Multi-Generational Living – Is a Next Generation Home for You?

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The economy has hit many hard. 

Retirees have seen their investments drop leaving them with less money to pay their living expenses and ever rising medical and prescription costs.

College students struggle to pay their college and living expenses while not going too deeply in student loan debt.

Meanwhile, the so called sandwich generation, those who have elderly parents who need support as well as children that also need support, struggle to make ends meet and take care of both generations while also saving for their own retirement.

Multi-Generational Living:  Coming Back in Style

The idea of generations living together is not new.  One hundred to one hundred and fifty years ago, 3 generations living together was quite common.

Yet, as our society changed and people became more independent, multi-generational living fell out of vogue.  It is no longer necessary, so most people don’t do it.

However, the current economy has changed the most recent housing dynamic. 
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What is the European Debt Crisis and How Can It Affect You?

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For the past several years the European Union — also called the Eurozone — has been enduring a deep financial crisis that has shaken the faith of the markets in the region.

The issue is complicated and difficult to summarize in a basic article, but having even the most basic understanding of how it might impact you personally is important.

The goal of this article is to highlight some of the key aspects of the European debt crisis so you as an individual are better prepared to seek more information on your own and avoid making critical financial mistakes.

What is the European Debt Crisis?

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The Taxpayer Relief Act of 2013 – The Fiscal Cliff Averted

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In an unusual act, Congress convened and passed a big time piece of legislation on a major holiday – New Year’s Day.

The bill, the Taxpayer Relief Act of 2013,  prevents the country from slipping off of the so-called fiscal cliff and it seems to have worked–at least temporarily.  Instead of collapsing on the first trading day of the new year, the financial markets had a strong rally on news of the passage of even an imperfect bill.

What Just Happened with Congress and the Fiscal Cliff?

The fiscal cliff negotiations were originally expected to include tax issues, spending, deficit reduction and even a hint of real tax reform.  Nothing that dramatic came about, but here are some highlights of what has been delivered:

  • Most Bush-era tax cuts have been made permanent
  • Jobless unemployed insurance benefits for 2 million long-term unemployed were extended for a full year
  • A Medicare reimbursement cut of 27% has been prevented
  • The top tax rate has been increased from 35% to 39.6% for individuals earning over $400,000 and couples earning over $450,000
  • Taxes on high income taxpayers will also increase on income from capital gains and dividends as well as inherited estates
  • Blocked a provision that would have made millions of middle class taxpayers subject to the Alternative Minimum Tax (AMT)

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How to File for Unemployment Benefits

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There are millions of people that are currently unemployed and looking for work across the country.

Unfortunately, you just joined their ranks and find yourself on the wrong end of a pink slip.  You’ve never been unemployed and have no idea what to do.

How do you file for unemployment benefits?  Where do you turn?

You’re frustrated, lost, and perhaps a bit ashamed.

Don’t worry.  Every employer that has ever employed you paid into the unemployment insurance fund on your behalf.

It is now your turn to get to use that fund while you get back on your feet to find your next job.

How to File for Unemployment Benefits - 3 Steps

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What is Glass-Steagall and Why Do WE See it in the News?

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One of the subjects that is often covered in the financial news, especially as talking heads try to figure out what can be done to avoid another financial crisis, is the Glass-Steagall Act.

Many people don’t exactly understand why this old law — parts of which were repealed in 1999 — is still a topic of conversation, and why it matter so much.

Brief Overview of the Glass-Steagall Act

Passed during the Great Depression, the Glass-Steagall Act is also called the Banking Act of 1933.

Glass-Steagall was designed to prevent some of the problems that caused the Great Depression, mainly the difficulties caused by the widespread failure of banks.  The Banking Act of 1933 included the creation of the FDIC and it also expanded the role of the Federal Reserve.

However, the item that is most emphasized about the Glass-Steagall Act, particularly in a post-2008 world, is the prohibition of commercial banks from participating in investing.

Part of the problem ahead of the Great Depression was that Main Street banks began underwriting corporate stocks, and even floated bond issues.  With all of these Main Street banks exposed to Wall Street, the crash of 1929 was hugely devastating.

