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Economic gifts to entice loved ones

As a parent, friend, kid, spouse whatever be your role in the family, social circle it becomes mandatory for you to locate the best deal and treat your loved ones with best gifts in all the seasons.
If I talk much on looking for deals, ways to save money it might sound usual. Rather I’m going to give you different perspective on what you can do one or more of these arts crafts work to entice the loved ones
1) Start learning terracotta jewelry making. You can make earrings, necklace, bangles and what not. All it needs is to join a professional terracotta jewelry making program, purchase some basic stuff needed for making the stuff, paint the jewelry in your preferred color, entice your loved ones by gifting them your work
2) Choose to crochet or knit a sweater, hat, cap, mitten, sock that fits your loved ones. Buy needles, yarn, sewing needles like tapestry needles etc. Look for training program on knitting and crochet in your locality, learn from professionals and present your work to your loved ones
3) Paper quelling is another interesting colorful art work to your loved ones in form of decorative piece, jewelry etc. Join training and have your creative work done
In all the above cases you present your work, effort and it feels extremely good to see the best job on your most loved ones. Good luck with your arts crafts gifts starting this year

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IRA Retirement Account Types

There are many different types of IRA – Traditional IA, Roth IRA, Self-directed IRA etc
Similarities – All of these are self-directed retirement investment schemes. In all these schemes we can choose to invest in equities, stocks, shares, fixed income products including bank CD’s, precious metals like gold,silver,platinum,palladium
Differences – Traditional IRA is pre-tax saving whereas ROTH IRA is post tax-saving
Traditional IRA is taxable upon withdrawal. ROTH IRA is not taxable upon withdrawal and 10% penalty on early withdrawal is deferred in case of ROTH IRA
Choose the one that fits right as both are good retirement options
Self-directed IRA – This is a popular IRA among real estate investment community as the amount can be withdrawn to purchase properties both primary as well as rental properties. The rent made needs to be credited back onto IRA. Talk to your IRA provider to see if they offer one

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Is HSA same as 401K?

Though they are different entities both invest in bank deposits, mutual funds, earn dividends, earn interest and the earnings grow tax free. HSA can be utilized to pay medical bills as well as one can utilize the amount in HSA to pay insurance premium while the person happens to be out of the job. Some 401k plans allow loans of about 50% of the amount vested with a maximum limit of $50000. However, 401k loans come with some restrictions
In case of HSA though this operates as an investment account whose earnings grow tax free it may not be possible to go for a loan against HSA. All we can do is use it for acceptable medical reimbursement.

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Money Making Hobbies

This is spring season and spring break is a perfect time to find some real good time that will help you encash your hobby. Follow these simple steps to turn your hobby into money making machine:
1) Write what you like – This is plain simple mantra. You can launch a professional website or you can confine your interest to a free blogspot and still make good revenue out of it. However, free blogspot does come with its own drawbacks. Hence, investing as little as $1 per year on domain with $1 per month hosting option does worth it. This can help you as potential career option in future
2) Teach your passion – Tutoring or teaching an often overlooked niche is the money spinner. With both parents making it to office day in day out if you have natural passion for teaching a subject you are interested in it will bring in lot of money. This can be as simple as teaching your native language to as complex as teaching a mathematical theory. If you are in grade IX teach grade VI. This will help you bringing extra cash
3) Take up part-time jobs – this will include petty jobs as small as working in a shop, car pooling, leasing your car when it is not being used. Don’t hesitate to be a chauffeur offering simple airport pickup and drop service, school pickup and drop service when you find any opportunity
4) Babysitting/Nanny Services- This is a lucrative career option that can be done on part-time during the summer or spring break. You can choose to offer babysitting services on an hourly basis. Be it your neighbor, friend, family. This can potentially turn to be a lucrative career option
5) Arts and craft work – Simple embroidery, jewelry making, doll making, knitting, crocheting and what not? Turn your art and craft passion into lucrative career. Conduct art craft workshop, bootcamps this break that will help you get school students participate in camp programs. This is a lucrative money making option
6) Gardening – Best for health, good for your family, healthy food and lots of peace.This is what gardening does bring in. Once you choose to grow at home, you can cut cost on vegetables and end up eating healthy organic vegetables at home. This also brings in feel good factor

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Bulk grocery purchase to save money in bulk

