Friday, February 17, 2012

$1,000 tax refund becomes $50,000 for retirement

Use your tax refund to give yourself $150,000 in retirement
Lee filed her taxes on $20,000 income and used the $1,000 IRA deduction to receive a $572 refund from the feds and $528 from the state. She put the $1,000 in his Vanguard account which has averaged 11% since inception. Lee expects this $1000 to grow to $50,000 in 35 years.

The average refund is $3,000. It can provide $150,000 in retirement from just that $3,000. Members who have done that every year since working may end up with $2 million at age 65. Fred and Susan tell you how:

Is ID theft monitoring right for you?
Credit bureaus claim they’ll protect you for $60 to $180 a year. However, there's no protection against theft of your Social Security number, according to Consumer Reports. The bureaus don’t receive the ID theft data with your SS immediately. Bureaus keep new data in "temporary fragmented files" when creditors file account information does not match your info even with your SS. They have no way to know your file’s 2nd address is not your new one or a thief’s using your SSN fraudulently. When creditors begin relabeling the ID thief's fraudulent accounts in your name and address, none of the credit-monitoring products you can buy would catch it. You are stuck spending your money and time trying to correct your files at the bureaus and the creditors. Good luck trying to get them to fix their mistake too. It took me two years—even though I had their protect service.

Beware of tax blunders
IRS says these schemes peak during filing season as people prepare their tax returns.
1.Theft of your Social to claim your refund.
2.IRS does not send emails: it is a thief. Report to
3.Preparer steals refund or fee gauge. See Tips for Choosing a Tax Preparer.
4.IRS is pursuing hidden money: Offshore Voluntary Disclosure Program (OVDP).
5.Promoters promise free money from IRS or Social Security.
6.False/inflated expenses, undeclared income.
7.False Form 1099.
8.False tax obligation arguments
9.False corrected W-2 claiming fewer wages.
10.Inflated charity deductions.
11.Obscure corporate identities.
12.Hide assets in trust. If you are doing your own taxes and need a question answered fast, try worked for me. If you need more help—like failure to file—these organizations are paid to represent you for free or small fee:

At what age should you buy life insurance?
The reason to buy life insurance is to protect those who rely on you. When you have a family that is counting on your paycheck to live and reach the goals you have for them, you want to fulfill those promises. If your family has two wage earners, you need to consider what happens when one of you is not around. Obviously, the time to buy is determined by your family’s specific needs. Some people don’t need it. Members use our Guide to determine what type, where, and how much to buy. Most people can protect their family with low-cost term--$1 a day.

Is Guaranteed Whole Life $10,000 policy right for you?
Yes, if you know you will die in 8-9 years. You can buy $10,000 life coverage even if you have cancer, a heart condition, or other chronic disease. At $89 a month for a 70 year old male and $69 for a female, is this a bargain? Sure, if you are certain you have a limited time; this might be right for you. However, if you are not “scheduled” to leave soon, you have more options. $89 a month is a lot of money to pay out for the rest of your life. By age 85, your expected lifespan, you will have paid $16,000. Invested in a balanced mutual fund earning 10%, you might have $37,000 or more. Left to your heirs, this mutual fund would be tax-FREE just like life insurance due to the stepped-up tax provision. Check our Guide for options:

Long-term care insurance: Is it right for you? Are there better alternatives?
Long-term care insurance is expensive
Insurers keep raising rates
Almost a third of owners have to stop paying!
Most of us will never need it
There are better alternatives
Do NOT buy a LTCi policy before you compare alternatives
Unbiased information about your options and alternatives to spending $150,000 on this coverage you may not need.

When should you drop comprehensive and collision coverage?
Insurance companies only pay for the depreciated value (dealer’s auction price) on your vehicle when totaled. You might be paying for coverage that you will never get to use. Collision insurance pays for any repairs from an accident up to the fair market value of your car less your deductible. Use to get the fair market and true market value of any car. Comprehensive covers other repairs like vandalism. Bottom line: you are not going to get enough from the coverages to buy a replacement of the same used car. If you paid $10,000 for a used car 3 years ago, you have to deduct the wear and tear and usage. On average, you may receive less than $5,000 if the car is totaled. Meanwhile, you have been paying $200+ a year premiums with a $1,000 deductible. You will be reimbursed for repairs to your car up to about $3,000 in the next 2 years. After a car is 10 years old, insurers will pay you little. This is why you see many dented cars on the roads—it just is not worth fixing.

Insurer uses your driving record to quote homeowners coverage
Allstate has started considering the driving records and automobile insurance claims histories of people in Oklahoma and Kansas who apply for a new homeowner’s product that it plans to roll out to other states through 2014. "There is a strong correlation between auto-loss history and the likelihood of covered homeowners losses," an official said. State Farm doesn't use driving records or auto claims records to determine homeowner's pricing or eligibility, a State Farm spokeswoman said. Social media also presents opportunities for insurers. Members shop every two years to make sure they have the best deal for both separately:

Obama budget cuts subsides to big agricultural corps
Obama to cut $32 billions in supports including support for the federal crop insurance program. At the same time, ag research and food safety are being increased.
We taxpayers were buying agra business insurance for them!???? Can you believe it?

Is your ride dependable? Or just expensive?
J.D. Power and Associates polled 31,000 owners of 2009 model-year vehicles and rated brands by the number of problems owners have experienced in the last 12 months. Problems can range from stalling engines and transmission issues to peeling paint and electronics glitches. Lexus owners reported 86 problems per 100 vehicles. Porsche, Cadillac, Toyota and Scion rounded out the top five. The worst performers were Chrysler, Dodge, Jeep, Ram and Jaguar. Chrysler owners reported 192 problems per 100 vehicles.

Is your credit report OK?
Check your credit report for mistakes before you need to. All 3 reports are FREE at DO NOT use the one shown on TV with the band singing “Free credit report. Com.” It is NOT free. charges to “monitor” your credit but is actually owned by one of the bureaus: Experian. So if you pay for this service, you will only get one of the 3 reports: This credit bureau also owns® and®. They collect your data from these sites so be careful if you use them.

We taxpayers are giving Facebook a $ HALF A BILLION refund! For what?Facebook made $1 Billion in 2011 but will pay no federal or state income taxes this April, and is expected to get money back from the government on its 2009 and 2010 taxes to the tune of $500 million dollars. That comes out of our taxes.

Richest pay only 16% tax
The 400 best-off taxpayers paid an average tax rate of 16.6%, lower than in any year since the IRS began making the reports in 1992. Lower than most Americans. And there are two wars and two tax cuts.
To make the top 400, a taxpayer had to have income of more than $138.8 million

Facebook is not alone
There accounting strategies firms can use to reduce their tax obligations, from moving assets overseas to structuring their business in a way that passes the tax burden directly on to investors. By using these and other techniques, 30 major U.S. firms — including General Electric, Wells Fargo, Boeing and Verizon — managed to avoid paying a dime in income tax in 2008, 2009 and 2010, according to a report last fall from CTJ.

Romney’s overseas bank?
The Justice Department is calling Switzerland's largest private bank a fugitive from justice after it didn't show up for a court hearing in New York. Wegelin & Co. is charged with conspiring with American clients to hide $1.2 billion from the Internal Revenue Service. The bank was indicted on Feb. 2. Since then, U.S. officials haven't found a way to move the case forward.

How the 1% hides the money is documented in this article—no wonder America is out of money! It is standard procedure for most global firms and their employees/owners.

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