Tax and Finance Savvy New Years Resolutions

The New Year has begun and it is a time when people all over the world set goals or resolutions for themselves. Lots of people join gyms or decide to start a new diet, but in addition to resolutions that are good for your health, I think it is a good idea go with a few that are good for your wallet. Here are my favorite tax and finance savvy New Years resolutions.

Don't Wait until April to Think About Taxes

Most Americans wait until March or April to start worrying about their taxes. However, I recommend making a short term goal to start working on your tax return this month, and try to get it filed some time in February. That way you can get your refund nice and early, and also avoid crowded tax preparation offices if you are going to seek professional help for your return.

Stay on Top of your Tax Planning

You shouldn't let the whole year go by without thinking about taxes again. By staying on top of your tax planning throughout the year then you can help keep your liability as low as possible. Also, you can prevent being faced with an unexpected tax bill next April.

Give More of your Time to Charity

In addition to donating your unwanted household items, which all will result in a tax deduction, why not give more of your time to charity this year? Since the recession began many nonprofit organizations have been struggling, and by spending a few hours volunteering won't cost you anything out of pocket. Additionally, if you do have to purchase supplies, or drive while volunteering then you can deduct these expenses.

Don't Rely on Credit

Cutting back on credit cards is always a good New Years resolution. In fact, in 2010 fewer Americans used credit then in years prior. Now is a great time to jump in on the trend. Instead of relying on credit try to make a strict budget and use your ATM card instead of your Visa or MasterCard.

Live a Greener Year

These days there are plenty of incentives to living a greener life. In addition to helping the planet you may also be able to qualify for a federal tax credit. For more information on which purchases qualify, check out EnergyStar.gov.

Start Planning for your Retirement

It is never too early to start planning for your retirement. If you do not already have an account, then make it a resolution to start an IRA or 401(k) in 2010. If you already do have a retirement account, then you could make it a goal to max out on your contributions.

Save for a Rainy Day

These days many Americans are struggling to pay their bills. However, if you can afford to do it, then try to begin setting aside money from each of your paychecks. You never know when a rainy day will hit, and you will be better equipped to deal with it if you have a little extra money set aside.

5 Easy Ways to Save Money this Thanksgiving

Yesterday my team uploaded a new video to my YouTube channel. In this new episode Edward explains a few tips for saving money this Thanksgiving. Check out the embedded video below, or visit YouTube.com/RoniLynnDeutch for more informative videos!

How Much of My Savings Should Go to Annuities?

Prioritizing your income and deciding how much should go where can be difficult, especially in today’s economy. One of the toughest decisions many Americans face is how much of your savings or 401(k) should go towards annuities. CNN Money.com recently published an article on this topic, in response to a question from an Ohio taxpayer. You can find a section of their answer below, or check out the full text at CNN Money.com.

Question: What portion of my 401(k) and savings should I move to annuities? -- Jack S., Alliance, Ohio.

Answer: That depends. Many annuities have such onerous fees and other drawbacks that you're better off avoiding them altogether.

There's one type, though, that I've long believed can play a useful role in some retirement portfolios. I'm talking about immediate income annuities, where you turn over a lump sum to an insurance company and in return receive guaranteed monthly checks for life, regardless of how the economy and markets fare.

But while most people should at least consider devoting some money to such an annuity at retirement, don't assume that buying one is the best move for you.

For one thing, retirees automatically qualify for an immediate annuity of sorts -- Social Security, which provides guaranteed, inflation-adjusted lifetime payments. If you'll be collecting a pension on top of that, you may very well have the assured income you'll need to cover enough of your expected outlays in retirement without an annuity.

What's more, if you have large balances in your 401(k)s and other retirement accounts, you might be able to draw enough from them with little risk of outliving your assets.

Continue reading at CNN Money.com…

5 Ways to Get Your Retirement Back on Track

A lot of Americans have seen their retirement plans interrupted in the bad economy. According to CNN, nearly half of the taxpayers in this country worry they will not have enough money to retire comfortably. This is up from 29% in 2007, a report from the Employee Benefit Research Institute found.

But the truth is, you can still get to your destination. "Not everyone is going to be able to retire exactly the way they want," says Denver financial planner Mark Brown. "But I talk to people all the time who overestimate the scope of their problem and underestimate their ability to do something about it."

