Your Unbiased Advisor: reduce tax

Showing posts with label reduce tax. Show all posts

Friday, May 14, 2021

Lessons of investing great David Swensen

Is inflation really a threat to your money?

Current media spin is using inflation fear as a theme. Prices have risen because the economy is gaining strength after a pandemic shut down. Sure inflation exists. But it is a threat only if you are holding tons of bank CDs and bonds with low interest yields. Banks and bond issuers will have to bump up payouts to sell their new bonds so the old ones will be worth less. If you are holding a broad spectrum of stocks in a low-cost account, you will continue to enjoy the high earnings (stock market up 10% in ‘21). Do you really think Apple, Amazon, Google, Facebook, etc will stop growing and be defeated by 2% inflation? They will just raise prices to cover higher costs. For instance, Amazon has already increased revenue by raising the cost of selling my books. For most of us long-term investors, stocks are the safest investment strategy. Stocks will protect us from inflation since the average return of 11% is greater than the 3% inflation rate. Plus, since we invest in tax-free accounts, we earn an extra 25% by NOT paying income taxes on our withdrawals. 11%-3% = 8%. 8% is greater than 2% CDs/bonds.

Go tax-FREE: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072

Most of us regret not having emergency fund

We all have financial regrets—few high school students learn how to manage and grow their assets. There is a simple tax-free way to grow your emergency fund at better rates than a bank CD. Bank CDs are safe but you lose money to inflation over time. Saving for the unexpected means not cashing in your savings for a new Playstation. Opening a tax-free account for $1,000 with a low-cost target-date fund can provide $15,000 after only a few years of saving. You contribute $10,000 over time and you have $10,000 available when you need it. You pay no income tax, penalty or default interest. If you have no emergency, your money grows tax-free for years. Even if you add no more money to this fund, you could easily have $500,000 when you stop working. When you start saving early in your life, you use time to build wealth. You let the Miracle of Compounding work for you. You put in $10,000 and receive $500,000 tax FREE. You can not find a better investment plan than that. And there is money there when you need it. You have a Wealth Reserve for life.

https://www.amazon.com/Your-Wealth-ReserveTM-Tax-FREE-Investment/dp/1484954882

GOP asks us working people to pay more

“Uncollected taxes equal the total taxes paid by the lower 90% of taxpayers.”

According to 5 IRS commissioners, the wealthy don’t pay their taxes. In fact, by not paying their fair share, we and our kids will end up paying for their $2 billion tax break. Those who don’t pay taxes increased their wealth by 55% this past year. Now the GOP complains about the deficit when asked to pay for the infrastructure bill which will create more jobs. Most corporations have had a fantastic year and keep more of their profits. In fact, most large American firms pay little or no taxes because they are able to claim their ‘home’ is in a foreign country where taxes are lower. For some companies like Amazon we pay for their refunds. Other corporations have paid Congress for sweet deals and are actually subsidized by our tax dollars despite big profits. Congress needs donations for elections so members don’t dare touch the tax laws. This is the American version of socialism: Socialism for the rich: the rich take the profits while we pay for the deficits created by gov tax breaks. Congress is full of millionaires. They make the laws. As Mitch says, Congress will “turn America into a socialist country." Already gives money to rich.

https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

Is this tax avoidance scheme right for you?

This strategy is called a syndicated conservation easement. It is a land deal that the IRS says is often an abusive tax shelter. Congress created this “incentive” in 1980 for owners who pledge to never develop their properties. Through a broker, you join other investors to buy large acres of land and promise never to develop it. You get a whopping tax deduction of as much as five times the amount invested. This is one of the tax avoidance schemes that Trump is being investigated for on his upstate NY property. He claimed he does not pay taxes because “I an smart” during the election. The IRS Commissioner Charles Rettig told a Senate panel last month that 28,000 taxpayers are under examination, some for similar land deductions. $21 billion in tax deductions are now being challenged. This tax avoidance strategy may be right for you since the rewards are much greater than the costs if your deduction is disallowed. Most investors never face jail and would have to pay tax later rather than now. Legal staff is available to help you avoid ever paying your taxes. With IRS’s current lack of enforcement staff, working Americans are more likely to pay the taxes you avoid than you are. Working Americans can avoid paying your taxes by using their own legal tax shelter.

