jim@blankenshipfinancial.com (Jim Blankenship), Author at FIGuide

How To Turn $5,000 A Year Into a $33 Million Legacy

May 13 2019

With a headline like that I bet you’re thinking this is one of those wild & crazy get rich schemes. However, it’s really just a hypothetical illustration of the great benefits of three factors that can work in your favor in building a legacy:

compounding interest
Roth IRA tax laws (including IRA stretch provisions)
time

What follows is an example of how you can make those three factors work together to create this $33 million legacy.

How It All Started…

Once upon a time, there was this guy named Joe. Joe is 20 years old, working part-time making decent …

How Property Transfers At Death

Apr 24 2019

divorce throws a curve — Photo courtesy of Bec Brown via Unsplash.com.

When you die, the way in which your property is handled will
depend on the type of documents (or lack thereof) you’ve set up before your
death. The following is a summary of the ways your property transfers to heirs when you pass away.

Life Insurance. At death, life insurance proceeds are passed to your beneficiaries (and in most cases, tax free). For example, if you have a life insurance policy with a face amount of $500,000, when you die, your
beneficiaries receive the $500,000 face amount tax free.

When you purchase …

Let It All Go – IRS gives you 11 years…

Apr 08 2019

When you were a kid, did you ever dream of being able to just let it all go – not having to follow any rules, no penalties, no restrictions? What if I told you that the IRS provides you with just such an environment – where you are free to literally do (or not do) almost anything you want with your IRA? Including buying yourself that octopus costume you always wanted?

So just where is this nirvana? Where you can just go willy-nilly and do whatever suits you with your IRA? It’s not a where, but rather, when.

Between …

Credits and Deductions

Mar 29 2019

Let’s talk a little bit about tax credits and tax deductions.
Both can be used to help reduce or avoid taxation but behave differently when it comes to doing so.

Tax deductions are beneficial because help lower the amount
of your income subject to taxation. Deductions may be either “above the line” or for AGI, or “below the line” or from AGI. The line in the sand in this
scenario is of course, AGI (adjusted gross income).

Above the line deductions are beneficial because they reduce gross income to arrive at AGI. A lower AGI may result in being able …

Why track expenses?

Mar 18 2019

One of the primary things that we suggest to clients is to track expenses. In some cases, this means noting down each expense as you make it, daily, so that even the incidental cash outlays are tracked. Another way to do this is to use an automated method, one of the many apps available, to monitor your expenses through your credit card and bank accounts. Either way, when you track expenses there are a couple of outcomes that can have a positive influence on your financial life. The first is that you become more aware of each outlay of money,… Read More

Author - jim@blankenshipfinancial.com (Jim Blankenship)

How It All Started…