News Archive

Check your credit card fees

Filed Under: Your Finances on August 06, 2004

Credit card companies are making more money than ever from the fees they charge their customers. Six years ago, fees made up 18% of income for credit card companies; last year fees accounted for 35% of their income.

What you should know about being an executor

Filed Under: Your Finances on August 06, 2004

It’s a compliment to your judgment and business skills to be named an executor of somebody’s estate. Nonetheless, the job also means much work, possibly no pay, and the possibility of being sued for mistakes.

Are your estate documents up to date?

Filed Under: Taxes, Your Finances on September 05, 2004

When is the last time you reviewed your will, medical directives, and other estate planning documents? If it’s been a while, chances are something needs updating.

Some Year-End Retirement Plan Reminders

Filed Under: Taxes, Your Finances on October 05, 2004

Retirement plans are one of the best ways to cut your current tax bill while you put money away for your retirement years. Here are some year-end reminders.

Two IRA rules change in 2005

Filed Under: Your Finances on January 21, 2005

Individual retirement accounts (IRAs) are an excellent
way to save for retirement and reduce your tax bill.
Two rules on IRAs change this year, and that could be
very good news for you.

Insurance covers new risks

Filed Under: Your Finances on October 27, 2004

Anyone who has checked out the cost of college knows that tuition bills can be staggering. That could make a type of insurance worth another look—insurance that covers tuition if the student has to leave college unexpectedly. Many colleges offer the insurance, and students and their families are increasingly signing up for it. The insurance refunds tuition paid if illness, death, or some other unforeseen event keeps the student from completing the term.

Check 21 makes changes you need to know

Filed Under: Your Finances on October 27, 2004

Check 21. Sounds like a winning chess move, but in reality it’s a new law that took effect October 28, 2004. More properly known as the Check Clearing for the 21st Century Act, the legislation may change your banking habits.

Spam gets a partner in “spit”

Filed Under: Your Finances on December 05, 2004

Tired of spam? Then you’ll be happy to hear about a recent court victory in the battle against junk e-mail. In November a Virginia jury returned felony convictions against two individuals who sent thousands of bulk e-mails selling stocks and software. Seen as the beginning of the Justice Department’s crackdown on spam, these convictions are expected to be followed by more cases.

Earn a 16% return on your money. Guaranteed!

Filed Under: Your Finances on December 05, 2004

Earning high interest on your money and other wise money management may well be within your grasp. A few simple money handling techniques can help insure that you make the most of your financial lot in life.

Important IRA deadlines coming up

Filed Under: Your Finances on March 01, 2005

The rules governing IRAs are complex, and making mistakes can be costly. Here are some important deadlines and reminders —

Don’t let neglect derail your plans

Filed Under: Your Finances on March 01, 2005

Although life’s only certainties may be death and taxes, we rarely enjoy planning for them. But without planning, your assets can go to unintended recipients—including the government.

A big refund may be bad for your financial health

Filed Under: Your Finances on April 04, 2005

Too many taxpayers overlook the fact that getting a big tax refund every year may not be a good thing. Will you be among the thousands of taxpayers who get a big tax refund this year? While most Americans happily accept their tax refund checks, smart taxpayers understand that refunds actually cost them money. Here’s why:

Tax time’s a good time

Filed Under: Your Finances on April 04, 2005

Right now is the ideal time to review your financial affairs. You pull together your financial information to prepare your income tax return at this time of year. Why not take one more step and do something positive for your overall financial well-being?

Read more of “Tax time’s a good time”

Use an investment ladder to spread out investment risks

Filed Under: Your Finances on April 04, 2005

With today’s jittery stock market, you might be considering fixed-rate investments such as bonds or bank CDs. These investments are not without their own risks, however. With bonds, there’s the risk that your bond could go down in value when interest rates increase. So if you need to sell a bond before it matures, the value might be lower than your purchase price. If all your bonds or CDs mature around the same time, you could be in the position of having to reinvest when rates are unfavorably low. One strategy to help deal with these risks is called an investment ladder.

Getting a tax refund? Plan to use it wisely

Filed Under: Your Finances on May 25, 2005

Did you receive a tax refund this year? With extra cash from this or any other source, why not use the
opportunity to improve your financial situation. Here
are a few suggestions.

How to help your child buy a home

Filed Under: Your Finances on May 25, 2005

In today’s market, young people often cannot afford to buy their first home. If you’re considering helping your son or daughter buy a home, you can choose to make an outright gift, provide or co-sign a loan, or become a part owner. Each choice has its own tax consequences, so select the option that best suits your overall tax and financial needs.

Who owns your life insurance policy?

Filed Under: Your Finances on May 25, 2005

Life insurance is a valuable tool for estate planning. By having adequate life insurance to pay estate taxes, you can leave more to the next generation. The pitfall is that if you have any “incidents of ownershi.” in the policy, proceeds from your life insurance will be included in your estate and could be subject to estate taxes. “Incidents of ownershi.” include the right to cancel or assign a policy, revoke an assignment, use the policy as collateral for a loan, borrow the cash value, or change a beneficiary.

