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Save Money – Move to Nevada!

28/08/14 8:00 am | Comments (1) | Posted By:

California has always been notorious for their high cost of living combined with high income taxes. These tax rates are as high as 13.3% for high earners with income over $1,000,000. And to make matters worse, in 2012 California took the precedence of retroactively raising rates at the beginning of 2012 for a law that passed on November 6, 2012. Running numbers, an average household earning $100,000 in California, would pay close to $7,000 in taxes to the State.

The good news is that it is easy to just hop over the border, move to Nevada, and save the $7,000. This is especially true for a retiree with no job holding them down. Your $100,000 income would also go a lot further in Nevada than California!

So how would you go about moving to Nevada to not have to pay California’s onerous tax? This is easy if you own no property in California and retire in Nevada. You just sell your house and move your life to the Silver State. However, you might want to keep your home in California, which makes things more complicated as the Golden State does not want to forego any of their tax revenue (but remember, any income sourced in California will always be subject to their tax).

So what to do? First, spend less than nine months in California every year as California presumes you’re a resident of their State if you spend more than nine months there. Second, if you own a home outside of California and your presence in California is less than 6 months you are not considered a resident if you can prove that your activity is just as a guest. Further, there are additional factors that California considers in the instance that you are audited. These primary factors include:

  • the size of the homes in California compared to Nevada
  • where your personal property is located
  • family connections
  • and active business involvement.

Secondary factors, which are easy to conform to, include having a CPA and attorney in Nevada, registering your vehicles in Nevada, getting a Nevada driver’s license, and where you spend your money as California could request to look at your credit card statements.

Moving to Nevada can be a huge leap, but one that keeps more money in the bank to protect your wealth or have a more meaningful life as a retiree.

 

Putting Away for Retirement; Some Troubling Statistics

21/08/14 9:34 am | Comments (0) | Posted By:

 

According to a recent survey performed by Bankrate.com, a third of people (roughly 36%) in the U.S. have nothing saved for retirement. Of the 1,003 adults surveyed, 69% of those with no retirement savings were between the ages of 18 to 29. That’s not entirely shocking given the fact that not only are most adults at that age not even concerned with retirement, but generally things like moving out on your own, higher education expenses, etc. take precedence. However, 33% of those surveyed between the ages of 30 to 49 had no retirement savings and 14% of those age 65 and older had no retirement savings. Most of those surveyed acknowledged that they were not on track in saving for retirement. One can only assume that these individuals are relying in part or in whole on social security.

Given the fact that most reports have predicted the Social Security Trust Fund will run out of money in 2033 and benefits from that point forward would need to be reduced, these statistics are troubling. Those surveyed between the ages of 30 to 49 won’t have even reached retirement age before the Fund runs dry, and the life expectancy of the average American continues to increase.

The Social Security Administration actually has some fairly decent calculators, one of which is the life expectancy calculator. Also, almost all banks and investment companies have free calculators online that can give someone at least a rough of idea of what you would need saved along with Social Security benefits in order to retire. Remember, it’s never too late to start saving!

 

 

IOLTA – What Is It?

14/08/14 9:01 am | Comments (0) | Posted By:

 

IOLTA (Interest on Lawyers Trust Accounts) was created in 1980, when the Congress modified federal banking laws allowing banks to pay interest on checking accounts. The first IOLTA account was created in Florida in 1981.

IOLTA is source of funding to provide access to justice for individuals and to improve our justice system. Every state, along with the District of Columbia and the Virgin Islands, operates an IOLTA program. These funds, together with private grants and donations enable nonprofit legal aid providers to help low-income people with various civil legal matters and provide education about our justice system. The United States IOLTA programs generated more than $124 million dollars nationwide in2009.

Every attorney and law firm in Nevada are required to create and maintain an interest-bearing trust account for the deposit of clients’ funds when the funds cannot otherwise earn enough income for the client to be more than the cost of securing that income. The trust accounts must be an interest on Lawyers Trust Account (IOLTA) at participating financial institutions. The client, and not the IOLTA program, will receive the interest if the funds are large enough or will be held for a long period of time. These funds will not be in IOLTA accounts. Each attorney or firm has the discretion to decide whether the client’s funds are nominal or are to be held for a short period of time.

