Planning

You bought a bond, Treasury, or brokered CD because you wanted a relatively predictable investment. You know how much interest it pays, when it matures, and—assuming the issuer can meet its obligations—how much you expect to receive at maturity.Then you open your investment statement and see that it is down 3%, 5%, or even 10%.What happened?In many cases, nothing has gone wrong with the investment. What you are seeing is simply the difference between what the investment is worth if you sell it today and what you expect to receive if you hold it until maturity.That distinction is one of…

When managing cash in a prime money market fund like the Schwab Value Advantage Money Fund (SWVXX), two of the most common investor questions center on timing: When is daily interest added? and What happens to my earnings if I cash out early?Understanding how daily accrual works ensures you never leave yield on the table—even when moving money mid-month. The Mechanics: Daily Accrual vs. Monthly Payout Money market funds operate on a strict split-ledger system: yield accumulates every single day behind the scenes, but it is only distributed once a month.Daily Accrual: At the close of each business day, Schwab…

Here is a list of free tools and resources anyone can access that you may not be aware of.Gilbert W Important Disclosure  Information is believed to be reliable as of the date reviewed; however,Gilbert Wealth does not guarantee its accuracy, completeness, timeliness, orcontinued availability. Services described as free may have eligibilityrequirements, geographic limitations, optional paid features, or terms thatchange over time. Review the provider’s current terms, fees, eligibilityrequirements, privacy policy, and security practices before registering orproviding personal information.Gilbert Wealth is not affiliated with the third-party organizations listed onthis page and does not receive compensation for including them, unlessspecifically disclosed. Links…

One question I frequently receive from clients is whether taking on a side business will cause them to pay Social Security taxes twice. It's an understandable concern. After all, they're already seeing FICA taxes withheld from every paycheck, so why would the IRS ask for even more? The good news is that the tax code contains coordination rules that prevent most people from paying Social Security tax above the annual wage base. However, those same rules don't eliminate Medicare taxes, which often continue to apply. Knowing the difference is key to understanding your total tax bill. FICA vs. SECA FICA…

One of the most common tax surprises is receiving an underpayment penalty from the IRS - even if you pay your taxes in full when you file your return.The United States has a "pay-as-you-go" tax system. Rather than paying your entire tax bill in April, you're generally expected to pay taxes throughout the year as you earn income.If you don't pay enough during the year, the IRS may assess an underpayment penalty, which functions similarly to interest on the amount that should have been paid earlier.Fortunately, the tax code provides several safe harbor rules that allow taxpayers to avoid these…

Cutting expenses does not always mean cutting things out. Sometimes it just means swapping.That is the idea behind an expense swap. For a period of time, pick a regular expense and replace it with a cheaper alternative.Instead of buying coffee out, make it at home.Instead of eating lunch out, pack a lunch.Instead of ordering takeout, make an easy meal.Instead of paying for entertainment, try something free.The goal is not to eliminate joy from your life. The goal is to see how much of your spending is convenience, habit, or autopilot.Small Swaps Can Add UpA $6 coffee may not seem like…

Maintaining a spending plan — or budget — is one of the most effective ways to stay in control of your money. But sometimes, a normal budget is not enough. You may need a short-term reset to free up cash, break old habits, or make more room for the goals that matter most.That is where a No-Spend Challenge can help.A no-spend challenge is a short-term commitment to stop buying nonessential things. You still pay your bills. You still buy groceries. You still cover gas, medicine, child care, and other necessities.But you temporarily cut out the extras.No takeout.No random Amazon orders.No…

Understanding Medicare’s key deadlines can help you avoid costly penalties and gaps in healthcare coverage. Whether you're approaching age 65 or already enrolled, keeping track of important Medicare dates ensures you make timely decisions regarding your healthcare benefits. Here's a comprehensive look at the major dates and periods that matter most when it comes to Medicare. Initial Enrollment Period (IEP) When: 7 months surrounding your 65th birthdayThis is your first opportunity to enroll in Medicare, including Parts A and B. It begins 3 months before the month you turn 65, includes your birthday month, and ends 3 months after.Missing this…

For most people, every year of work helps build a stronger Social Security record. Higher lifetime earnings generally translate to higher retirement benefits. However, there are situations where new earnings may have little—or no—impact on your future benefit. Understanding these scenarios can help you make better decisions about when work pays off for Social Security and when it doesn’t. How Social Security Benefits Are Calculated Your retirement benefit is based on your 35 highest-earning years, adjusted for inflation. The Social Security Administration averages those years into your Average Indexed Monthly Earnings (AIME) and then applies a progressive formula with “bend…