Most investors such as retirees looking for current income are having a hard time finding suitable ways to invest. The 10-year Treasury note yielded 15 percent in 1982 and that dwindled down to two percent at the end of 2012. So, where can you find good investment these days? Many suggest using exchange-traded funds (ETFs). They are a low-cost way to build a portfolio with stocks and bonds. It provides diversification, liquidity and generally a cheaper way to invest than mutual funds.

Today, an income investor can find a reasonable ETF with a 0.4 percent expense ratio. Also, in order to diversify one’s investment to reduce risk, a basket of ETFs can be chosen from an enormous pool available. Behemoths like iShares, PowerShares, SPDR, PIMCO, Vanguard, Charles Schwab and many others offer a wide selection of bond ETFs for income investors. They may not be suitable for young, say under the age of 50, because their time horizons are much longer and other opportunities provide better investment vehicles. With an ETF, traditional laddering that is needed with bonds doesn’t come into play. At a time bonds, Treasuries and other traditional investment vehicles for income provides less than desired returns, ETFs can provide much needed income while protecting the nest egg.

Experts say that you do not need to carry a balance on your credit card to get a higher FICO score. Lenders report monthly balances to credit bureaus. Your balance is weighted against available credit and they create a debt to credit ratio. They will also look at your credit utilization and develop patterns that may negatively or positively impact your FICO score. Keep in mind that the amount you owe is only contribute 30 percent towards the FICO score. Other factors that are considered include payment history (35 percent), length of credit (15 percent), types of credit (10 percent), and new credit (10 percent). Paying off the entire amount owe on a credit card is also not going to reward you with a higher FICO score. The key factor here again is debt to credit ratio. Having a small balance won’t hurt, but utilization of credit also need to occur. So, use your credit cards for smaller amounts frequently and pay off the balance on time to avoid interest as well as impacting for a lower score. How small credit balance to maintain on each credit card? Experts say less than 30 percent of the credit limit will help to improve FICO score.

Credit and debit card uses are on the rise. Both claim that each card is safe to use. But most recent credit card breach at Target tells a different story. A closer comparison of the two still reveals that use of a credit card may hold some advantages over a debit card.

When it comes to protecting the customer, credit card is a better choice. Debit card is directly tied to your checking or savings account. But the credit card is not tied to any of the two and therefore, provides an extra layer of protection for the customer. In the event of a fraud or theft, credit card provides better chance of getting the fraudulent charge reversed. Another advantage of using a credit card instead of a debit card is reward points attached to most credit card purchases. Restoration of contested charges may take less time on credit cards compared to debit cards.

Whether it is a credit or debit card, use extreme caution when using your card at gas pumps and freestanding outdoor ATMs. They are known to carry unauthorized skimming devices that collect personal data from cards and use for fraud.

You contribute your after tax earnings to a Roth IRA account but earnings and withdrawals from it after meeting certain requirements is tax free. Roth IRAs carry certain advantages over Traditional IRAs. This makes Roth IRAs more appealing to many especially to elderly.

In addition to tax free compounded growth, Roth IRAs are not subject to required minimum distributions (RMD) which allows it to grow for longer period of time than a Traditional IRA. Traditional IRA distribution is required at you reaching 70 ½ years of age. This is why it makes more appealing to put Roth IRA funds into growth stocks and similar growing instruments.

When converting traditional IRAs to a Roth IRA, consider contribution limits and do it methodically. For 2013 and 2014, contribution limit for a ROTH IRA for those who are 50 years of age and over is $6,500. Your annual income may bring additional limitations. Married couples with combined income over $188,000 and single over $127,000 for 2013, contributions to a Roth IRA will be phased out. These limits for 2014 are $191,000 and $129,000 respectively. If you have no earnings, take a look at converting your existing Traditional IRA gradually into a Roth IRA.

According to the College Board annual cost including tuition, room and board at a public college is estimated at $17,000 and a private college at $39,000. To complete a four-year degree in a private college it will cost whopping $156,000 and a public college $70,000. How can a parent save up enough to cover college cost?

