Author Archives: TheWealthIncreaser.com

SEP-IRA versus SOLO 401k

Posted on by TheWealthIncreaser.com

 

Learn what the best choice is for your retirement future if you are a single employee at your company or you are a small company considering whether an SEP-IRA or a SOLO 401k is your best choice …

 

If you operate a small company or you are a single person owner–you may be deciding among a number of retirement plans to stash away money for your retirement years.  Trying to decide the best option can be a daunting task for those who are new at facing retirement options or have recently opened a business for the first  time.

 

In this discussion TheWealthIncreaser.com will present ways that you can make this sometimes grueling decision—less grueling and help put you on a path to enjoying your retirement  in the manner that you desire and provide you with more clarity so that anxiety will not play a role in your life as you build wealth for yourself and your family.

 

It is the desire of TheWealthIncreaser.com that you will use this page as a guide so that you can experience joy on the inside that will lead to your retirement portfolio and your conscience experiencing a smoother ride!

 

Retirement Plan Options:

 

Depending on your line of work there could be many retirement options available to you.

 

Some of the more common include IRA’s (many versions), 401k’s, 403b’s, SIMPLE IRA Plans (Savings Incentive Match Plans for Employees), SEP Plans (Simplified Employee Pension), SARSEP Plans (Salary Reduction Simplified Employee Pension), Payroll Deduction IRAs, Thrift Plans, RRB Plan (Railroad retirement Benefits Plan), Traditional Pension such as Defined Benefit Plans, Money Purchase Plans, ESOPs (Employee Stock Ownership Plans), Government Plans, 457 Plans, 409A Non-qualified Deferred Compensation Plans and other profit sharing options.

 

If you desire a more in-depth understanding of the various retirement types or you feel that a SEP-IRA or a SOLO 401k is not right for you—consider going to the following links to learn more about the retirement account that may be a better choice for you.

 

https://www.irs.gov/retirement-plans/plan-sponsor/types-of-retirement-plans-1

http://www.realty-1-strategic-advisors.com/retirement-and-personal finance

 

If you are a small operator, depending on your yearly income—you could be choosing among a number of options but in the end the choice of which “Retirement Plan Option” is best for most and possibly you as well—normally comes down to the choice between an SEP-IRA versus SOLO 401k as they both allow you to maximize your contribution limits and control your investment options better than other plans.

 

However, as a practical matter it is important that you look at and  appropriately analyze all options available to you and not just base your decision on how you feel or think or based on what others are doing.

 

You must analyze all retirement options to see where you will benefit most from a revenue, savings, tax and goal oriented perspective.  After thorough analysis (and possible professional advice) you can select a retirement vehicle that serves your future goals and allow you to maximize your savings and tax advantages on an annual basis.

 

SEP-IRA

 

A SEP-IRA allows you to make contributions that are capped at 25% of your income after a reduction for self-employment taxes.  A SEP-IRA is used by those who have a small firm and solo entrepreneurs as well.

 

SEP IRA contributions for sole proprietors, on the other hand, are limited to 20% of your net self-employment income (business income minus half of your self-employment tax), up to a maximum contribution of $54,000 for 2017.

 

SEP Contribution Limits (including grandfathered SARSEPs) controls what an employer can contribute to an employee’s SEP–IRA.  The amount cannot exceed the lesser of 25% of the employee’s compensation, or $53,000 (for 2015 and 2016, $54,000 for 2017).

 

Example: Lets say you are 52 years old and earned $60,000 in income after receiving your w-2 from your Limited Liability Corporation business in 2017.

 

Your total contributions would be capped at $15,000 for 2017!  

 

If you earned $144,000 your contributions would be capped at $36,000.

 

If you earned the maximum income for the year $270,000, your contributions to the SEP-IRA would be capped at $54,000.   The reason being that you have exceeded the contribution limit.

 

Can I make catch-up contributions to my SEP-IRA?

 

Because SEP IRA’s are funded by employer contributions only, catch up contributions  usually don’t apply because you as an owner (employer) would be making the contributions.

 

Catch-up contributions apply only to employee elective deferrals.

 

However, if you are permitted to make traditional IRA contributions to your SEP-IRA account, you may be able to make catch-up IRA contributions.

 

Compensation doesn’t include amounts deferred under a Section 125 cafeteria plan.

 

Compensation is limited to $270,000 in 2017 and $265,000 in 2015 and 2016.

  

SOLO 401k

 

A SOLO 401k allows you to stash away up to $18,000 in 2016 and 2017, or $24,000 in 2016 and 2017 if age 50 or over.

 

In addition, you can also use SOLO 401k’s to make ROTH 401k deferrals of after-tax money that you can withdraw tax free during your retirement years.

 

A Solo 401(k), (also known as a Self Employed 401(k) or Individual 401(k)), is a 401(k) qualified retirement plan that was designed specifically for employers with no full-time employees other than the business owner(s) and their spouse(s).

 

A one-participant 401k also goes by other names, such as solo-k, Uni-k, one participant k and possibly other names as well as they are becoming more popular.

 

Although unknown by many in the general public a one-participant 401(k) has been around for a while (early 2000’s) and is basically a plan covering a business owner with no employees or just their spouse–and have the same rules and requirements of any 401(k) plan!

 

Contribution limits in a one-participant 401(k) plan

 

In a SOLO 401(k) plan the business owner (you) are both employee and employer.

 

You must always realize that contributions can be made to the plan in both capacities and you as the owner can contribute both:

 

  • Elective deferrals up to 100% of compensation (“earned income” in the case of a self-employed individual) up to the annual contribution limit of $18,000 in 2016 and 2017, or $24,000 in 2016 and 2017 if age 50 or over; plus

 

  • Employer non-elective contributions up to 25% of compensation as defined by the plan

 

For self-employed individuals:

 

Total contributions to a participant’s account, not counting catch-up contributions for those age 50 and over, cannot exceed $54,000 (for 2017; $53,000 for 2016)

 

Example: Lets say you are 52 years old and earned $60,000 in W-2 wages from your S Corporation in 2017.  You deferred $18,000 in regular elective deferrals plus $6,000 in catch-up contributions to the 401(k) plan.

 

Your business contributed 25% of your compensation to the plan, $15,000.

 

The total contributions to your plan for 2017  that would be allowed is $39,000 with your maximum contribution for the year being $60,000 “if” you earned $144,000 in 2017 ($144,000 * .25 plus $24,000).

 

This would be  the maximum that you could contribute to the plan for Tax Year 2017.

 

If you had income from other sources and you participated in another 401(k) plan–your deductions would not be allowed and you would have to take corrective action.  By reading this discussion you now know that your limits on elective deferrals are by person, not by plan–meaning once you reach the limit–that’s it!

 

In essence, you must consider “the limit” for “all elective deferrals that you makes during a year”–regardless of source to ensure that you don’t exceed the limits and have to take corrective action–that could get costly!

 

Contribution limits for self-employed individuals

 

You must make a special computation to figure the maximum amount of  non elective (25% of your earned income) and elective ($18,000 in 2016 and 2017, or $24,000 in 2016 and 2017 if age 50 or over) contributions that you can make for yourself.

 

When figuring the contribution, compensation is your “earned income,” which is defined as net earnings from self-employment after deducting both:

 

  • one-half of your self-employment tax, and

 

  • contributions for yourself.

 

Testing in a one-participant 401(k) plan

 

A business owner with no common-law employees doesn’t need to perform nondiscrimination testing for the plan, since there are no employees who could have received disparate benefits.

 

The no-testing advantage vanishes if the employer hires employees. No matter what the 401(k) plan is called by a plan provider, it must meet the rules of the Internal Revenue Code.

 

If you hire employees and they meet the plan eligibility requirements, you “must include them in the plan” and their elective deferrals will be subject to nondiscrimination testing (unless the 401(k) plan is a safe harbor plan or other plan exempt from testing).

 

A one-participant 401(k) plan is generally required to file an annual report on Form 5500-SF if it has $250,000 or more in assets at the end of the year.

 

If you are a one-participant plan with fewer assets you may be exempt from the annual filing requirement.

 

Alternatives to a one-participant SOLO 401(k) plan and SEP-IRA

 

Other possible plans for a single business owner that might work for you depending on your business revenue and future goals include:

 

SEP

IRA

ROTH IRA

 

Conclusion

 

With a SOLO 401k you could contribute up to $54,000 for 2017 with a $6,000 catch-up provision if you are over age 50 (maximum contribution $60,000).

