Financial Planning

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Simple Tax Deductions You Need to Know About

The 40 Simple Tax Deductions You Probably Don’t Know About

Everybody seems to know what tax deductions are but, if you were to ask them what deductions they qualify you’ll more than likely be met with silence. With the constant shift of government legislation year after year it can be difficult to define what you qualify for (unless you’ve been following that legislation throughout the year and that can be time-consuming). We’re guessing you’re already busy enough as is so, we’ve put together a list of the 40 simple tax deductions you could qualify for this year. Simple tax deductions that, we hope, will help save you quite a lot of money.

tax tips for independent contractors

Crucial Income Tax Tips For Independent Contractors

With only 69 days left until the April 15 tax filing deadline, now is the time for independent contractors to begin preparing their returns. Filing taxes can be a daunting task for anyone, but it can be especially challenging for independent contractors. To ease this often stressful process, we suggest following our simple tax tips for independent contractors.

file your 2014 taxes early

5 Reasons to File Your 2014 Taxes Early

Tax season is approaching fast. You have three and a half months to file your 2014 taxes, but why wait until the last minute. You can file your 2014 taxes early instead of stressing out about them until April 15, 2015. There are no disadvantages when filing your taxes early. In fact, there are many advantages to doing that.

DMCPA has a couple reasons as to why you should file your 2014 taxes early, thanks to the help of U.S. News.

lower your tax bill

10 Simple Ways to Lower Your Tax Bill

Tax season is rapidly approaching. Last minute tax tips are on everyone’s mind before April 15th. Some quick tax moves and saving on returns can make all the difference. See if you are eligible for these credits and deductions that will lower your tax bill.

Is Passive Investing Right for You?

Is Passive Investing Right for You?

We started talking about passive investing last week, when we introduced an example of a woman investing in an index fund that tracked the S&P 500. This type of passive investing, in which you invest in a fund that tracks the indexes of bonds, small company stocks, foreign stocks, and other asset classes, is quickly becoming one of the most popular forms of investment.

Active Investing Vs. Passive Investing: Which to Choose?

Active Investing Vs. Passive Investing: Which to Choose?

Investors can employ two different strategies when choosing how to invest their money: passive or active. Despite the fact that active investing has historically been most popular, there’s recently been a shift that’s put passive investing way above active in measures of popularity. To illustrate, look at figures from 2013: passive equity funds exceeded $60 billion in net investments, while active funds only had $3.4 billion.

wealth sustainability

How to Achieve Wealth Sustainability

It’s no surprise that wealthy people have an interest in sustaining their wealth through future generations. However, what is surprising is how few of them are confident in their ability to do so. In a recent study published by Merrill Lynch’s Private Banking and Investment Group, a third of the participants indicated that their biggest financial concern is their uncertainty about wealth sustainability.

As it turns out, their fears aren’t unfounded—in fact, two out of three times, a family’s wealth doesn’t outlive the generation immediately following the one that created it. What’s even more frightening, is that assets wind up completely spent before the end of the third generation ninety percent of the time. This is such a common occurrence that there’s even a phrase for it: “Shirtsleeves to shirtsleeves,” when a family finds themselves in the same financial position that they started.

asset sustainability

Asset Sustainability Facts You’ll Regret Not Knowing

A recent survey published by Merrill Lynch’s Private Banking and Investment Group uncovered alarming statistics with regard to the universal goal of sustainability. “The Meaning of Sustaining Wealth” was a survey that included 171 participants, meant to gain insight into the desire to sustain wealth and the plans through which individuals intended to do so.

The wealthiest participants of the study had assets valued over $10 million, 63% of whom viewed sustainability from a multigenerational perspective. By that we mean that those individuals intended for their wealth to last for several generations. Participants who were age 55 or younger didn’t appear to have asset sustainability timelines that were quite as long; 58% of them aimed to support themselves and their children through their lifetime.

529 Savings Plan

Is a 529 Savings Plan Right for Your Grandkids?

A qualified tuition plan, more commonly known as a 529 savings plan, is a tax-advantaged savings plan that helps people save for future college costs. Starting a 529 savings plan is the preferred method of college savings for many Americans, and they can be opened by anyone, not just the parents of future students. That means that you can save for your grandchildren, nieces, nephews, or any children in your life.

We recently talked about grandparents who want to help grandkids pay for college, and the concern that sometimes gifting money to grandkids that is meant for college doesn’t necessarily get used for college costs. A 529 savings plan is a great solution to that potential problem, because the money from the plan needs to be used for college-related costs, such as tuition, fees, books, supplies, room and board, and equipment. If the money from a 529 savings plan isn’t used for college expenses, it will be subject to income tax as well as a 10% federal tax penalty on any earnings it has accrued.

help grandkids pay for college

How to Help Grandkids Pay for College

Grandparents who are trying to help grandkids pay for college may need to be concerned about whether or not their gift will detract from the financial aid for which the grandkids may be eligible. However, some grandparents needn’t worry about that, because if their grandkids’ immediate family has a certain level of income or assets, they won’t qualify for need-based financial aid anyway.

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