Interest rates are at historically low levels. This is great for the loans you have that have variable interest rates but not so great when you have savings in the bank or other investment vehicles and are trying to make interest income on those investments. You can improve your net worth by reducing your debt. Have you considered making larger loan payments against your debt? With a lower interest rate on your variable loans, more of your monthly payment is being applied to principal and you are creating more equity in that investment as that debt goes down. Perhaps those liquid funds should be used to reduce debt. What other factors should you consider? Are there any prepayment penalties associated with the debt? Are you turning a liquid asset into net worth - will you need that cash in the near future for another opportunity? With the tight credit market today, you might not be able to get that cash back by refinancing if you need to. Please contact us if you have these types of situations and have questions about your options.
Please review your health insurance coverage and the options available for you. Are you familiar with high deductible health insurance plans coupled with heath savings accounts? These can be a wonderful option for many people. Please call us to discuss how these work. We use a health savings account associated with our health insurance plan and can review the impact of this type of insurance.
Are you accessing your banking and credit card activity online? I strongly believe that frequent reviews of your banking and credit card transactions is your best defense against identity theft or other financial fraud. If you do not already have online access to your banking activity and have any questions about how this works and what to expect, please contact Bill or I to review this. In today's fast paced world, waiting until you receive your monthly bank statement to review your transactions is not providing the level of protection needed today.
Where do you keep your passwords for all your online transactions? Are they scattered around your office on scraps of paper or perhaps on sticky notes on your monitor? We have a much better solution for you. Google Roboforms and review this secure software. Please give Bill or I a call regarding this.
Kristin is starting her senior year at Ohio State University, Scott is staring his second year at the University of Akron. Two in college and the cost can seem overwhelming. Do you have children? Do you expect those children to attend college? What are you doing today to prepare for those costs? We strongly recommend a 529 college savings plan to enable you to start to save now for this expense. It is never too soon or too late to get started on this.
Both Bill and I we want our clients to ask questions of us. After all, it is YOUR money and YOUR financial future we are helping you with. The following is a selection of articles I think you will find meaningful. Please contact us with your concerns so that we know the types of issues you are having.
How Earned Income Impacts Your Social Security Benefits If you are a social security beneficiary under full retirement age (currently age 66), an earnings test determines whether your social security retirement benefits will be reduced because you earned more from a job or business than an annual exempt amount.
Required Minimum Distributions Waived for 2009 Taxpayers can be subjected to an onerous excise tax if they take less than the required minimum distribution (RMD) from their retirement plan each year.
Sales Tax Write-offs for Vehicles and Motor Homes A provision in the recent Stimulus Act provides that qualified motor vehicle taxes are deductible as either an itemized deduction or as a component of the standard deduction.
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