more from our friend Chris Portera
The IRS is reminding the public to avoid identity theft scams that may use the IRS name, logo or website address to trick taxpayers into believing that the scam is a genuine IRS request for personal information or other official communication. Such scams can operate through fax, phone, or e-mail (also called phishing scams). The IRS does not normally contact taxpayers or request personal information by email and any communications purportedly from the IRS asking for a lot of detailed personal information should be suspect. If an individual receives any such email, they should not open any attachments or click on any links in the email. Any suspicious email should be forwarded to the IRS at phishing@irs.gov and then deleted from the recipient's inbox.
When in doubt, individuals should contact the IRS directly at 1-800-829-1040, to make sure that any suspicious communications were in fact sent by the IRS. Recent scams have involved the Making Work Pay tax credit, false notices claiming that the recipient is entitled to receive millions of dollars from recovered funds, lottery winnings or cash consignments, counterfeit IRS Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, and other counterfeit IRS forms, and most commonly, tax refund scams.
With respect to refund scams, the IRS stresses that taxpayers are not required to complete special forms to receive tax refunds that were claimed on previously filed returns. In addition, the public should be on the lookout for suspicious communications that threaten consequences for failure to respond, that use incorrect grammar or odd phrasing or that contain extremely long email addresses that do not start with the actual IRS Web site address http://www.irs.gov/.
Wednesday, August 5, 2009
Friday, July 31, 2009
2009 summer tax tips: Tax scams
Five Tax Scams to Avoid this Summer
IRS Summertime Tax Tip 2009-08
Every year, The IRS releases its list of the top 12 tax scams and schemes. These scams - known annually as the Dirty Dozen - are illegal and can lead to problems for taxpayers who risk significant penalties, interest and possible criminal prosecution. Here are five scams from the 2009 Dirty Dozen list every taxpayers should be aware of this summer.
1. Phishing - Phishing scams often take the form of an e-mail that appears to come from a legitimate source, including the IRS, that contain enticements for the recipient such as additional money back on their previous year's tax return. Regardless of how official this e-mail may look and sound, the IRS never initiates unsolicited e-mail contact with taxpayers about their tax issues. The Internet-based scam artists use the personal information obtained through these e-mails and Web sites to steal the victim's identity, access bank accounts, run up credit card charges or apply for loans in the victim's name. If you receive an e-mail that you suspect is a phishing attempt or directs you to an imitation IRS Web site, please report them to the IRS at phishing@irs.gov. You can also visit the IRS Web site at IRS.gov and enter the keyword phishing for additional information.
2. Abuse of Charitable Organizations and Deductions - The IRS continues to observe the misuse of tax-exempt organizations. This includes arrangements to improperly shield income or assets from taxation and attempts by donors to maintain control over donated assets. The IRS also continues to investigate various schemes where donations are highly overvalued or the organization receiving the donation promises that the donor can purchase the items back at a later date at a price the donor sets.
3. Abusive Retirement Plans - The IRS continues to uncover abuses in retirement plan arrangements, including Roth Individual Retirement Arrangements. Taxpayers should be wary of advisers who encourage them to shift appreciated assets into IRAs or companies owned by their IRAs at less than fair market value to circumvent annual contribution limits.
4. Hiding Income Offshore Taxpayers have tried to avoid or evade U.S. income tax by hiding income in offshore banks and brokerage accounts. Recently, the IRS provided guidance to auditors on how to deal with those hiding income offshore in undisclosed accounts. Taxpayers also evade taxes by using offshore debit cards, credit cards, wire transfers, foreign trusts, employee-leasing schemes, private annuities or life insurance plans.
5. Misuse of Trusts While there are many legitimate, valid uses of trusts in tax and estate planning, some promoted transactions promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. Such trusts rarely deliver the promised tax benefits and are being used primarily as a means to avoid income tax liability and hide assets from creditors, including the IRS.
For more the full list of 2009 Dirty Dozen tax scams or to find out how to report suspected tax fraud, visit IRS.gov.
IRS Summertime Tax Tip 2009-08
Every year, The IRS releases its list of the top 12 tax scams and schemes. These scams - known annually as the Dirty Dozen - are illegal and can lead to problems for taxpayers who risk significant penalties, interest and possible criminal prosecution. Here are five scams from the 2009 Dirty Dozen list every taxpayers should be aware of this summer.
