Taxes and Planning the Right Way

History of Taxes

Taxes make up a large amount of revenue for the United States government and is funded by the American citizens. Income tax is just one of the many taxes Americans must pay by law and became the 16th Amendment on July 2, 1909, and it was ratified on February 3, 1913. 

The Civil War was one of the earliest wars in American history to use income tax when Congress passed the Revenue Act of 1861. This tax was implemented on the American citizens to fund the Civil War. Originally it was used only during wartime. However, 1913 was the actual year it became law. 

The federal government taxed all income from individuals overriding the state government. These taxes also funded World War I and World War II along with every war that followed in American history. The government is meant to take the tax money and use it for what the people want the government to do for the benefit of all citizens.

Who Pays Income Taxes

Any American citizen who makes over $10,000 single, $25,000 married, or $400 working for themselves has to pay income taxes. Many Americans over pay and at the beginning of the following year, they get some of their money back through income tax refunds. Tax Planning is one of the ways that Americans can stay on top of how much taxes they owe versus how much will they get in return from the government.

Why a Tax Professional?

In many cases of tax planning, the process can be very difficult and confusing. One of the worst types of mistakes to be made by any citizen is on our taxes. This is the biggest reason we use tax professionals to assist us with all the paperwork and advise us of any updated tax laws and exemptions. 


This can save a lot of time and a lot of headaches. It can also save us a lot of money, even though we have to pay for their services. To spend a little money can save us from being audited, stiff penalties and fines, high-interest rates, and possible jail time if the penalties and fines cannot be met. All these are good reasons to let a professional handle the issues so that no mistakes are made.

How to Pay Fewer Income Taxes

There are many different ways the government gives us tax breaks when paying income taxes. All of these are known as tax deductions. One can contribute to a donation, 401K, or any retirement fund. Most college students pay on student loans. 

As long as the loans are being paid back monthly the student will have this for a tax deduction. If anyone buys a home, that is one of the biggest tax deduction through the interest payments on the mortgage. Many people itemize all their purchases throughout the year by saving every receipt.

Another way is through having the taxes prepared by a professional. This can help in two ways. One is, the money paid to the professional can be a deduction if the party is itemizing, and the other way is that the professional will know all the current laws and can get the best possible result for any refunds. 

There is also some beneficial reasons to discuss with a professional the future and taxes. This is a good strategy to get started on early so the tax collectors can stay away from knocking at one’s door for the government’s money. 

Sometimes a tax professional can be a financial advisor who can assist with information to pay less as the client gets older. This can help in the planning process, not just from the required year to year, but can paint the whole picture of a strategic plan for an individual in the future.

Tax Planning and the Future

One can always do things on their own, but one of the things that can be most beneficial is the fact that having assistance gives the upper hand to having that second eye overseeing things that can be missed. The advice is priceless, but the goal of tax planning is for the future and that is where stability must be foreseen through it all.

How Seniors Can Manage Their Finances and Living Expenses

Life after retirement can be relaxing and enjoyable. It’s something that calls for a lot of careful financial planning, though. If you want your financial situation to be smooth and stress-free post-retirement, these strategies can be extremely helpful. Intelligent senior citizens know how to take care of their finances with all the mindfulness in the world.

Be Prudent about Lending and Giving Money to Adult Children

Ample prudence is essential for seniors who want to handle their finances the smart way. Seniors are often tempted to offer their adult children financial assistance. Doing so excessively can sometimes be a bad idea, however. If you want to keep your living expenses and finances in check as a senior, then you need to have strict financial boundaries in place.

Budget Well

Budgeting is vital for seniors who want to take charge of their financial futures. It’s critical to keep track of your money situation day in and day out. Establish a budget that actually means something to you. If you want to avoid spending more than a certain amount each month, mean what you say. 




Refrain from purchasing things that are pointless or unnecessary. Focus on “trimming the fat,” too. If you have a gym membership that you don’t ever use, cancel it. Get exercise at the local park, instead.

Downsize Your Existence

Downsizing has been a big craze among savvy senior citizens in recent years. It can be terrific for seniors to think about moving to smaller homes. If your children have moved away, you probably don’t need a residence that’s equipped with three or four bedrooms. 

Maintaining a smaller structure can be a lot more economical. It can be anxiety-inducing to have to deal with all of the upkeep hassles that are associated with bigger properties.

Hire a Capable Financial Advisor

Seniors often turn to professionals for assistance with their finances. If you want to steer clear of calculation errors and all related dilemmas, then it can be helpful to recruit a professional financial advisor who has a solid track record. 

A financial advisor can meticulously assess all of your financial documents. He or she can offer you finance tips that are sound, updated and dependable as well. Advisors can even analyze costs for elderly aged care services.

