- What’s the U.S. Debt Ceiling and How Can It Affect Your Finances?
The debt ceiling is a limit that Congress imposes on how much debt the federal government can carry at any given time. When the ceiling is reached, the U.S. Treasury Department cannot issue any more Treasury bonds, bills, or notes. It can only pay bills as it receives tax revenues. If the revenue isn’t enough,… Read more…
- We Have a $500k Brokerage Account and $250k in Retirement Accounts. How Can We Increase Financial Aid to Help Pay for Our Child’s College?
Paying for a college education is a major financial commitment. While much easier said than done, restructuring your finances can help modestly. Student aid is calculated based on a formula called Expected Family Contribution, “EFC.” This is the amount that the government assumes a family can pay for their student to attend college. For a… Read more…
- What Is a Financial Power of Attorney?
Have you ever wondered who will manage your financial affairs if, due to unforeseen circumstances or illnesses, you’re no longer capable? This is not an unrealistic scenario, and it’s where a financial power of attorney (POA) comes into the picture. A financial POA can serve as a safety net in instances where you become incapacitated,… Read more…
- Earned vs. Unearned Income: What’s the Difference?
Earned income refers to the money that you make from working, including salaries, wages, tips and professional fees. Unearned income, comparatively, is the money that you receive without performing work, such as dividends, interest or rental income. Understanding the differences between both can help you develop retirement planning and investing strategies, as well as minimize… Read more…
- 401(k) Loan vs. HELOC
A 401(k) loan empowers you to tap into your retirement savings, while a HELOC permits homeowners to borrow against the equity of their homes. Both loans have their own set of qualifications, interest rates and repayment plans, making them suitable for different financial scenarios, depending on an individual’s specific requirements and circumstances. You may want… Read more…
- How to Calculate Your Tangible Net Worth
Understanding your financial worth is a crucial component in managing your personal finances. The total value of your physical assets, or your tangible net worth, is a key measure of this. By comprehending and calculating it effectively, you can make informed decisions related to investments, debt management and future financial planning. Here’s what you need… Read more…
- Average vs. Median Net Worth
Net worth is the difference between your assets – what you own – and your liabilities – what you owe. This figure represents your financial health at a given point in time, providing a snapshot of your current financial position. But understanding the distinction between average net worth and median net worth is crucial when… Read more…
- What Is a Discretionary Expense?
Achieving financial stability often requires a blend of judicious planning, disciplined spending and clever investment approaches. An essential ingredient in this mix is understanding and managing discretionary expenses – those costs we often deem non-essential. These expenses may not appear significant on the surface but can shape your financial trajectory. Here’s a deeper look into… Read more…
- How to Successfully Live Within Your Means
Have you ever wondered why some people seem to effortlessly manage their money despite earning a modest income? The answer probably lies in a financial strategy called “living within your means.” An essential part of personal finance, when mastered, can lead to long-term financial stability. This strategy essentially involves understanding your income, creating a budget… Read more…
- 7 Wealth Preservation Strategies to Follow
In an unpredictable economic landscape, ensuring the preservation of wealth becomes a paramount concern for every individual and family. Wealth preservation involves a strategic approach to safeguarding and growing one’s assets over time, protecting them from the erosive forces of market volatility and unforeseen events. A financial advisor can help you build a comprehensive strategy… Read more…