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Money management for the post-retirement workforce


Timothy Gagnon

In the following post, D’Amore-McKim School of Business Assistant Academic Specialist Timothy Gagnon shares personal finance advice for those re-entering the workforce after retirement.

Q: Is it strategic to restart retirement savings with a Roth IRA/401(k)?

A: If you are going back to work for the cash flow to make ends meet, I would not recommend restarting an IRA/401(k), since cash flow is critical and your tax bracket may be low, so the tax savings may not be there. Cash outside of a retirement plan may be more practical and flexible. However, if you are going back to get out of the house or for socialization, then yes, you can restart retirement plans for the tax savings and to have more in the future. Personally, I would do the 401(k) if the company has a matching program. Read more…


Tips for a tax-deductible vacation

Timothy Gagnon

Timothy Gagnon

Personal finance expert Timothy Gagnon shares tips and advice for managing tax-deductible personal time during business travel.

  • The cost of travel to and from a meeting or business trip is deductible, even if you stay longer or do some side trips. For example if you travel to Texas for a conference, the airfare is deductible even if you go see the Alamo for a week, as long as the extra stay does not raise the travel cost. There have been cases where staying over a weekend meant a lower airfare so the extra days’ hotel cost were deductible too. Also, the Tax Code that the IRS enforces does not say you must travel direct, so if you were to take a trip through a couple stops to a conference the cost of the direct flight could be deducted, thereby lowering your over all cost of travel with “vacation” stops along the way.
  • Hotel costs related to business are deductible, but not the extra nights’ hotel bill for the vacation time.  As for extra people in the room, if say the spouse and kids do not raise the cost of lodging, then there is no effect. The Code looks that you have a reasonable room accommodation so a better hotel with amenities is possible. Extra rooms are a problem unless necessary for business, such as holding meetings in multiple rooms during the day and family uses the room overnight.

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How freelancers should manage tax season

Tim GagnonPersonal finance expert Timothy Gagnon shares important steps that freelancers can take to ensure they are preparing their taxes correctly and to their best advantage:

  1. Put 40 percent of every payment aside in a separate bank account (your withholding for federal taxes, state taxes, self-employment taxes (both sides)). Any additional funds that are not sent to the government become your “bonus” for the year.
  2. File your quarterly estimates in April, June, September, and January of the following year; they are not perfectly every three months or quarterly, so watch due dates.
  3. Estimates are based on net earning through the last date of the month before the quarterly date.  Read more…


How to be a financial power couple without getting married

Tim GagnonFinancial and legal expert Timothy Gagnon shares important steps unmarried couples can take to ensure their rights and finances as partners.

  1. Create a joint checkbook and contribute to it your share of the expenses—if one person pays the entire mortgage on a jointly-owned home, then you have a gift for gift tax purposes.
  1. Record contributions to large purchases like cars, houses, and stock accounts, because on the death of the first, you will have to prove contribution or the entire asset will be included in the first estate.
  1. Write estate documents like Wills, Powers of Attorney, and Living Wills, since the other person has no rights in court, probate, or at the hospital to handle the other’s affairs. You need to ensure your legal rights.

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