MoneyMommy

I recently had someone tell me that they couldn’t make as much money in their IRA or 401K as they could if they just left their investment dollars in a regular taxable account. Huh? Typical investment places include bank accounts, stocks, bonds, mutual funds, ETF’s. Money saved and invested in these places can be your taxable funds, as well as IRA’s and
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We have lost the ability to be penny pinchers. Afraid to be labeled a tight wad, a miser, or a scrooge, we spend our lives “keeping up with Joneses” and sacrifice our own financial security to the allure of having it all, all the time. You can not build financial security if you spend beyond
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Win the lottery! Win a new life! The allure of gaining a new life by simply plunking a dollar on the table is mind boggling.  Just one dollar for a lottery ticket. Anyone can afford that. Why wouldn’t you? I met Benny 3 years ago.  He was one of the lucky ones. Benny won a million
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Medical Flexible Spending Accounts (FSA’s) are a great way to save money on your out of pocket medical expenses. By budgeting your expected expenses for the coming year and using your employer sponsored FSA plan, you can literally save hundreds of dollars in taxes. It is important to remember that medical expenses must be within
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The concept of Flexible Spending Accounts (FSA’s) is so simple that people think there must be a catch.  There really isn’t. You budget what your expected annual out-of-pocket medical expenses will be.  Then, you request that amount of money be allocated to your FSA account.  Your salary will be reduced by that amount, so no income
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Debt. Definitely a four-letter word.  And one to be avoided at all costs.  But no, not really.  Debt is simply another tool in your financial tool box. When you go into debt, you have borrowed money with the intention of paying it back.  (Otherwise, it is simply stealing.)  Credit is a form of debt where you
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I’ve given a huge rant on why I don’t think you should use a 529 to save for college. I’ve laid out the scenario of when you still might choose to start a 529 savings account. Now you might be wondering what steps you should take to prepare for future college expenses.  The answer is
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The 529 is a valid option for saving for college. You place money for future college expenses in a special account called a 529. These accounts were named after Section 529 of the IRS code that originally created them back in 1996 in response to the need to save for ever rising college costs.  The concept is simple.  You set money aside
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I have to just come out and say it….Do Not Open a 529 college fund for your kid! A quick “google” of 529’s will give you a plethora of sites singing the praises of the 529 college fund. The concept is really simple.  Start saving early.  Your money will grow tax free.  When you take it out to pay
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