
Is my money safe at my bank?
First there was Silicon Valley Bank (SVB) on March 10th and then First Republic Bank (FRB) on May 1st. Who’s next? Did anyone lose money? Do I need to worry?
First there was Silicon Valley Bank (SVB) on March 10th and then First Republic Bank (FRB) on May 1st. Who’s next? Did anyone lose money? Do I need to worry?
ax refunds are OUR money. Other than receiving a tax credit, a refund is simply an interest free loan that you gave Uncle Sam.
For the last twelve months the Federal Reserve has been on a mission to crush inflation by raising short-term interest rates. But will this be sustained? Should I put all of my money into high yield certificates of deposit now? What about mortgage rates? Is 6% the new normal for mortgages? If so, how do I afford a new home mortgage payment at that rate?
Set aside cash for an emergency fund (at least six months of living expenses). Pay down, or pay off, outstanding debt, especially high interest credit cards. Consider making extra payments toward student loans, auto loans and even your mortgage, depending on the interest rate on the debt. Review your retirement plan contributions to determine if you can contribute more to your (or a spousal) IRA account or retirement plan this current tax year.
Many times, one spouse wants to keep the house in a divorce, yet houses come with their own set of issues. There are property taxes to pay, insurance, upkeep, lawns to mow and possibly snow to shovel. On the positive side, the house over several years, could appreciate substantially. Then again, one cannot simply take a window out of their house and go buy groceries with it.
Over the years I’ve asked my CPA the same question that you have probably asked yours: “What can I do to lower my tax bill?” After the close of the tax year the answer is unfortunately uniform: “Not much.”