How could a 5% return be better than a 7% return? You’re about to enter a new dimension, a dimension of sound, a dimension of sight, a dimension of mind . . . Want to impress your friends and advisors? Want to make more money? This lesson is for you. The question is can a…
Read MoreThere are really only three options when it comes to filing your taxes each year. 1.) Don’t file your taxes. Although this one is a real time saver in the short-run, prison can really ruin a perfectly good day. So that leaves just two options. 2.) Do it yourself. For simple situations, you could probably…
Read MoreI’ve thought about writing a book called Everything You Need to Know about Income Tax, but it turns out, someone already did. It’s called the tax code, and it consists of rules, explanations, formulas, and opinions on all things related to the federal income tax. You won’t believe how many pages it is. 73,954 –…
Read MoreAs an investor, you are guaranteed to make money, right? That would be nice, but we know you can and will lose money on some investments. So what happens if you buy a stock at $100 and then sell it later for $75? After you have a good cry, you then need to figure out…
Read MoreQuick Recap Ordinary income is income from most sources, like your job. It’s taxed the most. Capital gains are what happens when you sell an investment for more than you bought it for. These are also taxed, but not as much as ordinary income. And then there is this. It’s a highly secretive investment. Some…
Read MoreIn the last lesson, you learned what ordinary income is. Do you remember? It’s basically income from most sources – work, rental income, whatever. I talked about how ordinary income is like pizza and how the IRS loves to get their hands on it. Are you with me? Is it coming back now? Okay, forget…
Read MoreAn extraordinary lesson on ordinary income. Person A makes $100,000. Person B makes $50,000. Who is going to pay more tax? Well, obviously the guy making $100,000 is going to pay a lot more tax than the guy making $50,000, right? Guess again! Here’s what’s going on. Not all money is created equal. Not all…
Read MoreA boy getting a cavity filled asks his dentist, “Mr. Dentist, do I need to floss my teeth?” The dentist stops what he’s doing and replies, “No, definitely not. You only need to floss the teeth you want to keep.” And so it goes. Do you need to know about or care about taxes? Nope.…
Read MoreLet’s test your tax knowledge. What are the different types of taxes? A) Bad B) Not Good C) Terrible D) Rotten E) Horrible That’s a little tax humor for you. I’m here all tax season. Don’t forget to tip your tax preparer! So, what are the actual different types of taxes? I hope you’re sitting.…
Read MoreA math teacher didn’t believe this calculation You’re learning a lot about taxes, but maybe you’re not convinced taxes are a big deal. I feel ya. Maybe you’re right. Maybe taxes aren’t such a big deal. Let’s run through a quick little example. Imagine you had an investment that doubled in value every single year.…
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