If you desire to establish a SOLO 401k you can go to: http://www.kiplinger.com/article/retirement/T001-C001-S003-set-up-a-solo-401k-with-low-fees.html

 

If you had annual income of $250,000 with a SEP-IRA you could contribute up to $54,000 for 2017.

If you desire to establish a SEP IRA you can go to: https://www.irs.gov/retirement-plans/establishing-a-sep

 

Be sure to consider other factors as well such as your years in business, when you plan to exit, tax ramifications now–and in your future, setup fees and administration fees, your anticipated future income, company growth and other factors that may be unique to you or the business that you operate.

 

You can choose to use an SEP IRA or SOLO IRA  if you are a sole proprietor, LLC or Limited Liability Company, S Corporation and possibly other legal structures that meet the IRS guidelines.

 

As you might expect the SEP IRA was once cheaper to set up and administer, however  that has now changed as many brokerage companies offer low cost SOLO-IRA setup and administering.  In addition, you must look at more than just  setup costs and the administrative fees as those are just a small piece in the overall puzzle toward your retirement goals.

 

Always keep in mind that SEP IRA contributions for sole proprietors, on the other hand, are limited to 20% of your net self-employment income (business income minus half of your self-employment tax), up to a maximum contribution of $54,000 for 2017.

 

You may have more investment choices with a SEP IRA as opposed to a SOLO 401k.

 

With a SOLO 401k you have the 25% employer contribution amount (non-elective deferral) based on your income minus the self-employment taxes–plus the elective deferrals and catch-up provision that would allow you to save more annually than a SEP IRA generally–depending on your income.

 

With both plans you would have to pay taxes on withdrawals, however at that time you might be in a lower tax bracket.  Both plans allow you to use the power of compounding to help you reach your retirement number.

 

Early withdrawals or tapping into  the account by you will result in serious tax penalties and vary depending on your age, years of contributions and whether an exception may apply.

 

Investments and Withdrawals basically follow the same guidelines that the IRS has set for IRA’s and 401k’s in general!

 

If you know that you will come out of the gate making $150,000 the decision as to the best choice will be much clearer for you.  However, if you come out of the gates slow and steady with your income increasing steadily from a low amount such as $20,000 in year one–$40,000 in year two and a steady upward trend an IRA SEP may serve your best interests during your early years.

 

In the end “proper analysis” and not just going on what you hear or see others doing –or what you feel will work is the real key.  It is the hope of TheWealthIncreaser.com that this discussion has at least provided you a starting point toward making your retirement dreams come true.

 

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25% of compensation as defined by the plan

How to Make Your Home Sell

Posted on by TheWealthIncreaser.com

PRICE, SMELL, LOOK OF HOME AND WORDS THAT MAKE YOUR HOME SELL…

 

Agent Thomas (TJ) Underwood

 

With the Home Buying Season in full swing TheWealthIncreaser.com thought that a helpful page that could help you prepare your home for the current market was in order.

 

In the end you must always remember that the right price, curb appeal, how your home smells along with what you (or your real estate agent) say about your home is critical if you desire to sell your home in a timely manner.

 

PRICING YOUR HOME

 

By pricing your home right–right from the start you help get your home sold faster and in a way that is more beneficial for all parties concerned.

 

It is important that you realize that the final listing (the price that you decide to sell with a real estate agent on the listing agreement) and selling price is your choice in the end.

 

However, if you decide to list too high—some real estate agents won’t take your listing because they know that the price is unrealistic and they know that an over-priced listing will have a negative effect on their reputation/brand and more importantly will not get you the sale that you desire.

CURB APPEAL

 

It is important that you realize that the exterior of your home determines if many potential home buyers will even want to enter your home, therefore it is important that your exterior is in the best position possible because potential buyers form an opinion of the value of your home based on the exterior.

 

If the exterior is not up to par in a potential home buyers mind—they will feel that the inside has been neglected even if it appears that there has been no neglect.

 

The curb appeal of your home is the first impression that a home buyer gets and it is important that the first impression is a positive one.  Many real estate agents often preview a home prior to showing the home and in some cases just a drive by is done—because they realize that if the curb appeal does not meet the standards of their buyer they won’t even enter the house.

SMELLS OF YOUR HOME

 

The hard reality is that the smell of your home plays a larger role in successfully selling your home than most home sellers realize.  The “sense of smell” is very important to almost all buyers as it is a sense that goes to the brain immediately and affects the brain immediately (creates a positive or negative experience) in most potential home buyers mind.

 

Use one of the following scents to help neutralize odors in your home.  Multiple combinations don’t seem to work as well as just one scent based on experience that Realty 1 Strategic Advisors has had over the years while assisting home sellers.

 

Cinnamon or Cedar

Lemon

Orange

Vanilla

Extract of Pine or Basil

 

Prior to putting your home on the market for sale be sure to:

 

  • Wash all bed covers and wash or dry-clean drapes

 

  • Clean windows and blinds thoroughly–replace if necessary

 

  • Clean bath and kitchen areas thoroughly–including sinks, tubs and trash compactors

 

  • Have the carpet and ventilation system cleaned or, if necessary, replaced

 

  • Mop hard-surface floors with a lightly scented or unscented cleaner mentioned above

 

  • Scrub the bathrooms top to bottom, again being careful to use lightly scented cleaners or to allow time for the room to air out prior to putting your home on the market

 

  • Store old shoes in plastic boxes with lids and store other items in storage if clutter is an issue in the presentation of your home to potential home buyers

 

  • Wash pet and pet bedding thoroughly

 

  • If possible, move pet items and litter boxes to a garage or other area that is away from the main living areas

 

  • Clean walls, baseboards and ceilings–paint if necessary but allow house to air out the paint smell prior to putting your home on the market

 

  • Clean ceiling fans, chandeliers and lighting fixtures

 

 

When you are trying to sell your home for the best price in the least amount of time you want to create an atmosphere that says to the potential buyer upon entry that the scent in the home is familiar but not too overbearing.

 

When preparing a home for sale, homeowners (you if you desire to sell at this time at the best price possible) need to remove or clean the sources of any bad smell – including trash, cooked food, dirty home appliances, clothing and shoes, pets, smoke and mold – even un-cleaned air vents can cause potential home buyers to frown.

 

MARKETING OF YOUR HOME

 

By stating that you have a fenced backyard, a split floor plan, a master  bedroom on the main level, a split bedroom or floor plan on the main level, laminate or hardwood flooring, an updated kitchen, a finished basement, a home that is move in ready, a home that has recently had landscape improvements, a home with an open floor concept, a home that is single story with no steps, a home that has a natural daylight environment, a  home that has a kitchen foyer, a home that has stainless steel appliances, a home that has vaulted or high ceilings, and/or any other highly descriptive details that apply to your home that gives a potential home buyer a better mental picture of your home–that will “aid in the showing” and “ultimate selling” of your home in the current market.

 

Fenced yards, quartz counter-tops, and flooring with natural stone tile is very popular for homes priced 250 thousand dollars and up.  For luxury homes–golf course, gourmet kitchen, acres, two stories, custom built, ceramic tile, formal dining room, large kitchen, granite counter-tops, first floor etcetera are popular buzzwords that help homes sell at a more rapid pace.  However keep in mind that the higher end homes are taking longer to sell in most markets across the United States.

 

A highly skilled selling agent will help you craft powerful word combinations and phrases that can help you get your home sold faster and at top dollar.

 

CONCLUSION

 

Prior to putting your home on the market AT THE RIGHT PRICE AND CREATING AN INVITING ENVIRONMENT FROM THE OUTSIDE (CURB APPEAL)  take the time to clean out your home in a thorough manner.  If you are not up to the task pay a cleaning company–it could be money well spent as you will normally more than recoup the amount spent when your home is sold.

 

By cleaning your home thoroughly it will help permanently remove scents in your home that might be of concern to home buyers. 

 

In addition it is just plain good living to clean your home regularly so that you can avoid stale or undesirable odors that can linger in the air–however if you don’t clean regularly you may not realize that the odors are lingering!  When you decide to use a fragrance–use one that can help neutralize odors without being overbearing.  Furthermore, by cleaning your home on a regular basis you help maintain and/or improve your and your family’s health.

 

In addition be sure you are aware of environmental concerns both inside and outside of your home!

 

Always keep in mind that the sense of smell is the “strongest of all of our senses” and it is important that you get this often overlooked area of preparing your home for sale–right.  Don’t run away potential buyers by having a home with a bad odor.  Help ensure that buyers will connect with your home by having the “sense of a bad smell” removed from their list of objections to your home.

