Who hasn’t heard the old cliché that the only two things in life you can’t escape are death and taxes? If you have never questioned this statement, then you have accepted the fact that you are going to be taxed to death. Well at least I can help you avoid one of the two.
When I recently met with a husband and wife tax client with a special-needs child, we reviewed their past five years of tax returns. It appeared that from 2004 to 2009 the effective tax rate (the percent they actually pay) went up from 8.0 to 12.32. That means that they experienced more than a 50-percent increase in the taxes they paid to Uncle Scam.

So what can you do if We The People can’t stop Congress from increasing our tax rates ever so slightly each year so that we don’t really see or feel the increase? Well there are many solutions which may include products like options, annuities, life insurance or other investments that can protect and preserve your future and save you from a shake down by the government in the form of taxes.

I have seen many people run and buy one of these financial products from their so-called trusted adviser, brother-in-law, cousin or some unknown bank person. This product purchase might benefit you, but you should question why that sales person recommend that specific product. Of course it was the commission or fee, but they will give you a long list of industry jargon identifying advantages and disadvantages. However, ask them why they recommended it and how it saves you taxes. You will quickly discover that they really have no idea and even hide behind a common disclaimer on everything they present to you: “We do not provide tax advice. Please consult your tax adviser.”

Having the ability and knowledge to help you avoid taxes, your largest expense during your life time, is how I differentiate myself from all other financial advisers. They talk sales jargon and think commission. I talk strategy and think solutions to help you protect your money and keep you from giving it to the government foolishly.

Which approach seems more practical, buying a product or buying into a solution that involves the right product for your situation?

I urge you and your spouse to join the ranks of the prepared and call me today.

The simple truth is the less you plan, the more you pay!

Charles has master’s degrees in Taxation, Accounting and Education. Charles can be reached at 954-559-8556 or at charles@cehow.com.

Many of us remember the most infamous wedding vow, “Till death do us part.”  But exactly what happens to the surviving spouse after your death? Most often we leave the surviving spouse the gift of poverty, a substantial reduction in income and debts that will certainly wipe out any remaining savings.

Every day I meet with clients that avoid facing the uncomfortable realties of spousal survivor planning. Two of the most common statements of avoidance are, “I don’t care what happens after I am gone” or “He or she will get my higher Social Security check.” This is a great tragedy because when you are gone, your spouse remains in the circumstances that you have provided.

Here is the timeline of the devastating costly events that could have ultimately been avoided if lifetime income planning, insurance and estate planning were done today and over your lifetime when all options were still available.

At age 40, you did not take advantage of your good health and acquire adequate life insurance designed to last a lifetime. At age 50, you did not get a long-term care policy based on your health and before you started taking almost every advertised prescription drug on television. At age 62, you ran to start collecting your Social Security check – a huge mistake when you have a projected remaining life of 20 years.

Now fast forward to the last five years prior to your spouse’s death. You will incur medical and long-term care costs removing approximately $250,000 to $450,000 of your accumulated savings.

At death, burial and funeral cost $20,000.

After death, there will be an immediate reduction or complete elimination of any monthly pension income, if one even existed. Additionally, your surviving spouse will lose one of the two monthly Social Security checks.

All is not doom and gloom. By doing nothing your surviving spouse will receive a death benefit of $255 from Social Security. Which plan seems more practical? Planning now or do nothing?

I urge you and your spouse to join the ranks of the prepared.

The simple truth is the less you plan, the more you pay!

Charles has master’s degrees in Taxation, Accounting and Education. Charles can be reached at 954-559-8556 or at charles@cehow.com.

Every day I educate people how to responsibly protect and preserve their money, and during this process I have discovered that people are afraid to take control of their money. Many stay in their same comfort zone and have justified every excuse for failure.

You need to change the way you think about your money, and you must accept responsibility for protecting and preserving your money. What excuses are there to permit someone not to treat your money with the respect, love and care you deserve? When did it become acceptable for you to lose 40 or 50 percent of your money?

Here are some common excuses that indicate you are not protecting and preserving your money:
1. Everyone lost money, but I lost less than others did.
2. I’ve been with them for years.
3. I’ll hold it until it goes back up and then sell it.
4. I don’t even open my mail. I can’t bear to see how much it has gone down.

Did you think I was bashing your advisor for your IRA’s and Brokerage accounts?

If so, you really need to change the way you think about your money.

Many people are losing 40 percent of their money to pay for health and long-term care. Others are losing 40 percent of their money to the government or that frivolous law suit.

Protecting and preserving your money is an all encompassing process that requires a head coach to execute the plays. Has your coach taken action to protect and preserve your money with a game plan that addresses the following?
1.    health insurance
2.    long-term care insurance
3.    liability insurance
4.    principal protected investments
5.    maximizing your lifetime social security benefits
6.    reducing the tax monkey off your back.

I urge you to join the ranks of the prepared. When you change the way you think about your money, you will have taken care of the most important thing: YOU!

The simple truth is the less you plan, the more you pay.

Charles has master’s degrees in Taxation, Accounting & Education. Charles can be reached at 954-559-8556 or at charles@cehow.com.

If you are going to walk this long journey of life, you better make sure you’re wearing the right pair of shoes.

Selecting the right pair of shoes is not just based on comfort and style but on understanding that not everyone’s feet are the same size or width. The same understanding applies when developing an effective strategy to provide cash flow for a lifetime and maintaining quality of life.

Helping clients identify their own traits, behaviors and situations helps select a plan more likely to succeed. Which ones might apply to you?

Deniers: always think they can take action tomorrow because retirement is too far away. They avoid systematically reducing the largest potential risks in life with disability, life or long-term care insurance until it is too late.

Strugglers: constantly encounter financial setbacks and perceived emergencies that sabotage their retirement and savings.
Impulsive: hope to retire early but have saved no more than $10,000 to provide retirement income. They struggle with the conflict of working well into their 70s to maintain their current lifestyle and downsizing their standard of living to basics necessities.

Cautious Savers: have already started to save but have no means to pay for future medical or long-term care. They can maintain their lifestyle but will be financially devastated when the first medical or health issue arises because they don’t have employer or Medicare medical coverage.

Sandwich Generation: care givers caught between taking care of a parent or a spouse and/or child. They do the right things for the right reasons, and in the end, they take 10 years off their life expectancy and are left in poverty from the cost of caring for others.

I urge you to join the ranks of the prepared.

When you change the way you think about life, you will take care of the most important thing: YOU!

The simple truth is the less you plan, the more you pay!

Charles has master’s degrees in Taxation, Accounting & Education. Charles can be reached at 954-559-8556 or at charles@cehow.com, and he holds a “CHAT with CHARLES” open seminar every Wednesday from 7:30 to 9 p.m. at 5892 Stirling Road #5.