Courtesy of SBSU Financial Services

Unforgettable Birthdays

Birthdays may seem less important as you grow older. They may not offer the impact of watershed moments, such as getting a driver’s license at 16 and voting at 18. But beginning at age 59, there are several key birthdays that can affect your tax situation, health-care eligibility, and retirement benefits.

59½ — You can start taking penalty-free withdrawals from IRAs and qualified retirement plans, provided certain conditions are met. Ordinary income taxes generally (more…)

It may be a “buyer’s market” in southern Utah but current fluctuations in the economy and the housing market can complicate the decision whether to buy a home or rent.

How do you know what’s right for you?  State Bank recommends that potential buyers ask themselves several key questions before making this important decision:

• Know your total costs including taxes, insurance and upkeep. If your total costs are more than 30 percent of your gross monthly income, you may be better off renting.

• What other debt do I have? Total rent or mortgage payments plus credit obligations should not exceed 35 to 40 percent of gross monthly income.

• The best interest rates go to people with the best credit scores, so what’s your credit score? If your score is low, you may want to delay buying a home until you can improve your score.

• How many years will I stay in the home? Generally, you need to be in your home for 5 to 7 years to make owning a home worth it.  The longer you plan to live someplace, the more sense it makes to buy.

Bottom line:  Calculate your home ownership costs vs. rental costs, and go from there.