Money Today That Matters Tomorrow
You would think that figuring your income that is subject to taxes would be easy. Unfortunately, with our overly complex federal tax system the IRS has multiple definitions of income and it’s important to understand the difference between these because not only can it affect how much you pay in …
Most people have heard about Individual Retirement Account (IRA) plans which provide self-administered tax advantaged retirement saving options. For most people two types of IRA options are best – a Traditional IRA or a Roth IRA. But choosing the right option depends on a variety of factors that include, how …
After several years the IRS has raised Roth IRA contribution levels, along with the annually indexed income qualification levels that allow eligible contributions. This is good news for those looking for tax effective ways to manage their retirement savings. [See this article for the latest Roth IRA limits] Unlike 401(k) and Traditional …
Being the finance wonk that I am, I rather enjoy reading some of the tax advice that the big accounting firms put out for their clients. While their target audience (based on their $250 to $500 hourly fee) is clearly higher net worth individuals, you can glean some pretty useful …
The Washington Post had two graphics that neatly summarize the impacts from the fiscal cliff. This is the number one topic in the world of finance and almost all Americans will be impacted by the potential fallout in some fashion. My opinion is that Congressional Republicans and the Obama administration will reach some form …
[Updated for 2022] – See the latest IRA limits and changes in this article. The IRS has published the latest retirement plan limits following the release of Cost of Living Adjustment (COLA) figures for next year. Â This was the second consecutive year of increases to contribution limits, as shown in …
See the latest Capital Gains rates and exclusions in this article. _____________ [Updated following Fiscal Cliff Deal] With legislation now in place to avert the fiscal cliff many investors will be breathing a sigh of relief as the tax rates on capital gains, dividends on investments did not rise as …
A secret recording from a closed-door fund raiser had Mitt Romney saying, “47 percent of Americans believe that they are victims…I’ll never convince them they should take personal responsibility and care for their lives…My job is not to worry about [votes from] those people. These are people who pay no income tax. …
The WSJ recently published two excellent graphics which show how long $1 million of retirement savings would last based on a given rate of after-inflation growth. Definitely provides some insight into how much you will need to save and most likely you will need more than you think. Particularly if …
With a host of tax changes set to come into effect next year thanks to the expiring Bush-Obama tax cuts and new “Obama-care” health care related taxes, it can be hard to keep up with all that’s happening. But these Medicare and employer health care related tax changes in particular, …
With ongoing volatility across global markets and an uncertain future in terms of taxes, regulations and government safety nets such as social security; diversification is key in managing the risk associated with your retirement savings. That’s why these four risk diversification strategies across products and services make a lot of …
Welcome to the latest edition of the Carnival of Retirement (33rd edition) where you’ll see the latest and greatest articles on retirement and related personal finance topics. Whether you are just planning, in or worried about being able to retire, you’ll find some useful perspectives and advice here. Shilpan @ …
An interesting study by the Congressional Budget Office (CBO) provided some very telling graphics around income distribution changes relative to which groups paid the most in taxes. Amazing how politicians can both take the same data and spin it in different ways. The first graphic shows the cumulative growth in …
[Updated] Will i still have to pay health insurance penalties (under the Obamacare individual mandate)? This is the question a lot of Americans are asking. The short answer is NO from 2019. Here is why the individual mandate, a.k.a Obamacare penalty, is no longer in effect from 2019: While Congressional Republicans …