Blog Entries

PAYING FOR COLLEGE WHILE SAVING FOR RETIREMENT

support@sismallbiz.com — Wed, 01 Dec 2010 00:00:00 +0100

These two objectives are not mutually exclusive.

It can be done. All across America, families are meeting a mighty financial challenge - the challenge of paying college costs with retirement potentially on the horizon. How do they do it? They go about it consistently; they also get creative.

First, make sure the priorities are in the right order. Strange as it may sound, your retirement may need to take precedence over your child's college education.

Think about it. Your so [...]

WHICH FINANCIAL DOCUMENTS SHOULD YOU KEEP ON FILE?

support@sismallbiz.com — Fri, 15 Oct 2010 00:00:00 +0100

What should you store in one easily accessible place?

You might be surprised how many people have financial documents scattered all over the house - on the kitchen table, underneath old newspapers, in the hall closet, in the basement. If this describes your financial "filing system", you may have a tough time keeping tabs on your financial life.

Organization will help you, your advisors ... and even your heirs. If you've got a meeting scheduled with an accountant, financial co [...]

COULD A ROTH IRA CONVERSION AFFECT A STUDENT’S FINANCIAL AID?

support@sismallbiz.com — Thu, 02 Sep 2010 06:00:00 +0100

Run the numbers, because the answer could be "yes." An underreported story. In 2010, we have a wave of IRA owners converting traditional IRAs to Roths. There are all kinds of compelling reasons to make that move. Yet for some IRA owners, the conversion may have an unintended consequence: it may reduce their son or daughter's chances for college financial aid.A Roth conversion will increase your taxable income. As some scholarships, grants and loans are awarded based on income le [...]

HOW LONG TERM CARE INSURANCE CAN HELP PROTECT YOUR ASSETS

support@sismallbiz.com — Fri, 09 Jul 2010 06:00:00 +0100

Create a pool of healthcare dollars that will grow in any market.

How will you pay for long term care? The sad fact is that most people don't know the answer to that question. But a solution is available.

As baby boomers leave their careers behind, long term care insurance will become very important in their financial strategies. The reasons to get an LTC policy after age 50 are very compelling.

Your premium payments buy you access to a large pool of money wh [...]

THE FINANCIAL REFORM BILL

support@sismallbiz.com — Thu, 03 Jun 2010 06:00:00 +0100

Main Street's anger over Wall Street reaches the Senate floor.

Another reform bill is now making its way through the Senate - a bill that would reregulate the financial services industry with a few goals in mind:

1) Preventing failures of large banks and financial services firms, or at least insulating taxpayers and the economy in such an emergency2) Creating a new financial watchdog agency to protect consumers 3) Tightening regulations on derivatives4) Banning [...]

COULD A ROTH IRA CONVERSION AFFECT A STUDENT’S FINANCIAL AID?

support@sismallbiz.com — Wed, 05 May 2010 06:00:00 +0100

Run the numbers, because the answer could be "yes."

An underreported story. In 2010, we have a wave of IRA owners converting traditional IRAs to Roths. There are all kinds of compelling reasons to make that move. Yet for some IRA owners, the conversion may have an unintended consequence: it may reduce their son or daughter's chances for college financial aid.A Roth conversion will increase your taxable income. As some scholarships, grants and loans are award [...]

THE 47% CONTROVERSY

support@sismallbiz.com — Mon, 19 Apr 2010 06:00:00 +0100

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 tax year 2009.1 The White House has projected the federal deficit at $1.6 trillion for 2010 - that's about 10.6% of our GDP, a percentage unseen since the 1940s. So is it fair to the nation that so ma [...]

HOW WILL OBAMACARE AFFECT YOUR SMALL BUSINESS?

support@sismallbiz.com — Mon, 05 Apr 2010 06:00:00 +0100

Will health care reform mean headaches ... or hidden dividends? Increased costs or savings in years to come? What do the federal health care reforms mean for your company? Will they lead to thousands of dollars in extra costs and more paperwork? Or will federal subsidies make this a "game changer" for small companies that have struggled to provide insurance plans? If you employ 50 or more, you will face a major choice. Businesses with 50 or more employees will have a choice begin [...]

WHAT DO YOU DO WITH SUDDEN WEALTH?

support@sismallbiz.com — Fri, 19 Mar 2010 06:00:00 +0100

You're suddenly rich. Now what?

What's the plan when you have a windfall? Through luck, inheritance, talent, or legal decisions, some people receive "sudden wealth" - a lump sum of money that is at least several times their annual income. Sometimes people think that the money will solve all of their problems. But if they aren't careful, it can create entirely new ones.

Sudden wealth often comes with emotional baggage a [...]

Pew Study Finds States Face $1 Trillion Shortfall in Retiree Benefits

support@sismallbiz.com — Fri, 19 Feb 2010 06:00:00 +0100

Washington, D.C. - 02/18/2010 - There was a $1 trillion gap at the end of fiscal year 2008 between the $2.35 trillion states had set aside to pay for employees' retirement benefits and the $3.35 trillion price tag of those promises, according to a new report released by the Pew Center on the States. The shortfall, which will have to be paid over the next 30 years by state and local governments, amounts to more than $8,800 for every household in the United States.

