When an investor invests in value stock funds and bonds in both a tax deferred account and a taxable account, there are basically two choices: (A) Put taxable bonds in the tax deferred account and put value stock funds in the taxable account; OR (B) Put value stock funds in the tax deferred account and […]
Latest Blog Posts
Cap ATM Fees at 50 Cents
Wall Street Journal reported that some Senators proposed to cap the ATM fees at 50 cents in an amendment to the financial reform legislation. The financial reform bill being considered in the Senate is S. 3217 Restoring American Financial Stability Act of 2010. The amendment that the newspaper referred to is S.Amdt. 3812, sponsored by […]
1099 Filing Requirement in Health Care Reform Law
I read on FatWallet that a hidden gem in the new health care reform law will require a business to issue a 1099 Form to all vendors starting in 2012 if the business purchases $600 or more in goods or services in a year from that vendor. Currently a business is only required to issue […]
Why a Bank Makes $500 a Year Off an Average Customer
Banks are not popular these days. Mike Konczal, a fellow with the Roosevelt Institute, wrote What are you worth to your bank? in The Washington Post a few weeks ago. He estimated that a bank makes about $500 a year off an average retail customer. That story also made its way to NPR’s Planet Money […]
A Case Study On An Index Linked CD
An index linked CD, aka market linked CD or equity linked CD, is a bank CD with an interest crediting formula tied to a market index. The main attraction of an index linked CD is that the value of the CD can go up with the market index but it can’t go down. The principal […]
Taxes Going Up, Reset Cost Basis?
Reader Kevin asked: “I have several mutual funds with large unrealized capital gains. I expect tax rates will go up in the future. Does it make sense to sell them now while the capital gains tax rate is still low, repurchase them immediately after, and reset my cost basis?” The answer, as usual, is “it […]
The Best Tax Book
I can tell it’s tax time. Most of the questions posted to my old posts are about taxes. I’m not a CPA; I write about taxes only to the extent they affect me. The best way to get tax questions answered is of course asking a real CPA. I realize not everybody can afford a […]
Why Do People Buy Snake Oil?
Reader Ace commented in a previous post: I’m afraid that we have to live with the fact that people have been buying snake oil for centuries, and will certainly continue to do so. That got me thinking. Why do people buy snake oil? I can understand why people sell snake oil but why do people […]
Flexibility and Retirement Planning
This is a guest post by Mike Piper. Imagine this scenario: An investor (we’ll call her Susan) retires with a $700,000 portfolio. She plans to withdraw $28,000 in the first year of retirement and adjust that amount upward each year in keeping with inflation. In other words, Susan is using a 4% withdrawal rate–typically considered […]
Uninsured Motorist Coverage Is Not Expensive
A recent New York Times’ Your Money podcast had an interview with reporter Paul Sullivan about reviewing one’s insurance coverage. I was surprised to hear him saying uninsured motorist coverage in auto insurance is important but it’s expensive. I had to rewind and make sure I heard it right because that is not my experience. […]