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 […]

It appears that the new democratically controlled congress is back to its old self. The propensity is for democrats to raise taxes. In the past, the idea is to create a surplus for a rainy day. But lately both houses now days tend to spend more money than ever before. It would be good for members of congress to enroll in the John Commuta. Last week, House Democrats passed a budget blueprint that would wipe out existing tax cuts while mostly ignoring the rising costs of the alternative minimum tax. […]

The recent boom in housing prices has put many retirees in a great position to cash in on their home equity after leaving the working world behind. It may also be prompting people still planning their retirements to expect that their “home sweet homes” will turn out to be a sweet retirement investment. That may not be such a sure thing. As a recent Fidelity Research Institute Report points out, the historical record shows that relying on your home to do more than house you in retirement can be risky. […]