When you say goodbye to an old employer don’t forget about the retirement account that you’ve been funding. I’ll tell you who owns the money in your workplace retirement plan—like a 401(k), 403(b), or 457—and give you 5 options for dealing with the account after you leave the job. The Thrift Savings Plan is very [...]
Is Closing a Credit Card Bad for Your Credit Score?
Can closing your credit cards affect your credit score? Debbie P. wants to know: I had a rewards credit card with one of the major airlines for less than a year. However, I just closed it due to the $85 annual fee and a change in the rules about checking luggage. Will canceling the credit [...]
How Long to Keep Tax Returns and Financial Records
Though we’re months away from tax season, it’s a great time to start thinking about how to organize your financial records. What makes tax time so stressful for many people is the fact that they have to do a lot of record keeping in a short amount of time. Instead of procrastinating, get a head [...]
What You Should Know About Debt Forgiveness
If you can’t pay your mortgage or credit card debt, you’ve probably wondered what happens if a lender cancels or forgives your debt. It’s important to understand that if you owe a debt that is officially cancelled or forgiven, it may be taxable. What Forgiven Debt Is Taxable? In general, if you borrow money from [...]
8 Free Ways to Stay Safe from Identity Theft
As our financial lives become increasingly digital, we have the freedom to manage money anywhere there’s an Internet connection. Digital money management allows you to get the job done in much less time and to track your cash flow and budget in clever new ways. But making the leap from paper to cyberspace can be [...]
How to Find the Best Financial Advisor
After being do-it-yourself investors for over 40 years, my recently-retired parents have decided they’re ready to seek professional help. Their conservative investing style has served them well (especially over the last few years), but they don’t like the idea of having to settle for pitifully low rates of return. They want to keep their money [...]
What Happens If You Contribute Too Much to an IRA?
An Individual Retirement Arrangement, or IRA, is one of my favorite vehicles to save for retirement because it offers a wide variety of investment choices and lots of tax savings. But when you don’t follow the rules, an IRA comes with hefty penalties. A common mistake is contributing too much to an IRA. What Happens [...]
What To Do with Your Tax Refund
If you’re expecting a tax refund, you obviously want to get it as quickly as possible. That way, you can put it to work for you sooner rather than later. The fastest and safest way to get your tax refund is to submit your return online, using e-file. There are three ways to file your [...]
Should You Hire a Tax Pro?
One of the most common questions I hear this time of year is should I hire a tax professional or do my taxes myself? Preparing your own tax return can be a time-consuming and hair-pulling experience. This is why so many people turn to the tax professionals, including me. But a good tax accountant can [...]