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. […]
30 vs. 15-Year Mortgage. Which Is Best for First-Time Homebuyers?
If you are getting ready to buy a home, you have to consider a 30 vs. 15-year mortgage. (For now, we’ll exclude the Balloon Payment Mortgage and just compare these two.) But which are the best loans for first-time homebuyers? The following is a guest post by Doug Warshauer. He is the founder of Kessler […]
The Advantages of a Small Business LLC
If you are in business for yourself, do it as a small business LLC. Disclaimer: I’m not an attorney, so don’t make the mistake of taking the following as legal advice. It’s really a smart idea for you to seek competent legal and tax advice for your particular situation before starting your company. There are […]
How Do I Know How Much I Can Afford for a House?
How much can I afford for a house ? That’s a question I hear often. Last week I answered the question, “Is now the best time to buy a house?” OK…some of you agreed with me and some didn’t. For those of you who refuse to keep your powder dry and want to buy now, […]