 

Be sure to change the filters in your ventilation, heating or air conditioning system prior to putting your home on the market to help avoid allowing a smell to circulate in your ventilation system. This will not only deter lingering smells throughout your house, but it will help keep those systems working better and longer.

 

Also, check air vents and wall outlets as an odor source, because there may be a rodent, pest or something else in the wall that might be causing your home to smell.  As an added step make sure your attic is neat and in good order–clean or repair if needed.   In addition take a thorough look at your roof from inside the attic with a high beam flashlight to ensure that there are no water leaks or other obvious damage.

 

A pre-listing home inspection might also be a worthwhile investment depending on your property and your level of upkeep during your ownership.

 

Finally, realize that by using powerful word combinations to market your home–you can possibly put yourself ahead of the competition in your market and that could be the decisive edge that you need to get the showing and ultimate sale at  a competitive price that allows you to pursue your other goals that you have after your successful selling of your home.

 

While you can’t do anything about other homes going on the market for sale this year–“you” can take the steps mentioned in this discussion to help your home sell in a more timely manner–and at top dollar.

 

All the best to your timely home selling success…

 

 

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Vision & Wealth Building

Posted on by TheWealthIncreaser.com

Learn how seeing your wealth building future with more clarity helps you achieve more…

 

Did you know that your vision of the NOW, your vision of the HOW, your vision of the THEN and your vision of the WHEN provides you more clarity and helps you direct your financial future at a very high level?

 

Although not in a blogging mood, TheWealthIncreaser.com was presented with this uncanny and unusual topic with the speed of a bolt of lightning and the vision of this page was made clear in a manner that TheWealthIncreaser.com had to act.

 

In a similar manner that the inspiration to create TheWealthIncreaser.com came—so too did the inspiration or vision to create this page on this day occur!

 

Your Vision of the Present or What You Can do NOW Must be Made Clear Inside of Your Mind

 

Your precise understanding of where you are now at financially is a critical element to you achieving more in a timely manner during your lifetime.  You must know your monthly inflow and outflow of cash and you must know at this time if you have excess income (discretionary income) to work toward your vision of the future that you desire for yourself and your family.

 

If you are currently spending more than you take in on a monthly basis that must be corrected and you must see yourself making the right decisions as it relates to the monthly management of your finances.

 

You must know your current credit position NOW—and make improvements or adjustments where and if necessary!  You must know your “money management style” and do what you can do “at this time” to improve your money management as best you can and in as “comprehensive a way” as possible.

 

Your Vision of HOW You Will Achieve What You Desire in Your Future Must be Made Clear Inside of Your Mind

 

You must have a clear vision of the “steps that you need to take” or you must know within your mind how you will achieve the goals that you desire.  Will you put a written plan in place that will provide you more direction?

 

Will you approach the steps that you need to take in a sincere manner—or are you just kidding yourself?   You must have a serious approach and you must know how you will move toward taking the steps that you need to take.

 

Your Vision of Accomplishment Sets You Up for the THEN so that You Can Pursue Other Goals or Visions that You May Have

 

Once you achieve your goal or vision that you saw—will you come up with more inspiring goals or continue to pursue other goals that you already had in mind and committed to writing?

 

Once you begin achieving the goals that you saw in your mind on a number of occasions you can get momentum on your side and use that momentum to achieve more in a more definite way.

 

By Seeing Your Present & What You Can Do NOW, Knowing HOW You Will Do What You Need to Do and THEN Accomplishing What You Saw In Your Mind You Will Know WHEN You Can Achieve a Number of Goals and Live Out Your Life in a More Comfortable Manner

 

By putting it all together within your mind (knowing what you can do now, knowing how you will do what you will do now and accomplishing what you set out to accomplish on a number of occasions) you can know WHEN you can start enjoying life in the manner that you envisioned.

 

That yearly vacation that you always dreamed of, that vacation home that always seemed to be beyond your reach, the payoff of all of your creditors that you once only dreamed of—or many other goals that are “uniquely” your own, can now be accomplished in a possibly reasonable and realistic time frame because you took a committed look at the HOW and NOW and the THEN and WHEN as it related to your financial future.

 

CONCLUSION

You have the ability to know WHEN you can start enjoying life on your terms if you put together a written plan for success that you formulate (or formulate with others) at this time.

 

Your clear vision of HOW you will achieve at a higher level will give you added clarity that can “take away the stress of managing your finances more effectively” throughout your lifetime—possible.

 

It is the desire of TheWealthIncreaser.com that this page has provided you with some clarity as to how you can jumpstart the management of your finances and achieve at your highest level of excellence.

 

All the best to your new VISION for Success…

 

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Timing & Wealth Building

Posted on by TheWealthIncreaser.com

Learn why your thought process, intelligently attacking your finances, obtaining the right knowledge and putting in the required effort is critical for your success at this TIME…

 

Your point of view “at this time” is more important than your opinion when it comes to “TIME” management and effectively building your wealth!

 

Did you know that how you look at or see your future at this TIME–in large part determines if what you see will materialize in your future?

 

In this discussion TheWealthIncreaser.com will discuss how your mental focus and thought process is critical for your future wealth building success.

 

It is important that you act on the future goals that you want to see in your life, and it all starts with imagining that the future goals that you see will happen in “real time.”

 

How do you view your future at this TIME?

 

What are your daily Thoughts as it relates to your finances and your financial future?

 

Do you have an Intelligent view of the future for yourself and your family?

 

Do you have the Mental Working Knowledge that is needed to implement an effective plan of action on a consistent basis?

 

Are you willing to put in the required Effort at this time that can lead to more success for you and your family?

 

In the following paragraphs TheWealthIncreaser.com will show you ways that you can spend your TIME doing what can take you toward your future financial goals in a more timely and effective manner so that you can take control of your life and achieve at a higher level throughout your lifetime.

 

Thoughts

 

Intelligence

 

Mental Working Knowledge

 

Effort

 

The TIME is now for you to successfully change your habits for the better so that you and your family can achieve the dreams that you desire in any kind of weather (regardless of the season in your life).

 

You must plant seed (create powerful thoughts inside of your heart and mind), water (gain the preparation that is needed) and bear fruit (reach the powerful thoughts that you imagined inside of your heart and mind) in real time by taking the necessary action on a consistent basis!

 

Thoughts & Wealth Building

 

Your daily or constant thoughts are the birthplace for you to manage your credit and finances at a higher and more beneficial level.

 

You must think about how you can manage your credit and finances more effectively AND then put a written plan in place that will take you toward the goals that you have thought about.

 

You must have the preparation and knowledge of what you need to think about as it relates to your finances so that you can achieve the goals that you need—or desire to achieve.

 

Never underestimate the power of your daily thoughts and your dominant thoughts as they are the starting point for making something big happen—including building your wealth more efficiently!

 

Intelligence & Wealth Building

 

By intelligently looking at your wealth building goals on the front end (prior to making the wrong moves) you can proactively gain the knowledge that can make your wealth building efforts happen in a more stress-free environment.  It is critical that you dream big—and have every intention on reaching that big dream!

 

The environment that you create within your mind will determine if you are in a fertile or a desert environment.  By planting in fertile soil at this time you are intelligently planting (whoops–planning)  your future and enhancing your likelihood of success throughout your life when it comes to wealth building.

 

Mental Working Knowledge & Wealth Building

 

Your thoughts and your ability to intelligently understand your vision of your financial future in clear terms at this time–serves no real purpose if you do not have a system that allows you to formulate your thoughts into written plans that you will follow diligently until you reach your and your family’s goal(s).

 

You must put in action what you thought about in an intelligent manner.

 

That means worry, anxiety  fear, frustration, lack of effort and excuses must not be a part of your mindset.  By putting into action what you are sincerely trying to accomplish, you put yourself on a more definite path as you build wealth.

 

Effort & Wealth Building

 

It is very important that you realize that it will take increased effort to reach your goals!

 

You must have the physical, spiritual and mental endurance and you must realize that adversity may occur—however you must respond to adversity in a manner that will still move you forward.

 

Conclusion

Your understanding of your need for growth and of what you can do at this TIME means that you understand fully the importance of the following:

 

The role that the Thoughts that go through your mind on a daily basis have on your future outcomes–regardless of where you are from.

 

You know the importance of Intelligently attacking your finances and using “your imagination” in more creative ways–and in ways that can lead you toward success in a real way–starting today.

 

You know the necessity of why you must gain the Mental Working Knowledge that is needed that will allow you to achieve at a higher level and truly reach the higher end of the spectrum as far as applying what you know–so that you can achieve results that will show.

