"The hardest thing in the world to understand is the income tax.” Albert Einstein
It is that wonderful time of year when our mail and now email boxes are being filled with notices of “IMPORTANT TAX DOCUMENTS”. As much as tax time is dreaded, the earlier you start gathering your documents and...
The tax law was passed by Congress and signed into law in late December. The changes impacted both individual and corporate taxes. This blog post provides an update – and convenient reference - from my mid-November post when differences between the House and Senate plan were still being considered.
The 2018 Social Security inflation adjustments are finalized. For those receiving benefits, there will be a 2.0% increase for 2018 GROSS benefits (before Medicare premium deduction). For those earning wages and paying into Social Security, the maximum wage amount subject to 6.2% SS payroll tax increased 1.2% to $128,700.
Some people turn to their 401k when they need a loan. “Why not pay yourself the interest?” is one common thought. But what really goes on when you take out a 401k loan and how does it compare to other borrowing choices?
The recent Illinois income tax increase caused many reactions. Asking taxpayers for more funds in return for reforms that can begin to fix the core problem is one thing, but that will have to wait again.
I distinctly remember two graduation gifts from my uncles and aunts that I enjoyed – a ‘Choose Your Gift’ catalog and a wallet. Another gift that will provide fond memories – though it may take a little while to appreciate! – is a list of common financial topics and habits that if done early in one’s career, will pay lasting gifts into the future.
Estate planning is an important part of a financial plan. The term can mean different things depending on one’s perspective. Some may believe it is only needed by the wealthy to manage estate taxes, but in fact all people should have a plan for their estate. The level of complexity will vary by wealth and intentions.
Inflation has been quite low for some time. That has been one of the silver linings of this low-rate environment - expenses have not been soaring as bond and cash returns provide little income. But what if inflation rises faster than recent history on the back of higher economic growth and wage pressure from a decreasing unemployment rate?
The USDA recently issued Expenditures on Children by Families, 2015 or more commonly known as “The Cost of Raising a Child” report. The answer: $233,610 per child for a middle-income couple with two children. This is in today’s dollars (not inflation adjusted) through age 17 and does NOT include the cost of a college education.
It’s fall; time for cool evenings, changing leaves… and employee benefits enrollment. Whether you are new to the company or have been there for years, review the benefits carefully and take full advantage of the offerings to help increase your financial security.
Social Security and Medicare are very important programs. Those currently receiving Social Security benefits appreciate the monthly income that grows with inflation and continues as long as they live. The Medicare program provides health coverage during potentially vulnerable times.
This blog post will provide some background on traditional Fed activities and point to resources for those who want to learn about the economic theory behind non-traditional policies.