Financial Strategist Blog
In fewer than six months, Americans will face their biggest tax hikes in history
(30)August 15, 2010
As of Jan. 1, 2011, no matter what your tax bracket, you can expect a hike. The lowest, 10% bracket will rise to 15%. On the high end 35% will rise to 39.6%. And everything in between…
The 25% bracket will rise to 28%.
The 28% bracket will rise to 31%.
The 33% bracket will rise to 36%.
If you’re married, expect to pay more.
That’s right -- the “marriage penalty” is back.
Kids? The child tax credit is slashed from $1,000 to $500 per child. (Not that you could raise a kid on $1,000 a year anyway.)
I know that you’re not thinking about dying soon. But you may want to adjust your assets accordingly in the next six months…
… Because the Death Tax returns in 2011!
That’s right -- if you die this year, no death tax. But 6 months from now, expect a whopping 55% (on estates over $1 million).
There has simply never been a more pressing time than right now to start planning for the future (the future that’s less than 6 months away!).
Where the Millionaires Are…
Not surprisingly, the U.S. is slipping wealth-wise. (Gee, Uncle Sam, what did you expect?)
A new listing shows that global private wealth made a comeback in 2009, increasing by 11.5% to US$111.5 trillion. This comes from The Boston Consulting Group's Global Wealth 2010 Report.
The largest gain occurred in Asia-Pacific where wealth rose by 22%, or $3.1 trillion, nearly double the global rate.
Latin American household asset growth rose by 16% to $3.4 billion, and Europe, despite its debt problems, was the wealthiest region with more than $37 trillion in private assets under management, an increase of 8.8% from 2008.
Where the World’s Millionaires Are
1) Singapore: Population: 4.7 million; Percentage: 11.4%
2) Hong Kong: Population: 7.1 million; Percentage: 8.8%
3) Switzerland: Population: 7.6 million; Percentage: 8.4%
4) Kuwait: Population: 2.8 million; Percentage: 8.2%
5) Qatar: Population: 841,000; Percentage: 7.4%
6) United Arab Emirates: Pop. 4.9 million; Percentage: 6.2%
7) United States: Population: 310.2 million; Percentage: 4.1%
8) Belgium: Population: 10.4 million; Percentage: 3.5%
9) Israel: Population: 7.4 million; Percentage: 3.3%
10) Taiwan: Population: 23 million; Percentage: 3%
The US only attained seven out of ten in the rankings which helps to illustrate how far we’ve fallen in the last two decades. That said you have an option, continue to watch your incomes dwindle or take an active approach and leverage the tax system by taking full advantage of deductions that will help you grow your net worth instead of shrinking it.
Regardless of income levels or net worth making smart choices has always been the hallmark of attaining and retaining wealth. Wealthy families have managed their assets in this manner for generations. Yet too many business owners and professionals fail to utilize one of the simplest yet most effective opportunities they have at their disposal.
IF YOU HAVE AVAILABLE TO YOU AN OPPORTUINITY TO SLASH YOUR TAX LIABILITIES BY ½ TO ZERO WHAT’S THERE TO THINK ABOUT?
For some this may require you ignore your CPA’s “best advice” because after twenty-three years helping businesses and professionals secure, create, and increase their wealth, many recommendations from CPAs have been incorrect. If you find this a little shocking I wrote a book and dedicated an entire chapter to dispel the myth of the all knowing CPA.
Your unique facts and circumstances will determine the type of solutions that can be implemented to help you succeed. That’s how I measure my success, pride and personal satisfaction helping others and seeing the results of those efforts.
Archived Blogs
- Protecting Wealth Requires a Very Proactive Approach (June 15, 2010)
- PART II How many times have you said if there was something I could do about my taxes I would? (May 15, 2010)
- Part I Is real estate still capable of being a real wealth builder? Why real estate can’t provide the same financial wealth as in the past. (April 15, 2010)
- The future costs of health care are a known financial time bomb to any retirement plan (March 15, 2010)
- How to tell the difference between tax avoidance and tax evasion (February 15, 2010)
- Who is making sure you aren’t paying more taxes than you need to? (January 15, 2010)
- A Year of Many Changes and Opportunities (December 15, 2009)
- Be careful about over projecting the future, Proceed with Caution (November 15, 2009)
- When companies are dropping like flies is deferred compensation at risk? (October 15, 2009)
- Are You Renting your Life-Style? – The Debate over Need versus Want (September 15, 2009)
- New Health Care Tax Costs to High Income Earners (August 15, 2009)
- Corporate America got their TARP, Now It’s Your Turn! (July 15, 2009)
- The time leading up to this month’s blog has been very exciting and busy so here are just a few highlights: (May 15, 2009)
- Asset Protection: Why It’s A Dirty Word! (April 15, 2009)
- Financial Warfare (March 15, 2009)
- As an Owner Do You Offer a 401(k) Retirement Plan? If You Do the Supreme Court Has Clearly Stated You Can Now Be Sued! (February 15, 2009)
- “Unquestionably, There Is Progress. The Average American Now Pays Twice as Much in Taxes as He Formerly Got In Wages” – H.L. Mencken 1880-1956 (January 15, 2009)
- Wealth Tools Still Available as Another Year Ends (December 15, 2008)
- Advisors, Advisory Firms and Attorneys; Are You Missing Out On Benefits? (November 15, 2008)
- Do You Feel Like You Want To Cheat On Your Taxes? There Are Other Legal Ways to Retain Your Hard Earned Income Rather Than Hiding From the I.R.S. (October 15, 2008)
- Why Have Political Candidates and the U.S. Government Declared War on the Wealthy Distinguished as Anyone Earning Over $250,000 Annually? (September 15, 2008)
- What the Reduction of California's Minimum Wage Means (August 15, 2008)
- A Downturn That Will Not Be Measured Simply In Months (July 15, 2008)