Wednesday, March 31, 2010
FLOOD VICTIMS GET TAX EXTENSION!
The IRS has agreed to extend the April 15 tax filing deadline for all of Rhode Island and the following Massachusetts counties: Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolk and Worcester. If you live in any of these areas, you now have until May 11 to file and pay your taxes.
Saturday, March 27, 2010
Chest-Deep and Heading for the Homestretch
When I started this blog back at the beginning of February, I told myself I was going to keep it up at least 2-3 times a week during opportunity season. I maintained that pretty well until this week. I am now working 7 days a week and my family sees me for breakfast and a quick dinner. I have a graduate exam in Statistics coming up on April 12 and I still have 168 individual tax returns to get through by April 15. Let me do the math for you - that's 9 a day, every day.
The busier I get, with my head buried in the details, the more I struggle for a tax topic to write about. I know there are some of you out there reading every post. I hope that it's because you feel there is some information you can use. I'd really like your feedback. What are some of the tax issues or questions you have? Is there something about your return you don't understand? Please don't get me started on the Alternative Minimum Tax. I'm saving that diatribe for a later date.
I had an earlier post entitled Taxes Can Be Funny. I think it is so important for all of us to keep our sense of humor. Around here we are blessed to be around some very genuine, very funny people. It helps keep us all sane. One of the ways taxes can be funny is that sometimes clients can't or won't answer a direct question. Example: Q: "Did you refinance your mortgage?" Most of us can see this requires a simple yes or no answer. A: "I sent you the bank form". Here's another. Q: "Did you send your child to day camp or overnight camp"? A: "He's only 10". If you don't see the humor in these as much as I do, I apologize. Maybe my threshhold for funny has dropped along with my sleep hours. However, when this is the last piece of information you need before you can finish a return, it can be exasperating. If your tax person asks a direct question, please provide a direct answer to that question.
For all of you out there who skipped their minimum required distributions from your retirement plan in 2009, remember you have to take it again in 2010.
Take note, it's your money. The more you save in taxes, the more that's in your pocket. Let me know how I can help.
The busier I get, with my head buried in the details, the more I struggle for a tax topic to write about. I know there are some of you out there reading every post. I hope that it's because you feel there is some information you can use. I'd really like your feedback. What are some of the tax issues or questions you have? Is there something about your return you don't understand? Please don't get me started on the Alternative Minimum Tax. I'm saving that diatribe for a later date.
I had an earlier post entitled Taxes Can Be Funny. I think it is so important for all of us to keep our sense of humor. Around here we are blessed to be around some very genuine, very funny people. It helps keep us all sane. One of the ways taxes can be funny is that sometimes clients can't or won't answer a direct question. Example: Q: "Did you refinance your mortgage?" Most of us can see this requires a simple yes or no answer. A: "I sent you the bank form". Here's another. Q: "Did you send your child to day camp or overnight camp"? A: "He's only 10". If you don't see the humor in these as much as I do, I apologize. Maybe my threshhold for funny has dropped along with my sleep hours. However, when this is the last piece of information you need before you can finish a return, it can be exasperating. If your tax person asks a direct question, please provide a direct answer to that question.
For all of you out there who skipped their minimum required distributions from your retirement plan in 2009, remember you have to take it again in 2010.
Take note, it's your money. The more you save in taxes, the more that's in your pocket. Let me know how I can help.
Monday, March 22, 2010
Organization Counts
Are you a shoebox? No, not you personally. Your tax stuff. Do you just put all those receipts and little scraps of paper in a shoebox? It's truly not efficient and you are most likely missing out on some deductions. Here's why: 1) when it comes to tax time, you don't remember what half the scraps of paper mean; 2) the business receipts, which are supposed to document the person and event - don't; 3) you probably put half the receipts in a different shoebox which you then forgot about and which will resurface in 10 years when you clean out your closet.
Don't Be A Shoebox
I used to know someone so compulsive about recordkeeping that he would enter every last penny into Quicken. If I went to the ATM, my quicken report would just show "cash - miscellaneous $100". His Quicken report would show exactly how that $100 was spent, down to the penny. You don't need to be quite that bad. Quicken, or any other bookkeeping software that you will actually use, is a great start. If you are diligent, at the end of the year, you can print your tax report in about two minutes. If you are not the computer type, you can still be just as organized. It just takes a little time and effort on your part. Here's how: 1) get yourself a multipocket folder; 2) label each pocket with the different types of income and deductions you have; 3) before you put any slip of paper in any pocket, label it - make sure it has the date and amount - if it relates to a business meeting, it also needs the name of the person you met with and the business purpose of the meeting.
