5 Crucial Things Every Income Investor Needs To Know

From: Street Authority

We're just past the edge. The "tipping point" is here.

Don't worry -- it's not dangerous. In fact, if you're an income investor, then this might be the start of a very prosperous trend.

Between now and 2030, roughly 10,000 Americans will turn 65 every day. You might be among them. This marks a major shift that will play out for millions of people in the next years and decades. And I think it could lead to a surge in popularity for income investing.

Think about it. There's currently $13 trillion sitting in U.S. mutual funds, with most of those assets held by soon-to-be retirees, according to the Investment Company Institute research group.

Regarding where that money may go, I think my colleague Amy Calistri put it best: "As baby boomers wind down their working years, they're going to do what retirees before them have done -- shift from riskier stocks and commodities into more buttoned-down income investments. In fact, given the rocky market in the past decade and disappearing pensions, the shift could be larger than most people think." Continue reading "5 Crucial Things Every Income Investor Needs To Know"

How to Prove Benjamin Franklin Wrong About Taxes

By International Man,

"In this world nothing can be said to be certain, except death and taxes.”

– Benjamin Franklin

In most cases, Mr. Franklin's statement would be correct. However, as you will see below, there are some countries in the world where you can be certain you won't pay taxes.

With the year 2013 marking the 100th anniversary of the income tax and the Federal Reserve in the US (two of the most powerful tools the government uses to extract wealth), I thought it would be useful to look at when Tax Freedom Day occurs across the world to gain some perspective.

Tax Freedom Day (TFD) is the day of the year that the average person has in theory earned enough money to pay his or her annual tax bill.

If TFD falls on January 1, that means you are a milk cow for ZERO days out of the year for the government. If it falls on June 30, it means you are working 181 days each year to pay off your taxes.

Unfortunately, most of us will spend some time during the year acting as a milk cow in some fashion for a government.

Below is a table showing when TFD hits in the countries within the EU.

The government of Hungary, Belgium, and France are the worst offenders in the EU, keeping their citizens in tax servitude astoundingly until around August each year.

If you are unlucky enough to be in the suffocating grasp of a high-tax jurisdiction, you will likely have only a couple of months of salary (if even that) out of the year that can be potentially utilized as savings after essential living expenses are met.

In the US, TFD comes around April 17. Of course, individual circumstances will vary, and TFD in the US can come a lot later than April 17 for many Americans.

Whether you are American, European, or any other nationality, it doesn't have to be this way. You do not need to be working for the government for a good portion of the year.

It is possible to take steps to internationalize and legally reduce the number of days the government milks you of the fruits of your labor.

Some countries do not have an income tax or essentially any other type of tax that could hit the average individual.

TFD could come on January 1 for you if you have no external obligations and fall under the jurisdiction in any of the countries in the table below.

Countries With No Personal Income Tax
British Virgin Islands
Brunei Darussalam
Cayman Islands
Saudi Arabia
St. Kitts & Nevis
Turks and Caicos
United Arab Emirates

There are many ways to internationalize and legally structure yourself and your business around these and other low-tax countries.

One possibility could involve an American citizen obtaining a second citizenship, then becoming a resident of one of the countries above, and finally renouncing US citizenship in order to obtain a tax-free existence. Of course, this is but one possibility. There are many options with varying degrees of protection.

You could prove Benjamin Franklin wrong – taxes are not necessarily a certainty.

It is still legal and practical to take steps to internationalize, but if history is any guide, it won't be so forever... especially as governments (particularly in the West) become more desperate.

Moving your assets abroad is the most effective way to protect what's rightfully yours from your home government… but most people have no idea where to begin. That's why Casey Research has put together a special web event, Internationalizing Your Assets. Featuring New York Times best-selling author Doug Casey and other experts on international diversification, it premiers April 30 at 2 p.m. EDT and is must-viewing for anyone looking for ways to legally shield wealth from greedy politicians. Get more information and register today.

Obama budget: Spending cuts, higher smokers' taxes

Mixing modest curbs on spending with tax increases reviled by Republicans, President Barack Obama proposed a $3.8 trillion budget on Wednesday that would raise taxes on smokers and wealthy Americans and trim Social Security benefits for millions.

Obama's 2014 blueprint combines a $242 billion infusion of new spending for road and rail projects, early education and jobs initiatives  all favored by Democrats  with longer-term savings from programs including Medicare and the military. It promises at least a start in cutting huge annual federal deficits.

The president pitched his plan as a good-faith offer to his GOP rivals since it incorporates a proposal he made to Republicans in December that wasn't radically different from a GOP plan drafted by House Speaker John Boehner. But it follows January's bitterly fought 10-year, $600 billion-plus tax increase that has stiffened GOP resolve against further tax hikes. Continue reading "Obama budget: Spending cuts, higher smokers' taxes"

June Gloom for US Tax Filers

Kevin Brekke, International Man

June brings privacy gloom for US tax filers. June 30 is the filing deadlinefor Treasury Form TD F 90-22.1 (the FBAR), wherein US persons get to stand financially naked by reporting their foreign held financial assets or accounts. The pat down was turned into a strip search with the introduction of the new IRS Form 8938 that greatly expanded the types of foreign assets now required to be reported to the US tax authorities.

Over the past 18 months, a series of changes to the reporting requirements for foreign assets held by US tax filers were introduced, including the release of the new form 8938 mentioned above. With each change came questions, as the instructions were not always clear and left tax filers hanging about how they should be interpreted - an unsettling situation, as the penalties for failure to file are absurdly extreme. However ...

There is some good news to report Continue reading "June Gloom for US Tax Filers"

Poll: Do We Need A Current Day Robin Hood?

The tax deadline is peaking its ugly head right around the corner...whether you get money back, owe money, break even, or have "found a way" to not pay (like our friends at GE) everyone has an opinion about taxes.

Where would you like to see future taxation go?

View Results

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The MarketClub Team