 

You realize that it will take increased Effort on your part–if you desire to achieve at your highest level of excellence and reach the goals that will serve your and your family’s best interest–and sincerely get you off on the right start.

 

It is important at this TIME that you manage your “TIME” in as an effective manner as possible.  You must not do like others who seek the easy way out, are lackadaisical or lazy toward the management of their finances and/or life or show indifference toward their finances or think it is someone else’s responsibility to manage their finances.

 

All of the above “negative actions” operate against the effective management of your TIME and the ultimate success that you can attain during your lifetime and make reaching the “ultimate success” that you desire far more difficult than it should be.  It is critical that you fully understand that the “time” to begin “effectively managing” your finances—and time—will never be to your liking!

You must jump into the “personal management of your finances” at this TIME if you are one who seeks the easy way out, have been lazy toward your management of your finances, have or currently take an indifferent attitude toward the management of your finances—or you display any other negative quality as it relates to learning a more effective way of managing your finances.

 

If you are one who desire more success in your future you must obtain more of the right knowledge that will take you in the right direction and toward a more definite path toward success!

 

With the right mindset and an effective plan of action—along with your willingness to take the necessary action on a consistent basis, you can work toward reaching your goals in a more timely manner and do what you enjoy doing on a daily basis–or doing what you were really put on earth to do.

 

All the best to making your TIMELY dreams come true…

 

Now that you know all of the above it is the desire of TheWealthIncreaser.com that you will take action and achieve success at a level that is your absolute best…

 

The TIME is now–for you and not just others–to say WOW…

 

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2017 Home Buying Season Tips for Success

Posted on by TheWealthIncreaser.com

Learn how you can make your home purchase a more successful and enjoyable experience…

 

Money.com/how-much-house-can-I-afford…

 

As the 2017 home buying season kicks in, TheWealthIncreaser.com thought that a helpful page to help those who are entering into the home buying arena for the first time was an appropriate topic of discussion that could help many aspiring homeowners make good decisions in the home buying process that could put the power of a home purchase in their hands—and not in the hands of creditors and others who have no real concern for their and their family’s future.

 

Where do I start in the home buying process?

 

As a potential homeowner your first step is to look within and determine if purchasing a home will serve your best interest on a number of fronts.

 

Do you know and understand your responsibilities as far as owning a home is concerned?

 

Are you ready to pay homeowner’s association fees, homeowners insurance, taxes, lawn maintenance, home upkeep and confront all of the potential emergency situations that may arise during your period of homeownership?

 

The above as well as other questions must be answered satisfactorily by you!

 

You can more readily determine your readiness for “your” home purchase from a mental and financial perspective by doing a pre and post home purchase analysis at this time to determine if you have the financial strength on a monthly and annual basis for homeownership that puts you in control—and keeps you in control!

 

You must know what to expect upfront in the home buying process…

 

You must know that there are a number of loan options available and you must know your housing ratio and your housing versus debt ratio on the front end to help you readily determine if you are financially capable of handling the home purchase and other debt that you will carry on a monthly basis.

 

You must know the importance of creating a properly funded emergency fund now or soon after your home purchase and you must know and understand fully why doing so protects you and your family from future financial risks—therefore helping to ensure that you significantly increase the odds that you can maintain and keep your home.

 

Types of Loans Available

 

It is important that you realize that home loans generally fall into two categories—Government Backed and Conventional. 

 

Government backed include FHA (3.5% down payment required by you or gift of same amount from someone else), VA (0% down payment but funding fee requirement that can be financed into the loan) and USDA (loan for rural areas in the United States).  Government backed FHA loans will generally have a MIP or mortgage insurance premium added to the monthly payment if you put less than a 20% down payment.

 

Conventional are issued by non-governmental companies (private loan companies, credit unions and large banks) and they come in many forms such as ARM or adjustable rate mortgage, fixed rate and many other creative options that are available depending on the company offering the loan.  Conventional loans will generally have a PMI or private mortgage insurance premium added to the monthly payment if you put less than a 20% down payment.

 

You must have working knowledge of the Home Buying Process…

 

You must know that you will have to bring an Earnest Money Deposit at the time of your offer contract to show your seriousness of intent to purchase your home (process varies from state to state so check with your agent) and it will be credited at closing toward your closing costs and/or purchase price if you ultimately purchase the property.  Always realize that closing costs and other special stipulations in your offer contract are negotiable between you and the seller, therefore you want to choose a competent real estate agent to represent your and your family’s  financial interests.

 

You will also have to perform a home inspection (generally costs several hundred dollars or more and includes HVAC, Plumbing, Roof, Water Heater and Structural Areas etc.), a termite inspection, a radon inspection, a lead-based paint inspection (for homes built prior to 1978) and possibly other inspections depending on the community in which you purchase your first home.

 

If the home that you are considering for purchase needs renovation–you may be able to use an FHA 203K Renovation Loan or a Fannie Mae Renovation Loan to make your purchase and repairs more manageable!

 

In addition be sure to budget for appliance repair and/or replacement and consider a home warranty.

 

Be sure that you are aware of environmental concerns in the area that you are considering for your home purchase.  You may also need to do additional inspections at additional cost such as pool system, or other inspections based on the features of the home and property.

 

In addition, your property must appraise for the purchase price, otherwise you may have to bring additional cash to closing or re-negotiate the terms of settlement.

 

Your lender will also require that Title Insurance is purchased for their protection and you want to be sure to purchase a policy for yourself and your family’s protection as well.   By doing so you reduce your risk of losing the property due to issues in the “chain of title” up to policy limits on the contract.  You also want to properly title your property with the right deed type—based on what is best for your and your family’s  future goals.

 

Depending on your state, the above fees and possibly other fees—will be paid at closing or paid outside of closing (POC) and you must budget for them or negotiate them appropriately on your home purchase contract.

 

In addition be sure to seriously consider getting a one year home warranty that covers many of the items mentioned above.  You can start by trying to negotiate for the seller or your real estate agent to pay for the one year home warranty coverage.  If unsuccessful with those options consider purchasing a one year home warranty policy yourself to protect yourself and your family for the first year of ownership.

 

A properly funded emergency fund—in combination with the one year home warranty will help ensure a more pleasurable home ownership experience for you and your family.

 

In addition, if major systems such as HVAC, Water Heater, Appliances etcetera are more than 10 years old consider having them replaced or at least properly serviced prior to closing–and doing one and/or both can be negotiated in the contract (purchase price might increase but you would have more peace of mind by having a new system or possibly know the remaining life if the system has been recently serviced).

 

Lease Purchase Option

 

With many consumers suffering from poor credit as a result of the massive financial downturn in 2008 and subsequent years many consumers are now pursuing other creative options to purchase their first home or rebound after the loss of a home they once owned or had a mortgage loan on.

 

A lease option or rent to own allows someone with poor credit the option to purchase a home in the future (usually 12 to 24 months into the future) at an agreed upon price.

 

The 12 to 24 month period is usually allowed to give the purchaser time to improve their credit so they can get a loan—or get a loan at a better rate.   In many instances the property can be titled and deeded in the name of the person(s) who is leasing to own and the purchaser (and all parties involved) signs off at closing that they have the option to purchase if done so within the period outlined in the closing documents at an agreed upon price.  If you exercise the lease purchase option in the future the property will then be fully titled and transferred in your name(s).

 

In addition, a lease option can take on many other forms and variations.  It is you (the person who enters into a lease purchase option) who must weigh the pros and cons if you sincerely pursue this homeownership option.

 

Although TheWealthIncreaser.com believes that an intelligent, consistent and proactive approach in which you get your credit and finances in order on the front end is more appropriate, a lease with option to purchase may be appropriate for some.  Be sure to make it a win-win situation for all parties involved or at the very least—a winning situation for you and your family by doing your due diligence about lease purchases on the front end.

 

Conclusion:

 

Your successful home purchase begins with you determining that the home purchase that you are considering is really what you want, knowing the costs associated with your home purchase and home ownership (maintenance), knowing that you purchased in a stable and appreciating (although no way to know for certain due to forces outside of your control) area, knowing that the amenities that you desire are in close proximity, knowing about environmental concerns near and around the home that you are considering for purchase—and any other factor(s) that may be of concern for you and your family.

 

Also realize that a cash purchase and other creative ways to purchase your home is always an option.  What has been presented in this discussion is the “most common and effective ways” that you can purchase your home that allows you to use the tax code and a low down-payment to possibly build wealth.