New Supreme Court ruling protects IRAs in bankruptcies

Filed Under: Your Finances on May 25, 2005

The U.S. Supreme Court issued a unanimous decision in April that will protect individual retirement accounts (IRAs) from creditors in bankruptcy proceedings. Until this decision, company pensions and 401(k) plans were protected under federal law, but IRAs were not.

What’s New in Financial Strategies

Filed Under: Your Finances on July 06, 2005

Survey shows gender matters in investing

Put your savings on automatic pilot

Filed Under: Your Finances on July 27, 2005

Even with the increased fear that social security will not be there when they retire, young people are not overly concerned with saving for retirement. Fortunately, many companies are now automatically enrolling workers in their 401(k) plans. Workers must then actively opt out of the plan if they decide not to participate. Companies are finding that 90% of workers who are automatically enrolled stick with the plan.

Think it over before you pay off your home mortgage early

Filed Under: Your Finances on July 27, 2005

Is it wise to pay off your mortgage early? As with most financial decisions, this one depends on several factors including your current mortgage rate, tax bracket, balances on credit card and consumer debt, near-term expenses, retirement dates, and potential alternative investments.

Summer wedding? Don’t forget taxes.

Filed Under: Your Finances on August 08, 2005

Summertime is often wedding time. If you or someone in
your family got married this summer (or is planning a
wedding soon), remember to take care of a few taxing
details.

What’s New: New bankruptcy law goes into effect soon

Filed Under: Your Finances on August 30, 2005

Major changes to the laws governing bankruptcy go into effect next month. Here’s an overview of the changes individuals need to know.

Invest with an eye on inflation

Filed Under: Your Finances on August 30, 2005

Like the boy who cried, “wolf.” experts’ warnings of inflation have been largely ignored over the last decade. Now, with the recent spike in fuel prices and rising interest rates, people are starting to take notice again. Inflation, even at modest levels, can seriously reduce real investment return. Is your portfolio structured to succeed in periods of inflation? Consider these fresh ways to combat an old foe.

The gift tax exclusion – use it or lose it!

Filed Under: Your Finances on September 29, 2005

Did you know that this year you can give gifts of up to $11,000 to as many individuals as you want without being liable for gift tax? Normally, any gift you make counts towards your lifetime exemption from gift and estate taxes. That’s so you don’t just give away your estate shortly before death to avoid estate taxes.

What’s New: Treasury will start selling 30-year bonds again

Filed Under: Your Finances on September 29, 2005

The Treasury Department announced that it will begin selling 30-year Treasury bonds again in 2006. Absent from the scene for the past four years, the 30-year bond will again be sold twice a year according to a schedule to be released by the Treasury Department next month.

Check your credit information: Annual reports are free

Filed Under: Your Finances on September 29, 2005

It’s a good idea to review your credit information periodically. You might spot credit inquiries or applications that you didn’t make—a sign that you could be a victim of identity theft. Or you might find errors in your personal data or payment history, errors that could cause lenders to deny you credit or charge you a higher interest rate.

Consider the tax issues in caring for elderly parents

Filed Under: Your Finances on November 01, 2005

As the population in the U.S. continues to age, more and more people will find themselves caring for their parents. Here are some of the tax breaks that caregivers should consider.

How can you financially prepare your family or business for disaster? Here are some tips.

Filed Under: Your Finances on November 01, 2005

For businesses

What’s New: Survey shows college costs increasing

Filed Under: Your Finances on November 01, 2005

The annual survey of college costs conducted by the College Board shows tuition and fees increased in the last year at twice the rate of inflation.

Don’t put all your eggs in one basket

Filed Under: Your Finances on November 01, 2005

Even if you’re not an investment expert, you’re probably familiar with the term “diversification.” It means not putting all your eggs in one basket. Diversification calls for choosing the right mix of investments to keep a balance between risk and return.

Eight ways to cut your 2005 taxes

Filed Under: Your Finances on November 07, 2005

Here are some moves you could make between now and
year-end to cut your 2005 taxes.

More vehicles certified for clean-fuel deduction

Filed Under: Your Finances on November 28, 2005

The 2006 Ford Escape Hybrid and the 2006 Mercury Mariner Hybrid are the latest vehicles to be certified by the IRS for the clean-fuel deduction. Taxpayers who are the original purchasers of a clean-fuel vehicle are entitled to a tax deduction of up to $2,000 on their 2005 tax returns. The deduction is an above-the-line deduction, which means that it can be taken even by those who don’t itemize their other deductions.

Yield on I Bonds jumps to 6.73%

Filed Under: Your Finances on November 28, 2005

The Treasury has increased the yield on its I Bond savings bonds to 6.73% on bonds purchased from November 2005 through April 2006. The previous rate had been 4.8%.

Got mutual funds? Pay attention to year-end tax issues

Filed Under: Your Finances on November 28, 2005

If you’re among the millions of Americans who invest in mutual funds, you need to be aware of the year-end issues that could affect your 2005 tax bill.

