By most economic measures, 2006 was a great year. Despite rising interest rates, high oil prices and the sharpest housing downturn in 15 years, inflation was low, productivity rose steadily, corporate profits reached a 40-year high, the stock market soared and the unemployment rate dropped to 4.6 percent — the lowest level in more than five years. Strong hiring in service businesses like education, health care, finance, travel and entertainment more than offset big job losses in the auto and housing sectors. But in the midst of this booming economy, […]

Many people filed their tax returns at the last minute. This should not be of much surprise as it is typical. Taxes can most certainly be an uncomfortable experience. This is especially true when you discover that Uncle Sam wants more than what you have paid. It can be a shocking experience. What is frustrating is that the tax code keeps getting bigger and bigger. The code is now more than sixty thousand pages long. What to do? Call your congressmen and demand change! What happens if you have a […]

One of the things that I notice that seems to be a common theme among my students is that much of their financial struggle has been a result of indiscriminate giving to children. The story is much the same. Little Johnny and Susie want something that their friends have. Life cannot possibly go on with out it. All their friends have one, and they do not want to look square or not be hip. So, inevitably, mom and dad capitulate and give into their children’s demands. What this behavior does […]

Many of my self employed clients are facing the challenge of increased healthcare costs and being able to pay for health insurance. One of the ways to counter this problem is through the HSA or Health Savings Account. These accounts were established in 2003 under the Medicare act. They are tax-free savings accounts that can be used to pay for medical expenses incurred by the account owner, or immediate family members. HSA’s can be set up by any one who is already covered by what the IRS calls a “High […]