Tips and tricks for raising a smart investor

Tips and tricks for raising a smart investor
News from Payson Roundup:

The sooner the better: The saying applies to many facets of life, including educating children about money. By introducing sound financial habits early on, you’ll give your child a head start on becoming an informed investor. Here are some creative ideas, as well as book and Web site suggestions, for raising a financially savvy kid.

Lessons for every age

Toddler — Although it may seem early to begin instilling investment know-how in a toddler, the first few years of life are critical for mental development. Toys that incorporate counting, such as building blocks, can help a child develop mathematical skills.

Age 5- 7 — Board games are an entertaining way to teach kids about managing finances. Monopoly covers all the bases — earning money, saving and spending, capital budgeting, risk and reward and taxes. This classic game now comes in an electronic banking edition and even as a smartphone or tablet application. Other options include The Game of Life, Billionaire Tycoon, Moneywise Kids and Pay Day.

Age 8 to preteen — At this stage, many children start accumulating income from allowances, birthdays and special occasions, and even small businesses, like lemonade stands or shoveling driveways.

As your child begins dealing with actual money — no matter how small the amount — talk with them about savin…………… continues on Payson Roundup

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Tax Tips For Investors Before 2013’s Rate Increases
News from Investor’s Business Daily:

Talk about calm before the storm. Investors and higher-income earners benefit from certain key tax rates staying low this year.

But the party’s over after 2012.

Rates that can impact investment income will rise. That’s unless Congress and the president act to keep rates low, which few are betting on at this point, especially before the November election.

“Rate changes pending for next year and a new surtax on investment income make 2012 the time to plan for how to cut or avoid their impact,” said Greg Rosica, tax partner for Ernst & Young.

Here are some of the upcoming changes:

Personal income. This year’s rates of 10%, 15%, 25%, 28%, 33% and 35% are due to be bumped up next year. The new marginal brackets are set to be 15%, 28%, 31%, 36% and 39.6%.

Capital gains. Rates stay at 15% for most taxpayers this year. In 2013 rates on long-term gains are slated to rise to 20%.

Qualified dividends. Dividends will go from being taxed at a top rate of 15% this year to being taxed as ordinary income next year. The top rate will be 39.6%.

Medicare surtax. To help pay for ObamaCare, a new 3.8% surtax will kick in. It will apply to certain types of investment income, for taxpayers whose modified adjusted gross income (MAGI) tops certain levels.

…………… continues on Investor’s Business Daily

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