1. Phishing - Phishing scams often take the form of an e-mail that appears to come from a legitimate source, including the IRS, that contain enticements for the recipient such as additional money back on their previous year's tax return. Regardless of how official this e-mail may look and sound, the IRS never initiates unsolicited e-mail contact with taxpayers about their tax issues. The Internet-based scam artists use the personal information obtained through these e-mails and Web sites to steal the victim's identity, access bank accounts, run up credit card charges or apply for loans in the victim's name. If you receive an e-mail that you suspect is a phishing attempt or directs you to an imitation IRS Web site, please report them to the IRS at phishing@irs.gov. You can also visit the IRS Web site at IRS.gov and enter the keyword phishing for additional information.
2. Abuse of Charitable Organizations and Deductions - The IRS continues to observe the misuse of tax-exempt organizations. This includes arrangements to improperly shield income or assets from taxation and attempts by donors to maintain control over donated assets. The IRS also continues to investigate various schemes where donations are highly overvalued or the organization receiving the donation promises that the donor can purchase the items back at a later date at a price the donor sets.
3. Abusive Retirement Plans - The IRS continues to uncover abuses in retirement plan arrangements, including Roth Individual Retirement Arrangements. Taxpayers should be wary of advisers who encourage them to shift appreciated assets into IRAs or companies owned by their IRAs at less than fair market value to circumvent annual contribution limits.
4. Hiding Income Offshore Taxpayers have tried to avoid or evade U.S. income tax by hiding income in offshore banks and brokerage accounts. Recently, the IRS provided guidance to auditors on how to deal with those hiding income offshore in undisclosed accounts. Taxpayers also evade taxes by using offshore debit cards, credit cards, wire transfers, foreign trusts, employee-leasing schemes, private annuities or life insurance plans.
5. Misuse of Trusts While there are many legitimate, valid uses of trusts in tax and estate planning, some promoted transactions promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. Such trusts rarely deliver the promised tax benefits and are being used primarily as a means to avoid income tax liability and hide assets from creditors, including the IRS.
For more the full list of 2009 Dirty Dozen tax scams or to find out how to report suspected tax fraud, visit IRS.gov.
Tuesday, May 5, 2009
One Trillion Dollars
US National Debt
$11,046,247,657,049.48 (According to US Treasury Direct, 3/26/09)
The mounting US National debt, growing by billions every day, has recently topped the $11 trillion mark. If denominated in $1 bills, the cash would stack as high as the tallest building in the world, the 2683.7 foot Burj Dubai skyscraper… 1,474,918 times. At this height, it would create a block of bills with a base approximately twice the size of the Empire State Building's, which is just under the size of three American football fields.
If consolidated into a single stack of $1 bills, it would measure about 749,666 miles, which is enough to reach from the earth to the moon twice (at perigee), with a few billion dollars left to spare. If the amount was laid out, the area of the $1 bills would cover the state of Rhode Island three times over, and in $100 bills the amount would carpet about 3/4 the area of Washington DC.
It is also interesting to note that this number is approximately 13 times the amount of US currency in circulation, according to the Treasury bulletin, which lists the amount at $853.6 billion as of December 31, 2008.
Sunday, March 15, 2009
Is the recession bothering them?
Ranking the 25 highest-earning athletes in the U.S.
By Jonah Freedman, SI.com
Five years ago, Sports Illustrated first set out to find the 50 top-earning American athletes (taking into account on- and off-the-field income). We discovered a few basic facts, and as the Fortunate 50 turns five, some things have remained dead-on consistent:
No one can touch Tiger Woods, the runaway No. 1 for the fifth year in a row. Tiger's near $128 million haul is more than double his closest pursuer, Phil Mickelson at $62.4 million. As usual, hoops dominates the 50: More than half this year's list is made up of NBA players. There are 10 baseball players, seven football players, three NASCAR drivers, three golfers and one boxer -- and yet zero women.
Meanwhile, our International 20 list has seen a huge bump in average paycheck, thanks to the weak American dollar: 12 of the athletes earn their bread in foreign currencies from leagues outside the U.S. In the futures department, we tab the likes of Danica Patrick, Chris Paul and Joba Chamberlain to someday soon make the 50 in our Future Fortunates photo gallery.
As always, we limited our estimates to salary and winnings, endorsements and appearances, and then total. Candidates for the 50 had to be American citizens.