Here are a few strategies for navigating five of the most common retirement roadblocks.

Roadblock #1: You're carrying a big mortgage

The problem: It used to be that Americans aimed to cross into retirement free of debt. But if you're in your fifties or sixties, chances are you aren't planning a mortgage-burning party anytime soon. The Joint Center for Housing Studies at Harvard says that 63% of homeowners ages 55 to 64 have mortgage or home-equity debt, up from 49% in 1989. In addition, a third of retirees carry credit card balances, reports the Federal Reserve. Such liabilities can be a dead weight in retirement -- you'll have to make the payments even if your expenses soar or your portfolio plummets.

Solution #1: Erase the debt if you can. Assuming you have cash savings in excess of the balances (besides emergency funds, that is), it usually makes sense to pay debts off around the time you retire. But zero out HELOCs and credit cards first. "You don't want a variable rate going into retirement," says Scottsdale financial planner Jacob Gold.

How 3 couples bust through retirement roadblocks

As for your mortgage, if you're two-thirds through the term, you're not benefiting much, if at all, from the interest write-off. And after taxes you're unlikely to earn more in risk-free investments than the cost of the debt, a recent Center for Retirement Research study found. That said, if you'd have to pull from tax-sheltered accounts to pay off the balance, you may want to consult a financial planner about whether doing so would be worth the tax bite.

Continue reading at CNN.com…

4 Ways to Cut Winter Energy Bills

Today is the first day of autumn, and Americans across the country are preparing for the cold season, and heating bills that will follow suit. CNNMoney.com has put together a helpful new article with advice on how to cut down on your energy bills this winter, you can find a few of their tips below or check out the full list at CNNMoney.com.

Storm windows that go inside, not out

Typical cost: $1,875*

Annual energy savings: $770

Pays for itself within: 3 year

If your windows are old and drafty, but you're not eager to spend $1,000 apiece to have a professional install energy-efficient vinyl-clad wood replacements, there's another alternative: interior storms.

"They're a better value," says Bruce Harley, technical director of Conservation Services Group in Westborough, Mass., and author of Cut Your Energy Bills Now.

These products, which typically have an aluminum frame that spring-loads to fit your window, generally cost the same as or less than exterior storms and are just as energy saving. (Both can reduce heat loss by 25% to 50%.) But they're much easier to put in and take out; no more teetering on a ladder or paying someone else to.

Thermal leak detector

Typical cost: $50

Annual energy savings: $220

Pays for itself within: 5 months

Wonder why your heating bills are high even though you've done everything you can think of to make your home airtight?

You could hire a professional to do a home energy audit, which will set you back $100 to $400. (Some utility companies offer free audits, but they may not be as comprehensive.) Or you could buy a thermal leak detector.

Current models, such as the Black & Decker Thermal Heat Detector, accurately pinpoint where energy seepage is happening. (Two common trouble spots: around outlets and light fixtures.)

15 Things You Shouldn't Be Paying For

In the past few years, many Americans have been forced to tighten their personal budgets. However, as this article from Yahoo! Finance there are a lot of things you are probably paying for that you do not necessarily need to. You can find a snippet of their article below, or read the full text here.

So much money and energy is wasted on things we could get for free. If you're into new, shiny things and collecting stuff, this is not for you. But if you want less clutter in your life and want to keep more of your money, then check out these 15 things you shouldn't be paying for.

Basic Computer Software -- Thinking of purchasing a new computer? Think twice before you fork over the funds for a bunch of extra software. There are some great alternatives to the name brand software programs. The most notable is OpenOffice, the open-source alternative to those other guys. It's completely free and files can be exported in compatible formats.

Your Credit Report -- You don't have to pay for your credit report. You could sign up for one of the free credit monitoring services online to get a quick look at your credit report. You just have to remember to cancel the service before the end of the free trial. Or you could do one better and visit www.annualcreditreport.com, the only truly free place to see all three of your credit reports for free once a year.

Cell Phone -- The service plan may be expensive, but the phone itself doesn't have to cost a thing. Most major carriers will give you a free phone, even a free smart phone, with a two-year contract.