The Longer You Wait, The More Organized You Need To Be
The closer you get to April 15 before doing your own taxes or giving your information to a professional preparer, the more organized you need to be. No one has time to spare going through the shoebox on April 14. Spend your time wisely. Even if you only organize a little at a time, make sure you have it pulled together before actual return preparation starts. It's much more efficient if you don't have to stop and go find something else.
Remember, it's your money. If you miss out on deductions, it costs you. Shoeboxes are for shoes. It's time for an upgrade.
Don't Be A Shoebox
I used to know someone so compulsive about recordkeeping that he would enter every last penny into Quicken. If I went to the ATM, my quicken report would just show "cash - miscellaneous $100". His Quicken report would show exactly how that $100 was spent, down to the penny. You don't need to be quite that bad. Quicken, or any other bookkeeping software that you will actually use, is a great start. If you are diligent, at the end of the year, you can print your tax report in about two minutes. If you are not the computer type, you can still be just as organized. It just takes a little time and effort on your part. Here's how: 1) get yourself a multipocket folder; 2) label each pocket with the different types of income and deductions you have; 3) before you put any slip of paper in any pocket, label it - make sure it has the date and amount - if it relates to a business meeting, it also needs the name of the person you met with and the business purpose of the meeting.
The Longer You Wait, The More Organized You Need To Be
The closer you get to April 15 before doing your own taxes or giving your information to a professional preparer, the more organized you need to be. No one has time to spare going through the shoebox on April 14. Spend your time wisely. Even if you only organize a little at a time, make sure you have it pulled together before actual return preparation starts. It's much more efficient if you don't have to stop and go find something else.
Remember, it's your money. If you miss out on deductions, it costs you. Shoeboxes are for shoes. It's time for an upgrade.
Wednesday, March 17, 2010
March Madness
I love the NCAA men's basketball tournament. I just wish it didn't fall right in the heart of opportunity season. The NCAA has done a much better job at promoting itself than have we CPAs. If someone says 'March Madness' you think of the tournament, the excitement and the possible "Cinderellas". If someone says "tax season" you think of your poor, overworked tax person slaving away day and night. What's wrong with that picture? How about that CPA who stayed up all night and then found that big loophole? Where was some announcer going "Waaay to go baby"!! Where were the high fives and the chest bumps? Maybe it's because our deadline is in April and not March. Come look at our office - there's plenty of March Madness. We need to sell this stuff. Corporate tax returns were due March 15. Don't tell me that doesn't generate a lot of buzz around the water cooler??
Seriously, though, now that the corporate deadline has passed, the focus is all on the individual tax filing season. Except for those invested in many partnerships (especially hedge funds), most people have all the outside reporting they need to prepare their returns. So why haven't I heard from so many clients? People hate to think about their taxes. They procrastinate and find a myriad of other things to do until one day, like the groundhog coming out to look at his shadow, they know it's time. People have this kind of biological tax clock. They send me their information the same time every year and I'll bet they don't even know it.
OKAY PEOPLE, WAKE UP!!! How can you all possibly think that I can get all the work done if you all wait until the last minute? Please don't do this to your tax preparer. Put your tax information together and get it done now! I know we come through for you every year, but it doesn't get any easier. One upside is that the NCAA hasn't yet trademarked "April Madness"! Hey, now there's a thought....
Seriously, though, now that the corporate deadline has passed, the focus is all on the individual tax filing season. Except for those invested in many partnerships (especially hedge funds), most people have all the outside reporting they need to prepare their returns. So why haven't I heard from so many clients? People hate to think about their taxes. They procrastinate and find a myriad of other things to do until one day, like the groundhog coming out to look at his shadow, they know it's time. People have this kind of biological tax clock. They send me their information the same time every year and I'll bet they don't even know it.
OKAY PEOPLE, WAKE UP!!! How can you all possibly think that I can get all the work done if you all wait until the last minute? Please don't do this to your tax preparer. Put your tax information together and get it done now! I know we come through for you every year, but it doesn't get any easier. One upside is that the NCAA hasn't yet trademarked "April Madness"! Hey, now there's a thought....
