Money Questions and Answers

Early Retirement Withdrawals – How and When to Conduct a Withdraw

IRS data has shown that Americans lose approximately $5.7 billion per year on early withdrawal penalties when they take out funds from their 401k Retirement Plans or IRAs before meeting the minimum age requirements (59 ½). In 2020, Section 2202 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created an exemption for early distributions related to the coronavirus pandemic in which individuals could withdraw up to $100,000 from their retirement accounts without being subject to the 10% early withdrawal penalty (though they would have to count the distributions as part of their income for tax-reporting purposes for the next 3 years). To qualify for the no-penalty early withdrawal – which was extended into 2021 thanks to the … Read more

Taxes Working From Home – 3 Important Considerations During COVID-19

by Hank Coleman

As millions of taxpayers prepare to file their 2020 taxes, a question that many telecommuting employees, independent contractors, and freelancers are wondering is: which of my remote work expenses can I write off on my taxes, and how much? Here’s what you need to know about taxes working from home. Taxes Working From Home The answer varies widely, depending on your employment classification, expenses incurred during the pandemic, whether your employer reimbursed you for remote work-related expenses, and which state you live in. To help you understand what your tax situation might look like this year, here are three of the most important things to know before filing your 2020 taxes: Employees vs. Independent Contractors The Tax Cuts and Jobs … Read more

Top 5 Simple Things You Can Do When Your Car Insurance Rates Rise

by Hank Coleman

Tips to Use When You Can't Afford Car Insurance

The National Association of Insurance Commissioners found that the average American’s car insurance premiums cost around $1,134 annually (or $95 per month), though this figure varies widely depending on where you live, how old you are, your driving history, what car you drive, how many miles you typically drive, and even your credit score. If you get a traffic ticket or minor fender bender involving insurance, you may see your rates go up next time your bill is due. Fortunately, you can switch to another provider if the new policy costs exorbitantly more, though you have other options available if most insurance providers quote you around the same price. Rather than shrugging off the cost of the premium hike, here … Read more

Jumbo Mortgage 101 – What You Need to Know: Definition, Rates, and Limits

by Hank Coleman

What happens if you find your dream home, but you’ll need to borrow more than half a million dollars to finance it? Even after the 2007/2008-era housing market crash, it’s still possible to access jumbo mortgage loans for pricier properties. However, you’ll likely face more restrictive borrowing requirements than you would with a conventional mortgage loan. Jumbo Mortgage – What You Need to Know While jumbo mortgages can be riskier for lenders, don’t let the name and tighter lending requirements deter you from a potentially favorable loan to finance your next property. What is a Jumbo Mortgage? Simply put, a jumbo loan is a type of mortgage financing that exceeds the Federal Housing Finance Agency’s (FHFA) maximum conforming loan limits, … Read more

Top 11 Reasons You Need to Create a Living Trust

by Hank Coleman

A living trust, or inter vivos trust, is a trust you set up while alive. It places your assets into a trust to be managed by a third party for your benefit. At your death, the assets are distributed to a chosen beneficiary. In many states, the assets are transferred to the living trust beneficiary without going through probate at death. Living trusts can assist limit estate investigation by limiting taxable value and avoiding property loss due to a lack of knowledge about it being a part of a living trust. They allow for simple modifications if necessary, and they offer more control over who receives what when someone dies without a will. Avoid Probate in Multiple Jurisdictions Avoid Probate Entirely Avoid … Read more

Top 4 Simple Ways How to Better Manage Your Medical Debts

by Hank Coleman

A survey of 20 million Credit Karma members conducted in summer 2020 found over $45 billion of medical debt in collections. Previous studies on medical debt have found that hospital bills are typically the #1 cause of personal bankruptcy in the U.S. In the wake of a global pandemic that hit Americans particularly hard – in terms of job losses and skyrocketing hospital bills – the issue of medical debts will likely become more prominent in public conversations in the years to come. How to Better Manage Your Medical Debts If you’ve received an astonishingly expensive medical bill before or you’re currently agonizing over how to repay outstanding medical debts, there are some strategies you can try without having to … Read more