I closed my mortgage refinance last month. I often hear the media saying that people who signed up for an adjustable rate mortgage (ARM) didn’t know their interest rate can adjust. Well, make no more excuses. I’m going to list all the documents I signed at closing and explain what they mean. This way anybody […]
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RSU Sell To Cover Deconstructed
A breakdown of how sell-to-cover for tax withholding is done for Restricted Stock Units and how to report it on your tax return.
Mortgage Interest and Property Tax Deduction for Homeowners Who Don’t Itemize
The New York Times reported that Senate Democrats and Republicans reached a tentative deal on the new housing bill. Among the various provisions is a federal income tax deduction for property tax paid by taxpayers who don’t itemize deductions. Single taxpayers get a $500 deduction. Married taxpayers filing a joint return get $1,000. [Update: This […]
Hiring a Financial Advisor: Don’t Settle for 1% Fee
I listen to the Marketplace Money program on public radio every week via their podcast. It’s a great program. Occasionally, I disagree with the answers given. Some time ago a caller Sue asked about finding a financial advisor after she inherited $1 million. She said she’d like to get some professional help because she and […]
Uncover The Hidden Fees In Your 401(k) Plan
Marketplace Money, the personal finance program on public radio, had a segment on 401k plan fees a few weeks ago. The host Tess Vigeland interviewed pension consultant Matthew Hutcheson, who said 90% or more of all 401k plans pay 3-3.5% in fees. Here’s a quote from the transcript: Vigeland: How high do some of these […]
Fed Opens the Vault
Make it 3 for 3. Yesterday I said the Fed might come out with an emergency cut after the stock market dropped below the previous low. Well they didn’t do exactly that but they pulled out something else. They are going to open their vault and let banks borrow against the mortgage backed bonds they […]
Want to Encourage Savings? Simplify the Tax Rules
It has been reported that the savings rate in the United States is negative. I’ve heard arguments saying it isn’t really negative but I think it’s fair to say that the savings rate is very low. Everybody wants to encourage people to save, which is great. We already have a hodgepodge of tax favored programs. […]
How $2,000 Became $20 And What To Do With It
In my foolhardy days, I bought WorldCom stock when it dropped from $60 a share to $4 a share. I thought it was a “buying opportunity.” When it dropped more from $4, I thought I had only a “paper loss.” You know the rest of the story. WorldCom went bankrupt. I lost $2,000. Later, some […]
Mortgage Refinance: Closing Process Explained
My mortgage refinance has been approved by the lender. Now it’s time to pick a date for signing the papers. Is any day of the week better or worse than others? Yes, if you want to avoid paying extra interest on a large sum of money. The federal law (15 USC 1635) says if you […]
What a Recession Feels Like
I rented from Netflix the documentary Roger & Me by Michael Moore. This is the first film by Michael Moore which made his name. Whether or not you agree with Michael Moore’s liberal point of view, the film offered a good reminder of what a recession feels like. In case you haven’t seen it (the […]