August 31, 2016
Tax Goof

Make a Tax Goof? Here’s How to Amend Your Return

Make a Tax Goof? Here’s How to Amend Your Return. It’s very common to make a mistake when filling out tax forms. Fortunately, the IRS makes it easy to file an amended tax return. Here’s what you need to know: Make a Tax Goof? Here is How to Amend Your Return The IRS says that you should amend your federal tax return if you need to correct your filing status, the number of dependents you claimed, or your total income. Deciding to claim additional deductions or tax credits that you left off of your original return also calls for an amendment. In some cases, you may not need to file an amended return. The IRS usually catches and corrects simple math mistakes when processing your return, so realizing you made a simple arithmetic error shouldn’t be a cause for worry. The IRS will also mail a request for any missing information they may need to process your original return. If you need to file an amendment, you’ll need to use Form 1040X and indicate which year’s return you’re amending. Unfortunately, there’s no way to complete this form online, so you’ll have to fill it out in paper form. If you […]
August 30, 2016

LIBOR Surge May Rule Out September Fed Rate Hike

WEEKLY UPDATE – August 29, 2016 We are going to discuss LIBOR Surge May Rule Out September Fed Rate Hike in this article. After rallying for weeks, the major indexes fell last week ahead of key remarks by Federal Reserve officials and turbulence in money markets.[1]  For the week, the S&P 500 lost 0.68%, the Dow fell 0.85%, the NASDAQ dropped 0.37%, while the MSCI EAFE gained 0.16%.[2] Even as the Fed has kept interest rates flat, an unexpected surge in short-term interest rates triggered by an industry rule change is potentially doing some of the Fed’s work for it. If you ever tune in to the financial news, you may have heard the term LIBOR (pronounced LIE-bor) mentioned in reference to money markets (what we call the trade of short-term loans between banks and other financial institutions). LIBOR Surge May Rule Out September Fed Rate Hike LIBOR, the London Interbank Offered Rate, is a benchmark used for a vast range of debt, including mortgages and corporate loans. Recently, the three-month LIBOR (the rate charged for lending dollars for three months) has reached multi-year highs (rising more than 30% since this June), tightening credit conditions without any action by the […]
August 29, 2016
IRA vs. ROTH

IRA vs ROTH ~ Which is Best?

Trying to decide which is best for you: A Traditional IRA or a ROTH IRA? The twо mаіn tуреѕ оf Individual Retirement Accounts (a.k.a. IRAѕ)  that саn hеlр you ѕаvе fоr rеtіrеmеnt are Traditional and ROTH. Thе type оf іndіvіduаl retirement ассоunt уоu сhооѕе can ѕіgnіfісаntlу аffесt уоu and уоur fаmіlу’ѕ current and future finances. Sо іt’ѕ worth undеrѕtаndіng the differences between Traditional IRAѕ and ROTH IRAѕ іn оrdеr tо select thе bеѕt оnе fоr уоu. IRA vs ROTH ~ Which is Best? Lеt’ѕ ѕау уоu’rе eligible for both a ROTH or a Traditional IRA. Gеnеrаllу, уоu’rе bеttеr off іn a Traditional іf уоu еxресt tо bе in a lоwеr tax brасkеt when you retire. Bу dеduсtіng уоur соntrіbutіоnѕ now, you may lower уоur сurrеnt tax bіll. When you retire and ѕtаrt wіthdrаwіng money, уоu’ll bе іn a lower tаx brасkеt, thеrеbу gіvіng less mоnеу оvеrаll tо thе tax mаn. If уоu еxресt to bе іn thе same or higher tаx bracket whеn уоu rеtіrе, you mау іnѕtеаd wаnt to consider contributing tо a ROTH IRA, whісh аllоwѕ you tо get уоur tаx bіll settled nоw rather than lаtеr. But іt саn bе dіffісult, if nоt impossible, tо guеѕѕ what […]
August 27, 2016
Emergency Fund

The Importance of an Emergency Fund

One thing is true of life…expect the unexpected. That’s why any financial guru around will stress the importance of having an emergency fund. If you’re confused on what exactly an emergency fund should be used for, I can tell you it’s not for that 65” TV you’ve been eyeing at Best Buy when yours bites the dust. While that may seem like a catastrophic event to some, it’s not exactly the type of crisis that you’ll want to dip your fingers into your cash stash for. An emergency fund, also known as a rainy day fund, is the money you save for those unforeseen circumstances you run into in life. Your budget is made up of this everyday expenses like groceries, housing, cars etc. Your emergency fund is for those things you don’t anticipate in your budget. So when life happens and it will, you need to have money somewhere that you can easily access to cover those expenses. This is NOT money you tie up in an investment. You’ve got to keep it fluid and available. You don’t want to count on credit cards or debt to get you through when you car breaks down or the air conditioning […]