You should start by determining if owning this rental property is in your long-term life plan (without considering the credit card debt). Below are my comments on some of the issues to consider including the true rate of return of the property, transaction costs associated with the sale, and how the rental property may impact your lifestyle and career goals.
Read MoreGenerally speaking, putting the money toward paying off high-interest credit card debt is going to help you the most, then keeping an emergency fund, and finally contributing to retirement plans. There are also traps to be wary of with 0% credit cards. It would help to build a complete financial plan considering your entire financial picture including. . . .
Read MoreCongratulations on giving yourself the foundation for financial freedom. If you were a client, I would respond to your "what's next?" question with asking you the same thing. What is next on your personal life agenda? Think about your major life goals you want to accomplish in your future. Retirement is obviously one of the major ones, but also think about whether you want to . . . .
Read MoreIt is possible for an LLC to issue something similar to stock, called membership units. Just like stocks, membership units divide up the ownership of the company amongst the owners of the units, allow the owners to vote for the directors of the company, and give them rights to share . . . .
Read MoreTaking the Standard Deduction does not eliminate all other deductions, but it does eliminate many of the most talked about deductions. The Standard Deduction can be take instead of taking Itemized Deductions from Schedule A, but there are plenty of other deductions and tax credits which are available.
Read MoreThere are a few questions imbedded in your bigger question, so I'll be taking them one at a time. Before starting, however, you will likely benefit from talking with a financial professional, at least CPA for doing your taxes this year. To answer your main question, assuming the property was never depreciated as an investment property, your share of the capital gains will be taxed at long-term capital gains rates. This should be a tax of 15% of the capital gain above the exclusion amount.
Read MoreAssuming the company closed and is out of business, the options will become worthless just like the stock. In which case, you would not want to exercise the options and there would be no tax implications. If you were taxed on the options/stocks in the past, it is possible you could have a positive impact on your current taxes.
Read MoreIt sounds like you have a good handle on your retirement savings based on your contributions to both the TSP and your workplace plan, assuming you are contributing at least 10% to 15% of your income. If so, begin investing outside your retirement accounts in a taxable investment account to fund other goals such as buying a home, starting a business, or taking a major vacation.
Read MoreYes, getting a paper divorce can help you financially but it can also be a financial negative depending on your personal situation. As with most things with Personal Finance, the answer is it will depend on a large number of factors related to your family's finances. Below are a few of the consideration that immediately spring to mind, which you will want to explore.
Read MoreWhile the concerns over the slower bootstrap method are legitimate and should be considered, I still believe bootstrapping for as long as possible is the way to go for the vast majority of enterprises because of the significant potential downsides of VC and Angel funding. Ultimately the question you want to ask is if it is possible to build your business through bootstrapping considering the concerns you identified. If it is, then I recommend going with bootstrapping as long as you can. Here are potential challenges with getting funding:
Read MoreThere are three ways to purchase Treasury notes directly; through a brokerage, through a bank, or directly from the U.S. Treasury. While they are considered free from default risk, Treasury Notes carry significant other risks including interest rate risk and inflation risk. This is especially true with today’s . . . .
Read MoreWhile the credit card company charging 16% interest is annoying, taking money from your 403(b) or any other retirement account to get rid of the debt may negatively impact you financially. Even though you can take the money out without the 10% penalty, you would still have to pay taxes on the money. You would likely lose money on the deal based on how the math works.
Read MoreOnce you begin earning income as a self-employed individual, you effectively become a business, and businesses are eligible to deduct health insurance premiums for their employees (you) as an above . . . .
Read MoreBased on what you have stated, your interest should still be deductible under the new tax law. Whether second mortgage interest is deductible is highly dependent on your individual circumstances, and many are confused by the new rules (as they are honestly quite confusing). You will want to . . . .
Read MoreYes, there is potential for relief from the IRS, but ignorance of the rules and weakness in English are most likely going to get denied. At this point you will want to contact a financial advisor and a CPA to help you with this. The CPA will help you in dealing with the IRS and a good financial advisor . . . .
Read MoreThe good news is you are choosing between two good options, so you really can't go wrong with either decision. If your student loans are subsidized loans, then the U.S. Government is paying the interest for you, so there is no reason to pay anything on the loans until you graduate. If they are not subsidized loans, then you may want to consider paying just the interest on the loans and then contributing to (or even maxing out) your IRA. This will give you the best of both worlds: being able to invest in your IRA and . . . .
Read MoreMy answer: neither is the optimal strategy – but that the home loan is a less-bad strategy. Your financial planner is correct about it being worse to use your IRA money to pay the loans. When you take money out of the IRA you will have to pay the 10% penalty plus income taxes, which should be 22% based on your income. This means to pay off the $50,000 debt you would need to take out . . . .
Read MoreGetting divorced won’t impact your right to your spousal benefits under your ex-husband’s work record, but other Social Security rules will limit when you can collect. You will likely have to wait for the retirement benefit, but you do have another option since you are disabled. . . .
Read MoreAs with many things in the financial world, the best answer is "a little of everything." You should get in the habit of investing in your retirement from day 1, even if it is a small amount. Those who put off contributing to their retirement for 'a little while' often find themselves 10 or even 20 years into their career with no retirement savings. To catch up they need to contribute huge portions of their income to retirement accounts. Here is my recommendation for what to focus on:
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