Seniors need to make smart and balanced financial choices all of the time. If you’re a senior who wants to revel in maximum comfort, it can help to work with a good financial advisor. It can help to budget cautiously, too.

Do Multiple Bank Accounts Make Finances Easier to Manage?

It isn’t unheard of for people to open and maintain multiple bank accounts. If you want to handle your financial situation well, multiple bank accounts may be something to seriously consider. Maintaining several banks accounts at the same time can in some cases be extremely practical. It offers advantages that can simplify the handling of finances.

Multiple Bank Accounts Can Provide You with Diversification Advantages

Having multiple bank accounts can be suitable for individuals who are interested in financial diversification. People should refrain from safeguarding their assets in single spots. This can often be a major no-no. 

Note, too, that asset diversification can be advantageous to people who want to enhance the coverage they receive from federal deposit insurance plans they have in place.

Multiple Bank Accounts Can Be Suitable for Individuals Who Have Substantial Balances

If you’re equipped with any bank accounts that have comparatively substantial balances, then keeping track of multiple options may be up your alley. Putting money in different locations can sometimes be beneficial for individuals who are looking to steer clear of perhaps going beyond various insurance restrictions, too.

Multiple Bank Accounts Enable You to Distinguish between Your Checking and Savings Accounts Easily

If you’re looking into opening a savings account, you should do some research in advance. Maintaining numerous bank accounts enables individuals to keep their checking and saving accounts apart. 

It isn’t uncommon for people to access their savings accounts for purposes that have nothing to do with gathering money for later times, however. If you want to dodge that typical pitfall, getting other bank accounts can be intelligent.

Multiple Bank Accounts Can Be Terrific for People Who Struggle with Choices

Some people struggle with choices. It can be hard for some people to make choices regarding orders at dining establishments. It can be hard for some people to make choices that relate to their financial situations, too. 

If you open several bank accounts, you can test them all thoroughly. Assessing various financial institutions can help you assess quality. It can help you assess everything from representative behavior to feature convenience.

Handling finances can be a huge hassle for many people in this world. It’s something that people have to do, however. If you want to make taking care of your finances as simple as possible, you should look into maybe opening several bank accounts. Some of the savviest finance gurus around advocate the concept of keeping more than one bank account.

Reasons Why You Should Perform Forex Trading Through ECN Brokers

Store Forex currency trading is normally executed by means of either market makers or electronic communications networks, furthermore referred to as ECNs. A lot of Forex trading traders favor ECN brokers as a result of its several natural pros.

What is an ECN?

ECN brokers could be thought of as the bridge connecting participants within the forex market directly to one another, eliminating the particular need for a dealing desk. 

ECNs acquire prices from multiple market individuals, such as banks and market makers, and other traders who are people of the network, plus stream the best bid/ask prices on their investing platforms.

What are the features of using ECN agents?

Trade in invisibility

Oftentimes, trading with the application of ECN brokerage companies can be done in an anonymous manner. It enables traders to deal on neutral prices. Being able to execute a number of trades anonymously is attractive for some traders, specifically those who desire to complete large trades. 



It is because it allows them in order to trade without drawing interest to their strategies or recent market positions that will could influence market costs.

Better prices

Considering the fact that a good ECN broker gets cost quotations from numerous market participants, it will offer you with tighter bid/ask costs than what you can acquire from other varieties associated with Forex brokerage firms. 

Furthermore, ECNs do not perform any role in establishing prices, and therefore, there is usually a much-reduced risk of price manipulation.

Propagates aren't fixed

In comparison to market makers, ECN brokers have no control over the bid/ask prices plus so cannot give the fixed spread at almost all times. Throughout very active trading periods, you can get little or no spread from all, especially for extremely water currency pairs including the majors. 

A tighter spread is usually sought after by some market participants, day investors specifically, as it allows them to fill their particular orders at the prices they desire.

Better marketplace access

Apart from retail Forex traders, ECNs also relay bid/ask prices through numerous institutional market manufacturers like banks, financial establishments, and other prominent organizations.

Instantaneous trading

Utilizing an ECN broker permits you to definitely business immediately. As an ECN client, you get to enjoy reliable live loading of best executable prices, and you receive instant confirmation of trades since they are dealt. Because said before, there is no middleman, so re-quotes are unlikely.

They are not necessarily going to trade towards you

Since an ECN broker directly matches market participants, there is just no possibility of them trading against you - a criticism that is normally directed towards some market makers. A good ECN broker will merely pass your orders to a loan company or one more client on the opposing ending of the transaction.

There are lots of Forex traders are putting their orders via ECN brokers. This preference can be explained by numerous advantages inherent to this sort of broker, which include tighter spreads and much better market access.