1 Tiger Woods Pro Golf
Last Year's Rank: 1 $22,902,706 $105,000,000 $127,902,706
With close to $800 million in total earnings on and off the course over his 13-year career, Tiger should become the first billion-dollar athlete in the next two years -- and he's still only 32. See Tiger's sponsors.
2 Phil Mickelson Pro Golf Last Year's Rank: 3 $9,372,685 $53,000,000 $62,372,685
Lefty's numbers jump thanks to an extra $2 million in FedEx Cup points in '07 and lucrative appearance fees for his first participation on the Asian Tour in Singapore and Shanghai. See Phil's sponsors.
3 LeBron James Cleveland Cavaliers (NBA) Last Year's Rank: 6 $12,455,000 $28,000,000 $40,455,000
King James has earned $167 million during his five seasons in the NBA, and has his eyes on serious entrepreneurship: He counts billionaire Warren Buffett as a role model and friend.
4 Floyd Mayweather Jr. Boxing Last Year's Rank: 21 $20,000,000 $20,250,000 $40,250,000
It's been a monster year for Pretty Boy, who made $20 million in purse and pay-per-view shares for his fight with Ricky Hatton and another $20 million for his foray into professional wrestling.
5 Kobe Bryant Los Angeles Lakers (NBA) Last Year's Rank: 5 $19,490,625 $16,000,000 $35,490,625
How's that for a change of tune? He once criticized his teammates; last month Bryant bought each of them $9,000 Swiss watches as a thank you for helping him win his first MVP award.
6 (Tie) Shaquille O'Neal Phoenix Suns (NBA) Last Year's Rank: 4 $20,000,000 $15,000,000 $35,000,000
Shaq finally unloaded his 2.5-acre Miami estate last fall after having it on the market for more than two years. The buyer? Miami-native (and No. 7) A-Rod, for a reported $27 million.
6 (Tie) Alex Rodriguez New York Yankees (MLB) Last Year's Rank: 11 $29,000,000 $6,000,000 $35,000,000
Assuming A-Rod plays out his new mammoth 10-year, $275 million deal, he'll have earned $445 million in base salary alone over the course of what would be a 24-year career.
8 Kevin Garnett Boston Celtics (NBA) Last Year's Rank: 7 $22,000,000 $9,000,000 $31,000,000
KG is the highest-paid of the Celtics' Big Three; at a total of $56.1 million in salary this season, the trio makes up 74 percent of the Eastern Conference champs' entire payroll in '07-08.
9 Peyton Manning Indianapolis Colts (NFL) Last Year's Rank: 12 $17,500,000 $13,000,000 $30,500,000
Hide the Lombardi Trophy. Football's leading endorser is still king of NFL pitchmen, but little bro Eli -- with whom he now regularly shares screen time in TV ads -- is creeping up fast.
10 Derek Jeter New York Yankees (MLB) Last Year's Rank: 8 $22,000,000 $8,000,000 $30,000,000
The Yankee captain cut a deal with the tax man in February that allowed him to avoid paying hundreds of thousands of dollars in back taxes on his $13 million Trump World Tower condo.
11 Dale Earnhardt Jr. Auto Racing Last Year's Rank: 10 $5,221,970 $22,000,000 $27,221,970
Maybe try one meeellion next time? Junior laughed off Eddie Gossage's $100,000 offer to race in the IndyCar series, calling him Dr. Evil: "His first estimate ... was a little underfigured."
12 Allen Iverson Denver Nuggets (NBA) Last Year's Rank: 11 $20,109,375 $7,000,000 $27,109,375
The Nuggets are reportedly willing to sign A.I. to a multi-year extension (for less money) if he opts out of the last year of his six-year, $71 million contract -- he'd earn $21.9 million in '08-09.
13 Kevin Durant Seattle SuperSonics (NBA) Last Year's Rank: NR $4,300,000 $21,650,000 $25,950,000
The 2007-08 Rookie of the Year will have to wait three more seasons for a giant contract, but his $7 million-a-year deal with Nike included a $12 million signing bonus.
14 Jeff Gordon Auto Racing Last Year's Rank: 16 $10,926,687 $15,000,000 $25,926,687
Despite a second-place finish in the NASCAR standings, Gordon collected a career-high in racing money in '07: $7.1 million in track winnings and another $3.3 million from the points fund.
15 Ben Roethlisberger Pittsburgh Steelers (NFL) Last Year's Rank: NR $22,700,000 $2,500,000 $25,200,000
It's the gift that keeps on giving. Big Ben rakes in $20.2 million of his $25.2 million signing bonus during calendar-year '08; the rest is due next season, plus a $3 million roster bonus.
