The end-of-year holiday season is followed closely by tax season. If you prepare your own taxes – or even if you don't – you'll need to start gathering your financial information in order to complete your tax return. Tax season conjures up images of filers waiting until the last minute – which falls on April 15, 2009 – to slip the all-important papers into the mailbox.
If you're looking for an opportunity to turn over a new financial leaf, getting a jump on your taxes may be just the thing you need to help get you started. You'll need to collect a lot of documentation, and if you're not a neatnik by nature, this can be one of the worst parts of doing your taxes.
Find a large box and start hunting up your pay stubs, account statements and other financial records. As you move into the new year, you'll start to receive statements in the mail that you'll need for your taxes. Look for envelopes marked "TAX INFORMATION ENCLOSED" and put those in your box.
Reporters – those who have information you need for your year-end taxes – have until January 31, 2009 to put your information in the mail. If you need W-2 statements from employers, interest income statements from the bank, or other similar documentation, you won't be able to file your taxes until this information shows up. If you're in a hurry, check online to see if you can get the figures you need ahead of the year-end paper statements.
If you're self-employed, you have all of the payment records you will need to make your year-end report. In most cases, you'll need to make an estimated payment on January 15, 2009 – unless you can get all of the information you need to file your tax return by the time the estimated payment is due. Since reporters aren't required to make year-end tax information available until January 31, you should plan to make your estimated tax payment. If you're entitled to a refund, file your year-end return as early as possible and get your money back.
Once you have your documentation collected, you can file your tax return. You can find computer programs that will help you file your taxes, and studies show that filers who use tax preparation software are more likely to get refunds faster, less likely to omit required schedules and forms, and make fewer mistakes that will delay a refund check. The tax preparation software is tax-deductible, and cuts down on the time required to prepare a return. If you use tax preparation software each year, you can import data you need from the previous year's return, reducing the preparation time even more. You can also file your state income tax return at the same time, if you live in a state that requires filing.
Most electronic software programs also enable you to file your return electronically for a fee. If you don't want to pay to file your return, you can still print off a paper copy of your return and mail it in. Print an extra copy for your own records. Once you've filed your return, keep all of your receipts and other documents together in a single file, along with a copy of your return in case you're required to answer questions about your return.
Sunday, December 28, 2008
Monday, December 22, 2008
Geezeo.com Can Help You Help Others With Personal Finance
If you're struggling with debt management, and think you're in this alone, you're mistaken. A new social networking site aims to prove that. Geezeo.com is designed to help members develop workable budgets, offer advice and suggestions to other members, and provide a social forum in which people who are struggling with the same problems can come together and share their stories.
The site enables users to set personal goals. The social nature of the site is intended to provide greater accountability for financial decisions and habits that are designed to help members reach their personal goals. The site also offers tools that individuals can use to help develop budgets and spending plans.
The site provides tools to help members track spending and learn how others are handling similar problems. Users can also enable a public feed that lets friends and other Geezeo.com members know how they're progressing. Depending upon how much information a member adds to the site, the site can provide warnings about due dates for upcoming bills. Users can also comparison shop for the best rates on savings accounts, retirement savings products and other long-term financial products.
The site also provides a platform for starting and supporting niche interest communities. Users can recognize friends – similar to Facebook or MySpace – and participate in interactive discussions, get expert advice, and receive opinions from other community members.
Accounts on Geezeo.com are free and require only a simple registration. Users are not required to offer up financial information to participate.
The site enables users to set personal goals. The social nature of the site is intended to provide greater accountability for financial decisions and habits that are designed to help members reach their personal goals. The site also offers tools that individuals can use to help develop budgets and spending plans.
The site provides tools to help members track spending and learn how others are handling similar problems. Users can also enable a public feed that lets friends and other Geezeo.com members know how they're progressing. Depending upon how much information a member adds to the site, the site can provide warnings about due dates for upcoming bills. Users can also comparison shop for the best rates on savings accounts, retirement savings products and other long-term financial products.
