There are six common misconceptions that plague investors and their returns. Perhaps you know of someone who may or may not fit these categories?
I.Q. – Just because you may be a rocket scientist does not mean you can also pick stocks that will outperform the rest of the market. But many with high I.Q.s think they can beat the Dow Jones solely on brainpower.
Return Entitlement – People have high expectations. If part of their portfolio did well over a brief stint, then why not the whole portfolio? Life, unfortunately, does not work that way.
Even the most careful, dedicated savers don’t always have a strategy in place to meet financial needs during retirement. Many of us simply put money aside and figure things will work themselves out.
All too often, people are making mistakes, but not realizing the implications. The good news is these pitfalls are easily avoidable if you know to avoid them. TaxRevo suggests every retirement saver avoid these five all-too-common practices:
- Withdrawing funds early.
- Borrowing from a 401(k).
According to data from the Organization for Economic Cooperation and Development (OECD), the citizens of the United States are one of the least taxed populaces in the world. In 2012, US taxes at all levels of government represented 24 percent of GDP, compared with an average of 34 percent of GDP for the 34 member countries of the OECD. The comparison includes all taxes within a country, income as well as property, social taxes for such things as healthcare and retirement programs, sales and other consumption taxes, and estate taxes.
- 1 – File Form 720 for the second quarter.
- 1 – File Form 730 and pay the tax on wagers accepted during June.
- 1 – File Form 2290 and pay the tax for vehicles first used during June.
As all eyes are squarely on summer, I hope that you will be able to take some well-deserved time and enjoy relaxing with your family and friends.
At TaxRevo, we will be working diligently through the summer, under the quiet hum of the air conditioner, ensuring all of your tax and finance needs are promptly met. Please know we are continually working to find ways to make the tax system work for you in the easiest and quickest ways possible.
We will be reaching out to you in the upcoming weeks as we plan for the final two quarters of the year. In the interim, if you would like to bounce some questions off us, or offer a suggestion or two, we are always just a quick phone call, email or text away.
It seems there’s always a new scam to report. The Internal Revenue Service (IRS) issued a consumer alert about possible fake charity scams emerging from last month’s mass shooting in Orlando, Fla., and encourages taxpayers to seek out recognized charitable groups.
When making donations to assist victims of the terrible tragedy, there are simple steps taxpayers can take to ensure their hard-earned money goes to legitimate charities. IRS.gov has the tools taxpayers need to quickly and easily check out the status of charitable organizations.
Generating a budget is the first step to having full control of your finances. Maintaining that budget is another challenge in itself.
Even when you think you have everything covered, somehow you end up needing more money than you allocated. Below are the most common costs that can cause you to veer off your budgeting course.
- Account Maintenance Fees - Be sure to keep a close eye on your bank and credit card statements. Read the terms of your account agreement closely. Sometimes banks and credit card companies charge you for all sorts of things.
We’re always thinking of how to save more money for our clients; we consider it the “TaxRevo Way.” That’s why you should talk with us about some smart and easy strategies you can make to maximize your retirement savings. We suggest you:
- Maximize your employer match
- Invest in tax-advantage investments
A new report by Phoenix Marketing International found that Maryland and Connecticut have the most millionaires per capita than any other state.
The research firm said that 7.7 percent of all the households in Maryland have more than $1 million in investible assets, making the state No. 1 in the country. That means millionaires live in one out of every 13 households.
Connecticut ranked second, with 7.3 percent of households achieving millionaire status; Hawaii ranked third, with 7.25 percent.
- 1 – File Form 11-C to register and pay annual tax if you are in the business of taking wagers.
- 11 – Employers: Employees are required to report to you tips of $20 or more earned during June.
- 15 – Deposit payroll tax for June if the monthly deposit rule applies.