Medical sticker shock? Consider a health savings account

Filed Under: Your Finances on January 03, 2006

If health care costs are starting to give you sticker shock, you might want to consider creating a health savings account in 2006.

What’s New: A new retirement option debuts this year - the Roth 401(k)

Filed Under: Your Finances on January 03, 2006

Contributing to a 401(k) plan at work is a great way to build up your retirement nest egg. Setting aside money in a Roth IRA is another option for building a retirement fund. Combine these two popular retirement savings opportunities, and you end up with the new Roth 401(k).

Do a financial review at tax time

Filed Under: Your Finances on January 03, 2006

Now is an ideal time to review your financial affairs. You have to gather information to prepare your tax return at this time. Why not take one more step and do something positive for your financial well-being?

Credit cards are requiring higher minimum payments

Filed Under: Your Finances on January 27, 2006

You may be seeing higher minimum payment amounts on your credit card bills. Banks are finally making changes regulators urged three years ago, changes that would enable consumers to pay off debt “in a reasonable period of time.”

Dollar-cost averaging can offer long-term benefits

Filed Under: Your Finances on January 27, 2006

In today’s rabbit-fast world, it pays to remember that the tortoise won the race. For investors, dollar-cost averaging—a slow and steady investment plan—can be a winning strategy.

Sock away more for retirement this year – and check out this new option

Filed Under: Your Finances on February 21, 2006

You can put more money into some tax-advantaged
retirement accounts this year, and you may have a new
option to consider if you participate in a 401(k) plan.

April 3 is an important deadline for many

Filed Under: Your Finances on February 24, 2006

Retirement accounts grow tax-deferred until you need the funds. However, in most cases your money cannot remain in these accounts forever. The IRS has rules that dictate when and how much you must withdraw from your retirement accounts. The amount you must withdraw each year is called your required minimum distribution (RMD).

Prepaid tuition plans now get equal treatment

Filed Under: Your Finances on February 24, 2006

“529 plans” are one way to set aside money for children’s college educations. These plans come in two varieties: (1) prepaid tuition plans where you make a lump sum payment or make payments to lock in tuition for your child when he or she is ready for college, and (2) college savings plans that allow you to put money into investments and use this fund to pay for college expenses tax-free.

Are your beneficiary designations up to date?

Filed Under: Your Finances on February 24, 2006

Who have you designated as beneficiaries for your insurance policies and retirement accounts? If you can’t remember, you’re not alone. But it’s worth checking, and right now is the perfect time to do your review. If you make the wrong decision, it could affect who inherits those assets. In some cases, it can change the future value and taxes on the accounts.

What’s New in Finances: Don’t neglect estate tax planning

Filed Under: Your Finances on March 29, 2006

Whether the estate tax - often referred to as the “death ta.” - will actually be eliminated or not remains an unanswered question. Under current law, the tax will end in 2010, but only for that one year. Unless Congress acts before 2011, it will return that year at its 2001 exemption level and tax rates.

Dig for answers to these questions before you invest your money

Filed Under: Your Finances on March 29, 2006

Studies have reported that the average investor spends more time planning a vacation than investigating the stock that he is about to purchase. While that might sound foolish, it’s more fun to page through a brochure for beachfront hotels in Aruba than to study an annual report. But not all of the research has to take considerable time or effort. In fact, many of the questions that you should ask are relatively simple. Here are just a few.

Have you reviewed your beneficiary designations lately?

Filed Under: Your Finances on April 21, 2006

Who have you designated as beneficiaries for your
insurance policies and retirement accounts? If you
can’t remember, you’re not alone. But it’s worth
checking, and right now is the perfect time to do your
review. If you make the wrong decision, it could affect
who inherits those assets. In some cases, it can change
the future value and taxes on the accounts.

Get an early start on reducing your 2006 taxes

Filed Under: Your Finances on April 26, 2006

Maximize your tax savings this year by getting a jump-start on your planning. Here are a few tips that you can use to reduce your 2006 taxes.

Savings rate hits lowest rate since 1933

Filed Under: Your Finances on April 26, 2006

According to the U.S. Commerce Department, American consumers spent more than they earned in 2005. Savings as a percentage of income was a negative .5% last year - the first negative rate since the Great Depression.

Have a financial talk with your elderly parents

Filed Under: Your Finances on April 26, 2006

One day you may find yourself taking care of an elderly parent who is in declining physical or mental health. This can be stressful, both emotionally and financially. On the financial side, there are steps you may want to take to prepare for this situation.

Facing college expenses? Here’s news you need to know

Filed Under: Your Finances on May 23, 2006

If saving for college is in your financial plans, a
provision in the Deficit Reduction Act recently signed
by President Bush may be of interest to you.

Retirement accounts now insured up to $250,000

Filed Under: Your Finances on May 30, 2006

Federal Deposit Insurance Corporation (FDIC) insures a certain amount of bank deposits made by an individual. If a bank fails, deposits up to $100,000 are insured by the federal government.

