Tax Deductions for 401K Retirement Accounts Explained

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A common myth about retirement planning is that 401k accounts are always superior to IRAs. On its face, this myth appears true. You can contribute significantly more to a 401k each year than an IRA. You can contribute $18,500 to your 401k, versus $5,500 to your IRA for workers under 50 years old. That contribution limit rises to $24,500 for your 401k versus $6,500 for your IRA for workers ages 50 and above. 401k contributions lower your tax burden year-after-year. Some employers even offer matching contributions of up to 3-6% for 401k accounts. However, the math behind the 401k versus IRA debate is much more complicated, as recent tax reform efforts might suggest. Investing in both your 401k and a … Read more

How to Save for College While Your Kid is in High School

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If you’re wondering whether there is still adequate time to invest in a college savings fund for your kid(s), you should go ahead and make the leap anyway. You don’t want to rely just on student loans to fund your education or even the best private student loans. You can invest with a robo-advisor or go through a traditional college savings plan broker, depending on your family’s college savings goals. How to Save for College While Your Kid is in High School Start Investing in a 529 College Savings Plan One of the most important things a parent can do while saving up for their kids’ college education is starting a 529 college savings plan. This type of investment account does … Read more

Why Now Is the Time to Start Saving for Next Christmas

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Christmas Gifts For Children That Keep On Giving

Are you still reeling from your credit card bill after buying Christmas presents? You’re not alone. Many Americans continue to put holiday spending on credit cards despite the warning signs of building consumer debt. But, you need to be saving for Christmas again already! According to the National Retail Federation, holiday retail sales increased 3.8% to $601.8 billion. More than $42 billion was spent online, a 10% increase in last year. We give generously to our friends and family members each holiday season. That’s fine until you reach for your credit cards to give the gifts and spend months paying the balances off. Far too many people give from their heart even when their wallet can’t afford it. Don’t make … Read more

Understanding the Difference Between Prequalification and Preapproval

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Understanding Prequalification and Preapproval for Mortgages

People can confuse prequalification vs. preapproval for mortgages when they are applying for a loan. However, there are noted differences. For example, to become prequalified, you must give a loan officer income and debt information to determine the loan amount you can manage. Preapproval, on the other hand, requires more information gathering and checking on the part of the lender. In other words, the lender must compile your credit report data as well as determine your debt to income ratio. Preapproval makes it easier for you to shop for real estate as you do not waste your time looking at homes you couldn’t possibly afford. Not only is your credit history important when you are becoming preapproved so is the amount … Read more

BusyKid Smartphone App Review – Tracking Chores and Teaching Kids About Money

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A lot of young adults don’t understand how to save or invest money nowadays, and financial literacy rates continue to decline year after year. This is evidenced by the student loan debt crisis and stories of college students racking up tons of debt (student loans, credit cards, payday loans, etc.) while working minimum wage jobs. If you’re planning on having kids or you already have kids in your family, how do you plan to teach your kids about money? Of all the mistakes young parents can make, not teaching your kids how to manage money from an early age is one of the most concerning because of this widespread lack of personal financial literacy among high school and college students … Read more

Everything You Wanted to Know About FHA Loans

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Millennials and Home Ownership - Do Millennials Need to Buy Homes?

The cost of housing is skyrocketing across the U.S., particularly for renters seeking affordable housing. While there are many benefits to renting a home, you don’t have to pay for repairs or property maintenance. Some utilities might be covered in your monthly rent, the freedom to move. But, many people still aspire to the American Dream of owning a home. But if housing prices continue to rise as mortgage lenders are still hesitant about lending in a post-recession economy, how can you possibly manage to save up the massive, 20% down payment required for most mortgage loans? Thanks to the U.S. Department of Housing and Urban Development’s FHA loan program, you might not need to save up for a huge … Read more