Saturday, March 13, 2010
WAIST-DEEP AND PADDLING HARDER
Sorry, it's been a few days since my last blog. It is that time of year!! The incoming returns have gained a steady pace and keeping up is increasingly more challenging. The hours are longer (no kidding!), but the company is good. We are all trying to keep our sense of humor. I took time out Thursday night to attend a fundraiser for Gov. Deval Patrick. I told the organizers ahead of time that I had no funds to give, but they told me to come anyway. It was a small gathering and the Governor was nice enough to give everyone who wanted a one-on-one. Believe it or not, when I got my turn I did not talk about tax reform or how horrible Taxachusetts is. I took my shot at education reform for the gifted student - the one who is out-pacing the standard curriculum. Maybe then they won't all turn out to be tax preparers (just kidding!).
What surprises me is that there has been no major tax scandal making the headlines. It seems as if the IRS always waited until February or March to announce that some major star was under indictment for failure to pay their taxes. I just loved the scare tactic! It hasn't happened this year. Maybe we really do have a nicer, gentler IRS.
Mortgage Interest
My feeling is that people are getting this one wrong. Over the past few years, as interest rates dropped and then stayed low, many people have refinanced their mortgages. This is a good thing. We all want our monthly nut to be as low as possible. Be careful here. There is a trap for the unwary. The general rule is that you can deduct 100% of the mortgage interest on what is called acquisition indebtedness up to $1 million of debt. In its simplest form, acquisition indebtedness is the mortgage you take out when you buy your house. Once that amount is established, you cannot deduct the interest on a greater amount, unless you use the greater amount to improve your house.
Vacations are not deductible
Suppose, for example, that you purchased your modest $400,000 house and took out a $360,000 mortgage. Over the next period of years, you paid that $360,000 down to $300,000. When mortgage rates fell, you jumped at the chance to refinance. But you didn't just refinance the $300,000, you took an extra $20,000 to go on vacation. The bad news is that the interest on that extra $20,000 is not deductible. The good news is that you probably took the deduction anyway. Here's why: 1) you had no clue that some piece of mortgage interest might not be nondeductible; 2) the mortgage holder issued you a form 1098 reporting the full amount of interest you paid during theyear and you believed that was a good number to report on your taxes. I'm sure many preparers unknowingly do this wrong because we simply do not have the information to do it right. If all the mortgage holders were required (they currently are not) to report the ending balance along with the interest paid, then we would have a shot at seeing that you refinanced and for how much.
Home Equity Indebtedness
This is your second bite at the apple. There is a second rule that says you can deduct the interest on up to $100,000 of home equity indebtedness. Assuming you have sufficient equity in your home, this is a line of credit you can use for anything you want. It does not have to be used to improve your home. What makes it deductible is that it is secured by your home. If you want that vacation to be tax deductible, borrow from your home equity line. Actually, I'm not saying you should do that at all. It is just an example. You should save for your vacations, not go into debt for them. The point is that you could use that $100,000 for anything you needed, such as college tuition or catastrophic medical bills - and the interest is fully deductible.
Communication
Once again, it comes down to this. There has to be a dialogue. The preparer needs to know you refinanced and what the balances were. The preparer also needs to know if you are drawing on the home equity line. Have a conversation. Be proactive. Call me before you do something financial. Let's talk.
What surprises me is that there has been no major tax scandal making the headlines. It seems as if the IRS always waited until February or March to announce that some major star was under indictment for failure to pay their taxes. I just loved the scare tactic! It hasn't happened this year. Maybe we really do have a nicer, gentler IRS.
Mortgage Interest
My feeling is that people are getting this one wrong. Over the past few years, as interest rates dropped and then stayed low, many people have refinanced their mortgages. This is a good thing. We all want our monthly nut to be as low as possible. Be careful here. There is a trap for the unwary. The general rule is that you can deduct 100% of the mortgage interest on what is called acquisition indebtedness up to $1 million of debt. In its simplest form, acquisition indebtedness is the mortgage you take out when you buy your house. Once that amount is established, you cannot deduct the interest on a greater amount, unless you use the greater amount to improve your house.