Help your children financially by teaching self-reliance

Filed Under: Your Finances on May 30, 2006

Today’s rising costs and stagnant earnings are especially hard on young people. Many recent college graduates can’t even afford to leave home. Some are overburdened with student loan payments, car payments, and credit card debt. When you factor in current housing costs, it’s easy to see why so many young adults need help from their parents.

Manage your income to maximize tax benefits

Filed Under: Your Finances on July 10, 2006

What do the following have in common: itemized deductions, personal exemptions, child tax credits, student loan interest deductions, and Roth IRA contributions? The answer is that they’re all reduced or eliminated when your adjusted gross income (AGI) reaches certain levels. For example, this year couples begin to lose the full benefit for child tax credits when their AGI reaches $110,000. Other deductions and credits begin to phase out at even lower levels.

50-year mortgages? That’s a l-o-n-g time

Filed Under: Your Finances on July 10, 2006

The high price of homes and rising interest rates have brought a new financing option to the marketplace - the 50-year mortgage. Available currently from only a few lenders, the 50-year mortgage is intended to help those who otherwise could not afford to buy a home because of high monthly payments.

Will mistakes reduce your nest egg to small change?

Filed Under: Your Finances on July 10, 2006

There are a number of pitfalls that you’ll need to avoid in order to enjoy a financially comfortable retirement. Some of these mistakes take place while you’re planning for retirement, and some take place after you actually retire. Here are seven of the most common mistakes.

Estate taxes may be cut soon

Filed Under: Your Finances on July 10, 2006

Big changes are in the wind for federal estate taxes.
You will want to keep an eye on H.R. 5638 which passed
the House of Representatives and has been sent to the
Senate. When the Senate will vote on the bill is not
yet decided.

Nearly half of Americans aren’t saving enough

Filed Under: Your Finances on July 27, 2006

A new study done by the Center for Retirement Research at Boston College revealed that 43% of working Americans are probably not going to have enough retirement funds to maintain their current standard of living. The study assumed that retirees would need 65% to 85% of their pre-retirement income to maintain the same living standard.

Don’t cash out the equity in your home just because it’s there

Filed Under: Your Finances on July 27, 2006

With today’s low interest rates, homeowners have been flocking to refinance their mortgages. But instead of reducing their payment by the maximum amount, many have increased the size of their mortgage to tap into the home’s equity. Part of the new loan pays off the old mortgage, and the remainder is paid in cash. These “cash-out.” have accounted for well over half of all refinancings in recent months.

Your child’s summer job could lead to an IRA

Filed Under: Your Finances on August 07, 2006

If your child has a job this summer, he or she
qualifies to make an IRA contribution for 2006.

Take action now to trim 2006 taxes

Filed Under: Your Finances on August 31, 2006

The end of the year will be here before you know it. That means you should put some tax planning on your agenda now. Here are some ideas you might consider to trim your 2006 taxes.

What’s New in Finance: No estate tax change yet

Filed Under: Your Finances on August 31, 2006

The latest attempt to modify the law on estate taxes failed to pass Congress last month. In an effort to make the bill more acceptable, Congress had included an increase in the minimum wage and extension of several expired and expiring tax breaks. Despite these “sweeteners.” the bill failed to attract the needed votes.

Are you too invested in your company?

Filed Under: Your Finances on August 31, 2006

It seems that the recent failure of Enron and other corporations did not teach workers the primary rule of investing: diversify your investments. A recent study revealed that workers still hold too much of their company’s stock in their retirement accounts.

What’s New In Finances: New pension law eases rules on inherited retirement plans

Filed Under: Your Finances on September 28, 2006

If you inherit a retirement account from someone other than your spouse, you will soon be able to roll over the account to an IRA, an option that can save significant taxes. Prior to the recently enacted Pension Protection Act of 2006, rollovers of inherited retirement funds were permitted only for spouses.

Invest with an eye on inflation

Filed Under: Your Finances on September 28, 2006

Like the boy who cried “wolf.” experts’ warnings of inflation have been largely ignored over the last decade. Inflation, even at modest levels, can seriously reduce real investment return. Is your portfolio structured to succeed in periods of inflation? Consider these fresh ways to combat an old foe.

Follow new rules to get a deduction for your donations

Filed Under: Your Finances on October 06, 2006

Each year, taxpayers take billions of dollars worth of

What’s New in Finances: Stock market hits new high

Filed Under: Your Finances on October 26, 2006

The big news for stock investors came October 19, 2006, when the Dow closed at 12,000 for the first time in history. The Dow is comprised of 30 major companies and is generally seen as one measure of market activity.

Couples: Take these six steps to financial harmony

Filed Under: Your Finances on October 26, 2006

Most people need help from time to time with their finances, and this can be especially true for couples. Partners often struggle with differing perspectives about money, and these differences can affect spending, saving, budgeting, and other financial decisions. Regardless of these differences, however, the following tried-and-true guidelines can help any couple achieve greater financial stability and security.

Be aware of these year-end retirement plan deadlines

Filed Under: Your Finances on November 03, 2006

Contributing to a retirement plan is one of the best
financial and tax-saving moves you can make. Timing can
be important, so be aware of deadlines related to
retirement plans. Here are a few reminders.