Use the workers’ shelter: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072

Help your graduate avoid paying for tax cuts/subsidies for the rich

High school and college graduates need the best gift you can give them: a future of tax-FREE income. Get them started now since your gift can grow a THOUSAND times its value over time. For instance, $50 invested now can provide them with $20,000 when they need it later. Since you have started your grad off with this special IRS-approved tax shelter they will find it easier to keep saving/investing the right way. They will end up with a tax-FREE retirement. They can create a $500,000 tax-FREE account. Some young people have grown their accounts to over $1 million by investing $167 a month while they work. They will pay NO taxes on their wealth. They can avoid future tax increases. They can boost their savings by 30% just with the fed/state tax savings alone. And if they need a home down payment or business start up fund, they can use the contributions tax and penalty FREE.

Perfect gift: https://www.amazon.com/Tax-Shelter-Young-Americans/dp/1500426520

Lessons of investing great David Swensen

The legendary head of Yale endowment passed away this week. He changed ivy investing at many schools by developing a much wider asset mix to try to steady the flow of capital for scholarships and expenses. Over his tenure at Yale his asset picks returned 12.4% per year on average with dips during the trying years of 2008-09. What can we learn? During this period—1985 to 2020—the stock market index fund you owned earned 13.02%. The Vanguard’s equivalent earned 13% after 0.04% fees. Swensen invested new money in new types of assets. He relied on the Miracle of Compounding—reinvesting dividends and interest to match the S&P 500 index over a long time. His last 10 years grew $100 to just under $300. Our last 1, 5 and 10 years’ returns were also exceptional: over 13%. He was not a fast trader. His portfolio included many of the stars that are represented in the top global corporations of today.

Invest like a pro: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

How can you and your spouse agree on a spending plan in retirement?

Just like planning the family vacation, you both need to discuss your future money situation. If your spouse has a different vision of retirement, if you don't agree on financial issues or you avoid them completely, then conflicts are inevitable. Left unattended, these problems may become so serious that they threaten your relationship. Most of us have fights over money—usually spending habits and dishonest dealings. Actually 29% of divorced boomers said they ended their marriage due to disagreements about money. You have to discuss where all money comes from and goes in a detailed way. Exactly how much is being spent in a month by both of you is important to know. Buying secret lottery tickets or secret food/liquor stores is just the beginning. If you are not used to sharing this info, you will not be able to know how much to spend in retirement. Sure you both could agree to keep a certain amount for secret purchases, but you must be careful. You both must agree on the investing strategy in retirement. So when the market falls temporarily, you have a plan (emergency fund) to still keep spending on essentials. If you are subsidizing a child, you must agree on how much and for how long. Otherwise you both could end up running out of money too soon. Your discussion should include the cost of aging or healthcare changes. Do you have a reserve to cover those costs? Finally, make and update your wills, power of attorney, health care directives and final passing arrangements.

Make plans together to stay together: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

Can you withdraw 4% from your nest egg annually?

Financial advisors often fall back on this old rule as a guide to retirement income. This rule was created by William Bengen with data from the 80s when lifespans were shorter and advisors did not have computer software to provide a comprehensive retirement plan. Those assumptions are null and void. You can determine your rate of withdrawal based on your needs not your advisors’ guesswork. One of the assumptions that can throw off your expected retirement income is that your portfolio needs to be in fixed income—CDs, bonds and annuities. This has proved to be dangerous for you but a safe harbor for advisors. Advisors are not likely to be managing your money for the rest of your life. They can only guess what will happen in the next 1-3 year window. You are safer using the growth and income strategy that Warren Buffett recommends.

https://www.amazon.com/4-Retirement-Rule-Wrong-Lifestyle/dp/1492218960/

Is life insurance EVER a “great” investment?

