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free_money_2016 [2018/06/25 19:03]
admin
free_money_2016 [2019/02/24 16:15] (current)
admin
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**Tax Refunds**: Do you love to get a refund at tax time? Think again. It’s understandable if you purposely use your withholding to force yourself to save. But what you’re really doing is loaning the government money and charging them no interest! If you can discipline yourself it is far wiser to reduce your withholding and increase the money in each paycheck. You can usually even make the savings or investment automatic by using direct deposit. That way you never see the money (unless you peek at your savings balance) and you’re not tempted to spend it. Check out which banks - or better yet, credit unions - are paying the best interest. Then get yourself a savings account to add to directly from your paycheck each pay period. You may be surprised at the benefits of compound interest as your money grows rather than disappearing… **Tax Refunds**: Do you love to get a refund at tax time? Think again. It’s understandable if you purposely use your withholding to force yourself to save. But what you’re really doing is loaning the government money and charging them no interest! If you can discipline yourself it is far wiser to reduce your withholding and increase the money in each paycheck. You can usually even make the savings or investment automatic by using direct deposit. That way you never see the money (unless you peek at your savings balance) and you’re not tempted to spend it. Check out which banks - or better yet, credit unions - are paying the best interest. Then get yourself a savings account to add to directly from your paycheck each pay period. You may be surprised at the benefits of compound interest as your money grows rather than disappearing…
 +
 +**Important for your taxes for the 2018 tax year:** If you're used to receiving a refund but you didn't change your withholding to reflect the tax law changes passed last year, you could be in for an unpleasant change. Many people are already startled to see the difference in their taxes, which was not expected. Be sure you don't spend your expected "refund" before you receive it -- or you receive different news. You might also want to check into the availability of Free Tax Help for your planning this year ...
**Investing**: If you’re looking for “free money” the thought of saving - and even investing - may seem like a distant dream. However, there are options you should know about so you can take advantage of them when and if you can manage to put some money aside. Money that is wisely invested grows over time so it is worth knowing about. If your employer offers any matching funds for money you put into a 401k plan, contributing enough to be eligible for those matching funds should be your top priority. If you don’t have such a plan then consider starting your own Roth IRA. Roths are a real gift in that your investments grow tax free over time and you do not pay taxes on the money when you make withdrawals in the future. To set up a Roth IRA look for an online broker with a low minimum for opening your account and lots of choices for no fee investing. Ameritrade actually has no account minimum and provides lots of educational resources that can help make you a more knowledgeable investor. Schwab does as well but it does have a $1000 minimum for a new account (which is waived if you set up automatic monthly deposits of $100 or more…). **Investing**: If you’re looking for “free money” the thought of saving - and even investing - may seem like a distant dream. However, there are options you should know about so you can take advantage of them when and if you can manage to put some money aside. Money that is wisely invested grows over time so it is worth knowing about. If your employer offers any matching funds for money you put into a 401k plan, contributing enough to be eligible for those matching funds should be your top priority. If you don’t have such a plan then consider starting your own Roth IRA. Roths are a real gift in that your investments grow tax free over time and you do not pay taxes on the money when you make withdrawals in the future. To set up a Roth IRA look for an online broker with a low minimum for opening your account and lots of choices for no fee investing. Ameritrade actually has no account minimum and provides lots of educational resources that can help make you a more knowledgeable investor. Schwab does as well but it does have a $1000 minimum for a new account (which is waived if you set up automatic monthly deposits of $100 or more…).
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free_money_2016.txt · Last modified: 2019/02/24 16:15 by admin