What’s New in Finances: Using credit may be getting too easy

Filed Under: Your Finances on November 29, 2006

If you’re concerned about your financial well-being, you should probably think twice about using your credit card for purchases under $25.

Give financial gifts this holiday season

Filed Under: Your Finances on November 29, 2006

When planning gifts for children on your holiday list, you might want to think beyond the traditional retail offerings. Consider financial gifts that can bestow benefits for many years to come.

What’s New in Finances: Mutual fund investments hit $10 trillion mark

Filed Under: Your Finances on January 02, 2007

According to the Investment Company Institute, investment in mutual funds hit the $10 trillion mark in October 2006, just about the time the U.S. population hit the 300,000,000 mark.

What you need to know in order to simplify your recordkeeping

Filed Under: Your Finances on January 02, 2007

Deciding which records to keep and for how long can be a confusing process. A well-organized system will help you retain important paperwork and minimize the clutter. Use legal requirements and your common sense as guidelines for how long to hold on to records.

What’s New in Finances: You can split your tax refund three ways

Filed Under: Your Finances on January 27, 2007

In past years, you could ask the IRS to deposit your income tax refund into your bank account. For your 2006 tax refund, you’ll be able to have the IRS split your refund and make deposits in up to three accounts at different financial institutions.

Be aware of the gender gap in retirement savings

Filed Under: Your Finances on January 27, 2007

Do women need to save more for their retirement than men?

As long as your records are out...

Filed Under: Your Finances on February 07, 2007

As part of your assembling information for your 2006
tax return, take a little extra time to review your net
worth, the progress you’re making toward your financial
goals, and your need for estate planning. Tax filing
time provides an excellent opportunity to do these
essential reviews “as long as your records are ou.”
anyway.

2007 brings changes to 401(k) plans

Filed Under: Your Finances on February 27, 2007

Last year’s pension law made some important changes to 401(k) plans, changes you should pay attention to if this type of retirement savings plan is available to you.

Avoid these retirement blunders

Filed Under: Your Finances on February 27, 2007

If your goal is to enjoy a long and financially secure retirement, try to avoid these four major blunders.

Hybrid tax credits may be getting complicated

Filed Under: Your Finances on March 05, 2007

If you’re thinking of buying a hybrid vehicle, you are
probably counting on the tax credit to help defray the
extra cost. The 2005 energy law provided a tax credit
of up to $3,400 for the purchase of a hybrid or lean
burn vehicle. Good news, right?

Stop lending money to the IRS

Filed Under: Your Finances on March 29, 2007

Will you be among the thousands of taxpayers who get a big tax refund this year? While most Americans happily accept their tax refund checks, smart taxpayers understand that refunds actually cost them money. Here’s why:

What’s New in Finances: Recent scams target debit cards

Filed Under: Your Finances on March 29, 2007

According to the Federal Reserve, debit card use has now surpassed credit card use. Unfortunately, debit card fraud has also grown, reaching $662 million in 2005, a 21% increase from the previous year.

Don’t overlook renters insurance

Filed Under: Your Finances on March 29, 2007

Do you rent an apartment or condo? If so, do you have renters insurance to protect your belongings and to cover you against liability claims? A surprising number of renters don’t bother with insurance. Some assume they’re covered by their landlord’s policy. Wrong! Usually that covers only damage to the building and liability claims against the landlord. Others say that their belongings aren’t worth enough to justify the cost. But add up how much it would cost you to replace everything you might lose in a fire and you’ll be surprised. In most cases, the cost of insurance is a small price to pay for the protection you’ll receive.

Time for midyear planning

Filed Under: Your Finances on April 27, 2007

Filing your 2006 tax return might signal the official end of 2006, but for tax-savvy individuals, it’ s also the kick-off for saving taxes in 2007. Getting an early start on your 2007 tax planning will help you take maximum advantage of the latest tax breaks, inflation adjustments, and retirement options.

What’s New in Finances: Stamps will cost more beginning May 14

Filed Under: Your Finances on April 27, 2007

The U.S. Postal Service announced that the cost of mailing a first-class letter will go up 2 cents to 41 cents, effective May 14.

Use compounding to build your wealth

Filed Under: Your Finances on April 27, 2007

There are several ways to earn income on investments, but compounding may be your most reliable path to wealth. If you put $1,000 under your mattress, it will still be $1,000 a year later, but it probably will buy you a little less due to inflation. If you lend the money to a friend at 12% simple interest, at the end of the year you’ ll receive $1,000 plus $120 of interest, since simple interest is computed only on the principal.

Let the tax law help with health care costs

Filed Under: Your Finances on May 08, 2007

To help address the problem of rising health care costs,
Congress passed the Tax Relief and Health Care Act in
December 2006.