“For some people, [permanent life insurance] can be a great investment” says one sales person. “Above all, life insurance is most compelling typically as an investment for high-net-worth individuals who are in a high tax bracket and are dealing with taxable accounts,” he adds. Finally, this sales person admits, “you already enjoy most of the tax benefits that are afforded cash-value life insurance.” You are better off buying and holding a non-dividend stock so you can avoid paying tax on your accumulations, just like permanent life insurance. Cash value life insurance is never a good investment. If you invest to grow your wealth, your wealth becomes your legacy more efficiently than expensive life insurance. Most of your premiums are going to the agent and the insurers’ profits.

Create your Reserves not the insurers’ Reserves: https://www.amazon.com/Life-Insurance-Need-Save-right/dp/1480002178/

Last chance to reduce taxes due May 17

If you owe, you have one last chance to get a refund or reduce what you owe. Thanks to the deductibility of a traditional IRA contribution, you may cut yourself a break. Instead of owing the government, you could have a refund. The amount depends on your situation. By opening or adding to your traditional IRA contributions for 2020 not 2021, you give yourself a retroactive refund. Yes, the IRS will receive a contribution confirmation from your bank or mutual fund firm but at least you have one less bill this month. Even though every tax preparation company can get you an extension to file the paperwork, the tax itself must be paid by May 17. There are rules.

https://www.amazon.com/Your-Wealth-Reserve-Save-year/dp/107028288X

Where is that refund?

The Internal Revenue Service today reminds taxpayers that the most convenient way to check on a tax refund is by using the “Where’s My Refund?” tool at IRS.gov or through the IRS2Go Mobile App.

Where is the stimulus 1 or 2? If you did not receive stimulus 1 or 2, start filing here: https://www.irs.gov/newsroom/recovery-rebate-credit.

Stimulus 3? https://www.irs.gov/coronavirus/third-economic-impact-payment

Tax returns for 2020 are due May 17 not April 15 but the estimated tax payments are still required on schedule. The IRS will redo your taxes and send a refund if you paid tax on Unemployment in 2020 or you paid ObamaCare’s excess advance premium tax credit repayment.

Have tax forms; will file … for FREE but WAIT . . .

If you have unemployment income, ObamaCare coverage you don’t have to make payments. If you already filed and paid tax on your unemployment income, IRS says it will send you a refund of the tax automatically. DO NOT FILE an amended return to obtain a refund on this tax. Taxes due MAY 17. Input the W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. forms you have. You can file for FREE online. If you didn’t receive a correct form, file a Form 4852. Usually filing your state return costs as little as $15 unless you buy the Pro helpline. Avoid $300-400 paid preparer fees—new IRS return forms mean higher fees.

Retirees did not have to take their RMDs in 2020 so taxes may be less: it was a good time to convert IRA to Roth IRA for tax-FREE future. Unless you were self-employed, you can’t deduct home office expenses of working from home. You can deduct as medical expense all Covid prevention supplies. Some states continue the health insurance mandate and penalty unless you have an exemption. Since the IRA contribution deduction has no age limit now, you may reduce your income/taxes by making a contribution of up to $7,000. The standard deduction went up to $12,400 single; $24,800 joint. Jan 15 last day to make 2020 estimated payments. You have to report your April/May and December/January stimulus payments even though they are not taxable. Some of us receive a bank credit; some a debit card; some a check. Even if you don’t have to file, you should file so scammers can’t use your SS number to mess up your IRS file. Tested E file software ratings. Efile Jan 15; IRS processing Feb 12.

E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

What to do if you can’t pay by May 17?

Avoid the penalty for not paying estimated tax. Ask for an automatic extension to file till October. If that does not work for you, you can apply for a payment plan. An individual can setup an IRS installment plan if you owe $50,000 or less and can pay back the amount owed in 3 years. If you are a business owner, you can setup an installment plan if you owe $25,000 or less. The IRS will charge a one-time fee of $105.

