The kitchen
table home economics/Carlos Pueblo
After
finishing the annual income tax return paper work, I sit down with
Arthur to
explain his return line by line. This year, he and his mother feel
that they
need to learn how to file the return themselves; however, I use
a new system
and re-adjust myself also plus we have a difficult time to
locate
available time together. Once I get them done and it is too late. All
that I can
do is to explain to them before they sign the paper work and
review some
of our strategy of the home economics.
He asks me
about his pension plans both IRA and 401k contribution. I affirm
that is for
saving for the retirement as well as a tax plan which the government
encourages
workers to save in order to relief the burden of the government. I
mention to
him in case of the unemployment that we can get the money out
earlier than
the 59 1/2 years old without the penalty
called systematical
withdrawal
for a fix amount based on the IRS mortality table. I have done that
for 6 years,
54 to 60, and quit after 60 until age 70, the mandatory minimum
distribution.
I don’t think both he and his mother are interested in such practice.
Of course,
he can use his after tax saving in case the job is difficult to find, i.e. at
age 50 that
is difficult to make a change of a career. It is also important to continue
to work in
order to keep the health insurance. By that time, perhaps the Democrats
may find a
solution of the national healthcare. We can buy in the Medicare System.
I am very
confident that his financial planning is very solid. Saving and investment
is fundamental
to a successful life. We can witness the fruit and avoid the stressful
living for
the lack of money. I always find some way to fulfill my life without
unnecessary
spending,
i.e. I eat at home, I don’t watch T.V., I play tennis instead of the golf, I
manage my
money instead of controlled by the money in home economics.
