Forget about white hair and rocking chairs. The idea that all grandparents are "elderly" is as old-fashioned as rotary phones. However, the idea that grandparents spoil their grandchildren has stood the test of time.

Some things never change 
During in-depth interviews,* most grandparents age 50+ surveyed by AARP said being a grandparent was a "joy." Many mentioned that grandparenting is like parenting, only better since they don't have to take primary responsibility for providing care — or discipline. Citing the benefit of age and maturity, survey participants said they're better able to appreciate their grandchildren.

That's not to say the grandparents surveyed are only in it for the good times. Many said they feel a responsibility to help shape their grandchildren's lives by counseling them, passing on values, providing moral guidance and establishing intergenerational family ties.

Spending and spoiling 
 Has the recent recession put a damper on how much money today's grandparents are spending on their grandchildren? More than half of those surveyed said the recession didn't change anything. However, a similar number said they've made financial cuts in other areas so they can afford to keep spending on their grandkids.

Gifts that keep on giving 
 Instead of showering grandkids with more and more presents, some grandparents are giving gifts that make a difference, such as money for college or contributions to a savings (or investment) account. For older grandchildren who have earned income, funding a Roth individual retirement arrangement (IRA) is another gift that can provide long-term benefits. A Roth IRA's potential for tax-deferred earnings and eventual tax-free distributions** can be very attractive.

A life insurance policy is another gift with lifelong benefits. If you have grandchildren, talk to your financial professional about how you can spoil them — in a financially sound way.

* Insights and Spending Habits of Modern Grandparents, AARP, 2012

** Certain tax law requirements must be met.

FINRA Reference #FR2012-1030-0152/E 02/04/13

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'Tis the season . . . the one nobody likes: tax season. If you usually claim the standard deduction, itemizing deductions might be a better deal. If you already itemize deductions, here are some expenses you may be forgetting.

Health: You can include health and certain long-term care insurance premiums with your unreimbursed medical and dental expenses. The premiums may help put you over the "floor" (7.5% of your adjusted gross income (AGI)) that must be met before any of your medical expenses are deductible. Note: The 7.5%-of-AGI floor is scheduled to increase to 10% beginning in 2013 (some exceptions apply).

Home: If you recently refinanced your home, any points you paid generally can be deducted ratably over the life of the loan. The points may be fully deductible this year under certain circumstances.

Mortgage: Interest on your home mortgage is deductible, including interest you pay on up to $1 million borrowed to buy, construct or substantially improve a principal or secondary residence. The interest on a second mortgage or home equity loan or line of credit also may be tax deductible. (Limits apply.)

Charity: Qualified donations of either cash or property are tax deductible, within limits, as long as you have appropriate substantiation from the charity.

FINRA Reference #FR2012-1030-0152/E 02/04/13