Start small and add when you get something extra like a bonus or any other type of windfall. Also as the child grow, childcare expenses will start to taper. You can increase the amount by adding the difference to the college savings plan. Any gifts from birthdays and any child’s earnings from all kinds of odd jobs can also directed to build the college savings plan.

Use a tax advantaged college savings vehicle such as 529 college savings plans. Some states allow tax deductions for contributions to the plan while all contributions grow tax free.

Another option is to use the Coverdell education savings account that allows $2,000 per year per child tax-free contributions. Funds can be used tax-free for college expenses as well as other secondary education purposes. You can also use your Roth IRA to pay for college education without triggering tax consequences for early withdrawal.

Best time to think about retirement is when you are working. It is not too late to plan. Sooner you plan for your retirement, better off you are going to be in retirement. No matter what, we all feel that we should have saved more for our retirement. Whatever the amount you saved make sure to spend it wisely. Better yet develop a budget during retirement.

List all the expenses you might need in retirement. Best place is your current monthly budget. You know some expenses such as commuting cost will go away but additional expenses will come into play. Not only your monthly expenses including healthcare, add those unexpected you might have to help with. Your kids may need support from you to buy a home or you may want to open up a college savings plan for your first grand kid. It doesn’t matter how small an item is, list them all. If you can come up with an expense budget for an entire year, it will make your retirement life much easier.

This will give you an idea how much money you need for a month. Now you can decide which retirement account to tap and how much you need to withdraw from each account.

If you think that your Social Security benefits are not taxed for Federal income tax, think again. When you worked, you paid taxes on your earnings including the amount you contributed to your Social Security. So, you think you don’t have to pay taxes again when you are receiving Social Security benefits, right? Wrong. Your Social Security benefits can be taxed under certain conditions. If you have substantial taxable income from other sources including 401(k) or 457 plans, IRAs, dividends, self-employment, pensions, and investment interest, your Social Security benefits will be subject to taxes. This practice started in 1983.

If your combined income in retirement, including one half of your Social Security benefits and income from all other sources, is more than $25,000 for an individual or $32,000 for married filing a joint return, then 85 percent of your Social Security benefits will be subject to Federal income tax. If you are faced with this, to avoid paying a hefty sum when you file your Federal income tax return, you need to plan in advance. You can either ask Social Security Administration to withhold Federal income tax from your monthly benefit check or pay estimated tax every quarter.

If your employer offers a 401k plan, it is one of the great vehicles to save for your retirement. Those who are in the public sector, many public sector employers offer 457 Deferred Compensation plans that are similar to 401k plans. Many employers traditionally match your contribution up to three percent of your 401k contributions. Another benefit is some calculate your Federal and State income tax on the balance after 401k or 457 contributions. In 2013, you can contribute up to $17,500 into your 401k or 457 plans and the limit of contribution for 50 years or older is $23,000.

Many 401k plans now offer Roth 401k. Just like in Roth IRA, your contributions will be subject to taxes but your withdrawal will be free of income taxes when you withdraw after meeting all withdrawal requirements. This is a great way to save for your retirement.

If you are maxed out on your 401k or 457 contributions, still you can contribute to a Roth IRA. For 2013, Roth IRA contribution limitation is $5,500 ($6,500 for 50 and older). Roth 401k and Roth IRA may provide a better than traditional 401k withdrawal options in an emergency before reaching all withdrawal qualifications.

Calculating certain tax breaks discourage U.S. tax payers. In the past, the IRS required those who work from home and take a deduction for using a portion of the home to go through somewhat cumbersome calculations. It required to add up home office expenses including home mortgage interest, property taxes, insurance, and utilities and takes a percentage share equal to the home office.

The new guidelines effective starting from 2013 will allow $5 per square feet of floor area up to 300 square feet and subject to a maximum of $1,500 deductible. You can use the new easy streamlined method if you elect to do so when you file your 2013 Federal Tax return in 2014. You will still be allowed to calculate home office deduction the old way if you elect to do so too.

During economic slowdown many start to work from home, self-employed or start a new business from home. Tax experts estimate that 5.8 million U.S. tax payers work from home and about 3.4 million claim the home office deduction. Many think the new streamlined process make it easier to calculate the home office deduction come tax time.