There exists a distrust of the financial system among certain ethnic and cultural groups in this country. If your parents or grandparents immigrated from Eastern Europe or Asia this is something you may want to pay attention to. Some people hide money rather than entrust it to a bank. In the fast paced financial world of today, this behavior is largely confined to the elderly. I recognize there are substantial amounts of cash locked out of the legitimate banking system due to the illegal nature of the activity producing it. But this story is about the elderly and their hard earned savings Continue reading
I can’t think of a greater gift from a parent to a child than the gift of an education. By gift what I mean is helping to matriculate a child through college; coming out the other end debt free. Continue reading
In the last installment I discussed what a terrific investment Microsoft ended up being for my family during a 20 year, and counting, holding period. I really do attribute much of that success to the risky behavior of youth and pure luck. But as has been said in the past, “I’d rather be lucky than smart.”
In this post I will describe some income tax strategies I have used for my family in the past. As a CPA and retired Certified Financial Planner I have more expertise than most in these areas; however, this post is not income tax advice which should be sought by you from an expert prior to trying any of these techniques. Continue reading
Can you save too much in your tax deferred retirement accounts? The short answer is, yes. The longer answer is perhaps, but most Boomers will never have to worry about it. The press is full of stories detailing the sad state of retirement funding for the Boomer generation and how they are woefully unprepared for what once was a distant retirement and is now upon them. Only recently have I started picking up on articles dealing with the equally serious problem of families who have saved too much, or at least too much in tax deferred accounts. Continue reading
As a CPA and former Certified Financial Planner people often ask me for investment advice. Please understand any advice given on my blog should be run by your investment and tax advisors prior to implementation. Goes without saying, but I said it anyway. My favorite question centers on what the best investment I ever made was. My usual answer is Mr. Softy – Microsoft (msft). It’s my favorite because my wife and I made a substantial investment in the company early in our marriage and held on for over twenty years. This investment allows me to demonstrate risk and patience with the same investment.
In the early 90s not every desk had a computer on it and certainly most families had not yet purchased a home computer. Though unless you were living in a cave you knew something of the Bill Gates story and recognized that personal computers were being purchased for office workers like crazy. The reason I took the plunge was an article I read in a business periodical on hot Texas afternoon, more of a biography of Bill Gates really. In the article he described how he had no intentions of getting into the pc business but rather wanted all of the pc manufacturers to use his software. With every pc sold Microsoft would receive a royalty for its operating system. As he explained it, there might be a dozen companies that fight it out in the pc marketplace, but it really didn’t matter to Microsoft who the winners were because they would win with every sale. I bought his argument and a few days later purchased 100 shares of msft. Continue reading