16 Dwyane Wade Miami Heat (NBA) Last Year's Rank: 40 $13,041,250 $12,000,000 $25,041,250
D-Wade just raised the bar for sons everywhere: For Mother's Day, the Heat star bought his Baptist pastor mom, Jolinda, her very own church on the South Side of Chicago.
17 Tracy McGrady Houston Rockets (NBA) Last Year's Rank: 13 $19,014,187 $6,000,000 $25,014,187
T-Mac is reportedly looking to graduate from his 18,000-square foot home in suburban Houston, which boasts seven bedrooms, 8½ bathrooms, an elevator, a boat dock and an indoor court.
18 Carmelo Anthony Denver Nuggets (NBA) Last Year's Rank: NR $13,041,250 $9,500,000 $22,541,250
Construction got underway last month on the Carmelo K. Anthony Basketball Center practice facility at Syracuse University, thanks to a $3 million donation from its famous namesake alum.
19 Tim Duncan San Antonio Spurs (NBA) Last Year's Rank: 18 $19,014,187 $3,500,000 $22,514,187
Duncan reportedly accepted $10 million less than what he was eligible for in his two-year, $40 million extension signed in October so the Spurs would be able to chase free agents.
20 Manny Ramirez Boston Red Sox (MLB) Last Year's Rank: 20 $20,000,000 $2,500,000 $22,500,000
The World Series champs have a $20 million option on the enigmatic Manny for the '09 season; if they decline it, they'd have to deal with his new agent: infamous hardballer Scott Boras.
21 Michael Finley San Antonio Spurs (NBA) Last Year's Rank: 19 $21,698,750 $500,000 $22,198,750
The only active player who's still under the same contract from 2005's "amnesty clause," Finley earned $18.6 million this season from the Mavericks in addition to $3.1 million from the Spurs.
22 Dwight Howard Orlando Magic (NBA) Last Year's Rank: NR $6,061,273 $15,500,000 $21,561,273
Howard makes his debut thanks to a heavy bonus from his multi-year deal with Adidas; his salary jumps to $13 million next season, the first of his five-year, $85 million extension.
23 Jason Giambi New York Yankees (MLB) Last Year's Rank: 19 $21,000,000 $500,000 $21,500,000
So was he worth all that dough? Giambi, in the final year of his $120 million deal with the Yanks, has never matched his 2000 AL MVP numbers during his seven seasons in pinstripes.
24 Jason Kidd Dallas Mavericks (NBA) Last Year's Rank: 25 $19,728,000 $1,500,000 $21,228,000
Re-acquiring the All-Star point guard gave Mark Cuban the highest payroll in the NBA this past season ($105 million) and puts him on the hook for Kidd's $21.4 million salary next year.
25 Stephon Marbury New York Knicks (NBA) Last Year's Rank: 26 $19,012,500 $2,000,000 $21,012,500
The honeymoon between Steph and his hometown team is long over, but he's a huge asset as a tradeable, expiring contract next season, the last of his four-year, $77 million deal.
By Jonah Freedman, SI.com
Five years ago, Sports Illustrated first set out to find the 50 top-earning American athletes (taking into account on- and off-the-field income). We discovered a few basic facts, and as the Fortunate 50 turns five, some things have remained dead-on consistent:
No one can touch Tiger Woods, the runaway No. 1 for the fifth year in a row. Tiger's near $128 million haul is more than double his closest pursuer, Phil Mickelson at $62.4 million. As usual, hoops dominates the 50: More than half this year's list is made up of NBA players. There are 10 baseball players, seven football players, three NASCAR drivers, three golfers and one boxer -- and yet zero women.
Meanwhile, our International 20 list has seen a huge bump in average paycheck, thanks to the weak American dollar: 12 of the athletes earn their bread in foreign currencies from leagues outside the U.S. In the futures department, we tab the likes of Danica Patrick, Chris Paul and Joba Chamberlain to someday soon make the 50 in our Future Fortunates photo gallery.
As always, we limited our estimates to salary and winnings, endorsements and appearances, and then total. Candidates for the 50 had to be American citizens.
1 Tiger Woods Pro Golf
Last Year's Rank: 1 $22,902,706 $105,000,000 $127,902,706
With close to $800 million in total earnings on and off the course over his 13-year career, Tiger should become the first billion-dollar athlete in the next two years -- and he's still only 32. See Tiger's sponsors.