Vacations are not deductible
Suppose, for example, that you purchased your modest $400,000 house and took out a $360,000 mortgage. Over the next period of years, you paid that $360,000 down to $300,000. When mortgage rates fell, you jumped at the chance to refinance. But you didn't just refinance the $300,000, you took an extra $20,000 to go on vacation. The bad news is that the interest on that extra $20,000 is not deductible. The good news is that you probably took the deduction anyway. Here's why: 1) you had no clue that some piece of mortgage interest might not be nondeductible; 2) the mortgage holder issued you a form 1098 reporting the full amount of interest you paid during theyear and you believed that was a good number to report on your taxes. I'm sure many preparers unknowingly do this wrong because we simply do not have the information to do it right. If all the mortgage holders were required (they currently are not) to report the ending balance along with the interest paid, then we would have a shot at seeing that you refinanced and for how much.
Home Equity Indebtedness
This is your second bite at the apple. There is a second rule that says you can deduct the interest on up to $100,000 of home equity indebtedness. Assuming you have sufficient equity in your home, this is a line of credit you can use for anything you want. It does not have to be used to improve your home. What makes it deductible is that it is secured by your home. If you want that vacation to be tax deductible, borrow from your home equity line. Actually, I'm not saying you should do that at all. It is just an example. You should save for your vacations, not go into debt for them. The point is that you could use that $100,000 for anything you needed, such as college tuition or catastrophic medical bills - and the interest is fully deductible.
Communication
Once again, it comes down to this. There has to be a dialogue. The preparer needs to know you refinanced and what the balances were. The preparer also needs to know if you are drawing on the home equity line. Have a conversation. Be proactive. Call me before you do something financial. Let's talk.
Monday, March 8, 2010
Can I Do It Myself? The Myth of Tax Simplification
This is a hard one. Remember the concept called "tax simplification"? It was probably inroduced about two decades ago. Don't kid yourself - it hasn't happened yet. For a lot of people, those mostly with a W-2 and a few 1099s, taxes are a simple matter. Everybody else has at least one matter in their tax lives which complicates the preparation of their tax returns. It doesn't matter whether it's a child in college, a new house, an old house that't been sold in a short sale, a new sole proprietorship or any one of a myriad things. Your taxes can't be done by hand any more.
Off-the-shelf Tax Prep Software??
I'm not going to slam these products because they are not really my competitors. For the next level of taxpayers, most of these do a credible job. If you have small complications, they can handle them...sometimes. People often ask me questions about the results they've gotten from using one of these products. As good as the programming might be, some of the results are just strange. If you don't know enough to recognize the strange result and the software doesn't know it's a strange result, you could severly overpay your taxes.
What About the Tax Prep Factories??
Sure, there are the guys that advertise on television and radio claiming 90% of their customers get refunds. Trust me here, it's not because those guys know anything special. Remember, at this time of year, they just put the numbers in the boxes. They didn't do anything to influence what those numbers were. The reason all those people get refunds is because their employers withheld too much in taxes. They could have done the returns themselves and still received refunds. Yes, these places have software that will make sure they don't miss most deductions or make math mistakes. They are not responsible for your refunds. You might ask whether these guys are better than the off-the-shelf software. If you don't have the time or the inclination to try it by yourself, then, yes, they probably are better.
How Do I Know When I Should Pay Someone??
I think what makes the most sense here is that you should start to ask a tax professional for help when there are simply things in your return you do not understand. Are you paying the alternative minimum tax? Should you be? Are you taking the proper credit for your child's education expense? Are you taking the proper deduction for items donated to charity? Are there? Is there? How do I? When can I? If you are asking yourself these questions, you should probably be asking them to a tax professional.
Remember, it's your money. Sometimes you have to spend it to make it. A good tax professional doesn't just put the numbers in the boxes. They make sure the numbers are working for you.
Off-the-shelf Tax Prep Software??
I'm not going to slam these products because they are not really my competitors. For the next level of taxpayers, most of these do a credible job. If you have small complications, they can handle them...sometimes. People often ask me questions about the results they've gotten from using one of these products. As good as the programming might be, some of the results are just strange. If you don't know enough to recognize the strange result and the software doesn't know it's a strange result, you could severly overpay your taxes.
What About the Tax Prep Factories??
Sure, there are the guys that advertise on television and radio claiming 90% of their customers get refunds. Trust me here, it's not because those guys know anything special. Remember, at this time of year, they just put the numbers in the boxes. They didn't do anything to influence what those numbers were. The reason all those people get refunds is because their employers withheld too much in taxes. They could have done the returns themselves and still received refunds. Yes, these places have software that will make sure they don't miss most deductions or make math mistakes. They are not responsible for your refunds. You might ask whether these guys are better than the off-the-shelf software. If you don't have the time or the inclination to try it by yourself, then, yes, they probably are better.
