You might realize that you need a budget …but how do you convince your spouse that you need a budget? And once you convince him, how do you get him to stick to it? This is the foundation of family financial planning. I could be wrong (it happens once in a while) but in my […]
Archives for July 2010
Overlooked Tax Consequences of Converting a Traditional IRA to a Roth IRA
Converting a traditional IRA to a Roth IRA can have unintended tax consequences. Generally speaking, you have to pay tax on any money you convert into a Roth and you have to pay that tax the year you convert. You simply add it to your income and it will be taxed at your highest marginal […]
What Is an Irrevocable Life Insurance Trust?
You should consider forming an irrevocable life insurance trust if your estate is taxable at a very high rate. How does it work? Let’s say you have a taxable estate and you figure your estate tax is going to be $500,000. Further assume that most of your estate is tied up in real estate and […]
Will I Lose My Home If I File Chapter 13 Bankruptcy?
Will I lose my home if I file chapter 13 Bankruptcy? A reader, “V,” asked me this question recently. Here’s a copy of her e-mail: I might have to file “BK.” I have four credit cards in default. I am on disability and have no earned income but at least my house is paid for. […]