You don’t want to pay more in federal income tax than you have to. With that in mind, here are five things to consider when it comes to keeping more of your income. 1. Postpone your income to minimize your current income tax liability By deferring (postponing) income to a later year, you may be
Answer: Yes, they can be an excellent way to save for college. College savings plans are established by states and typically managed by an experienced financial institution designated by the state. Each plan has slightly different features. A 529 college savings plan lets you save money for college in an individual investment account that offers
In general, Americans are not sufficiently prepared to pay for long-term care. Many of them go through their lives simply hoping that they won’t ever need it. Unfortunately, in the event that you or a loved one does need long-term care, hope won’t be enough to protect you from potential financial ruin. Self-insurance as an
What is it? If you’re planning to remarry, you must decide how you and your fiance will combine your finances, and you’ll need to plan a financial strategy that considers the assets, liabilities, and financial responsibilities that each partner brings to the marriage. You’ll find that financial planning for marriage is more complicated than it
Planning on working during retirement? If so, you’re not alone. An increasing number of employees nearing retirement plan to work at least some period of time during their retirement years. Why work during retirement? Obviously, if you work during retirement, you’ll be earning money and relying less on your retirement savings — leaving more to
In today’s corporate environment, cost cutting, restructuring, and downsizing are the norm, and many employers are offering their employees early retirement packages. But how do you know if the seemingly attractive offer you’ve received is a good one? By evaluating it carefully to make sure that the offer fits your needs. What’s the severance package?
What is it? Definition The student loan interest deduction allows you to deduct from your gross income a portion of the interest you pay on student loans. The maximum deduction is $2,500. Eligibility requirements To take the deduction, you must meet several requirements: The interest must be paid on a qualified education loan that was
What health care benefits are available in retirement? Health care in retirement is available from many sources. Government programs (such as Medicaid and Medicare) offer numerous health care benefits. However, you may need to purchase supplemental health insurance or Medigap, as well. Most Americans are eligible to begin receiving Medicare benefits at age 65, but
Introduction A rustic cabin. a seaside cottage. buying a second/vacation home can be an alluring prospect. Before you decide to purchase one, though, you should consider a number of issues. These include the costs associated with owning a second/vacation home, the attributes of the home, its rental potential, and the income tax treatment. Should you
Answer: That depends upon how much you have earned and how long you have worked under the Social Security system. Your retirement benefit will be based on your average lifetime earnings. Don’t worry if you started out as a busboy and worked your way up to executive restaurant guru–only your highest 35 years of earnings
