The Ramsey Show (December 3, 2021)

Promissory Note Appraisal and Valuation Discounts

According to the IRS, if you give someone money or property during your life, you may be subject to federal gift tax. The money and property you own when you die (your estate) may be subject to federal estate tax. If you sell certain assets, you may be subject to federal tax if it is a “taxable event.”

The ‘Save For Retirement’ Formula Is Obsolete

Want to be able to fund your ideal lifestyle one day? The save for retirement formula only works under one condition.

A Discounted Promissory Note Value Is Good

All investors want their investment accounts (IRA accounts) to be worth as little as legally permissible for taxation and fee expense calculations—but, worth as much as possible for spending purposes. This result can be accomplished by applying generally recognized, and legally permitted, valuation discounts to private promissory notes.

Discounts Applied to Determine Fair Market Value of Promissory Notes

Customarily we think of the value of investments as their cost in our books and records-“book value”. If we paid $40,000.00 for a promissory note paying 6.5% interest we normally feel its “value” is $40,000.00. But, the IRS’s definition may cause the investment to be valued for tax purposes at a very different figure. Book value is not always the same as IRS Fair Market Value.

Promissory Note Discounts for Estate and Gift Taxes

Calculating the Fair Market Value of the Promissory Note. What is the Issue? What is the Risk of an Improper Valuation? Valuation Uncertainty Can Cause Red Flags Who is Qualified to do the Appraisal?

Retirement Planning – Save Cash Now To Enjoy Its Benefits As A Retiree

It is a fact that we will reach a point in our lives where we all need to retire from our professions. You dream of a life where you will just enjoy traveling and having fun for the remainder of your life but keep in mind that there is a cost that comes with it.

Discounting Your Promissory Note Makes Good Sense

The Benefits of Discounting Your Promissory Note. Lessons I’ve Learned. Fair Market Value vs. Cost Value, Book Value, Net Asset Value.Why is a Discounted (Reduced) Appraised Value a Good Thing? What Causes the Discounted Valuation?

Social Security, The Cement Lifeboat

1935 was a bad year. German Jews were first stripped of their citizenship that lead to the most horrific cruelty in the modern era. Persia became Iran. And President Roosevelt signed the Social Security fiasco into law.

How to Make US Government Spending Habits Work Toward Your Investing Process

I first have to admit that I see Democrats and Republicans as both sides of the same coin, so to speak. I see both parties as having the wrong approach to government budget control. The smartest way to win in a casino is to play on the side of the house. Here’s how to do that.

Dangers of Framing

We discussed the flaws in mental accounting and how it negatively impacts our financial decision-making process. A key fundamental flaw in mental accounting is the effect of framing. Framing is how we tend to view our mental accounting decisions.

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