 

Those (Mortgage Lenders) who originate, process and underwrite your loan for your home purchase mainly want to see that you are willing to pay based on your credit profile—and you have the ability to pay based on your current income!

 

You can determine if you meet both tests yourself—upfront by creating a monthly cash flow statement at a minimum and having a mastery of your credit at this time.

 

By knowing your monthly income and housing ratios as it relates to your home purchase and having a working knowledge of your credit and credit score you will put yourself well ahead of most 1st time home buyers—or any home buyer.

 

By knowing that you will have to put up earnest money, come up with a down payment and pay costs both inside and outside of closing (i.e. home inspection, insurance, have 3 to 4 months of escrow or your monthly housing payment in your bank account at or after closing etc.) you set your mind up for what is expected and you help reduce your stress levels now and in your future—significantly.

 

The closing process time frame involving lenders from the time of your application to closing is normally 30 days (short end of spectrum) up to 60 days (long end of spectrum) and will vary based on the lender and the type of loan that you select.

 

You will also have a 3 Day Review Period after you see your settlement or closing cost totals and you can use that period to challenge what you don’t like and/or get additional clarification.

 

You can also use a proactive approach to compare loans when loan shopping as well.  In addition,  you must realize that a home loan pre-approval gives you more negotiating power than a home loan pre-qualification in most cases.

 

Also be aware of your due diligence period and any special stipulations in the contract.  Once the contract is accepted and you meet the lending criteria and inspection contingency there may be no turning back.  Always have an approach to learning that gives you the clarity that you need to succeed prior to engagement–thereby turning the tide on who is most prepared!  Be sure to use the glossary of finance and real estate terms to enhance your understanding of this page, real estate and personal finance in general.

 

It is imperative that you fully understand–or overstand (this cannot be misunderstood by you) upfront that if you see the house that you want and you are eligible for financing and the inspection contingency is met along with all of the other stipulations that are spelled out–closing must proceed–otherwise there will be major consequences as a result of not closing for any reason that is not explicitly spelled out in the contract.

 

Down Payment, closing costs, taxes, insurance and other settlement related fees can push closing and other related costs in the 3% to 5% range (or possibly higher) of the purchase price depending on your state and local jurisdiction, how you (or your agent) negotiate closing costs and the type of loan that you choose.

 

Always remember that even though closing costs are negotiable you as the purchaser want to be in the driver’s seat–meaning you want to make the first gesture at the time of the offer contract as to what percentage you are willing to pay.

 

Also realize that many lenders use a 12 month bank statement for VOR or Verification of Rent in the underwriting process instead of relying on a statement from your leasing office stating that you have paid your lease in a timely manner during your lease period.  You can thank the financial turmoil of the past decade for this and other home loan tightening guidelines as it relates to your home purchase.

 

After your loan is underwritten and closing occurs your lender will wire the funds at closing to the seller and/or attorney depending on your state (and/or mortgage company if an outstanding loan exists) and you will be expected to bring the down payment amount along with settlement fees (bank certified check or what form of payment is customary in your state) that you agreed to (minus your earnest money deposit that you put up in the offer contract) to the closing–plus a small cushion that will generally be refunded to you in most states.

 

If all of the above goes smoothly—the keys to entry, closing documents along with your new home will be your responsibility and you will be in position to enjoy your new home.  Your home purchase will be recorded at the local, county and/or  state level depending on your jurisdiction letting the world know that you are on your way toward true ownership (ownership without owing anyone) with each payment that you make!

 

It is the desire of TheWealthIncreaser.com that you will take a sincere approach and apply what you now know–to achieve results that will truly show…

 

All the best to your home purchase success…

 

MORTGAGE CALCULATOR…

 

Lending Patterns in the United States...

 

Other Helpful Calculators…

 

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College Graduates & Credit Building

Posted on by TheWealthIncreaser.com

Learn why “College Graduates” should “Build their Credit ” in as effective a manner as possible…

 

With the high school and college graduation season kicking into full bloom the creator of TheWealthIncreaser.com thought that a helpful page to get students who are transitioning from the educational world to the working world a real opportunity to attain success in the management of their credit and finances—was a timely topic to focus on.

 

In this discussion TheWealthIncreaser.com will present helpful tips and actions that those who are—or will soon be entering into the employment community can do to manage their credit and finances more effectively.

 

Set Up a Financial Management System

 

As a new entry into the workplace you must have a financial management system starting with setting up your own checking and savings account if you have not done so already.  You must not overdraw your account by writing checks or spending in a random fashion without knowing your account balances.

 

You must establish an emergency fund early in your life stage so that you can put yourself in position to manage your credit and finances optimally throughout your lifetime.

 

You must also get a credit file started  (or continue to improve your current file) if you  anticipate the need to effectively utilize credit now or  in your future.  Establish several credit cards in your own name and/or get added to a card or two on your parents credit card account(s) and within six months or so you will begin generating a credit file.

 

An auto loan could also help start the process of building your credit file.  Hopefully you graduated without student loan debt, however if you were unable to avoid that debt—that too could help you generate a credit file and help you establish or manage your credit more effectively.

 

Be sure to use your credit cards responsibly and pay off the balance in a timely manner…

 

You don’t want to over extend on your credit card usage or have too many credit cards.   The right number depends on your future goals, your current cash flow position and how effectively you manage your credit—and overall finances!

 

You must have a system (and personality) that allows you to pay off your debt (monthly bills) in a timely and consistent manner.

 

Whether you set up bill pay or you decide to pay by written checks (or if you do a combination like TheWealthIncreaser.com does) you must know your monthly and annual inflow and outflow of cash.  By knowing this information you can quickly determine if you need to cut expenses, get more income—or do a combination of the two.  In addition, you want to get into a habit of “periodically obtaining a copy of your credit file” to verify the accuracy and see where and if you can make improvements.

 

How to Order a Credit Report

 

You may order your credit reports at no cost once per year from the three major credit reporting agencies by going to www.annualcreditreport.com.

 

In order to see your entire credit history,  you should review the records from “each” of the major credit bureaus or agencies:

 

Transunion—West and Midwest focus originally but nationwide now

Equifax—South and Eastern focus originally but nationwide now

Experian—Western and Southwestern focus originally but nationwide now

 

If you live in Los Angeles, Transunion and/or Experian may have a more complete file on you while Equifax  may be missing several accounts that you may have.   If you live in Atlanta, Equifax may have a more complete file on you while Transunion and Experian may be missing several accounts that you may have.

 

In some cases all three credit agencies may have the same number and type of creditor(s) on file…

 

However, the only way for you to know “with certainty” is to pull your own file from “each” of the credit agencies!

 

Don’t do like many who currently manage their credit do–fail to have a consistent plan of action–and more importantly “fail to implement” a consistent plan of action when they do have an effective plan at their disposal.  You want to start off your credit building and life–by displaying the best qualities possible as you pursue your goals.

 

By reviewing your records from “each” of the major credit bureaus or agencies you get a better CAMERA shot of your overall credit profile.

 

Get the picture…

 

Again you can go to AnnualCreditReport.com to get your file from all three credit agencies.  You can go to MyFICO.com to obtain your actual credit score for a stated fee.

 

Always remember that you are also entitled to a free copy of your credit report within 60 days after being turned down for credit, employment, or insurance because of information supplied by TransUnion, Equifax or Experian.

 

What to Look for in Your Credit Report

 

You want to verify that your personal and credit information is correct! 

 

If errors are discovered you want to immediately report them in writing or do an online dispute to the agency in which you see the error(s).  After that follow up to ensure that the requested action was done by the credit agency  or agencies that you found the errors on.

 

Conclusion

 

You want to “enter the workplace” with the knowledge of what you need to do to manage your credit and finances in a proactive manner.  By focusing in at the earliest point in your “life stage” you can get a real jump on effectively managing your credit and finances in a manner that serves your best interest.

 

You will be in better position for your home purchase, your gym membership, the auto purchase of your dream, the vacation(s) of your dream(s), buying the latest technology products, saving for retirement, weekly entertainment and pursuing and achieving many other goals that will come along as you move along in life.

 

It is the desire of TheWealthIncreaser.com that you will take a serious look at your future at this time and decide to use a more intelligent, consistent and proactive approach as you journey towards your destiny or purpose for being while here on planet earth.

