APRIL IS NATIONAL FINANCIAL LITERACY MONTH If you live in the United States you live in a country with a progressive tax system. I call it a system because there is not just one progressive tax, there are many. Understanding how our system works is critical to your financial literacy. A progressive tax takes a…
Test Your Knowledge of Financial Basics: Financial Literacy Questions and Answers
APRIL IS NATIONAL FINANCIAL LITERACY MONTH How well do you understand personal finance? The following brief quiz can help you gauge your knowledge of a few basics. In the answer section, you’ll find details to help you learn more and increase your financial literacy. Here are some financial literacy questions. Financial Literacy Questions 1. How…
Aging in Place and the Medical Expense Deduction for Home Improvements
Aging in place has become more common in recent years. A person aging in place lives in the residence of their choice, for as long as they can, while they age. Aging in place usually requires making changes in the home and identifying support systems to allow seniors to live safely, independently and in familiar…
Paying for College: Cash or Credit
Paying for college is one of life’s big ticket items, along with buying a home and the cost of retirement. Needless to say, there are two significant decisions to be made regarding college. First, should you go; and second how should you pay for it? You Can’t Afford Not To Go Average cost at four…
Gains on the Sale of Homes Can be Non-Taxable to All Age Groups
The tax rules allow certain gains on the sale of homes to be excluded from taxable income. Home ownership has always been part of the American dream. That dream took a “hit” during the Great Recession when many homes were underwater (the market value of the home was less than the outstanding mortgage) and foreclosures…
Health Savings Accounts: Pay Medical Bills or Save For Retirement?
Health savings accounts (HSAs) have existed since the law’s effective date in 2004. HSAs are tax advantaged savings accounts for current or future medical expenses. To open an HSA and make contributions, you must have a high deductible health plan, not be claimed as a dependent, have no other health coverage except what is permitted…
Required Minimum Distributions (RMD): Do it Right or Pay a Large Penalty
What Are Required Minimum Distributions (RMDs)? Required minimum distributions, often referred to as RMDs or minimum required distributions, are amounts that the federal government requires you to withdraw annually from traditional IRAs and employer-sponsored retirement plans after you reach age 70½ (or, in some cases, after you retire). You can always withdraw more than the…
Financial Literacy Will Make Your Child Happier!
Parents and grandparents have high hopes for their children. Some say they want their children to be happy, successful and self-sufficient in life. Other mothers and fathers say they want their children to fulfill their potential, earn enough money to enjoy a comfortable lifestyle and be successful in their career. Will Financial Literacy improve your child’s…
“Backdoor” Roth IRA – Why This Tax Loophole Makes Sense
Nearly half of all working-age families have zero retirement account savings, according to a study by Economic Policy Institute, The State of American Retirement. There has been much discussion about eliminating the “backdoor” Roth IRA. This is a situation where the lawmakers put in place a law with unintended consequences. However, this tax loophole makes…
Digital Deception: Current Trends in Cybercrime
In December 2016, Yahoo announced that data associated with more than 1 billion user accounts had been stolen in 2013. The company believes this was a separate incident from a previously announced theft of data from 500,000 user accounts in 2014. Although the sheer number of compromised accounts is staggering, the Yahoo breaches are just…