Here’s a question for you: What institution is the largest U.S. employer and the chief supplier of our nation’s productive capital?

Need a hint? It has been in operation longer than any other American entity and is guaranteed to be producing long after today’s businesses have disappeared.

Still stumped? It earns no appreciable revenues and does not pay its 85 million workers. It provides no insurance, no retirement or Social Security benefits and only has a few days off, if any.

It’s motherhood. As Americans, we will spend approximately $20 billion this year trying to pay tribute to our mothers who are, of course, priceless. But if we can’t put a price on motherhood, we must at least pay attention to its costs. According to the USDA, on average, it costs $25,000 to $300,000 to feed, clothe and house a child up to age 17.

With these thoughts in mind, if your Mother is still around, please go give her a hug and a kiss!

Happy Mother’s Day.

disclosures:http://www.hechteffect.net/?page_id=31

Q: Do you have to pay Social Security tax on more income this year?

A: Yes you do. The maximum earnings that were taxed for Social Security was $113,700 that has increased to $117,000 in 2014. That is an extra $223 that you may pay in Social Security tax. If you are self-employed, the tax is doubled. Don’t forget the Medicare tax. Medicare tax is assessed on all of your earnings, not just the limit attached to Social Security tax.

disclosures:http://www.hechteffect.net/?page_id=31

orlando magorlando mag

Like many girls I love shoes. When I moved to Florida I dumped about 40 pairs and before I moved in with my Husband, I dumped another 20 pairs. This shocked my Husband. How could I just throw out so many pairs of shoes? Men pay much more per pair of shoes then we generally do. My Husband said to me: “spend some money on your shoes, and then you can get them repaired vs. throwing them away.” That is what I started doing. Now I will not buy a pair of shoes unless I am parting with a well worn pair.

Spending decisions should not be made based on price; you have to also base your purchases on value. In this world where every penny counts, you cannot afford to be pound foolish. Quality always wins in the end.

disclosures:http://www.hechteffect.net/?page_id=31

In a country where not enough people save, the thought that your saving’s habits could hurt you seems wrong, but its not. Sometime, how you save can be the problem. Let’s look at a couple of examples.
At the beginning of the school year, we have tax free shopping days. There is a lot that can be bought without having to pay the State sales tax. That can be a big savings for many people but do you really need the stuff you are buying? Buying stuff on sale or in bulk just because it is a “bargain” is not a wise use of your dollars or even a way to save if you are buying stuff you do not regularly use. I know plenty of people that will buy just because something is on sale. What I then see happen is they have no room to store the stuff or it ends up rotting because they bought too much. Please don’t fall into this trap.
Over the next few blogs, I will be discussing more saving habits that can be detrimental.

disclosures:http://www.hechteffect.net/?page_id=31

Tax time is quickly approaching. I will be on Flashpoint with Lauren Rowe talking about our favorite time of year – tax time!

disclosures:http://www.hechteffect.net/?page_id=31

Especially when it comes to retirement savings in the 21st century. Many of our Mothers are in their 70’s and 80’s now, their retirement world is, and has been, much different than ours will be. Many of our Mothers did not work outside of the house and depended on our Fathers for their complete financial wellbeing. Our Parents put a lot of money into their homes knowing that they would appreciate greatly; they could sell the home and retire in fashion without a care in the world. Our Mothers also lived life to the fullest because they did not know very many people who lived beyond their late 70’s. We live in a different world and cannot afford to follow in our Mother’s footsteps when it comes to retirement planning.

We must assume that our homes will only appreciate 3 – 5% a year. Depending on when we bought our homes, we may never pay them off. A Reverse Mortgage has become the mortgage payoff tool for many of the baby-boom generation. We are also seeing that life expectancy is much greater now for our Parents as well as for ourselves. This fact alone is the primary reason everyone needs to start saving and investing at a much younger age and until the day we retire.

disclosures:http://www.hechteffect.net/?page_id=31