It’s not the responsibility of others to tell us how we can help society become a better society. It’s our responsibility to identify the actions we can take, no matter how small, to move society in the direction of justice.
In this spirit, here is my statement of #WhatICanDo to make the part of America I have influence over a more just and safe society for black people and all people.
Read MoreAssuming the withdrawal is going to be spent and not rolled over to another retirement account, a partial withdrawal from your Traditional 401(k) will be treated as taxable income when you file your taxes next year. The amount the 401(k) provider deducts and sends to the IRS will also be counted as a prepayment of your taxes for the year, similar to how withholdings worked while working. . . .
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May be forgiven vs. Will be forgiven
Is the interest forgivable?
What is the interest rate?
The federal government has created the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Eligible business and individuals can borrow 2.5 x prior average payroll (up to $10 million) with no loan payments due for six months. If you maintain your workforce, the SBA will forgive 8 weeks of payroll plus certain other expenses
ALSO COVERED:
Eligibility and amounts available
How to get Loan Forgiveness
Applying for the loan and an advance
Resource are available to help including ways to replace your income and relief programs to help make your mortgage easier to manage. Start by identifying who owns your mortgage to determine the programs available to you.
ALSO COVERED:
Freddie Mac relief programs
Fannie Mae relief programs
How to request help from a bank or credit union
The last couple weeks saw a stock market drop which has many spooked. Here are the 6 things you should do to keep the market downturn from ruining your financial plan.
Read MoreThe IRS provides directions for filing a 1040X on their website, although as with all things IRS they aren't always the easiest to follow. I highly recommend engaging a qualified tax professional, such as a CPA, to assist you with your taxes. Additionally, since you have a significant underpayment of taxes for the prior year, you will want to have professional guidance to minimize penalties (the IRS doesn't generally lower interest charges).
Hiring a CPA is Cheap
Volunteer Income Tax Assistance Program
Minimizing Multi-Decade Taxes
Full Article Also Covers:
Sell Part of the Property
Replace the HELOC with a HELOC
Be Wary of Advice to Roll the First into a HELOC
How to calcluate the net present value of the bank’s offers
How banks calculate their offers
Estimating how long will you keep the mortgage
The rate of return on alternative uses for the funds
Multi-decade tax planning and mortgage points
INVEST MORE AGGRESSIVELY
OPEN A HEALTH SAVINGS ACCOUNT (HSA)
SAVE UP FOR A DUPLEX/TRIPLEX
SAVE UP TO START A BUSINESS
BUY A HOUSE
Peer-to-peer lending (P2P lending) is a relatively new investment class and tends to carry with it high risk. As a result, I would not recommend P2P lending as a significant part of a person’s portfolio - definitely not more than 5% to 10% of their invested assets. This means you should build up a significant portfolio of more traditional investments before considering investing here.
Full Article Also Covers:
Adding P2P Lending Isn’t Necessary to Diversify From Mutual Funds
P2P Lending Actually Increases Risk to a Portfolio
P2P Lending Scandals
You can invest in any type of investment account, including retirement accounts, through a brokerage company, a mutual fund company, or through Purposeful SP. At your age, and with over 30 years until you retire, you should consider investing heavily in a broadly diversified stock portfolio which includes both U.S. and international stocks. With three plus decades to go, you only need bonds in your portfolio to help you sleep at night and for rebalancing opportunities. In other words, after doing your research, choose a bond percentage which makes YOU feel comfortable that you have enough "safety" in your portfolio.
Article Also Covers:
Beware Portfolio Advice From Books, Magazine, or the Internet
Build an Emergency Fund Before Investing
Three easy ways to get started with an investing account
Simply leasing a property to a non-profit will not, on its own, exempt a private individual from having to pay property taxes. Since property taxes are state taxes, the exemption will depend on the laws in your individual state. Non-profits are exempt from all state property taxes because. . . .
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