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• Cultivating the Affluent Cash Cow

  Today's awkward situation: Suppose the rich and the affluent were cows. And suppose the rest of us ran the farm. Query: Are we treating the herd right? The answer, according to the most recent IRS statistics, is a resounding yes. Over the last two years... Posted Oct 14 2006, 06:00 PM by scottb with | with 8 comment(s) Filed under: Government, Taxes & Other Disasters

• Finding hidden positives

  TEMPE, Arizona. Edward C. Prescott stands quickly, walks to his blackboard, and writes an equation for growth. The last item in the equation is "plus residual." He underlines it with his chalk. The word "residual" is to economists as dark matter is to... Posted Feb 26 2006, 04:57 PM by scottb with | with no comments Filed under: Financial Planning, Government, Taxes & Other Disasters, Social Security

• Yes, You Can Have Too Much of a Good Thing

  Q. My wife and I have about $320,000 of investments. About a third of that amount is invested in two royalty investment trusts. One is oil-based, and the other is in natural gas. Even after the recent dunking the energy market has taken, we are still... Posted Jan 19 2006, 02:40 PM by scottb with | with no comments Filed under: Consumption Smoothing, Government, Taxes & Other Disasters, Home Ownership & Mortgages, Income Investing, Q&A (from print), Retirement

• The Net Unrealized Appreciation Decision, up close

  Many people, including some advisors, have little or no knowledge of the "net unrealized appreciation" option for the use of company stock in tax-deferred savings plans. In fact, it's an important decision. Witness this story from reader S.A. in Houston... Posted Jan 17 2006, 04:10 PM by scottb with | with no comments Filed under: Government, Taxes & Other Disasters

• The Tax Code is Beyond Reform

  If anything makes me feel old, it is tax reform. When the president's Advisory Panel on Tax Reform released its much-leaked recommendations two weeks ago, my first reaction was an involuntary gag reflex, the sort of thing that happens when you get too... Posted Nov 15 2005, 10:17 AM by scottb with | with 1 comment(s) Filed under: Government, Taxes & Other Disasters

• Sometimes It Pays To Pay Taxes Now

  Recently, D.M. from Richardson Texas asked a question that vexes many fortunate Americans: Were Required Minimum Distributions from IRA plans harmful to the survival of IRA portfolios? The short answer was "No"--- the distribution requirements are always... Posted Sep 22 2005, 10:32 AM by scottb with | with no comments Filed under: Government, Taxes & Other Disasters, Q&A (from print)

• Taking Missed Fortune to the Reality Lab

  The premise of "Missed Fortune 101", a popular insurance book, is that all of us would be better off with no equity in our homes and no money in traditional IRA's or 401(k) plans. We can do a whole lot better, the book asserts, by putting lots of cash... Posted Sep 06 2005, 11:31 AM by scottb with | with 2 comment(s) Filed under: Financial Planning, Government, Taxes & Other Disasters

• The Overlooked $2.3 Trillion Deficit

  Let me be circumspect: Government accounting is vile garbage. It understates the true federal deficit by a staggering $2.3 trillion, an amount equal to the total market value of the ten largest companies in America--- General Electric, ExxonMobil, Microsoft... Posted Jun 05 2005, 02:51 PM by scottb with | with no comments Filed under: Burns at Large, Government, Taxes & Other Disasters

• Should You Pay Taxes Today?

  Q. Assuming you take advantage of all of your employer's retirement benefits, are there circumstances under which it would be advisable to take your salary today and invest a post-tax portion in taxable funds rather than place the pre-tax amount in a... Posted May 19 2005, 10:34 AM by scottb with | with no comments Filed under: Government, Taxes & Other Disasters, Q&A (from print), Retirement

• The New Tax Reality

  A tiny flickering light has emerged from the Social Security debate: The payroll tax is a tax, period. If you are at least 50 years old, it may be something better. If you are younger, it is just a tax. If it is "just a tax"--- money taken from paychecks... Posted May 17 2005, 10:47 AM by scottb with | with no comments Filed under: Government, Taxes & Other Disasters, Social Security

• Future Retirees Will Pay More Taxes

  If you want to replace your purchasing power in retirement, you'll have to pay more taxes to Uncle Sam today. You'll have to pay still more tomorrow. This will happen because Uncle Sam has had the power to tax Social Security benefits since 1983. Few... Posted Apr 19 2005, 12:28 PM by scottb with | with no comments Filed under: Government, Taxes & Other Disasters, Retirement, Social Security

• Defending Yourself from the Declining Dollar

  Q. It seems the dollar may have a long drop ahead as our government continues to ignore the burgeoning federal and trade deficits. With war costs mounting and the Chinese and Japanese moving away from the dollar, I am wondering how to hedge against a... Posted Jan 27 2005, 11:25 AM by scottb with | with no comments Filed under: Financial Planning, Government, Taxes & Other Disasters, Q&A (from print)

• Is the Consumer Price Index Accurate?

  Q. You have recommended the Vanguard Inflation Protected Securities Mutual Fund instead of the Vanguard Total Bond Market Index Fund because of its inflation-indexed securities. Recent articles by Bill Gross and others show that the CPI inaccurately calculates... Posted Nov 04 2004, 02:57 PM by scottb with | with no comments Filed under: Government, Taxes & Other Disasters, Q&A (from print)

• A New Kind of Deficit Is Coming Our Way

  Do debt and deficits matter? Dallas reader D. Smith and his brother-in-law differ. Smith writes, "I am of the opinion that the federal debt is relative in the scheme of our economy…" As long as it remains reasonable relative to GDP, he says, debt doesn... Posted Aug 03 2004, 11:16 AM by scottb with | with no comments Filed under: Government, Taxes & Other Disasters, Social Security

• Follow The Cash

  An old adage of detective work is very direct: "Follow the money!" But when you examine government finances you have to be more specific. You have to follow the cash--- the actual money collected. In her annual letter to workers, for instance, Social... Posted Jul 25 2004, 11:53 AM by scottb with | with no comments Filed under: Government, Taxes & Other Disasters, Social Security