Well, following some of the banks and other institutions, Cosco is raising the price of their membership. How could they do that in these horrible times. The price for a regular or Goldstar membership is going from (gasp) $50 to $55 and US and Canada execultive membership from (aagh) $100 to $110. What do you mean big deal? Well, it is true it is not much, but next Walmart is going to raise their fees (oh wait they don’t have fees).Well at least I will get another 5 cents in rebates on my Costco American Express Card.
Brian’s Financial Musings
Well did you hear? Fed chairman Bernanke just said that he is mad at Congress for pushing the US close to default this year. (Talk about calling the kettle black – his money policies are part of the reason we are in this mess.) He also says that the federal budget shouldn’t be cut too deeply, given the current situation. Well, “Helicopter Ben” (called that because he once said he would drop dollars from helicopters to stimulate the economy), your new Operation Twist should guarantee we have more inflation while let’s see if it stimulates the economy.Here is an article about Bernanke’s hearing on Tuesday:http://www.latimes.com/business/la-fi-bernanke-congress-20111005,0,279470.storyand here is a story about how he got his nickname:http://www.thestockenthusiast.com/opinion/how-bernanke-got-the-nickname-helicopter-ben-why-it-matters-right-now/Look up at the sky – if you see helicopters dropping bails of money, duck.
Brian’s Tax Musings
I had talked before about paying your child out of your sole proprietorship and saving payroll taxes, then putting the earnings into a Roth IRA. Up to $5,800 would have no income taxes, and the Roth will be tax free when withdrawn.This could be a way to save for college. Putting $5800 when your child is 13 is 6 years at 5,800 or $34,800. If it earns 6% a year it will grow to around 43,000. Say college costs are $11,000 per year. You will be able to take that out without incurring the 10% penalty throughout your child’s college time. The distribution is income for getting financial aid, but the Roth IRA itself isn’t an asset on the FAFSA form that most schools use to determine financial aid. It is worth looking into to help with your child’s education. Here is an article about it:http://www.money-zine.com/Financial-Planning/College-Loan/Saving-for-College-via-Roth-IRA/If you have children that will go to college someday, now is the time to think of this type of college savings plan. Email me at bstonercpa@sbcglobal.net and we can discuss it. I also have an associate who specializes in college tuition counseling and finding money for college. His name is Michael Budnick and his [...]