2 Phil Mickelson Pro Golf Last Year's Rank: 3 $9,372,685 $53,000,000 $62,372,685
Lefty's numbers jump thanks to an extra $2 million in FedEx Cup points in '07 and lucrative appearance fees for his first participation on the Asian Tour in Singapore and Shanghai. See Phil's sponsors.
3 LeBron James Cleveland Cavaliers (NBA) Last Year's Rank: 6 $12,455,000 $28,000,000 $40,455,000
King James has earned $167 million during his five seasons in the NBA, and has his eyes on serious entrepreneurship: He counts billionaire Warren Buffett as a role model and friend.
4 Floyd Mayweather Jr. Boxing Last Year's Rank: 21 $20,000,000 $20,250,000 $40,250,000
It's been a monster year for Pretty Boy, who made $20 million in purse and pay-per-view shares for his fight with Ricky Hatton and another $20 million for his foray into professional wrestling.
5 Kobe Bryant Los Angeles Lakers (NBA) Last Year's Rank: 5 $19,490,625 $16,000,000 $35,490,625
How's that for a change of tune? He once criticized his teammates; last month Bryant bought each of them $9,000 Swiss watches as a thank you for helping him win his first MVP award.
6 (Tie) Shaquille O'Neal Phoenix Suns (NBA) Last Year's Rank: 4 $20,000,000 $15,000,000 $35,000,000
Shaq finally unloaded his 2.5-acre Miami estate last fall after having it on the market for more than two years. The buyer? Miami-native (and No. 7) A-Rod, for a reported $27 million.
6 (Tie) Alex Rodriguez New York Yankees (MLB) Last Year's Rank: 11 $29,000,000 $6,000,000 $35,000,000
Assuming A-Rod plays out his new mammoth 10-year, $275 million deal, he'll have earned $445 million in base salary alone over the course of what would be a 24-year career.
8 Kevin Garnett Boston Celtics (NBA) Last Year's Rank: 7 $22,000,000 $9,000,000 $31,000,000
KG is the highest-paid of the Celtics' Big Three; at a total of $56.1 million in salary this season, the trio makes up 74 percent of the Eastern Conference champs' entire payroll in '07-08.
9 Peyton Manning Indianapolis Colts (NFL) Last Year's Rank: 12 $17,500,000 $13,000,000 $30,500,000
Hide the Lombardi Trophy. Football's leading endorser is still king of NFL pitchmen, but little bro Eli -- with whom he now regularly shares screen time in TV ads -- is creeping up fast.
10 Derek Jeter New York Yankees (MLB) Last Year's Rank: 8 $22,000,000 $8,000,000 $30,000,000
The Yankee captain cut a deal with the tax man in February that allowed him to avoid paying hundreds of thousands of dollars in back taxes on his $13 million Trump World Tower condo.
11 Dale Earnhardt Jr. Auto Racing Last Year's Rank: 10 $5,221,970 $22,000,000 $27,221,970
Maybe try one meeellion next time? Junior laughed off Eddie Gossage's $100,000 offer to race in the IndyCar series, calling him Dr. Evil: "His first estimate ... was a little underfigured."
12 Allen Iverson Denver Nuggets (NBA) Last Year's Rank: 11 $20,109,375 $7,000,000 $27,109,375
The Nuggets are reportedly willing to sign A.I. to a multi-year extension (for less money) if he opts out of the last year of his six-year, $71 million contract -- he'd earn $21.9 million in '08-09.
13 Kevin Durant Seattle SuperSonics (NBA) Last Year's Rank: NR $4,300,000 $21,650,000 $25,950,000
The 2007-08 Rookie of the Year will have to wait three more seasons for a giant contract, but his $7 million-a-year deal with Nike included a $12 million signing bonus.
14 Jeff Gordon Auto Racing Last Year's Rank: 16 $10,926,687 $15,000,000 $25,926,687
Despite a second-place finish in the NASCAR standings, Gordon collected a career-high in racing money in '07: $7.1 million in track winnings and another $3.3 million from the points fund.
15 Ben Roethlisberger Pittsburgh Steelers (NFL) Last Year's Rank: NR $22,700,000 $2,500,000 $25,200,000
It's the gift that keeps on giving. Big Ben rakes in $20.2 million of his $25.2 million signing bonus during calendar-year '08; the rest is due next season, plus a $3 million roster bonus.
