Where Will Your Future Money Leave You

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While many don’t want to look that far ahead, and worry about money when you don’t know what is going to be in the future it is important to plan something at one point.

What do you need to deal with for life planning?

Your life planning is going to involve so much more than saving money. You also need to know how much money you need, where you will keep your money, and what type of lifestyle you want to live as you begin to retire. You need to set aside money for your death, your life, and your living expenses.

Expenses can include your taxes for your home. When mortgages are paid off you still have to face insurance and taxes on the home you live in. If you rent, you will have a rental payment monthly that will replace the insurance and taxes expenses that others face.

Realizing what you want

Generations age, and the baby boomers are reaching their later years quickly teaching others in the nation about saving, and retirement. The need for money was instilled in the generation of baby boomers at a very young age, and most have carried that with them over the years. While happiness is not always bought by money, it does making enjoying life much easier. Along with money, many retires must also look to their other needs, such as spiritual life, happiness and creative happiness before retiring as well.

As you retire most are not going to be able to play the ‘game’ of do I have what my neighbors have. Buying ‘toys’ as one reaches retirement age does take make a change in one’s lifestyle. The retirement lifestyle changes how younger family members look at 401K plans, IRAs and even savings accounts. Making your future your own all begins with some type of savings, no matter how little that savings could be step by step. Plus taking measures to prevent possible identity theft.

Everyone wants a little money when they retire, and you are going to be no different. You can’t rely on the lottery to set you up with a retirement plan, so you have to make choices while you are young enough to save. You are never too old to start a savings account.

Because there are so many older people who have not saved money before trying to retire, they are finding that social security is just not going to cut it. Older Americans are taking jobs that are meaningful, but that are part time just to make ends meet. These are the types of people that should have saved something when they are young. If you don’t learn lessons from the older people you know now, you are going to be in the same predicament you are older as well.

Often Missed Tax Deductible Items

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Tax deductible items are overlooked on most occasions even if you have someone like me who has been preparing income tax returns for 18 years prepare your taxes. If you are doing them yourself then you definitely need this information.

1. Miles driven for medical related incidences are deductible as an itemized deduction. The rate is $.20 for 2007 and $.19 for 2008. Miles are totaled for doctor visits and hospital visits. Start adding them up and you will be amazed. Think about it on a weekly or monthly basis and then multiply by 52 or 12 respectively.

2. Mortgage interest paid on a 2nd mortgage is often overlooked. If you have a motor home with a functioning kitchen and bathroom you are entitled to this often over looked tax deductible item.

3. Charitable donations are often overlooked since we do this out of the kindness of our hearts. But when it comes tax time sit down and figure these up. Include donations to Deseret Industries and vehicles donated to different foundations.

4. Expenses incurred during a move that is job related are a tax deductible item. Ask your tax preparer about this one as there are certain tests to be satisfied. If you qualify include expenses for transportation and storage of household goods. Also travel including lodging from your old home to your new home is deductible.

5. Alimony is deductible by the payer and reportable by the recipient. Do not pass this up as this can take a little pain away from the amount being paid each month to the ex. If you are in a 28% tax bracket and the alimony amount is $1000.00 per month then the annual tax reduction is $3,360.

6. Interest for loans to pay education expense are a deduction. With graduation comes so many changes and mail gets lost and misplaced or just does not get forwarded. Take advantage of this deduction by being sure you know how much interest was actually paid for the year.

7. Taxes withheld from your paycheck that have been sent on to your state on your behalf by your employer are deductible. Also if you owed your state for taxes from the year before that you paid during the current tax year do not forget this tax deductible item.

8. You can create a capital loss on your individual tax return by deducting worthless debts. These are loans you have made to family and friends that have not been repaid. Capital losses go nicely against capital gains

9. If you are self employed there are countless deductions but for the purpose of this article do not be afraid to take a loss on line 12 of your 1040 resulting from your Schedule C. If I did not make any income from my self employed venture can I take a loss? Yes absolutely.

10. Often clients will rent a home to a family member and will not want to report the rental income. This is a big mistake because it is illegal but you also miss out on legitimate tax deductions that when properly totaled create a loss on your 1040 that goes against income from other sources.