Category - Budgeting

1
How to Pay Off Student Loans While Building Wealth
2
Ten Principles for Teaching Children about Money
3
Nine Unfortunate Facts of Health Savings Accounts
4
Qualified Charitable Distributions (QCDs) from IRAs
5
Why You Should Give Appreciated Stock Instead of Cash

How to Pay Off Student Loans While Building Wealth

The average college student graduates with almost $35,000 in student loans. While this is a daunting sum, it is still possible to build wealth even while paying off student debt. But earning the degree and paying for the degree require two different kinds of smarts. In fact, some students may be better off not taking their parents’ advice on how to get out of debt. Unlike most types of debt, student loans are usually best when paid as slowly as possible.

Almost all debt is bad debt. But, there are two important exceptions to this rule: home mortgages and …

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Ten Principles for Teaching Children about Money

Here are ten principles for teaching children about money:

1. Talk about money.

When money is involved, you have a chance to teach your children the values and analysis behind your actions. Money should not be your only topic of discussion, but talking about it will communicate your wisdom and values to your children. Every purchase, investment, or donation can be a time to teach your children something about your values.

2. Talk openly.

Parents make a mistake when they keep information from their children. Children learn through experience. For example, the experience of what their family earns and what …

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Nine Unfortunate Facts of Health Savings Accounts

In 2008, one out of every ten patients consumed 63.6% of total health care expenditures. The other nine would benefit from a Health Savings Accounts (HSA). An HSA is one of many accounts used in comprehensive wealth management for tax optimization and planning.

An HSA is a tax-free savings account both for contributions and withdrawals, but the money can only be used for qualified health-care-related expenses. Examples of qualified expenses are numerous and include dental treatment, eyeglasses, contact lens, out-of-pocket expenses, and prescription medicine. Like any other bank account, HSAs come complete with debit cards and/or checks.

To qualify …

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Qualified Charitable Distributions (QCDs) from IRAs

In December 2015, Congress passed a law allowing you to give up to $100,000 to charity directly from your individual retirement account (IRA) when you are over 70 1/2 years old without counting the distribution as taxable income. This type of charitable gift is called a Qualified Charitable Distribution (QCD).

Normally, when you take money out of your IRA it is a taxable event. The withdrawal adds to your taxable income and inflates your adjusted gross income (AGI). Then, if you give the same amount to charity, the charitable gift reduces your taxable income by the amount of the gift …

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Why You Should Give Appreciated Stock Instead of Cash

We have just wrapped up the busiest time of the year for charitable giving. Since January is when most people sit down to revisit their budget, this is an excellent time to review your charitable giving strategy.

Most people give to charity by writing a check. This is an easy way of supporting an organization – it only takes a moment to write a check and every charity will have a bank account into which they can deposit checks.

However, giving appreciated stock from a brokerage account to a charity is even more efficient in terms of tax savings. This …

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