Tag Archives: IRS

Warning: The Annual Summer US Stock Markets Selloff Is Coming!

US Stock Markets Update:

Summer sell off is coming
Question #1
What has changed about the US and world economy two months ago?

Answer: Almost Nothing

Question #2
Did anything change in China?
Answer: No

Question #3:
Is the price for a barrel of oil still a lot lower than a year ago?
Answer: Yes

Question #4
Is Greece still in a financial mess?
Answer: Yes

Question #5

Is the US Federal Reserve Board (FED still going to raise interest rates?

Answer: A resounding YES!
So; you may ask, why did the US stock markets bounce back up so quickly?
For example, the Dow is back up to 17,808 from a low of 15,370 (A nice 15% gain in just two months.) after the very wild ride in the first two months of 2106?

Warning, Don’t Get Too Happy!!

I have some excellent news for you; we are going back down!!! I think with the usual annual summer sell-off; I am over 99.99% sure this summer will be a very bumpy one. ….Yes, when the US a stock market is going down/correcting it is not bad news for intelligent investors.

It is very hard to find any fundamental reasons that the US stock markets will continue to go higher from here. However, the market mostly operates in the short-term on emotion, such as fear and greed, so that I may be surprised.

Remember, you have been warned, hang on, we are in for a rough ride in the upcoming months.

Schedule K-1s! (IRS Form 1065):
Don’t you just love them, I do? I get a lot of questions on Schedule K-1s!

My very beautiful, and most of the time kind, and sweet bride, Dinara always tells me” if you love me, you should not mind repeating things over a thousand times.”
So, as I have said every year now for over ten years; if you get K-1s each year, and they are in an IRA, they are not taxable.

You can always log on to TurboTax and try to enter them in, and as soon as you get to Part II under I2, TurboTax will ask you if this box is checked and if you say yes, it will stop you!
Please feel free to try it.
Once it stops you, you just have to keep these K-1s with your 2015 taxes.

And, if the IRS ever send you a letter saying you owe us taxes on this, you just fax them your IRA statements, 100% of the times that is all it takes, and they will go away as they have done for every single other person I have helped over the years who the IRS have contacted via mail.

Last Minute Tax Tip To Get A Bigger Refund!

Here is a quick and very easy way to get a bigger refund (or owe fewer taxes) while saving for your retirement at the same time!

1) Contribute $5,500 ($6,500 if you are 50 or older) to a traditional IRA … do not do a ROTH

2) Invest the money in FIVE different dividend paying companies for at least the next TWENTY years

Make sure these companies are companies that you and millions of other people must use their products and services every day. Here are some great examples of stocks & companies I’m talking about:

  • Your utilities company (Gas and Electric) you pay every month
  • a freight train companies such as CSX
  • Visa or Master if you use those cards daily or weekly
  • Food companies such as Sysco Corp.
  • The very company you pay for mobile phone service every month such as AT&T or Verizon
  • And last but not least, the gas company where you fill up your car bi-weekly, such as Chevron, Exxon Mobile, Marathon Oil, etc. (please read this very short blog)

Stop Paying your Electric Bill

3) Make sure that your quarterly (or monthly) dividends are enrolled in a Dividend Reinvestment Plan, also known as a DRIP.

4) Do not invest your money in Mutual Funds–over the long run, you will just get an average return and will not do as well as the top 5% of intelligent investors.

5) Here is how you will benefit; you pay fewer taxes now, and you should have a lot more money in 20 years from now because the taxes you did not pay are working for you!

6 You can thank me by downloading a copy of my book far as low as $4.99 at www.sherwinpbrown.com

7) *** Please READ DISCLAIMER ON MY WEBSITE AT www.sherwinpbrown.com