Posts by SmartAsset Team
Home Buying
How Much Income Do You Need to Buy a $500,000 House?
Buying a $500,000 house typically requires a steady income, but the exact amount depends on your down payment, credit score, debts and mortgage terms. Many lenders follow the 28% rule, where your monthly housing costs (including mortgage payments, taxes and insurance) should stay under 28% of your gross income. With good credit and a 20%… read more…
Financial Planning
5 Alternatives to 529 Plans: Pros and Cons
While 529 plans offer tax-advantaged growth and withdrawals for qualified education expenses, they also come with restrictions that may not suit every family’s needs. There are several alternatives to 529 plans worth considering, depending on your financial goals, risk tolerance and level of flexibility. Options like custodial accounts, Roth IRAs and taxable investment accounts can… read more…
Tax & Legal
Can You Deduct Property Taxes on a Second Home? Rules and Amounts
If you own or plan to buy a second home, you can often deduct property taxes. But, the IRS limits how much you can claim each year. These deductions apply only if you itemize, and the total cap for all state and local taxes (including property taxes) is $10,000 per year. A financial advisor can… read more…
Annuities
Why Do Financial Advisors Offer Clients Annuities?
Some financial advisors promote annuities because they offer tax deferral, guaranteed income, or principal protection. But while these features can support retirement planning, annuities often carry high fees and commissions that can influence recommendations. Knowing why advisors recommend annuities can help you ask better questions and evaluate how this option could fit into your financial… read more…
Financial Planning
Trump Student Loan Plan: Rule Changes and Options
The One Big Beautiful Bill Act proposes significant changes to federal student loan programs that could impact millions of educational borrowers. Most impacts will be felt in 2026, but some will start in 2025. Key changes include eliminating subsidized loans for undergraduates and ending PLUS loans for graduate students and parents. The law also imposes… read more…
Financial Planning
How Much Income for a $400k House? Calculation and Example
If you want to buy a $400,000 house, you may be wondering how much income you need to qualify. This can vary based on your down payment, interest rate, debts and even location. However, there are some general rules that can help you set a realistic target. Most lenders evaluate your ability to repay using… read more…
Tax Planning
Trump Tax Plan Auto Deduction
Under the One Big Beautiful Bill Act interest paid on certain car loans would become tax-deductible. If you purchased a personal-use vehicle after December 31, 2024, and financed it with a qualified loan, you may be able to deduct up to $10,000 in interest per year through 2028, even if you don’t itemize. However, income… read more…
Legislation & Policy
Breaking Down Inflation Under Trump vs. Biden
Inflation under Trump and Biden reflects two very different economic backdrops. During Trump’s first presidency, inflation remained modest, with rates generally staying below the Federal Reserve’s 2% target. Under Biden, inflation surged beginning in 2021, influenced by supply chain disruptions, stimulus spending and rising energy costs. Forecasts for a second Trump term suggest that his… read more…
Tax Planning
Do You Have to Pay Taxes on Rebates? Rules and Examples
When you score that great mail-in offer or discount, you might wonder: Do you have to pay taxes on rebates? The answer isn’t always straightforward. Generally, the IRS doesn’t consider most consumer rebates as taxable income. When a manufacturer’s rebate reduces the purchase price, that’s typically not a taxable event. Think of it as simply… read more…
Tax Credits & Deductions
What Disqualifies You From the Earned Income Credit?
The earned income tax credit (EITC) offers support to low- and moderate-income workers, but certain conditions can make you ineligible. You may be disqualified if your income is too high, if you have significant investment income, or if you are married but filing separately. You also cannot claim the credit without valid Social Security numbers… read more…
Financial Planning
Guide to Canada-U.S. Cross-Border Financial Planning
Cross-border financial planning between Canada and the U.S. requires you to understand how taxes, retirement accounts, investments and residency rules work in both countries. People with ties to both, such as dual citizens or expats, may have to follow tax rules in each country. Planning often involves working with advisors who know both tax systems… read more…
Social Security
What Is the Average Social Security Check at Age 66?
Social Security is a key source of income for millions of retirees. And knowing what the average Social Security check looks like at age 66 can help you plan more effectively. For those born before 1960, their full retirement age (FRA) is between 66 and 67. While those born after 1960 have an FRA of… read more…
Social Security
What Is the Average Social Security Check at Age 65?