The site also provides a platform for starting and supporting niche interest communities. Users can recognize friends – similar to Facebook or MySpace – and participate in interactive discussions, get expert advice, and receive opinions from other community members.
Accounts on Geezeo.com are free and require only a simple registration. Users are not required to offer up financial information to participate.
Tuesday, December 9, 2008
Should You Be Buying Stocks Right Now?
Stock market gurus say now is the time to pick up some great stocks at a low price. Warren Buffett says he's increased his holdings substantially in the US stock market, but for the individual investor, does today's market represent an unbeatable deal?
The rules about stock market investing haven't changed. If you know little about investing in stocks, it's never a good time to invest. Instead, take some time to learn about the stock market, and what buying stocks mean before you head to the stock tables to make your picks.
There's nothing guaranteed about investing in the stock market. The old saw about past performance not being a guarantee of future results is as true as it has ever been. Few, if any, sectors are unaffected by the recession, and even the players in stronger sectors may have unrecognized vulnerabilities that will drop the price of their stocks overnight.
The first rule of investing, therefore, is don't put any money in the market that you can't afford to lose. If you're thinking about investing your life savings in stocks, check that plan. Just as you shouldn't put all of your eggs in one basket, you shouldn't put all of your savings into one stock, or one type of investment. If you're serious about making your money grow, go back to the drawing board and learn how to balance your risk in the stock market by picking up other types of investments, too.
The second rule of investing is know what you're buying. Some people buy stocks on a strictly emotional basis. They like the company or its products, so they buy stock. Other people end up as stockholders by virtue of being employed by the stock issuer. As a rule, emotional investing isn't a very good idea. You run the risk of making a bad purchase decision, and compounding it by holding onto the stock longer than another investor would.
Always look at how you can limit your risk. If you're accumulating company stocks – as you might in a retirement plan – the safer bet is to limit the amount of company stock you own. If you lose your job or the company shuts down, you could also lose a substantial chunk of your retirement savings.
All this having been said, there are some great deals to be had in stocks right now, if you have the stomach (and the cash) to invest. Short-term investments aren't the right tool for most investors, but you can put together a nice, balanced portfolio for longer-term goals at a pretty good discount right now.
The rules about stock market investing haven't changed. If you know little about investing in stocks, it's never a good time to invest. Instead, take some time to learn about the stock market, and what buying stocks mean before you head to the stock tables to make your picks.
There's nothing guaranteed about investing in the stock market. The old saw about past performance not being a guarantee of future results is as true as it has ever been. Few, if any, sectors are unaffected by the recession, and even the players in stronger sectors may have unrecognized vulnerabilities that will drop the price of their stocks overnight.
The first rule of investing, therefore, is don't put any money in the market that you can't afford to lose. If you're thinking about investing your life savings in stocks, check that plan. Just as you shouldn't put all of your eggs in one basket, you shouldn't put all of your savings into one stock, or one type of investment. If you're serious about making your money grow, go back to the drawing board and learn how to balance your risk in the stock market by picking up other types of investments, too.
The second rule of investing is know what you're buying. Some people buy stocks on a strictly emotional basis. They like the company or its products, so they buy stock. Other people end up as stockholders by virtue of being employed by the stock issuer. As a rule, emotional investing isn't a very good idea. You run the risk of making a bad purchase decision, and compounding it by holding onto the stock longer than another investor would.
Always look at how you can limit your risk. If you're accumulating company stocks – as you might in a retirement plan – the safer bet is to limit the amount of company stock you own. If you lose your job or the company shuts down, you could also lose a substantial chunk of your retirement savings.
All this having been said, there are some great deals to be had in stocks right now, if you have the stomach (and the cash) to invest. Short-term investments aren't the right tool for most investors, but you can put together a nice, balanced portfolio for longer-term goals at a pretty good discount right now.
Tuesday, December 2, 2008
Retail Bankruptcies May Impact Holiday Gift Giving
According to an item in Retail Information Systems News, more than 6,000 retail stores will close by the end of 2008. The closures cover a broad spectrum of the retail industry, and include both well-known and regional retailers.
