Taxes....

[Stone]

Soon you will

[Merika]

I won't have to pay taxes on my Work Comp settlement. I will have to pay taxes on purchases, interest and capitol gains though.

It should get real interesting.....since they broke the law and almost killed me in the process! What a bunch of AssClowns! They have no choice but to pay me off so the Navy won't kick them off the base and they lose their $411 million dollar contract!

[Stone]

The capital gains is what will kill you my dear, it's hard to hand the goverment over that money, honestly have you ever wrote Uncle Sam a BIG check? I have to this year and it's killing me, it's due to capital gains.
And then we are talking 10- 30% OOUCH :bounceflame:

[Merika]

I raise two kids by myself. With my income....I barely pay taxes to begin with. I would actually be happy to have enough money to write ANYONE a check! LOL!

In your opinion....would I do better purchasing a house in cash (when I get my settlement) or paying half and putting the rest elsewhere due to the high capitol gains?

[Stone]

It depends on how much you owe on your home do you plan on moving? Rental property is a wonderful tax deduction. so maby you should consider renting it. IRA's are good but you can only invest $3 thousand this year. Unfortunatly for you to cut your capital gaines this year you have to show a loss, call me when you are writing the check I'll cry with you. YOu can make capital gains payments in incriments but I wouldn't recommend it. In some cases credit repair can work in your favor. I don't know how much you are recieving this year you have to pay them, but say you invest your money in land, stock, mutual funds, ect. the next year it is eaiser to hide LOL

[Merika]

I plan to pay the mobile home off even though it's relatively new. I have a friend who will live in it here since it's so close to the bases until he retires. I'll probably put it in his name since we can't rent out homes in here. After he retires, we'll decide if he still wants it or if it should be sold. (Yes, he's that good of a friend.)

I planned to pay cash on a house....probably in the area of $500,000...give or take $100,000 either way....plus bank the taxes, upkeep and insurance for 7 years.

I have land I can build on....but my kids would not be happy living out in the BOONIES! We will either buy a house on the beaches here or move to Vegas. (That's the plans thus far).

[Stone]

Are you CRAZY!! your going to pay $500K on a home cash? Obvioiusly you are getting a large sum of money and I am so happy for you, but PLEASE PLEASE PLEASE see a financial consultant before you do anything. Not someone at Meryil Linch who wan'ts all of your money, OR someone at the bank with the fincncial department I am one of these people and saying that it is easy to take advantage of people like you. that's how we survive so DON"T TRUST THE MONEY MAN. A good Accountant can point you in the right direction and I can send you some really good books if you would like them, I would hate to see you get taken advantage of and when money is as stake nobody cares about you and your kids.

Annuities are a great option if you ever want to invest for your kids or your retirement. they provide a monthly income over peirods of 10 years or more.

You also have to look at monthly income, emergency money, realestate, ect. and LTC Long Term Care if anything ever happends to you and heaven forbid you have to go to a medicare facility guess what is the 1st thing you have to sell? That's right that house of yours UNLESS you uput it in to a corporation you own. or a trust for your kids.

I think you should start a coproation or an LLC, with you being the president this can also help in your friends benifit that is moving in to your home.

[Merika]

My attorney's financial dept. said the rule of thumb is to spend no more than 1/4 of a settlement towards a cash paid house. Which is what you are saying also. I actually went with a conservative figure on the house deal...only because I don't want to take care of more house than that.

I guess we shouldn't go into settlement amounts on an open forum. I'll email you about it.

[dogula]

So what exactly is the point in having a debt limit if congress is going to raise it everytime we hit the limit?

[Merika]

It is a requirement by law for any municipality, government agency, state or the government itself to have a balanced budget. They offset it by having a 'debt allowance' due to the way the bookkeeping has to be done.

It's not a matter of accounts Rec and accounts Payable being the same in order for it to be considered 'balanced'.....it actually has to be brought to a ZERO balance.

If they see they aren't going to get to that ZERO...then there is the 'debt allowance' to offset it or fix it. As a nation....I think we are at 7 trillion or something like that. We SHOULD have enough projected trade goods and income to cover it....but I guess you never know until it's too late.

Actually, I'm a licensed City Clerk....so I do know a little about how that works. Talking about a CRAPPy job....I hated it! It's been years since I had to deal with so much red tape and aggravation.

[dogula]

The U.S. House of Representatives on Thursday prepared to raise the nation's debt ceiling by $800 billion, taking the new limit to $8.184 trillion.

The Senate approved the rise, the third in three years, on Wednesday. The House is expected to pass it as well so it can be sent to President George W. Bush for signing into law.

link

[Merika]

HOLY SMOKE....that's a lot of money!!!

I would think after the whole 'dot.com' fiasco...they would be more careful.

This is why I plan to BLOW all my money fast before I lose it in a depression due to investments. HAHA! (Stoneheather is now having a coronary!)