tag:blogger.com,1999:blog-209929942011-11-27T17:46:56.088-06:00A Cynical Look at Taxes, Personal Finance, and InvestingKirknoreply@blogger.comBlogger701100tag:blogger.com,1999:blog-20992994.post-1146502737619140532006-05-01T11:56:00.000-05:002006-05-01T11:58:57.633-05:00

I don't have all the boxes unpacked yet, but The Investimist's new home is ready enough to launch. So, if you're reading this message, update your bookmarks to point to http://www.theinvestimist.com.

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1146063553966555262006-04-27T11:59:00.000-05:002006-04-27T12:09:37.336-05:00

Blueprint for Financial Prosperity is the latest blogger to get in on the "Zero Interest" credit card game. The basics of the game are that you open credit accounts that advertise zero interest on balance transfers for a given period of time (usually 6-12 months). That money is then placed in a high yield account (usually Emigrant Direct or HSBC) to make "free money".But is the money really free?

Kirknoreply@blogger.com2tag:blogger.com,1999:blog-20992994.post-1146069831496285792006-04-26T11:42:00.000-05:002006-04-26T11:46:01.416-05:00

A lot of people ask themselves that question every day. For retirement plans, it's an extremely confusing question for anyone, much less someone at the beginning of their careers (like me). I decided to test two web calculators to see if they were any more confident than I was in my own predictions (which say my retirement kitty will crap out in 20 years using current projections).I used the "

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1145970077954989302006-04-25T07:56:00.000-05:002006-04-25T08:01:17.966-05:00

Well, it's not so rare on Roth & Co. Tax Updates, but anyone that has to deal with §263A will appreciate this post. For people that aren't tax geeks, I would pass up the link, as you probably won't get the jokes anyway (though you may learn what to claim as business deductions for your illegal income).

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1145898660952968652006-04-24T12:04:00.001-05:002006-04-24T12:14:22.503-05:00

Last week, I called lawmakers that hired tax professionals while sitting on the primary tax writing committees a big part of the problem. Well, the TaxProf blog has a story on a 2008 Presidential candidate that has read the entire Tax Code, Tax Regulations, and the BNA Portfolios (a major source of interpretation of the Tax Code) cover to cover.Now, I am certainly not endorsing Mr. Cox, I just

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1145896472713335192006-04-24T11:33:00.000-05:002006-04-24T11:46:13.103-05:00

One of the most important ideas a parent should convey to their children is how to handle money. I may disagree later with my generation coming of age and our inability to handle our finances, but I think that many of us were hurt by not being taught to be fiscally responsible. The average college student graduates with $2,500 in credit card debt, which may not seem like a lot but can pile up

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1145668784615159952006-04-21T20:13:00.000-05:002006-04-21T20:39:41.946-05:00

Yes, yes, I know. You just filed your taxes and you don't want to hear another dang word about it. Well, too bad. I do this for a living, so I have to hear about it all the time. There is something that you should pay attention to in the tax/political world. It's the battle over the AMT, and it could hit your pocketbook.Congress is currently negotiating on the latest round of tax cuts. Well, it's

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1145550965213756452006-04-20T11:36:00.000-05:002006-04-20T11:58:49.943-05:00

One of my initial posts was wondering if the high-flying stock of Apple was a bit too high. At that time, Apple was trading at about 80, or at about a P/E of 54. Since then, Apple came down about 20% to trade below 60 (per charts at Yahoo! Finance). Last night, Apple reported profits that beat analyst estimates, sending the stock up nearly 3.5% (as of 12:30 EDT). Apple now trades at a more

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1145394455564096482006-04-19T12:07:00.000-05:002006-04-19T12:15:05.340-05:00

This week's article on the CS Monitor Work/Money section says that "even those of modest means can afford a financial planner". However, the article spends the vast majority of its real estate describing why people of modest means can't get an advisor.Financial planners help people build wealth and guide them toward financial milestones such as retirement, vacation homes, or funding children's

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1145379711382251212006-04-18T11:58:00.001-05:002006-04-18T12:01:51.383-05:00

The IRS has released two more resources for small businesses that are free for the taking.New Publication 1066C, A Virtual Small Business Tax Workshop DVD (with English, Spanish and Mandarin Chinese subtitles) and Publication 1518, 2006 Tax Calendar for Small Businesses and Self-Employed, are now available.The DVD is an innovative educational product designed to help small business owners and the

