Liabilities
Articles for Our Clients on Liabilities
When figuring out your financial net worth assets are only half the equation; liabilities are the other half. Liabilities can be everything from obligations we take on to build new opportunities to consumer debt. Being savvy on how to manage, leverage and avoid the threats of liabilities becomes a key component to financial well-being.
The articles in the Liabilities section of our library are to help you orient, think, and care for your liabilities that will ultimately affect your financial net-worth. Opportunities are created by some liabilities, obligations come with all liabilities, and threats can emerge with others. Learn how to recognize the differences to further your financial strategy.
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February 5, 2011
Another socio-economic impact of increased longevity is the growing occurrence of children and/or other family members serving as care-givers for aging parents and relatives. The latest statistics from a 2010 report by the National Alliance for Caregiving (NAC) reported that 43.5 million Americans in 2009 were looking after a friend or relative over the age of 50, which represented a 28% increase...
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January 15, 2011
On December 13, 2010, BTN Research, referencing information from Forbes, published the following news item:
“George Steinbrenner, the principal owner of the New York Yankees baseball team, died on July 13, 2010. His net worth at death was an estimated $1.15 billion. Since he died in 2010, his estate will pay zero federal estate tax (under current law). Under the estate tax plan...
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December 15, 2010
For most Americans, personal transportation is a necessity. They need a car to work, to get the groceries, to drop the kids at school, and to access entertainment. This means most Americans will face a significant financial transaction every three to five years when it becomes necessary to replace a vehicle. Each time, the two biggest financial questions are:
1. Should I...
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December 12, 2010
A November 9, 2010 article from the Reuters news service reported that the average rate of return for all Certificates of Deposit dipped below 1% for the first time since 1952. At the same time, banks have tightened their lending standards, making it harder for people to obtain loans. How can these two parties resolve their financial dilemmas? One answer may be private loans, particularly those...
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September 2, 2010
In 2001 and 2003, some convoluted political maneuvering by Congress resulted in a series of tax cuts that came with an expiration date. Known familiarly as the “Bush tax cuts,” these provisions are set to end on December 31, 2010. If no new legislation is approved, tax rates that were in effect prior to 2001 will return.
Some of the highlights (or lowlights) of what a return to 2001 tax rules...
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June 1, 2010
With the turbulence in the economy over the past several years, many Americans were compelled to reevaluate their financial positions. Instead of maximizing retirement account contributions, pursuing high-flying investment returns, and leveraging equity to “trade up,” there is now a greater emphasis on the preservation of wealth. For a lot of people, their new financial priorities have become...
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November 8, 2009
Suppose you owned an asset with a market value of $500,000 in 2007. Because of the economic turmoil of the past two years, that same asset is worth $300,000 today, and is rather illiquid – i.e., there aren’t very many buyers, even at the reduced price. Suppose this asset is your home.
Is it likely that your home, and other personal residences, will regain their lost values? And if so, how long...
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September 5, 2009
Most of us have a basic understanding of how credit works based on our personal experiences. We borrow someone else’s money (the bank’s, the mortgage company’s, a friend’s) to buy something today, and then repay the lender with interest. That’s the basic formula whether credit is used to buy a house, a car, or dinner at a restaurant.
Likewise, our decision to take on a debt obligation is usually...
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September 5, 2009
Where You Stand Today May Determine Where You End Up Tomorrow
The ripple effect of the financial crisis that originated in the sub-prime mortgage sector in 2007 is still reverberating through the global economy. The shakeout is far from over, but recent responses of both individuals and institutions in the aftermath of the first waves of financial distress are likely indicators of some long-...
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March 2, 2009
As a way to encourage individuals to save for retirement, the Employee Retirement Income Security Act (ERISA) of 1974 established the first Individual Retirement Accounts (IRAs), which eventually gave birth to other tax-favored retirement plans such as 403(b)s, 401(k)s, SEPs etc. The basic format for these qualified retirement programs is a tax deduction on deposits and tax-free accumulation;...
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