A Quirky 529 College Savings Plan Rule

As we know 529 college savings plans are a great way to save for college.  What you might not know is that an IRS rule limits you to just one investment change per calendar year.  This has alot of parents in a panic as they look to increase their bond allocation given the state of the market.  Seems a bit restrictive to me, what does everyone think?

Donating Money From Your IRA

Every week Kelley Greene’s Focus on Retirement Segment in the Wall Street Journal is excellent, this week is no exception.  If anyone has any money left their IRA and would like to donate it to a charity…here are some details.

http://online.wsj.com/article/SB122489075823068591.html

Basically what it says is if you are 70 1/2 or older you can donate up to $100,000 from your IRA tax free to a qualified charity.  The same does not hold for a 401(k) or 403(b).

50 Fun Stock Market Facts from Blueprint For Financial Prosperity

Fun article.  Make sure you read the comments very insightful!

http://www.bargaineering.com/articles/50-fun-facts-about-the-stock-market.html#comment-289713

Please contact Dollars & Sense Education to bring our seminars to your company or organization!

Dollars & Sense Education – Raising Your Financial IQ!
http://www.daseducation.com
nicole@daseducation.com
215-499-3834

Jim Cramer Panics? Umm…Isn’t He Just Restating The Obvious?

“Whatever you may need for the next five years, please take it out of the stock market. Right now. This week. I do not believe that you should risk those assets in the stock market.”

– Jim Cramer

With all due respect Mr. Cramer…No $h*t…It’s called a long term investment for a reason.  Any money you need in the next 5 years should be in short term savings vehicles.

Please contact Dollars & Sense Education to bring our seminars to your company or organization!

Dollars & Sense Education – Raising Your Financial IQ!
http://www.daseducation.com
nicole@daseducation.com
215-499-3834

One Of The Better Articles About “Mark to Market” I Have Read

I don’t have a strong opinion regarding mark to market accounting rules but I read a decent article in an older Economist magazine (sometimes I have to play catchup) this afternoon.  Enjoy!

Here she is:

http://www.economist.com/finance/displaystory.cfm?story_id=12274096

Please contact Dollars & Sense Education to bring our seminars to your company or organization!

Dollars & Sense Education – Raising Your Financial IQ!
http://www.daseducation.com
nicole@daseducation.com
215-499-3834

Why I Haven’t Been Writing About The Bailout

Wow, today the Dow dipped below 9,000.  These certainly are trying times for investors like you and me.  But at the end of the day what can we do about it?  I look at it this way, if this is armageddon and I’m going to hell in a handbasket, shifting my money from the market to treasuries is not going to do a heck of alot of good.  I’m screwed either way.  If there are no jobs and no economic growth what does my nest egg mean for me anyway…I’m 30 for God’s sake. 

Let’s say I let this crisis make me a more conservative investor, sticking my money in treasuries for the rest of my life.  Getting 1% over inflation isn’t going to help me much in the long run.  My savings rate is going to have to be pretty damn hefty to live for 30 years into retirement.  

I woud much rather take the market risk that our country will not grow as a capitalist economy than the inflation risk of parking my money in low yield investments and outliving it!  We are at a 39% decline right now.  We have seen this in the past and thrived.  I believe in the economy and what the future holds for our country.  I know I have naysayers, many even in my family.  But I still believe in modern portfolio theory and our economy.  Only time will tell.

 

Please contact Dollars & Sense Education to bring our seminars to your company or organization!

Dollars & Sense Education – Raising Your Financial IQ!
http://www.daseducation.com
nicole@daseducation.com
215-499-3834

There Goes My Plan To Retire Tax Free To A Tropical Island

After years of threatening to do so, Congress has passed a law that will tax the assets of those who revoke their citizenship and leave the country to avoid taxation.  The assets of the ex pat will be taxed on their way out of the country as if they had been sold.  In addition any assets gifted to a current US citizen will be taxed at the rate of 45%.  These laws apply to individuals with a net worth of more than 2 million.

Please contact Dollars & Sense Education to bring our seminars to your company or organization!

Dollars & Sense Education – Raising Your Financial IQ!
http://www.daseducation.com
nicole@daseducation.com
215-499-3834

Ladies, Make Sure You Have Enough To Take Care Of Yourself!

Allstate was running an ad awhile back that reminds us of some important facts:

The average woman spends 11 years out of the workforce taking care of family, costing her an average of $659,139 in earnings.

Wow!  Considering that women live longer and make less money anyhow, this is quite scary!

How do they suggest remedying this problem?  The following three suggestions are made:

1)  Make every earning year count in the form of increased participation in 401(k) plans.

2)  Promote Spousal IRAs.

3) Educate: Offer financial seminars for employees and spouses.

Please contact Dollars & Sense Education to bring our seminars to your company or organization!

Dollars & Sense Education – Raising Your Financial IQ!
http://www.daseducation.com
nicole@daseducation.com
215-499-3834

What Is Covered By Health Savings Accounts And What Isn’t

These items qualify:

Abortion
Acupunture
Alcoholism
Ambulance
Artificial Teeth
Bandages
Breast Reconstruction Surgery
Birth Control Pills
Contact Lenses
Crutches
Dental Treatment
Eyeglasses
Eye Surgery
Fertility Enhancement
Hearing Aids
Home Care
Hospital Services
Laboratory Fees
Long Term Care
Medical Services
Medicines
Nursing Home
Nursing Services
Optometrist
Organ Donors
Osteopath
Prosthesis
Psychiatric Care
Psychologist
Sterilization
Smoking Cessation
Surgery
Therapy
Transplants
Vasectomy
Vision Correction Surgery
Wheelchair
Wig

These items DO NOT qualify:

Babysitting, child care and nursing services for a healthy baby
Controlled Substances
Cosmetic Surgery
Dancing Lessons
Diaper Service
Electrolysis or Hair Removal
Funeral Expenses
Future Medical Care
Hair Transplant
Health Club Dues
Household Help
Illegal Operations and Procedures
Maternity Clothes
Medicines and Drugs From Other Countries
Non Prescription Drugs and Medicines
Nutritional Supplements
Personal Use Items
Swimming Lessons
Teeth Whitening
Vet Fees

Please contact Dollars & Sense Education to bring our seminars to your company or organization!

Dollars & Sense Education – Raising Your Financial IQ!
http://www.daseducation.com
nicole@daseducation.com
215-499-3834