16 Dwyane Wade Miami Heat (NBA) Last Year's Rank: 40 $13,041,250 $12,000,000 $25,041,250
D-Wade just raised the bar for sons everywhere: For Mother's Day, the Heat star bought his Baptist pastor mom, Jolinda, her very own church on the South Side of Chicago.
17 Tracy McGrady Houston Rockets (NBA) Last Year's Rank: 13 $19,014,187 $6,000,000 $25,014,187
T-Mac is reportedly looking to graduate from his 18,000-square foot home in suburban Houston, which boasts seven bedrooms, 8½ bathrooms, an elevator, a boat dock and an indoor court.
18 Carmelo Anthony Denver Nuggets (NBA) Last Year's Rank: NR $13,041,250 $9,500,000 $22,541,250
Construction got underway last month on the Carmelo K. Anthony Basketball Center practice facility at Syracuse University, thanks to a $3 million donation from its famous namesake alum.
19 Tim Duncan San Antonio Spurs (NBA) Last Year's Rank: 18 $19,014,187 $3,500,000 $22,514,187
Duncan reportedly accepted $10 million less than what he was eligible for in his two-year, $40 million extension signed in October so the Spurs would be able to chase free agents.
20 Manny Ramirez Boston Red Sox (MLB) Last Year's Rank: 20 $20,000,000 $2,500,000 $22,500,000
The World Series champs have a $20 million option on the enigmatic Manny for the '09 season; if they decline it, they'd have to deal with his new agent: infamous hardballer Scott Boras.
21 Michael Finley San Antonio Spurs (NBA) Last Year's Rank: 19 $21,698,750 $500,000 $22,198,750
The only active player who's still under the same contract from 2005's "amnesty clause," Finley earned $18.6 million this season from the Mavericks in addition to $3.1 million from the Spurs.
22 Dwight Howard Orlando Magic (NBA) Last Year's Rank: NR $6,061,273 $15,500,000 $21,561,273
Howard makes his debut thanks to a heavy bonus from his multi-year deal with Adidas; his salary jumps to $13 million next season, the first of his five-year, $85 million extension.
23 Jason Giambi New York Yankees (MLB) Last Year's Rank: 19 $21,000,000 $500,000 $21,500,000
So was he worth all that dough? Giambi, in the final year of his $120 million deal with the Yanks, has never matched his 2000 AL MVP numbers during his seven seasons in pinstripes.
24 Jason Kidd Dallas Mavericks (NBA) Last Year's Rank: 25 $19,728,000 $1,500,000 $21,228,000
Re-acquiring the All-Star point guard gave Mark Cuban the highest payroll in the NBA this past season ($105 million) and puts him on the hook for Kidd's $21.4 million salary next year.
25 Stephon Marbury New York Knicks (NBA) Last Year's Rank: 26 $19,012,500 $2,000,000 $21,012,500
The honeymoon between Steph and his hometown team is long over, but he's a huge asset as a tradeable, expiring contract next season, the last of his four-year, $77 million deal.
How to become poor
10 ways to become (or stay) poor
1. Spend more than you make
Actually if you only do #1, you won’t have to worry about the other 9. This is the easiest way for anyone to become poor. It doesn’t matter if you make millions or hundreds each month, the same principle applies.
2. Lust after what you don’t have
3. Never give to anyone
4. Don’t pay attention to where you money goes
5. Get a loan for everything… cars, a new bedroom set, a vacation ***BONUS: use credit cards with a 25% interest rate!
6. Wait for the perfect time to start saving 7. Follow the crowd
8. Don’t worry about the little things, they don’t really add up 9. Invest your money in things that you know nothing about
10. Waste stuff - money, food, time.
1. Spend more than you make
Actually if you only do #1, you won’t have to worry about the other 9. This is the easiest way for anyone to become poor. It doesn’t matter if you make millions or hundreds each month, the same principle applies.
