1. What is the RMD? An RMD or Required Minimum Distribution is the amount that the IRS requires you to withdraw from your qualified retirement plan each year once you reach age 70 ½. There are certain provisions and restrictions you need to know about the RMD, so we’ll cover it in this article. The big picture idea is that the IRS wants you to start taking money from your retirement accounts so they can begin collecting tax revenue on... Read more
The U.S. Census Bureau just released the MARTS report yesterday (January 12th) showing the sales data for U.S. retail and food services. Time out. Before we get further, let’s explain what the MARTS report is and why it’s good to know about. First, the why. It’s sales data that gives us a glimpse into how the consumers are spending their money. Why is this important to know? Because consumer spending helps to create jobs. Now for the what. According to... Read more
If you’re looking to add a few great blogs to your reading list for 2012, here are a few suggestions. I follow all of these blogs and enjoy the unique spin they give to personal finance. Christian PF If you’re not following Christian PF, start as soon as you can. Actually, this is a great month to start because Bob (the founder) just launched the “Getting Started” series. Bob is a great friend of mine and one of the reason... Read more
There are quite a few articles about federal taxes, including our recent post on 2012 Tax Brackets, but not as many on state taxes. Did you know that there are some states that have no income tax? While you can’t (legally) avoid the federal income tax, you can erase the phrase ‘state income tax’ from your financial vocabulary if you live in one of these nine states that do not have state income tax. States With No Income Tax ... Read more
I know how some of you feel about credit cards and I don’t want to sound like I’m promoting them to everyone who reads this. In fact, I’ll say right up front: if you have had problems with credit cards in the past or you are trying to pay off credit cards, ignore this article. If, however, you are wise with credit and do a lot of traveling, you’ll be interested to read about how I use credit cards with... Read more
If you’re going to travel overseas anytime soon, you’ll need to make sure you have a valid passport. If you’ve never had a passport, you should be ready to complete a U.S. passport application and understand that you’ll pay a few passport fees as well. The passport process is fairly straightforward, but you’ll want to make sure you start the process as soon as possible. According to the U.S. Department of State, it can take anywhere from 4-6 weeks for... Read more
If you’re someone who waits until the last minute to file your taxes, you’ll be happy to know that the tax deadline has been extended. The IRS has announced that the tax deadline for filing your 2011 taxes has been extended to Tuesday April 17th, 2012. It’s not the first time that we’ve seen the tax deadline extended. Last year taxpayers had a few extra days because the normal tax due date of April 15th fell on a National Holiday.... Read more
One of the best ways for a self employed business owner to save for retirement is to open a SEP IRA. SEP (Simplified Employee Pension) IRAs give small business owners the flexibility they need to save for retirement without the headaches of administering a solo 401(k) plan. The SEP IRA rules and contribution limits are very easy to understand, especially if you’re familiar with the 401(k) and IRA contribution limits and rules. SEP IRA Eligibility An eligible employee must meet... Read more
The most basic concept of personal finance and economics comes down to one thing: choices. We face choices every time we think about spending, earning, saving, and investing money. The challenge of finding ways to save money is to find alternatives that cost you less, but still give you the satisfaction you were looking for in the first place. Here are 25 ways to save money by using smart and simple alternatives. 1. Get a new insurance quote. When was... Read more
Created for Betterment (read a Betterment review here.) Embed the above image on your site Created for Betterment (read a Betterment review here.) Read more
Faith and Finance
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