledge of mathematics, emotional intelligence, and budgeting. According to the Chief Executive of National Numeracy, Sam Sims, confidence with numbers is a non-negotiable life skill, particularly regarding money. Consequently, Cambridge University published a study demonstrating that people develop core financial skills at seven. The study showed that people develop the core behaviors that will determine their financial culture at a very young age.

One major reason it is important to teach your children financial literacy is that it helps them grow into financially confident adults. According to a 2022 report by CNBC, 50 percent of American adults struggle to have $400 in savings to cover contingency spending. When children are taught how to spend and save, they learn to establish a good relationship with money early on in life, a skill useful to them as adults. This is important because finances are often precarious, and preparing for emergencies like car repair, healthcare, and property damage is important.

In 2020, there was a 24 percent rise in the number of hospital emergency room visits for mental health among children aged 5 to 11. Similarly, in 2018, 68 percent of kids between the ages of eight and 16 reported worrying about their parents' financial situation. Psychologists have now concluded that money affects kids much more than previously believed when they gain knowledge about mental health. It also seems sense that economic concerns would impact children, as they can mirror adults' stress.

Similarly, financial literacy is important for children because money is everywhere and needs to be managed properly. Financial literacy helps children understand that adults are not entitled to money. Instead, one works for money. This is important because it teaches kids not to throw tantrums when they do not get the toys or privileges they want.

According to the Junior Achievement Survey, about 54 percent of teenagers have no idea how to navigate their financial future. This is particularly important because young adults set a trend for their financial future in their late teens and early twenties. Research by the University of Wisconsin Maidson revealed that financially literate children can avoid costly mistakes and death traps early enough in their young adult life. This means they will be more inclined to avoid payday loans with exorbitant interest rates.

You must use everyday situations instead of abstract and sophisticated financial concepts to teach your children financial literacy. For instance, while paying utility bills, you can teach them the importance of budgeting and how it makes it easier to categorize expenses. Also, several mobile applications and technologies provide simplified resources.