| Tax Savings Strategies Sometimes Just Trying to Save Money on Taxes Costs You More By Suze
Orman It's about that time of year again, when every time I open the newspaper or turn
on the TV or even go on the internet I see articles with headlines blaring: TAX TIPS - HOW TO
SAVE MONEY ON YOUR TAXES! And I, just like you, will spend valuable time reading the same old
regurgitated yearly tax advice. Take this child credit, prepay that property tax, postpone the
bonus, fund your 401(k) to the max etc.
And what's so funny is that you read that advice, think about it for two seconds,
and then go right back into your financial tax coma and you continue on with your day. So the
question is - did that advice really help you? The answer - probably not.
This is not going to be your ordinary article on smart tax moves. I am going to
talk to you about the choices that I know you are currently making with your money simply to save
taxes and how those choices just may not be the best tax moves you could be making. So this
column is not about what to do about taxes. It is about how to make sure that what you are
already doing throughout your financial life, makes sense tax-wise.
Tax Deductions Are Not as Valuable as in the Past
The 2003 federal tax bill pushed income tax rates to their lowest level in decades. That's
great, but it means that the value of your upfront deductions is less valuable now than it
was in past years. Okay that is no big deal, for overall you are paying less. But let's
also think long-term. more...
Article also contains: - When to Invest in a 401(k) and When not To
- The Best and Easiest Tax Moves to Save for Your Future
- Your Action Plan
Popular Stupid Tax Strategies
The Most Popular Stupid Tax Strategy
I know this may sound like heresy, but the mortgage interest deduction
is the most overrated tax strategy in existence. I constantly hear
happy homeowners boasting about how much money they “saved”
with their mortgage interest deduction. Folks, you are really not
saving a dime. more...
Article also contains: - The Second Most Popular Stupid Tax Strategy
- Refunds Are a Sign You Have Screwed Up
- Capital Gains Tax
Suze Orman has been called “a force in the world of personal finance”
and a “one-woman financial advice powerhouse” by USA Today. She is the author of four consecutive New York
including The Road to Wealth.
Suze Orman, a
Certified Financial Planner Professional®,
directed the Suze Orman Financial Group from 1987-1997, served
as
Vice President of Investments for Prudential Bache Securities from
1983-87, and from 1980-83, was an Account Executive at Merrill Lynch.
Watch Suze every Saturday night on CNBC.
Check www.suzeorman.com
for TV listings.
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