For many Americans, Social Security is a foundational source of income in retirement. And knowing how much you can expect to receive, such as what the average Social Security check is at age 65, can help you plan ahead. It’s also important to note that claiming Social Security at 65 or earlier will result in… read more…
Social Security
What Is the Average Social Security Check at Age 64?
Knowing what the average Social Security check is at age 64 can help you decide when to retire and create a plan for your income in retirement. Collecting Social Security at 64 does mean you’re claiming benefits before your full retirement age (FRA), which still means a permanent reduction to your monthly benefit. But if… read more…
Social Security
What Is the Average Social Security Check at Age 63?
Social Security is a key source of income for many retirees. With that in mind, it’s useful to know what the average Social Security check may be at age 63 so you can better plan for retirement. It’s also important to understand that while you can begin collecting Social Security as early as 62, claiming… read more…
Tax Planning
Schedule E Tax Form: When and How to File
If you earn income from rental properties, royalties, partnerships, S corporations, estates or trusts, you’ll likely need to submit Schedule E with your tax return. This supplemental federal income tax form, officially titled “Supplemental Income and Loss,” is where you report income beyond your regular wages or salary. Because of its complexity and potential impact… read more…
Tax Planning
Guide to Canada-U.S. Cross-Border Tax Planning
Cross-border tax planning between Canada and the U.S. will require you to manage income, assets and residency to avoid double taxation and meet rules in both countries. Key differences in retirement accounts, capital gains and estate taxes can create issues without careful planning. Tax treaties help, but dual filers and investors still face complex reporting.… read more…
Social Security
What Is the Average Social Security Check at Age 70?
For many Americans, Social Security represents a significant part of their average retirement income. By age 70, most people have either already claimed their benefits or are about to. If you’ve waited until now to claim, you’ll receive the maximum possible monthly benefit thanks to delayed retirement credits. Regardless of when you claimed, knowing what… read more…
Social Security
What Is the Average Social Security Check at Age 67?
Planning for retirement means figuring out how much income you’ll have. And for many Americans, Social Security is a big part of that. Your monthly benefit at full retirement age (67) depends on your work and earnings history. A financial advisor help you determine when to start and build a retirement plan that fits your… read more…
Social Security
What Is the Average Social Security Check at Age 62?
Social Security benefits are a key part of retirement income for many people. You can start collecting as early as age 62, but doing so will lower your monthly payment for life. It’s important to know how early retirement affects your benefit and what the average payout is at 62 before deciding when to start.… read more…
Financial Planning
Trust Fund vs. 529 Plan: Pros and Cons for Education Savings
Both trust funds and 529 plans can power education savings, but they serve different purposes and each comes with its own set of rules. A 529 plan provides tax-advantaged growth specifically for education expenses, with funds growing tax-free when used for qualified educational costs. These plans are relatively straightforward to establish and maintain. Trust funds,… read more…
Financial Planning
Reasons Why Financial Advisors Recommend Donating to Charity
The primary motivation to give is often personal or emotional, charitable giving can also have financial benefits when done strategically. From reducing taxable income to managing capital gains and leaving a legacy, donating to charity can support your overall financial goals alongside the causes you care about. Knowing the potential tax advantages and planning opportunities… read more…
Health Insurance
Trump Medicaid Changes: Requirements and Coverage
President Trump’s “One Big Beautiful Bill Act,” signed into law on July 4, 2025, reshapes Medicaid through a combination of federal funding cuts, new eligibility rules and a nationwide work requirement. The legislation is projected to reduce Medicaid spending by $1 trillion over the next decade and could result in coverage losses for 10 million… read more…
Pensions & Other Retirement Accounts
Is Your Pension Considered Earned Income? Tax Planning Rules
When it comes to tax planning rules, many retirees often ask one question in particular: is a pension considered earned income? The short answer is no—pension income is generally not classified as earned income for tax purposes. Unlike wages, salaries, tips and self-employment earnings, which qualify as earned income, pensions fall into the category of… read more…
Growth Investing
Do Hedge Funds Beat the Market? Returns and Risks
Hedge funds are often associated with sophisticated strategies and the pursuit of outsized returns. But do hedge funds beat the market, or is that reputation overstated? These funds use tactics like short-selling, leverage and derivatives, yet their results vary widely based on market conditions, strategy and manager skill—and often fall short of index performance. A… read more…