August 2013

30 Aug

Reduce Your Taxes by Contributing to a 401(k)

If you're like most people, you're probably looking for ways to decrease your taxes and increase the amount of your earnings that you get to keep. If your goal is to reduce taxes, there's an option that you may not have considered: Contribute more to your 401(k). The more money you can set aside in a 401(k), the more you get to deduct from your taxable income.

Scenario A
Let's assume you are in the 33% marginal tax bracket, under age 50 and able to contribute $17,500 to your 401(k) this year (the maximum contribution for 2013).

15 Aug

Tight Budget? Consider Increasing Your Insurance Deductibles to Save Cash

Do you find yourself thinking something like this every time you look at your monthly budget? "Money is too tight. I need to increase the amount that I pull from my savings each month just to make ends meet."

If that's your situation, you may have settled on one of two common solutions to your dilemma:

  1. Doing something (such as working more) so that you can generate more income or make greater withdrawals from your savings
  2. Saving money by decreasing spending on things like eating out, recreation etc.