3 Big Money Mistakes American Workers Are Making

Money mistakes can add up

We all make mistakes with our finances. I’m not talking about making hard decisions and choosing which bills to pay and which to leave for another month. These are simple financial choices and the biggest money mistakes American workers are making with their paychecks. The economy is still struggling, and far too many employees are turning away free money and lending other money from their hard-earned paychecks to the government free of charge. Three Biggest Money Mistakes… 1. Not Capturing Their Employer Match According to a recent study conducted by the Financial Industries Regulatory Authority (FINRA), almost 30% of American workers do not contribute enough to their 401k retirement plans in order to capture their employer’s matching contribution. Typically, many employers … Read more

Top 3 Christmas Gifts to Give Your Children that Keep on Giving

Christmas Gifts For Children That Keep On Giving

Does your child need another toy this Christmas? If your children are anything like mine, they have far too many things in their room and in their lives. But, what are some Christmas gifts for children that last long after the holiday? We are a consumer nation, and that love of stuff bleeds over into our children’s lives as well. So, what type of present do you get for a child for the holidays that seems to have everything? Christmas Gifts that Keep On Giving It doesn’t help that times are tight and often Santa is broke this year. But, here are a few examples of Christmas gifts for children that will keep on giving to your kids long after the … Read more

Top 3 Ways Not To Let Too Many Investing Choices Overwhelm You

Do Not Let Too Many Choices for Investments Overwhelm You

Did you know that there are thousands actively traded mutual funds in existence? Investment companies are adding more every week too. Between stocks, bonds, actively traded mutual funds, index funds, ETFs, Roth IRA, and the like, investors have more choices than ever. Have you ever become overwhelmed with too many choices? Has it made you hesitant to start investing? It shouldn’t hold you up investing. Three Ways Not To Let Too Many Choices For Investing Overwhelm You Mirror The Stock Market Researchers have conducted several in-depth studies over the past few years that have shown that stock pickers cannot consistently, year in and year out beat the overall stock market rate of return. So, if you can’t beat them, you might … Read more

Reader’s Question: What Is The Savers Tax Credit?

Here is the next installment in our the Reader’s Questions Series which highlight questions emailed to me by you, the readers of Money Q&A. Be sure to find out at the end of this article how you can receive a free copy of Dave Ramsey’s book, The Total Money Makeover if your money question is chosen to be featured on a future week’s blog post. If you’re not familiar with Dave Ramsey’s book, you should run right out and get it. It is one of my top ten best personal finance books that everyone should read. Now….on to our reader’s question.

What is the tax credit for investing in a Roth? And, how do I claim my Roth contributions on my taxes especially if I have already filed my taxes for this year?

What Is The Tax Credit For Investing In A Roth IRA?

Tax Credit - Savers Credit It is called the Savers Credit. It used to be called the Retirement Savings Contributions Credit. Tax credits provide refundable credits that offset your taxable income. Tax credits are different than tax deductions. Tax deductions reduce your taxable income.

Tax credits reduce your taxes typically in a dollar for dollar fashion and can be very specific on who qualifies, what events trigger it and can even be a one-year event that benefits people. The beauty of tax credits is that you do not have to have a taxable income in most cases to earn the benefits or the tax credit also simply just add to your income tax refund.

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Reader’s Question: What To Invest In After The Company Match

What To Invest In After The Company Match
What To Invest In After The Company Match

Your 401k retirement plan is not an emergency fundHere is the next installment in our the Reader’s Questions Series which highlight questions emailed to me by you, the readers of Money Q&A. Be sure to find out at the end of this article how you can receive a free copy of Dave Ramsey’s book, The Total Money Makeover if your money question is chosen to be featured on the blog.

If you’re not familiar with Dave Ramsey’s book, you should run right out and get it. It is one  of my top ten best personal finance books that everyone should read. Now….on to our reader’s question. I recently received an email from a reader, Ralph, who ask…

I’ve been investing more than my company’s match. So for instance if my401k company match is 5% and I invest 10%, is it better to continue or just invest the 5% that’ll get the match and invest the rest in a Roth IRA?

This is a great question that a lot of investors have to tackle when they are deciding where to put those finite investing dollars to work. You often can’t be everywhere at once.

So, the real question is where to start and where to go after you get going with your retirement investing. There are several things that you should consider in order to maximize your savings and minimize your tax liability as well.

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