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Brought
to you by:
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About Our Firm:
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We are a client-centric financial planning firm with a focus on safety and stability. We can directly fulfill the portions of the planning that includes mortgage and insurance services. Our affiliates manage any tax planning, estate planning, securities and investments services, or we coordinate with your preferred providers.
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| QUOTES from
the
Masters... |
| On Being the Best |
On Getting Started |
| "If
a man is called to be a streetsweeper, he should sweep streets even as
Michelangelo painted, or Beethoven composed music, or Shakespeare wrote
poetry. He should sweep streets so well that all the hosts of
heaven
and earth will pause and say, here lived a great streetsweeper who did
his job well." -– Martin
Luther King,
Jr.
"Desire
is the key to motivation, but it's the determination and commitment to
an unrelenting pursuit of your goal – a commitment to excellence
– that
will enable you to attain the success you seek." -– Mario
Andretti
"The
ultimate victory in competition is derived from the inner satisfaction
of knowing that you have done your best and that you have gotten the
most
out of what you had to give." -– Howard
Cosell
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"Many
risks fail because they were not taken in time. Too many risks are
postponed
until unnecessarily elaborate preparations are made. This does not mean
that one should say, 'Damn the torpedoes, full speed ahead!' That is
foolish
and self-destructive...But don't sit back waiting for the perfect
moment.
It almost never comes." -- David
Viscott
"Don't
let what you cannot do interfere with what you can do." -- John
Wooden
"If
you wish to reach the highest, begin at the lowest." -- Publilius
Syrus
"Start
from wherever you are and with whatever you've got." -– Jim Rohn
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Marriage Penalty
Relief
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The
2003 Tax Act (Jobs and Growth Tax Relief Reconciliation Act of 2003 -
JGTRRA)
was signed into law by President Bush on May 28, 2003, followed more
recently
by the Working Families Tax Relief Act of 2004 (WFTRA), which was
signed
into law on October 4, 2004.
As
is typical of recent tax legislation, the 2003 and 2004 Tax Acts
offered
tax relief to individuals, but did so through a variety of complex
provisions
that included retroactive, temporary and phased-in/phased-out effective
dates. While some of these provisions may not apply to you, other
provisions will and you may want to revise your planning to take full
benefit
of those provisions.
Today's topic
is marriage penalty relief. If you would like additional
information
on this topic, please call my office.
Accelerated Marriage
Penalty Relief - Standard Deduction Increase
The
standard deduction for married couples was increased by JGTRRA to
double
the amount of the standard deduction for single taxpayers
- from $7,950 to $9,500 - but only
for
2003
and 2004. The Working Families Tax
Relief
Act of 2004, however, extended
the double
standard deduction for married couples through 2010.
In 2011, EGTRRA sunsets and the standard deduction reverts to a
statutory
dollar amount.
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Joint
Filer Standard Deduction (as a % of single filer standard deduction
amount)
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2002
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2003
- 2010
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2011
and later
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Not
applicable
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200%
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Not
applicable
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Planning
Notes:
| 1. |
In 2007, the standard
deduction
for married couples filing jointly is $10,700; $5,350 for single
filers. |
| 2. |
The increase in the
standard
deduction for married couples may influence whether to itemize
deductions
or take the standard deduction. Since some states with a state
income
tax allow itemizing for state income tax purposes only when itemizing
for
federal income tax purposes, additional analysis may be required to
determine
whether itemization or the standard deduction will provide the best
overall
tax results in those states. |
| 3. |
The higher standard
deduction
may require more married couples to pay alternative minimum tax (AMT). |
Accelerated Marriage
Penalty Relief - 15% Tax Bracket Increase
JGTRRA
increased the "width" of the 15% tax bracket for married couples to
twice
that for single taxpayers...again in 2003
and 2004 only. The Working Families
Tax Relief Act of 2004, however, extended the double "width" of the 15%
tax bracket for married couples through
2010.
When the Economic Growth and Tax Relief Reconciliation Act of 2001
sunsets
in 2011, the 15% tax bracket amounts will again revert to statutory
dollar
amounts.
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Joint
Filer 15% Tax Bracket Size (as a % of single filer 15% tax bracket)
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2002
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2003
- 2010
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2011
and later
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Not
applicable
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200%
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Not
applicable
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Planning
Notes:
| 1. |
In 2007, the 15% tax
bracket
for married couples filing jointly applies to taxable income greater
than
$15,650 and equal to or less than $63,700. |
| 2. |
For married couples
who
continue to itemize deductions and, as a result, don't benefit from the
increase in the standard deduction, the 15% tax bracket expansion will
provide them with some marriage penalty tax relief. |
| 3. |
The expanded 15% tax
bracket
may require more married couples to pay alternative minimum tax (AMT). |
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| MESSAGES
from
the Masters... |
THE
ANT PHILOSOPHY by Jim Rohn
Over
the years I've been teaching kids about a simple but powerful concept -
the ant philosophy. I think everybody should study ants.
They
have an amazing four-part philosophy, and here is the first part: ants
never quit. That's a good philosophy. If they're headed
somewhere
and you try to stop them, they'll look for another way. They'll
climb
over, they'll climb under, they'll climb around. They keep
looking
for another way. What a neat philosophy, to never quit looking
for
a way to get where you're supposed to go.
Second,
ants think winter all summer. That's an important
perspective.
You can't be so naive as to think summer will last forever. So
ants
are gathering in their winter food in the middle of summer.
An
ancient story says, "Don't build your house on the sand in the
summer."
Why do we need that advice? Because it is important to be
realistic.
In the summer, you've got to think storm. You've got to think
rocks
as you enjoy the sand and sun. Think ahead.
The
third part of the ant philosophy is that ants think summer all
winter.
That is so important. During the winter, ants remind themselves,
"This won't last long; we'll soon be out of here." And the first
warm day, the ants are out. If it turns cold again, they'll dive
back down, but then they come out the first warm day. They can't
wait to get out. And here's the last part of the ant
philosophy.
How much will an ant gather during the summer to prepare for the
winter?
All that he possibly can. What an incredible philosophy, the
"all-that-you-possibly-can"
philosophy.
Wow,
what a great seminar to attend - the ant seminar. Never give up,
look ahead, stay positive and do all you can.
To
Your Success,
Jim
Rohn
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in nature and should not be considered complete information on any
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contact
my office at the phone number above.
Financial Advisor Certified Mortgage Planner Private Real Estate Banker/Investor Licensed Life, Health & Annuity Agent FINRA (formerly NASD) is located at www.finra.org.
SIPC is located at www.sipc.org.
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