By David John Marotta and Beth Anderson Nedelisky The average college student graduates with almost $20,000 in student loans. While this is a daunting sum, it is still possible to build wealth even while paying off student debt. But earning the degree and paying for the degree require two different kinds of smarts. In fact, [...]
By David John Marotta Putting all of your retirement eggs in one basket is easy to carry, but risky. Most workers are putting all their retirement assets in the basket of their employer’s retirement plan. They are depending on one employer and two dozen eggs (funds) to hatch and maintain their lifestyle, independence and dignity [...]
By David John Marotta and Beth Anderson Nedelisky Income-shifting is one of several tax planning tools families have used to lower their tax bill. Historically, parents could save a bundle by transferring highly appreciated investments to their children who are in lower tax brackets. However, this year, Congress has made income-shifting a dream of the [...]
A few weeks ago, I discovered a hardware store receipt among some papers my in-laws had given us. Because my father-in-law works in maintenance, I called them to see if he needed the receipt for reimbursement from his job. No, my mother-in-law told me, it wasn’t a work expense; it was the receipt for their [...]
You’ve probably heard before that it doesn’t always make sense for both adults in a household to work because the second spouse’s income is all taxed at the marginal rate. When childcare costs are factored in, there can be little-to-no financial motivation for both parents to work. But did you know that taking a full-time [...]
I think almost every week I hear someone who makes over $70k a year mention their wonderful student loan interest tax deduction. It’s time to take a few minutes to educate the masses about the student loan interest. Plain and simple, if you make a good wage you will not qualify for the student loan [...]
There is a story making it’s way around about a waitress that received a $10,000 tip and what a wonderful gesture it was. No doubt about it, except that because of the way it was given, the waitress is going to have to pay taxes to the IRS for it. Granted, if the person giving [...]
Something has been bugging me about IRAs lately. Most of the time I read an article or discussion about Traditional IRAs, as opposed to ROTH IRAs, I see that it is a pretty common assumption that income tax rates will be lower when one retires. Every time I see any mention of tax rates most [...]
Here’s a question. You don’t have a whole lot of money and I want you to save more. So I create a plan where for every dollar you save, I will take away $2.60 worth of benefits from you. How likely are you to want to save money? That is exactly what a new study [...]
The state of California recently reviewed a sample of state tax returns which claimed large mortgage interest deductions and found that 75% of the tax returns had claimed excessive interest deductions. There are rules that limit how much interest you can deduct for your mortgage and other monies borrowed against your house. However, historically, only [...]
