Our Business News

The gap between rich and poor is well illustrated by the large multi-billion dollar corporations employing thousands of low-wage workers. With the Great Recession over, not only are many of these companies now hitting record profits, but their executive pay remains spectacularly high. Meanwhile, according to a report released by the National Employment Law Project, the current federal minimum wage the workers are often paid, is worth 30% less than it was in 1968 in terms of purchasing power. This story was originally published by 24/7 Wall St. Two-thirds of low-wage workers — those that are paid less than $ [...]

Dear Dr. Don, I worked abroad back in the 1980s. Through my employer, I bought U.S. savings bonds. These will be maturing starting next year and over the next few years. I don’t need the money now, but I don’t want to pay the taxes if I cash them in. Any thoughts? Thanks, -Bryan Belay Dear Dr. Don, I have Series E savings bonds, which I have had for 30 years. Is there a way to switch them to another series without cashing them in? They stop earning interest in 2016. Thanks, -Gerri Govies Dear Bryan and Gerri, First, Bryan, [...]

Dear Bankruptcy Adviser, I had a joint credit account with my ex-spouse, who removed my name from the account. Our separation agreement/divorce contract states that I am to pay her a certain amount per month, or until my portion of the debt is paid off. My ex-spouse has now declared bankruptcy, including this debt — but still expects payment made to her for this debt. Would this debt be considered paid in full now that it has been erased? Am I responsible to continue to pay for the debt? — Terry Dear Terry, That’s a very interesting question. At first [...]

After saving since your child was in preschool, you celebrate euphorically when your son or daughter is accepted to the college of his or her choice. You’d always imagined that your math whiz would become a chief financial officer (CFO), but are surprised when Junior says, “I’m leaning toward majoring in history.” My friend Karen describes a similar scenario: Our daughter worked hard throughout high school, earning nearly straight A’s and assuming leadership positions in sports and clubs. Her passion for and success in speech and debate tournaments seemed to position her well for a career as an attorney. Now [...]

GOP presidential candidate Mitt Romney’s recent remarks caught on camera regarding the 47% of Americans who don’t pay income tax are all over the news. Our nation’s tax code is long and complex, and as I’ve shown in recent columns there are ways the super rich can avoid paying massive taxes and for lower-income individuals to reduce their income and save on taxes– even to the point of receiving back more money than they paid in. But the question remains, who makes up this 47% and why don’t they pay income taxes? Here is the breakdown, according to the Tax [...]

It’s no secret that online bill-pay systems offer consumers a convenient way to pay bills without paper checks, envelopes or U.S. postage stamps. But these systems also give people greater control and flexibility in how they manage their personal finances, says Susan Tiffany, director of consumer periodicals at the Credit Union National Association in Madison, Wis. Here’s a look at some of the functions of online bill-pay and why you might want to use them. Schedule One-Time Payments The ability to delay payments until their due dates is one advantage of an online system, says Cary Whaley, vice president of [...]

Question: Is it true that if a teen gets his driver’s license but puts a different address on the license, he can be covered by a parent’s car insurance policy without the parent being charged extra?  I heard this is a way to get around paying high rates for your teenage driver. Answer: Having your rates skyrocket due to having a newly licensed teen in your house isn’t appealing to any parent, but the answer isn’t lying.  If you truly can’t afford the teen driver to be on your policy, then either don’t let him get a driver’s license or see [...]

Dear Tax Talk, My grandparents are now deceased. They had a number of savings bonds. How is the savings bond interest reported? The original purchase price was approximately $ 33,000. Interest accumulated to date is approximately $ 80,000. The six heirs will divide the bonds. Is the interest accumulated from the savings bonds until the date of death used on the last personal tax Form 1040? Or is all the interest received from them placed on the final estate taxes? Thank you. — Marcia Dear Marcia, There are generally two ways to report the interest on U.S. savings bonds: Annually [...]

From time to time, someone asks me about either paying off their mortgage entirely or paying down their mortgage in the smartest possible way. Does it make sense to pay off your mortgage? Does it make sense to pay down your mortgage? In my experience, the answer to both of these questions is actually more of a personal preference than one of actual dollars and cents. Should you pay off your mortgage early? Before you can determine the smartest way to pay down your mortgage, you must first answer the question of whether you want to pay off your mortgage [...]

If you get a ticket, you will also likely get a surcharge on your car insurance premium upon renewal. How much that surcharge costs, how long you will be required to pay it and whether the surcharge decreases over time depends on your insurance company’s policies and your state’s laws. Bryan Cook, a senior assistant vice president with Amica Mutual Insurance Co. in Lincoln, R.I., says that while the amount of a surcharge varies according to the severity of the offense, how long an infraction stays on your driving record does not impact the length of time you must pay [...]