 

Congratulations on your graduate success…

Now is the time that you give it your best–since you have just passed your final test…

 

Use what you have learned in this discussion to forge a great future ahead…

By graduating this year TheWealthIncreaser.com knows that you are well read…

 

Go out into the world and change it for the better…

You now possess the tools that are necessary for doing so in any kind of weather…

 

All the best to your credit building and life success…

 

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Credit Management & Wealth Building

Posted on by TheWealthIncreaser.com

Learn why now is the time to take a fresh new look at your “credit management” from a different CAMERA lens…

 

Did you know that Credit Management is a vital step when it comes to Wealth Building?

 

Did you also know that effective credit management is a major part of reaching your overall financial and wealth building goals?

 

In this discussion TheWealthIncreaser.com will present what is significant as you embark on managing your credit and show you proven ways that you could possibly manage your credit better in the current economy.

 

A change in your attitude or a change in your money management personality can lead to a change in your financial behavior and take you toward your goals in a more effective and efficient manner.

 

You must expect success  and you must take the necessary action to attain that success whether it be managing your credit—or finances!

 

You can ENHANCE your future credit outcomes by seeing your future goals with more clarity and by “taking a picture” of your future with the right CAMERA lens.

 

Control

 

You must realize that you have control over your daily habits and you can change them for the better if you make a serious commitment to do so.  You control the amount of borrowing that you do, the number of creditors that you decide to engage with and many other factors related to your credit management.

 

You must leave excuses behind and start where you now are.  If you are new to credit you can learn how to do it right.  If you are not new to credit but would like more empowering tools to help you manage your credit more wisely—you too are on the right page.

 

Determine where you now are—credit wise—TODAY!  Put yourself in control—as that is the best WAY!

 

Action

 

Your wise management of your credit and  debt management activity is critical for your future success.  It is critical that you effectively utilize personal financial statements so that you can gain the added clarity and realistic expectations that are needed to take you where you desire to go.  It is “you” who must take action if you desire to manage your credit effectively throughout your lifetime.

 

You must activate debt management strategies that are proven and will get you the results that you desire.

 

Monitor

 

You must effectively monitor your debt payoff and debt pay-down efforts and make improvements and adjustments when necessary.  Whether you meet with a financial advisor or you manage your credit yourself you must have an effective and foolproof monitoring system that allows you to stay on track—or get back on track when your situation calls for that.

 

You may have to pull your credit report at designated intervals, use “credit resources” appropriately and challenge mistakes and errors on your credit reports and have them corrected—depending on where you now are.

 

Expect Success

 

You must have a thorough understanding of the Wealth Building Basics and you must have a positive mental attitude while you manage your credit and finances!

 

You must have the mental focus and clarity of vision so that you can achieve your goal(s) with precision.

 

By expecting success you open up your mind to more creative ways of reaching the success that you see—thereby increasing your odds of reaching “your destiny” or who you were truly meant to be.

 

Realistic Expectations

 

You must have a working knowledge of the 5 credit factors and know that a low score generally means you are irresponsible in your credit management while a high score generally means you have been responsible in your use of credit.

 

You must realize that once you get your first loan or credit card (or possibly added to another account as an authorized user) the clock starts as far as your credit management career goes.  After 6 months of activity your FICO score will be calculated—generally speaking.

 

By knowing and applying the “5 credit factors” you can control your outcomes (your FICO score) and get a “realistic picture” of how you will effectively manage your credit throughout your lifetime.

 

Attitude

 

Your attitude or how you see your future (including your financial future) and how you see and interact with others (including how you interact with your finances) is critical for your future success.  It is important that you have the right mindset as you manage your credit as by doing so you create the right environment for credit success and life success.

 

Take a picture of “your attitude” at this time and put in concerted effort (work) to move toward a better picture angle (a better personality and attitude) that exudes success in all that you do!

 

 Conclusion

Don’t be financially limited during your lifetime if you have a need or desire to utilize credit.

 

By looking at your future through “the right” CAMERA lens you can put yourself in position to manage your credit wisely throughout your lifetime and you can also put yourself in position to help others improve their credit as well.

 

Control

Action

Monitor

Expect Success

Realistic Expectations

Attitude

 

Doing all of the above as it relates to “your” CREDIT MANAGEMENT future will put you on a serious path to success in all areas of your finances throughout your lifetime.

 

Your retirement goals can be attained, your membership at your favorite fitness center can be achieved, your funding for your kids or grand-kids college tuition can be attained, your yearly vacation to the destination of “your” choice can be attained, that home purchase that you desire can be attained, however it all starts (or continues) with your effective management of your finances–including your credit management!

 

Effective credit management depends on you taking the time now to master the 5 credit factors so that you can achieve your goals throughout your lifetime.

 

You must optimally manage your monthly cash flow and make good choices by determining now whether you want to appropriately spend, appropriately save and appropriately manage (or consciously or sub-consciously inappropriately mismanage) your disposable and discretionary cash flow.

 

You can also take your credit knowledge as high as you want to by visiting “All About Credit” and really put yourself and your family in position for major success.  You can now choose how high—or low you want to take your credit knowledge—and your application of that knowledge!

 

Once you get your credit to where you desire that it be, effective management is rather easy as long as you pay on time and you keep your usage under 10%.  At that point you could look into reward cards and other perks that are offered by credit card issuers. 

 

A properly funded emergency fund will help ensure that you are in position “throughout your lifetime” to effectively keep your credit card debt at a minimal (or manageable) level.  In life, unexpected turns often occur when you are least prepared.  A properly funded emergency fund will put you in better position for success as you strive to give it your best!

 

This page and the links on this page will provide you with what you need to effectively manage your credit throughout your lifetime.

 

However, it is up to you to apply and take the necessary action on a consistent basis so that you can optimize your credit score and manage your credit in real time at a very high level.

 

All the best to your credit management success…

 

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Wealth Building Basics

Posted on by TheWealthIncreaser.com

Learn why the “TIME” is now to start Wealth Building in a more “Thought Provoking” manner…

 

Did you know that how you look at or see your future in large part determines if what you see will materialize in your future?  In this discussion TheWealthIncreaser.com will discuss how your mental focus and thought process is critical for your future Wealth Building success.

 

It is important that you act on your future goals that you want to see in your life and it all starts with a thought, imagining that “your” future goals that you create and want to see in real time will actually occur and having the “mental presence of mind and the right knowledge” that allows you to apply what you know consistently.

 

You must also realize that it will take major effort on your part to bring into existence a new and more rewarding future as you journey toward building wealth for yourself and your family!

 

Thoughts & Wealth Building

 

Your daily or recurring thoughts about what you desire to occur in your future is the starting point for you putting in place something big that can get you on a path to building wealth more efficiently.

 

You must think about your monthly income and expenses, think about whether you can save more effectively, think about whether you can manage your credit more effectively and think about whether you can manage all areas of your finances more effectively!

 

Your daily thoughts or dominant thoughts must be positive and uplifting—and by transferring your thoughts about your finances into a “written plan of action” you can activate your mind to achieve much more throughout your lifetime.

 

Imagination & Wealth Building

 

You must imagine a brighter future and you must see it happening!  It is imperative that you “dream big” and have every intention on reaching “your” big dream.

 

You cannot limit yourself by letting the thoughts of others, the opinion of others or the actions of others deter you from the future outcomes that you desire.

You have all of the tools (or you will soon have the tools) that are needed for you to achieve at a higher level and you must dream big to activate those tools at this time—or once you acquire the necessary tools that are now at this time “not in” your toolbox—or are at this time lying dormant in your toolbox.

 

Imagine a brighter future, put in the work to make it happen and build your wealth to a level that allows you to do what you really like to do (your life purpose) during your lifetime—starting today!

 

Mental Working Knowledge & Wealth Building

 

In TheWealthIncreaser.com’s opinion nothing is as disheartening as when empowering advice is presented in an empowering format—yet the person receiving the information fails to act when it is in their best interest to act.

 

There are varying reasons why those who choose not to act—fail to act!

 

Having seen this occur all too frequently over a number of years the creator of TheWealthIncreaser.com had to come up with a way that visitors could actually process meaningful personal finance and wealth building advice, easily carry it within their mind and more importantly—provide them the ability to apply what they had learned in a manner and at a time that served their best interest—not the best interest of creditors or others who had no real concern about their future.

 

If you desire to achieve “much more” throughout your lifetime it is imperative that you gain the “mental working knowledge” that will allow you to operate at a higher level on a daily basis!

 

Effort & Wealth Building

 

It is important that you realize at this time that effort will be required of you if you are sincere in making your wealth building dreams come true.

 

Your daily thoughts, your big imagination and your knowledge and understanding of “mental working knowledge” serves no real purpose if you have decided deep within your heart and mind (either consciously or sub-consciously) that you are not willing to put in the required effort—regardless of the roadblocks or adversity that you are now facing—will face or have faced in your past.

