Millionaire's Growing Problem: Tax Audit
If you are receiving 7 figure income, your tax return is six times more likely to get audited. Still, it is probably a nice problem to have -- I wish I will have this level of annual income one day.
"Your chances of being audited are pretty good if you’re wealthy. They’re not bad if you’re not. About 1 in 16 taxpayers with income of $1 million and higher was audited last year, a 33 percent increase from the previous year. “If you’re earning that kind of money and we notice a problem, you’re going to hear from us,” IRS Commissioner Mark W. Everson said in a statement on the agency’s enforcement figures for the 2006 fiscal year. ... Audits of taxpayers with incomes above $100,000 were up 18 percent from 2005, the highest figure in more than a decade. Audits of certain businesses, especially “S” corporations and partnerships, increased by 34 percent, though audits of larger corporations — with assets over $10 million ..." Full StoryHow To Make A Million Dollars In Ten Years
SmartMoney highlights some important aspects of preserving and creating new worth, although I doubt if this plan can guarantee a million dollars in ten years.
"No. 1: Your Health What It's Worth: $85,000 This wealth-building strategy may sound surprising, but getting healthy appears to help make you rich. Not only does it influence how much you spend, it plays a role in how much you earn. No. 2: Your Spending What It's Worth: $50,000 Buying a pair of used cars every five years instead of leasing can save $31,500 over the decade. No. 3: Your Savings What It's Worth: $535,000 Any savings strategy should start with a 401(k), the most powerful retirement weapon at your disposal. You don't have to pay income tax on the money you invest until you withdraw it, which amounts to a 20 to 40% bonus on your savings. No. 4: Investing What It's Worth: $478,000 ..." Full StoryTop 20 Highest Paying Careers in the America
Yes, you may say higher degree and professional certification usually lead to higher paying jobs, but degrees and degrees are different, and it is a harsh reality that some degrees just never pay off.
"1. Surgeons 2. Obstetricians and gynecologists 3. Anesthesiologists 4. Internists, general 5. Pediatricians, general 6. Psychiatrists 7. Family and general practitioners 8. Dentists 9. Chief Executives 10. Airline pilots, copilots and flight engineers 11. Podiatrists 12. Lawyers 13. Optometrists 14. Computer and information systems managers 15. Physicists 16. Air traffic controllers 17. Petroleum Engineers 18. Nuclear Engineers 19. Judges, magistrate judges, and magistrates 20. Marketing Managers" Full StoryReviewMe: Another Income Stream for Bloggers?
There seems to be countless ways for bloggers to monetize their content, and ReviewMe just created another one. By signing up for ReviewMe, you will have a chance to become a "hired gun." That is, someone who is interested in introducing his products to your readership can recruit you to write a review for a certain product. Surprisingly, ReviewMe may pay pretty well. For example, ReviewMe assigned a default price of $250 for my blog (and ReviewMe will take a 50% cut). Based on my experience, every new post at PFBlog usually attracts about 500-600 readers in the first week. Considering the profile of my readership, $250 is not a hefty price to pay, though. Does that sacrifice your editorial principles? Bloggers always have the ... Full Story
Robert Allen's Get-Rich-Quick Real Estate Program: Myth Busted
Good review from MSN Money's MP Dunleavey on some popular get-rich-quick real estate seminars. The conclusion: while the system did produce a few successful real estate investors, Robert Allen's real estate course is mostly a way for him to make money.
"The odds of winning are not high. Robert Allen's "1,000 new millionaires" never materialized in the last year, for example. Allen operates what's called The Enlightened Millionaire Institute. Its Millionaire Hall of Fame Web site lists only 50 millionaires (defined as having generated gains averaging $2.6 million). A spokesman admits not all of them exclusively used the Allen method of real estate investing. (And, in a disclaimer, the site notes, "No information has been verified or authenticated. Results vary. All successes are subject to one's own knowledge and effort.") Despite all that, the Robert Allen Institute still conducts two or three seminars a week in different cities and says it reaches about 1,200 people each month. (That's 1,200 x $2,495 = $2.99 million a month ..." Full StoryLousy Financial Advices From Robert Kiyosaki And Donald Trump
Good review from WSJ on all the loopholes from the duo's new book "Why We Want You to Be Rich." To me, Robert Kiyosaki is a one-trick horse and has almost no credibility of giving sound financial advices.
"Messrs. Kiyosaki and Trump are hugely influential and their new book will, no doubt, land on the bestseller lists. After all, Mr. Kiyosaki's phenomenally successful "Rich Dad, Poor Dad" and the other books in the Rich Dad series have already sold over 26 million copies world-wide. Mr. Trump has also penned a slew of bestsellers, as well as starring in "The Apprentice" television show and, of course, running a major real-estate business. So why do Messrs. Kiyosaki and Trump want you to be rich? Each chapter is written partly by Mr. Trump and partly by Mr. Kiyosaki. The authors list some well-known problems, including the growing trade deficit, burgeoning national debt, a depreciating dollar and baby boomers with inadequate savings -- all of which makes ..." Full Story10 Highest Paid Female Executives
Here comes the highest paid women in the business, compiled by CNN Money.