If you own less than $25,000 and can pay the amount owed within six years, ask the IRS for a streamlined payment agreement. The IRS will charge a one-time fee of $102.

Request an Offer in Compromise if you cannot pay the total amount owed. This allows you to settle your tax debt for less than the total amount owed if you will be unable to pay back the total amount owed within 10 years. The IRS will charge a one-time fee of $150. Given the pandemic economic hardship, apply for the extension to file now: https://www.irs.gov/pub/irs-pdf/f4868.pdf

Special circumstances help: call the IRS Taxpayer Advocate Service 1-877-777-4778 for free assistance.

More ways: https://www.irs.gov/newsroom/heres-how-people-can-pay-their-federal-taxes

IRS has $1.3 billion refunds for 2017 tax returns

Unclaimed income tax refunds worth more than $1.3 billion await an estimated 1.3 million taxpayers who did not file a 2017 return, according to the IRS. “Time is quickly running out for these taxpayers. There’s only a three-year window to claim these refunds, and the window closes on May 17.” If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. Filing instructions are available on the IRS.gov Forms and Publications page or 800-829-3676.

You have 17 days to collect your cash!

**********ACCOUNTABILITY**************

Like 1776, this period is a test of democracy—We rejected an "American fascist"

One woman vs The Big Con

Then they came for me—and there was no one left to speak for me.

One person stood up to McCarthyism too

Are Christian Nationalists anti-democratic?

Crazy GOP: Jan 6 coup was “a normal tourist visit.”

First active-duty service member charged over the Capitol attack.

When ‘Truth and Reconciliation Commission’?

How Govt wastes our money:

Hackers shut down pipeline to the East Coast: Let’s hire hackers--not pay $5 million!

Banks to give credit cards to those without credit: we pay banks for defaults

SCAMS/SPINS:

McConnell leads GOP against any Dem plan for jobs, votes, bridges, etc, etc 100%

Biden will force unemployed to take jobs: GOP states attack own voters out of work

Trumpist judge reinforces evictions/foreclosures: 4 million must move

Trump runs GOP via Quislings: Fear of dictator’s wrath controls next election

Can old GOP be saved? Trumpists deny 2 party democracy: Americans voted him out

Healthcare sharing ministries Aliera Sharity caught misleading coverage; bills unpaid

TrumpCare policies leave patients with big bills; insurers with big profits; called junk ins

Kiwanis pays men sexually abused Centralia group home director staff other boys no jail

Trump may be taken down by his money man like Al Capone: NY meets Al Weisselberg

Lawyers take HALF sex abuse victim’s fund from Boy Scouts’ 95,000 claims

Hate/fear used by media manipulator for profits: profit in the hate/fear since we follow

10% plastic recyclable only: industry redirects us from their polluting environment

Was your iPhone hacked? 128 million folks data poached and Apple never told us

Aston Martin switches to making SUV to repay new owner: fashion mogul Stroll.

Mark Lisser Knightsbridge caught selling fake IPO shares $2 million

Matthew Clason CT caught stole $600,000 by inducing trust and using jt checking

“Gunfights at the OK Mall” FL: when everyone has a gun; we all can get killed! Wyatt?

IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.

IRS: Free special ID protection PIN goes on your return so scammers can’t take refund

IRS: Previous tax returns available online: https://www.irs.gov/individuals/get-transcript

IRS tips to avoid scams: https://www.irs.gov/newsroom/tax-scams-consumer-alerts

Is it a scam? Check AARP scamline 877.908.3360. BBB Scam tracker

Check IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams

https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers

Find tax preparer: https://www.irs.gov/tax-professionals/choosing-a-tax-professional

Check Social Security: https://blog.ssa.gov/

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

Jobs

SC goes back to firing squad to execute people: “more humane” lawyers say!

Business buys vax for employees: back to work and more productive/profitable

Employers who pay for your college education: a life saver for some

Fast growing companies may help your career grow too

Who owns your account now?

