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Happy Hour: Google Fiber And Redesign

December 14, 2012

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Jon

Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

Google Fiber

There is a disruptive experiment happening in Kansas City. It attacks the very nature of cable/internet providers. Yet, those companies don’t seem too worried about the results. Or aren’t showing their true feelings about it. But they should be.

Kansas City is the test site for Google Fiber. You see, Google has a theory that internet speeds are woefully slow for the current needs of customers. It’s not only about speed, though. Google thinks they can offer a much faster internet service (we’re talking 700Mbps or more). One that includes all your cable TV channels. And do it for less than what your cable provider is charging you now.

We haven’t seen a potential speed increase like this since we went from dialup to cable internet. Only this time, it will affect how we watch TV. Companies like Amazon, Netflix and Disney have already made moves to adapt. It will be interesting to see what new businesses pop up as this becomes widely available. Continue Reading…
Tax Day 2014: Tax Deadlines For The 2013 Tax Year

December 11, 2012

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Jon

With tax time right around the corner, it’s always good to have the important tax deadlines marked on your calendar before you plan your next tax return. Soon those W-2s and 1099s from your employer, bank, and broker will start arriving. You’ll have a better idea if you are getting a refund or owe taxes. Then, you can file your tax return based on the date that works best for you.

Official eFile Date

Expecting a refund this year? The IRS has already announced a late start to the 2013 tax season. That could mean a delay of a week or two beyond the normal January 21 start date. Once the IRS releases an official date, I’ll update this information. That doesn’t mean you should put your tax return on hold until then. You might as well get that tax refund back as soon as possible, unless you like lending money to the government for free.

If you don’t eFile your taxes, this is the year to start. It’s a fast, convenient, and easy way to file your tax return online and you have several choices (I recommend Turbotax). This limits the possibility for errors. Plus you get that refund back much quicker with the option to directly deposit funds right into your savings account.

Now, if you owe taxes you might want to wait till the tax deadline to pay. Just keep the money owed in an interest bearing account until the due date and squeeze every last penny out of it before you send it off to the IRS. Continue Reading…
Happy Hour: Honest Jobs And Index Extravaganza

December 7, 2012

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Jon

Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

Honest Jobs

Congratulations nurses! A recent Gallup poll had participants rate the honest and ethical standards in different professions. Nurses were viewed as the most honest and ethic people.

What’s surprising is college teachers and clergy falling to seventh and eighth. Even more surprising, car salespeople beat out Members of Congress for dead last.

Index Extravaganza

If indexers are annoyed by the lack of choices they have, things are looking up. The Nasdaq announced the possible creation of 24,000 new indexes, with 4,000 being introduces this week. As if the ETF and index fund space wasn’t crowded enough. The idea is to get as specific as possible with the indexes. Basically breaking things down to the most minute detail. Continue Reading…
Gifting The 21st Century Savings Bond

December 3, 2012

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Jon

For decades the savings bond was the gift you knew would last past the year. That was the idea. It was the easiest way to gift money that would grow over time.

A Little History

The bulk of the savings bonds I got as a kid happened before I was teenager. I may have received some for eighth grade graduation, since all those bonds were earmarked for college. A savings bond gift with 4 years to go was a wise and safe investment. In the end, I had enough to buy a semester of books and a few late night pizzas – which was the point. Looking back, you have to wonder what that money would have grown to under a solid investment plan. And how many more pizzas I could have purchased as I studied for exams.

I can’t complain too much. The rates on those savings bonds were great compared to the interest rates we have today. Back then, there really wasn’t any other option either. You couldn’t open a brokerage account with $25, $50 or $100. That would barely cover the brokerage fees. The internet didn’t even exist yet. Discount brokers hadn’t been invented. Those two missing pieces would eventually bring investing to the masses. The low-cost transaction fees and easy account access of today almost makes the savings bond a thing of the past. Continue Reading…
Happy Hour: Stagnation and Getting Better

November 30, 2012

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Jon

Welcome to the end of the week and another edition of Happy Hour! Just sit back, relax, and enjoy your end of the week roundup of all things interesting in the land of money.

Stagnation

The Tax Foundation released its summary of federal income tax data. It’s a jumble of tables, numbers and percentages that show a major issue – income stagnation. Even though income and taxes increased for the year in question.

Over the past decade, income has been relatively stagnant. Meaning it just kept up with inflation, nothing more. Which you can speculate as a contributing factor to the excessive debt taken out during that same period. Which isn’t a good thing. Our economy requires two things to grow – lower unemployment and higher wages. The former is slowly improving, the latter needs some help.

Getting Better

Charlie Rose interviewed Warren Buffett and Carol Loomis this past Monday. The first few minutes Warren pushes his higher taxes agenda. But it gets better after, covering past and present topics. As usual, it’s a 54 minute lesson filled with a wealth of insight for anyone looking to invest. One thing to note, after the dismal topic above, even Warren believes the economy is getting better. Continue Reading…
How To Find Your Modified Adjusted Gross Income

November 29, 2012

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Jon

Your modified adjusted gross income or MAGI is used to determine your eligibility on a number of things. This includes several credits and deductions, Medicare Plan B premiums, and is most known for determining IRA deduction and Roth IRA contribution eligibility.

So, it’s a pretty important number to have handy. There’s just one problem. It’s not the easiest number to figure out.

What is MAGI?

Modified Adjusted Gross Income is your adjusted gross income (AGI) plus a few specific deductions. Since the number is entirely dependent on those deductions, it can change from year to year.

In order to find your modified adjusted gross income, you first need to find your adjusted gross income.

Find Your AGI

Your adjusted gross income is your total or gross income minus certain deductions, known as adjustments. Whether you know it or not, you figure this number out each year when you do your taxes. You can find it on: Continue Reading…

Happy Hour: Google Fiber And Redesign

Google Fiber

Tax Day 2014: Tax Deadlines For The 2013 Tax Year

Official eFile Date

Happy Hour: Honest Jobs And Index Extravaganza

Honest Jobs

Index Extravaganza

Gifting The 21st Century Savings Bond

A Little History

Happy Hour: Stagnation and Getting Better

Stagnation

Getting Better

How To Find Your Modified Adjusted Gross Income

What is MAGI?

Find Your AGI