The World’s Largest Mattress-the US Treasury

Investors last Tuesday bought $30 Billion of One Month bonds at 0%. Yes, that’s right, ZERO!! According to the Wall Street Journal, they would rather earn nothing than take any risk. In other words, people put Billions in their mattresses! Now, the Fed is doing the same with the Fed Funds rate at or near 0%. So, do I prefer a mattress, floor safe or tin can buried in the yard??? NONE! This is what I call “being mean to money”. Money wants to grow like an office plant but too many times people ignore it or dump their coffee in it and it dies. Money can wither too if it is not taken care of. There are plenty of better options than earning zero like CD’s, fixed annuities have some great rates and just a regular savings account is better than nothing. So please, have a heart and don’t earn nothing on your money. Put it to work for you.

Eric
See us at www.wealthcreator.com

Year End Tax Deductions-where to find them

Most people do tax planning in April. That’s like Plaxico Burress saying now, “maybe I shouldn’t have a gun in my pocket, I might shoot myself.” TOO LATE!! Planning your taxes after the year has ended means most options are already gone. So, you have 29 days to act to still get the tax benefit for 2008.
“Alright, I’m listening but what should I do?”
First, was this year a higher or lower income year? If higher income due to bonus, stock options, stock sales, or other items you don’t anticipate happening next year, then do the items below. If lower, then try to postpone these items when possible.

1. Property taxes- you can pay both instalments this year to get the deduction all in 2008.
2. Mortgage payment- you can deduct interest only when paid, so paying your January payment in December allows for another interest deduction
3. Charity – you can give some money or items this month but you MUST have a receipt to prove it and the value of “items donated” is very much reduced now
4. Extra 401k, IRA, SEP contribution- you can add extra to max it out if you are able to fund one of these accounts. Remember, the funds are locked up until 59 1/2.
5. Gas & Oil Lease partnerships – These are one of the best ways to get a virtually unrestricted tax deduction. You can get a write off this year for 85% of what you invest in one. Make sure it is a good company with a good track record.

As always, talk to a tax advisor about these to see if they work for you. But please talk to them this month and not after it is too late.  We have a seminar on Gas Leases tax deduction investments on Dec 4th.  Please email jennine@wealthcreator.com if interested in attending.