Paying for private schools is a sacrifice for parents who choose the private school route. Some parents are able to find the money needed for tuition within in their current budget. Most simply figure it out by hanging on to cars longer, taking modest vacations or trimming extras from the family budget. Yet one in ten children in the US attend private K-12 schools each year.
Most teenagers don't spend their time worrying over mortgages, stocks or their 401(k) plans, but they are at an age when smaller financial responsibilities start creeping into their lives. Many teenagers earn allowances and begin working part-time jobs and they need to make decisions about what to do with their money.
In my financial planning discussions a question that universally comes up with clients (young and old) is should they pay more on their mortgage each month or take the extra money and invest it. The answer is not always straightforward and there is no rule of thumb on how to approach this question.
As year end approaches here are a few suggestions which could help you financially before New Years.
1. Simple Things To Reduce Your Taxes
Discussing financial matters with your parents is at best awkward if not completely uncomfortable. It is not an easy conservation, but not having a financial talk with your parents as they move towards retirement can lead to potential issues for you and other family members down the road. It is important to be prepared for this discussion.
Investors naturally focus on returns first for their retirement and investments accounts with risk being an afterthought until there is a stock market sell-off. Risk and return are paired together like peanut butter and jelly. They complement each other but too much of one or the other can make for a bad outcome. Here is what you need to know about your risk tolerance.
The IRS has recently announced changes to retirement plan contribution limits for 2015. There is not an across the board increase for all plans but below are some of the highlights.
Increased 401k contribution limits
The maximum amount employees can contribute to their 401k, 403b, 457 plans and government Thrift Savings Plan has increased to $18,000 starting next year. This is an increase of $500 from the $17,500 limit in 2014.
Receiving a financial windfall from an inheritance or winning the lottery can be a blessing or a curse. The stories of lottery winners or friends who have blown their lump sum in short order can make them wish they never received the money to start. It does provide an opportunity to set yourself on the path to financial independence if you set a plan in motion.
With less than three months left in this year it is an ideal time to review your 401k account. We sometimes can take for granted that our 401k's essentially run themselves once we set up our contributions and select our investments.
Student loans are the fastest growing category of debt for consumers. Many recent and not so recent college graduates want to shed this debt as soon as possible after graduation.