March 2007 Archives

You may be able to save money on your taxes if you take advantage of an HSA, otherwise known as a health savings account.

A health savings account is simply a type of savings in which contributions made to the account are tax-deductible. Both earnings and withdrawals are tax free, so long as the money is used to pay for medical expenses.

This may be used to buy bandaids at the pharmacy or to pay for out-of-pocket medical expenses such as doctor bills not covered under your insurance plan.

To qualify for an HSA you must have an approved high-deductible health insurance plan. The minimum plan deductible is $1,050 if you are single, and $2,100 if you have a family plan.

The plan must also be considered an approved high-deductible health insurance plan by the IRS. If you are uncertain if your plan qualifies as such, contact your health insurance provider.

Here are some of the benefits and disadvantages of HSAs...

There are 5 filing statuses available to taxpayers:

• married filing jointly


• married filing separately


• surviving spouse


• head of household


• single

I will discuss each tax filing status and the related benefits and requirements.

Interest only loans have become increasingly more popular over the last several years. This type of mortgage allows the borrower to pay "interest only" as their mortgage payment.

The result is usually a lower mortgage payment, because the borrower is not paying anything towards the principle on the loan. This means that if your original loan was $200,000 after five years of interest only payments you still owe $200,000.

The question we will examine today is whether or not this type of loan is a good option for the consumer.

One of the most important financial decisions you will make is choosing a home mortgage.

Two main questions should be apparent when thinking of buying a home:

• How much should my mortgage be relative to my overall income?


• What type of mortgage is right for me?

The first question is by far the more important of the two. Ironically, the average person spends more time choosing between mortgage options and lenders than they do considering the proper amount they can afford.

Several factors should play into the decision of itemizing your deductions versus taking the standard deduction. Generally, if your total deductions are greater than the standard, you should itemize your deductions.

Almost everyone who owns a home carries homeowners insurance. But when was the last time you picked up your policy and read the fine print? How well do you know your coverages and their limits?

Did you know that your standard homeowners policy does not cover the average replacement cost of a diamond engagement ring? It doesn't even come close!

Over the next few minutes we'll examine how your homeowners coverage works and we'll offer a few money saving tips as well.

Woah!

Check out the incredible handiwork of Marc Sky (a.k.a. "the dollar artist").

I've never seen so many cool creations made out of dollar bills!

Enjoy...