Some insurers are paying claims electronically: no more waiting for check to fix it

Car brands your mechanic loves: Paying $1200 a year in car maintenance?

Brexit sending business from London to EU: London headquarters to Paris, Milan

Advisors earn $170,000 a year from you: paying 1-2% a year erodes nest egg by 63%

Miracles:

Why men fear the needle and don’t want vax protection for us

Miracle: 3 “old boys” with guns chase Black and kill him: blame Black’s past now

1 million more Americans have health care: Biden opens the way for coverage for all

Normal life is OK w/shots except where local law/rules require controls says CDC

We can apply for Medicare online: https://blog.ssa.gov/apply-for-medicare-online

We can apply for Social Security online: https://www.ssa.gov/benefits/retirement/

We can apply for health care online: https://www.healthcare.gov/

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts available at http://dankeppel.blogspot.com/

Friday, May 7, 2021

Can your advisor really give you the best deal?

Perfect gift for your graduate

High school and college graduates need the best gift you can give them: a future of tax-FREE income. Get them started now since your gift can grow a THOUSAND times its value over time. For instance, $50 invested now can provide them with $20,000 when they need it later. Since you have started your graduate off with this special IRS-approved tax shelter they will find it easier to keep saving/investing the right way. They will end up with a tax-FREE retirement. They can create a $500,000 tax-FREE account. Some young people have grown their accounts to over $1 million by investing $167 a month for years. They will pay NO taxes on their wealth. They can avoid future tax increases. They can boost their savings by 30% just with the tax savings alone. And if they need a home down payment or business start up fund, they can use the contributions tax and penalty FREE.

Perfect gift: https://www.amazon.com/Tax-Shelter-Young-Americans/dp/1500426520

When you win the lottery, follow Warren Buffett’s advice

Let’s say you win over $1 million. What do you do—pay half to the government and spend the rest? Historically, most winners end up with no money within 10 years. Instead, you could live on wealth income for the rest of your life. If you think you won, first, don’t sign the ticket. Contact a lawyer who can help with setting up an entity to claim the winnings and perhaps reduce the taxes. In some states, you can avoid publicity and ‘ugly relatives’ this way. Next you want a fee-only financial planner to help work out the use of the money after taxes. (Our CFP cost only $300 in 2018) If you choose the long-term payout, they could help you obtain a loan to fund your immediate spending needs (cars, mansion, travel, expense accounts, etc). A bank would love to help you since your entity can guarantee loan repayment. At this level of wealth, you don’t need to speculate on stock gambles. Follow Warren Buffett’s advice and use low-cost Vanguard funds to power your next 50+ years. He’s got $100 billion so he knows where to invest it.

https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

Do you need a financial miracle?

How long does it take to save $500,000 for retirement? Your best CD rate today is 1% for 5 years. It would take 100 years saving $3,000 a year (250 a month) to hit your goal. For most of us it will take a miracle to reach our goal of $500,000. The miracle we need is called compound interest. It works like this: if we took a calculated risk and invested in the changing top American corporations and reinvested their dividends into the business earning on average 11% a year, we would reach our goal in about 27 years. Long-term investors in low-cost stock index funds earn 11% a year on average—not every year but over their working lives. Check out how much you could have earned in stocks every year in the last century: http://www.moneychimp.com/features/market_cagr.htm.

So the choice is yours. The probabilities of the miracle of compounding working for you to reach $500,000 are over 90%. You are certain to never reach your goal in your lifetime using ‘safe’ bank CDs. In fact, you will lose money because inflation of 2% a year is greater than earning 1% a year. You need your money to earn money on its earnings too.

You need a miracle: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513/

Do you need financial future insurance?

