Well, after seeing a long time client use over $100,000 worth of LT care this year alone, you may wish to visit this question closer. Fortunately, they had purchased LT care insurance.
Handy little tool to estimate your property taxes.
An easy read Dave Ramsey article points out a couple key pointers.
- Zero % ROI brings in nothing, in fact, inflation will eat it alive. You must invest.
- Jumping in or letting panic make you jump out…well, we just hear a sermon on this today. Read all of Mark chapter 13, then realize that there will be ups and downs but don’t run about in sky is falling mode. I know, easier to understand and you get older (ps, I’m older). http://biblehub.com/mark/13-7.htm
- Stupid Decisions. A good read is The Millionare Next Door. Those that stay the course don’t tend to make impulse buys. But on the flip side, if your investment has seen good appreciation, evaluate it for some profit taking. What does that mean ?
When clients accumulate more than one investment property, I show them how they compare against others they own. If they own only one, I’ll give regular feedback on others that are available and how they might compare (ROI). When I was in my 20’s, I was about to make about $10k on a flip that I had $3k into. Dad said, “so you’ll get this much out of it, then rent will stop, and what will you do with the $x’s ?” He’d been trained as a teacher
with an Economics masters degree so it was a straight forward question. I’ve used this approach each time I or a client has cleaned up a house. There are +’s and -‘s to a. selling, b. renting it out, c. ?….you get the idea. I prefer to get investors – and home owners as well – thinking more, jumping off cliffs of optimism less. At the same time, if your $50k house bought as a rental has now shot up to $120k in value and we can get that same rent from a another $75k house, well, I can lead you to water but I can’t make you drink.
See if you notice any trends. If so, please comment what you see.
|History of income tax rates adjusted for inflation (1913–2010)|
|Number of||First Bracket||Top Bracket|
|1913||7||1%||7%||$500,000||$12 million||First permanent income tax|
|1917||21||2%||67%||$2,000,000||$36.9 million||World War I financing|
|1925||23||1.5%||25%||$100,000||$1.35 million||Post war reductions|
|1932||55||4%||63%||$1,000,000||$17.3 million||Depression era|
|1941||32||10%||81%||$5,000,000||$80.4 million||World War II|
|1942||24||19%||88%||$200,000||$2.9 million||Revenue Act of 1942|
|1944||24||23%||94%||$200,000||$2.69 million||Individual Income Tax Act of 1944|
|1964||26||16%||77%||$400,000||$3.05 million||Tax reduction during Vietnam war|
|1981||16||14%||70%||$215,400||$561 thousand||Reagan era tax cuts|
|1982||14||12%||50%||$85,600||$210 thousand||Reagan era tax cuts|
|1987||5||11%||38.5%||$90,000||$187 thousand||Reagan era tax cuts|
|1988||2||15%||28%||$29,750||$59.5 thousand||Reagan era tax cuts|
|1991||3||15%||31%||$82,150||$143 thousand||Omnibus Budget Reconciliation Act of 1990|
|1993||5||15%||39.6%||$250,000||$410 thousand||Omnibus Budget Reconciliation Act of 1993|
|2003||6||10%||35%||$311,950||$401 thousand||Bush tax cuts|
|2013||7||10%||39.6%||$400,000||$406 thousand||American Taxpayer Relief Act of 2012|
Just when you thought you’d outsmarted the system lying to Ceasar.
First the questions:
- Standard mileage rate or
- Actual costs
Next, the entity question:
- Self employed or
- LLC or S Corp or C Corp
- Using GPS app log ?
- Paper log ?
- If corp titled, is there mixed pers/bus use ?
Well here you go:
(Good advise for the rest of us too)……
Things You Must Have If You Opt Out
If you are going to opt out, there are some things you must do for the rest of your life from a common sense perspective to make sure you and your family are taken care of. They are things you should be doing anyway, but you definitely should not opt out without having these things in place. Otherwise, you’re signing up for major risks that are just not worth taking.
- Term life insurance—You must have a level term policy that covers about 10 times your income. (That’s the average amount, but check with a professional who will take factors like age, income and specific aspects into consideration.) That way, if something happens to you, your family will be taken care of. If you die with children under 18, they would receive a Social Security check, so you’ve got to have a life insurance policy in place if you’re going to opt out, and you must keep it—period—because Social Security is not going to be there for your family to count on.
- Long-term disability insurance—If you become disabled and have opted out, you will not receive anything from the S.S.I. at all. Do not opt out without having a good long-term disability policy in place. Once you have it, keep it!
- Retirement savings – a 403(b) and Roth IRA—You will not be receiving a Social Security check at retirement if you opt out. So what?! If you take the thousands and thousands of dollars you’d be paying into Social Security and put that into a Roth IRA in a good growth stock mutual fund, you’ll retire with dignity times 20!
- Long-Term Care Insurance—Dave recommends long-term care insurance the day you turn 60. So if that’s you, add that to your list of must-have coverages!