Don’t Let Taxes Ruin Your Retirement
You know that you should diversify your investments to reduce your investment risk, but did you know you should also diversify your investments for tax purposes? 401K and IRA accounts are taxed at your ordinary income tax rate, so if you’re in the 25% tax bracket when you retire, you’ll pay 25% (plus state income […]
Tax Tip for Teachers
The 2003 Tax Act included a $250 deduction for teachers who spend their own money for classroom supplies. Most teachers spend far more than $250, so this tax deduction was a very minor victory for teachers. However, there is a way for teachers to get a full tax deduction for the supplies they purchase for […]
Why You Should Always Pay Yourself First
You’ve heard it over and over again: Pay yourself first. Why is this so important? First, it establishes good saving habits. If you continuously pay yourself first, despite whatever is going on in your life at that time, you will be much more likely to achieve your goals. Second, the power of compounding. Sometimes called […]
New Tax Law Creates Planning Opportunities
Along with some temporary AMT relief, the tax law just passed last week extends the long-term capital gain tax rates to 2010. Folks in the 10 and 15% tax bracket will benefit the most (assuming those same folks have investments held outside of retirement accounts). For 2006-2007, long term capital gain rates will stay at […]
Five Smart Money Tips for College Grads
Most likely your college education didn’t include financial planning, which is too bad. Personal finance is a skill that everyone should learn BEFORE they start careers, families, etc. Unfortunately, most of us learn these five smart money tips too late in life: 1. When choosing between different job offers, review the benefits carefully. Health insurance […]
Estimating College Costs
Much like saving for retirement, when you’re saving for college, you need to have a goal. Where will your child go to college – public or private, in-state or out of state? Wherever your scholar plans on attending, you can estimate the annual cost using this nifty calculator. Once you’ve decided on how much you […]