Retirement planning is usually difficult for a variety of reasons. Some say its equivalent to rolling the dice because retirement may be decades away and you’re forced to make spending assumptions now.
What makes it worse is that if your guess is too far off, it can make a happy and comfortable retirement into one that is a nightmare.
Once you’re already in retirement, it can be very difficult to recover financially if some unforeseen large expense occurs. Some retirees try to find a job to supplement their income, but many others cannot. Either they’re not able physically, or the job market may be cold.
The following categories where un-planned spending generally occurs creates problems for some and blows their budget out the window. View full post…
Posted: July 30, 2018 Under: Retirement By: Gust Lenglet
Do I have to Pay Taxes on My Scholarship or Fellowship? Maybe.
Have you ever heard the expression “There is no such a thing as a free lunch?” When it comes to fellowships, grants and other free money from a college, you may not have a tax free scholarship.
Financial aid that you receive for higher education expenses, even when the college says its free, doesn’t mean that it is. Depending upon how the money is used, you could end up owing the IRSbig bucks.
Various types of financial assistance, such as fellowship grants, scholarships, and teaching assistantships, are very important to families. Often times, it may determine if your child will be able to attend the college of his/her choice.
College tuition and other associated expenses have been rising for years. Currently, the average fees and tuition for a full-time student attending a public college in state is 25,290.00. The average for a private college is 50,900.00.
This is why its very important to find out if your free money View full post…
Posted: July 14, 2018 Under: Income Tax By: Gust Lenglet
Charitable Contributions – Six Facts You Need To Be Aware Of
Remember the bygone days when you went to your tax preparer, or perhaps in doing your own return, and you pulled a number out of the air for charitable contributions? Your preparer would ask you how much you gave and you rolled your eyes and said, well, I usually give $10.00 in cash every week for 50 weeks, or perhaps some other embellished number. The preparer wrote it down and that was it. Folks, those days are over! The IRShas focused their attention to this area and has some rather strict guidelines that must be followed…or else.
So far this year, it hasn’t been a very good one for proper tax planning by investors, and it’s doubtful if we will see any positive changes by the end of the year. China has been struggling with their economic slowdown and declining oil prices have hit us as well. Couple that with the US economy that is still floundering about because of inept policies from the current administration, and it’s no wonder investment portfolios have been hammered.
A recent study was done by a major financial institution on the millennial generation and their money. One of the major revelations was that approximately eighty percent of these individuals that participated in the survey, stated that they learned how to survive and save after seeing how the great recession impacted their elders. Financial planning for millennials didn’t appear to be that important.
However, almost half admitted that their greatest financial concern was debt, and because of the high debt, they were living paycheck to paycheck. View full post…
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