I went out for a shopping today. I was looking at the cost of groceries that I use on a daily basis including tooth paste, soaps,tissue papers, body wash to name a few. When I noticed the price tag I was able to see that the price of my regular toothpaste is up by 20 cents. This made me think what I can do best to save money towards my grocery purchase an unavoidable purchase made by all of us. Found some great ways to save big
How can your bulk grocery shopping help you save money?
Most of us concentrate on major items like bedding, bath, clothing, electronics to save during thanks giving day, cyber Mondays , Christmas deals, labor day sale etc. Most of us miss to see that by purchasing groceries in bulk for next 2 years( look at expiry date. Most of them can be used beyond 3 years), we can save closer to 20% to 30% on our grocery purchase. Depending on number of family members it may vary between $20 to $50.
1) Purchase tooth brush for your family in bulk – There are times wherein you get BOGO, coupons on free tooth brush etc. Avail all these opportunities
2) Purchase toothpaste in best deals available during thanks giving, Christmas sale. I’ve seen nearly 60% discount, packaged toothpaste sales saving big during these months
3) Purchase soaps, body wash solution – This can be a thanks giving day , black friday steal deal. Toiletries, perfumes will be on bulk discount with special coupons, clearance sale mainly during months of september, october, november, december
4) Look out for coupons while purchasing Laundry detergents for washing clothes. If you would like to avail coupon discount in bulk group of friends, family members can join and save big on such items
5) Purchase room cleaning solution, toilet cleaners, grease and stain remover for kitchen – This can be used for as long as 3 to 5 years. Again these items come as part of clearance, coupon sale on regular basis
6) Purchase new mob, gloves used while cleaning stove
These are some common simple purchases often overlooked during special days that come with deals like thanks giving day, labor day sale, memorial day sale, independence day sale and lots more. Make it a point not to miss this during this purchase. Always penny saved is penny earned.

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529 Alternatives

Have you found pregnancy positive? How does it feel like the moment you get to know that you will be responsible for the entire life of the cute little being in another few months. As a responsible parent the first thing that comes to our mind is 529 plan for your kids education. 529 alternatives does not necessarily rule out the 529 investment opportunity. The goal of this post is to talk about pros and cons of many different investment options that parents have at their disposal if they are hesitant to consider 529 as investment option for kids future education savings option as this is a mutual fund option same as 401K retirement option that comes with market risk exposure. Check out to see what works best in your budget, thoughts on your kids future etc. Lets start with 529 plan and discuss the alternatives one by one
529 Plan Details – This is a traditional plan that came into existence around late 1980s. As per IRS a 529 plan is a plan that can be set aside for beneficiary. It can be child, grand child. The amount that goes as a contribution towards 529 plan can be used for qualified educational expenses. This amount can be used for college and post-secondary education expense.
Who does operate the 529 plan?
529 plan is operated by state, educational institution
Are 529 plans tax deductible?
Nope. 529 plans are offered on post-tax basis. Main tax advantage come into existence when the distribution earnings are used for qualified educational expenses that can be one of the following:
Tuition
Books
Fees
Board Rooms
Starting 2010 following items are eligible educational related expenses under 529 plan:
PC Computer
Computer related peripheral equipment – This includes keyboard, mouse
Computer software
Peripheral equipment like printer
Internet access
These earnings are 100% federal tax free as well as 100% state tax free
Some exceptions to this include states like NYC offering upto $10000 state tax deduction if married and filing jointly , $5000 as single. Check with your state to see if you qualify for state tax deduction. With changing rules the maximum deduction on state can be $10000 and see if availing this option can be beneficial. For NYC criteria is that account holder should be NYC state tax payer. If you work at NYC and lie in states like CT, NJ you still qualify for this
Is there a maximum contribution limit on 529 plan?
If the contribution and any other gifts to a particular beneficiary exceed $14000 there comes gift tax consequence. However, there is no limitation on number of 529 plans one can setup
Why should I think about 529 plan alternative?
In a real-time scenario say your kid becomes entrepreneur and does not end up going to college. In this scenario you end up paying 10% penalty, state tax, federal taxes. Henceforth, it would be appropriate to look at alternatives before zeroing down on 529 plan
529 plan alternatives:
Custodial Account – Also called the uniform gifts to minor act UGMA account/UTMA account this account offers minors to own securities without the need of trust to be governed by an attorney. The major difference between UTMA account and 529 is that there is no stipulation on how the amount in this account is to be spent as opposed to 529
Rental Apartments – This is an out of the box thinking. I’ve come across lots of blogposts and financial advisors talking about cash on cash return of more than 22% with real estate investments. As a matter of fact, I stumbled on a financial advice recently. according to him the wealthy community think about 18% to 22% return on an average in their investments every year. According to them warren buffet does consistent 20% return each and every year on his billion dollar net worth. If you choose to invest in rental units now, except for the down payment the rest is taken care of by your tenants
Pros of owning rental in my view:
Your child will have financial freedom from day 1 of his life, career and will not have to think about his abode investment to start with
Your child will inherit all your property without any issues
You will enjoy tax depreciation on rental, can deduct all expenses in taxes that you can count on during the big rainy days
Cons of owning rental in my own view:
If the apartment is empty you will end up paying money from your pocket
The association fee in case of condo, townhouse which is preferred rental investment in most cases does come with fees. Also, property taxes should be taken into consideration. If you do quick math all these would add up to meet 1% rule. Henceforth, it would be extremely difficult to save more than $100 per month after all the rental expenses in expensive towns. It depends on how you finalize your deal, interest rate etc
Non-payment of rent will be additional stress and you will end up in eviction process which is a legal procedure involving attorney fees etc. This is another worst case scenario every landlord should keep in mind
You expect property and rentals to appreciate in your locality. This depends on luck, how well economy performs etc
I spoke to a realtor about rental investment. Based on his information I happened to learn that in case of rental we are expected to make more down payment. It is about 30% to 40% of property value as opposed to 20%. Also, your mortgage rates are going to be atleast 1% more than normal rates. So, take to mortgage broker, shop around before you calculate rental deal and net profits
Saving Bonds from government
I’ve recently come across an information that talks about Series EE savings bond whose interest earned is tax exempt both federal and state tax exempt if being used for higher education. I did some research on this and found that these bonds are reliable, low-risk, government backed financial products whose interest rates happen to be fixed interest rate for about 30 years. Interest rate of new EE bonds is announced by US treasury every May 1st, november 1st. As of November 1st 2016 the interest rates on bond happens to be 0.10% which is taxable if not used for education purpose. Instead we can choose to invest in online banks like allybank, barclays, everbank that yield 1% APY per year, that happens to be more than this. Series I bond again yield less than the banks. So, I’d not recommend any of these bonds at current interest rate. You can choose based on your needs and preference. I’m not endorsing any of these banks and express my views that are 100% personal
Roth IRA For Educational expenses:
Typically Roth IRA contributions are after tax and the earnings are tax-free when withdrawn after 591/2 years of age. However, for qualified educational expenses they can be withdrawn tax free. One limitation is that you should have contributed over past five years to make use of this for educational expenses. IF you dont use it for education, this can be used for your retirement

