How to Make Rain in a Financial Desert
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We’re heading into late summer…two-plus years into the country’s deepest recession since the Great Depression…and the mild optimism offered a few months ago may be drying up. In a move that recently made headlines, the Fed decided to keep interest rates low. By doing so, The New York Times reported the Fed was acknowledging “their confidence in the recovery has dimmed.”
This is stifling news for the millions Americans who remain unemployed, those who have foreclosed on their homes, and those who have seen their retirement savings evaporate. No one wants to face the fact that the country’s financial draught may linger. But how to make rain?
While the lawmakers, business leaders, and financial institutions grapple with the issue, it would be wise for each of us to do what we can, on our own, to bring on the rain.
Just as a seed planted in the spring needs moisture throughout the summer to be ready for the harvest in the fall, your retirement savings require nourishment to grow. In an otherwise arid climate, how is that possible?
Ask the folks who have not yet lost a dollar from their retirement savings vehicles – and even continued to gain a rate of return over the last two years. Rather than following the crowd and using traditional retirement accounts like 401(k)s and IRAs, they optimized their assets and leveraged maximum-funded, tax-advantaged insurance contracts.
Find out what you can do now, even in this financial desert, to use the same strategies they did.
By Doug Andrew
LUCA Financial Services
Leon Williams
leon@lucafinancial.com
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5 Steps on How To Budget
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The typical perception of a budget is usually met with a scowl and a feeling of “doing without”. this perception and the feelings that come without could not be further misplaced.. In fact, a well crafted budget can allow you to be able to save for college, buy new cars, take great vacations, donate to charity, etc. Properly preparing a budget that actually works for you has perplexed even the most financially educated individuals. Here are 5 steps to get you on your way to a more fulfilling and prosperous life. Read More→
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It has been said that the majority of bankruptcies could be prevented with less than $200 per month in additional income. The amount of debt that we continuously take on keeps us depressed, stressed out and unhappy. Here are some areas perhaps you have not thought about where that additional money could be found Read More→
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The Money Disorders That Ruin Are Financial Lives
By · CommentsNo one would disagree with or object to the three principles of-you should spend less than you earn, you should regularly save toward your goals, and you should buy and hold solid investments with an eye toward the long term. However, even though these points are widely known and accepted, millions of people still haven’t been able to overcome the financially detrimental behaviors preventing them from putting their knowledge into action and getting on the best financial path. Read More→
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Health Insurance Reform Questions
The Exchange would be open to those who currently purchase insurance in the individual market. This group would include, for example, early (pre-Medicare eligible retirees), the self-employed, individuals whose employers do not provide insurance, or those who cannot affor Read More→
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A key provision of the Acts’ insurance reforms is the creation of “Exchanges.” The Exchanges would be state based and serve as an aggregator of individual policies sold by private insurers and underwritten using the new federal underwriting and rating rules spelled out by the Acts. The Small Business Health Options Program (SHOP) would Read More→
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No More Tax On Forgiveness Of Debt In California
By · CommentsNO MORE STATE TAX ON FORGIVEN DEBT
Distressed homeowners no longer have to pay California state income tax on debt forgiven in a short sale, foreclosure, or loan modification. Enacted into law yesterday, Senate Bill 401 generally aligns California’s tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a “qualified principal residence,” borrowers will now be exempt from both federal and state income tax consequences. The existing federal exemption is for indebtedness up to $2 million, whereas the new California exemption is for indebtedness up to $800,000 and forgiven debt up to $500,000.
“Qualified principal residence” indebtedness is defined as debt incurred in acquiring, constructing, or substantially improving a principal residence. It includes both first and second trust deeds. It also includes a refinance loan to the extent the funds were used to payoff a previous loan that would have qualified.
The tax breaks apply to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.
Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.
For more information about mortgage forgiveness tax consequences, go to California Franchise Tax Board’s Mortgage Forgiveness Debt Relief Extended webpage and the Internal Revenue Service’s Mortgage Forgiveness Debt Relief Act and Debt Cancellation webpage. The full text of Senate Bill 401 is available at www.leginfo.ca.gov.
Brought to you by the California Association Of Realtors
Leon C. Williams Certified Foreclosure Specialist Pre-Foreclosure Coach leon@williamslandmark.com Leonsblog Sacramento Short Sale Guru Sacramento Pre-foreclosure Workshop Williams Landmark Real Estate
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The provisions of “the Patient Protection and Affordable Care Act” can be quite daunting to sift through. We are going to take the time to talk about specific questions that most people are having concerning this landmark legislation. The biggest question is, How will people get insurance through this reformed health insurance system? Read More→
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Ten Things You Should Know About Credit
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Understand your rights under the Fair Credit Reporting Act
It is important to understand your rights under the Fair Credit Reporting Act. There are lots of regulations that creditors have to follow before they can negatively affect for Credit Report. Knowing these regulations will always put you in the driver seat and prevent you from becoming a victim. You can download a copy of the Fair Credit Reporting Act here. Read More→
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Ten Things You Should Know About Money And Debt
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Tired of hearing about money and debt? Are you on overload yet on the myriad of strategies that will get you out of debt and allow you to become a Financial ninja?
Here are 10 takeaways that you can implement immediately that will send you on your road to becoming a personal finance guru: Read More→
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