TAX EFFICIENCY

What it means, why it counts.

A little phrase that may mean a big difference. When you read about investing and other financial topics, you occasionally see the phrase “tax efficiency” or a reference to a “tax-sensitive” way of investing. What does that really mean?

The after-tax return vs. the pre-tax [...]

Don’t miss the IRA contribution deadline!

Make sure you make your 2008 IRA contribution before April 15! With share prices at historic lows, fully funding your IRA for 2008 (and 2009) could mean a tremendous boost toward saving for retirement.

Times are tough, but remember: the goal is to buy low and sell high! Anyone with an IRA should [...]

TAX LOSS HARVESTING

A useful year-end move to counteract capital gains.

Even though this has been a poor year for the market, you may realize short-term capital gains. What do you do about them? You could do what many savvy investors do – you could “cash in your losses” and practice tax loss harvesting.
Selling losers [...]

HOW LONG DO YOU HAVE TO KEEP YOUR STATEMENTS?

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 just myth? How long should you keep those quarterly and annual statements you get about your investment accounts? And how long should you keep bank statements [...]

SEP IRAs

Useful savings plans for the smallest businesses.

Do you own a small business with a few employees? Are you self-employed? In either case, the SEP IRA may be the ideal low-cost, easily administered retirement savings plan for you.
This is a simple pension plan using a traditional IRA. (SEP stands for Simplified Employee Pension.) It [...]

AMERICA Fights Foreclosures

Will Obama’s strategy make a dent in the problem?

A day after signing his massive stimulus plan into law, President Barack Obama unveiled a strategy to stem the tide of American foreclosures. Some borrowers and lenders cheered; some housing industry analysts were unimpressed.
When does it take effect? The program officially begins on March [...]

OBAMA’s STIMULUS PLAN

A look at where the money goes.

On February 17, President Obama signed the 1,071-page American Recovery and Reinvestment Act (H.R. 1) into law. Here are some of the routes the money will take.
>> $287 billion in tax breaks include…

$116 billion in refundable tax credits for individuals & families. Is your adjusted gross [...]

LAYOFFS, 401(k) FREEZES & 401(k) ROLLOVERS

What do you do when you leave work or your company stops matching?

If you’re laid off, what happens to your retirement money? Well, you have three basic choices with your 401(k). One gives you more freedom and control than the other two.
You could just leave your 401(k) alone. The money will remain [...]

BASH THE BANKER

Is the berating of America’s banks really warranted?

Leading executives from America’s eight largest banks testified on Capitol Hill February 11, as Congress asked how they spent $165 billion in federal money. Legislators had four questions in mind:
1) Where did the money go?
2) Why aren’t you lending as much as we would [...]

WHAT YOUR INVESTMENT POLICY STATEMENT MEANS

What it is and how it guides your portfolio when the markets change.

What’s an IPS, and what does it do for me? An investment policy statement, or IPS, is the foundation of a good investment strategy. It gives you an overview of the whole investment plan: the asset allocation, the objectives, the asset [...]