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Supreme Court Blocks Loan Cancellation

June 30, 2023 by Finance Gourmet

Alright, here is the short, short version typed up as fast as I possibly can, while I wait for my documents at the title company. In Washington D.C. they have been stretching legislation to lift more than it as designed to since before they built the Congressional building. This time, the Supreme Court decided it was too far. On a party line vote, Republicans said no, and Democrats said yes. The reasons are moot. It’s time to look at your money. Student Loan Payments Deferred Back during the pandemic when everyone was worried the economy was on the verge of collapse with hundreds of thousands of Americans unable to work because their jobs were shut down, the Feds put a pause on student loan payments. It turns out that a lot of people were spending a lot of their after-tax income paying student loans instead of consuming the goods and services that drive the economy. An extra couple hundred dollars a month can do that for you. The student loan payment pause is ending. I don’t know why Republicans hated the student payments thing so much. Maybe it’s just that they didn’t want people to have something to like about …

Unraveling the Nuances of 2023 Colorado Property Tax Appeals and Reductions

June 3, 2023 by Finance Gourmet

The vibrant landscape and robust economic growth make Colorado an attractive destination for homeowners. However, more residents looking for more homes pushes housing prices in Colorado higher, especially in real estate bull markets. In 2023, Colorado property tax valuations soared thanks to poor timing, and those higher real estate prices. How Colorado Property Taxes Work Understanding the Colorado property tax landscape sets the foundation for a successful appeal process. Property taxes in the Centennial State are calculated based on the property’s assessed value, multiplied by the local mill levy. The assessment rate for residential property in Colorado is currently set at 7.15%. The mill levy, however, varies considerably depending upon the specific county, city, or district where the property is located. This two-pronged approach necessitates meticulous evaluation of both elements to achieve a significant reduction in tax liability. While most Colorado residents understand and plan for their property taxes, the 2023 property tax valuations were a staggering jump in taxes that residents from Denver and beyond were not prepared for. A solid grasp of how properties are valued, who conducts the evaluations, and how frequently these assessments take place, is essential for homeowners to plan their financial obligations effectively. Property …

Is My Colorado Refund Tax Free?

February 24, 2023 by Finance Gourmet

The IRS decides some of your Colorado refund is tax free, but it’s the IRS, so it can’t be that simple. Colorado Cash Back Refund Is Tax Free I don’t know how good your memory is, but in 2022, Colorado officials realized that Colorado residents would be in line for big Tabor refunds for 2022. Usually when Colorado gives out TABOR refunds, you get it as a part of the Colorado State income tax that you file tax returns for in the early part of the following year. For example, the 2022 TABOR refunds would normally be a part of your 2023 income taxes (part of it still is). However, with the economy potentially sputtering to a halt and the end of the various federal income tax refunds sent early to prop up a post-Covid economy, Colorado politicians decided that they would send out some of the 2022 TABOR refunds in the fall instead of waiting until folks got around to filing taxes that are due in April 2023. To pull this economic transfer off, Colorado officials had to anticipate how much the TABOR refund of 2022 would be with only half of the year’s data, so they picked a …

Interest Rates, Mortgages, HELOCs, Credit Cards, and the Fed

January 20, 2024December 17, 2022 by Finance Gourmet

Originally published 12/17/2008, this post is being kept for its historical value, as the economy was still reeling from the housing market collapse and subsequent market swoon. For fun (and education), pull out your favorite charting tool and set the dates to either side of this date. This rate cut will mark the bottoming of the stock market (by March of 2009). Days like yesterday and today are why I write the Finance Gourmet. For those of you who didn’t see it, the Federal Reserve, or Fed cut interest rates to between 0% and 0.25%. All day today, the media has been droning on about what it means for consumers, homeowners, and the economy. Unfortunately, they are in such a hurry to do so, that they skip over all the details. So, here it is, what the Fed’s rate cut means to you. What To Do Now That Interest Rates Have Been Cut After reading the above, you should be aware that there are no quick and easy, or automatic solutions coming based on this rate cut. Frankly, that isn’t really what it is supposed to do. But, that doesn’t mean there is nothing you can do. First, don’t count …

Did Americans Really Lose $900 Billion in The Recession

October 3, 2022 by Finance Gourmet

Anyone who has been online for more than a day or two knows that the way to get clicks is to have a big, shouting, headline. One popular search engine optimization (SEO) plugin won’t give your title a passing score until it has “a positive or negative sentiment.” Ideally, it also contains a number and a “power word.” Is it any wonder then that financial news headlines scream things like, “Americans Have Lost $900 Billion Since…” or “America’s Richest Tech Billionaires Have Lost $315 Billion In the Past Year?” How Do You Actually Lose Money When the Stock Market Crashes? Let’s talk about investing and losing money. First, we are going to talk about net worth and how much equity you have in your home. It’s for a good reason, I promise. Your net worth is the value of all of your assets minus all of your liabilities. The key word there is all. If your car is worth $15,000 and you owe $8,000 that counts as $9,000 of your net worth. Even that ping pong table in the basement that is worth $50 counts towards your net worth. As you can imagine, this goes off the rails quickly. The …