What’s New in Finances: New rules on inheriting a 401(k)

Filed Under: Your Finances on May 31, 2007

For surviving spouses, inheriting a 401(k) is relatively painless since the 401(k) can be rolled over into an IRA in the spouse’s name. For others, however, inheriting a 401(k) plan can trigger significant tax. That is, until the passing of the Pension Protection Act of 2006. Now, nonspouses may get a break as well.

Stocks: Deciding when to sell is as critical as deciding when to buy

Filed Under: Your Finances on May 31, 2007

If you are serious about managing your stocks, it’s important to have a selling strategy. What is yours? Investors tend to give a lot of thought to the buying decision, but little consideration to the sell decision. Here are some situations that may indicate it’s the right time to sell.

Act soon to benefit from this new IRA charitable donation option

Filed Under: Your Finances on June 28, 2007

A recent change in the charitable contribution rules provides a potential tax planning opportunity involving your individual retirement account. If you’re 70½ or older, you can make contributions of up to $100,000 directly from your IRA to a qualified charity.

What’s New in Finance: New survey shows most have no will

Filed Under: Your Finances on June 28, 2007

A recent survey conducted for the legal profession by Harris Interactive showed that the majority of Americans do not have a will.

Protect yourself from identity theft and scams

Filed Under: Your Finances on June 28, 2007

Scams are everywhere. However, identity theft and its evil twin, phishing, have become major problems. Strictly, identity theft occurs when someone literally steals your identity. They set up bank accounts, take out credit cards, and borrow money in your name. But related scams include someone using your credit card number illegally, or stealing your PIN and looting your bank account.

Manage "AGI" to keep tax breaks from disappearing

Filed Under: Your Finances on July 27, 2007

At tax time it pays to read the fine print. A variety of allowances, deductions, credits, and exemptions are phased out as income rises. If your income reaches these “phase-ou.” levels, you may lose tax benefits.

What’s New in Finances: What’s new on the home front?

Filed Under: Your Finances on July 27, 2007

Existing home sales fell to a four-year low in May, with the median home price declining for the 10th straight month.

Marriage? Divorce? Review your finances after a change in marital status

Filed Under: Your Finances on July 27, 2007

If you are getting married, divorced, or have recently lost your spouse, you certainly have a lot on your mind. While you may feel overwhelmed with all there is to do, it is important not to overlook financial matters when your marital status changes. Some actions you may want to consider include the following:

New rules could make inheriting a 40l(k) less taxing

Filed Under: Your Finances on August 03, 2007

Before this year, only spouses could roll inherited
retirement plan assets into an IRA, an option that
allowed for more flexible distributions. Thanks to last
year’s pension law, other beneficiaries of qualified
retirement plans can now take advantage of this
favorable tax-deferral strategy.

An HSA might be the right prescription now

Filed Under: Your Finances on August 30, 2007

Health Savings Accounts (HSAs) are tax-sheltered accounts that, when combined with a high-deductible health insurance plan, allow a tax deduction for contributions made to the HSA. HSAs have been around for some time, but new legislation passed at the end of 2006 makes them an even more powerful tool with which to pay medical bills.

What’s New in Finances: Have you gone too paperless?

Filed Under: Your Finances on August 30, 2007

It can be convenient to cut out “paperwor.” by conducting your financial activities online. But if you do your banking and your investing through online bank and brokerage services, your heirs may have trouble sorting through your finances once you’re gone.

What’s more important — saving for children’s college or your retirement?

Filed Under: Your Finances on August 30, 2007

A college education. Retirement. What do these major life events have in common? One shared characteristic is that each comes with a price tag. Here’s another: If you have school-age kids, you might be facing the challenge of having to decide which goal to save for. They’re both important. So how do you make the choice?

What’s New in Finances: Health insurance costs outpace inflation

Filed Under: Your Finances on September 26, 2007

According to the annual survey of employers conducted by the nonpartisan Kaiser Family Foundation, the cost of health insurance rose 6.1% this year. That’s more than double the annual rate of inflation (measured in July) of 2.4%. The increase in health insurance premiums since 1999 has outpaced both wages and inflation for the same time period.

Choosing your executor: A critical estate planning decision

Filed Under: Your Finances on September 26, 2007

An executor is the person or legal entity that you appoint in your will to settle your estate after your death. It is common practice to name your spouse or one of your children (often the first born) to be the executor of your estate. Such a choice may be entirely appropriate. However, there are circumstances where you should consider other possibilities.

Home mortgage issues you need to know

Filed Under: Your Finances on October 15, 2007

Congress is considering tax legislation that would ease the tax burden for taxpayers who are losing their homes to foreclosure. Under current tax law, canceled mortgage debt may generally be treated as income, so the taxpayer not only loses his home, he also faces an unexpected tax bill.

Your retirement kitty may have to last a L-O-N-G time

Filed Under: Your Finances on October 30, 2007

You know you must invest during your working years in order to build a fund for retirement. But what you don’t know is how many years you’ll be drawing on your retirement money. Now there are new statistics that may be helpful in estimating how long your retirement kitty has to last.