"1. Safra Catz President and CFO Oracle (ORCL) 2005 Total compensation: $26.1 million 2. Susan Decker CFO Yahoo! (YHOO) 2005 Total compensation: $24.3 million 3. Suzanne Nora Johnson Vice chairman Goldman Sachs (GS) 2005 Total compensation: $23.1 million 4. Carly Fiorina Former Chairman and CEO Hewlett-Packard (HPQ) 2005 Total compensation: $22.3 million 5. Zoe Cruz Co-President Morgan Stanley (MS) 2005 Total compensation: $21.1 million 6. Susan Desmond-Hellmann President, Product Development Genentech (DNA) 2005 Total compensation: $17.1 million 7. Meg Whitman CEO and President eBay (EBAY) 2005 Total compensation: $16.2 million 8. Patricia Russo Chairman and CEO Lucent (LU) 2005 Total compensation: $15.0 million 9. Kay Krill President and CEO Ann Taylor (ANN) 2005 Total compensation: $11.9 million 10. Andrea Jung Chairman and CEO Avon (AVP ..." Full Story10 Highest Paid Male Executives
CNN Money tabulates the highest paid male executives:
"1. Eugene M. Isenberg Chairman of the Board and CEO Nabors Industries (NBR) 2005 Total compensation: $71.4 million 2. Ray R. Irani Chairman, President, and CEO Occidental Petroleum (OXY) 2005 Total compensation: $70 million 3. Lew Frankfort Chairman and CEO Coach (COH) 2005 Total compensation: $62.3 million 4. Barry Diller Chairman, Director, and CEO IAC/InterActiveCorp (IACI) 2005 Total compensation: $61.5 million 5. Scott A. McGregor President, Director, and CEO Broadcom (BRCM) 2005 Total compensation: $57.4 million 6. Terry S. Semel Chairman and CEO Yahoo (YHOO) 2005 Total compensation: $56.8 million 7. Larry Ellison CEO and Director Oracle (ORCL) 2005 Total compensation: $52.3 million 8. Martin E. Franklin Chairman and CEO Jarden (JAH) 2005 Total compensation: $49.2 million 9. Lee R. Raymond Chairman and CEO Exxon ..." Full StoryWhy We Want You to Be Rich - A Book By Robert Kiyosaki And Donald Trump
It is an interesting mix. I admire Trump's achievements but think Kiyosaki is mostly a liar. However, I love the tone of the book. To me, it is as important to grow the top line of one's income statement as to live below one's means. Take a look of Kiplinger's Personal Finance's interview of the duo before you buy the book.
"KIPLINGER'S: Mr. Trump, what's the most important thing readers should take away from the book? TRUMP: I think it's just that they are going to have a better life. Money is not everything, as the expression goes, but it certainly makes life easier. And we teach people how to make money and we teach people how to have a better life. And some of that is through money and some of that is through attitude. The book is very much about attitude and it is also about creation of wealth. Mr. Kiyosaki, would you agree? KIYOSAKI: Yes, but I think the main reason we got together was not to talk so much about money, but also the concern about the collapse of pension plans, the ..." Full StoryHow Much Is Your Master's Degree Worth?
Here are some quick valuation for Master's degree. For each degree, the dollar figure represents the increase in lifetime income of the Master's degree compared with a bachelor's degree. Yes, that's correct, a social science or liberal arts degree of Master is a sure way to lose money.
"Average: $180,010 Social science: Less than 0 Business: $375,780 Science: $136,873 Engineering: $362,092 Education: $106,388 Liberal arts: Less than 0 " Full StoryHow Much Is Your Bachelor's Degree Worth?
Here are some quick valuation for bachelor's degree. For each degree, the dollar figure represents the increase in lifetime income of thefour-year degree compared with an associate degree. Yes, that's correct, you probably cannot even break even if you opt for an education degree.
"Average: $308,588 Liberal arts: $243,883 Business: $349,028 Social science: $210,080 Computers: $443,180 Science: $283,286 Engineering: $497,930 Education: $108,461 " Full StoryHow Much Is Your Associate Degree Worth?
Here are some quick valuation for associate degree. For each associate degree, the dollar figure represents the increase in lifetime income of the two-year degree compared with a high school diploma.
"Now that you know all that, here's what I came up with (using a "discount rate" of 5% for you detail bugs who care) for the increase in lifetime income from a two-year degree: Average: $116,550 Liberal arts: $63,667 Business: $92,908 Social science: $79,013 Computers: $148,695 Science: $104,521 Engineering: $192,660 " Full StoryHow Much Is Your Degree Worth?
Want to be a millionaire? Unless you want to start your own business, you'd better pick up a right educational degree. Here is some good analysis on how much your degree is worth.
"But what they told me supported both common sense and what I've observed in the employment marketplace. For example: - Associate's degrees are a slam dunk. These two-year degrees seem to result in a massive payback, compared to their relatively low cost, for a high school graduate. - Ditto, usually, a bachelor's degree. Any bachelor's degree you get at a public university is likely to pay off handsomely, as well. If you're attending a private college, though, you might want to steer clear of education degrees. - Some degrees are a step back. Thinking of a master's degree in a liberal arts or social sciences field? Let's hope you're in it for the love of learning, because on average there doesn't seem to be any ..." Full StoryTips To Avoid Illegal Multilevel Marketing Plans
Not all multilevel marketing (MLM) plans are illegal, but many of them are. To get rich quick without falling into MLM traps, here are some tips from FTC.
