Steve, Author at 2009 Taxes to 2024 Taxes

Succeeding With Your Taxes

Tax season is never fun. Man individual, especially if they are self-employed, dread the April deadline. Fortunately, it is possible for almost everyone to at least reduce their tax burden. It simply takes a keen mind and the ability to wade through quite a bit of paperwork. If you do not feel like you fall into such a category, you may want to make sure that you can find someone that will be able to help you. If you are familiar with the system, you should take the time to gather all the necessary data before filing. If not, you should make sure you work with someone that knows taxes well.

Take Your Time

In an era of quick online tax processing, one of the most important tips for a successful tax season is making sure that you take your time. Your taxes do not have to be filed the day your W-2 comes in, and it may be wise to wait a few weeks to gather the necessary information. Search out the relevant receipts from the last year, and do what you can to find out if you can take more than the average deductible. You may find that taking some time to do some research can save you hundreds, if not thousands, of dollars each year.

Turn to a CPA

Whether you have exhausted all other possibilities or simply do not feel comfortable doing your own taxes, you may reach a point at which you have to find a CPA. Fortunately, there are many accounting professionals in almost every area, and finding the right professional can help you to get your taxes done quickly. A great way to find such a professional is to use a business social networking site such as SaleSpider.com. Many professionals use such sites to find clients, and finding a well-recommended individual from contacts on the site is a great way to feel safe with your choice.

If you want to succeed in filing your taxes without having to overpay, you should make sure that you take the process seriously. Do not rush through an online program, and make sure to contact a CPA if you do not feel comfortable filing on your own. Taxes can be complicated, but there is no reason to pay more than necessary merely to avoid trouble. A bit of professional help can often mean the difference between owing money and getting a refund, so always be prepared to seek out the necessary aid.

5 Reasons You Should Hire a CPA This Tax Season (2012tax.org)
How to Choose a Tax Professional (2012taxes.org)

Options for Investing for Your Retirement

Many people get nervous when it comes to thinking about retirement investing. It can be a very confusing process with complicated terms and options available. However, it is vitally important to save for your future. The earlier you start the better when it comes to saving for retirement. The successful investors are the ones who consistently put money away no matter what the markets are doing. To reach your financial retirement goals there are a couple of options available to most people.

401(k)

If you work for an employer who offers a 401(k), or similar plan, it is quite easy to save for retirement. Whether or not you use the 401(k) at your job depends on a couple of factors. Many of these accounts are set up by commissioned salespeople who talk employers into using their plans. These plans often have much higher costs than if you invested on your own. Also, many 401(k) plans are very limited in the choice of funds you can invest in. You must compare your 401(k) with other investment options in order to determine whether or not is the right choice for you. However, if your company offers a match to the dollars you invest then it is wise to at least invest up to the percentage that your company matches no matter what the choices are in the 401(k). The reason is because the match that the company provides creates an automatic return on your investment.

Traditional IRA

If your company does not offer a 401(k) or you do not qualify for it than there is always a traditional IRA. Much like a 401(k), an IRA allows you to deduct the money invested in the taxes you pay. This allows you to put more money to work in your retirement account and you pay taxes later on when you take the money out in retirement. You could easily set up an IRA online with many different companies. You can set up automatic deductions from a checking account or savings which helps make investing for retirement quick and painless.

Roth IRA

Another form of the IRA is the Roth. It is identical to a traditional IRA with one big exception. You do not receive a tax credit for the money invested in the Roth. In return, since you are to pay taxes on your investment money, you never have to pay taxes on the money you withdraw in retirement. The best IRA plans are the ones who feature low-cost investing such as Vanguard.

There are many different financial calculators online which can help determine whether a traditional or a Roth IRA is the best choice for you. There are even calculators which allow you to compare a 401(k) with investing in an IRA.

When is borrowing from your 401K account a good idea? (2011tax.org)
Using Your 401k to Start a Business (2009tax.org)

Fee Based Investing Versus Traditional Investing

Today many people have become very skeptical about the current market and economy when it comes to saving for retirement. In fact the market seems to have become very volatile over the last few years and some are wondering what they could do to protect themselves today. While you can’t control what the market is going to do you can control where you invest your money and the fees that you pay and in this article we’re going to see which is better fee based investing or traditional investing.

The Traditional Way To Invest

For most people we invest our money in mutual funds. However, most mutual funds will contain as many as three main fees that could cost you a lot over the years. The first fee is the sales charge fee. This fee can run as much as 5% to 6% of every dollar you invest into the account. So if you invest $1000 and have a 5.5% sales charge you will end up paying around $55 in fees upfront.

The second fee that you will have to pay is an annual fee to maintain the account. The money from this fee will go to pay the fund manager, and make trades within the fund itself. Typical fees will range from as little as 0.19% to as high as 1.48%.

Finally, the last fee you may have to pay is a 12b-1 fee. This fee is a junk fee that goes to pay for advertising cost in most cases; however my suggestion is to stay away from these companies that charge this fee.

Fee Based Investing

Mutual funds can still be a good investment option but the problem with them is once you’ve set up the account and invested your money you won’t typically hear much from the representative after that. In fact most of them will enter the witness protection program never to be seen or heard from again because they’ve made their money and moved on.

