RobinJerauld.com
Tax & Financial Planning for the Real World
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Is Your House a Good Investment?
A closer look at the numbers may surprise you. House prices in America rose by an annual average of only 0.4% in real terms between 1890 and 2004. A better way to think about your house is as an expense- one that, if you're lucky, will pay you a rebate when you're done with it.
What if Everything You Knew About Stocks Was Wrong?
We've all seen the popular chart showing how rich we would be if we had owned stocks "for the long run" over the last 80 years. But have any real people actually earned those returns? History doesn't owe us 10% per year.
The Trouble With IRA's, 401(k)'s and Other Retirement Plans
You are trusting the government not to change the tax rules when it gets into a fiscal crunch. Perhaps it won't, but have a backup to your qualified retirement plan just in case. Diversify your savings between retirement and non-retirement accounts.
Active vs. Passive Investment Management: Which is Better?
Despite what the mutual fund industry would have you believe, the actual track record of active investors is not impressive. Between 1984 and 2002 the S&P 500 index returned an average of 12.2% per year. According to a DALBAR study, the average equity investor earned annual returns of only 2.6% during this period, which was less than the inflation rate of 3.1%. The average equity investor would have done better in bank CD's, which paid an average of 5.8% over the period.
How to Save Money on Practically Everything
Index covering everything from automobiles to weddings.
A slew of practical tips on how to do it.
Quarter-Million Dollar Babies: The Cost of Raising Children
For 2004, the U.S. Department of Agriculture estimated that families making $70,200 or more per year will spend over $250,000 to raise a child through age 17.
How to Reduce the Chances of an Audit
Practical list to which I would add: 1) Be sure to include all income reported by third party payers (1099's, W-2's, etc.) as the IRS knows about it anyway, and 2) Instead of filing Schedule C, incorporate your business or form a partnership so you can report your income on Schedule E, which has much lower audit exposure. This site has a pretty good list as well, although their theory on extensions is an often debated one among CPA's.
A Happy Retirement Isn't For Sale
A happy retirement isn't all about money. People who wait until after retirement to develop new interests often don't. Don't confuse your career with your life.
Good overview of the basics. The right estate plan depends on several factors including your age, net worth and whether or not you are married and/or have children.
Checklist for Getting Your Financial Affairs in Order
Basic stuff, but take care of these items and you will be ahead of 99% of the population.
Why You Need Disability Insurance if You are Working
You are statistically more likely to become disabled by age 40 than to die. Half of all mortgage foreclosures are the result of a disabling injury or illness. How would you survive financially if you were no longer able to earn income? This article explains the basics of disability insurance and covers some common terminology.
Which Form of Entity Should You Choose?
Unfortunately there is no one-size-fits-all solution. The best form depends on your unique circumstances including what type of business you are in, what other income you have, and how many owners there are. Here are 20 questions to help you make the right choice.
Debunking the Nevada Incorporation Myth
You've seen the books, heard the radio advertisements and read the Internet articles promising all the benefits. Get the facts on why Nevada incorporation may not do you a whole lot of good.
Common Business Insurance Disasters
Explains the most common mistakes to avoid. Also check out the links on the left, including the checklist, good ideas, bad ideas, and tips & tricks.
Rational Criminals & The Economics of Law-Breaking
Want to decrease your chances of being robbed? Start thinking from the criminal's point of view.
List of all the greatest hits plus why they don't work.
Attempting to Hide Money Offshore
A great way to lose all your money. If you are going to hold money offshore, keep it with a well regulated bank or trust company such as Barclays or Credit Suisse.