"The Federal Trade Commission cannot tell you whether a particular multilevel marketing plan is legal. Nor can it give you advice about whether to join such a plan. You must make that decision yourself. However, the FTC suggests that you use common sense, and consider these seven tips when you make your decision: 1. Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid. 2. Beware of plans that ask new distributors to purchase expensive inventory. These plans can collapse quickly -- and also may be thinly-disguised pyramids. 3. Be cautious of plans that claim you will make money through continued growth of your "downline" -- the commissions on sales made by new distributors you recruit -- rather than ..." Full StoryWhat Is Pyramiding In Multilevel Marketing (MLM) Plans?
Whether an MLM offers incentive to recruit new distributors is the crucial test of whether the MLM plan is legal or not. Here is the take from FTC:
"If a plan offers to pay commissions for recruiting new distributors, watch out! Most states outlaw this practice, which is known as "pyramiding." State laws against pyramiding say that a multilevel marketing plan should only pay commissions for retail sales of goods or services, not for recruiting new distributors. Why is pyramiding prohibited? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people -- except perhaps those at the very top of the pyramid -- lose their money." Full StoryAvoid These Common Work-At-Home Schemes: Envelope Stuffing
Federal Trade Commission has an excellent series deciphering some classic work-at-home schemes. The old saying still holds: if it is too good to be true, you'd better avoid it.
"Envelope stuffing. Promoters usually advertise that, for a "small" fee, they will tell you how to earn money stuffing envelopes at home. Later - when it's too late - you find out that the promoter never had any employment to offer. Instead, for your fee, you're likely to get a letter telling you to place the same "envelope-stuffing" ad in newspapers or magazines, or to send the ad to friends and relatives. The only way you'll earn money is if people respond to your work-at-home ad. Assembly or craft work. These programs often require you to invest hundreds of dollars in equipment or supplies. Or they require you to spend many hours producing goods for a company that has promised to buy them. For example ..." Full StoryAvoid These Common Work-At-Home Schemes: Medical Billing
Federal Trade Commission has an excellent series deciphering some classic work-at-home schemes. The old saying still holds: if it is too good to be true, you'd better avoid it.
"Medical billing. Ads for pre-packaged businesses - known as billing centers - are in newspapers, on television and on the Internet. If you respond, you'll get a sales pitch that may sound something like this: There's "a crisis" in the health care system, due partly to the overwhelming task of processing paper claims. The solution is electronic claim processing. Because only a small percentage of claims are transmitted electronically, the market for billing centers is wide open. The promoter also may tell you that many doctors who process claims electronically want to "outsource" or contract out their billing services to save money. Promoters will promise that you can earn a substantial income working full or part time, providing services like billing, accounts receivable, electronic insurance ..." Full StoryWhat Is A Franchise?
A franchise typically enables you, the investor or "franchisee," to operate a business. By paying a franchise fee, which may cost several thousand dollars, you are given a format or system developed by the company ("franchisor"), the right to use the franchisor's name for a limited time, and assistance. For example, the franchisor may help you find a location for your outlet; provide initial training and an operating manual; and advise you on management, marketing, or personnel. Some franchisors offer ongoing support such as monthly newsletters, a toll free 800 telephone number for technical assistance, and periodic workshops or seminars. While buying a franchise may reduce your investment risk by enabling you to associate with an established company, it can be costly. You also may ... Full Story
Franchise ABC: The Cost Of Franchises
In exchange for obtaining the right to use the franchisor's name and its assistance, you may pay some or all of the following fees. Initial franchise fee and other expenses. Your initial franchise fee, which may be non-refundable, may cost several thousand to several hundred thousand dollars. You may also incur significant costs to rent, build, and equip an outlet and to purchase initial inventory. Other costs include operating licenses and insurance. You also may be required to pay a "grand opening" fee to the franchisor to promote your new outlet. Continuing royalty payments. You may have to pay the franchisor royalties based on a percentage of your weekly or monthly gross income. You often must pay royalties even if your outlet has not earned ... Full Story
Franchise ABC: The Control Of Franchises
Franchise opportunities make bring a lot of money, but you should know that you need to surrender a lot of control at the same time.
"To ensure uniformity, franchisors typically control how franchisees conduct business. These controls may significantly restrict your ability to exercise your own business judgment. The following are typical examples of such controls. Site approval. Many franchisors pre-approve sites for outlets. This may increase the likelihood that your outlet will attract customers. The franchisor, however, may not approve the site you want. Design or appearance standards. Franchisors may impose design or appearance standards to ensure customers receive the same quality of goods and services in each outlet. Some franchisors require periodic renovations or seasonal design changes. Complying with these standards may increase your costs. Restrictions on goods and services offered for sale. Franchisors may restrict the goods and services offered for sale. For example, as a restaurant ..." Full StorySponsors
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