Archive for September, 2008

Real estate tax tip – Deferring taxes from real estate exchange

Upon the sale of your property, you usually have to pay taxes on the capital gain you earned. However, under IRS Code Section 1031, you are provided an incentive by the IRS to postpone paying taxes on capital gains only if you reinvest the proceeds you earned in a like-kinded property.  This incentive is a [...]

What is 80-20 rule?

In 1906, an Italian economist, Vilfredo Pareto, noticed that 80% of the wealth generated in Italy was owned by the top 20% of the population. In the 1940s, a business management expert, Dr. Joseph Juran, observed similar phenomena in other areas of businesses, and credited Pareto by calling it the Pareto Principle, also known as [...]

Military Retirement Plan to change soon (5 years)

A new Military Retirement Plan is in the works. Using a computer model, the current system will offer “piles of cash” at critical career points to entice service members to stay or leave the force depending on the critical skills of the service individual. Citing cost efficiencies, the plan offers a fairly large lump sum payment of $30,000.00 cash at the 15 year mark which would cut a service member’s lifetime retirement benefit by more than $300,000.00


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