Keep your holiday spending under control

Filed Under: Your Finances on October 30, 2007

The holiday season should be a pleasant time - exchanging gifts, entertaining family and friends, and extending goodwill to others. Most of us enjoy the holidays, but too often the enjoyment is followed by financial headaches. January’s bank statements and credit card bills bring the realization that once again we lost control of our finances.

Big changes in 2008 affect 2007 year-end planning

Filed Under: Your Finances on November 05, 2007

An important part of year-end tax planning is a review
of your investments, with an eye to making moves before
December 31 that will cut your 2007 tax bill.

Be smart in donating property to charity

Filed Under: Your Finances on November 05, 2007

Donating property to charity can be a good way for you
to help the less fortunate while you cut your own tax
bill. Be aware of the advantages and disadvantages of
donating property to charity.

What’s New in Finances: Many stay on the job even after age 65

Filed Under: Your Finances on November 29, 2007

It’s no longer unusual to find people of retirement age choosing to continue working. According to the Employee Benefit Research Institute, in 2006 about 30% of Americans aged 65 to 69 were still working, up from 18% in 1985.

Do you need life insurance on your children?

Filed Under: Your Finances on November 29, 2007

Ask whether you should carry life insurance on your children and you’ll receive a variety of answers. Here’s a look at the arguments for and against.

Where you hold an investment matters

Filed Under: Your Finances on December 06, 2007

You’ll probably be reviewing your investment portfolio
at year-end for tax and rebalancing purposes. As part
of your review, check to be certain you are holding
your specific investments in the right type of account.
Your goal is to hold investments that produce ordinary
taxable income in tax-deferred accounts and to hold
those that produce tax-free or tax-favored income in
your regular taxable accounts.

What’s New in Finances: Check scams on the increase

Filed Under: Your Finances on December 27, 2007

Check scams have become so prevalent that the U.S. Postal Service has undertaken its largest ever anti-fraud campaign to warn consumers. According to the National Consumers League, counterfeit checks rank #2 as the most common Internet fraud and #1 as the most common telemarketing fraud. The average loss to victims is $3,000 to $4,000 per incident.

Retirement funds: What you need to know about required withdrawals

Filed Under: Your Finances on December 27, 2007

Do you own a traditional IRA, SEP-IRA, SIMPLE IRA, Keogh plan, 401(k) plan, or 403(b) plan? If so, you’ll have to start taking distributions when you reach age 70½. If you don’t, you’ll forfeit 50% of the amount you should have taken but did not.

What’s New in Finances: HSA limits increase for 2008

Filed Under: Your Finances on January 30, 2008

Health Savings Accounts (HSAs) allow taxpayers with high-deductible health insurance to set aside tax-deductible dollars that can be used tax-free to pay unreimbursed medical expenses. The amount that can be contributed each year to an HSA is adjusted annually for inflation.

Know the tax rules for selling online

Filed Under: Your Finances on March 06, 2008

Selling items on eBay and other online auction Web sites has become a very popular way to get rid of unwanted household stuff, as well as a way to turn a little profit. Many users have even started full-time businesses auctioning merchandise on the Web. But like any business venture, selling items in the virtual world has tax implications that are all too real.

What’s New in Finances: Reverse mortgages

Filed Under: Your Finances on March 06, 2008

If you own your home and are age 62 or older, one option to increase your retirement income could be a reverse mortgage.

Do you have these basic financial documents?

Filed Under: Your Finances on March 06, 2008

There are some basic financial arrangements that all individuals should consider making, no matter what their age or circumstances. But if you have a family, these basic documents become essential.

Got a plan?

Filed Under: Your Finances on March 06, 2008

Congress has made several attempts to change or even
eliminate the estate tax. So far, no agreement on what
to do has been reached, and in this presidential
election year, the issue has been put on the back burner.
So where does that leave estate taxes and your tax
planning?

What’s New in Finances: Check your deposit insurance

Filed Under: Your Finances on March 28, 2008

The recent failure of Bear Stearns, the fifth largest investment bank in the U.S., may have you wondering about the health of the banking system in general. Indeed, you may be wondering if your bank accounts are safe. Here’s a quick review of deposit insurance that may help put your mind at ease.

Do a financial review at tax time

Filed Under: Your Finances on March 28, 2008

As long as your tax and financial records are out for filing your 2007 tax return, why not take one more step and do something positive for your financial well-being? This is the ideal time to review your financial affairs and make any needed changes.

Put your tax refund or rebate check to good use

Filed Under: Your Finances on April 28, 2008

Will you receive a 2007 income tax refund or an economic stimulus tax rebate check? Here are some suggestions for how to put these funds to good use.

Are you prepared for a job loss?

Filed Under: Your Finances on April 28, 2008

In today’s economy, the job market is not secure. Companies are downsizing, reducing hours, or cutting salaries to remain competitive. Losing your job or having your pay cut can be financially devastating. But there are things you can do to protect yourself, whether your job is threatened or you’re suddenly terminated.

Are children priceless?

Filed Under: Your Finances on June 06, 2008

Parents generally consider their children to be priceless, but one group has put a price tag on children.

Read more of “Are children priceless?”

