Tehachapi's Online Community News & Entertainment Guide
Tehachapi's Online Community News & Entertainment Guide
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In just a few weeks, students will be heading off to college – and parents will be getting out their checkbooks. Without a college-bound student in your home right now, you might not be thinking much about tuition and other higher education expenses, but if you have young children, these costs may eventually be of concern – so how should you prepare for them? It's never too soon to start saving and investing. Unfortunately, many people think that they have a lot of "catching up" to do. In fac...
You are likely hearing a lot of people talk about a shifting real estate market, price reductions, higher rates, inflations, etc. All of these terms relate to what is happening economically and in the real estate market. Many experts are giving the advice that it is still a great time to buy and sell. It's true, this current climate is the perfect opportunity to create a win/win for both the buyer and the seller. The National Association of Real Estate (NAR) is still reporting many areas in the...
If you've been contributing to an IRA, you've chosen a great way to save and invest for retirement. All IRAs have potential tax benefits and a range of investment possibilities, but not all IRA providers offer the same features. So, if you decide that your current IRA provider is charging higher fees than you'd like, or perhaps doesn't offer as many investment choices as you want, then you might choose to move your IRA assets to another provider. How should you go about making this switch? Here...
Global economic growth is projected to drop from a 5.8% rate in 2021 to 3.3% in 2022, as the world grapples with repercussions of the Russia-Ukraine war and ever-changing conditions wrought by the pandemic. Growth forecasts of 3.3% for the United States and 2.4% for the euro area in 2022 (down from 5.6% and 5.2%, respectively, in 2021) reflect the prospect of supply constraints along with rising inflation and interest rates. China's growth is projected to slow to 5.1% in 2022 from 8.1% in 2021...
So far, 2022 has not been a good year for investors. In fact, we're moving into bear market territory. What should you know about bear markets? And how should you respond? To begin with, a bear market occurs when a stock market index, such as the S&P 500, falls at least 20% from its most recent high point. You might think this type of drop is rare, but that's not actually the case. Historically, bear markets have occurred every few years and are a normal feature of the investment landscape. We e...
If you didn't know before, you know now... I am a fan of "The Wizard of Oz." For many reasons, but also because I am a fan of knowing that many of those scary things ended up not being so scary. So, what does this have to do with rates, recession and inflation? Well just like lions, tigers and bears... (oh my!) they may not be as scary as they seem if you are aware of the potential impacts, prepare yourself properly and make wise decisions with your money. Let's review some actions commonly...
We all want to live long lives. We all expect to live long lives. But are we financially prepared for this longevity? Before we get to the issue of preparation, let's look at a couple of interesting findings from a 2022 survey by Age Wave and Edward Jones: The surveyed retirees said, on average, they expect to live to 89, and they said the ideal length of retirement is 29 years. When asked if they want to live to 100, nearly 70% of the respondents said "yes." The main reason for this desire for...
With more than 7,400 mutual funds to consider in the United States alone, some investors may feel overwhelmed by the thought of deciding which ones to select for their portfolios. At the same time, most mutual fund-owning households base their purchase decisions on these measures: historical performance (94%), investment objectives and risk potential (91%), and fees and expenses (90%).1 Fortunately, reading a mutual fund prospectus is a key way to learn important details about your investment...
With cryptocurrencies so much in the news, you might be wondering if you should invest in them. But "invest" may not be the right word – because, in many ways, cryptocurrencies, or "crypto" for short, are more speculation than investment. But what's really the difference between a speculator and an investor? Probably the main factor is the differing views of time. A true investor is in it for the long term, building a portfolio that, over many years, can eventually provide the financial r...
Summer is here and once again many potential sellers are watching rates rise, thinking prices are dropping and wondering if this is the right time to stay or go. Selling smart is as much about knowing what you need to do as it is what you do not. Part two is focused on exactly that. Don't sell in fear! I have seen many people over the past year panic sell. Selling because of potential regulations, housing bubble fears, forbearance ending and more. Many sales people use fear as a tactic to get...
You could spend two, or even three, decades in retirement. So, to pay for all those years, you'll probably need to take full advantage of your retirement accounts. And in 2022, you may have expanded opportunities to deduct retirement plan contributions on your tax return. Before looking at what's changed this year, let's review the key benefits of these accounts: • Traditional IRA – You typically contribute pretax (deductible) dollars to a traditional IRA, and your earnings can grow tax...
Baseball stadiums are filled with optimists. Fans start each new season with the hope that even if last year ended badly, this year could finally be the year. After all, teams rally mid-season, curses are broken, and even underdogs sometimes make it to the World Series. As Yogi Berra famously put it, "It ain't over till it's over."1 Here are a few lessons from America's pastime that might inspire you to take a fresh look at your finances. Proceed one base at a time There's nothing like seeing a...
