Tag

humor

Early Retirement, Frugal Living, Lifestyle, Taxes and Investing

Here is How You Can Piss Off Donald Trump

Disclaimer: This is not a political rant! The time is ripe for this message and Trump happens to be President. It is meant as satire wrapped around a serious message you must follow or suffer the financial consequences.

Nothing is more fun than good times. The recent run in the stock market in nothing short of incredible. After years of slow growth economy and low inflation coupled with a rising stock market, the stock market has exploded. The chart has gone parabolic! But this is not a story about investing or the stock market, however. This story is about pissing off Donald Trump.

Promises of faster economic growth and more high paying jobs face reality after Election Day. President Trump has hitched his wagon to a promise of hyper economic growth, in the neighborhood of 4% or higher. Depending on the day, a lot higher. I’m guessing if things go well we can see wages double every three, maybe four, years. And the best part, no inflation while the government pays off the national debt and increases spending across the board. Such are the promises of politicians.

And in these “best of times” you think it will last forever. Think 1929 or 1987 or 1999. Oh, for the heady days on 1999 when broad stock indexes sported triple digit P/E ratios. How can you lose? The future is clear to the horizon. Life is good, just ask the government.

Continue reading

Related posts
Applying Cost Segregation on a Tax Return
March 27, 2017
Tax Deductible, Low Cost, High Speed Internet You Can Take Anywhere
March 24, 2017
Everybody is Talking about the New Forum on The Wealthy Accountant
March 23, 2017
Lifestyle, Small Business, Taxes and Investing

The Tax Loophole You Never Thought Of

al_capone_in_floridaWhen someone in the local area makes the news for embezzlement it is not a matter of if they will show up at my office, it is when they show up. The same scenario plays out every time. Someone gets caught with her fingers in the cookie jar (usually for gambling) and charges are filed. The district attorney prosecutes the case. (Embezzlement cases make the news and the district attorney is a politician who can’t help getting on her knees to earn some votes.)

Most embezzlement cases end with a conviction, or more often, a plea agreement. The accused is eager to make a deal that keeps her out of prison. The DA and judge soil themselves with the familiar sentencing template. The defense attorney has no choice but to recommend her client goes along with the deal to stay out of jail.

I see the same agreements again and again. The prosecutor demands a brutal repayment plan to the victim, the judge rubber stamps the deals and the accused jumps up screaming, “I’ll take it!”

Then the IRS letter arrives three weeks later and the house of cards is ready to fall. Ill gotten gains, you see, are still required to be reported as income and the IRS watches these financial crimes cases very closely. When the defendant loses or takes a knee the IRS swoops in for their share of the pickings. All that unreported income is now taxed with penalty and interest added. And no money to pay for it.


Continue reading

Related posts
Applying Cost Segregation on a Tax Return
March 27, 2017
Tax Deductible, Low Cost, High Speed Internet You Can Take Anywhere
March 24, 2017
Everybody is Talking about the New Forum on The Wealthy Accountant
March 23, 2017
Frugal Living

Free College Education and a Free Car Too




Before we get started I need to add a disclaimer up front. Periodically a topic comes up at the office where I shed financial advice in a less than politically correct manner. What you read here is a scene that took place as I left the office last night. When I get into one of those moods—usually induced by an overdose of caffeine—the advice I give is solid coupled with a massive dose of sarcasm. If you are easily offended you might want to take a pass on today’s post.

Free College

The topic of college costs came up and the payment of student loans. I have no sympathy. Student loans are a cancer that need to be excised immediately. The argument was other debt should be paid first before student loans. I disagreed. Let’s listen in on the conversation.

Tyler speaking to Dawn: You shouldn’t pay off student loans first.

Wealthy Accountant: Yes you should. Do you know how hard student loans are to discharge? The darn things follow you like the plague.

Tyler: But she has a car loan.

Dawn: The interest is higher on the car.

WA: Yeah, yeah, I forgot about that. Yes, you should pay the higher interest loan off first. You shouldn’t have student loans in the first place. You don’t need student loans to go to college; it’s not part of the curriculum.Continue reading

Related posts
Tax Deductible, Low Cost, High Speed Internet You Can Take Anywhere
March 24, 2017
Everybody is Talking about the New Forum on The Wealthy Accountant
March 23, 2017
It’s a Small World
March 20, 2017