Amortization is a key concept in your financial life. If you don’t have a clear amortization definition, you’ll find it difficult to understand how a mortgage works. And amortization is also critical if you want to budget effectively (much more on that shortly). Can you think of any more important financial concept? There aren’t many. […]
Roth vs. Traditional IRA: Once You Retire, Which Is Best?
How does a retired person approach the issue of Roth vs. Traditional IRA? Dave sent an e-mail asking this very question: Why should I assume I will be in a higher tax bracket in retirement? I am planning (with luck!) to have minimal expenses in retirement (hoping to pay off mortgage, etc by then) so […]
FEDERAL ESTATE TAXES – Smart Strategies in 2012 and Beyond
You might think you don’t have to worry about federal estate taxes anymore. Current laws exclude the first $5 million in your estate for estate tax. And to make it an even sweeter deal, a couple (if both are American citizens) can exclude up to $10 million. Does that mean you don’t have to worry […]
Do I Need a DBA to Open My Small Business?
If you want to run a successful business, you have to come up with a strong business name. And if you run your business under a name that’s not your own, you need a “DBA” (“Doing Business As”). The good news is that if you create a DBA, you can use just about any name […]
Letter from the IRS – What You Should Do
Getting a letter from the IRS is almost never a pleasant experience. Even though I run a pretty tight ship when it comes to my tax return and I do everything possible to avoid a run-in with the tax police, I’ll admit that I get a little nervous when I see that the Treasury department […]
How to Have a Good Income to Debt Ratio Fast
A good income to debt ratio will help you tremendously in just about all aspects of your financial life. You’ll qualify for credit more easily because you’ll have a enviable credit score, and you’ll pay a lot less when you borrow money. You’ll also be a more desirable job applicant if you apply for a […]