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Tax Time And The Timing Of Tax

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Uncle SamApril 15th causes concern for many Americans because it means that it is “tax time.” Time for all of us to file our return or file our extension. We can file an extension providing that all of our taxes owed to the IRS are paid.

Uncle Sam does not care how long you take to file for your refund. He simply wants to ensure that you have paid your taxes.

Lots and lots has been said about taxes and their effects on our bottom line. Depending on our level of income and type of investments, taxes are not to be ignored. They play a big part of our finances.

Today, Todd and I discuss this issue as it relates to the timing of withdrawing your money and the impact that such withdrawals will have on our overall tax burden. Enjoy the show.

Social Security: Do You Know How To Maximize It And Are These Options For Filing In Danger?

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Social Security CardDo you know how to make the most of Social Security and maximize your benefits?

A recent article appearing in the Investment News informed the public that Congress has proposed changing the filing options for married couples. They buried the proposal in one of its pieces of legislation on page 150. Currently, a married couple has the option of filing and suspending, filing a restricted application, or filing merely on their own record. With all the combinations and different months from ages 62 to age 70 that a couple can file, there are thousands and thousands of filing scenarios. Today, Todd and I discuss this issue. Enjoy the show.

 

THE LEGACY BASKET: You Can’t Take It With You

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THE LEGACY BASKET:  You Can’t Take It With You

photo courtesy of James Williams (Flickr)

When he learned of his wealthy neighbor’s death, a man said, “I wonder how much he left behind.”  To that another said, “All of it.”

No matter how much or little we have, we can’t take it with us.  Estate planning allows us to prepare, protect, and provide in the exact manner that we intend regarding our possessions and for those we love.  A number of issues face the aging in this area and at this stage of their life.  Among these issues are: death, incapacity, taxes, and tort.

Today I discuss the various legal documents needed to help in this area of planning.  I discuss Living Trusts, Financial Power of Attorney, Health Care Surrogates, Testamentary Wills, and Advanced Directives (Living Wills).  Listen to learn more.   Enjoy the show.

THE FIVE BASKETS OF WEALTH: THE LONG TERM CARE BASKET

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THE FIVE BASKETS OF WEALTH:  THE LONG TERM CARE BASKET  Developing a disability concerns most aging adults. Statistics show that 2/3 of the aging population will need some form of Long Term Care for some period of time.

Even though statistically most of us will need skilled-care, only a small percentage of families have insured themselves and their assets against this risk. An extended stay in the nursing home could devastate your finances. With the average cost of care ranging between $6,000 and $8,000 per month, even a substantial amount of money could be lost in a few years.

Today, Todd and I discuss how leveraging your money properly can give you liquidity (if needed), a long-term care benefit (if needed), and if not, how those same dollars can produce a death benefit (legacy). Enjoy the show.

THE CASH RESERVE BASKET: Never forget, “Cash Is King!”

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THE CASH RESERVE BASKET:  Never forget, “Cash Is King!”

“Cash Is King!”

Essential to financial planning, smart money management allocates the right portion of savings to the cash reserves basket (financial liquidity).  Todd’s wife likes to call it “her sleep at night basket.”  Many wives agree.

As a rule of thumb, most financial experts recommend having three to six months living expenses in a cash account or cash equivalent account.  Why?  Because Cash is King.

Emergencies inevitably arise.  Unforeseen events are certain to come.  Without having this common sense diversification, a family could find themselves vulnerable to Murphy’s laws and suffer the financial consequences as a result.

Listen to today’s podcast to learn how your cash reserves can be leveraged to provide you the financial security that your plan deserves.  Find out how $1 can be made to do the work of $2 or $3.  Enjoy the show.

THE FIVE BASKETS OF WEALTH: THE INVESTMENT BASKET

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THE FIVE BASKETS OF WEALTH:  THE INVESTMENT BASKET

THE FIVE BASKETS OF WEALTH: THE INVESTMENT BASKET

We all want our money to grow.  How rapidly we can grow our money depends on the type of risks we assume.  Risks come in different forms – from inflationary risks where the value can gradually decline to capital losses where the value can quickly decline.  Risk should correspond to reward.

As you consider the placement of assets with the eye toward the future, financially, you should carefully gauge what types of risks you are confronting.  Measuring such risks involve a little more than simply identifying yourself as conservative or aggressive or somewhere in between.

In this installment, Todd discusses growing money in the investment basket as a part of the FIVE BASKETS OF WEALTH philosophy.  Enjoy the show.