So you might be wondering what is the best way to go then? The answer is investment advisers. An investment advisor is different because they are fee based and charge a flat fee up front. This fee typically runs around 2% annually. So if you have $10,000 in your account you could pay $200 over the course of a year’s time. On top of that the investment adviser has a vested interest in your account to earn more, because if when you earn more they will earn more as well.

Where To Get Started

So now that we know the difference between traditional investing and fee based investing you might be wondering where should I get started? One of the best IRA companies that does fee based investing is Foxhall Capital. This company deals within a global market place and believes that their is always a bull market somewhere in the world, and as a result they are always striving to keep you there.

So what are your thoughts, is fee based investing better or is it better to stick with the traditional method such as mutual funds?

Stock Carnival Ecstasy – October 4, 2011 (fastswings.blogspot.com)
Passive and Active Investing (fastswings.com)

IRA Investments:Planning Life After Retirement

The recent economic recession has compelled a lot of people to seriously think about their financial condition, including their lives after retirement. With the uncertainties in the economy today, it is but logical to make sure you are putting all your resources to good use. Thanks to convenient retirement plans such as Roth IRA, you can now get some sleep.

Roth IRA is relatively a young retirement plan, debuting on 1997. It was patterned after the traditional IRA except that it provided more benefits to workers. Employees approaching the retirement age are greatly considering making IRA investments because it has helped thousands of people all over United States since its inception.

How Roth IRa Works

In a nutshell, Roth IRA is just like any other savings account. But unlike regular bank accounts that you have, the savings that goes into your Roth IRA accounts are and can be used in several ways. When you have a Roth IRA account, you can contribute a portion of your annual income to that account. That amount will then be deducted from your annual tax return, and you will only pay the taxes on interest once you retire.

The biggest advantage that Roth IRA has over any other savings account is that, all the money in your Roth IRA can be used to make investments. You can use your Roth IRA money to invest in real estate, stocks, bonds, precious metals, and so on. But given the extremely affordable mortgage rates Florida these days, you might want to consider investing in real estate first.

Life After Retirement

There is nothing more rewarding that enjoying the fruits of your labor. Do not let yourself become one of those people who live an uncomfortable and difficult life after retirement. As early as now, consider your savings and investment options. Do not let the product of your years of hard work go to waste. You deserve no less than the best.

IRA Investing and Mortgage (2008taxes.org)
Wiser Roth Investing For Those Looking for Great IRA Rates (2011taxes.org)

A Tax Consultant Can Help You Save on Your Taxes

Do you currently run your own business? Do you find that taking care of the finances and taxes more bothersome than you care to admit? If you’re looking for ways to save on your taxes, why don’t you hire a professional tax consultant? Even if you know the tax laws yourself, since the laws are always being updated, there is a huge chance you could miss something. That’s why it is best if you find a professional that lives and breathes the tax code. If you manage to locate a good one, they can save you countless amounts of time, energy, and money. Of course, there is still the possibility of finding an inexperienced one that just causes anguish and wastes money, so watch out.

Before you choose a tax consultant for you, ask advice from friends and family. If you can find recommendations from someone you know, you may be able to find someone that is hard working enough and cares about you. Depending on the tax specialist’s speciality and who they work which, different kinds of consultants will be able to work with you. It’s often a good idea to review several candidates before you pick one and be aware that even if you hire someone that sounds the best for the job, you may still get a lemon. Listen to what your gut tells you and you should be fine.

You may not neccessarily need a professional but you’ll find that if you own a business, they can be invaluable. Some people don’t want to hire a tax consultant because it can be expensive, but they’ll make up for their cost in time. You’ll be glad you did, because they may be able to save money in places that you never noticed before. At the very least, you get to avoid the anguish of excessive paperwork.

TurboTax iPad App Allows You Tap Your Way to a Tax Refund (2010taxes.org)
The Only Way To Save For Retirement: The No Fee IRA (2008taxes.org)

Where To Get An IRA That Carries No Fees

Do you want to invest your money in an IRA but don’t want to get hit up with the high fees that they often carry? This seems to be the problem with most people who are investing their money for retirement. In fact some people have no clue as to how much they are paying in fees or what a good fee is. So in this article I’m going to show just exactly what you need to do see how much your paying on your retirement and were to find the cheaper rates at.

First you’ll want to see how big of a sales charge the mutual fund company is charging. A typical sales charge for an IRA retirement investment will run anywhere from 4.5% to as high as 6%. This means every dollar you put into your account 6% will be be paid out to the representative. However their are companies that do charge 0% and at the end of this article I will show you just which company does this.

The next fee that is typically found in an IRA account is an annual fee. An annual fee is charged to help maintain the fund. Typical fees run around 1% to 1.20% but some companies will charge as low as 0.23% which is a lot cheaper than most companies.

Finally, the last fee some companies will charge is a 12b-1 fee. This fee is typically referred to as a junk fee. This fee usually covers advertising cost for the company which is passed on to consumers. However not every company charges this fee in fact I recommend that you stay away from these fees altogether.

In the end it’s easy to see that a no fee IRA is one of the best ways to go when it comes to retirement. So who should you invest your money with when it comes to an IRA? I suggest Vanguard because they carry no sales charge, no 12b-1 fees, and a very low annual fee around 0.30%.

Traditional IRA or A Roth IRA You Decide (2011tax.org)

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