Pros and cons of state interest-rate caps
Small-dollar, short-term lenders, unburdened by a federal maximum interest rate, can charge borrowers rates of 400% or more for their loans. But more states are bringing that number down by setting rate caps to curb high-interest lending. Currently, 18 states, including Maryland and Virginia, and Washington, D.C., have laws that limit short-term loan rates to 36% or lower, according to... READ MORE
The four phases of retirement planning
It is crucial to think about the long term when you are planning for your retirement. Having a plan — a specific road map to retirement — is absolutely essential. Effective retirement planning comes down to four phases: The accumulation phase The first phase is one of accumulating assets, usually from earned income. However, most individuals do not put away enough, or... READ MORE
The financial effects of losing a spouse
The death of a spouse is one of the most difficult things imaginable. Besides the emotional toll, though, surviving spouses typically confront financial issues, which often trigger tax-related questions and consequences. Some of them are fairly straightforward, while others can be tricky. That’s why Letha McDowell, president of the National Academy of Elder Law Attorneys, advises... READ MORE
Use a trust to protect child’s inheritance
I recently met with a client to update her will, and her big question was whether she still needs a trust for her daughter. Her child has graduated college, is on her second well-paying job, got married and is now a new mom. Her daughter has been maturing into a responsible young adult. But there’s another factor that weighs heavily on my client’s mind: her son-in-law and the... READ MORE
Five ideas can shape your retirement plan
Stashing away money for retirement is both smart and necessary to increase the odds that you will be financially secure once your working career comes to an end. But the act of saving money is not in itself a retirement plan. You also need to be intentional in establishing how much money you will need, when and how you will spend it, how taxes might affect you and a host of other... READ MORE
New Medicare con: ‘free’ genetic test kits
If you are on Medicare, watch out for a resurgence of this scam. Scammers are claiming to offer “free” genetic testing kits that allegedly screen for heart conditions or cancer. It’s really a ruse to steal your Medicare information for fraudulent billing and/or identity theft. How the scam works You get a call from someone claiming to be from Medicare or an official-sounding... READ MORE
Nine important money numbers to know
Your doctor needs to know certain numbers to judge your physical health, such as your weight, blood pressure and cholesterol levels. Similarly, you need to know certain numbers to monitor your own financial health, including these: After-tax income and ‘must-have’ expenses Your after-tax income is your gross income minus the taxes you pay (federal, state and local income taxes,... READ MORE
Dominion Energy program helps pay bills
Many people — particularly older adults — have struggled financially during the pandemic. For that reason, Dominion Energy suspended all disconnections for nonpayment beginning in March 2020. It’s also providing assistance to those in need. The pandemic wasn’t the first time the company offered assistance to Virginia residents. Almost 40 years ago, Dominion Energy created... READ MORE
Reasons to convert IRAs to Roths in 2021
Recently, IRA expert Ed Slott (irahelp.com) pointed out the advantages of Roth conversions in light of President Biden’s tax proposals. I’ll discuss some reasons you should consider such a conversion. For high income tax-payers, it is likely that marginal tax rates will not be reduced, and it is likely that marginal tax rates will increase in the future. The SECURE Act eliminated... READ MORE
