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YOU ARE RICH: - Rich people pay a lot in taxes.
- When you hear politicians
talk about rich people, statistically, they are, most likely, referring to you.
- Most people make IRA
and Simple Plan contributions at the last possible date. Contributions should be made as early in the year
as possible to maximize tax deferral.
- Self-employed persons can deduct a portion of their medical insurance
premiums even if they can’t itemize deductions.
- Almost no one gets to claim a medical expense deduction.
- Most people don’t
know that a married couple can exclude up to $500,000 in gain from the sale of a personal residence.
- Non-cash donations
are often overlooked.
SPENDING PLANS: - That we have clients
that use envelopes or worm bags to divide their weekly spending money for lunches, groceries, dining out, video rentals, dry
cleaning, movies or theater. You spend only what you have allocated, or sacrifice in another area.
- That teaching your
children how to allocate their money wisely is a gift that keeps on giving.
- That a simple test of giving your
children a choice of a smaller bag of their favorite candy now or a larger bag at the end of the week will give you an insight
to their habits.
- That personal bankruptcies may hit another all-time high this year.
BUSINESS TIPS: Exempt
from sales taxes will be: a) the cost of labor to repair storm damaged, nonresidential property, including office buildings
and stores. Labor must be listed separately. b) services used to restore storm-damage
property, including dry cleaning of clothing and draperies, rug and carpet cleaning, and appliance repairs.
LIVING WILLS:
There is a website that will
let you know if you have left some money unclaimed.
IMPORTANT YEAR-END REMINDERS:- For all business vehicles, Record
your Odometer Reading at 12/31 of each year.
- For Flexible Benefit Plans, Spend all the money in the account. It is a “use it or lose it” plan.
- For IRAs, any minimum distributions are made before December 31st.
- Pay Real Estate Taxes, Charitable Donations and Other Business
Expenses by December 31 for a current tax deduction.
FEDERAL RESERVE CHAIRMAN & TREASURY SECRETARY SPEAK: - Federal Reserve Chairman Alan Greenspan noted that people who have
a grasp of financial basics tend to shop wisely, meaning they get more goods and services for less cost (increasing the amount
of money they have to spend, save, invest, or give away.)
- Treasury Secretary Paul O’Neill said
that widespread financial ignorance is exacting a “tragic human and personal cost.” He went
on to say that 40% of Americans “admit they are living beyond their means, primarily because of the misuse and misunderstanding
of credit”. He encouraged people to find help, to begin saving, to think twice about impulse buying,
and to focus on long-term investing.
ON THE UP SIDE:
- In 2000, Dow rises 140.55
to close at all time high of 11,722.98, first close above 11,600.
- In 2000, Dow rises 499.19
to close at 10,630.39, largest dollar gain in history, up 4.93%.
LITTLE
KNOWN FACTS: Texas driver's licenses have the phone number 1-800-525-5555 in small print, on the back, just above the bar code or at the bottom of the card.
It's for assistance on Texas highways. If you call that number in the event of a breakdown or other problem, a service
truck will be sent to you. The State runs the program and it is provided from our taxes. - West Nile encephalitis is an infection of the brain caused by the West Nile virus,
a flavivirus found in Africa, West Asia and the Middle East, with outbreaks having been reported in Europe. It is closely related to the St. Louis encephalitis virus found in the United
States. Centers for Disease Control scientists believe the virus has probably been in the eastern United States since
the early summer of 1999, possibly longer. The most serious manifestation of West Nile virus infection is fatal in humans
and horses, as in certain domestic and wild birds. In humans, less
than 1 percent of those infected with West Nile virus will develop serious illness. However, among those with severe illness,
the fatality rate ranges from 3 percent to 15 percent and will be highest among the elderly. West Nile virus has been identified in more than 100
species of birds in the United States, and most of these birds were identified through reports from the public. The Texas
Department of Health requests dead blue jays or crows be reported to its hotline, (800) 252-8239, or nearest city or county
health unit.
FOR
YOUR PROTECTION: On back of credit cards, write “Ask
for I.D.” When ordering checks, list only your initials on your check and not your full names; list your work phone number instead of your home number. You should keep a photocopy of all contents of your wallet. Both sides of your license,
credit cards, etc. Travel with a copy of your passport. Call the 3 national credit reporting agencies immediately to report a fraud alert on your name and social
security number. Those numbers are:
I HAD MY PLANNER STOLEN WHILE TRAVELING: One call to a national credit-reporting agency reporting a fraud alert on my name and
social security number & they contacted all the other companies. Those numbers are: A copy of
all contents of my planner was in a file where my husband could contact each of companies and cancel my credit cards. Oops, my social security (SS) card & driver’s license were together and the
potential for fraud was great. I do not carry my SS card any more. I obtained a copy of my credit report & learned that I have lived in other states (news to me). I learned that most places never look on back of credit cards where I wrote, “Ask
for I.D.” My planner was returned with the cash missing!
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