84 Lumber, Ann Taylor, Charming Shoppes (owner of Lane Bryant and Fashion Bug), Circuit City, Foot Locker, Macy's, Movie Gallery, Pacific Sunwear, Pep Boys, Sprint Nextel, Wilsons Leather, and Zales plan a combined total of 1330 store closures. Other retailers like JC Penney and Office Depot have significantly scaled back expansion plans due to the soft economy.
Amid store closures, consumers will have to navigate which of these retailers have filed for Chapter 11 bankruptcy protection. The distinction is important, especially for consumers who have purchased goods that have not been delivered, or services that have not yet been rendered. These consumers face a real risk of loss, if a company's Chapter 11 bankruptcy (reorganization) turns into a Chapter 7 bankruptcy (liquidation).
A consumer's best bet is to pay for goods with a credit card. The dispute process associated with credit card purchases may enable the consumer to reclaim the purchase price through a chargeback. Extended warranty services, installation and setup services, gift cards or gift certificates, and goods paid for with cash are less likely to be recoverable. When a retailer declares bankruptcy, cash-on-hand is used to pay secured creditors and the employee payroll first. These obligations must be met first under the rules of the bankruptcy court. When a retailer is running short of cash, those consumers who purchased pre-paid services or ordered goods for delivery are most likely out of luck.
As a rule, consumers should purchase gifts with a credit card to maximize their ability to collect if the retailer goes belly-up. If you had been hoping to pay cash for the holidays this year, use a credit card to provide some extra protection, and then make a cash payment to your credit card immediately in the amount of the purchases you made.
If that doesn't work for you, limit your purchases to goods only. Skip the extended warranties, setup and installation services, and replacement insurance offers. Consider buying directly from the manufacturer if that's an option.
Don't assume that chargeback protection is available with a Visa or MasterCard gift card in the same way it's available for purchases. Ask the bank or credit union that issues the card for specifics on chargeback protections before you buy the gift card.
84 Lumber, Ann Taylor, Charming Shoppes (owner of Lane Bryant and Fashion Bug), Circuit City, Foot Locker, Macy's, Movie Gallery, Pacific Sunwear, Pep Boys, Sprint Nextel, Wilsons Leather, and Zales plan a combined total of 1330 store closures. Other retailers like JC Penney and Office Depot have significantly scaled back expansion plans due to the soft economy.
Amid store closures, consumers will have to navigate which of these retailers have filed for Chapter 11 bankruptcy protection. The distinction is important, especially for consumers who have purchased goods that have not been delivered, or services that have not yet been rendered. These consumers face a real risk of loss, if a company's Chapter 11 bankruptcy (reorganization) turns into a Chapter 7 bankruptcy (liquidation).
A consumer's best bet is to pay for goods with a credit card. The dispute process associated with credit card purchases may enable the consumer to reclaim the purchase price through a chargeback. Extended warranty services, installation and setup services, gift cards or gift certificates, and goods paid for with cash are less likely to be recoverable. When a retailer declares bankruptcy, cash-on-hand is used to pay secured creditors and the employee payroll first. These obligations must be met first under the rules of the bankruptcy court. When a retailer is running short of cash, those consumers who purchased pre-paid services or ordered goods for delivery are most likely out of luck.
As a rule, consumers should purchase gifts with a credit card to maximize their ability to collect if the retailer goes belly-up. If you had been hoping to pay cash for the holidays this year, use a credit card to provide some extra protection, and then make a cash payment to your credit card immediately in the amount of the purchases you made.
If that doesn't work for you, limit your purchases to goods only. Skip the extended warranties, setup and installation services, and replacement insurance offers. Consider buying directly from the manufacturer if that's an option.
Don't assume that chargeback protection is available with a Visa or MasterCard gift card in the same way it's available for purchases. Ask the bank or credit union that issues the card for specifics on chargeback protections before you buy the gift card.
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