The current mortgage market presents homeowners with an opportunity. Mortgages haven’t been this cheap for decades. You would have to go back to the 1950s to find mortgage rates that compare with those in 2010. On October 14, Freddie Mac’s weekly survey estimated the average interest...
The strong dollar policy is long gone, but the greenback isn’t in peril just yet. A favorite doomsday scenario. Have you heard about the forthcoming collapse of the dollar? Well, if you turn on your computer, your radio and even your TV, you just may. With...
Half of Americans aren’t paying federal income taxes. Is that right? A provocative statistic. Last July, the nonpartisan Tax Policy Center (a joint venture of the Urban Institute and the Brookings Institution) estimated that 47% of Americans would not owe a penny to the IRS for...
What might happen if they went away? The debate is gaining volume. In July, Treasury Secretary Timothy Geithner said that very few taxpayers would be affected if the landmark tax cuts of 2001 and 2003 expired. “I do not believe it will affect growth,” he calmly...
A year? Seven years? It depends. You have probably heard that you should retain copies of your federal tax returns for 7 years. Is that true, or a myth? How long should you keep those quarterly and annual statements you get about your investment accounts? And...
Historically, these events tend to help equities. You may have heard that stocks tend to rally in fall and winter. That has often been the case. In fact, the S&P 500 and the Dow have gained repeatedly after the elections occurring in the third year of...
Resist the temptation. Fight the urge. Fight for your future. Recently, you may have heard about a spike in 401(k) withdrawals. The evidence is not merely anecdotal. Fidelity Investments recently issued its 2010 overview of the 401(k) accounts it administers and found that 22% of participants...
That’s part of the plan. How will you be affected? In 2013, wealthy Americans will pay extra Medicare taxes. Congress, President Obama and the IRS are putting a surcharge on the wealthy to help fund the health care reforms. Beginning in 2013, joint filers with adjusted gross...
Why are retirement plans often created assuming a 4% withdrawal rate? When financial professionals try to estimate just how much money a couple or individual should take out of their savings annually, their model scenarios often assume a 4% annual withdrawal rate. Why is 4% used...
Financial advisers are noticing a shift. A development few have noticed. The recession that started in 2007 quietly brought an economic shift to millions of American families - the woman of the house became the primary wage earner. In June 2010, Labor Department data showed that nearly...