You might enjoy owning your home – but the mortgage? Not so much. In fact, you might want to do everything you can to pay it off as quickly as possible. But is that always the best strategy? In one sense, your mortgage can be considered a "good" debt because it's backed by a tangible asset – your home – that has real value and may even gain further value. Furthermore, by historical standards, you're probably paying a pretty low interest rate on your mortgage, so you're getting a lot of benef...
Life doesn't always go as planned. For example, you might think you'll retire at 65 or later, when you'll be eligible for Medicare. But if you retire before then, how will you pay for your health care? Without insurance, you risk incurring thousands of dollars of expenses if you are injured or become seriously ill. And if you must pay for these costs out of pocket, you might have to dip into your IRA, 401(k) or other retirement accounts earlier than you had planned – which could result in a l...
It is widely recognized that financial literacy impacts a person's overall economic success. In fact, studies have shown that individuals who are exposed to economic and financial education at an early age are more likely to exhibit positive financial behaviors when they are older (e.g., maintaining high credit scores, accumulating wealth). As a result, many states are requiring high school students to take a course in either economics or personal finance before they graduate.1 Whether you are...
To achieve most goals in life, you need some type of strategy. And that's certainly true for your financial goals. Since you likely have multiple financial goals, you may need to pursue several different strategies – but they all should follow a similar process. What does this process entail? Here are the basic steps: • Fully define each goal. Like most people, you probably have a goal of someday enjoying a comfortable retirement. But have you defined what "comfortable retirement" means to you?...
Are you one of the many homeowners trying to decide if this is a smart time to sell a property you own? If so, you are not alone. Many homeowners across the country are having the same debate over whether this is the right time to cash in and buy something else, or just cash in. Here are four things you need to consider to sell smart!... (hint: There will be 4 more in my next article). What do you qualify for? Honestly, the MOST important step one. Meet with a Mortgage Professional and find out...
Trusts have been used as an integral part of sophisticated tax and financial arrangements for centuries. Exactly how they are used depends on a person's particular goals, current tax rules and other factors. Hopefully this article helps you to understand some ways a trust may help you. A trust is an arrangement in which title to property is held by someone for another's benefit. The trust can be established to benefit the person creating it (the grantor), or to benefit another (the beneficiary)....
We all hope for long, healthy lives. But there's a serious "side effect" of longevity – the possibility of outliving our money. How can you help prevent this? It's useful to know the seriousness of the threat. Consider this: About 41% of all U.S. homes in which the head of the household is between 35 and 64 are projected to run short of money in retirement, according to the Employee Benefit Research Institute. While this statistic indicates a cause for concern, it certainly doesn't mean that y...
Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2022. Estate, Gift, and Generation-Skipping Transfer Tax • The annual gift tax exclusion (and annual generation-skipping transfer tax exclusion) for 2022 is $16,000, up from $15,000 in 2021. • The gift and estate tax basic exclusion amount (and gen...
Extensions Whether you file a tax return by the April due date, or obtain an extension to file, filing an annual tax return is mandatory if your income is above a certain level, which will vary depending upon your filing status. Reasons to file an extension include waiting for an important document such as a late 1099 or K-1 form showing income which needs to be reported, you may be overseas and unable to file by the April deadline, or you may just be a habitual procrastinator. Whatever the...
These are unsettling times for investors. Even before the geopolitical crisis involving Russia and Ukraine, the financial markets were facing headwinds due to higher inflation, the anticipation of rising interest rates and the continuing effects of the pandemic. As an individual investor, should you take some type of action? It’s helpful to put today’s headlines in perspective. While the Federal Reserve probably will raise interest rates, they are doing so from a point where these rates wer...
Most people who need a mortgage loan would prefer to get the lowest and best rate. All too often getting the lowest rate comes at the highest costs. This is referred to as a discounted rate or paying points. When a borrower pays a point, they are paying one percent of the loan amount in a fee to reduce the rate. Other fees some lenders charge to quote a lower rate may be titled origination fees, document fees, processing fees or administrative fees. These fees determine what the discount is...
Tax-related identity theft occurs when someone uses a taxpayer’s stolen Social Security number and name to file a tax return to claim a fraudulent refund. Often the taxpayer doesn’t this has occurred until they try to file a legitimate tax return and have their return rejected with an error code stating that a return has already been filed using that name and Social Security number. This article discusses the steps to take when a taxpayer’s identity has been stolen, along with helpful sugge...
This year's tax-filing deadline of April 18 is not that far off, but you still have time to make some moves that could favorably affect your tax returns. So, you may want to consider making some tax-smart contributions. You have until the April 18 filing deadline to contribute to an IRA, or to open one for the 2021 tax year. When you invest in a traditional IRA, your earnings can grow on a tax-deferred basis and your contributions may be tax deductible, depending on your income level. And as a r...