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1144252682054676562006-04-18T11:58:00.000-05:002006-04-18T11:55:44.116-05:00

The CS Monitor had an article in it's Work/Money section on how cash-strapped investors can break into the stock market. The basics of the article is that unless you have $2,500 to slap into a mutual fund, you're basically locked out of the market.The savior listed in the article is Sharebuilder. I've used Sharebuilder in the past and it's far from the savior it pretends itself to be. First, the

Kirknoreply@blogger.com1tag:blogger.com,1999:blog-20992994.post-1145279395895651122006-04-17T12:09:00.000-05:002006-04-17T11:46:34.500-05:00

There are a lot of things that I could say on this tax day. Many others are opining on the state of the system, or just hurrying to get last minute filings in. But I think this AP article (via Forbes) says everything I could say. Let's hear how easy the tax system is from those that are responsible for writing the tax law. "It's onerous and everybody knows it," said Rep. Richard Neal, D-Mass.

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1145035916461620362006-04-14T12:29:00.000-05:002006-04-14T12:31:56.476-05:00

I found this resource through work. It's a boatload of free templates for Excel. It includes tax forms, personal finance templates, calendars, etc. Even though I've developed my own version of many of these, it looks like the ones I looked through would work really well for someone to determine if their retirement plans are on track, for example. Or to get started on a budget. So, go check them

Kirknoreply@blogger.com1tag:blogger.com,1999:blog-20992994.post-1145024305571213822006-04-14T09:18:00.000-05:002006-04-14T11:52:09.406-05:00

The Christian Science Monitor hasa profile of various tax protestors who are refusing to file their taxes. Most of the ones profiled refuse to file their taxes due to their non-support of the US Military. Some don't file at all, some withhold what they believe is the military's share of the national budget. All of the protestors in this article claim that they donate what they would pay in tax to

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1144862783640571372006-04-12T12:24:00.000-05:002006-04-12T12:26:23.660-05:00

I am participating in the Carnival of Investing hosted by A Financial Revolution. Go check out all of the posts (there's 50 some to choose from).

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1144848892615588992006-04-12T08:34:00.001-05:002006-04-12T11:58:54.786-05:00

I can fully support this.Starlets at the Academy Awards receive lavish gift bags worth north of $100,000, just for being special. It's about time tax preparers got some of that.Maybe that time is coming. The Tickmarks blog reports that Bank of America is distributing iPod shuffles and stress balls to friendly tax preparers. Good, good. Of course, we wouldn't want other banks to feel slighted, so

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1144695549049903352006-04-10T13:56:00.000-05:002006-04-10T16:24:50.456-05:00

If you live in Massachusetts and run a small business, the Department of Revenue will host a series of tax workshops over the summer. It's a chance for free tax advice from the Department (and if you live in Massachusetts, you may need it).Once again, DOR will be offering free Small Business Workshops from May to August. These workshops are designed for the tax novice, and are intended for new

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1144688780950945102006-04-10T12:03:00.000-05:002006-04-10T12:06:20.950-05:00

I am participating in the Carnival of Personal Finance hosted by MyMoneyBlog.com. Go check out all of the posts (there's 50 some to choose from).

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1144609232849955122006-04-10T11:58:00.000-05:002006-04-10T11:54:30.460-05:00

The Tax Foundation used the Office of Management and Budget's FY 2007 Budget of the US Government to calculate the percentage of the Federal budget that goes to each of several broad categories.FunctionAmount Social security$ 0.21 National defense$ 0.19 Income security$ 0.14 Medicare$ 0.13 Health$ 0.10 Net interest on Debt$ 0.08 Education, training, employment, and social services$ 0.04

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1144606415356083322006-04-09T13:06:00.000-05:002006-04-09T13:25:45.523-05:00

The Tax Foundation released the results of their annual survey of US citizens regarding Federal taxes (PDF Link). The results are not all that surprising, I just wish that Congress would take a look at the results sometime. 52% of respondents said that they would be willing to give up some deductions to make the tax system simpler. However, 80% said the Federal tax system was overly complex and

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1144447081814486232006-04-07T16:53:00.000-05:002006-04-07T16:58:01.833-05:00

The IRS has certified several cars for the new Federal Hybrid Credit. In previous years, a deduction was allowed up to $2,000 for purchasing a hybrid car. The credit is much better as it is a dollar-for-dollar reduction of tax. For instance, a $2,000 deduction is worth $500 if you are in the 25% tax bracket. On the other hand, a $2,000 credit is worth $2,000 no matter which bracket you are in.

