The decision to pay off a mortgage or invest in the market is far from black and white. For those who are close to retirement and already have plenty of other liquid financial assets, paying off a mortgage could be a wise use of cash.
Washington’s agreement early this month on tax legislation brought good news for some and bad news for others. But from an investing and financial planning perspective, the agreement replaced a number of question marks with certainty. And certainty around tax rates and tax policy means
Congress passed the American Taxpayer Relief Act of 2012 on January 1st, 2013, providing taxpayers with clearer expectations about what lies ahead. Social Security Payroll Tax Reverts to 6.2% from 4.2%: Back in 2010, President Obama and Congress cut the Social Security payroll tax rate
If you see storm clouds hovering ominously over the markets, it’s only natural to seek a safe harbor. Right now, many people do fear that turbulent times are ahead, whether because of the so-called Fiscal Cliff, because of Europe’s drag on the world economy or
If you want to take a tax- and penalty-free withdrawal of the portion of a Roth that consists of investment earnings (amount above your initial contribution), you need to be age 59 1/2, disabled, or using the money to pay for a first-time home. However,
For months, Americans have been hearing about the “fiscal cliff.” Washington gridlock, we’re told, is driving the country toward that cliff—and plunging over it would mean catastrophe for the economy and the stock market.
When deciding how much to set aside for an emergency fund, there is a growing category of expenses most people tend to overlook: potential out-of-pocket health-care costs. Even if you haven’t opted for a high-deductible health-care plan, it’s likely that your out-of-pocket health-care costs have
The S&P 500 index is having a fabulous year. Through the end of September, the index, which tracks top American stocks, had risen 16.4%–making it the top-performing asset class. It’s the kind of performance that can make you want to push the majority of your
Investors were not disappointed, as additional quantitative easing (QE3) was announced on September 13th. Riots in Spain caused markets to react negatively, durable goods orders took a dive because of airline orders, and income and consumption numbers were hit hard by a quick spike in
Asset location is a part of the investing strategy that involves deciding which investments to hold in which accounts, and taxes play an important role in this decision. Here are a few basic guidelines. Hold in Your Tax-Sheltered Accounts: Assets With High Tax Costs. In