Utah offers one of the most attractive 529 plans in the country. Like all 529 plans, contributions to a Utah 529 plan are not deductible on a federal income tax return. However, the State of Utah will allow the contributor to claim a 5 percent tax credit on up to $1,650 per beneficiary if the contributor is single, or $3,300 if the contributor is married filling jointly. A tax credit is a dollar-per-dollar reduction of a tax liability, and is thus more valuable than a tax deduction. Consequently, the state will pay as much as $82.50 of a single contributor’s …Read More
We’re facing unprecedented times in our economy. The government is in the midst of a $700 billion bailout. The stock market has plummeted and we are in the middle of a housing market meltdown. Unemployment is increasing as well as gas prices (depending on the day). Now that the elections are over the media says we are entering a recession. If you’ve been following the news you already know we’re facing difficult economic conditions and it may seem as if the end is near.
Daily I’m asked about the economy and at least weekly I receive a media inquiry asking …Read More
A comment that I’ve heard several times in the last few weeks is, “I took a look at my 401(k)/mutual fund statement and it was really depressing.” Well, take heart: at least you’re not down by eight billion dollars….
Various sources are reporting today that Harvard University’s endowment has experienced investment losses estimated at 22% since June 30, the end of the school’s fiscal year. Since the portfolio was at almost $37 billion then, that translates to a loss of about $8 billion. The Associated Press and other sources are reporting that Harvard President Drew Gilpin Faust has broken the …Read More
Remember all the time we spent as children dreaming about what it would be like to be a millionaire? Surprisingly, if we had spent that same amount of time running a candy store or a lemonade stand, we would all be on track. Why didn’t anyone tell us it was so easy! Of course, many adults don’t comprehend the power of compound interest, so I suppose we should give ourselves a bit of a break, but here is the secret: assuming historical investment rates of return hold steady, a 10-year old would need to invest only $25.52 a month during …Read More
The volatile market of 2008 highlights the importance of focusing on controllable variables. A basic factor investors often overlook is the value added by their financial advisor. Here are five questions to ask your financial professional:
1. What education does your advisor possess?
Insurance representatives, annuities salespeople and stockbrokers all refer to themselves as “financial advisors.” Are these individuals qualified to provide objective, comprehensive financial advice and act in their clients’ best interest? While these salespeople are well equipped to illustrate how their particular product is appropriate for any given client, they may not have the education or financial motivation …Read More