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An Early Look At The Possible 2013 Tax Rates Increase

May 29, 2012

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Jon

Call it Taxmageddon, a fiscal cliff or just a nightmare, the impending 2013 tax rates increase could turn out to be a disaster for taxpayers. As it stands, there are several tax cuts set to expire at the end of this year. All of which could impact your income and the economy.

The economic impact of major tax hikes should be enough for Congress to act. But that’s not all. There are also impending spending cuts going into effect on Jan 1.

What will most likely become a key part of the election debate, the 2013 tax rates won’t be dealt with until December. This leaves a gaping void for taxpayers and businesses on how to proceed for the rest of the year.

This is why it’s never too early to look at potential tax changes. It might save you money later. Of course, to do that, we need to look at the potential 2013 tax rates.

The 2013 federal income tax brackets were finalized with the signing of the American Taxpayer Relief Act. Continue Reading…
Happy Hour: Facebook Divorce And A Dumber Congress?

May 25, 2012

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Jon

Welcome to Happy Hour and the start of Memorial Day weekend. While you’re lounging around enjoying the three-day weekend, take a look at what I’ve been reading this week.

Divorce Over Facebook

It seems Facebook is great at destroying two things. First, its market value. Second, is marriages. A recent U.K. survey shows that Facebook has contributed to an increase in divorces. More than 30% of divorce filings have the word Facebook in it. Either, the openness of social networking has a dark side or people shouldn’t post everything about their lives on Facebook.

A Dumber Congress?

A lot can happen in 7 years. Just look at the U.S. Congress. A new study shows that today’s Congress speaks at a 10th grade level. Not bad, until you compare it to 2005 Continue Reading…
Prepaid Debit Cards and Your Savings

May 24, 2012

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Jon

The prepaid debit cards market continues to grow.

Bank leviathan, JP Morgan Chase, thrust itself into the prepaid debit card market recently by launching the Chase LiquidSM at about 200 branches. The Campus Edition Prepaid Card, an American Express card, also popped up this month to target consumers who don’t qualify for credit or charge cards.

With the hubbub about these new cards, it’s important to consider how any prepaid debit card could be beneficial or detrimental to how you save money.

Control Spending

With a prepaid debit card, it’s up to you how much money is available on the card from which purchases are deducted. The money you put on the card is all you have available. Discipline is essential. You must save and spend wisely. Otherwise you may dip into your savings just so you can charge more to your prepaid card. Continue Reading…
New Financial Literacy Campaign A Good First Draft

May 22, 2012

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Jon

A new financial literacy campaign was recently released by the White House that covers a financial education plan for children. The best part, it starts at home.

The new campaign, that was put together by the President’s Advisory Council on Financial Capability, is called, Money as You Grow. The new site offers guidance for parents and teachers that cover 20 financial lessons for kids, spread across five age groups.

The Advisory Council was originally introduced in 2010 to find ways to improve youth financial literacy. It took about a years worth of research, to create this new campaign, which was ten months too long. Much of what is recommended in the guide has been touted as necessary by the personal finance community for years. That said, there are many important topics covered that everyone should know and it does offer some general guidance on what to cover. Continue Reading…
Happy Hour: Facebook ($FB) IPO Reminders & Drinking Game

May 18, 2012

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Jon

I’m officially done with the Facebook IPO. With CNBC becoming the “All Facebook, All Day” network today, I’ve had enough. So in that vein, I’ll pass along the last few ~~useless~~ useful tidbits of information I have come across this week.

Facebook IPO Drinking Game

This is probably the coolest thing to come out this week. Something that finally got back to the college roots of Facebook and I secretly believe is the product of the last Facebook Hackathon. The Facebook IPO drinking game. You might want to wait before the stock opens to get started.

Opening Bell on Facebook

If you do get into the Facebook action, I wish you luck in your financial endeavors. If you got in on the IPO congratulations, you’re one of the few and should be set for a first day profit, if you sell. For the not so lucky, the scheduled open is set for 11 a.m. eastern time. I would plan on Facebook opening at that time, but don’t be surprised if it’s fashionably late.

Limit Orders, Please

If you plan on buying or selling Facebook in the open market today, here’s a few things you should know: Continue Reading…
52 Reasons To Not Buy Facebook On IPO Day

May 17, 2012

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Jon

The Facebook IPO has attained a celebrity status and warrants caution for all those would be buyers in the open market on IPO day. I hesitate to mention the roaring ’90s internet boom and bust, but when news comes out of people betting their kid’s college savings on Facebook, it’s a reminder of that irrational exuberance all over again.

The IPO alone will give Facebook a valuation of $106 billion at the current IPO price. The only reason I’d try to get in on the IPO is to flip the shares. I’ll gladly take the quick profit, knowing there is too many people willing to pay too much for a company that doesn’t deserve the valuation.

The biggest concern with Facebook going forward is how will it turn all those friends and likes into big dollar signs. So far it hasn’t found a way to do it. If you think Zuckerberg, and the Facebook crew will succeed in doing so, go ahead and buy. I’ll even wish you luck. But I’m skeptical and have a few reasons to be concerned about buying on IPO day:

1. There is too much of a novelty factor surrounding the IPO, just so people can say they own Facebook. Continue Reading…