It’s generally a good idea to review your employer-sponsored retirement plan at least once each year and when major life changes occur. If you haven’t given your plan a thorough review within the last 12 months, now may be a good time to do so. Have you experienced any life changes? Since your last retirement…
What You Should Do With Your 401(k) When You Switch Jobs or Retire
Your 401(k) can be a significant asset which you accumulated at work after one year or after a career. So what do you do with your 401(k) when you switch jobs or retire? Your Current 401(k) Plan The benefits of your 401(k) plan include the ability to defer paying income taxes until the money is…
Financial Basics for Millennials = Good Money Management
Millennials face financial challenges that are unique to their generation. One of the first steps in overcoming those challenges is to understand some basic financial concepts. If you’re a young adult in your 20s or 30s, you’ve been introduced to the realities of adulthood. While you’re excited by all the opportunities life has to offer,…
Our Progressive Tax System
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…