 

You must leave excuses behind and look forward and understand fully that it will take increased effort on your part as you venture on your fresh start.

 

Conclusion

The T I M E is now for you to successfully change your habits for the better so that you and your family can achieve the dreams that you desire in any kind of weather (regardless of the season in your life).

 

You must plant seed (create powerful thoughts inside of your heart and mind), water (gain the preparation that is needed) and bear fruit (reach the powerful thoughts that you imagined inside of your heart and mind) in real time—by taking the necessary action on a consistent basis!

 

You must “intelligently look at your wealth building goals” on the front end (prior to making the wrong moves) so that you can proactively gain the knowledge that can make your wealth building efforts happen in a more stress-free environment.

 

It all begins with a “serious thought” within your mind that you can build wealth more effectively, your willingness to put in the required effort and your real belief within your mind that you will have the endurance to see it through!

 

It is critical that you dream big—and have every intention on reaching that big dream!

 

The environment “that you create within your mind” will determine if you are in a fertile or a desert environment. 

 

By planting in fertile soil at this time you are starting on a path to obtaining the “mental working knowledge” that is needed for major success and you are intelligently planning your future, thereby enhancing your likelihood of success throughout your lifetime when it comes to wealth building.

 

Effective WEALTH BUILDING is very important and your success depends on how you manage your monthly cash flow and how you choose to handle or manage your overall  finances (spend more, save less and not effectively manage the rest or spend less, save more and effectively manage the rest).

 

You may need to get more income, cut expenses or do a combination of the two—if you are truly dedicated to making your dreams come true!

 

In short, you must know how you handle your discretionary income on a monthly and annual basis and you must know if you have the discipline—or you are really willing to put in the effort that is required that will put you in position to effectively manage your credit and finances throughout your lifetime.

 

You must not underestimate the power of your thoughts on a daily basis, the importance of dreaming big, the importance of having the mental working knowledge and the importance of knowing the expended effort that is required to tie it all together so that you can achieve at your highest level on a consistent basis.

 

Although the task may look daunting at this time you can ease the process considerably if you make the decision to get started!

 

Once you get momentum rolling and you get into the habit of taking the right action at the right time Wealth Building will occur—in large part because you decided to look at (and act) on your finances in a more thought-provoking manner.

 

This page and the corresponding links in this discussion will provide you all that you need—and more, to effectively and efficiently manage your finances optimally from “this day” forward.

 

All the best to your wealth building success…

 

 

More on keys to success and wealth building basics…

 

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Learn whether you have the “mental fortitude” that is needed for success on a consistent basis…

Learn how mastering the 5 credit factors can lead to more success for you and your family…

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Estate Planning/Wills & Wealth Building

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LEARN WHY ESTATE PLANNING/WILLS & WEALTH BUILDING SERVES YOUR BEST INTEREST NOW AND AFTER YOUR TRANSITION…

 More on Estate Planning/Wills…

Estate Planning/Wills is often a difficult topic for most (including the creator of TheWealthIncreaser.com ) to confront.  However, we all have a “time stamp” on how long we will navigate this planet called earth.  Estate Planning is an effective tool for building and transferring wealth and you must know at least the basics of how utilizing effective estate planning can ease your burden while you enjoy life to the fullest.

 

Learn how you can master the “5 credit factors ” and achieve your dreams…

 

Unfortunately the creator of TheWealthIncreaser.com has a lot of experience in this area and in this discussion TheWealthIncreaser.com will try to share tips that could be helpful if you are now ready to confront this difficult area of Wealth Building.

 

As you put an estate plan together it is imperative that you have an insurance policy in place at the various points of your life stage.  By doing so you protect your family in a number of ways. Insurance is often the first and cheapest line of defense for doing just that.  It is also important that you realize that you must protect your family in the case of your early demise in other ways as well.  However, estate planning is an area of personal finance and wealth building that must not be overlooked!

 

It is also important that you manage your finances responsibly throughout your lifetime in all areas—comprehensively!

 

You must have a mental system that allows you to manage all areas of your credit and finances at all times!

 

You must have an effective understanding of how you can manage your estate more effectively and it is imperative that you gain that understanding and take action as soon as possible.

 

Speaking of life insurance—did you know that a trust can be the beneficiary of your life insurance policy if it is set up correctly and that could be an effective strategy for you—depending on your net worth and future goals?

 

Did you know that probate in many states average 12 to 18 months to complete?  If you or a loved one were to make your transition and you had a will (or even if you did not have a will in some states) that could be a grueling time for you or your loved ones due to the probate process and the grief that you would experience during that  same period!

 

Did you know that Probate using a will—will be made public—while a “living trust” will not?

 

If you were to transition “Intestate”—state laws rule.  If you transition while having a will—or you transition with no will—then probate could be in your or your loved ones future.

 

Benefits of a Trust

 

With a Trust—you can control distribution of your assets to your heirs or other causes that are dear to your heart.  For example, you could leave 1/3rd, 1/3rd to your 2 children and 1/3rd to your favorite charity—or you could do a 50—50 split to each child.  You can leave what you desire to the church(s) that you choose, the college(s) that you choose or the charity(s) that you choose in a more appropriate and definitive manner in most cases!  The limitations are only limited by your (and/or your attorneys imagination) and the constraints of the laws in your state.

 

You can specify how your child will receive income or distributions—or if they will receive any income at all, you can specify how your adult children will receive income and at what intervals, you can specify that your loved ones receive income at retirement age and thereafter, you can specify they receive no income until they are off drugs and verified along the way that they are off drugs by having trust beneficiaries take scheduled drug or alcohol tests—you name it a trust attorney can draft it in your living trust if it is allowable by law in your state.

 

You can help protect your heirs from creditors with a “drip release” if your heirs are facing divorce or other life challenges—NOW OR IN THEIR FUTURE.

 

In short, your Living Trust can be set up to spell out your wishes!  You must always realize that a trust is more difficult to contest than a will or having no will at all!  That is a major advantage—plus a trust will not be made public!

 

Always realize that your life insurance is part of your estate for estate tax purposes in virtually every state.

 

With a Living Revocable Trust—you can add assets (the trust owns your assets) and avoid probate.   You would be the “trustee” while you are alive and a “successor trustee” (that you could choose now) would take over upon your transition.

 

Even a will that leaves everything to your spouse may not be effective as a living trust—it depends on your situation.  In many instances a living trust is better than a deed transfer for real property when estate planning.

 

Why go through probate in your state when a living trust could be a better option for you and your family?  Grieving is hard enough without the headache of probate.

 

If you have a will—an executor of your estate will be needed!  Even if you feel you have modest income a living trust and/or a will may be effective tools for building wealth for either you or your loved ones.

 

Now that you understand estate planning/wills better—it is the desire of TheWealthIncreaser.com that you will do better as it relates to transferring your estate or assisting your loved ones who will potentially transfer their estate to you.  Share your knowledge and realize that for several thousand dollars you could possibly set up the transfer of your estate in a manner that you not only agree with—but more importantly carries out your intended wishes.

 

Your heirs and others will not have to squabble and distance themselves from each other after you are gone.  Because you have intelligently looked ahead—and planned effectively while you were of sound mind for what lies ahead as best you could while you were here on planet earth—peace of mind happens as a matter of course on a daily basis in your life!

 

Avoid uncomfortable conversations and confrontations with your children, siblings and other family members in the future—have peace of mind now—a consultation with a highly competent living trust attorney may be able to show you how.

 

Cost

 

If you are single three-thousand and up—if you are married five-thousand and up generally speaking, but depends on your state and how complex your situation is.  Every situation for estate planning is different and will require a legally crafted solution based on your income, assets, future goals and many other factors.

 

A Durable Power of Attorney and Advanced Directive with Power of Attorney for Medical Purposes can also be included inside a living trust for an additional fee.

 

NOTE: It is important that you realize that the above discussion is not intended to be legal advice but is provided in an effort to get you thinking at a higher level about a topic that is difficult for most to confront!

 

Even so, it is better to confront on the front end what you desire to happen after your transition (no pun intended) if you desire to live more abundantly and have peace of mind by knowing what lies in the future for your family, your heirs and other causes that are dear to your heart.

 

It is the desire of TheWealthIncreaser.com that this discussion has forced or inspired you to look at your estate in a more comprehensive and all-encompassing manner and will lead to you taking the necessary action to responsibly leave your finances and your estate after your transition to those who you love (along with the causes that you love) in a manner that serves your desires and wishes.

