If in 2010 you’re under 50, your maximum contribution to a traditional IRA or ROTH can be the smaller of $5,000 ($6,000 in 2011) or the amount of your taxable compensation. This limit can be split between a traditional and Roth IRA. The maximum contribution may be reduced depending upon your modified adjusted gross income (AGI). If you are over 50, you may add $1,000 to these … [Read more...]
Financial Aid for Your College Kid
Will your student need financial aid? Just ask your target school for their typical student expense package and the school’s scholarship application process. A good first step is the FAFSA website (www.fafsa.gov) to complete the “Free Application for Federal Student Aid.” You’ll need last year's 1040 and be prepared to list assets and liabilities similar to a mortgage … [Read more...]
College Student Tips on Savings
Record what you spend. It isn’t a time waster but the basis of a budget and helps you identify needed adjustments. Your budget means nothing without accurate accounting. Don't be suckered. Spending $300 on a $400 coat doesn’t save $100 – it costs you. If you doubt it, put the money you've "saved" in your bank. DO shop price. When shopping, don't ignore coupons. Many … [Read more...]
Late Life Parents Explain Finances to Children
Tomorrow they’ll understand challenges in checkbook balancing, vacation savings and donating to Santa. They will if you teach them basic economics today. Help them see how spending habits impact savings and their future. Our friends seem to fall in two camps: In one, parents set for life and don’t focus on financial planning or retirement. In the other, parents are … [Read more...]
Why Don’t You Have A Roth?
Talking with Lisa yesterday I was amazed to learn that neither she, nor her husband, nor any of the other seven families in our child’s play group have opened a Roth account. You too? Even A Caveman... Did you know investment gains within a Roth are tax free after age 59 1/2? Opening a Roth is as simple as opening a bank account. A Roth should really be the first … [Read more...]