Category - Taxes

1
The Power of Tax-Free Income for High-Income Earners
2
What Military Landlords Should Know About Section 1250 Depreciation
3
Roth IRAs Make Great Estate Planning Tools
4
Want to Make More Money Investing? Try Maximizing Your After-Tax Return
5
Will Your Golden Years Be Golden?

The Power of Tax-Free Income for High-Income Earners

“A penny saved is a penny earned.” Many people attribute this quote to Benjamin Franklin. However, I would change this statement – especially for high-income earners – to “A penny saved is more than a penny earned.” Why? Because taxes can impact your earned income so much.

Those in the top income tax bracket pay 39.6% federal tax on earned income. If you live in a state like Indiana, there may also be state and/or county income taxes. FICA (Social Security and/or Medicare) taxes may also be applicable. But wait…there’s more. As your income increases, certain tax deductions may disappear, …

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What Military Landlords Should Know About Section 1250 Depreciation

Just because you joined the military, you shouldn’t have to give up the right to buy a house.   While there are many things to consider, you may:

  • Buy a starter home
  • Purchase a home that you plan to live in, fix up, and sell for profit
  • Buy a home that you plan to live in after leaving the military

Whatever the reason, things don’t always work out as planned.  When that happens, many military people become landlords.  This article looks at one of the more overlooked aspects of being an accidental landlordSection 1250 depreciation.

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Roth IRAs Make Great Estate Planning Tools

A Roth IRA will protect your investments from its worst enemies: taxes and required distributions. Unlike their traditional counterparts, Roths don’t require you to begin withdrawals from the account once you reach the age of 70 1/2. With time on your side and your investments sheltered from taxes, your Roth will begin to experience what Einstein called the “greatest discovery of all time” – compounding interest.

If the tax-free growth of a Roth IRA isn’t enough to whet your appetite, the estate planning benefits it offers should seal the deal. Bequeathing a Roth is much the same as setting up …

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Want to Make More Money Investing? Try Maximizing Your After-Tax Return

Saving money on taxes has the effect of compounding, giving you more to invest.
Benjamin Franklin famously said, “A Penny Saved is a Penny Earned” and we couldn’t agree more. Investors are always looking for ways to grow their account balances. Reducing their tax bill might be the simplest way.
Here are a few ways to get more out of your investments by paying less in taxes:

  1. Long-Term Capital Gains – Hold investments a year or longer and gains are given favorable tax treatment over short-term gains (less than 1 year) which are taxed as ordinary income.
  2. Qualified Dividends
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Will Your Golden Years Be Golden?

In the past, most people relied on Social Security, pensions, and personal savings to see them through retirement. But with doubts about Social Security’s continued solvency, the decline of traditional pension plans, and savings rates at or near zero, this model just doesn’t work anymore. And simply contributing to qualified accounts (401(k)s, IRAs) isn’t enough. In this post, we’ll look at how to put together a comprehensive plan to help ensure your Golden Years are truly golden.

First, it’s hard to reach your destination if you don’t know where you’re going. Setting goals for retirement, while relatively simple, is critically …

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