Articles of Interest
“The 12 Biggest Money Mistakes.” Monday, February 13, 2006 from Yahoo! Finance by Suze Orman.
“Trade With China: More Gain Than Pain for Americans.” Monday, February 20, 2006 from Yahoo! Finance by Ben Stein.
Other Useful Links
Salvation Army Valuation Guide
Verner, Perling & Company, P.C. Consumer Reports
Common Deductions That Too Many People Miss
1. Noncash Contributions:
Donated items such as clothes, furniture, etc. are tax deductible. Be sure to get a receipt and use tools such as the Salvation Army Valuation Guide to estimate the contribution amount.
2. New Points on Refinancing:
Any points you pay to refinance your home can be deducted on a monthly basis over the life of the new loan.
3. Old Points on Refinancing:
All unamortized points on an old refinancing are deducted in the year of a new refinancing.
4. Health Insurance Premiums:
Any health insurance premiums you pay are potentially deductible. However, they must be added to your medical expense pot.. If you’re self employed and not covered by any other employer-paid plan, you can deduct 100% of your health insurance premiums above the line.
5. Educator Expenses:
If you’re a qualified educator, you can get an above the line deduction of as much as $250 for materials you buy in 2005.
6. Miscellaneous Expenses:
Expenses such as investment advisory fees, tax preparation fees, and unreimbursed mileage or business expenses can earn you tax benefits, but they must exceed 2% of your adjusted gross income.
Homework/Additional Reading
Upcoming Financial Chaos Topic: Windfall Planning (In case you win the lottery or discover a rich uncle you never knew you had!)
I just discovered your podcast, and I’m glad to find someone doing a podcast that is offering honest advice.
I have a question based on something I heard from Suze Orman. She suggested that in today’s tax environment, one should only load your 401K to the company match. The reason is that there is no way that future tax rates will be lower than present rates for most people. Does it make sense to invest the 10% over my 5% match into a regular tax-efficient index fund instead of the 401K? (I no longer qualify for the Roth…)
Great podcast & web site. Pleaseeeee kept up the good work.
Q. PLease speak more about (variable) annuities.I am not sure if I should invest in one or not.Your last podcast stated in one of the 12 things not to do was invest in annuties,please explain why not & give any advantages if any. I am 53 with a windfall & good job with penson & will retire @ age of 62 with 30 years in Gov.