Smart Money Links 4U

If your employer stops withholding Social Security taxes on your paycheck, expect to take home less money in early 2021. The IRS has released long-awaited direction on the payroll tax cut President Trump ordered in August — just four days before the new rules take effect Sept. 1. According to the new guidance, employers that don’t withhold payroll taxes between September and December 2020 will be responsible for withholding those taxes during the first four months of 2021. Translation: If you get a bigger paycheck during the last four months of 2020 due to the temporary payroll tax break, don’t be surprised when you have skimpy paychecks  between January and April of next year, due to more withholding. “Essentially, the Treasury Department seems to be encouraging employers to stop withholding now through the end of the year, and then double withhold for the first four months of 2021,” wrote Joe Bishop-Henchman, vice president of tax policy and litigation for the National Taxp...

Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners . Have you got money to burn? Just all kinds of extra cash lying around? Heck no. So here’s a reality check: You’re almost certainly paying too much for cell phone service. The average cell phone bill has climbed to $157 a month, according to a J.D. Power study. Holy cow, that’s nearly $1,900 per year! It doesn’t have to be that way. We’ve found a discount wireless carrier where you can pay a lot less — and you can even get double the data and minutes for the same price. It’s called Tello , and it makes it super easy to switch. It’s quick and simple to choose a wireless plan based on how many minutes and how much data you want. Monthly rates range from $5 to $39, and until May 29, it’s giving current and new customers double the data and minutes at no extra cost. How to Get Double the Data and Minutes (on P...

As sales increasingly move online due to the “new normal” of the pandemic, those who invest their time and money in retail arbitrage could find themselves bringing in substantial income, whether as a side gig or new full-time venture. What’s retail arbitrage? Simply put, it’s the practice of buying products from retailers when they are on clearance and then turning around and selling them on Amazon and other online retailers for a profit But as you grow your business, you’ll need to find a way to make it easy for customers to find you and buy your products. At some point you’ll probably start thinking about platforms, including one of the most commonly used: Amazon FBA (Fulfillment by Amazon). In this post you’ll find: What Is Amazon FBA? How to Get Started with Amazon FBA Pros and Cons of Selling With Amazon FBA Quick Tips for Success With Amazon FBA What Is Amazon FBA? “You sell it, we ship it.” That’s Amazon’s sales pitch for Fulfillment by Amazon (commonly called Amazon ...

Dear A., There’s no magic ratio here. And as someone who’s hoping to eventually buy a home, I wish there was. The personal finance business loves its rules of thumbs: Save 15% for retirement, always put 20% down. All those rules make it easy to think there’s some magic in those numbers. Save X% and it’s 100% guaranteed you’ll never run into financial trouble. Here’s the thing, though: The idea that there’s a single magic number that will work for everyone is utter nonsense. But it’s more satisfying to make up a blanket number that works for everyone than it is to shrug our shoulders and say, “Depends on your situation.” Homeownership still makes sense for most people who can afford it, so I’ll preface what I’m about to say that I fully support your decision to buy a home.  Renting often gets dissed as throwing away money each month. But it’s easy to forget that when you rent, you’re buying the ability to easily pick up and move if you need to. It buys you the right to make su...

You figure you won’t get financial aid because your parents make too much money to qualify. So there’s no reason to waste your time filling out the FAFSA, right? Wrong. But it’s a common misconception (don’t worry, we’re grading on a curve). For the 2019-20 school year, 71% of families filed the Free Application for Federal Student Aid (aka FAFSA), down from 83% two years ago, according to a report from Sallie Mae and Ipsos . The No. 1 reason for the decline: Families said they didn’t think they’d qualify. The FAFSA is the form you use to report family information used to determine your federal financial aid package, including student loans, scholarships, grants and work-study. Eligibility for financial aid depends on a number of factors (we’ll explain in a minute), but families who assume their income is too high to qualify for need-based aid could be leaving a pile of free money and low-interest loans on the table by neglecting to fill out their financial information. Do you ...

You figure you won’t get financial aid because your parents make too much money to qualify. So there’s no reason to waste your time filling out the FAFSA, right? Wrong. But it’s a common misconception (don’t worry, we’re grading on a curve). For the 2019-20 school year, 71% of families filed the Free Application for Federal Student Aid (aka FAFSA), down from 83% two years ago, according to a report from Sallie Mae and Ipsos . The No. 1 reason for the decline: Families said they didn’t think they’d qualify. The FAFSA is the form you use to report family information used to determine your federal financial aid package, including student loans, scholarships, grants and work-study. Eligibility for financial aid depends on a number of factors (we’ll explain in a minute), but families who assume their income is too high to qualify for need-based aid could be leaving a pile of free money and low-interest loans on the table by neglecting to fill out their financial information. Do you ...

Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners . If you have student loans, you’ve probably dreamt about the day you make your last payment and can kiss that debt goodbye.  The recently passed $2.2 trillion coronavirus rescue package covers a forbearance period, now extended through December 31, 2020, which could relieve some financial stress for federal loan holders. That means you don’t have to make payments on your federal loans through the end of the year, with zero penalties.  A dream come true, right? But before you stop making your payments, determine if this is the right call for you. There are some instances where you’d want to continue to make these payments, so make sure you’re asking the right questions that’ll lead you to the smartest decision for you . Now, if there’s no harm in holding off on these payments, soak up the relief. ...

Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners . The economy is in the dumps. Tens of millions are unemployed. Expanded unemployment benefits have expired, leaving them unable to pay bills. Politicians are deadlocked over stimulus relief. So why is the stock market doing so well? Seriously, the S&P 500 stock index just set an all-time record, beating out its previous high. What gives? Why the Market Is Good — Even in Bad Times Here’s why Wall Street is so out of sync with Main Street: 1. Small businesses are struggling, but they aren’t represented on stock indexes. When you hear the stock market had a good or bad day, they’re talking about the major stock indexes like the Dow Jones Industrial Average, the S&P 500 and NASDAQ. These track the stock prices of America’s biggest corporations. “But guess who’s not represented in a stock index? Your ...

Heading off to college? We have some tips to help you make the best money moves your first year. OK, you may not want to hear ancient advice from this writer (Bowling Green State University class of 1998), so we asked some upperclassmen and a grad who’s perhaps closer to graduation than retirement. Those upperclassmen bring first-hand knowledge to the table: When the now-senior class started college in 2017-18, 86% were awarded financial aid , and among those who went to public institutions, 46% took out student loans. Many of our respondents admitted they might not have listened to their own advice when they were freshmen — but heeding these words of wisdom could save you money and help you avoid debt long after you’ve finished your final exams. Advice I’d Give My College Freshman Self College kids are busy. So when we say we “spoke” with them, we talked on the phone, we emailed, we Zoomed and we texted with them. Here’s their advice to avoid a freshman financial fallout (almost...