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Do you know why stories of people with $.32 refund checks are in the news?

Because they are so rare!

Most people want to get a big tax refund. However…

Big tax refunds aren’t always a good idea

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Getting a huge refund is an extremely inefficient use of money – both for you and for the government.

I recommend adjusting your withholding so you can bring more money home and put it towards your goals:

• Pay off high-interest rate debt
• Building up reserves
• Saving or investing

How? By adjusting your tax withholding.

Did you know you could change withholding mid-year? All you need is to complete Federal Form W-4 and submit it to your employer (Benefits department or HR manager, etc).

What do I change it to?

To find the answer you need to run a mid-year income tax assessment.

Run a mid-year income tax assessment

Making course corrections in August helps steer your tax withholdings closer to the target – which is to owe nothing or get a small refund.

It’s almost impossible to be exact, there are too many moving parts, but you can bring your tax-boat closer to the dock in the last few months of the year.

Gather together the following items:

• Last year’s tax return
• Last year’s Schedule A (if you itemized deductions)
• Your last two pay stubs (include your spouse’s as well)

Note: If you have a small business or are an entrepreneur then you will need to run a Schedule-C calculation to estimate self-employment income. You may also want to see a tax professional.

Also, you will want to estimate any:

• Child/Dependent Care expenses
• Expected bonuses
• Expected interest, dividends, etc

I use tax preparation software to run my calculation but you could follow the prompts at the IRS website to complete a mid-year tax assessment:

http://apps.irs.gov/app/withholdingcalculator/

Federal forms and resources mentioned in this episode:

Federal tax withholding calculator: http://apps.irs.gov/app/withholdingcalculator

Federal form W-4 (change withholding): http://www.irs.gov/pub/irs-pdf/fw4.pdf

Federal form Schedule-A (Itemized Deductions) http://www.irs.gov/pub/irs-pdf/f1040sa.pdf

Federal form Schedule- C (Profit and Loss from Business) http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

*Disclaimer: I am not a tax preparer or tax advisor. This is a service I normally provide my U.S. clients as part of their coaching process. It is intended to provide valuable information only that you can use to improve your financial situation.

Ponda from the Honda

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Only 5 1/2 more house payments to go!

How $5 a week turns into $228,000

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$5 a week for 45 years at 10% growth is $228,000.

Yes, really.

Easily open an IRA account or education fund for your kids with Betterment*

Below is a screenshot of my “$100 a month” experiment. I started the account in 2013 and it’s not doing too bad.

* Note: Your results will vary. Past results are not indicative of future returns

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Ace Chapman is a business owner, but not in the traditional sense. He buys business with the intent of selling them.

Although he has an entrepreneur’s heart, Ace doesn’t believe anybody should start their own business. It is much easier and profitable to buy an existing business, improve it, and sell it for a profit.

In this episode, Ace shares his stories, inspirations, and gives us insight on how we could pursue a business for sale.

Find more about Ace on his website: http://acechapman.com/

or follow him on Twitter: https://twitter.com/acechapman

Pick up his book on Amazon: The Ace Formula: How To Buy Profitable Business and Live Life On Your Term LIKE A BOSS

Don’t worry about your credit score

Do what’s RIGHT with your money

When it is time to prove your creditworthiness call on eCredable

(free recurring monthly membership when you use my link)

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Many people are being lured by the attractiveness of directing their own retirement plans. The trick is to do it right and have an asset, business, or income-producing entity that makes sense for YOUR retirement planning. Today we talk about what you need to know about self-directed IRAs

Interview with Kirk Chisholm [2:22]

Many people are being lured by the attractiveness of directing their own retirement plans. The trick is to do it right and have an asset, business, or income-producing entity that makes sense for YOUR retirement planning.

Kirk Chisholm is my guest today. Kirk is a Wealth Manager, Economist, & Principal at IAG. He is also an expert of investing in alternative investments in self-directed IRA / 401k

Key takeaways from our discussion:

• Self-directed IRAs are a great arrangements for making non-traditional items become tax-deferred investments
• There is no guidance for what you can put into a self-directed IRA
• There are some unusual things people have turned into self-directed IRA investments
• A 1031 exchange is not a self-directed IRA
• We learn where a wealth manager fits into an individual’s self-directed IRA plan
• There is no certification for someone to become a self-directed IRA administrator
• Kirk encourages you to pick things you know well

You can find more about Kirk Chisholm and his firm at http://www.innovativewealth.com

How taking one step back can make you feel a little bit richer [33:47]

• Stop
• Take a step backwards
• Close your eyes for 1 second
• Open your eyes

Imagine your life 10 years ago and tell me you don’t feel just a little bit richer

Ponda from the Honda [42:09]

She blew $20k of college savings on clothes and a European vacation.

I was a guest on Radical Personal Finance

Thanks to Joshua Sheats for having me on his podcast, Radical Personal Finance. I was on Episode 222

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Interview with Kai Yaniz [1:00]

#192: Kai used to be responsible for staffing at a firm. She knows first-hand what companies use to check on an applicant’s background. 

While a company may check credit reports, they do not review credit scores.

