As the entire economy goes the way of last week’s pot roast, one finds them self looking for any opportunity to save a few pennies. Scouring through my finances and observing the inverse relationship between the 48% loss in my 401k and my blood pressure; it hit me, reduce my taxable income. This allows me to have more money in my pocket month to month while having the luxury of NOT funding these poorly executed bailouts, essentially growing your top line while keeping your bottom line constant. How you ask? Simply get married.
I know your thinking; well I am not seeing anyone right now. That’s the beautiful part; this is purely a marriage for a tax break. According to Forbes married couples pay 29% of their combined salaries in taxes. This is compared to the 35% that their single counterparts fork over every year in taxes. The next question that probably comes to mind is the relatively small upside for a potential huge investment into this “loveless” marriage. Well what makes this works is the rock solid prenuptial agreement that must be in place (please note I am not a lawyer nor do I have any legal advice. Anything on this page is purely opinionated commentary and should not be construed as legitimate advice in anyway). Here are a few of the important things to cover:
1. This marriage does not entitle either of the participating parties to their partners assets including current, past or future.
2. By agreeing to be wed, both parties acknowledge this is not an entitlement to a formal wedding, ring or any reception. Instead the agreement provides for the minimum ceremony allowed by law for the two be legal married.
3. This marriage does not entitle either party to food, shelter, or emotional support of any kind.
4. Finally this marriage is not time bound in anyway. Both parties agree to remain together until either/both parties find their “love bound” marriage partner and mutually agree to a separation. At which point the marriage will be legally voided by court order without a disposition of assets.
I know this sounds a bit harsh, but it’s to provide both parties with the maximum benefit. In fact the two people never even have to see each other. Once a year they both just need to drop their W-2s and 1099s off at the same accountant. I think this just might work……
As I sat at the pump filling up my car today for $4.53/US Gal for premium, it dawned on me that gas is becoming an appreciating commodity. Bear with me for a second. As we look at the national average for lets say a 5 year CD, we see and APR of 3.62%. The latest number on inflation from April 2007 to April 2008 (based of CPI) is 3.9%. In other words the 5 year CD would not keep your green back buying power up with inflation.
Now for the sake of this argument lets look at something a bit shorter, say 2 months. US national average for a 2 month CD is 1.87%. Lets compare this to the increase in gasoline prices in California over the last to months (April 2008 to June 2008); in this 2 month period gas prices have risen a staggering 9%.
So in this inflationary time should I be investing in gas? Should I be saving my milk cartons to fill with gas and then keep in my garage to use in my car later or maybe sell to my neighbors? Kinda makes you think.......Happy driving.
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