Rent vs. Buy: Seven Factors to Consider Before Buying a Home

June 25, 2014

Owning your own home has long been considered part of the American dream but as the housing market starts to heat up in certain areas of the country, home ownership may not be the most economical solution to housing.  A recent article in The New York Times draws attention to several factors that must be considered when evaluating the financial benefits of home ownership and provides a link to a Rent v. Buy Calculator* that potential homeowners can use to quantify the tradeoff. Here are some guidelines you can use when considering each factor: Continue reading “Rent vs. Buy: Seven Factors to Consider Before Buying a Home”

When the Wedding Bells Stop Ringing

June 18, 2014

For centuries, June has been the most popular month for weddings.  The idea of two people vowing to share the rest of their lives together always puts a smile on my face, but are these two souls that have now been joined as one fully prepared for what lies ahead?  I should think that a person that says “I do” does so with no thought of some day thinking “I don’t,” but the reality is that many of these newlyweds won’t be together in 20 years. Continue reading “When the Wedding Bells Stop Ringing”

Lessons From a Visit to Urgent Care

June 11, 2014

We all know that the cost of medical care is going up, but my colleague’s recent trip to urgent care really opened my eyes to just how much.  The good news is that she is okay, but what she learned about the current state of the healthcare industry should make us sit up straight and take notice.  Here is a brief overview of what happened: Continue reading “Lessons From a Visit to Urgent Care”

Using Retirement Plan Assets for Education

June 04, 2014

As the school year winds down, many graduating high-school seniors are looking ahead to the promise of a new day come next fall, but for many parents, that day is fraught with mixed emotions—and a handful of college bills. To help pay for college, some parents will set aside money using more traditional ways to save for college expenses. Each has its own set of pros and cons and seldom are parents able to save enough to pay for their student’s entire education. As such, many students will require student loans in order to continue their education. The result is an average student loan debt of just under $30,000. Continue reading “Using Retirement Plan Assets for Education”

Five Myths About Your 529 College Savings Plan

May 21, 2014

As the school year winds down and the invitations to high school graduations start pouring in, I can’t help but think about the day when my own little girl Rachel—who is finishing up her sophomore year—will be sending out her own invitations.  It all seems to be going by so fast but fortunately Susan and I have been preparing for that day by saving in a 529 college savings account.  For some of you moms and dads out there, you too have been using this savings vehicle to help pay for those oncoming college expenses but as Kathryn Flynn writes in a recent post called “Clearing up the confusion: Five popular 529 plan myths,” there are a number of myths floating around out there that could cause confusion when it comes time to using these accounts.  Understanding each one will help you and I when it comes time to funding our child’s higher education. Continue reading “Five Myths About Your 529 College Savings Plan”

Using Real Estate to Supplement Your Retirement Income (Part II)

May 14, 2014

Real estate can be a great asset for retirement planning. Last week, I explored a couple of ways you can supplement your retirement income using real estate, namely by owning rental property or investing in REITs.  This week, I’d like to take a look at a few other ways you can use real estate to supplement your income by tapping into the equity you may have in the home you are living in right now. Continue reading “Using Real Estate to Supplement Your Retirement Income (Part II)”

How to Use Real Estate to Supplement Your Retirement Income (Part I)

May 07, 2014

One of the most popular workshops we offer at Financial Finesse is our workshops on retirement planning. That’s probably because retirement is a financial goal common to just about anyone that works for a living. In order to enjoy a comfortable retirement, many financial experts recommend replacing 70-80% of your income in retirement, which begs the question “What are your retirement income sources?” Continue reading “How to Use Real Estate to Supplement Your Retirement Income (Part I)”

8 Tips For Saving Money at the Airport

April 30, 2014

As many of you know, I travel a lot for work.  On one of my more recent trips, I was reminded of how expensive it can be when you are not prepared.  This summer, I will be traveling with my family across country, and that means traveling through my local international airport.  If your travel plans include a visit to your nearest international airport, consider these eight helpful money-saving tips. Continue reading “8 Tips For Saving Money at the Airport”

Re-landscaping Your Way to Savings

April 23, 2014

My friend Daniel took advantage of a recent promotion sponsored by his local water department that offered homeowners $2 per square foot of grass that was removed and replaced with drought-tolerant plants and groundcover.  The promotion initially caught the attention of his wife who was tired of staring at their perpetually brown, weed-filled lawn.  After some investigation, they realized that the cost of tearing out the “lawn” and replacing it with approved groundcover was going to cost more than the $2 per square foot being offered, but when they factored in the money they would save by not having to pay a gardener ($70 a month) and by not having to use as much water on the lawn, they decided to move ahead. Continue reading “Re-landscaping Your Way to Savings”

Do You Have An Advance Directive?

April 16, 2014

As a husband and father of four children, it is important to me to make sure my family is taken care of in the event of an emergency.  I have done a few things such as create an emergency fund, draft a will, and purchase life insurance, but there are a number of things I still have left to do.  One of the more important items I still have left on my to-do list is an advance health care directive. Continue reading “Do You Have An Advance Directive?”

