For many investors looking for higher returns and portfolio diversification, mutual funds are ideal investments. They offer a combination of professional management, liquidity and reduced volatility that makes them excellent vehicles for both growth and income investors. However, some investors follow simpler investment strategies that do not require active portfolio management, and therefore do not […]

As most of you have heard by now, the government has decided to send you some money in the hopes that you’ll spend it and help stimulate the economy. Unfortunately, many people are already committing themselves to flat-screen TV’s and vacations in Tahiti based on myths and misinformation about the size of their tax rebates.
To […]

Educated investors often look at a number of features of mutual funds, such as sales charges, beta, alpha and other technical characteristics. But one factor that is often overlooked is how tax-efficient the fund is.
A tax-efficient investment is one that can be reasonably expected to produce favorable tax consequences. For example, a 401(k) or variable […]

If you’re getting divorced, you have many issues to contend with, not only emotionally and relationally, but logistically and financially as well. Although much of the anguish from divorce is inescapable, some of the financial pain from this process can be alleviated with proper planning and cooperation between former spouses.

Although there can be many reasons why your taxes this year could be higher than you expect, such as having to report a capital gain or taking a lump-sum retirement plan distribution, one of the major culprits of this problem can be the income you draw from social security. When social security began back in […]

Typically most Roth IRA distributions are tax-free. But there are a few exceptions to this rule, one of which can apply even after you have reached age 59 ½. While these exceptions are not very common, Roth IRA owners should be aware of them and when they apply.

Health Savings Accounts are a relatively new type of medical savings account that allows for both tax-deductible contributions and tax-free distributions as long as the money is used to pay for qualified medical expenses. Perhaps best of all, any unused funds in these accounts can eventually be withdrawn as retirement income. HSAs can therefore provide […]

You may be participating in a 401(k) or other type of employer-sponsored retirement plan. In addition to this, you may also be putting money away in a Traditional IRA. Although contributing to two retirement savings vehicles at once is commendable, you may actually be costing yourself at least part of the tax deduction you would […]

Two of the most classic phrases you hear thrown around by water-cooler tax experts are the “home-office deduction” and “writing off your equipment.” Everyone who knows nothing will insist that you can write-off just about every inch of your home, as well as your laptop, just because you return business emails from your couch.
While that […]

It happens every year at this time. I start seeing emails from small business owners asking if there is any way to “shelter their business income from taxation.” Usually, this question comes from newer business owners who are accustomed to having Federal income tax withheld from their paychecks as employees, but failed to do it […]