Examples of types of funds to be deposited into IOLTA accounts include:

  •  Retainers from clients, until actually earned
  • Funds of the client held for disbursement at a later time
  • Personal injury settlement and awards
  • Deposits required on closing property transactions

There may be other types of funds that should be deposited into IOLTA accounts.

The interest income from IOLTA accounts payable to a tax-exempt organization is not taxable to the client or the attorney nor is it deductible.

 

Cutting costs for back to school shopping

07/08/14 10:01 am | Comments (0) | Posted By:

 

It’s time for your kids to go back to school, and with that comes a lot of added expenses. With all of the back to school sales it is easy to get overwhelmed, and end up spending much more than planned. Here are a few tips to stay in budget when going back to school shopping this year:

  • Create a plan before you go shopping. Have a list of what you think your kids will need for the year, or at least what they will need to get the year started. For some levels of schooling, the teacher/school provides a list of what supplies the students will need for the year. If that is the case wait until the teacher gives you the required supplies list to go shopping.
  • Take advantage of back to school sales, store reward programs, coupons, bulk sales, and other types of sales the stores may be offering. It is smart to shop around, this can be done easily by looking online to see what the current prices of the items you need are, and what store is selling them at the best price.
  • If the items/clothes are not needed right away, it costs less to buy clothes after the initial back to school period is over. Fall apparel is usually listed at its highest price at back to school time. By waiting a few months you can see lower prices on fall clothing. This also applies to supplies; a lot of stores will put their remaining supplies on sale (or even clearance if they ordered too much inventory) after the back to school rush.

Many people forget to factor in sales tax when creating a budget. These amounts can definitely add up so it is important to include this in your budget. Some states even offer a few days in the late summer where school related items can be purchased tax-free. If you live in one of these states, try to take advantage of this because it will make a difference.

By staying on budget it will make back to school shopping more enjoyable for both you and your children.

 

AUTOmazement

31/07/14 8:24 am | Comments (0) | Posted By:

 

Okay…I confess…I am a little goofy when it comes to cars. However, in my defense, the goofiness is a rather common ailment for many people these days.

Hot August Nights 2014 began earlier this week in northern Nevada and will conclude on August 3, 2014. This will wrap up the 28th year of this event which debuted August 1, 1986. This event has grown into one of the largest, most anticipated annual events in our area. It currently features 10 days of events across the area celebrating the 50′ and 60′s – “a time of innocence, prosperity, cars and the birth of Rock and Roll.” Of course a huge part of this celebration centers around the automobile.

Oh…the automobiles! For me, HAN usually begins in mid-June when I start to see the local enthusiasts breaking out their “classics” and getting them ready for the big event. In late July/early August, the local enthusiasts are then joined by thousands of other enthusiasts during the event week and the party begins. Although I was a bit young to experience this innocent, prosperous time, I nonetheless have a definite appreciation for the four-wheeled artwork that rolled off of the assembly lines in the day. You do not have to be an owner of one of these fine pieces of machinery to participate…simply attend a Show-n-Shine, take in a “Controlled Cruise” through one of our downtown areas or just take an evening stroll down your favorite street. I promise you will be dazzled by the scenery. To access a full schedule of the Hot August Nights events, visit their official website at www.hotaugustnights.net.

If you haven’t attained your fill of beautiful buggies by the end of Hot August Nights, I have another suggestion to whet your appetite. Merely one week after the conclusion of HAN, car enthusiasts can move their operations down to the Monterey Peninsula to continue their oooo’s and ahhhh’s.

The nearly week-long schedule of events culminates with the Pebble Beach Concours d’Elegance which has been described as the World Series or Super Bowl of the automotive universe. Once each year, on the third Sunday in August, about 200 of the most prized collector cars and motorcycles in the world roll onto the fairway of what is often called the best finishing hole in golf — the famed eighteenth at Pebble Beach Golf Links. Tire meets turf and transformation occurs: the stage is set for one of the most competitive events in the automotive world. The occasion is the Pebble Beach Concours d’Elegance.

Like HAN, these events can be enjoyed by non-owners. There are several “free” opportunities to see some amazing pieces of rolling art or you can often become a part of yesteryear by merely hanging out at an intersection in Carmel-By-The-Sea. And once again, I promise you will be dazzled! To access a full schedule of events visit the official Monterey website 

 

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