Lynnette Khalfani - The Money Coach™ Newsletter 12-06-2004
 

Happy Holidays!

 

In the spirit of the season, I’m offering special gifts to a few dozen lucky readers. 

 

Gift No. 1: $100 – to one person.

 

Gift No. 2: A free copy of my latest book, Zero Debt – to 25 people.

 

Frankly, I think a copy of Zero Debt is worth far more than the hundred bucks. But I’ll let you be the judge of that. J

 

How can you get the money or a copy of the book? Simple. Just e-mail books@themoneycoach.net by Monday Dec. 13th and explain – in 200 words or less – “Why I Need Zero Debt.” I’ll pick gift recipients and announce them by Friday December 17th. The cash and the books will be sent the following week. That’s it. Good luck!

 

For those who haven’t heard, the Zero Debt revolution is sweeping the country.

 

 Zero Debt just hit the New York Times extended bestsellers list! Only two months after publication, we’ve completed our third printing and have 60,000 copies in print. Zero Debt is currently #8 on the New York Times   business paperback bestsellers list. See the Top 10 list here.

 

I’m hoping this is the week we push Zero Debt into the top 5 – and with your help I know we can do it.

 

For those of you who don’t need to receive a FREE copy of Zero Debt, I’d be enormously grateful if you’d purchase a copy as a holiday gift for a friend, family member or colleague. (Trust me: that person will thank you as well).

 

Just stop by your local bookstore or go online to http://www.amazon.com to get a copy of Zero Debt.

 

Feel free to forward this e-mail to your list serve groups, or to anyone you know who could benefit from eliminating credit card debt and other financial woes.

 

Now for some money-management advice: For any one that needs tips on how to save money on your 2004 tax bill before the year ends, read here for a few ideas.

 

Expect to hear from me next week, in a special edition of this newsletter. I’ll share with you 5 secret strategies to boost your credit score, as well as 10 things you MUST DO to improve your finances in 2005.

 

Here’s wishing you happiness, health and wealth!

 

Best,

 

Lynnette

http://www.themoneycoach.net

 

P.S. For those of you in the greater New York area, listen to The Tavis Smiley Show on NPR at 9:00 am on Thursday morning. I’ll be on the show discussing predatory lending. All others, please check NPR for your local air times.

 

Quick Tips To Lower Your Tax Bill By Year End

 

Everybody wants to pay fewer taxes to Uncle Sam. Well, it’s not too late to lower your 2004 tax bill – if you make a couple of smart money moves before the clock strikes midnight on December 31st.

 

To save yourself big bucks come April 15th, 2005, try following some of these strategies now:

 

  1. Donate to charity before year end

Make a donation to your favorite non-profit or to some worthy organization that could use whatever goods you can spare. Frankly, a lot of us have clothing, household goods, furniture, etc. that we either don’t use or don’t want. Give it to charity and write off the donation on your tax return. Be sure to get a receipt from the organization to substantiate your deduction.

 

For those who invest, if you can afford it, consider donating stocks that have gone up in value. That way, you’ll avoid capital gains taxes for this calendar year.

 

  1. Set up an IRA and contribute to it

You actually have until April 15th 2005 to set up an Individual Retirement Account, and still claim a deduction for it in 2004. But I urge you to do it now for a few reasons: 1) You might have the best of intentions, but then come January or February (when those credit card bills roll in from your holiday shopping spree!), you might not have the money to fund your IRA. Also, if you put aside the money now, you’ll gain a little extra in interest. So the earlier you stash money into your retirement account, the better. 

 

  1. Set up a Keogh if you’re self employed

If you work for yourself, or own your own corporation, December 31 is your deadline to set up a Keogh plan. Even if you miss the Keogh deadline, you can still set up a SEP (Simplified Employee Pension plan) by the due date of your tax return (plus any extensions).

 

  1. Sell losing stocks

If you’re wondering whether to get rid of some “dogs” in your investment portfolio, there’s perhaps no better time to do so. Selling losing stocks now could help you save money. You’ll get capital gains losses that will offset any capital gains (i.e. money you’ve made on stocks/investments that have actually gone UP in value). Additionally, federal law permits you to deduct up to $3,000 of excess capital losses against your regular year income.

 

  1. Defer income

One time-tested strategy for saving money at tax time is to defer income. This means you should try to put off any “extra” income you might receive in mid or late December, and get that money instead in early 2005. That way it will be taxable in the calendar year 2005 – and won’t be due until April 15th 2006. So let’s say your employer was going to give you a year end bonus of $2,500 on December 31st. Do you really need to get that fat check to do your New Year’s Eve partying? No! So let the corporate bosses give you that bonus instead the first week of January. You’ll lower your tax bill for 2004 that way.

 

  1. Accelerate expenses

The opposite strategy of putting off income is to hurry up and pay expenses. Doesn’t matter if you’re a sole proprietor running a business or an individual working for a corporation and you itemize deductions related to your job. If you have some expenses coming due in early 2005, you might “prepay” them now – before December 31 to be able to write those expenses off sooner, thereby cutting your tax bill to Uncle Sam!