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7 Tools to Build Wealth After 50

By Keith Taxguy / July 25, 2021 /

Once you reach 50 retirement planning takes on a new level of seriousness. Avoiding a setback is more important than ever as there is less time to recover.

There are tools available to help you build for retirement and plan for life in retirement. You can reduce taxes and increase income with these tools. Anybody can use these tools at any age; for those 50 and older these tools have added benefits reducing taxes and increasing retirement income.

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US Savings Bonds and Taxes

By Keith Taxguy / July 5, 2021 /

Millions of Americans own U.S. savings bonds. They are the perfect gift for a newborn and young children you want to teach habits of thrift. U.S. savings bonds also get special tax treatment and can be used as a higher education funding tool for some taxpayers. We will focus on the tax benefits of Series EE, Series HH and Series I savings bonds in this article. 

We will start with the basics of each series of bond followed by tax benefits and potential tax pitfalls surrounding savings bond ownership. A savings bond calculator is provided at the end of this post so you can find the current value of U.S. savings bonds you currently own.

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Minimize Taxes on Day Trading Profits

By Keith Taxguy / June 7, 2021 /

The risks associated with day trading extend beyond the actual investment. Before the trade is placed consideration needs to be given to the tax implications. 

Profits and losses for day traders can be taxed under the rules for an investor, trader, mark-to-market trader or dealer. There are pros and cons to each method.

Facts and circumstances prevail. Yet, the rules are not always clear. 

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10 Early Retirement Considerations

By Keith Taxguy / May 10, 2021 /

Before taking the plunge into retirement, early or traditional, you need to consider factors that will reflect the rest of your life. Handled correctly, early retirement can be a fulfilling blessing. Without proper planning you risk a return to employment you wanted to get away from.

Retirement means different things to different people. Some want to sit back and enjoy a life of leisure. Others wish to travel extensively. And there are some who consider retirement the grand opportunity to start the business of their dreams (maybe not technically retirement, yet still fulfilling), write a book or engage in charitable work.

The path you choose is up to you; there is no right or wrong answer as long as it suits your temperament. There are considerations with right and wrong answers. Get these wrong and retirement can be less than the blessing planned.

Money and taxes play a large role in when you retire and what activities you engage once in retirement. Meaningful activities and family are also serious considerations. 

To help you prepare for retirement, I will discuss 10 things of vital importance to smooth the transition. I provide a starting point. You need to prepare from the starting point I provide so retirement plans are retirement realities.

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The Two Biggest Risks of Owning Bitcoin and Other Cryptocurrencies

By Keith Taxguy / April 27, 2021 /

The excitement of bitcoin and other cryptocurrencies has risen to the height of the casino run. The house holds the odds, but for the moment, the card gods are looking kindly upon the gambler.

Some say the run has just begun. As I write, bitcoin is north of $50,000 with at least one large investor feeling bitcoin is going to somewhere around $500,000 per bitcoin! Mark Cuban was not interested in plastic wristbands that promised more energy (a scam), but has no problem with owning cryptocurrency. Interesting. 

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The Power of a Vacation

By Keith Taxguy / April 19, 2021 /

The backbone of financial wealth is built on hard work. Yet, physical, mental, spiritual and financial wealth cannot coexist with uninterrupted labor. Every business owner knows, or should know, the power of a vacation. And if you want optimal health and wealth, you better know, as well.

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31 Frugal Tips and Tricks

By Keith Taxguy / April 12, 2021 /

Frugality is the animal that must be bred to achieve financial goals. There is no amount of income that can’t be spent, and then some. If you don’t believe that, take a long look at the U.S. government to get a view of an amount of money that can be spent with ideas to spend more.

The seed of wealth is the money you didn’t spend and instead invested. That is the only course in building a steady stream of income to enjoy the life you want. 

The investment isn’t the problem; the seed is. You can generate a generous income stream from real estate, index funds or a business. In each case it is the excess cash you didn’t spend that is the seed that grows to satisfy your dreams.

The more frugal the lifestyle, the less you need to retire. 

Image a man with a million dollars invested. Is he rich? Could he retire? Well, the questions are impossible to answer. If he spends $300,000 per year the million isn’t so much. If he spends under $40,000, he qualifies under the 4% rule to retire because he is unlikely to ever deplete his nest egg. 

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Why Cheating on Your Taxes Costs More

By Keith Taxguy / March 29, 2021 /

This past week an old story was refreshed for me. A tax office that handles mostly simple tax returns for a very low price and gets paid mostly cash might not be claiming all that income. A previous employee of that firm informed me over $300,000 in cash was kept in a safe in the money cage. 

The final response (and I was thinking the same thing) was, “And I’m sure all that cash was reported.

Cheating on your taxes is as American as apple pie, but a whole lot dumber. If this other tax firm really has that much cash on hand and does not report all their income they lose a lot more than most people expect. 

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