Budgeting Conundrum: What Are the Benefits of a 401(k) Loan to Pay Off Debt?
Your 401(k) plan is designed to help you save for your retirement. Anytime you take money out of the account, you’re depleting your long-term savings. To discourage you from accessing the funds early, the Internal Revenue Service taxes and penalizes withdrawals before retirement age. However, if you have a short-term emergency need for funds, you may be able to avoid these costs by taking a 401(k) loan. Properly done, a 401(k) loan avoids all penalties and taxes.
Achieving Your Long-Term Financial Planning Goals With Less Risk
Achieving Your Long-Term Financial Planning Goals With Less Risk The commonly held perception of risk centers on the potential for the stock markets to crash or a bear market wiping out part of your savings toward your personal finance goals. Market professionals, on the other…
Buying a House: A Checklist
A Budgeting Checklist for Buying Your First Home When the time comes to buy your first house, there’s a lot to think about. Will you plant rose bushes or an apple tree? Should the living room have a red or blue accent wall? Do you…
What Do You Need to Buy a House?: 5 Key Requirements
5 Primary Financial Requirements for Purchasing a Home Getting a home inspection prior to closing can reveal hidden problems with the home. Owning a home gives you freedom, privacy and tax deductions for your property taxes and mortgage interest. According to Habitat for Humanity, the…
Money Management Challenge: The Risks (& Rewards) of Self-Employment
Self-employment has some real rewards. You get to be your own boss, set your own hours and control your own destiny. However, running your own business also means that you get paid when clients pay you and, frequently, that won’t be on a regular schedule.
Manage Your Finances, Master Your Life: How to Maximize Your Employment Benefits
Your employment benefits can add as much as 30 percent to the value of your salary. And it does add up: consider the value of insurance, retirement plans, other tax-deferred savings plans, employer matches, and other benefits, and you could easily find you have access to many thousands of additional dollars per year. Once you know what you have, it’s just a matter of taking advantage of it.
Budgeting Conundrum: Is It Smarter to Rent or Buy a House?
Budgeting Conundrum: Is It Smarter to Rent or Buy a House? Home ownership is often touted as the American Dream, and there certainly are plenty of benefits to owning your own home. You get a tax write-off for your property taxes and mortgage interest, and…
Adding It All Up: Determining Your Net Worth
Adding It All Up: Determining Your Net Worth Given recent economic history, it’s not surprising that people are paying close attention to their net worth. The dip and rebound in the stock market, the uncertainty over home prices and the gathering financial recovery has many…
Need Money? Personal Finance Tips When Borrowing from a Retirement Account
When you’re in a bind financially, it can be very tempting to turn to your nest egg for a quick cash infusion. After all, you’re just borrowing it and have every intention of paying it back. However, “taking a loan from a 401(k) plan is often a last resort,” according to Anika Hedstrom, MBA and Senior Financial Analyst practicing in Southern Oregon.
What/How to Teach Your Kids About Money Management
What/How to Teach Your Kids About Money Management Money management is a fundamental life skill that is often overlooked in schools and formal education. Typically, children will learn about money management either from their parents or on their own, rather than through any organized curriculum….