Published on April 10, 2008 by Michael
It happens every year, and now it is happening again. It is tax time. Whether you are an employee on a W2 status, or self-employed on 1099’s, or both, or neither, if you have received any income in the United States, you are required by law to report it on a federal tax return.
For some folks who have only W2 income and basic deductions, a simple Form 1040 will do the trick. But for anyone who has self-employment income, expenses for higher education or mortgage expense or casualty loss, or income from investments of the sale of an asset, or any of 1,000 other types of income or expenses or events, then the simplicity of the 1040 disappears. Other forms are needed.
(more…)
Published on April 1, 2008 by ConsumerSafety Admin
It was taking as much time for our family of 7 to get dishes off the table and into and out of the dish washer and back into the cupboards and drawers is it was doing them by hand. Plus, it was often difficult to tell whether the dishes in the dishwasher were waiting to be cleaned or waiting to be put away. And that made it easy to put it off until it was too late; meaning that if they were dirty when we needed them, we ended up having to do them by hand anyway.
The fact that our old GE dishwasher was a poorly working hand-me-down helped make it an easier decision to retire it. I simply removed it and set it out with the trash. In its place we now keep our family-sized 40 gallon trash can – which we fill every 1.5 days!
(more…)
Published on March 9, 2008 by David
Brokers and banks have a vested interest in keeping a little secret from you. What’s the secret? The secret is you don’t need them to hold your IRA or tell you what you can or can not invest in. For the most part, the IRS doesn’t care what you invest it as long as you meet certain requirements. You can buy raw land, live animals, a Subway franchise, even create a corporation inside your IRA as an investment medium, complete with a a checking account and a debit card. Obviously you can’t buy your own home with IRA money and attempt to live there free, nor can you rent it to a family member. But you can remodel it and sell it for a profit – no taxes since it is inside a tax qualified entity.
Banks and brokers know this but have no incentive to see you transfer your IRA to another custodian like Sterling Trust Co. who has a who department dedicated to show you how to use your IRA money to invest in almost anything. Be careful and consult your adviser.
For more information contact:
David H. Disraeli, CFP(r)
david@lifepln.com
Published on February 16, 2008 by David
Tired of investments that go bump in the night?
The past 18 months have been anything but steady for traditional investments- those like stocks, mutual funds and bonds. In fact the S&P 500 earned only 5.5% last year and has already lost that and more so far this year. As a money manager for the past 22 years, I’ve used all sorts of traditional investments and techniques. But they all have one thing in common – they are dependent on a cooperative general market trend. So what’s a person to do when things get ugly.
Well the current sub-prime mortgage debacle has actually created an enormous opportunity for savvy investors. Most banks have drawn in their reigns which puts many, borrowers with good projects into never never land. What I’m leading up to is the concept of investing directing into secured real estate notes, just like a bank with an appraisal, title policy, servicing agent – the works. Except you get the interest and don’t’ have to support a bank lobby, tellers, ATM machines and stodgy management’s salaries.
How does it work? For more information check out my own blog. Most of the notes we fund have a loan to value of 70% and pay 14% monthly interest. Is there risk? Of course but very different from the stock market.
David H. Disraeli, CFP(r) david@lifpln.com
Published on February 12, 2008 by David
Would you go into business with a silent partner who said that you could have 66% of the profits of the business unless he changed his mind?
Sounds crazy except you’ve already done it. The IRS gets at least 1/3 of your profits when you add up FICA/ Medicare, income taxes etc. If you own an IRA it’s even worse. In the US, we have what I call two tax systems: The voluntary tax and the involuntary tax. People continue to pay taxes voluntarily because of lack of planning. Involuntary taxes are the ones you pay because you have to.
The problem with tax deferred assets like 401k’s and IRA is that you only own 66% of the account. No matter what you do, you can’t get your hands on the IRS’s 33%. Try it and you’ll see. Either you pay it or your kids pay it. And the propaganda that time value of money is working for you is wrong – just do the math.
What if you could convert a taxable asset like and into a tax-free inheritance to your heirs? Sound too good to be true? We’ll its not. Its called wealth transference and its done using insurance and the transfer mechanism. Not just any insurance, but a specially designed policy that allows you to use your IRA while you may need it, but converts it into a tax free inheritance to your spouse or children.
For more information contact me at
david@lifepln.com
David Disraeli, Certified Financial Planner
