The Money Tree in our Back Yard has Lost its Leaves. Another Tax Season has Passed – Yet Another Lies Ahead

ST. CROIX INSIGHTS

The Money Tree in our Back Yard has Lost its Leaves. Another Tax Season has Passed – Yet Another Lies Ahead

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC

When it comes to planning your retirement and the rest of your life, one of the biggest expenses we’ll all contend with in our retirement years is taxes – hands down.  Now, I’m not going down the path to say that we shouldn’t pay any taxes.  Sure in Utopia, that may work, but not here in the United States.

Tax Returns

When I review both my own tax return and my clients’ tax returns and I see how much they pay each year, I’m just astonished at the dollar amounts we pay in taxes. $30,000, $60,000, $100,000, or even more each year. I usually just ask them one question – do you believe you’re receiving the full value from your Government to the extent that you’ve paid in taxes? The typical responses are not surprising – a chuckle, followed by a stern NO.

Money Tree

Understanding Your Financial Goals, Objectives & Position require Financial Planning

I fully understand that we have infrastructure that needs to be maintained, we need to educate our children, protect our citizens, and we truly have fellow Americans that need our help. For that reason, I have no problem helping, and I’m happy paying my fair share.

“I know and can prove that if you pay attention to your money, you actually have more money than you think. ”

When is Enough Enough?

My question is – when is enough enough? When is it time to start holding our elected officials accountable to evaluate the who, what, where, and why of Government spending?  As a business owner, I have to be accountable. Shareholders/investors expect companies they invest in to evaluate their spending every day. And let me tell you, if I don’t make my clients money, I hear about it. So why is it we don’t have these expectations from our Government? Why can’t we expect our Government to have the same accountability that we do? Investors expect a rate of return on their money, so shouldn’t we start expecting a rate of return from our Government?

It just seems that we’ve reached the point in our society where this make believe government (because we’ve forgotten you and I are the government) has an unlimited checkbook, prints all kinds of money (we have $20 Trillion in our National Debt) and apparently has no impact on you and I. But the truth is, one day it will. And as your Financial Planner, I’m here to tell you it will. I hope what happened in Greece stays in Greece.

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We Blame The IRS, But We Have It All Wrong

ST. CROIX INSIGHTS

We Blame The IRS, But We Have It All Wrong

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC

It’s that Time of year

You and I get the pleasure of meeting with our CPA to determine how much to include in that ‘I Love You Letter’ to Uncle Sam in the form of our hard earned money. We blame the IRS, but we have it all wrong. Federal tax law begins with Internal Revenue Code, which is enacted by Congress. Congress sets the rules/playbook for your CPA, Financial Planner, and Estate Planning Attorney. I often wonder that if the play book wasn’t so complicated how many CPA’s, Attorneys, and Financial Planners would be employed to help comply with all these regulations?

 

As time goes on, taxation and regulations will continue to become more burdensome on all of us, including our children and our grandchildren. This isn’t a conservative or liberal, Democrat or Republican perspective, it’s the bottom-line that affects both you and me. It will have an impact on both the short and long term ability for us to plan our retirement and the rest of our lives. It’s impacting our incomes, investment accounts, medical insurance, Social Security, and the list could go on. It’s time for all of to pay attention, and not just at tax time.

Blaming the IRS

I suspect I’m no different then you, I’m happy to pay my fair share. But the checkbook isn’t unlimited for any of us- you, me and even Uncle Sam. I’ve yet to receive a ‘Thank You Letter’ for all the taxes I’ve paid in. How about you?

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Ask yourself- can my portfolio support my lifestyle in my retirement? 

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