Facebook for thieves?

A creative man is motivated by the desire to achieve, not by the desire to beat others.

- Ayn Rand

This fall is already shaping up to be one of our busiest ever. We’ve had clients calling us in a panic because of all of the media clamor over rising tax rates on January 1, 2011 (and, honestly, it’s often legitimate clamor–there will be some serious changes). And the smart ones are making some quiet moves before January to plan ahead for those changes.

But while we all wait during the calm before the storm of the November 2 elections, I thought I’d take some time this week to write about something different. After all–clients pay us to worry about the tax code on their behalf, and I’ve already spent a fair amount of time urging you to meet with us.

So, this week, I thought I’d do something a little different, and give you some important information about privacy.

Privacy is a funny thing, these days of Twitter and Facebook. Frankly, I think that much of the fear about it is overblown. That said, there’s a new tactic out there used by identity thieves which is NOT overblown, and it’s called: “Facebook stalking.”

With the help of a man from IdentityTheft911.com, I’ve put together some important information for you on how to avoid this new wave of chicanery…

5 Facebook Posts You May End Up Regretting

Did you see the news recently when it was revealed that personal data of millions of Facebook users had been posted to a database open to everyone? Naturally, Facebook users, were concerned about their privacy. And then, of course, there was the news that certain Facebook applications were also leaving users extremely vulnerable.

Yet, people using Facebook, Twitter and other networks (even those with serious privacy controls) are thoughtlessly giving actionable intelligence to thieves. Adam Levin, the chairman of Identity Theft 911, says, “An awful lot of people think when they get online and communicate with their friends that they are invincible.” A seemingly benign post or piece of information could make you a target of identity thieves and traditional crooks.

So, to protect yourself, here are five things you should avoid posting online.

1. Date of birth. Really? Must you get random birthday greetings from elementary school friends? Almost 60% of social networkers post their date of birth, according to a survey by Identity Theft 911. But resist the urge to post your complete birth date — including the year — on your Facebook profile just to get a lot of messages on your big day. This is extremely valuable information for identity thieves. I know — you’re thinking only your friends see what you post. But if someone does a search for your name, that person will see often your birth date if it’s listed in your profile.

2. Child’s date of birth. When you post “Happy Birthday to my sweet Maddie, who turns 5 today,” you’re giving identity thieves valuable information about your child. When it comes to your kids, resist the urge to post any information about them. In fact, there are even more malevolent actors out there who can use this information for more than just identity theft.

3. Travel plans. I bet you’ve seen Facebook posts like this: “We’re going to the beach next week. Can’t wait!” In fact, you may be guilty of it yourself — 18% of social network users post travel times. Guess what? You’ve just extended an invitation for people to burglarize your home. In fact, recently three men in New Hampshire burglarized more than 18 homes by checking Facebook status updates to see when people wouldn’t be home. Yikes!

4. Address. If your address is on your profile AND you let people know when you’re going out of town, well, you know where I’m going with this. Nonetheless, 21% of social network users post their address.

5. Mother’s maiden name. It may seem like common sense not to post your mother’s maiden name on a social networking site, but about 11% said they did. Identity thieves will hit the jackpot if you reveal this bit of information online.

Not only should you avoid posting any of this information, but also you should fix your Facebook settings to control who sees what on your page. Further, use different passwords for social media sites than you use for financial sites, such as your bank or credit card site.

I hope I didn’t scare you too much, but that, instead, this actually helps.

‘Do it now’ tax moves

Ignorance is never better than knowledge.

-Enrico Fermi

In all of my years paying attention to the tax code, I don’t quite remember a time like this–with so much up in the air, and the political climate looking like it could shift significantly. It’s as if we’re all in a period of “stasis” until November 3rd–when we’ll see where lawmaking will be headed.

That said, there ARE certain things we *do* know. Like the fact that taxes WILL be rising in 2011. So, this is the time when it’s probably a good idea to do what you can to designate any income you might have flexibility over, to THIS year (instead of next).