The idea of Glass-Steagall was that banks separate themselves out by the type of banking they did.
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Are You Ready to Fall Off the Fiscal Cliff? What You Need to Know if the Bush Tax Cuts Expire

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The times they are a changin’ for taxes in the United States if legislation doesn’t change things soon.  Most americans are unaware of their taxes will be reshaped by the impending “fiscal cliff.”

The phrase that is being tossed around in the media is “falling off the fiscal cliff” or “taxmageddon”, and both are fairly accurate as to the repercussions.

Understanding exactly what is going to happen if we fall of the fiscal cliff is critical to your personal finances for 2013, so we’re going to break down some of the big points for you.

Repercussions of Falling Off the Fiscal Cliff

This list is pretty terrifying unless you enjoy paying higher taxes.

Expiration of Payroll Tax Cut

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Is the Curtain Finally Coming Down on the Payroll Tax Cut?

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In what seems like an annual rite in Washington, DC, the extension of the social security payroll tax cut—a.k.a., the “payroll tax cut”—is once again up for debate.

The cut was first implemented in 2010 under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.  It provided for a 2% reduction in the employee portion of the social security payroll tax, from 6.2% to 4.2%.

The cut was set to expire at the end of 2011, but was extended to the end of February, 2012, and then ultimately through the end of the year.

But this year it’s looking like an another extension of the cut may not happen.

No political consensus to extend the payroll tax cut

With the presidential election and the prospect of a lame duck Congress looming there is little debate on the Payroll Tax Cut extension.  Concern is also centering on the still large federal budget deficits which will be partially reduced through the expiration of the payroll tax cut.  If anyone has serious intentions of extending the cut they’re laying low right now.

Very low.

If things stay as they are on January 1st, 2013 the Payroll Tax Cut will expire.

Why the payroll tax cut is a true middle class tax cut

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What is QE3 (Quantitative Easing) and How Does it Affect You?

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Last month Federal Reserve Chairman Ben Bernanke announced the roll out of QE3—the third installment of a plan to intervene more directly into the financial sector of the U.S. economy.

We hear and read a lot about it in the media and on the web, but how much does it affect us?

As individuals, very little; but collectively, the effect is more substantial.

What is QE (quantitative easing)?

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5 Tips to Help You Deal with Economic Uncertainty

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We live in uncertain economic times.

No one knows what will happen next. Between a difficult job market, a housing sector that refuses to recover, and Europe on the brink of complete financial disaster, it’s easy to feel anxious about your money.

Will we see another recession? Could things turn around and be great? Are a eurozone collapse and slowing growth in China about to dump us into another global financial crisis? While you want to be prepared for the possibility of economic problems, it’s not a good idea to let fear rule you.

Once you let fear master you, you start making very poor decisions based on that fear.

Whether it’s making a bad investment decision, a risky business choice, or sabotaging your relationships, fear and anxiety can lead to problems in your finances and your life.

Before you let your worries about economic uncertainty turn into a full-blown financial emergency, it’s a good idea to take a deep breath, step back, and consider these 5 tips to helping you cope with the uncertainties that come in an economy like what we’re seeing now:

Tips to Help You Deal With Economic Uncertainty

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What is LIBOR and the Scandal that Rocked It?

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If you’re a faithful news follower, you’ve likely heard about the recent LIBOR scandal but like many, you might not know anything about LIBOR or the why the scandal is big enough to make international news.

What is LIBOR?

LIBOR is an acronym for the London InterBank Offered Rate.

Here’s how it works: Banks, just like other businesses, sometimes need extra money.  Let’s say that Bank A wants to make a large commercial loan but to lend the money would put them below certain capital requirements but only until other payments and deposits come in.

Bank B happens to have an excess of cash on their books and as any good banker knows, cash sitting around doesn’t make any money so they’re eager to lend some of their cash.  Bank A and Bank B come together and work out the terms of a short term loan, but how do they agree on an interest rate?
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