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Trump SPAC Investing

October 22, 2021 by Finance Gourmet

Anyone who reads Finance Gourmet on a regular basis knows that the new Trump SPAC isn’t the kind of thing I’m going to analyze, let alone recommend investing in. But, for some bizarre reason, I keep get some questions, so here is some really quick Trump SPAC company facts. What Is a SPAC? SPAC stands for Special Purpose Acquisition Company. It is sometimes called a blank-check firm. It’s a weird setup where a company that is a publicly traded company buys a private company, thereby acquiring its business and making it a publicly traded company without having to go through the official IPO process. What Is Trump’s SPAC? In this case, Trump Media & Technology Group, which has no products, no revenues, and no profits. Is merging with already publicly traded company called Digital World Acquisition Group. Now, Trump Media & Technology Group can be publicly traded. Check out my Zelle review. Why Is Trump’s SPAC rising so much? If you remember earlier this year when numerous investors piled into AMC in part as some sort of crusade to stick it to the man, then you have some idea of what is going on here. Investors, some old, some brand …

Is Verizon Stock a Buy Right Now?

October 20, 2021 by Finance Gourmet

Verizon just reported its third-quarter results. As always, the finance news is reporting whether or not Verizon stock beat estimates. If that’s the kind of quick news you need to see, then yes, Verizon stock beat estimates for earnings, but revenue was slightly under estimates. Now that we’ve gotten the skin deep financial analysis out of the way, let’s dig in and see if Verizon stock will help us achieve financial independence. Verizon Stock Analysis I’ve owned Verizon stock forever. It pays a solid dividend and as an enormous telecommunications it isn’t going away without a big warning, so it fits perfectly in my non-retirement stock portfolio as a bond-stock, or value stock, if you prefer. Thanks to those decent earnings, Verizon stock is rising today, but it’s still down for the year, and year-to-date. As of yesterday’s close, the 12-month dividend yield stood at almost 5%, at 4.89%. You can’t get an interest rate like that anywhere today. So, if you’re willing to hold Verizon stock as a dividend paying bond-like investment for a few years, chances are good that you can at least get your principal (cost basis) back. And, if Verizon happens to have a good few …

Is Paying Taxes Patriotic?

October 7, 2021 by Finance Gourmet

As the end of the year approaches, I’ll be focusing on tax breaks and deductions that can reduce your 2021 income taxes. Every once and a while as I help readers, friends, and family avoid paying higher taxes someone asks whether avoiding taxes is patriotic. Remember that you are an American. As an American, you live in a democracy (technically a republic) and you vote to elect representatives who go on to make laws, rules, and regulations. As an American, it is your duty to comply with these laws, rules, and regulations. Beyond that you are free to do what is best for you, your family, and your community. The influential jurist Learned Hand (No, I’m serious, he is a real person) once said, Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes. Gregory v. Helvering, 69 F.2d 809, 810 (2d Cir. 1934) Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. …

Will Fed Raise Rates Sooner Than Expected?

October 6, 2021 by Finance Gourmet

There are several economists out there predicting that rising inflation will push the Federal Reserve to raise interest rates sooner than project. In fact, half of the Fed Board was talking about a rate increase in 2022 instead of the previously telegraphed 2024. But, does that mean The Fed will raise rates sooner than previously stated? Inflation Isn’t Coming All of this is predicated on inflation rising. The concern right now is that prices have been rising this year. This is all true, but this is October and that means the holiday shopping season is upon us, and chances are it won’t look very good come January. We’ve already seen the job reports showing that job growth is slowing despite a supposed worker shortage. Unemployed people spend a lot less at Christmas. But, there is more than that. Employed people who know unemployed people spend less as well due to a fear that they could soon be unemployed as well. Add to that reports that there are going to be supply chain problems, and that container ships have to wait excessive times to get their cargo unloaded by dock workers on the west coast and you end up with a …

Deduct Home Office on Taxes

December 7, 2021September 30, 2021 by Finance Gourmet

A home office tax deduction can be a great way to reduce your taxes if you own a small business. The home office deduction gets a bad rap because a few years ago, deducting a home office was seen as an “audit trigger.” However, that issue was blown out of proportion then, and it is almost a non-issue these days, provided you do have a business and a legitimate home office. So, how do you deduct home office on taxes? How To Qualify for a Home Office Deduction Qualifying for a home office tax deduction for your business is pretty simple, providing you have a home office that you use. The official rules state that your home office must be your primary place of business, and that you use the office exclusively for that business. In other words, you can’t deduct the little area you have setup in the corner of your living room as a home office. People giving tax advice will often go overboard here saying things like, if there is even one toy in your office, then it is disallowed as a deduction. This scares legitimate small business owners with home offices from deduction them sometimes. Keep …

