Want to Loosen Uncle Sam's Grip on Your Wallet?
Talking About MoneyWith Jim Larranaga(ARA) - The average person pays more than $6,000 in federal income tax, according to the Congressional Budget Office. If you cringe at sending a big chunk of change like that to Uncle Sam, you may be looking for ways to keep a little more jingle in your pocket. I'll give you some tips, but, like me, you should consult a tax advisor before taking steps that could affect your tax status.Maximize deductionsGive to charity. Support your favorite cause or clean out the attic and donate items you don't want to charity. Be sure to get a receipt for donations exceeding $250.Deduct qualified medical expenses.
Consider scheduling elective medical and dental procedures if you think your bills will pass the threshold for deducting medical expenses (7.5% of your adjusted gross income). Don't forget, long-term care insurance premiums may qualify for the deduction.Add up miscellaneous expenses. These and many other costs may be deductible if they exceed 2 percent of your adjusted gross income: union dues, subscriptions to professional journals, tax preparation fees, costs for a uniform you wear at work, expenses incurred looking for a new job and continuing education expenses.Plan for Your RetirementIn addition to being a great way to save for retirement, employer-sponsored retirement plans, such as 401(k)s, offer savings on your current income taxes. Generally, the money you contribute to your plan is taken out before taxes, so your taxable income, and thus your tax bill, is lower.*If you're eligible to make deductible contributions to a traditional IRA, the same principle is at work.* But instead of making pre-tax contributions, you make a contribution with money that's already been taxed, then claim a deduction for the amount on your income tax return.Accept Your LossesIf you have both winners and losers among your investments, you might consider selling some losing investments to offset the capital gains of the winners. Capital losses can be used to offset capital gains, dollar for dollar.
In addition, you may use up to $3,000 of losses to reduce your ordinary income. If you have losses exceeding $3,000, you can carry them forward and apply them to next year's taxes.Be Smart about Higher Education CostsThe Taxpayer Relief Act of 1997 created a number of tax-advantaged ways to pay for college. Many of these tax benefits are subject to income limitations and, in some cases, may not be combined.Education IRAs, set up for children under age 18, offer potentially tax-free growth.The HOPE Scholarship Credit or Lifetime Learning Credit may help you lower taxes with a tax credit.Deducting interest paid on a student loan is another possibility.Withdrawals from a traditional IRA before you reach age 59 1/2 are allowed without the usual 10 percent penalty if you use the money to pay higher education expenses.Since tax laws are complex and change frequently, it's important to consult a tax expert to help you plot a strategy for trimming your tax burden.* Taxes will be due upon withdrawal at ordinary income tax rates. Withdrawals made prior to age 59 1/2 may be subject to an additional 10% penalty.Jim Larranaga is Executive Vice President of Priority Publications, a Minneapolis-based publisher of financial newsletters..
Courtesy ARA Content, www.ARAcontent.com; e-mail: info@ARAcontent.com EDITOR'S NOTE: If you would like to run "Talking About Money" as a regular weekly column sponsored by a local financial institution, contact Jim Larranaga at 1-800-727-6397.Kindred Media Group and Solaris Entertainment Announce Production Begins on 'Superheroes'
West Hollywood, CA (ContentDesk) October 28, 2005 -- Kindred Media Group announced today that it has partnered with Solaris Entertainment to begin production on writer-director Ed Radtkes Superheroes, the first film to be financed at the production stage by Kindred.Produced by Greg OConnor ( Tumbleweeds, Miracle ) and Solaris exec Josh Fagin with industry veteran Ira Deutchman, Superheroes is an lyrical and imaginative independent feature film that tells the story of a thirteen-year old orphan thief who escapes the mean streets of New York by stealing video cameras with his friends and retreating into the documented lives of New York City tourists. Superheroes began production on October 15, 2005, and stars Jeremy Allen White, Peter Appel, Justin Soto, Samantha Hosie-Leung, Gil Rodgers, and Ed Seamon. OConnor is also producing the upcoming Pride & Glory for New Line, which will star Colin Farrell, Edward Norton, and Nick Nolte. Ed Radtkes last film, the highly acclaimed...
Kindred Media Group and Solaris Entertainment Announce Production Begins on 'Superheroes'
Ira > Kindred Media Group and Solaris Entertainment Announce Production Begins on 'Superheroes'
Estate Planning and Insurance Concerns When You Divorce
If you are getting a divorce from your spouse, you have a lot of planning to do.
