Steven Sarrel

  Most personal loans have fixed rates and interest is calculated either daily or monthly on the remaining balance. So when you pay it off early, you stop the clock on interest. Let’s say you owe $5,000 and wipe it clean ahead of schedule — you’re cutting out months (or years) of interest you would’ve otherwise paid. That’s money back in your pocket. What Are the Best Ways to Pay Off a Loan Faster? A few solid strategies include: Add extra to your monthly payments.  Even $100 extra per month can shave down the balance quickly. Make lump sum payments. Tax refund, bonus, side income  — throw it at the loan. Refinance.  If you qualify for a better rate or shorter term, refinancing can accelerate your payoff. Be careful that you factor in upfront refinancing costs to ensure it makes sense to do. Overall, small extra payments can make a big difference over time. Prepayment Penalties Some lenders do charge a fee if you pay off early — especially if they’re losing out on in...

A tax refund advance loan is a short-term loan offered to taxpayers based on their anticipated tax refund. They rely on the projected refund as collateral, making the process quick but with specific risks and conditions. Considerations on Tax Advance Loans As an accountant, I’d highlight a few critical insights: Speed vs. Cost : These loans are marketed for their convenience — offering funds within days or even hours — but often come with fees, interest, or other charges that can significantly reduce the value of the refund. Some providers offer “no-fee” options, but these may be bundled with higher tax preparation costs. Misaligned Expectations : One risk is that the loan amount is based on an estimated refund. If the IRS adjusts the taxpayer’s return — for example, due to missing documentation or a mismatch in reported income — the loan recipient could face repayment challenges. Targeted Audience : Refund advance loans are often marketed to younger or lower-income taxpayers or those ...

As an accountant, I’ve helped clients claim some very specific tax write-offs that pertain to their unique situations and livelihoods. Below are a few surprising tax write-offs that could save you money. Gambling Losses While gambling winnings are taxable, you can deduct any losses up to the amount of your winnings, including losses from lotteries, raffles, and casino games. For example, If you won $5,000, you can deduct up to $5,000 in losses, but if you lost more than you won, you can’t deduct the excess. Some states allow this deduction, while others don’t. For example, Illinois & Wisconsin do not allow gambling loss deductions at the state level and New Jersey & Michigan allow deductions, but only for professional gamblers. Fostering Pets + Pet Care Expenses Another example is pet care expenses. If you foster animals for qualified charities, expenses like pet food, supplies, and veterinary bills can be deducted as charitable contributions. And if you run a business that inv...

Tapping into a 401(k) to buy a home should be a last resort. While it’s possible through a 401(k) loan or hardship withdrawal, doing so often undermines your long-term retirement goals. You not only risk derailing the power of compound growth, but you may also face taxes, penalties, and lost investment returns that are hard to recover. When It Might Make Sense In rare situations, accessing 401(k) funds might be considered. For instance, if a borrower is just shy of the 20% down payment threshold, using a 401(k) loan to bridge the gap could help avoid private mortgage insurance (PMI) and secure a better mortgage rate. However, most banks require down payment funds to be "seasoned," meaning they've been in your bank account for a certain period, typically 60–90 days so timing and planning are crucial. When to Avoid It Don’t tap into your 401(k) if: It compromises your retirement goals. You're uncertain about job stability; if you lose your job, most 401(k) loans must be...

  Building wealth is often about thinking differently. Millionaires approach money, investing, and lifestyle choices with a long-term, strategic mindset that separates them from the average person. Here are 10 key money principles that millionaires understand and apply consistently. 1. It’s Not About How Much You Make Millionaires focus on overall net worth — not how much they make annually. Your net worth is the value of all your assets (real estate, investments, retirement accounts, etc.) minus liabilities (debts). A six-figure salary doesn’t guarantee wealth if savings and investments aren’t more prominent than your spending habits or debt. In terms of spending, millionaires spend on things that grow in value, like real estate, and minimize their debt on things that don’t grow — like clothing. Understanding net worth can help people focus on how to best accumulate things that appreciate — like real estate, fine art, education, index funds and businesses and avoid spending on lif...

Many clients ask what low-risk, tax-efficient investments make the most sense in today’s market — especially for high earners looking to grow or protect capital without excessive exposure. Below are seven smart, accessible investment options that offer a range of benefits from steady returns to tax advantages. 1. High-Yield Savings Accounts (HYS) High-yield savings accounts (HYS) offer higher interest rates than standard savings accounts, sometimes even reaching 4–5%. For example, if you put $10,000 in an account offering 4%, you’d earn $400 in interest over a year. This is a solid option if you want low-risk growth for your cash while keeping it easily accessible. HYS accounts are a good choice for short-term savings, emergency funds, or parking money you don’t need right away. Online banks often offer the best rates and the FDIC insures accounts up to $250,000. 2. Certificates of Deposit (CDs) A CD is a time deposit where you agree to lock your money for a set term in exchange for a ...