Five Lives

Tom Welsh - Humble Dollar

WE GO THROUGH phases in our financial life, just as we do in our biological life. There seem to be a least five financial phases that adults pass through, each with their own priorities, risks, opportunities and tradeoffs.

Here’s how I would think about those five phases:

1. Party Time (ages 25 to 30)

Yes, you’re starting a career, and you want to get ahead and make money. But in all likelihood, your focus is your social life—and so it should be. Still, amid all the fun, throw in some sober financial management. Avoid digging a hole for yourself with high-cost consumer debt, notably credit card debt and car loans. Participate in your employer 401(k) plan at least up to the minimum required to get the full amount of any matching employer contribution. Finally, in your taxable account, try to save for the down payment on your first house using moderate-risk investments, such as investment grade bonds.

What Is a Trust Fund and How Does It Work?

By Cari Wira Dineen — Jun 15, 2022

Trust funds often get a bad rep—too often, we assume the people who inherit them are spoiled, entitled and ultra wealthy.

But that’s not actually true (or doesn’t have to be). Sure, trust funds might be a good place to park your cash if you’re a millionaire. But you don’t have to be rich to make a trust fund a part of your financial toolkit. A trust fund can be a useful component of your estate planning, (in addition to writing your last will and testament and picking your children’s guardians). That's especially true if you want to help your money get to your kids without a hitch when you pass away.

October Tax Deadline Is Here For Millions Who Filed For An Extension. What Happens If You Miss It?

Susan Tompor, USA TODAY Mon, October 17, 2022

Kicking the can down the road by requesting a six-month extension for filing your taxes – as a staggering nearly 19 million taxpayers did this year – means plenty of people are looking at an Oct. 17 deadline for filing their federal income tax returns.

"Yes, we are busy. It's not as bad as the first round of the busy season, but we're still pretty busy getting the individual returns prepared," said Robyn Fuller, a certified public accountant and founding partner for J&F Advisors, a small accounting firm in Detroit.

How to Legally Avoid The Gift Tax on Money

Eric Reed Thu, October 20, 2022

The gift tax is a tax levied on any unilateral transfer (a gift) from one person to another. The federal tax is aimed partially at making sure wealthy families don’t use gifts to bypass the estate tax.

The federal gift tax applies to any kind of taxable assets, including cash, securities and real estate. When the gift tax applies, it is the donor who pays, meaning that if you give a taxable gift you owe any applicable taxes. If you receive a gift, it is rare, if ever, that you owe taxes.

The 10 Commandments of Wealth and Happiness

Stacy Johnson • August 17, 2021

I've been offering money advice for more than 35 years. Here are the 10 most important things I've learned. I’m now financially independent, but I didn’t get this way overnight. Nor did I do it by selling books, offering seminars or appearing on “Oprah.” I did it the same way you’re doing it: one paycheck at a time over long periods of time.

A few years back, one of my young staffers suggested I condense everything I’ve learned into a few simple ideas to serve as a guide to those starting out, starting over or maybe realizing they’re not where they’d like to be. While certainly a challenge, it’s a worthy one. So here goes: the 10 commandments of achieving financial independence — and maybe getting a little happier while you do it.