Normally, we do not make these requests until we are in the throes of tax season but let’s take a proactive look at steps you can take now.
It’s the end of the year and your to-do list is a mile long. The last thing on your mind is your finances. Still, they deserve a good look before the close of the year. While we cannot help you with the cooking, cleaning and gift buying, we can help with your financial to-do list.
As we approach the end of the year and the holiday season, we seem to be bombarded with opportunities for charitable giving. Happily, many of us answer this call and donate generously to our favorite charitable organizations. Your generosity may also be beneficial at tax time if you remember a few IRS guidelines for charitable contributions …
Student loan debt reached $1.6 trillion in June of 2020. This is close to 10% of the U.S. gross domestic product. How did we get here, and what options do families have for financing higher education?
Benjamin Franklin has a famous quote: “… nothing can be said to be certain, except death and taxes.” A more modernized quote would probably include the mention of debt!
One silver lining amid recent events is that market interest rates have declined, resulting in lower mortgage rates. Mortgage rates are sensitive to the 10- year Treasury note, which had a near-record low 0.66% yield as of Sept. 30, 2020, down over a full percentage point from an already low 1.73% one year ago. If you have not refinanced recently, we suggest you consider it now.
Personally, there is nothing more relaxing and exhilarating than being on a sailboat with a 15-knot wind on your beam (side), listening to the soft sounds of water splashing against the bow and using wind energy to propel the boat forward.
Debt can sure come in handy when buying a major asset like a house or car or managing unexpected expenses. Thankfully, the interest you pay on this debt can often provide a helpful deduction on your tax return. However, the IRS is very specific regarding the situations where interest is or is not deductible. The rules can be quite complex, so a discussion with your tax professional is always a good idea. Here are several typical examples of how the IRS treats interest payments.
Why are we ending a stressful year talking about debt management?
The COVID-19 pandemic and resulting recession have caused a lot of people to think deeply on their financial goals as they relate to home ownership.