Why would someone carry a credit card balance (with a 10 to 20 percent interest rate) while having money in savings earning next to nothing that could pay some or all of it off ? There actually are reasons that make some sense. See this posting in MarketWatch by Simon Constable for the details: http://echo4.bluehornet.com/ct/49922621:28343653836:m:1:2505976388:16031730955D7B4F97F764C655491894:r This article makes some good points for carrying a credit card balance in certain circumstances. I guess the old saying that ‘one size doesn’t fit all’ applies here. Each situation is unique and should be approached as such. For financial, accounting and tax musings, You can count on us to count for you! Email:bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Financial Musings: How to fund a 401(k) when you’re your own boss
If you and your spouse have a small business (Single LLC, Sole Proprietorship, C or S Corporation) you can have a 401K plan just like the big boys. It is easier to administer than more complicated plans and gives you investment flexibility that the larger plans may not have. See this article in the Christian Science Monitor by Dmitriy Fomichenko for a more detailed view of this popular retirement vehicle: http://echo4.bluehornet.com/ct/49498606:28261600621:m:1:2505976388:9ABC5AF8F414455EDE3217C0F352FD67:r This is definitely an improvement over a Roth or regular IRA as the contribution limits are larger ($17,500 employee deferral in 2014 for you AND your spouse, up to 100% of compensation, and an additional 25% employer contribution of compensation up to a max of $34,500 each) so you could put away $104,000 if you each take a salary of $134,000. Plus the $17,500 can be a Roth component without the AGI limitations of a Roth IRA, so for high income people it is a great way to go to sock away money for retirement. For financial, accounting and tax musings, You can count on us to count for you! Email:bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Financial Musings of a Burbank CPA: 9 Scary Things Consumers Do With Their Money
It is always interesting to see how people borrow or invest or spend their money. Some of the things can be scary. See these nine items in US News Money by Geoff Williams for what not to do: http://money.usnews.com/money/personal-finance/slideshows/9-scary-things-consumers-do-with-their-money/5 As far as these items go individually, you might be able to get away with one, just be careful about doing too many of them as it will hurt you financially over time. For financial, accounting and tax musings, You can count on us to count for you! Email:bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa