 |
I heard that mortgage interest rates are at their lowest rate in
years. Is now a good time to refinance? |
| |
 |
Yes, interest rates are at nearly a 30 year low yet interest rates have jumped thirteen times (up) since June 2004 as of this writing (and they're expected to continue to rise). Whether you should refinance now depends on how long you plan to stay in the property and your current rate. Typically, if you could cut your interest rate by at least 1% to 2% and if you plan to stay in the property at least three years, you are a good candidate to refinance.
The easiest way to make this decision is by taking the total amount it will cost you to refinance and dividing that by the monthly reduction in your payment. For example, if the cost to refinance is $1,500 and your payment is reduced by $150 per month, you can assume you will break even within the first 10 months. We'd recommend refinancing when you can recoup your upfront expense within two years, unless you plan to stay in the property the full term of the loan. |
| |
|
I have many different mutual funds and have done quite well following your advice over the years. The problem is, I think I have too much of my portfolio in one arena. I don't want more than 40% of my investments in any one sector, so how can I find out what my mutual funds are invested in? |
| |
|
This is a good time to look at your portfolio's asset allocation. Many individuals invest a certain percentage of their portfolio in different sectors and never re-allocate. It often happens that particular sectors of an investor's portfolio grow faster than others and then you can end up with too much investment in one area of the market.
You should check your allocation at least once a year. Call your mutual fund companies or do your own analysis by going to the Morningstar website, www.morningstar.com. Morningstar is an independent rating company that gives you a complete breakdown and analysis of each mutual fund's investment's, including how much is invested in each sector. Good luck! |
| |
|
I am a sole proprietor and plan on putting my 13 and 15 year old daughters on payroll. How much can I pay them in 2006 and not have them pay income taxes? |
| |
|
For 2006, assuming your children have no other income, you can pay them up to $5,250 and not have them owe any federal income tax. Have them separately fill out a W-4 and claim EXEMPT. Keep this form in your files.
Pay them a fair wage, have them fill out time sheets for hours worked and pay them on a regular schedule such as weekly or monthly. The wages you pay your children (up to $5,000) through the sole
proprietorship is also not subject to Social Security, Medicare and FUTA tax and you still are able to claim them as a dependent on your tax return.
Again, always consult your CPA or accountant before you make any moves. Individual circumstances may vary. |
| |