How Do I Know When I Should Pay Someone??
I think what makes the most sense here is that you should start to ask a tax professional for help when there are simply things in your return you do not understand. Are you paying the alternative minimum tax? Should you be? Are you taking the proper credit for your child's education expense? Are you taking the proper deduction for items donated to charity? Are there? Is there? How do I? When can I? If you are asking yourself these questions, you should probably be asking them to a tax professional.
Remember, it's your money. Sometimes you have to spend it to make it. A good tax professional doesn't just put the numbers in the boxes. They make sure the numbers are working for you.
Friday, March 5, 2010
Knee-deep and the Not-so-kiddie tax
We're progressing through opportunity season about the same as every other opportunity season. The tax information coming in the door has a regular flow to it. There are about three square inches where you can actually see the top of my desk.
Kiddie tax
If you haven't been keeping up with this one, you're in for a surprise this year. Not too long ago, the kiddie tax applied to children. No, really. It applied to your offspring who were under age 14. Let me back up a second. The "kiddie tax" as it is commonly called, is a misnomer. Actually, it's another tax on you. Here's the scheme: the parent transfers income producing assets to the child so the income earned gets taxed at the child's lower tax rate. Congress said, "wait a minute", we're missing out on all those tax dollars that could be taxed at the parents rate. They started with children under age 14 and said that for those children, the investment income (as opposed to any earned income) would get taxed at the parents higher rate.
That didn't go over too well with the general public, but we adjusted. Then they got greedy. The age was raised to those children under 18. Then under 19. Now, get this, they upped it again. The current rule is the kiddie tax applies to children (and we have to use that term very loosely) under age 24. Twenty four! That means they are out of college and (hopefully) have a job. But if they have investment income over $1900 for 2009, that piece gets taxed at mom and dad's tax rate. Not only that, but mom and dad now have to complete their return first, so we know the rate at which to tax junior's investment income.
Be careful. This one is easy to miss. If you are the child age 19-23 or you have a child is between age 19 and 23, this didn't impact you last year, but it does now.
There's also a tie-in here betwen the kiddie tax and the new education credit. Stay tuned.
Kiddie tax
If you haven't been keeping up with this one, you're in for a surprise this year. Not too long ago, the kiddie tax applied to children. No, really. It applied to your offspring who were under age 14. Let me back up a second. The "kiddie tax" as it is commonly called, is a misnomer. Actually, it's another tax on you. Here's the scheme: the parent transfers income producing assets to the child so the income earned gets taxed at the child's lower tax rate. Congress said, "wait a minute", we're missing out on all those tax dollars that could be taxed at the parents rate. They started with children under age 14 and said that for those children, the investment income (as opposed to any earned income) would get taxed at the parents higher rate.
That didn't go over too well with the general public, but we adjusted. Then they got greedy. The age was raised to those children under 18. Then under 19. Now, get this, they upped it again. The current rule is the kiddie tax applies to children (and we have to use that term very loosely) under age 24. Twenty four! That means they are out of college and (hopefully) have a job. But if they have investment income over $1900 for 2009, that piece gets taxed at mom and dad's tax rate. Not only that, but mom and dad now have to complete their return first, so we know the rate at which to tax junior's investment income.
Be careful. This one is easy to miss. If you are the child age 19-23 or you have a child is between age 19 and 23, this didn't impact you last year, but it does now.
There's also a tie-in here betwen the kiddie tax and the new education credit. Stay tuned.
Tuesday, March 2, 2010
Capital Idea
I suppose I haven't written about capital gains in a while because there haven't been many. After tax year 2008 when there were more losses realized in the stock market than in all of previously recorded history combined (that's not really true, but it feels that way), the questions mostly centered around "what am I going to do with all those losses"?
Capital Asset
Let's back up a second. The things that create capital gains and/or losses are capital assets. What is a capital asset? Many of you simply relate that to investments like stocks or mutual funds. Actually, it's much more than that. Simply, it is any property except: inventory, property held for sale to customers, a note or account receivable, depreciable business property, real property used in a business or a copyright, literary or musical composition held by the one who created it. Okay, enough for the tax jargon. For most people, this is just about everything they own. Your house, your car, your clothes, your bicycle. These are all capital assets. And, yes, if you sell any of them you should report the gain or loss on your tax return. There is a "gotcha" here: if you sell your house, its furnishings or your car at a gain, you have to report it and pay tax on it. However, if you sell these items at a loss, you can't take it unless the property was used for business purposes. Uncle Sam loves ya!