Think before breaking your 401(k) nest egg

Filed Under: Your Finances on June 06, 2008

With today’s shrinking home values, rising adjustable mortgage rates, and tighter loan standards, many people are turning to their 401(k) plans as sources of needed cash. But early withdrawals can exact a heavy price, and even borrowing from a 401(k) can have adverse consequences.

Make summertime tax-saving time

Filed Under: Your Finances on June 06, 2008

Summertime can be a great time for cutting taxes.
Consider these possibilities:

What’s New in Finances: Don’t put your 401(k) on automatic pilot

Filed Under: Your Finances on June 26, 2008

Automatically enrolling new employees into a companys 40l(k) plan was made easier by the Pension Protection Act of 2006. A survey of 5,490 plans by Plansponsor, a Connecticut research firm, revealed that about 25% of companies now have automatic enrollment in their plans.

Reverse Mortgages: Need retirement income?

Filed Under: Your Finances on June 26, 2008

If you own your home and are age 62 or older, one option to increase your retirement income could be a reverse mortgage.

Some planning could qualify you for this 0% tax rate

Filed Under: Your Finances on July 07, 2008

This year, one of the biggest tax changes is the zero
tax rate on long-term capital gains and qualified
dividends for those who are normally in the 10% or 15%
regular income tax brackets. Single taxpayers whose
2008 taxable income falls under $32,551 and marrieds
with income under $65,101 meet the requirements.

Summer is a good time for retirement tax planning

Filed Under: Your Finances on July 29, 2008

When it comes to your retirement, three areas are hot for summertime tax planning: establishing a plan, making contributions to existing plans, and taking distributions.

New mortgage rules set by the Fed

Filed Under: Your Finances on July 29, 2008

Seeking to provide more protection for consumers against predatory lending practices, the Federal Reserve Board has issued new rules on home mortgage loans. The rules prohibit lenders from making loans to borrowers without verifying ability to repay, limit prepayment penalties, require more disclosure in advertising, and set rules to keep lenders and brokers from seeking inaccurate real estate valuations from appraisers.

Are your bank accounts insured?

Filed Under: Your Finances on July 29, 2008

How safe are your bank accounts? You probably rely on FDIC (Federal Deposit Insurance Corporation) insurance to protect your money if your bank fails. But this might be a good time to check your FDIC coverage for several reasons.

Lending money to family members could be a taxing situation

Filed Under: Your Finances on September 04, 2008

Lending to family members probably dates back to the invention of money. The IRS entered the mix a great deal later, but it now looms large in the equation. Tax problems can arise when you first lend money, as you’re being repaid, or if you’re not repaid. The issues usually involve imputed income, gift tax, or bad debts.

What’s New in Finances: 401(k) debit cards: Weigh the pros and cons

Filed Under: Your Finances on September 04, 2008

If your employer’s 401(k) plan offers the 401(k) debit card feature, don’t sign up without a serious look at what you’re getting into.

Long-term care insurance: What you need to know before you buy

Filed Under: Your Finances on September 04, 2008

Mention long-term care insurance in a crowd, and you’ll likely receive a collective groan. Lacking the immediacy of health insurance and the certainty of life insurance, many people find it difficult to move this financial planning issue to the top of their to-do list. And when they finally do, it’s often too late.

What’s New in Finances: Review your accounts for FDIC coverage

Filed Under: Your Finances on September 29, 2008

In today’s financial environment, it’s wise to review your various accounts to see if you have the protection you think you have.

Teach your children about money

Filed Under: Your Finances on September 29, 2008

If you haven’t already started teaching your children about money and finances, you’re neglecting an important part of their education. Consider these suggestions:

Review your accounts for FDIC coverage

Filed Under: Your Finances on October 13, 2008

In today’s financial environment, it’s wise to review your various accounts to see if you have the protection you think you have.

Teach your children about money

Filed Under: Your Finances on October 13, 2008

If you haven’t already started teaching your children about money and finances, you’re neglecting an important part of their education. Consider these suggestions:

Are your bank accounts safe?

Filed Under: Your Finances on November 06, 2008

If the current financial turmoil has you concerned
about the safety of your bank accounts, here is some
information that will interest you.

Tips for reducing taxes on investment sales

Filed Under: Your Finances on November 06, 2008

Year-end is an opportune time to review and rebalance
your investment portfolio. In the current state of
market uncertainty, only you can decide whether you
want to hold or sell a particular investment. But if
you decide to sell, here are some year-end tips for
keeping the tax consequences to a minimum.

Got mutual funds? Pay attention to year-end tax issues

Filed Under: Your Finances on November 06, 2008

If you’re among the millions of Americans who invest in mutual funds, you need to be aware of the year-end issues that could affect your 2008 tax bill.

What’s New in Finances: HSA limits increase for 2009

Filed Under: Your Finances on November 26, 2008

Give financial gifts this holiday season

Filed Under: Your Finances on November 26, 2008

When planning gifts for children on your holiday list, you might want to think beyond the traditional retail offerings. Consider financial gifts that can bestow benefits for many years to come.