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how to handle a tax audit

How to Handle a Tax Audit; the IRS Says I Owe $25,000

The Dreaded IRS Tax Audit Letter The thick IRS letter arrived and I assumed it enclosed the tax forms I ordered. I was wrong. The letter contained a list of 5 sources of income that were not included on my 2010 tax return. Total bill due the IRS including penalties and interest, $25,000.00. Panic set in. Ironically, 2010 was the year I was exceptionally familiar with the tax law as I served as a VITA volunteer tax preparer for the IRS. What was going on?

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How to cut investment fees and save thousands of dollars

How to Cut Investing Fees + Increase Returns

Cut Investing Fees and Save Thousands I was pleased to receive this question important from Larry Russell an accomplished investor, software developer, financial planner and editor of The Skilled Investor Blog; “What should investors do once they understand that the financial industry takes over 1/3 of their gross investment returns every year, while it adds only a small fraction of that in value?” Not only is Larry asking this question, but so are many of my readers. If You’re Smart-You Can …

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Should I buy foreclosed real estate?

Should I Buy Foreclosed Real Estate?

A reader from the website, Fromthisseat.com writes in; “Is purchasing foreclosed real estate a smart investment with so many renters and so few home buyers in the market?” Real Estate Market Prequel In the aftermath of the 2008-2009 recession, there was an abundance of foreclosed properties just begging to be bought by the enterprising investor. The thinking was, buy a real estate at a discount, make a few repairs and either rent it out or sell it for a profit. At that time, it seemed like a …

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historical stock and bond returns

Why I Used to Invest in Individual Stocks + Now I Don’t

Recommended Investing and Money Articles and Links Many years ago, I was terrified of the stock market. I thought it would steal all of your money. With depression-era parents, the anecdotal information about the stock market crash of 1929 seemed frightening. I believed that you could lose all of your money if you invested in the stock market. I started investing in my 20’s with a traditional stock broker and various versions of bonds and bond funds (and 1 stock recommended by my cousin).

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Contribute to Roth IRA or 401(k)

Should I Contribute to a Roth IRA or a 401(k), if I Can’t Fund Both?

6 Step Plan to Decide Where to Invest for Retirement Monica from MonicaOnMoney.com asks; Should I contribute to a Roth IRA or a 401(k), if I can’t fund both? (Thanks for answering, I love this idea for your blog) This is a common question for those just starting out. A 20-something, in her first job is automatically enrolled in her workplace 401(k) program. That’s a good thing, since it gets her money working and growing for the future! But, wait a minute, is the company 401(k) the best choic…

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Live wealthy in any economy

FORGET ABOUT THE ECONOMY; LIVE A ROCKIN’ LIFE

You Can Live Wealthy in Any Economy Whenever I get plagued with an attack of ‘I don’t have enough’ or life’s not treating me well, I fall back on a few simple wealth building tools. We talk a lot about building wealth and how to live wealthy here, but it’s important to remember that life’s a marathon, not a sprint. Further, you can live wealthy regardless of the size of your bank account. Don’t even think about the news, or the dour talking heads on your TV. You are the master of your own des…

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New Sharing Economy

Robert Reich Bashes the ‘New Sharing Economy’

What is the New Sharing Economy-And Why Should You Care? After reading Robert Reich’s article in the San Francisco Chronicle, “In New Economy, Workers Get Stuck with the Scraps” I felt compelled to dig deeper into “the new sharing economy”. This component of the new economy consists of the solo-preneurs who use their own resources to deliver services and products, without the security and umbrella of the corporate structure. Who are Some of the Players in the New Sharing Economy? Uber-Individ…

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behavioral finance money management tips

3 Behavioral Finance Tips – Stop Stealing From Yourself

Use Behavioral Finance to Build Wealth When you spend money on things that you don’t need, you are stealing from yourself. This may seem like obvious advice to some, but if we take a quick look at the consumer-driven society we live in, it is clear that this is exactly what all the stores want us to do: we have opportunities to open credit cards at every major clothing store (which doesn’t help you make the most of your credit cards!); we are pressured to buy the newest electronics whenever a…

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money is only a tool

Retirement, Money + Investing Reads

Retirement Statistics + Educational Money Reads Don’t forget that money is a means to an end, not an end itself. One of life’s biggest challenges is balancing competing demands. With work, family, leisure are all vying for our attention, it’s tough to figure out how to find time and money to save for the future. As we know, money doesn’t necessarily equal happiness, yet it does solve money problems. One of my tricks to keep things in perspective is to consider what I’m doing today that will m…

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