Ted Bauman Warns Against this Common Retirement Mistake


When it comes to retirement, one expert believes that too many people are making a critical mistake that could cost them dearly in the future. Ted Bauman, Editor of The Bauman Letter believes that the average investor is miscalculating their net worth. This miscalculation may be the reason why many people retire with much less than they anticipated.

In a recent blog article entitled, Don’t Make This Retirement Mistake,” Mr. Bauman lays out how many people mistake the price of something with its value. Price, as defined by Bauman, is what people pay for an item. And value is what is the perceived worth of the product. This price/value relationship can become increasing warped when the element of time comes into play. That is because price usually becomes detached from its value over a set amount of time.

One example in the article mentions a toy that was once popular with little kids – fidget spinners. At the height of the craze, fidget spinners were being sold at high prices. Now, that the fidget spinner fad has died, the price of these toys have fallen off of a cliff and landed down in the clearance bin. Check this article at Bloomberg.com to know more about Ted Bauman

Using a more practical application, many couples project the future value of their home as a way to fund their retirement. Bauman warns that rising inequality may mean that future young families won’t be able to afford homes at the price future retirees think they can sell them at. The result? A massive shortfall for couples who won’t have the money to retire comfortably.

Ted Bauman points out that young couples today have about half the net worth of the previous generation at the same stage of their life. That, in turns, means that young couples are more likely to rent than to buy a home. An oversupply of homes will lead to downward pressure on home prices.

Ted Bauman has been a part of Banyan Hill Publishing since 2013. As the Editor of The Bauman Letter, Plan B Club and The Alpha Letter, Mr. Bauman has offered his advice on everything from low-risk investment strategies to asset protection.

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Take Those 2017 Tax Deductions While You Can

Uncle Sam knows how to get the most from the taxpayers. If you know how to play the game right, you can use those things to get money from the new 2018 tax laws. Here’s the list of tips for you before 2018 makes those opportunities vanish. The best part is it is legal.

The federal tax system rates for all taxable incomes until 2027. This offers a reduction in taxes for everyone at the beginning. Some people will even get more savings.

– Limited liability companies

– Partnerships

– S Corporations

Those groups will be able to take 20% off of the taxes, which is an increase from the 17% before. Those people who have their own businesses will benefit from this immensely. That means a LLC which earns $100,000 will be able to keep 20% of that completely free of taxes. Visit Ted Bauman at medium.com to know more

The IRS made these changes to cut the number of taxes for personal income exceptions which so many taxpayers were number of using before. Now, for those of you that are interested, this means that filing 2017 taxes should include the max deductions now. When 2018 comes, this won’t be possible anymore. You can still take deductions in 2018, but they will be to your disadvantage. You should get it in now, while you can. In 2018 you would need the deductions over $24,000 to make money off of the filing.

Follow Ted Bauman at stocktwits.com

What most people are doing to maximize the money saved between now and next year is to take the deductions by going to your favorite charity and donating those stocks now. Here are a few other tips to remember to get the most from your taxes with all the changes coming up.

– Prepay 2018’s federal taxes now.

– Prepay the interest for 2018 now as well.

– Pay all student loans before it’s too late.

– Prepay for any large medical procedures now.

– Prepay all big bonuses in this calendar year.

– If you are a consultant, ask for clients to prepay invoices in 2017 now.

These strategies and a few others will allow you to maximize your savings when the changes come next year. While some aspects will be beneficial for those with a LLC or partnership, personal deductions will be better taken on this year’s taxes.

Learn more:https://banyanhill.com/expert/ted-bauman/