Personal Finance

This story came from our client Jerry Garner, Reverse Mortgage Specialist with TowneBank Mortgage. We thought it would be of interest to share it. 

"Mr. and Mrs. Grace (ages 62 & 66)  were living comfortably on Johns Island (they moved here from the upstate 2 years ago), until their daughter went thru a divorce and she and the grandkids needed financial help.  The Grace’s did what most parents would do and agreed to offer the support and welcomed them back home (for a while)…after a few months, they consulted with their financial advisor to make sure they had the money to help their daughter and grandkids and learned they did not have enough savings to maintain their own personal l...

Cramped Quarters? Still Renting? Invest Your TAX REFUND Smartly!

This is the time of the year when most employed people file their taxes and may receive a refund from Uncle Sam. For many people, this refund just goes into their general bank account, and before they know, it's gone (again!).

IF YOU ARE RENTING: A wiser investment would be to look at purchasing a home using your refund as downpayment. Consider the current situation:

• Prices are low, and there are GREAT DEALS out there...
• Mortgage interest rates are VERY LOW and most probably will start climbing up when higher inflation hits us (have you seen the price of gas lately?)
• If you buy a primary residence, next year Uncle Sam...

Many parents would like to help their offspring become homeowners and realize the "American Dream". Here are a few tips that may help:

1. When they go off to college: Parents can buy a condo or home as an investment. Set up their child in one bedroom, rent out the other rooms to other students and get the benefits of owning an investment property. Even better: Instead of sending their son/daughter pocket money, hire him/her as the property manager - responsible for upkeep and rent collection - and pay them tax-deductible compensation..
2. When the children are ready to own their place:

• You can give them a cash gift. Individuals are allowed a maximum gift of $13,000 per year tax-free. ...

I recently read an article in the Post & Courier that had some interesting suggestions about how to use your tax refund this year to improve your credit score. These are the highlights:

1. Set aside only a small percentage (i.e. 10%) of the refund as "spending" money.
2. Set up an emergency fund - just in case you or your spouse are laid off. They recommend having 6 months to 12 months household expenses in this fund. You can put up to $5,000 a year ($6,000 is you are 50 or older) into a Roth IRA and invest it in a CD or money market mutual fund so that it is not vulnerable to stock market variations. And you can use this money for college, retirement or emergency without paying penalties...