Capital Losses
You may be one of those people who took a big hit during tax year 2008 and have a pile of capital losses from the stock market. The rule is that you can offset these losses with future gains. If you don't have future gains, you can offset your other income up to $3,000 per year. If you're saying that the $3,000 per year will last you a lifetime, don't worry - you have a lifetime. These losses never expire until you do. You can take the $3,000 every year until you die. Clearly not the best scenario. There are trading strategies which are geared toward recognizing short term gains. These would be great for those with unused losses because the gain recognition is "free" until the losses are used up.
Capital Gains
If you dodged the debacle of 2008 and are recognizing capital gains that will be taxed, here's the scenario: Long term gains (the sale from those capital assets held greater than 1 year) are taxed at a preferential rate of 15%. Short term gains (anything held less than 1 year) are taxed at your ordinary rate. For those lucky folks who live in Taxachusetts like me, they get an extra whack. Our short term gains are taxed at 12% for state purposes. Don't necessarily let the tax tail wag the dog, but if you can hold long term, it is much better tax treatment all around.
Capital Idea
The stock market clearly has been a wild ride the past couple of years. For many people 2008 was a very rude awakening that you can't just throw a dart at a stock board and pick a winner. Everyone needs to pay much greater attention to their investments. This is especially important for those whose investing time horizon is short and will not allow them enough time to recover from a large downturn. Over time, the best place for your money is the stock market, but you have to be vigilant. If you don't have the time or knowledge to do it yourself, choose your investment advisor carefully. I know there have been enough crooked ones out there to scare off anybody. There are also many good ones. If you are a little bit leery, don't put your eggs in one basket. You can have multiple advisors, or you can give one a piece of your investable assets instead of all of them. Remember, it's your money and your future. Do it right.
Capital Asset
Let's back up a second. The things that create capital gains and/or losses are capital assets. What is a capital asset? Many of you simply relate that to investments like stocks or mutual funds. Actually, it's much more than that. Simply, it is any property except: inventory, property held for sale to customers, a note or account receivable, depreciable business property, real property used in a business or a copyright, literary or musical composition held by the one who created it. Okay, enough for the tax jargon. For most people, this is just about everything they own. Your house, your car, your clothes, your bicycle. These are all capital assets. And, yes, if you sell any of them you should report the gain or loss on your tax return. There is a "gotcha" here: if you sell your house, its furnishings or your car at a gain, you have to report it and pay tax on it. However, if you sell these items at a loss, you can't take it unless the property was used for business purposes. Uncle Sam loves ya!
Capital Losses
You may be one of those people who took a big hit during tax year 2008 and have a pile of capital losses from the stock market. The rule is that you can offset these losses with future gains. If you don't have future gains, you can offset your other income up to $3,000 per year. If you're saying that the $3,000 per year will last you a lifetime, don't worry - you have a lifetime. These losses never expire until you do. You can take the $3,000 every year until you die. Clearly not the best scenario. There are trading strategies which are geared toward recognizing short term gains. These would be great for those with unused losses because the gain recognition is "free" until the losses are used up.
Capital Gains
If you dodged the debacle of 2008 and are recognizing capital gains that will be taxed, here's the scenario: Long term gains (the sale from those capital assets held greater than 1 year) are taxed at a preferential rate of 15%. Short term gains (anything held less than 1 year) are taxed at your ordinary rate. For those lucky folks who live in Taxachusetts like me, they get an extra whack. Our short term gains are taxed at 12% for state purposes. Don't necessarily let the tax tail wag the dog, but if you can hold long term, it is much better tax treatment all around.
Capital Idea
The stock market clearly has been a wild ride the past couple of years. For many people 2008 was a very rude awakening that you can't just throw a dart at a stock board and pick a winner. Everyone needs to pay much greater attention to their investments. This is especially important for those whose investing time horizon is short and will not allow them enough time to recover from a large downturn. Over time, the best place for your money is the stock market, but you have to be vigilant. If you don't have the time or knowledge to do it yourself, choose your investment advisor carefully. I know there have been enough crooked ones out there to scare off anybody. There are also many good ones. If you are a little bit leery, don't put your eggs in one basket. You can have multiple advisors, or you can give one a piece of your investable assets instead of all of them. Remember, it's your money and your future. Do it right.
Subscribe to:
Posts (Atom)
