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When a bond is acquired at a discount to the face value, there are different kinds of discounts and differing tax treatments. The tax reporting is often misunderstood, which could cost you money in additional taxes and/or penalties. The gain at maturity or sale of a market discount bond is ordinary...

The first thing you do when signing up for your employer's 401(k) or 403(b) is decide how much to put in out of every paycheck. You don't need my advice for that, of course; it's a function of how much you can afford. But once you decide on the amount, on how much you're willing to save toward your...

In most 401(k) and 403(b) plans, money market and short-term bond funds are among the most popular investment choices. That is especially true recently, when fear and panic among investors sent many scrambling for something more stable than the stock market. With the smoke cleared from last year's f...

The IRS has been dealing with bogus claims for the $8,000 first-time buyer's credit and the $6,500 credit for existing home buyer's credit. So, to get the credit, now the IRS is requiring more documentation. A signed copy of the settlement statement must be attached to the tax return. Also, for bu...

Back when I started contributing to a 401(k), first class postage cost 20 cents. It was the year Apple introduced the Macintosh. Ronald Reagan was re-elected, and the LA Raiders won Super Bowl XVIII. Hair was big back then. The internet did not exist, and you could check the value of your account 4...

My version of the Rapunzel story has my very pregnant wife unable to bear the August heat and yearning for a little cool breeze. Fortunately our baby didn't get locked up in a tower by a witch. I borrowed from my 401(k) and installed air conditioning. Everyone needs a little cash from time to time -...

This Thursday the Rochester office is hosting an open house for clients (advisors, staff and their families will all be present) to showcase our new office renovations . At a time when Goldman Sachs is doling out $22 billion in bonuses and news about Bank of America Merrill Lynch's "savior" John...

Picture a typical day. You get done with work, punch the time clock, and start the journey home, but before you get there you have to stop off at the grocery store. You pick up some Crest toothpaste, Duracell batteries, and Tide laundry detergent. You arrive home and check the kitchen for something...

Last week, the Senate approved a bill that would allow donors to accelerate the income tax benefits of charitable cash contributions for the relief of victims of the earthquake in Haiti. Previously passed by the House, the bill is now cleared for signature by the President, which is expected this we...

Working my way up we have touched on my rules #10, #9, and #8, all of which are very basic "starter" rules for getting involved with your 401(k) or 403(b) plan at work. Today's rule assumes you are a plan participant and have been contributing for a while. At some point you start to think about what...