Once again, this is proof that the bare minimum to succeed in America is to simply pay your bills and debts on time.

If you don’t have any debts and don’t have credit cards, you won’t have a credit score. However, you will have a clean credit report – or no information for a credit report to be built upon.

UPDATE 2020: My wife and I paid off our last debt, the home mortgage, in December 2015. Within 2 years, I no longer had a credit score. Does that mean I couldn’t get a traditional job in corporate America? Of course not! Let my story be your testimony. Spend more time on your personal finances and less time trying to build your credit.

In this episode we discuss:

• Why Americans allow themselves to become trapped in debt
• How much responsibility do we place on the education system to teach children and young adults about financial literacy
• The truth about employers pulling credit scores or credit reports
• The 5 Dangers of Buying Cheap and “Splaving”

I Can’t Live Without My Smartphone [19:00]

This comes from an article that first appeared on LibertyInvestor.com

Make sure you listen to my LL Cool J impersonation [20:13]

Ponda from the Honda [26:00]

If you have time to research credit cards and build credit… then you have time to budget.

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In this episode we talk about summer jobs for teachers, a new online accountability course called Destination Debt Freedom, and the Top 10 Financial Oxymorons.

8 Summer Jobs for Teachers [00:46]

Summer is a great time for teachers to take a break. It also gives them a chance to earn extra income to  have some fun or advance their wealth building efforts.

Heather van der Hoop from ThePennyHoarder.com comes on the show to offer these suggestions for creating an income – and many of them involve stretching your boundaries as a teacher.

1. Teach English as a Second Language
2. Teach Abroad
3. Sell Your Lesson Plans Online
4. Work at a Summer Camp
5. Drive for Uber, Lyft or Sidecar
6. Rent Out Your Driveway
7. Rent Extra Space in Your House
8. Become a Local Tour Guide

This article first appeared on http://www.thepennyhoarder.com/summer-jobs-for-teachers/

Destination Debt Freedom [19:00]

A new peer accountability program for inspiring people along their debt freedom journey is being launched July 2015.

Alan Steinborn and Jackie Beck are spearheading this effort. They came on to explain the benefits and process for how the process works.

For more information visit http://www.destinationdebtfreedom.com

Top 10 Financial Oxymorons [33:22]

I asked the Facebook Group, Debt Freedom Fighters, what they thought the Top 10 Financial Oxymorons were. The answers were hilarious!

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Jason Hartman only wants mortgage debt – and he will take out as much as he possibly can. He has been investing since he was 20 years old and learned how inflation is the enemy of home equity but the golden goose of real estate income property owners (my words, not his).

We first have to understand how inflation plays into this investment strategy and what “Inflation Induced Debt Destruction” is.

Concepts covered in this conversation with Jason Hartman

Jason says the classic definition of inflation is “too many dollars chasing a limited supply of goods and services, causing prices to rise”

• Raised prices are not the same as inflation, as we are led to believe
• The CPI (Consumer Price Index) is a basket of goods on which the government measures inflation
• Jason also describes Fractional Reserve Banking and Lending

Six ways the government can deal with the national debt

1. Default: Unlikely to occur because it is politically unpopular
2. Raise Taxes: Impossible to raise taxes high enough to pay off debt (even at 150%)
3. Sell off America’s assets: Some of this is already happening (like toll roads)
4. Use the military to steal: For the natural resources, history has shown this is to be true
5. Technological innovation: Best option – but not the government’s first choice
6. Raise inflation gradually: Most likely solution as it devalues the value of currency

“Inflation is an insidious hidden tax. It’s a robber and a thief that destroys our purchasing power. It destroys the value of savings, of stocks, of bonds, even of equity in real estate. But thankfully, it also destroys the value of debt.”

Jason goes on to share examples of how a $100 bill decreases in value and how it works in favor for a real estate investor.

Borrowing to the Hilt

“Inflation is the most powerful method of wealth distribution known to man“.

Jason only likes one kind of debt: Fixed rate, long term debt in the form of an income producing real estate property.

He tells the story of a couple who buys a house in 1972 with a 30-year mortgage [33:22]

The mortgage rate for a 30-year mortgage was 7.37%. If you put down 20 percent on an $18,000 home in 1972 then you would borrow $14,000 and the payment would be about $100 a month.

However, the dollar deflates to about 40 cents by 1984. This means the couple was only paying $487 per year (about $40.58 per month) in an inflation induced economy – even though the checks written to the mortgage company remained $100 a month.

Find more about Jason Hartman at JasonHartman.com

Disclaimer from Steve

This is not an endorsement nor is it a dismissal of Jason’s investing philosophy. Seek the advice of a professional before making any decisions that could impact your financial future.

Announcing: The Midwest Mastermind Event

Join Ryan Rhoten, Dustin Hartzler, myself and a special event guest to find clarity, get focused, and grow your business.

This is a real, in person mastermind experience. Only the those with dedication and desire should attend. [23:45]

Morning and afternoon meals are provided for you and $450 in bonuses will be provided by your hosts.

HURRY! Early Bird tickets won’t last