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1144168533901966282006-04-07T11:33:00.000-05:002006-04-07T11:43:58.086-05:00

Earlier this week, I blogged on one blogger's SEP-IRA in order to shield self-employment income generated by his blog. The IRS webpage has several resources on setting up and maintaining a SEP-IRA. The big pluses of SEP-IRAs are the high contribution limits (25% of compensation or $42,000) and lack of broad regulation (similar to 401(k) plans). The downsides are that contributions are limited to

Kirknoreply@blogger.com2tag:blogger.com,1999:blog-20992994.post-1144167693224310742006-04-06T11:40:00.000-05:002006-04-07T12:00:45.996-05:00

The IRS has released an updated version of their free Small Business Resource Guide co-developed with the SBA. The CD-ROM contains:The Small Business Resource Guide, CD-ROM provides critical tax information to small businesses including forms, instructions, and publications. The CD also provides valuable business information from a variety of government agencies, non-profit organizations, and

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1144168252951879732006-04-05T11:47:00.000-05:002006-04-05T11:50:39.820-05:00

(Due to the length of this post, I've broken it down into two pieces. Read part one here.)My current allocations as of 3/31 were:0.49% Cash48.02% Domestic Value13.09% Emerging Markets15.20% International12.86% Real Estate10.34% Domestic GrowthI am primarily a value investor and seek out value stocks that pay dividends. One of my largest holdings is a Fidelity fund that specializes in underpriced

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1144167974375570562006-04-04T11:24:00.000-05:002006-04-05T11:49:52.850-05:00

(Due to the length of this post, I've broken it down into two pieces. Here is part one.)Professionals and personal finance bloggers often tout the benefit of rebalancing your portfolio every so often in order to maximize gains. The problem is that they never explain how to go about doing this. I try to rebalance my IRA every quarter when I receive the dividends on my investments. To me, this is

Kirknoreply@blogger.com5tag:blogger.com,1999:blog-20992994.post-1143501074100942412006-04-03T12:11:00.000-05:002006-04-03T12:06:28.330-05:00

It's a small amount involved, but this blog has a pretty good discussion on employment taxes and retirement for those that are self-employed. SEP-IRAs are basically pension plans for those that are self-employed. You can contribute up to 25% of self-employment income (with a maximum contribution of $42,000) as an employer. As an employee, you can make an additional contribution up to the IRA

Kirknoreply@blogger.com1tag:blogger.com,1999:blog-20992994.post-1143828024597428812006-03-31T11:56:00.000-06:002006-03-31T12:04:51.316-06:00

The Tax Foundation Tax Policy blog is one of those hard-core tax geek blogs that I love even if I often disagree with their conclusions. Today, they have a lighter item that fits well with this blog. "Pitching-In to Help Reduce Public Debt"With the April 17th tax deadline looming, Americans are feeling the weight of their annual income tax burden. But there's a quirk of the federal tax code that

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1143649858082040892006-03-29T11:50:00.000-06:002006-03-29T12:07:17.390-06:00

The CS Monitor Work and Money section has a good article on using the Web to find a job. Why is this important? Only 5% of new hires are found via newspaper classified ads these days. More than half are found as a direct result of a job being posted on the internet. Most companies use software to match a resume to a job. Many even have simple surveys on their website that can disqualify you based

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1143501061065612862006-03-28T11:11:00.000-06:002006-03-28T11:29:47.023-06:00

The first crack in the solid wall has appeared. One of the KPMG partners indicted for selling multiple tax shelters costing the US billions of dollars has pleaded guilty in order to receive a reduced sentence. The ex-partners (they were indicted and thrown out of the practice in order for KPMG to escape indictment) had kept a united front that the shelters were not illegal at the time they were

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1143482347587042672006-03-27T11:42:00.000-06:002006-03-27T12:01:10.386-06:00

The IRS released it's latest data book which summarized the audit activity for fiscal year 2005 (ending September 30, 2005). 1.2 million returns were audited in FY 2005 out of 130.6 million filed, which works out to an audit percentage of 0.93%. So, you're chances are 1 in 100, right? Well, not exactly. It depends how much you made, what forms you filed, and how you filed. If you made less than

