It's tax time again. While taxes are the price for a civilized society, there's nothing in the law that says you can't lower your own tax bill. So at this time of year, I do get questions about taxes. Most folks are looking for ways to minimize taxes. Here are 8 ways to minimize taxes. You may find one or two that work for you. You can minimize tax liability in more ways than can be counted ... Read More
Roth IRA
Five Ways to Save After Maxing Your 401(k)
If you have maxed out your 401(k) contributions (voluntary pre-tax deferrals of $18,000 or $24,000 if you are 50 or older by year end) and want to save more for your retirement, here are five more ways to save after maxing your 401(k). On Investopedia recently, an investor asked 'How can I save if I already maxed out my 401(k) and IRA?' If you have the cash flow and desire, you can ... Read More
Using Your IRA for First Time Home Purchase
Can I tap my IRA to help with the purchase of my first home? Question:) When do I take the 10k out of my IRA for a first time home purchase? I know the process of finding a home in my area could take a significant amount of time. Money Coach's Answer: Congratulations on taking the leap into home ownership! The Basic Rule for IRA Distributions and Real Estate Purchases For those who are not ... Read More
IRA and 401k Contribution Limits Changed for 2013
IRA Contribution Limits for 2013 The IRS has increased the maximum contribution limits for contributions made for 2013 to the following: Traditional/IRA Rollover: $5,500 ($6,500 if you are 50 years old or older) Roth IRA: $5,500 ($6,500 if you are 50 years old or older) SIMPLE IRA: $12,000 ($14,500 if you are 50 years old or older) SEP IRA: $51,000 ($51,550 if you are 50 years old or ... Read More
Ask the Money Coach: How to Save for Retirement when Self-Employed
If you're a small business owner running a business by yourself or with your spouse, you are eligible for a "solo" 401(k) plan that can cover you and your spouse (if you have one). These types of plans are usually offered through any number of platform providers using a simple "prototype." By using this type of template, the costs for setting up a plan are significantly reduced. Most mutual fund ... Read More
Ask the Adviser: What’s Next Beyond My 401(k)?
I'm trying to decide where to invest next. Client Question: I'm maxing out my employer matched 401k, maxing out a traditional IRA, and will soon have an emergency fund in a savings account that I'll continue to add to every paycheck. This is where I am now: Moderate risk 401k, Vanguard target retirement fund, and low risk savings account. Looking for something slightly riskier. Boston ... Read More
Top Financial Mistakes of Divorce in Boston, Massachusetts: Part 3
3. USING YOUR BOSTON DIVORCE LAWYER AS YOUR FINANCIAL PLANNER (3rd in a Series) While your Boston divorce attorney may be an expert in the LAW, don't expect them to be an expert in TAXES, INSURANCE, CREDIT, or RETIREMENT. And when you think about it, once you get beyond child custody issues mostly everything else in a divorce is all about money - how much, who gets what, how to split it ... Read More
Retirement Planning for College Bound Kids
For college-bound students, funding retirement has to be the farthest thing from their minds. Yet, with a little planning, parents may be able to kill two birds with one stone. Unfortunately, most parents of college-bound kids tend to overlook some obvious ways to lower the cost of college but wisely using the tax code and some retirement planning techniques can help. It may be a low-priority ... Read More
Beat the Holiday Rush: 7 Financial Planning Tips Before Year End
The holiday season is almost upon us. Before we all get caught up in the spirit of the season (or mayhem, depending on your perspective), consider taking time to get your fiscal house in order with these tips. The Year of the RMD Last year, required minimum distributions (RMDs) were not required as Congress granted a reprieve to not force clients to take distributions from severely depressed ... Read More
Roth IRAs: Should You Convert?
Lots of ink has been spilled discussing one of the most hyped retirement and tax strategies: Roth IRA conversions. The prospect of future tax-free withdrawals is enticing. But there are lots of issues that need to be considered whether it is right for you. According to Google, there has been a surge in interest about Roth IRA conversions as it has become one of the top search terms this fall. ... Read More
