A few times per year, a client or friend calls me with a “stock tip” he or she heard from someone. I’ve never traded on these ideas for a few reasons. First of all, the tip is illegal if it comes from insider information. That alone is a showstopper. If the information is not from […]
Author Archive
Understanding the Wash Sale Rule
The IRS wash sale rule prohibits traders/investors from deducting losses from sales or trades of stocks or securities in a wash sale unless the trader is a dealer in stocks or securities. A wash sale occurs when a trader sells a stock or security at a loss and within 30 days before or after the […]
10 Ways to Save Money
Think about why you are saving money. If your reason for saving is so you can buy a lot of “stuff”, this information will not speak to you. If your goal is a financially secure future, these 10 steps are for you. The key to being able to retire without financial worries is building a […]
What is Disposable Income?
The term “disposable income” has a wide variety of meanings to many people. Dictionaries generally define disposable income as the income left over for savings after taxes and required expenses are deducted. The trouble with this definition is that it considers savings a discretionary item. Anyone who plans to retire one day (and does not […]
What Can You Afford?
Afford is a tricky word. Many people think of how much money they have available in their wallets or checking accounts and believe if they can pay for it at the time, then they can afford it. Purchasing something on a credit card with the mindset that you can meet the minimum payments each month […]
College Savings Options
The cost of attending college has been rising faster than the rate of inflation for years and is expected to continue on this pace for years to come. Parents who are interested in planning for their children’s higher education need to consider which option(s) best meets their needs. Some options allow for tax-deferred savings while […]
What is a Highly Compensated Employee (HCE) and Should You Care?
In most cases employees are happy to know they are considered “highly compensated”, but when the Department of Labor (DOL) is reviewing your company’s 401(k) plan it’s not such a good label always. Being labeled a highly compensated employee (HCE) can reduce the amount an employee may contribute to his or her 401(k). The idea […]
Retirement Plan Contribution Limits for 2012
The IRS is allowing investors saving for retirement to add a little more to most of their tax deferred accounts than previous years. The 2012 contribution limits cost-of-living increase for IRAs (Traditional, Roth, SEP) and 401(k) plans are listed below. 2012 Combined Traditional and Roth IRA Contribution Limits If you are under 50 years of age at the […]
