There is one financial transaction that I strongly discourage clients from doing and here’s why . . . Do not withdraw from your retirement accounts early! Here are the reasons why I hear most people want to withdraw from their retirement accounts: Purchase a house Pay for expenses while unemployed As a temporary loan, with […]
IRA
Deadline Approaching: Should You Make a Retirement Plan Contribution?
The due date for your tax return is fast approaching and so is the deadline to make a contribution to your IRA or a SEP-IRA if you own a business. Should you make the contribution, save the cash, or pay off some debt? Reasons to Make the Contribution: Let’s assume that you have the extra […]
Is it Better if I File Separately from My Spouse and Other Common Tax Questions Answered
We receive a lot of questions pertaining to tax and financial matters. Here is a sample of commonly asked questions: Q: Is it better if I file separately from my spouse? A: Usually the answer is no, and the only way to know for certain is to perform an analysis when preparing the tax return […]
Strange Tax Benefits
The tax laws are written with a purpose in mind, but at times, it may be used (loopholes) to receive unintended benefits. You may be able to rent out your home or vacation home tax-free if rented for less than two weeks during the year If you have a home office, you may be able […]
Pay Less Tax on Your Investments
It’s great to accumulate wealth by investing and saving you money, but did you know that taxes can take a large bite from your investments? Every investor, including those with 401(k)’s, IRA’s, and traditional brokerage accounts need to be aware of the impact of taxes. Here are a few tips and items to watch out […]
Traditional IRA vs. Roth IRA
Traditional IRA: An individual retirement account that allows individuals to contribute pretax money to investments. The investments grow tax-deferred until the amounts are withdrawn at retirement, generally age 59 1/2. The maximum amount you can contribute for 2015 is the lesser of your taxable compensation or $5,500 ($6,500 if you are 50 or older). There […]
Your IRA is a Tax Time Bomb
Individual retirement accounts, also commonly referred to as IRA’s, are a great way to save for retirement and potentially reduce your current taxes. Although these benefits are great, there is a tremendous downside that can impact you if you make a wrong move. Early Withdrawal Penalty: If you need to withdraw money from your IRA […]
What is a Self-Directed IRA?
Individual retirement arrangement or IRA’s are very common and well-known. Normally when someone owns an IRA they invest in stocks, bonds, and mutual funds, but did you know that there is alternative arrangement, called a self-directed IRA? A self-directed IRA allows an individual to invest in a wide array of assets, including real estate, private […]
Don’t Make These Mistakes
With all of the financial and tax laws, changes to the laws, and life changes it is almost impossible to stay on top of everything. We have to constantly assess our situation all of the time. Here are a few things to consider: Wills, Beneficiaries and Estate Matters: Did you recently get married, have children, […]