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Ebates offers hefty cashback during Tax filing



Tax season is the favorite season to talk more on money, taxes, savings, Wouldn’t it be interesting to get rewarded for paying your taxes appropriately in the form of cashback. Now, ebates does offer fantastic cashback for simply starting your tax filing from within ebates. Choose from one of the many different taxstore options available, shop around and start tax filing
Ebates a popular cashback site literally offers free money for starting the purchase from their website. This free money comes in the form of cashback. I started using this last month. I got my first cashback cheque yesterday. Today morning I started shopping around for best fee with tax filing software inside ebates website. Interestingly I found lots of interesting cashback bonuses while using tax filing software from within ebates
Here are the cashback percentage that are calculated on total amount spent towards tax filing as fees before taxes while your taxstore shopping starts at ebates
H&R Block – 9% cashback
e-file.com – 31% cashback
FreeTaxUSA – 25% cashback
TaxAct – 10% cashback
e-smart Tax – 10% cashback
intuit Payroll – upto $22.50 cashback
Note that taxes for 2018 are due april 17th 2018. File taxes, save money as cashback today from ebates



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Walgreens prescription history for taxes



Now, it is possible to access your prescription records as well as you past payment history online form Walgreens. This is an interesting feature offered for free by Walgreens Pharmacy
Why do I need to access these records?
You can access details on prescription, payment history that can be used for filing your taxes
If you own HSA (Health Savings Account) account if there is an audit this comes handy
FSA (Flexible Spending Accounts) reimbursements mandates prescriptions that can be accessed from here
If you would like to share details on your health with family, friends this comes handy
How do I access my prescription records and payment history?
Navigate to the website of Walgreens Pharmacy
Register for free and access details



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Best budget mattress



Are you interested in purchasing a new mattress? Are you confused as to how to go about this process. Every task can be successfully accomplished through great planning. Plan perfect to achieve great is the strategy. All you have to do is prepare a checklist (even write it down in a piece of paper) before starting a mattress search
1) What is your budget ?
Maximum budget and minimum budget should be fixed. It is always possible to have a tolerance of +/-5% of this budget. Cheaper you make it best is the deal. This helps us locate the price range and look out for mattress easily
2) When should I go for a mattress?
Always look out for season deals. This is the halloween, thanks giving, christmas season and best time to look out for great deals. Have the list of major websites listed and search for deals online. Some stores offer interesting deals with shipping and handling free if the purchase is above certain limit. Read the instructions carefully before finally using the credit card to checkout the mattress. It is best time to get $200 and more money saved through deals. Use this money for bedding sets, and mattress maintenance
3) Is mattress financing good?
If you want to purchase a product look out for 0% interest financing. this helps us pay our money in installments at no extra cost. Most mattress makers and dealers offer financing as less as 6 months to about 2+years at 0% interest rate. This depends of cost of the mattress you purchase. This helps a lot. You can invest the money in Fixed deposits/CDs and make interest in that tenure. Be careful and see when the deal expires. If you miss it interest rate could go as high as 12%.Have an eye on it.
4) What type of mattress should I go for?
Having fixed everything else this is a important step – tempurpedic, latex foam, spring are the types. Pick the right one
5) Do I need a peer review?
Nothing is as great as peer review. If you don’t get a chance to try the mattress in shops ask for peer review. This helps us take good decision.