Do you have a financial future? Set and reach your money goals. Set-up a tax-FREE investment account. Buy and hold 10 mutual funds all your life. The greatest impediment to financial freedom is debt. Most of us live paycheck to paycheck. Freedom from our chains of lifelong payments requires immediate action: cutting credit cards and amputation of some of our costly toys and habits. Going cold turkey is the only way to save our life in rehab. When we have financial freedom, we can buy new toys using the profits from our investments. Right now, you are making other people wealthy from your monthly payments. When you pay $161 per month for 10+ years on your credit card balance of $10,050, you will spend at least $19,360. You pay almost double for that same $10,050! I will show you how to be on the other side of the deal—collecting $20,000 for your investment of $10,000. Over time, you can be your own bank and own your toys outright. Your investments can provide you with a home down payment or business start-up. You can be assured of a financial future. You could be a millionaire from $9 a day. See page 39. Listen to how this parking lot attendant did it: https://www.youtube.com/watch?v=qlUIOxQr3bo. Unfortunately our schools don't teach us how to avoid becoming debtors for the rest of our lives. They could teach us how to accumulate $1 million by compounding $9 a day. If we learned how to double our account early, we would save ourselves the grief of financial enslavement for the rest of our lives. We could learn the simple financial essentials—accumulate assets as soon as possible. We don't need complicated insurance, mutual funds, or financial products to have the good life. We can buy our freedom with only $9 a day. We don't waste $3,000 a year on high-cost financial products and taxes. We avoid the two KILLERS of wealth accumulation—taxes and fees.

Get free: https://www.amazon.com/Financial-Future-Insurance-mutual-funds/dp/149355204X

Apply for Medicare B healthcare at Social Security

You need to apply online since most Social Security offices are closed. (I never found out why you apply for Medicare B coverage at SS offices.) If you currently have employer insurance, you may be able to buy Part B (doctors) coverage when you retire without paying the extra cost. You need proof from your employer that you qualify for special enrollment by using form L564. When you have your app form 40B and signed L564, fax them to your local SS office and call immediately so they can find the forms on their computer. Otherwise the DeJoy mail delay program may delay your coverage start date. Your app gets assigned to operators and eventually you can verify you have coverage via your online Medicare account. At this point you can prove to a private carrier that you have Part B if you are buying Part C & D an Advantage plan or Medicare Supplement to cover the gaps in ‘original’ Medicare coverage. America is the only country to make health care as complicated as possible so citizens are discouraged from getting coverage.

Start here: https://www.ssa.gov/benefits/medicare/

Can your advisor really give you the best deal?

Can advisors who get paid for sales volume really act as your fiduciary—acting only in your best interest? This historic debate continues as it becomes easier to manage your own money. For instance, a simple market index increased 56% in the last year versus advisors who took home huge paychecks. Did they work twice as hard? Since the 90s, investors have found the better way with low-cost mutual fund provider Vanguard. John Bogle, founder, created the first large company index open to the public. The 500 Index represents 3/4ths of the stock market at only 0.04% annual expense instead of 1-2% for advisor’s securities. This is important since your retirement income is largely determined by your gains minus your costs: $3 million vs $1.5 million for 40 year $3,000/year investments. Vanguard members who own all the Vanguard funds can pay a fee for service when they actually need financial advice. Example: you retire with a 401k of $500K. Cost to move to Vanguard is 0.04% or $200 a year. Cost for your advisor: $5,000 to $7,500. Vanguard funds are the investments recommended by Warren Buffett.

Go with unbiased advice: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

How do you know you will have enough in retirement?

Congress is thinking of changing the rules for annuities. The industry has not been able to sell as many recently so financial lobbyists have been paid a bundle to bundle up changes that few in Congress understand. Annuity sellers want you to think you get a better deal by locking up your money with them instead of using the growth and income strategy. If living longer and going into retirement with less money were problems that annuities could solve, the changes would be great. However, remember that sales people make big bucks on annuity sales and you pay for all those promises. Annuities are guaranteed by an insurance company but they may not be able to overcome long-term inflation because the payouts are based on current bond interest and interest rate hedging. You may be able to receive more income from an annuity than current bank CDs but your future monthly income may not cover your expenses. It is better for you to follow Warren Buffett’s advice in retirement.

