Here's a comment that was made on a post I wrote for another blog. I thought it was especially good and wanted to share it with you:
As a CPA, the simplest advice I give to people is:
1) Buy and own a house
2) Contribute the maximum to your IRA and 401(k) plans
3) Never pay credit card interest
4) Buy affordable vehicles and drive them for at least 6 years before trading
Sure, there are many other financial factors that can help/harm people, but the large majority of Americans would be just fine financially if they just followed those four things.
Pretty good advice. How many of these four do you have covered?
1) Buy and own a house
Ahhhh, if only it were that easy.
Posted by: ceo in training | August 16, 2005 at 05:43 PM
4) Buy affordable vehicles and drive them for at least 6 years before trading
How about don't - take public transportation instead if you live in any major city with a decent transportation system. You'll save a ton on car payments, insurance, taxes, gas, etc.
Posted by: kim | August 16, 2005 at 09:57 PM
CEO in training: buying a house is not that complex.
However, most people want to buy a dream house as opposed to an appartment replacement :) Start in a simple way, and upgrade as your income improves.
Posted by: Jose | August 17, 2005 at 12:36 PM
My friend is starting a new online business that allows sellers to pay for ad placement and buyers to view ads for free. He is based in Virginia and is going to place an LL C on the business soon. I am wondering how does he pay taxes to the us govt for his work done in that country. He will also be giving these services to other nations abroad. What forms does he have to fill out, how often and how much will he be paying the us govt in taxes. Thank you and have a blessed day. Bye
Posted by: Kathy | April 03, 2008 at 12:46 PM
Kathy --
I suggest you see a good CPA in your area. I'm not qualified to answer these questions.
Posted by: FMF | April 03, 2008 at 12:55 PM
I currently own a condo. I have a renter in this condo. I am looking at purchasing a townhome for myself. My renter really want's to purchase the condo..but can not get the financing for it. I'm thinking of a contract-for-deed set up with the renter. I need to know what happens at tax time? Will it hurt me in the end to have the condo and the townhouse?
Posted by: Amy | May 06, 2008 at 05:12 PM
will the vioxx settlement be taxable?Will my husband insurance company have to be reimbursed for what they pd on his heart by pass hospitalization.
Posted by: judy draves | August 19, 2008 at 08:34 AM
Judy -
Generally, settlements are not taxable if they are payments for personal injury, including loss of earnings. However, if some of the payment is for medical expense you've deducted in an earlier year or for punitive damages, that would be taxable. I would suggest you hire a CPA that is recommended to you by a friend or colleague. That is usually the best way to find a good one.
Posted by: Kevin | August 19, 2008 at 10:01 AM
I am wanting to know how to figure what my penalty would be if I with drawl 30,000.00 from my 401K to pay for my attorney fees. My annual income is 39,00.00
Posted by: Vicki Powell | January 03, 2009 at 11:22 PM
So in order to receive the tax credit when buying a new home...you cannot have owned a home within the last 3 years? Does this mean from the exact date of the sale of the old home? i.e. if I sold a home 8/31/06, I don't qualify until 8/31/09??
Posted by: Mark | March 13, 2009 at 03:01 PM
My fiancee` and I are looking to purchase a house this year. We want to take advantage of the $8k first time home buyer credit. I make around $50K, he makes around $85K; we both qualify as first time home buyers. Can we both claim the credit? Should we get married before April 1, 2010? How does being married v. buying the home individually affect the tax credit?
Posted by: Blue | May 14, 2009 at 11:52 AM
Blue --
I'll post your comment in a week or so. Stay tuned.
Posted by: FMF | May 14, 2009 at 01:56 PM
Thanks!!! :)
Posted by: Blue | May 14, 2009 at 05:37 PM
Hi, My parents are very old and want to turn over their funds to me, their only son. Im concerned about tax implications of a $120K transfer to my account. Also, in the event of their passing, Id like to avoid the probate vultures. Whats the best way of handling this? Thanks.
Steve
Posted by: Steve J | June 04, 2009 at 09:34 PM
Steve --
I'll post your question in a week or so. Stay tuned.
Posted by: FMF | June 05, 2009 at 07:48 AM
I have a $24,000 business credit card (that I am a personal signer on) that is about to charge off with JP Morgan chase. They have offered me a $7,300 settlement but the remainder of the debt will be sent to me as a 1099 at the end of the year. Now the only way I will be able to pay this debt is with another personal credit card. At this point I am trying to avoid bankrupcy, however I think it will be very difficult. Is it wise to settle the debt and take on a personal tax liability and a personal credit liability to settle the larger debt?
Posted by: BK | July 30, 2009 at 09:16 PM
BK --
I suggest you contact a professional with this question.
Posted by: FMF | July 31, 2009 at 07:46 AM