Paying for college

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One of the questions I frequently get related to paying for college is should my kids pay part of the bill?  There is no right or wrong answer to this question.  My general advice to the parents is that whatever decision they make should be consistent with their family’s values and the other financial decisions they have made up to this point.

Here is a short list of some of the reasons to have the children pay part of all of ...

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Holding Cash

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There were two interesting articles about holding cash yesterday.  One was about retirees holding several years worth of cash  (click here to read) and the other was about companies holding cash on their balance sheet (click here to read) .  What is interesting is that both articles came to the conclusion that holding large amounts of cash is detrimental to overall performance.  However, both articles miss the same critical point – ...

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401(k) rollovers – make sure you know all the rules before you start

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Here’s why:

A 56 year old attorney left his job.  Soon thereafter, he did a 401(k) rollover into a SEP IRA.  The next year (age 57), he took $240,000 out of the SEP IRA account.  Because he took the money out of a SEP IRA before age 59 ½, he had to pay the 10% early withdrawal penalty, or $24,000 in taxes.  The fact that the money started in a 401(k) account, is irrelevant (Kim, 7th Cir).

Unknown to the attorney (and ...

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