Books -- There's a cool place in your town that's renting out books for free: the library. Remember that place? Stop by and put your favorite book on reserve. And if you don't feel like getting out, visit www.paperbackswap.com and find your books there (small shipping fees apply).

Sending your Child Back to School Without Breaking the Bank

According to a recent survey, nearly 60 percent of parents plan to change the way they shop for back to school items for their children because of the poor economy. The same survey also found that over a quarter of the parents in this country said their children needed more expensive items, such as computers, because of education related budget cuts.

Although not all U.S. taxpayers have children, the back to school season is second only to December holiday shopping when it comes to the amount of money American consumers spend in a month. To help the readers of my blog looking to send their children back to school without breaking the bank, I have put together the following list of money saving tips.

Read Reviews Online

Before you embark on a back to school shopping trip you should always do some online research, especially if you are going to buy expensive items like a computer or laptop. Read reviews from other customers, and run a few searches to make sure you are getting the best deal.

Shop Online

These days it is easy to buy supplies online, and a lot of retailers even offer free shipping on some purchases. Even if you have to pay for shipping, the money you save will often outweigh the added shipping expenses.

Start Early & Watch for Sales

It is already August, and some children will begin going back to school in a week or two. There is no need to wait until your child’s first day of class to purchase all of the supplies they need. Start shopping now, and be on the lookout for good sales. If you do not know what supplies your child will need, then you could try contacting either their teachers or parents of other students in the same grade.

Buy in Bulk

With basic supplies – such as pencils, paper, glue sticks, etc. – you might want to consider buying in bulk. Although your son or daughter obviously does not need a few dozen pencils on the first day of class, you can stock up now and use the supplies throughout the year. During back to school season many education essentials are discounted significantly, and by stocking up now you can save a decent amount of money throughout the year.

Take Advantage of Sales Tax Free Weekends

If you live in a state that has a sales tax free weekend you should try to plan your back to school shopping around the days when the tax breaks are in affect. Many stores also offer additional discounts on school supplies during sales tax free weekends. There are dozens of states offering some type of tax free holidays including Florida, Texas, New York, Iowa, and many others. To see if your state is offering a tax free holiday, check out this article on About.com.

Donate a Backpack

While you are purchasing supplies for your child, it is important to remember that there are thousands of children in this country without the supplies they need to succeed. During back to school season there are always charity drives asking for backpack donations, and if you can afford the extra expense I highly recommend making a contribution. In addition to helping out a child in need, you can also keep the receipt and claim the donation as a charitable contribution on your next tax return.

The Humbling of Toyota

International automaker Toyota has been in the headlines for weeks because of the controversy surrounding their acceleration problems, which have led to an estimated 51 deaths in the country. Earlier today, I came across this article on Business Week explaining how the companies once rewarding frugality turned in to its worst enemy causing millions of recalls. Checkout a section of the interesting piece below, or find the full text at Business Week.com.

Toyota Motor has always been fanatical about frugality, and for many years that was good for both the company and its customers. This is a Japanese carmaker that routinely turned down the heat at its employee dormitories during working hours and labeled photocopy machines with the cost per copy to discourage overuse. Its engineers collaborated with suppliers to extract cost-savings without compromising quality. Yet by the middle of the last decade Toyota's virtue had become a vice.

So say current and former auto executives who are trying to grasp how Toyota, with its gold-plated reputation for engineering excellence, slipped up on such a scale, with 8 million cars recalled due to mechanical failures linked by U.S. regulators to 51 deaths. Before company officials knew that runaway acceleration was causing crashes, one of these executives says, a simple manufacturing process would sometimes ignite small fires in a component as a direct result of corner-cutting. It was just one early sign that the focus on cost reduction had gone too far.

Those production mishaps occurred in 2006, a year after company President Katsuaki Watanabe boasted about having squeezed more than $10 billion from global operating costs in the previous six years—this despite an impressive run of profit growth and global market share gains in the middle of the last decade. Then Toyota pushed even harder for more cuts. It asked suppliers to design parts for its Camry midsize sedan that were 10% cheaper and 10% lighter. The company's top U.S. executive, Jim Press, warned his bosses in Japan that vehicle quality was slipping, according to a slide presentation U.S. Senate investigators unearthed in their sudden-acceleration probe. But his warning had no apparent effect.