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1142529737048674432006-03-23T11:45:00.000-06:002006-03-23T12:02:18.883-06:00

Earlier this week, I mentioned target retirement date mutual funds in a post about money managers. I mentioned that the funds are often too conservative, but I didn't go into great detail. Luckily, the Washington Post saved me a long post by explaning this exact phenonoma in a recent article. The Vanguard funds are far too conservative. A portfolio aimed at a 45 year old, still 20 or more years

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1143135449981240092006-03-22T11:26:00.000-06:002006-03-23T11:46:04.103-06:00

The IRS has released 5 Revenue Rulings describing various tax scams that people should not expect any mercy from the IRS if they use them on their tax returns. Revenue Ruling 2006-17 emphasizes to taxpayers, promoters and return preparers that inserting the phrase “nunc pro tunc” on a return or other document submitted to the Service has no legal effect and does not validate an invalid return,

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1142962564508547872006-03-21T11:32:00.000-06:002006-03-21T11:36:04.700-06:00

Yes, another post bashing looking closely at H&R Block. Their current advertisements feature a guarantee that customers will get the largest possible refund from the IRS. They will refund their fees to you if you can find a way to get a bigger refund. Sound familiar? Looking at the IRS Press Release on finding a tax preparer, the number one hint was:Be careful with tax preparers who claim they

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1142877056910564572006-03-20T11:50:00.000-06:002006-03-20T12:05:05.450-06:00

CNN Money's "Ask the Expert" column takes on professional money managers.The basic question is whether a science teacher should ditch his collection of mutual funds for a professional money manager that will take 2% of assets as his fee. The Expert says it's likely that he'll lose out since he'll be paying 1% more annually than he is paying now for a service he could do himself. He does have a

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1142530965754957682006-03-16T11:31:00.000-06:002006-03-16T11:46:08.233-06:00

The US Senate passed the necessary, but politically senstive, bill to raise the debt of the United States to $8,985,000,000,000. The reckless spending of the US Congress has to come to an end soon as the debt is now nearly 3/4 of our annual GDP (according to the CIA Factbook) and has increased by 50% since President Bush took office. Congress needs to follow the same rules as everybody else that

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1142440808565997112006-03-15T10:40:00.000-06:002006-03-16T07:50:43.576-06:00

H&R Block is back in the news. This time, Eliot Spitzer is suing the company over what the company calls "Express IRAs". These accounts were created to take advantage of their customers a 2002 tax law change that allowed low income taxpayers that contributed to a retirement account to take a tax credit for the amount they contributed. H&R Block set up these accounts so that their customers could

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1142358406606714252006-03-14T11:36:00.000-06:002006-03-14T11:59:34.886-06:00

CNN Money has a list of 5 tax items that may red flag your return for audit by the IRS. Keep in mind that the IRS keeps what actually goes into the decision very secret, so this is just a guess. It's a pretty good guess based upon experience, but it can change at any time. 1. Overkill on Charitable ContributionsAah, the prototypical "fudge" number on people's tax returns. These have been abused

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1142258521519583962006-03-13T12:02:00.000-06:002006-03-14T11:34:41.186-06:00

Previously, I had blogged about H&R Block's use of customers tax data to sell them stuff. I suggested that wasn't such a good idea and may be illegal. Well, it seems like they were just ahead of the curve. Currently, companies can give your tax return information to affiliates if they bury it in a disclosure that you have to sign. The IRS has decided it just might be a good idea to allow

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1142271689380214082006-03-13T11:40:00.000-06:002006-03-13T11:41:29.400-06:00

I am participating in the Carnival of Personal Finance this week. Go check out the Investimist post as well as all the other excellent posts. I will likely be posting on several in the upcoming week. For anyone checking out the Investimist for the first time, welcome and get comfortable. I can be reached by leaving a comment (I will always try to respond). I welcome comments (and even the

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1141920607682562692006-03-10T12:10:00.000-06:002006-03-10T12:06:59.290-06:00

USA Today has an article on how my generation is not saving enough for retirement. While you could truthfully strike "my generation" from the above sentence, it's particularly an issue because we have time to know and shouldn't be having this problem. Nearly 80% cite daily living expenses as a barrier to saving. While I know this can be a legitimate issue, there are ways to cut living expenses to

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1141834175187243992006-03-08T12:09:00.000-06:002006-03-08T12:03:50.070-06:00

I love the advice of the Motley Fool. They are usually spot on when talking up value stocks (though they thankfully abandoned growth stocks after the tech bubble). However, they sometimes forget they are talking to a lay audience. The advice that they give is impeccable. However, not everyone has the ability, or time, to not only become an expert in one industry but to read through SEC filings.

