CLEVELAND, Feb. 5, 2018 /PRNewswire/ -- Courtesy tax
reform that cuts most personal tax rates, approximately 90 percent
of US workers this month will see a slight increase in their
take-home pay.
Granted, those new tax rates won't result in significantly
larger paychecks. But at KeyBank, we believe small steps can pave
the way to turning big dreams into reality.
Patrick Smith, who leads
KeyBank's Financial Wellness program, recommends the following
steps that can help you make the most of extra income coming your
way due to tax reform:
- Emergency savings falling short? You're not alone. According to
Bankrate.com's most recent Financial Security Index Survey, only 39
percent of Americans would have enough emergency savings to cover
an unexpected $1,000 expense. We
recommend emergency savings of at least three months take home
pay.
- Use direct deposit to automatically allocate your increased
income to build emergency savings. And talk to your banker about
savings account options to be sure you are making the most of your
savings opportunities.
- Keep on spending less than you earn. In other words, don't use
that extra income as a reason to spend more.
- On target to max out your 401K?
Great news! Talk to your banker about establishing an IRA or other
additional retirement account. Again, your increased income might
not mean thousands more dollars, but small, regular contributions
will add up.
- Roll that extra income into your regular payment on
high-interest credit cards. In addition to paying down a balance
and saving on current interest, you can head off the impact of
interest rate increases that might happen later this year.
"At KeyBank, we believe there is always a way to help our
clients achieve their personal financial goals, one step at a
time," Smith said.
This material is presented for informational purposes only
and should not be construed as individual tax or financial advice.
Please consult with legal, tax and/or financial advisors. KeyBank
does not provide legal advice.
About KeyCorp
KeyCorp's roots trace back 190 years to
Albany, New York. Headquartered in
Cleveland, Ohio, Key is one of the
nation's largest bank-based financial services companies, with
assets of approximately $137.7
billion at December 31, 2017.
Key provides deposit, lending, cash management, insurance, and
investment services to individuals and businesses in 15 states
under the name KeyBank National Association through a network of
approximately 1,200 branches and more than 1,500 ATMs. Key
also provides a broad range of sophisticated corporate and
investment banking products, such as merger and acquisition advice,
public and private debt and equity, syndications, and derivatives
to middle market companies in selected industries throughout
the United States under the
KeyBanc Capital Markets trade name. For more information, visit
https://www.key.com/. KeyBank is Member FDIC.
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SOURCE KeyCorp