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?
Unsurprisingly, Boston University's tuition increased since this blog was initially posted last year. Here's 3 outside-the-box ideas to make college affordable
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.”
It's a good problem to have: Let's say you saved too much for college for your child in a 529 plan.