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1141754407860514862006-03-07T11:49:00.000-06:002006-03-07T12:04:08.453-06:00

The WaPo has an article on the median American family from a financial perspective. And it ain't pretty. It has about $3,800 in the bank. No one has a retirement account, and the neighbors who do only have about $35,000 in theirs. Mutual funds? Stocks? Bonds? Nope. The house is worth $160,000, but the family owes $95,000 on it to the bank. The breadwinners make more than $43,000 a year but can't

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1141318109206985002006-03-03T11:48:00.000-06:002006-03-03T11:53:06.816-06:00

The WaPo has an article on the future of retirement benefits and the discussions now taking place.One of the ideas floated includes an automatic IRA for employees that don't have pension benefits through their employers, either in the form of a true pension or even a 401(k) plan. The idea would be modeled on the Federal Employees Thrift Savings Plan and would allow employees to opt out if they do

Kirknoreply@blogger.com2tag:blogger.com,1999:blog-20992994.post-1141235594315613262006-03-01T11:53:00.000-06:002006-03-01T11:53:14.403-06:00

Consumers once again spent more than their incomes in January. Personal incomes rose 0.7% in January, but spending rose 0.9% meaning consumers spent all of their raises and then some in January. That, in and of itself, isn't entirely bad. However, coupled with the fact that we were already at a negative savings rate, that means consumers were spending more of their savings in January. This is not

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1141148650363363522006-02-28T11:36:00.000-06:002006-02-28T11:44:10.423-06:00

CNNMoney has a good reminder that your abode isn't the only thing that needs spring cleaning. Your finances could also use a good look-see. Their five suggestions are:* Shred paperwork you don't need. Bank/Credit Card statements after one year, paystubs other than your latest. Titles and CDs as soon as you get rid of the investment. * Consolidate all your IRAs into one IRA so that you only need

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1141008251645559952006-02-26T20:41:00.000-06:002006-02-26T20:45:53.690-06:00

I am participating in the Carnival of Personal Finance this week. Go check out the Investimist post as well as all the other excellent posts. I will likely be posting on several in the upcoming week. For anyone checking out the Investimist for the first time, welcome and get comfortable. I can be reached by leaving a comment (I will always try to respond). I welcome comments (and even the

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1140803761334535642006-02-24T11:56:00.000-06:002006-03-16T07:48:13.986-06:00

H&R Block had to restate the past two years of earnings due to "tax problems". The media, including this Reuters article takes it as being that they messed up on their own tax returns. I can tell an accountant didn't write the article. What H&R Block fudged made an honest mistake on was in its accounting for income taxes. The story says that it's state tax rate used for its financial statements

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1137527697507628362006-02-23T12:07:00.000-06:002006-02-23T12:13:52.533-06:00

MSN Money has an excellent article on not biting off more house than you can chew. Any first time homebuyer has heard it from older relatives: "buy a little more house than you can afford right now, you'll grow into it". The article lists reasons why that advice worked last generation, but doesn't translate well now. Inflation. Rapidly rising prices in the 1970s and early 1980s meant you could

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1140630460379862772006-02-22T11:33:00.000-06:002006-02-22T11:47:40.676-06:00

CNNMoney's "Ask the Expert" column highlights one of the glaring weaknesses of the "consumer-driven retirement" idea. A worker just moved from a job that offered a 401(k) to one that doesn't. They were dutifully socking away the max under their 401(k) plan ($18,000 including catch-up contributions) but now is wondering what they can do without the 401(k). The only answer is the IRA or Roth IRA,

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1140457116436290672006-02-20T11:36:00.000-06:002006-02-20T11:38:36.456-06:00

“Ugh, my financial advisor called, it’s time for my yearly ‘check-up’”“That’s good he makes you do it every year, even if it’s just more revenue for him.”“Yeah, I should go, it’s at least less painful than the dentist”“And just as important, can I ask you a question? Is he a ‘fee-only’ advisor?”“I have no idea. Does it matter?”“Well, yes. It’s really important actually and most of the big name