CollegeInvest 529 Plan Fees Reduced

September 29, 2021 by Finance Gourmet

It’s always nice to get good news. CollegeInvest 529 Reduces Feeds for Direct Portfolio According to a recent release from CollegeInvest CEO Angela Baier, the administrative fee for the CollegeInvest Direct Portfolio was reduced from 0.32% to 0.31% on August 1, 2021. That means more of those college savings dollars stay in your 529 account, and less go to expenses. Remember, this only applies to the Direct Portfolio at CollegeInvest and not the CollegeInvest Scholars Choice, Smart Choice, or Stable Value Plus plans. A word about the Direct Portfolio at CollegeInvest Either the folks who started up CollegeInvest didn’t consult anyone with any knowledge about investing and marketing, or they DID consult someone, and that someone was working for the investment industry more than they were for the people of Colorado. Either way, the resulting Colorado 529 plan system ended up being a bit of a confusing mess for Coloradoans looking to invest money for college. So, CollegeInvest is the overall umbrella for all Colorado 529 plans. Colorado has four 529 plans. So, to access your 529 account online you go through a CollegeInvest login at collegeinveset.com. Once you get to CollegeInvest online there are FOUR different Colorado 529 plan …

Is Capital One Quicksilver Card Worth It?

September 28, 2021 by Finance Gourmet

Capital One sent me a marketing mailer for the Capital One Quicksilver Card. Lately, I’m about racking up points or miles in order to travel first class for free, but a good cash back card is useful for many people. So if Capital One is going to send me credit card offers in the mail, I’ll write up a personal finance article about it. Win-Win! Capital One Quicksilver Cash Back Card So, unlike the Capital One Venture Card, or the Capital One VentureOne Rewards card, which are travel rewards cards where you earn Capital One rewards points and redeem them for items on the Capital One rewards chart, the Capital One Quicksilver card is a cash back card. Current Capital One Quicksilver Offer Different people get different offers from credit card companies based largely on their credit report and credit score. That’s why it is important to get a look a your free credit score and keep an eye on how your credit is doing. The offer that came in the mail is a $200 one-time cash bonus and 0% interest rate until December 2022. It would also offer unlimited 1.5% cash back on every purchase, along with no annual …

401(k) Plan Blackout Period

December 8, 2021September 23, 2021 by Finance Gourmet

With the meltdown of the banking industry just the latest in a long line of shenanigans that Main Street remembers happening thanks to Wall Street, it is no wonder that ordinary people are nervous about their finances. In particular, many people are worried about their 401(k) and how they will ever be able to retire if things keep happening to their hard-earned savings and investments. That is why getting an official looking letter in the mail or delivered at work informing you of your “rights” and about an upcoming blackout period can make even savvy investors nervous. Fortunately, it is usually nothing to worry about. 401K Changing Plan Administrators All 401(k) plans are administered by a third-party. This arrangement protects workers retirement savings by ensuring that the company does not have any access to the money invested by workers in their defined contribution plans like a 401k plan. The third-party is a financial company such as a mutual fund company, insurance company, bank, or brokerage, which takes on the responsibility of accepting deposits, investing money into the proper funds or other investment choices, and keeping track of those investments. And, when the time comes, this third-party is also in charge …

Uber’s First “Profit”

September 22, 2021 by Finance Gourmet

One of the reasons I write Finance Gourmet is because of all the bizarre finance articles out there masquerading as news while actually serving as cheerleading, PR pieces for companies. It’s a little bit like those articles from White House press briefings that are basically stenographers taking the White House pronouncements as the full news while leaving out all sorts of necessary information just because the Press Secretary didn’t serve it up on a platter. Uber Projects Quarterly Profit The headlines out there in the financial press all say that Uber projects that it might have its first every quarterly profit next quarter. The facts? Well… It’s always refreshing when the non-finance guys aren’t willing to go along with the company dog and pony show. I don’t get to quote Gizmodo a lot here on a blog about financial independence, but the guys over at Gizmodo, where they write about technology, get full marks for their headline, “Uber Says It’s on Track to Maybe Make a Fake Profit.” Now THAT’S a legitimate headline. Even the subheadline spits some truth. Uber’s profit will be based upon adjusted EBITDA. If you’re into investing enough, you’ve heard of EBITDA. It’s a real financial …