Mid-Life Financial Strategies:

Between age 45-55, employees are usually earning the most of any point in their lives. However, despite the feeling of monetary security, it is crucial to have solid mid-life financial strategies. Expenses such as children’s college bills and funding retirement can loom large on the horizon, and it is important to make the most of these wealth-building years.

One of the best things that you can do to ensure financial security is to organize and diversify your portfolio. It is important to have a variety of stocks, bonds, equities or other securities. These monies should vary in risk, time horizons and return on investment. You should also keep your portfolio fluid, retaining the ability to rebalance it if one investment becomes too heavily weighted.

Another significant consideration is taxes. At this moment, you are likely in the highest tax bracket you will ever be classified in. Because of this, you should … Read More

Your College Fund Should Include a Roth IRA:

As we approach “back to school” season, there are a plethora of ways to fund a student’s college journey. Financial aid, grants, scholarships, subsidized loans, 529 plans and numerous other options exist. However, few people ever consider paying for school with a Roth IRA account. Though IRA’s are specifically designed to be retirement nest eggs, they have several benefits which make them very useful for paying education expenses.

First, unlike 529 plans, Roth accounts are not reported as assets on the FAFSA (Free Application for Federal Student Aid) form. By increasing a family’s net assets, savings in some college plans can actually count against the money a student receives for financial aid. By putting these savings in an IRA, it is possible to reduce a family’s total assets and give a student more of a chance to receive federal aid.

Second, funds that are put into a Roth IRA are flexible. … Read More

Tax Returns: Self-Prepared or Professionally Completed?

With the numerous tax preparation software products currently available, is it truly beneficial to hire a CPA or professional tax preparer to complete your taxes when you could do them yourself?

Unfortunately, there is no definitive answer to this question. Instead, you should examine your personal situation and needs. If you are motivated, capable and have plenty of time, self preparation of your taxes may be the way to go. Taxpayers who file a simple 1040 with few credits or deductions usually find it relatively easy to interpret the forms.

Conversely, taxpayers with intricate returns may be overwhelmed by constantly changing tax laws and complicated deductions. Complex returns usually involve items such as rental real estate, many investments or numerous Schedule K-1s. The calculations surrounding earned income credits and the new investment tax (Form 8960) have also served to make self-preparation more difficult.

As a general rule, if you are not … Read More