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1140096365012970482006-02-16T07:26:00.000-06:002006-02-17T11:58:40.986-06:00

My first real post was an explanation of the scams that "instant tax refunds" truly are. On Wednesday, California joined the legion of states suing H&R Block over their use of Refund Anticipation LoansLockyer wants Kansas City, Missouri-based H&R Block to reimburse customers in an amount he said could reach the hundreds of millions of dollars, and pay a civil fine of at least $20 million.H&R

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1139939761816887952006-02-14T11:49:00.000-06:002006-02-14T11:56:01.863-06:00

In honour of the day, I thought I'd point out an article that says that married people build wealth faster than single or divorced people. [P]eople who walk down the aisle and stay hitched accumulate nearly twice as much wealth as those who are single or divorced.Economist Jay Zagorsky of OSU's Center for Human Resource Research, tracked the financial and marital status of more than 9,000 people

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1139842549868403122006-02-13T08:55:00.000-06:002006-02-13T11:59:04.340-06:00

The Motley Fool (which I love for general advice but not necessarily for stock picking) has a commentary on idiot-proofing your IRA.While the list is not exhaustive, following these five ideas will go a long way to pumping up returns for retirement. * Stop ignoring the little things* Don't overpay The Man* Avoid overdosing on accounts* Keep your hand out of the cookie jar* Don't diss dividends

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1139233712583837492006-02-10T11:48:00.000-06:002006-02-10T13:06:18.936-06:00

This part five in a weekly series focusing on lowering tax bills and making the process of filing slightly easier. Today, I’ll focus on whether or not to use a tax preparer.Throw up your handsThe CS Monitor has an excellent article on selecting a tax preparer. Several of the points in the article are worth noting. First, tax preparers do not have to be licensed in many states. The article points

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1139508637295380062006-02-09T12:10:00.000-06:002006-02-09T12:15:26.946-06:00

This part four in a weekly series focusing on lowering tax bills and making the process of filing slightly easier. Today, I’ll focus on whether or not to use tax software.To Use or Not to UseI am a firm believer in non-tax types using tax software. The major products from Intuit and H&R Block are so easy to use that most people should be able to follow along without much problem. They are

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1139328046493140572006-02-07T09:59:00.000-06:002006-02-07T10:00:47.940-06:00

This part two in a weekly series focusing on lowering tax bills and making the process of filing slightly easier. Today, I’ll focus on the easiest way to lower your tax bill using money you’re already spending. Use Tax-Deferred AccountsThis past year, I used my Dependent Care and Health Care Spending Accounts, my 401(k), and my wife’s pension in order to shelter about $10,000 from Federal

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1139247473634137082006-02-06T11:32:00.000-06:002006-02-06T11:40:30.320-06:00

I finished my taxes over the weekend (would have had them done last weekend, but was waiting on a W-2). This week I will focus on tax-related items for preparing your returns this year and making next year's process that much easier. Today's installment is for next year. Keep Those Receipts!I managed to do my Federal and State taxes in under two hours on Saturday and Sunday. While it has

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1138894411227287502006-02-02T09:33:00.000-06:002006-02-02T11:51:28.823-06:00

The IRS has issued it's annual guide on finding the right tax preparer. It includes helpful hints such as:* Avoid preparers who base their fee on a percentage of the amount of the refund.*Use a reputable tax professional who signs your tax return and provides you with a copy for your records.*Consider whether the individual or firm will be around to answer questions about the preparation of your

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1138807320056181692006-02-01T09:19:00.000-06:002006-02-01T09:23:34.693-06:00

One of the reasons I love listening to Bloomberg Radio on XM is that I love to hear analysts squirm. Some of the hosts are particularly good at putting the screws to analysts that do ridiculous things. This morning they had on a UBS analyst that cut his price target on Google this morning after the earnings they reported didn’t meet analyst expectations. That’s not all that unusual. Feeding new

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1138636322894063962006-01-30T09:43:00.000-06:002006-01-30T10:07:06.270-06:00

Going hand-in-hand with the earlier post, Bankrate.com has an article on getting the proverbial debt-monkey off your back. Since 2000, Americans' outstanding credit card debt increased 18 percent, according to figures tracked by the Federal Reserve.During the 1990s, the amount of debt racked up by consumers more than doubled. One survey puts the average credit card balance among low- and

