Military Holiday Homecoming Surprises

Guest post by Marcie


While I save and "spend within my means" (sometimes I really hate that term!) during this holiday season, sometimes it can get a little frustrating knowing that I need to keep within my budget for gifts. It's pretty hard not to get caught up in the 'buying' madness. 


First it was just Black Friday, but now I need to resist spending for Small Business Saturday AND Cyber Monday, too?! And while subscribing to Groupon and other local coupon deals help save money, it's not been helping me to resist the temptation to go beyond that budget and shop 'til I drop. Because, heck, it's 60% off for crying out loud!!!!


I needed to come back to Earth before I destroyed my checking account. 


I began to search for heartwarming photos and stories to help me see beyond the lie that having the perfect gifts would automatically equate to a perfect holiday season. I found it.


The following videos are surprise holiday homecomings from our men and women who sacrifice every day: our military. I often forget that many families go without the one thing they want most, their friends and family...


After watching these, much humbled and a bit puffy-eyed, I am reminded how thankful I am for these families that serve together. I hope you'll join me in this spirit and watch these videos. 

And a whole montage of great surprise military holiday homecoming here, too.

Thank you, United States Military, for serving. I wish you a peaceful and safe holiday.

Free Tax Saving Strategies Help (Part Two)

Even this cat disapproves of this tax organizing technique!

Last month we posted Part One of a two part blog: great strategies on how to save on your 2011 taxes this year. Click here to visit the previous blog. Here are some more great tips!:

• If you expect to owe state and local income taxes when you file your return next year, consider asking your employer to increase withholdings of state and local taxes (or pay estimated tax payments of state and local taxes) before year-end to pull the deduction of those taxes into 2011 if doing so won't create an alternative minimum tax (AMT) problem.
• Estimate the effect of any year-end planning moves on the alternative minimum tax (AMT) for 2011, keeping in mind that many tax breaks allowed for purposes of calculating regular taxes are disallowed for AMT purposes. These include the deduction for state property taxes on your residence, state income taxes (or state sales tax if you elect this deduction option), miscellaneous itemized deductions, and personal exemption deductions.
• Accelerate big ticket purchases into 2011 in order to assure a deduction for sales taxes on the purchases if you will elect to claim a state and local general sales tax deduction instead of a state and local income tax deduction. Unless Congress acts, this election won't be available after 2011.
• You may be able to save taxes this year and next by applying a bunching strategy to “miscellaneous” itemized deductions, medical expenses and other itemized deductions as these deductions are allowed only after exceeding a percentage of adjusted gross income.
• If you are a homeowner, make energy saving improvements to the residence, such as putting in extra insulation or installing energy saving windows, or an energy efficient heater or air conditioner. You may qualify for a tax credit if the assets are installed in your home before 2012.
• Unless Congress extends it, the up-to-$4,000 above-the-line deduction for qualified higher education expenses will not be available after 2011. Thus, consider prepaying eligible expenses if doing so will increase your deduction for qualified higher education expenses.
• If you are age 70-1/2 or older, own IRAs and are thinking of making a charitable gift, consider arranging for the gift to be made directly by the IRA trustee. Such a transfer, if made before year-end, can achieve important tax savings.

Remember, make sure you are working with a pro who can help you navigate all the complex tax strategies mentioned here.  Have a dialogue!

Should I Refinance?

This is one of the most frequently asked questions from clients.  Here are some rules of thumb:

• Mortgage rates are historically low right now and most likely the lowest we will ever see so it is wise to take advantage of the opportunity in today's economic environment
• You need to have at least 20% equity in your home to refi
• You should be planning to stay in your home for at least 3 years or longer to offset the cost of the refi
• It only makes sense if you can lower your interest rate by a 1/2 percent or more
• Always get a fixed rate loan

Many folks think that getting a 15 year loan is a smart deal as their house will be paid off quicker.  While that is true, I always counsel folks to get the 30 year fixed loan because it doesn't lock you into the higher payment.  And you always have the option of paying extra principal on your loan and shortening the payoff time.  And, for example, what if you lost your job or had significant unexpected expenses to deal with, then the 30 year loan is a welcome relief.  A 30 year loan gives you peace of mind at night. 

What about the costs of refinancing?  Many mortgage companies promote "no cost mortgages" This certainly sounds appealing.  You pay no costs to refinance.  But is it truly free?  Unfortunately, there is no "free lunch" in business.  You will pay these costs one way or another.  Your interest rate will be higher with the "no cost mortgage".  Anywhere from .5% to 1.25% and over the period of 30 years, this higher interest rate really adds to the cost of the loan.  In most cases, it makes more sense to pay the closing costs either out of pocket or added to the loan balance. 

Bankrate (www.bankrate.com) is a good place to start to get an idea of the current refinance rates.  That way, you are are prepared to talk to a lender with competitive information.  The refi marketplace is highly competitive so do your homework!