In an interview with Linda Koco, writer for insurancenewsnet.com, I advised that people who are contemplating some estate planning should wait a few weeks. 

She quotes me as saying, “Our firm has not done any estate planning in the last two months,” comments Rick Kahler, a certified financial planner and president of Kahler Financial Group, a wealth management practice in Rapid City, S.D. “The attorneys for our clients won’t even meet with us. It’s become ridiculous for us to talk until we know what we’ve got. We don’t even know how to draft the plans right now” without making it too complicated and costly. Continue Reading »

One of the keys to financial independence is affordable housing. In many cases, you can gain valuable financial breathing room by paying off or refinancing your mortgage. Here are some points to consider before deciding to do either one.

Paying Off the Mortgage

If you’re younger than 40, funding your retirement probably comes first. Put your investment dollars into 401(k) plans and IRAs before you start paying off your house.

The mortgage interest tax deduction is an emotional rather than a financial reason to keep a house payment. The deduction is only a percentage of the total you pay out, so its relatively small benefit is far outweighed by the larger benefit of not having a payment.

For homeowners over 50, focus on paying off the mortgage. In some cases, it might even make sense to do so by taking money out of your investment portfolio. Continue Reading »

Here are some of the specifics of the tax agreement that President Obama struck with leaders of the Senate and House .  I gleaned much of this information from the Wall Street Journal.  When I could find the information, I’ve also cited the approximate cost/savings.

• The agreement is a two-year extension of the current tax rates enacted under former President George W. Bush which will mean a savings to taxpayers of $615 billion.
• A 2% rollback of individuals’ payroll (social security) taxes at a cost of $226 billion.
• The continuation of the child tax credit, earned income tax credit and a credit to help students afford college at $34 billion. Continue Reading »

President Obama’s announcement that he struck a deal with House and Senate leaders to extend the current tax rates for all Americans has something for everyone to like or hate. 

Fiscal conservatives and taxpayers are certainly happy with the extension of the rates, which were to be the largest in modern history.  They certainly would have added a significant strain to the fledgling economic recovery.

Fiscal liberals are happy with the extension of unemployment benefits from the current two years to three years and the retention of several tax rebates for the poor.   Continue Reading »

I once had a client couple tell me, “The only place we ever argue about money is in your office.”

After a flash of anxiety over whether I was failing to help this couple communicate, I realized what was really going on. Of course my office was the only place they argued about money. It was the only place they ever discussed money.

For couples who want a healthy relationship with each other and with money, it is essential to break the taboo against talking about money. Sometimes, especially at first, those are difficult and contentious conversations. The following suggestions may make it easier to begin those discussions.

Continue Reading »

The Wall Street Journal recently cited someone named Kahler, but it wasn’t me. This time, the financial advice is coming from my father, Dick Kahler, who has loaned my nephew the money to buy his first house. This transaction is featured in a November 27  article by Anne Tergesen on intrafamily loans.

Tergesen discusses these loans as a way for the lenders to make money as well as for the borrowers to save money. She offers some excellent advice, including not to make such a loan to a family member with bad credit, to make the payments through an escrow service, and for lenders to protect themselves with liens on the property in the same way a bank would. To read the entire article, click here.