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Showing posts from August, 2015

Why Can't I Deduct Those Losses: The Double or Quadruple Whammy of Your Losses in the Stock Market

Another Black Monday.  What do you need to know about stock market losses related to your taxes.
Limited Reduction of Income on Your Tax Return for This Year
The smoke is rising from his ears and he wants to know why he can't use his stock market losses to offset his income on his income tax return.  Yeah, it is a bad deal.  To add to salt to a festering wound you are limited to taking capital losses, like losses on your stock trades, up to a net of $3,000.  So net means you can use actual losses to offset any actual gains you had on trades this year plus up to $3,000 of losses.  When you have lost over $3,000 of value that is not enough.  


What about the rest of those actual losses?  You can carry those forward and use them in future years.  But remember those are only the actual losses.  


Actual Losses Only
Actual losses are losses from positions you have closed out of.  In other words losses from stock that you have sold.  If you still hold the stock, now a loss position but an acti…

The Sexy Way To Wealth

One of the best stories about wealth is from a high-flying friend back in the day and about his not so high-flying but wealthy dad.  My friend would make over a million dollars in a few years but had nothing to show for it.  However, the real story is the one he told me about his dad, who is a millionaire who never made over $50,000 a year.  His newly retired dad and his wife raised a few kids sent them to college and along the way accumulated over a million dollars in accessible funds.  How?

His dad followed a tried a true formula.  He saved money out of every paycheck and also put money into his retirement accounts.  Stop me if you've heard this before, but it does work and it is actually very powerful not only financially but personally.

Anything Worth Doing Is Difficult
In reality this strategy is difficult but so is anything worth doing.  The main deterrent is in the mind.  When you are young you want things and you want them now.  The problem is in waiting. What do you want…