Buy growth and income: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

Your retirement income puzzle

You are required to start taking your pension and IRA money out starting at age 72 (70 ½ if you reach 70 ½ before January 1, 2020). And you must take out a certain amount each year whether you need your RMD or not. You can only estimate how much you must take since it changes every year. Also you must decide when to start taking your SS benefits. You get more by waiting but every person must make the decision for themselves based on their current needs not on some guess of future income sources. So how can you solve this puzzle? You could hire a professional financial planner for a one-time fee or keep paying your advisor 1-2% a year as your nest egg grows. Either way you will only receive an estimate from these folks. There is no guarantee for the future. The key according to those who have been through this process for years is to keep as flexible with your assets as possible. Don’t lock your money up long-term. Don’t put all your money in bank CDs or bonds or an annuity. No one solution is guaranteed.

Planning helps: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

Last chance to reduce taxes due May 17

If you owe, you have one last chance to get a refund or reduce what you owe. Thanks to the deductibility of a traditional IRA contribution, you may cut yourself a break. Instead of owing the government, you could have a refund. The amount depends on your situation. By opening or adding to your IRA contributions for 2020 not 2021, you give yourself a retroactive refund. Yes, the IRS will receive a contribution confirmation from your bank or mutual fund firm but at least you have one less bill this month. Even though every tax preparation company can get you an extension to file the paperwork, the tax itself must be paid by May 17. There are rules.

https://www.amazon.com/Your-Wealth-Reserve-Save-year/dp/107028288X

Where is that refund?

The Internal Revenue Service today reminds taxpayers that the most convenient way to check on a tax refund is by using the “Where’s My Refund?” tool at IRS.gov or through the IRS2Go Mobile App.

Where is the stimulus 1 or 2? If you did not receive stimulus 1 or 2, start filing here: https://www.irs.gov/newsroom/recovery-rebate-credit.

Stimulus 3? https://www.irs.gov/coronavirus/third-economic-impact-payment

Estimated tax payments are still due April 15. If you are self-employed or do not have enough withheld from a paycheck, pension or Social Security, you may have to send quarterly payments to the IRS. Tax returns for 2020 are due May 17 not April 15 but the estimated tax payments are still required on schedule.

IRS will redo your taxes and send refund if you paid tax on Unemployment 2020 or you paid ObamaCare’s excess advance premium tax credit repayment.

Have tax forms; will file … for FREE but WAIT . . .

If you have unemployment income, ObamaCare coverage you should wait to file since the IRS has not yet implemented tax-FREE provisions of the new Covid law. If you already filed and paid tax on your unemployment income, IRS says it will send you a refund of the tax automatically. DO NOT FILE an amended return to obtain a refund on this tax. Taxes due MAY 17 not April 15. Input the W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. forms you have. You can file for FREE online. If you didn’t receive a correct form, file a Form 4852. Usually filing your state return costs as little as $15 unless you buy the Pro helpline. Avoid $300-400 paid preparer fees—new IRS forms mean higher fees. Unemployment insurance is TAXABLE on the Federal income tax return; not on some state returns. Some states do not tax your SS and pension benefits.

E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

What to do if you can’t pay by May 17?

If you own less than $25,000 and can pay the amount owed within six years, ask the IRS for a streamlined payment agreement. The IRS will charge a one-time fee of $102.

Special circumstances help: call the IRS Taxpayer Advocate Service 1-877-777-4778 for free assistance.

More ways: https://www.irs.gov/newsroom/heres-how-people-can-pay-their-federal-taxes

IRS has $1.3 billion refunds for 2017 tax returns

You have 17 days to collect your cash!

**********ACCOUNTABILITY**************

Like 1776, this period is a test of democracy—We rejected an "American fascist"

Cheney: Mr T is “poisoning our democratic system”

The BIG con: 2020 election was ‘stolen’

Facebook ban: Mr T used his account to "incite violent insurrection."

Judge: Trumpist Barr deceived us re: Trump prosecution

Terrorist blames FoxNews for attempted coup

When ‘Truth and Reconciliation Commission’?