2. Lust after what you don’t have
3. Never give to anyone
4. Don’t pay attention to where you money goes
5. Get a loan for everything… cars, a new bedroom set, a vacation ***BONUS: use credit cards with a 25% interest rate!
6. Wait for the perfect time to start saving 7. Follow the crowd
8. Don’t worry about the little things, they don’t really add up 9. Invest your money in things that you know nothing about
10. Waste stuff - money, food, time.
Sunday, February 1, 2009
Banking problem solved by Johnny Miller
The NBC Golf Commentator Johnny Miller has a great philosophy. His theory is when you get in trouble the first thing you do is get out of trouble , i.e. if you knock it in the woods chip back to the fairway. Unless your Tiger Woods and can bend a two iron under a tree and over a water hazard to a nestled pin on a sand trip circled cantilevered green, take your medicine and move on. The problem with this whole banking imbroglio is that from what I can see none of the institutions are taking that advice. What we have are a bunch of 18 handicappers that have bought fancy clubs and have deluded themselves into thinking they can play from the back tees at Winged Foot." - Christopher Atayan
Saturday, January 31, 2009
Good Advice from Bill Gates
Love him or hate him, he sure hits the nail on the head with this!
Bill Gates recently gave a speech at a High School about 11 things they did not and will not learn in school. He talks about how feel-good, politically correct teachings created a generation of kids with no concept of reality and how this concept set them up for failure in the real world.
Rule 1: Life is not fair - get used to it!
Rule 2: The world doesn't care about your
self-esteem. The world will expect you to accomplish something BEFORE you feel good about yourself.
Rule 3: You will NOT make $60,000 a year right out of high school. You won't be a vice-president with a car phone until you earn both.
Rule 4: If you think your teacher is tough, wait till you get a boss.
Rule 5: Flipping burgers is not beneath your dignity. Your Grandparents had a different word for burger flipping: they called it opportunity.
Rule 6: If you mess up, it's not your parents' fault, so don't whine about your mistakes, learn from them.
Rule 7: Before you were born, your parents weren't as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you thought you were. So before you save the rain forest from the parasites of your parent's generation, try delousing the closet in your own room.
Rule 8: Your school may have done away with winners and losers, but life HAS NOT. In some schools, they have abolished failing grades and they'll give you as MANY TIMES as you want to get the right answer. This doesn't bear the slightest resemblance to ANYTHING in real life.
Rule 9: Life is not divided into semesters. You don't get summers off and very few employers are interested in helping you FIND YOURSELF. Do that on your own time.
Rule 10: Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs.
Rule 11: Be nice to nerds. Chances are you'll end up working for one.
Bill Gates recently gave a speech at a High School about 11 things they did not and will not learn in school. He talks about how feel-good, politically correct teachings created a generation of kids with no concept of reality and how this concept set them up for failure in the real world.
Rule 1: Life is not fair - get used to it!
Rule 2: The world doesn't care about your
self-esteem. The world will expect you to accomplish something BEFORE you feel good about yourself.
Rule 3: You will NOT make $60,000 a year right out of high school. You won't be a vice-president with a car phone until you earn both.
Rule 4: If you think your teacher is tough, wait till you get a boss.
Rule 5: Flipping burgers is not beneath your dignity. Your Grandparents had a different word for burger flipping: they called it opportunity.
Rule 6: If you mess up, it's not your parents' fault, so don't whine about your mistakes, learn from them.
Rule 7: Before you were born, your parents weren't as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you thought you were. So before you save the rain forest from the parasites of your parent's generation, try delousing the closet in your own room.
Rule 8: Your school may have done away with winners and losers, but life HAS NOT. In some schools, they have abolished failing grades and they'll give you as MANY TIMES as you want to get the right answer. This doesn't bear the slightest resemblance to ANYTHING in real life.
Rule 9: Life is not divided into semesters. You don't get summers off and very few employers are interested in helping you FIND YOURSELF. Do that on your own time.
Rule 10: Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs.
Rule 11: Be nice to nerds. Chances are you'll end up working for one.
Monday, January 5, 2009
Good thing you were invested in the U.S.
2008 will be a year that every investor would like to forget, but few ever will. The stock market had its worst year since 1931. But it wasn't just stocks, every asset class got pummeled. No one was saved from the relentless selling and decline in asset values.
And it certainly wasn't just in the U.S. Actually, the U.S. was one of the best performing markets. Many countries saw their markets experience even more dramatic declines. To wit:
* U.K.: -53.5%
* China: -65.2%
* Brazil: -58.2%
* Korea: -61.6%
* Russia: -74.3%
* Iceland: -97.3% (ouch)
And it certainly wasn't just in the U.S. Actually, the U.S. was one of the best performing markets. Many countries saw their markets experience even more dramatic declines. To wit:
* U.K.: -53.5%
* China: -65.2%
* Brazil: -58.2%
* Korea: -61.6%
* Russia: -74.3%
* Iceland: -97.3% (ouch)
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