Junior’s Investment Income May Be Taxable

April 09, 2014

I have four children, two of which have custodial accounts. By definition, those custodial accounts belong to my children, and when they reach the age of majority—18 in most states—they technically can take that money and use it for whatever their hearts desire.  Until then, I’m the custodian of the account, and as the custodian, it is my responsibility to make sure the money is managed properly. Not only does that mean making sure the assets are invested wisely, but also making sure that any taxes associated with the account are reported accurately. Continue reading “Junior’s Investment Income May Be Taxable”

Let Uncle Sam Pay Part Of Your 2013 Taxes

April 02, 2014

A couple of weeks ago, I wrote about new tax laws that may affect higher-income households.  In the spirit of equal time, I’d like to talk about tax benefits that traditionally help those with lower incomes. Specifically, I’m talking about tax credits.  Continue reading “Let Uncle Sam Pay Part Of Your 2013 Taxes”

Simplified Rules for Calculating the Home Office Deduction

March 26, 2014

For years, the IRS has maintained a somewhat complicated method for calculating the amount of deductible expenses small business owners and work-from-home employees could claim under the Job Expenses section of Schedule A.  Starting with the 2013 tax return, the IRS now offers a simplified option for calculating this deduction.  This simplified option greatly reduces the complexity of the regular method—which requires completing a lengthy tax form (Form 8829) and making complex calculations of allocated expenses, depreciation, and carryovers of unused deductions—and is expected to save small businesses 1.6 million hours a year in paperwork and recordkeeping.  Instead, taxpayers claiming the simplified option need only complete a short worksheet.  Keep in mind that the simplified option does not change the criteria for who may claim a home office deduction—it just simplifies the calculation and recordkeeping requirements. Continue reading “Simplified Rules for Calculating the Home Office Deduction”

Start Your 2014 Tax Planning Now

March 19, 2014

As you fill out your 2013 tax return this year, you may notice a few extra lines on the 1040. That’s because the Affordable Care Act created new tax provisions for higher income households. If you were not expecting them then you may have been blindsided, and while it may be a little too late to do anything about them now, you should start thinking about reducing their impact for 2014. So if your household income is $150,000 or more, pay attention. Continue reading “Start Your 2014 Tax Planning Now”

What Obama’s Budget Proposals Could Mean For Your Retirement

March 12, 2014

Earlier this month, a colleague of mine forwarded me this article by Jeffrey Levine. In the article, he outlines some of the changes President Obama is proposing in his 2015 budget. While it is unlikely that these provisions will be enacted anytime soon, it does raise the specter of possible changes in the future so it’s important to understand the short and long term ramifications for you and your retirement plans if they ever do come to pass.  Here are some things to consider, along with my take on each proposed provision: Continue reading “What Obama’s Budget Proposals Could Mean For Your Retirement”

What’s Wrong With Pyramid Schemes?

March 05, 2014

As I boarded my flight to Chicago Sunday night, I noticed a rather large contingency of travelers that were in a strangely good mood. As each one got on the plane, they were greeted with smiles and high-fives as they walked down the aisle to find their seat. Inevitably, one of them sat next to me and over the course of a 90-minute flight, they proceeded to tell me what all the fuss was about. Continue reading “What’s Wrong With Pyramid Schemes?”

5 Bright Ideas To Save Money On Your Electricity

February 26, 2014

A few weeks ago, I was at a friend’s house when I noticed a box of CFL light bulbs on his dining room table.  I asked my friend what a box of brand-new light bulbs was doing on his table, and he told me that the box was waiting for him on his doorstep when he moved in a few weeks earlier.  Another friend of mine who was standing nearby chimed in to tell me that he had heard that the local utility company was giving away free CFL light bulbs as part of a larger effort to make North Carolina a cleaner, more energy efficient state. Continue reading “5 Bright Ideas To Save Money On Your Electricity”

How Better Internet Service Can Pay For Itself

February 12, 2014

In my last blog post, I talked about how I was able to save money by upgrading my Internet service.  It’s not usual that you can actually get better service for less money, but even if upgrading your Internet service doesn’t yield a lower monthly bill, it can still save you money.  Here’s how: Continue reading “How Better Internet Service Can Pay For Itself”

When It Comes to Better Service And/Or a Lower Price, “And” Is Better

February 05, 2014

It started last summer.  I’d be sitting on the couch streaming my favorite TV show when suddenly the video feed would stop. After a minute or two, it would start streaming again, only to be interrupted a few moments later.  This would happen on and off for several months and I started to wonder what was happening. Continue reading “When It Comes to Better Service And/Or a Lower Price, “And” Is Better”

The Benefits of Healthy Living

January 29, 2014

Is it just me or does it seem like people are trying to eat better and exercise more these days? I see more people jogging up and down my street. I’ve noticed more “healthy” snack options at the grocery store. Continue reading “The Benefits of Healthy Living”