Top 4 Places to Save Money During Recession

September 14, 2022 by Finance Gourmet

It is looking less and less like the U.S. economy will achieve the promised land of a soft-landing and will instead end up in a recession. It may turn out to be a shallow recession, but the economy is not typically forgiving of rapid increases in interest rates. If hiring falls off before the holiday season, then look out below. Where To Save Money During Recession Making smart personal finance decisions during a recession is critical to avoid losing progress on your goals. The four places are the best way to save money during recession and even depressions. Money Market Account – No it’s not sexy, but it is safe, and it should pay more than your basic savings account. Get at least three months of expenses put aside in case you are one of the unfortunate ones who lose their job during a recession. The silver lining on recessions is that rising interest rates means earning more money on your savings accounts and money market accounts. Consider a high-yield online savings account from a bank you trust to earn even more. Pay Off Debt – Alright, this is cheating. Paying off debt isn’t technically saving money, but it will …

Colorado Refund Checks Here Now

August 9, 2022 by Finance Gourmet

Taxpayers in Colorado began receiving their 2022 Colorado refund checks in the mail this week. Several readers have reported getting theirs, and I got mine on Monday, so they are definitely coming. To qualify for a refund check from Colorado you had to be a full-time resident in 2021, and you had to be 18 by December 31, 2022. You also had to file your Colorado income taxes. Check out this in-depth look at Acorns investing. Colorado Tabor Refund Checks Politicians were fast to break their arms patting themselves on the backs for getting $750 to each Colorado taxpayer. It is a nice surprise, and the Democrats get credit for getting $750 to your mailbox in August 2022 instead of making you wait until early 2023 to get your refund when you file your Colorado income taxes. Republicans are quick to point out that Democrats have supported ending Tabor in the past, so they think they get credit. Check out Where Your Colorado Refund Check Comes From You like free money as much as the next guy, but you are an intelligent and curious srot, so you’d like to know exactly where this refund check money is coming from. That’s …

Fed Raises – Did It Break the Economy?

July 28, 2022 by Finance Gourmet

I’m not an economist and I don’t play one on TV. I haven’t even stayed at a Holiday Inn Express, but I have been involved in finance for a long time now, and I’m old enough to have a pretty good memory. Add that to a lot of research over the years as a freelance financial writer for a lot of publications and websites, and I have an informed opinion, if not a professional one. Fed Raises Rates 0.75% Again The Fed raised interest rates again, another big 0.75% hike. So, here is the punchline. The Fed has raised interest rates a total of 1.5% in just two months. Look up the last time the Fed raised rates that quickly. Go ahead. I’ll wait. It was the 1980s and inflation was crazy rampant. Every economist older than 50 had drilled into their head that inflation was more of a problem than a recession because that is what is true for Wall Street. Unfortunately, that is not necessarily what is good for Main Street, and by extension, the markets. Last time the Fed raised rates was from 2016 to 2019. That increase was a nice gentle 2.25% increase over three years. …

Best 529 Plan Wisconsin Residents

December 12, 2022May 19, 2022 by Finance Gourmet

The best 529 plan for Wisconsin residents depends on how you want to invest funds for your child or other beneficiary. Students may attend any college or university in any state regardless of any investment in the Wisconsin 529 plan. For example, you can save in a Wisconsin 529 plan and your daughter can go to Duke and your son can go to Stanford. Likewise, you do not have to use the Wisconsin 529 plan even if you live in Wisconsin. However, you may not get the state tax benefits from a plan managed by a different state. Tomorrow’s Scholar Wisconsin 529 Plan Option The Tomorrow’s Scholar plan is offered by Voya and it offers 3 ways to invest. Edvest Wisconsin 529 Plan Option Details The Edvest Wisconsin 529 Plan investment options. Find out about the Colorado 529 plan here. Wisconsin Taxes 529 Plans Wisconsin 529 plan contributions are not tax-deductible on federal income taxes. The maximum contribution limit for a Wisconsin 529 plan state tax deduction is $3,380 for a single beneficiary in the tax year 2021. The maximum contribution deduction in 2022 is $3,560 for a single beneficiary. There is no limit on the number of beneficiaries that …