Debt is one of my biggest pet peeves. I HATE DEBT! Just to give you an idea of how much debt Americans are in here’s a few statistics from NerdWallet, $764 billion in credit card debt, $8.63 in mortgages, $1.17 trillion in auto loans, $1.34 trillion in student loans, and 12.73 trillion in other kinds of debt. The average credit card debt balance is $6,184.16. Households with new auto loans pay an average of $503 a month for 68 months. So you can see, we’re are a long way from debt-free living!
Planning for retirement means trying to figure out exactly how much you’ll need and coming up with that magical number can be perplexing. According to an Employee Benefit Research Institute survey, 42% of workers guess an amount. With so many tools at their fingertips, it’s may seem hard to understand why. While an online retirement calculator may be an indispensable tool, they may be aiding to peoples’ confusion. There are several out there and that gives you a good idea of the number to aim for when it comes to your retirement. In this post we will test the most popular ones for unfriendlinesses, price (free), and accuracy… all in the quest to find the best online retirement calculator out there.
The federal income tax is a pay-as-you-go system. Employers generally withhold tax from workers’ wages. Taxpayers also often have taxes withheld from certain other income including pensions, bonuses, commissions and gambling winnings. People who do not pay tax through withholding, like the self-employed, generally pay estimated tax. In addition, those who earn income such as dividends, interest, capital gains, rent, and royalties are usually required to make estimated tax payments. Each year, because of life events like changes to household income or family size, some people get a larger refund than they expect while others find they owe more tax. To prevent a tax-time surprise, the IRS offers these tips: New Job When starting a new job, an employee must fill out a Form W-4, Employee’s Withholding Allowance Certificate. Employers use this form to calculate how much federal income tax to withhold from regular pay, bonuses, commissions and vacation allowances. […]
Finance is a multifaceted subject. It cuts across various aspects of our lives and at certain times knocks the wind right out of us. For instance, today as I met with a client, we considered how to calculate liquid net worth. Yeah, I know Liquid Net Worth doesn’t garner the attention that Net Worth alone does. However, both calculations have their place in your finances. So I’m going to share a little about why liquid net worth matters and how you can figure yours out.
I’m sure you’ve heard the old adage, “money doesn’t grow on trees”. Don’t you wish it did though? However, since it doesn’t how do you decide the best way to spend or save the money you do make? “There’s more than one way to skin a cat,” right? Let’s review the decisions parents face today. Should they save for a child’s college education or knock out their mortgage quicker? Or do both?Making the choice that’s best for you and your family comes down to priorities. Prioritizing Here’s the thing. Both paying down the mortgage and saving for college are noble causes. However, there is one particular priority I’d suggest placing above all else. RETIREMENT! You can fund college a lot of different ways. There’s financial aid, student loans, scholarships, etc. While those can help put your child through school, they won’t get you through retirement. Funding your retirement accounts also won’t […]