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The Power of Compound Interest

One of the most basic economic concepts that affects personal financial decisions is compound interest, the idea that savings and investments grow based not only on contributions but is enhanced by interest earned on contributions and previous interest. Conversely, compound interest hurts borrowers, especially on high interest loans like credit cards. Get informed with this…

Planning to refinance your mortgage?

A rush to refinance mortgages in light of the super low mortgage rates is facing a logjam of applications. According to Katy Mclaughlin writing for The Wall Street Journal, you need to take these steps: 1. Unfreeze your credit. Many people froze their credit to protect against fraud. Now is the time to thaw your…

So you thinkk your mortgage is saving you on income taxes… think again

From my favorite financial guru, Jonathan Clements: “Mortgage interest is tax deductible, but the tax savings are often less than we imagine—and there may be no tax savings at all. Suppose we’re married and our itemized deductions—including $13,000 in mortgage interest—total $26,000 in 2019. Sound impressive? Remember, we could always claim the $24,400 standard deduction for…

Should you retire with a mortgage?

More and more Americans are retiring with a mortgage. With low interest rates many financial advisers suggest it is better to have a mortgage and keep other funds invested. Some people delight in getting a tax deduction for mortgage interest. However, too many taxpayers who do not prepare their own taxes do not understand how…