The figures [...]

OPTIONS FOR TAKING MONEY OUT OF A ROTH

support@sismallbiz.com — Fri, 05 Feb 2010 06:00:00 +0100

Explaining some of the intricacies of withdrawals.

Sometimes people want to access Roth IRA funds for early retirement or other purposes. Maybe you're one of them. If you have ever thought about taking money out of a Roth IRA, be sure to consult your financial advisor first before you make a move ... and keep the factors mentioned below in mind.

You can withdraw regular contributions tax-free, but not your earnings. This is a critical distinction, and [...]

Socially Responsible Investing Goes Mainstream for Main Street

support@sismallbiz.com — Mon, 25 Jan 2010 06:00:00 +0100

Socially Responsible Investing for the Long Term

The past few years have hammered home the importance of corporate integrity, as investors watched former Wall Street darlings collapse in the aftermath of corporate scandal. In fact, a majority of investors now believe that companies that operate with higher levels of social responsibility carry less risk (55%) and deliver better returns (52%).1 And 71% of investors contend that knowing that companies are rated higher in terms of their s [...]

FROM WEALTH ACCUMULATION TO WEALTH PRESERVATION

support@sismallbiz.com — Thu, 07 Jan 2010 06:00:00 +0100

A retirement transition might call for a shift in your investment approach.

Time passes ... and priorities change. When you approach retirement, your investment mindset may have to be modified. If you are in your thirties or forties, the goal is accumulation - investing and saving to amass as much as possible for your retirement years. When you are older, the goal changes to wealth preservation - the objective of making assets last through a combination of conservative investing, sensi [...]

INHERITING AN IRA

support@sismallbiz.com — Tue, 15 Dec 2009 06:00:00 +0100

Make sure you pay attention to the rules.

What do you do when you inherit an IRA? Good question. Most people don't know the rules and regulations pertaining to inherited IRA assets. You should. You, not the IRS, should benefit the most in this circumstance.

Will my income taxes soar this year as a result? Not necessarily. If you roll the assets into an inherited IRA, you have up to five years to either a) withdraw the money entirely or b) withdraw the money [...]

MONEY AND HAPPINESS

support@sismallbiz.com — Tue, 01 Dec 2009 06:00:00 +0100

Do they go hand in hand?

Does money actually buy a degree of happiness? In this recessionary holiday season, it is worth thinking about the effect money has on our lives. What role does money play in our happiness? Is that role overrated?

Most psychologists and sociologists will tell you that our happiness comes largely from social interaction. But studies indicate that there is a direct correlation between wealth and a kind of mental health.

A [...]

LESSONS FOR FUTURE MILLIONAIRES

support@sismallbiz.com — Tue, 17 Nov 2009 06:00:00 +0100

Giving kids a better understanding of money and finances.

How do you give your children or grandchildren the right attitude about money? And a good financial start? While you can gift your child up to $13,000 a year tax-free, consider these options, wrapped up with financial lessons. After all, what better time than during a financial crisis to convey your hard-earned financial wisdom to little Junior?

Roth IRAs. If your child has a job, why not encourage saving for retirement wit [...]

TAX LOSS HARVESTING

support@sismallbiz.com — Thu, 29 Oct 2009 06:00:00 +0100

A useful year-end move to counteract capital gains.

Because financial markets have improved since March, you may realize short-term capital gains this year in your investment portfolio. What can 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 to offset winners. Tax loss harvesting means taking capital losses (you sell securities worth less than what you [...]

Financial Main Street Rescue Tour is Coming on October 28th

support@sismallbiz.com — Tue, 27 Oct 2009 06:00:00 +0100

Free personalized financial advice, tax, and estate planning information for Main Street

How are your investments doing in this crazy market? Do you need a will or trust and what’s this thing called probate? Do you have concern [...]

Better opportunities & remarkable progress mask daunting financial challenges faced by women

support@sismallbiz.com — Thu, 15 Oct 2009 06:00:00 +0100

Does this sound familiar? "My name is Joyce and I've been divorced for a little over three years. I have two grown children. My daughter was married last spring and is expecting my first grandbaby. My son is moving back home this fall and plans to attend an area technical institute. My father died last year and my mother recently suffered a series of small medical setbacks... I earn a modest but comfortable salary. Over the years, I've steadil [...]

CHINA, JAPAN AND OUR DEBT

support@sismallbiz.com — Thu, 01 Oct 2009 06:00:00 +0100

Will other countries keep buying our Treasuries?

If China and Japan change their minds, could the United States have a problem? Since 1980, the U.S. has imported more than it has exported.1 It makes up for this trade deficit by issuing Treasury bonds and other debt instruments. Foreign governments have long lined up to buy them.

China holds almost $800 billion of U.S. Treasuries. That's the April 2009 figure from the U.S. Treasury (at this moment, the most [...]