 

Now is not the time to rest…

Now is the time that you give it your best…

CHEERS to your future success…

 

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Homeowner Tax Breaks & Strategies

Posted on by TheWealthIncreaser.com

Learn how you can save on your personal taxes by using the tax codes and strategic maneuvering to lower your taxes that you pay to the IRS and other taxing authorities…

 

In the current economy it is important that you use the personal income tax laws to your best advantage.  With the tax season roughly at the mid-point and the home buying season just months away TheWealthIncreaser.com thought that Homeowner Tax Breaks & Strategies was an appropriate topic to focus on at this time.

 

In the following paragraphs you will learn what you can do to lighten your tax burden and possibly achieve your goals in a timely manner if you are now a homeowner or you anticipate becoming a homeowner in the future!

 

If you are like most—focusing on your taxes is not a pleasant experience!

 

However, by focusing on and comprehending what lies ahead in your tax future you can possibly put yourself in position to experience more pleasurable moments in your and your family’s future. 

 

Be sure to choose among the following strategies (if you see the benefit of doing so) and lighten your tax burden and achieve your future goals in a more efficient manner.

 

It is important that you find an approach to effectively manage your personal taxes in the current economy that works for you and it is important that you have some ideas—and knowledge about how you can lighten your tax burden that will move you toward your future goals in a more efficient manner.

 

Be sure to retain and utilize what you feel can help you achieve your dreams in a timely manner and run what you feel might work for you by your tax professional to see if any of the following tax strategies can benefit you and your family.

 

OK enough fluff—be sure to analyze how you can utilize the following strategies if you are now a homeowner—or you intend on being a homeowner in the future:

 

  • Mortgage Related Tax Breaks

You can deduct mortgage interest, points, PMI/MIP  (a reduction in MIP of $500 for the average homeowner was expected this year in the United States but was abruptly cancelled with the change of Administrations) and your property taxes while you are a homeowner and have a mortgage and possibly property taxes even if you are not a mortgage holder.

 

You must itemize your taxes in order to claim the deductions and by doing so you will save in taxes on your federal and state returns.  In some cases it may be to your benefit to itemize on your federal tax return even though you will get less back on your federal return by doing so.

 

The reason for doing so would be that you would get more on your state tax refund but less on your federal—but your overall total (overall tax refund of state and federal) would be more by itemizing.  Many taxpayers take the quick way out and lose financially by not doing this analysis, thereby overlooking this potential option when it could possibly be to their benefit.

 

For example, if you will get $500 back on your federal taxes using the “standard deduction” as opposed to “itemizing” and $400 back in refund on your state tax refund using the “standard deduction” —your grand total is $900.

 

If you will get only $300 back on your federal taxes using the “itemized deduction” as opposed to utilizing the “standard deduction” and $800 back in refund on your state tax refund by itemizing—your grand total is $1,100.

 

Simple math tells you that you are better off electing to itemize—$1,100 minus $900 equals $200 more dollars in your pocket!  It can be difficult to determine in many cases without actually “running the numbers” as state tax laws vary and all tax returns are unique.   However “electing to itemize” might be something that applies to your situation and their could be potential advantages (primarily more cash in your pocket) for you.

 

  • Improvements in your Home (Targeted)

By purchasing solar panels, dual-paned windows, low flow plumbing, tank-less water heaters, and other energy improvements spelled out in the tax code you can possibly deduct them on your taxes if you itemize your deductions on form 1040.

Many home improvement energy related deductions are scheduled to expire in 2020 and who knows what will happen after that time.  However, at this time you can get a tax credit (applied directly against your taxes) of varying amounts up until the 2020 tax filing season.

 

  • Tax Exclusion from the Sale of Your Personal Residence

Did you know that you can possibly exclude the sale of your personal residence from taxes if you utilized your home as your primary residence in 2 of the 5 previous years?  If you are single you can exclude up to $250,000 of the gain and if filing as married filing jointly—$500,000 of the gain from the sale.

 

Therefore, if you purchase right—get a substantial appreciation in the price of your home and you decide that the time is right to move in a few years or so after the value of your home has appreciated—you could pocket a nice tax-free gain (be sure to run your plans by your tax advisor to ensure that you qualify).

 

The creator of TheWealthIncreaser.com has utilized this approach personally and with many past clients and there is some risk that is involved.  However, if you are of the personality type that doesn’t mind moving frequently, or you plan on moving frequently for other purposes—this could be a great strategy that could work for you.

 

Be sure to purchase in a neighborhood that has an upward trend in home appreciation.  Be sure that you know the risks and you have a properly funded emergency fund in place and little or no revolving debt so that you can reduce the risks involved for you and your family.  Even so, there is no guarantee that after your home purchase—the value of your home will appreciate.  Hopefully, you get the point and you can clearly see the potential of how you could actually use this strategy to build wealth.

 

  • Cancellation of Debt

Although not a pleasant use of the tax code or even an effective strategy for most (you probably lost your home) the “cancellation of debt provision in the tax code for mortgages” does lighten the sting of losing your home some as it could be even worse.  If you are one who can use the 2007 Mortgage Debt Forgiveness Act to reduce or eliminate your tax burden—you must do so.

 

The 2007 Mortgage Debt Forgiveness Act was extended through the 2016 tax year, however future extensions are uncertain at the time of this post.   If your mortgage debt was cancelled and the 2007 Mortgage Debt Forgiveness Act applies to your debt forgiveness you could legally avoid paying tax on the debt that was forgiven.  Time limits apply for using this strategy so be sure you fall within the timeline of the act to take advantage of this strategy if you have received or anticipate receiving mortgage debt forgiveness in your future.

 

  • Homeowner Exemptions at the Local, County & State Levels

Did you know that many jurisdictions offer various “homeowner exemptions” that have the real effect of reducing or possibly eliminating your real estate taxes?

 

The exemptions vary from state to state—county to county—and in many cases city to city.  However, they are available and it is your responsibility to search them out in your area and take full advantage of them.

 

Basic Homeowner Exemptions, Age Homeowner Exemptions, Military Homeowner Exemptions and many others are available.  Again it is up to you to find and enroll in them as they are in many cases—not highly advertised.  Most have filing deadlines, so immediately after your home purchase be sure to inquire.  If you used a real estate agent in the purchase of your home, your agent should be aware of the filing procedure in your area.

 

Conclusion

 

Be sure you are aware of what you can deduct or utilize in other ways (tax strategies) at the local, county, state and federal level.  Be sure to take advantage of all homeowner exemptions that are allowed in your jurisdiction that you are entitled to.  All of the strategies or options discussed in this post require that you own your property as an owner (personal residence) and the strategies are not designed for rental or other non-owner occupied properties.

 

You must always realize that you have a unique tax filing position and what may be effective and work for someone else may not work for you!

 

For example, if your AGI (Adjusted Gross Income) is $70,000 and someone else’s AGI is $40,000 and you go out and purchase $20,000 worth of solar panels and the person with $40,000 AGI does the same—you may be in position to utilize the credit either partially or in full, while the person with $40,000 of income might not be able to utilize the credit at all.

 

This type of scenario can play out in many areas of the tax code—therefore effective planning with experienced tax professionals may be to your advantage. 

 

Your income, family size, deductions, exemptions, education expenses, number of jobs, tax with-holdings, tax payments etcetera are uniquely your own—therefore effective analysis must be performed.

 

Be sure to put into action your new found knowledge about the Homeowner Tax Breaks & Strategies that you can possibly take—or make to ensure a more prosperous and productive future for yourself and your family.

 

As you move forward be sure to make a sincere effort to give it your best at all times and it is the desire of TheWealthIncreaser.com that this page has played some small part in empowering you to look at your tax situation in a more critical manner whether you are now a homeowner or you anticipate becoming one in the future.

 

It is important that you proactively look at your tax situation (you must get out in front of your taxes) and not look back “for answers” after you have encountered a difficult situation.  If you do not take the initiative to proactively attack your tax situation or any other area of your finances–you are making life on earth much more difficult than it should be for yourself and your family.

 

Don’t be afraid to get planning advice on the front end (even if you have to pay as it can be money well spent) as most planners (or those who operate at the top of their profession) are aware of strategies that you may not be aware of.

 

It is the hope of  TheWealthIncreaser.com that this page has sparked something within you to make you look at your taxes and finances in a different way, so that you can start on a serious path to achieving your dreams—starting today!

 

All the best…

 

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Learn about more “Tax Moves” that you can make…

 

Learn more about the Tax Benefits of Homeownership… 

 

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