You will need to name your own beneficiaries, organize your divided assets, and
set up your individual estate. It is important that you meet with a qualified attorney to discuss the specifics
of planning your estate to ensure that your wishes are carried out as you desire. You need to be well versed in the most strategic methods of dividing your joint estate so that you do not end up paying all of the taxes while he or she enjoys the benefits of your assets. I have outlined some important information for you to be aware of when planning
your estate after your divorce.
Please keep in mind that divorces lend themselves
to new structures for individuals. You will want to meet with a qualified attorney
to discuss how to best protect your new estate. Assigning Your Beneficiary
During your marriage, chances are your spouse was the...
Ira > Estate Planning and Insurance Concerns When You Divorce
Financial Planning for Singles
Financial planning often gets a bad rap. Part of the problem is self-inflicted, since some industry participants would rather sell you a product than address your financial concerns. The process of planning is important, though, whether done with a professional or on your own. After all, you wouldn't leave on a long trip without looking at a map ? a poor analogy for some of us men, but you get the idea.So where should you start? That really depends on you and your situation. Since everyone has different goals, needs, risk tolerances, and concerns, everyone needs a unique plan.
But in general, planning needs to take into account at least three major areas ? insurance, investments, and estate planning. While you can fill a library with all the necessary information to properly address these issues, below are a few single-specific tips to help you get started.InsuranceInsurance is confusing. It comes in all shapes and sizes and covers everything from your car to your health. You...
Financial Planning for Singles
Ira > Financial Planning for Singles
Don’t Rely on Social Security or Pensions -- ‘Wealth Odyssey’ Explains Simple Retirement Saving Formula
ContentDesk) March 28, 2006 -- The old three-legged stool of the past is losing some of its legs and putting more and more pressure on people. Before, the combination of pensions, Social Security and personal savings in retirement plans were what people relied on for retirement. Nowadays, with pressures on Social Security and pensions, it has become even more important for people to focus on the third leg personal retirement plans those through employers and IRAs and Roths.
What is a simple retirement savings formula? How can a person judge if they are on track or not? The critical questions people need to ask is:...
Ira > Don’t Rely on Social Security or Pensions -- ‘Wealth Odyssey’ Explains Simple Retirement Saving Formula
It's High Time for Lifetime Savings Accounts
I'm constantly reading articles on the internet and in financial magazines in which so-called financial planning experts express perplexity as to why about 30% of employees do not participate in their employers' 401(k) plans. These writers don't seem to have clue. Well, allow me to enlighten them a bit. For the most part, it's because of the restrictions imposed on the employees' money. Also, because many people never know when they might need access to their money, they are unwilling to tie it up for long periods of time.
They would rather give up the tax advantages as well as their employers' matching contributions than to have those restrictions and age requirements placed on their money.
I know because I was one of those people for many years. I just couldn't bring myself to tie up my savings like that until I could see that my retirement was less than 25 years away. Unfortunately, it's not advisable or practical to wait that long to start saving for retirement.
...
Ira > It's High Time for Lifetime Savings Accounts
SMART NEW FINANCING TOOL FOR THE SMALL BUSINESS OWNER
Pressed for cash, many people will take money out of their individual retirement account (IRA) as a means to get quick access to capital. They do this even though they have to pay taxes and generally if they are younger than 59 ?, also pay a 10% penalty on the money they withdraw.Only as a last resort should one touch their retirement savings for anything other than retirement expenses. But, in those cases when you need to tap into your retirement savings, a way to get money out of your retirement account without paying the penalty and deferringthe tax was just made available beginning in 2002, as a result of a tax law change.Under the new law, those with a small business and no employees or only a spouse as an employee can establish Solo-Owner 401(k) plans and take a loan from those plans. The loan from the Solo-Owner 401(k) is not treated as a withdrawal. As such it is not subject to tax and the 10% penalty for early withdrawal as long as you repay the loan on time.You can roll over...
SMART NEW FINANCING TOOL FOR THE SMALL BUSINESS OWNER
Ira > SMART NEW FINANCING TOOL FOR THE SMALL BUSINESS OWNER
Life Insurance Quote Comparison Available Online Through miQuotes.com Mortgage Industry Partnership
miQuotes.com, a leading online provider of life insurance, has bridged the gap between the mortgage lending community and the life insurance industry by offering a simplified approach to marketing and Ira insurance Want to Loosen Uncle Sam's Grip on Your Wallet?
Ira > Life Insurance Quote Comparison Available Online Through miQuotes.com Mortgage Industry Partnership
Ira Want to Loosen Uncle Sam's Grip on Your Wallet?