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1138634108063785392006-01-30T09:09:00.000-06:002006-01-30T09:18:49.676-06:00

The headline to this AP article made me cringe. "Savings Rate at Lowest Level Since 1933". What was worse were the details in the article. The Commerce Department said Monday that consumer spending rose by 0.9 percent in December, more than double the 0.4 percent rise in incomes.Basically, that means for every $1 in additional income for the average consumer, they spent $2.25 in December. Wow,

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1138384327029662132006-01-27T11:44:00.000-06:002006-01-27T12:08:13.676-06:00

As an accountant, I'm torn on tax complexity. While it keeps me employed, I am of the belief that taxes should not require an accountant, especially personal income taxes. One of my favorite quotes is from Roth, CPAA tax practitioner who opposes the devil of tax complexity is a bit like the preacher who struggles against the forces of evil: we fight on the side of the angels, but Satan is good

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1138216412770302262006-01-26T11:53:00.000-06:002006-01-26T11:54:40.183-06:00

From the "if it sounds too good to be true, it probably is" file, Bankrate has a Q&A on the latest debt elimination scam sweeping the country.One is that credit card lending is really illegal, so if you stop paying them and they take you to court, you'll win with the secret, and expensive, legal strategy you will be sold. Yours is a variation on that theme -- it's a scam, pure and simple. They

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1138210191202716872006-01-25T11:27:00.000-06:002006-01-25T11:33:17.600-06:00

Well, I maxed out my first credit card last weekend. I know what you’re thinking “That goes against every single rule you and every other know-it-all preach!” Well, it does in a way. But I’m not paying 25% or 15% or even 5% on that balance. When we purchased our house, we inherited the washer and dryer of the previous owner. They were of unknown age and, frankly, pretty crappy machines. The dryer

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1137446371324047742006-01-20T11:55:00.000-06:002006-01-20T11:59:10.230-06:00

I blogged earlier this week about CNNMoney's suggestion to aggressively take home office deductions whenever possible. I suggested that might not be the best idea because the percentage of the home that is used to take the deduction is disallowed when calculating the capital gains exclusion for home sales. I was only partially right. You must pay capital gains on any depreciation that you have

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1137777187775107742006-01-20T11:13:00.000-06:002006-01-20T11:39:46.753-06:00

Money Magazine has an article on four steps you can take to improve your credit. The last section is the most important, how to clean up your credit. The first three sections deal with obtaining a credit report, making sure only "good" credit shows up on your credit report, and protecting your identity. Everyone that doesn't understand what actually goes into a credit report needs to read this

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1137687322367905112006-01-19T10:15:00.000-06:002006-01-19T11:56:08.273-06:00

CNNMoney has an article on six “can’t-miss” tax breaks for 2005 (they should really be doing 2006 so people will look ahead), most of which are changing consumer behavior type breaks or are so targeted that most people won't be able to use them. I’m not a huge fan of changing consumer behavior in order to capture tax breaks. Usually, the amount of the tax break is not worth the hassle of changing

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1137441289776709132006-01-17T11:54:00.000-06:002006-01-17T12:10:35.013-06:00

One of the stock values that I understand the least is Apple. While I would have loved to have owned a stock that has tripled in each of the last two years, the valuation now simply does not make sense to me. I'm guessing that the P/E of 54 is due to the growth of the iPod. It's true that sales of the little music player have been growing exponentially, but a P/E of 54 seems to say that will keep

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1137421594263764412006-01-16T08:26:00.000-06:002006-01-16T09:02:31.203-06:00

Ah, the time of year when H&R Block and other accountants pray on those that hire them to prepare their returns. Their predatory technique is the Refund Anticipation Loan.The Refund Anticipation Loan is sold as a "win" for the consumer. You don't have to wait the six weeks to get your tax refund. Woohoo! Right? Wrong. The interest and fees for them - which can run 30 percent or higher of the loan

Kirknoreply@blogger.com0tag:blogger.com,1999:blog-20992994.post-1137292339740065152006-01-14T20:29:00.000-06:002006-01-14T20:57:02.306-06:00

The first question you should ask any blogger or website is their motivation for doing the site. Mine is that there is a lot of sharks in the water in the world of personal finance, taxes, and investing (most have a "recognizable" name). I've found only a few sites that actually try to help people rather than try to sell them something. It didn't shock me that just about every major brokerage

Kirknoreply@blogger.com0