by Barry Waxller
Study after study has revealed that we all make mistakes with our money. These mistakes, of course, end up costing us big time. Here are some of the basic mistakes that most often occur. Make sure to avoid them or end them now.
The biggest mistake nearly all of us make with money is one of timing. Simply put, we don’t take action today and then come to regret it. When should you start saving for retirement and a new home? Now!
I was never a huge fan of math, but there is a simple formula even I can follow when it comes to finances. That formula is do not spend more than you take in. It sounds simple, but studies show a majority of us spend excessively.
Credit should be viewed as something you can tap into in a tough situation. Unfortunately, many of us make the mistake of living on credit as a part of our daily finances. Don’t! Get out of debt and start keeping your own money.
by Barry Waxller
The reverse mortgage is getting a lot of play these days in the media, but what is it exactly? Let’s take a closer look at it and some of the issues that arise.
As the name suggest, this is a loan wherein you receive payments from a lender instead of making them. The rest of the loan, however, is much different than your run of the mill mortgage.
Equity. The reverse mortgage equity loan is all about equity. Every payment the lender makes to you is in exchange for a slice of the equity in your property. Unlike your traditional home loan, the balance due on the loan goes up.
The first issue that arises with this program is the issue of finite equity. Practically speaking, what happens if you outlive the equity in your home? Does the lender take over the home and kick you to the curb?
This is exactly what happened when these loans were first offered. This unsavory result did not stand. The federal government got involved. In most current situations, you are allowed to remain in the home, but payments to you stop.
March 14, 2008 – 10:58 am
by Barry Waxller
If you can’t laugh at yourself, you really are in trouble. Well, does the same thing apply to the IRS? Although not known for its sense of humor, there are no reports of the agency auditing the following people for saying these humorous things.
The question is: What can we, as citizens, do to reform our tax system? As you know, under our three-branch system of government, the tax laws are created by: Satan. But he works through the Congress, so that’s where we must focus our efforts. - Dave Barry
The more expansive government is, the more perils people face in daily lives, be it from IRS agents or from child support services, or from other agencies that often have little or no legal restraints on their power. - James Bovard
The Original Sin which brought us to the brink of bankruptcy and dictatorship was the Federal Income Tax Amendment and its illegitimate child, Federal Aid. - Tom Anderson
Two years ago it was impossible to get through on the phone to the IRS. Now it’s just hard to get through. That’s progress. - Charles Rossotti, former IRS Commissioner
by Barry Waxller
The great American Dream is to own a home. After all, it is a great nest egg investment. When you hit your retirement years, however, how do you turn the equity in the home into money you can use? Many suggest using a reverse mortgage.
If you own a home, you have been in a forward mortgage and you know how it works. You borrow money for a home and then pay it back over a set schedule, often for a full thirty years.
The reverse mortgage is touted as a revolutionary new financial product. This is not entirely or even remotely true. This financial product has been around since the 1960s.
The reverse mortgage is one of the rare financial tools that allows for age bias. In fact, there is a mandatory age limit and it is legal. Simply put, you must be 62 year of age or older to apply for a mortgage.
In a reverse mortgage, you have equity in your home and a lender is willing to trade you cash now for a chunk of that equity. Yes, you are essentially selling the property to the lender, which is making payments on it over time.
February 7, 2008 – 3:36 am
by Barry Waxller
If your idea of planning for your senior years is playing the lotto, it is time for a reality check. Those years are going to be here before you know it. Here are some retirement planning facts and tips to prime the pump for you.
It doesn’t matter if the money goes into a 401(k) plan, an IRA or into a plain, old-fashioned savings account, just start saving.
Start early. The sooner you start saving, the more time your money has to grow. Put time on your side. Make retirement savings a high priority. Devise a plan, stick to it, and set goals for yourself.
Women represent 58 percent of all Social Security beneficiaries age 62 and older and approximately 71 percent of all beneficiaries age 85 and older.
Today, only 42 percent of Americans have calculated how much they need to save for retirement. Have you?
Social Security pays the average retiree about 40 percent of pre-retirement earnings.
On average, a female retiring at age 65 can expect to live another 20 years, 3 years longer than a man retiring at the same age. Savings can increase a woman’s chances of having enough money to last during her retirement.
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