Archive - July 2011

1
Should You Really Fear a Government Default?
2
Why Not Raising the Debt Cieling Is Stupid and Ineffective
3
Protecting Your 401k From a Government Default
4
Why Your Spouse May Be Your Best Option as an IRA Beneficiary
5
What To Do If You Get One Of These Notices From the IRS

Should You Really Fear a Government Default?



Dear Bridget,

Is there anything we can/should do about the pending debt-ceiling deadline?  Should I be getting cash out of the bank to pay for bills and groceries, for example?  A recent article I read makes me kind of anxious.  It says that if the politicians don’t figure something out, banks will be SOL leading to a massive cash-run on banks.

What do you think?

This isn’t a dumb question!

With the pundits out there beating fear drums, it’s difficult to ignore the drama playing out in Washington.  Talking about a run on banks is a doomsday prediction.  The markets, …

Read More

Why Not Raising the Debt Cieling Is Stupid and Ineffective

No working life in finance is complete without commenting on the debt ceiling farce in Washington. Politicians are mostly trading soundbites rather than engaging in any kind of meaningful debate. We would like to suggest a few additional soundbites that would make the exchanges in Washington more relevant:

  • Not raising the debt ceiling is like not paying your credit card to get out of debt: STUPID and INEFFECTIVE.
  • All of the proposed plans claim to reduce the DEFICIT, but you need a SURPLUS to pay down debt. Washington is fighting about how quickly things should get worse, not how to

Read More

Protecting Your 401k From a Government Default

There seems to be some hope of a solution as Congressman Ron Paul Says `No Doubt' debt ceiling will Be raised. He was interviewed on Bloomberg late Thursday 7-28-2011.

Also Roger Altman, a former Treasury Assitant Secretary did not feel we would have a Treasury default. He was interviewed on Bloomberg on 7-29-11.

David Rosenberg of Gluskin, Sheff said today he feels that the Treasury won’t default and that the crisis could be cathartic resulting in steps being taken to make the nation’s finances better.

My opinion regarding an extreme case of potential default is that if the government refused …

Read More

Why Your Spouse May Be Your Best Option as an IRA Beneficiary

Since a surviving spouse gets the most tax breaks of all possible beneficiaries (other than a charity, perhaps), it seems that choosing your spouse as the beneficiary of your IRA may be the best way to go.

This is partly due to the availability of delaying taking distributions.  Any other beneficiary must begin taking Required Minimum Distributions (RMDs) by the end of the year following the year of the original IRA owner’s death.  The spouse beneficiary may defer distributions to the year in which the deceased would have reached age 70½, without taking any action.

In addition, any other beneficiary …

Read More

What To Do If You Get One Of These Notices From the IRS

We have been busy this summer responding to an extraordinary increase in correspondence from the IRS. With a tax gap of over $350 billion per year and increased congressional funding for IRS enforcement efforts, the IRS appears to be stepping up efforts to enforce collections and close some of the tax gap. According to an article in Accounting Today1, from 2001 to 2009 there has been a 670 percent increase in IRS notices. It’s also paying off for the IRS…78% of audits in 2010 collected an average $6,600 in additional taxes.

Updated IRS information systems are making it easier for …

Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login