I realize that for some of my clients, all of this is irrelevant. Tough times, fixed incomes, etc. But I hope that if that’s you, you’ll forgive my addressing those of my clients who are facing more “complex” financial decisions this year.

After all–our philosophy is that YOU know best how to spend YOUR money. Which is why we work so hard to help you keep more of it.

So in that spirit, I’ve put together a series of “do-it-now” tax moves, as well as some to be considering over the next month or so.

Give us a call (414-325-2040), or drop me an email if you need help with any of this!

Jon Neal’s

“Real World” Personal Strategy

Do-It-Now Tax Moves, And More

Since so many tax issues are up in the air right now, you should organize your tax moves into three categories: those you should do now, those you can decide last-minute in December, and Roth conversions.

If you have “income flexibility” in any way, your list should include:

“Do-it-Now” Moves

* Make a maximum contribution to your 401(k), which is $16,500; or $22,000 if you’re 50 or older this year.

* Sell taxable bonds now and pay the capital gains tax at 15% rather than a much higher rate in 2011.

* Make gifts of the annual exclusion amount.

“Do It Soon” Moves

* Prepare to give away large sums of money late in December. This year the gift tax is only 35% and there is no “Generation-Skipping” inheritance tax. However, you don’t want to make taxable gifts now just in case Congress reinstates the GST tax retroactively.

* Identify possible charitable contributions for deductions purposes. If taxes go up next year, you’ll want to defer these deductions.

* Accelerate your income if possible. If it looks like taxes rates will rise, you’ll want to take in as much as possible in 2010 rather than 2011.

The Roth Do-Undo

This year, taxpayers can convert regular IRAs into Roth IRAs. There are many considerations in this decision, so do give us a call about it, if you’re considering it (414-325-2040).

Good news: If you convert now, you have until October of 2011 to undo the conversion or decide whether to pay taxes in 2010 or 2011 and 2012.

After all, with Congress putting so many key tax decisions off, this kind 20-20 hindsight could come in handy.

Congress didn’t help you (tax armageddon coming)

If someone is going down the wrong road, he doesn’t need motivation to speed him up. What he needs is education to turn him around.

- Jim Rohn

Well, I was holding out hope for ALL of us (my clients, myself, and, even, Congress) that we would see some action on Capitol Hill about all of the tax hikes, changes, etc. which are coming our way January 1. Turns out, they didn’t heed my warnings, and left everything unaddressed until November, at the earliest.

Last week, I called it a “Tax Armageddon”, and after reading what I wrote–it seems a bunch of people agreed, as we have been getting a LOT of phone calls and emails. There’s a rush to get accounts squared away before Dec. 31, and to have an actual plan if the worst should occur.

Because people are anxious to see Congress do *something*–or, failing that, to make their intentions more clear. Big corporations are sitting on piles of cash reserves, as are banks, until things become more clear. But this is NOT necessarily what you should do!

The point is–every person’s situation is different. It might be *exactly* the time for you to make some decisive, strong moves in your accounts, in your business career, etc. But you’ll never know, unless you take the time to plan it out with a competent guide.

So, give us a call: 414-325-2040, or shoot me a quick email. We’ll plan together for “the worst”, and be happily-surprised *together* should Congress lower rates.

But it’s time I continue on with what I started last week, and give you the complete picture of what is coming on January 1, 2011…

The Coming Tax Armageddon in 2011 (Part 2)

As I mentioned last week, I’m being completely up front about the fact that I want to prompt you into action–hence, the dramatic language. I would not be doing an excellent job as your advisor if I did anything *but* pull out all the stops to get your attention pointed to this coming train wreck for your finances.

What I covered last week:

The Personal Income Tax Increase

The Return of the Estate Tax

New, Higher Taxes On Married Couples, Families

Higher Tax Rates on Savers and Investors

Here’s what I didn’t cover…

The Tanning Tax

This went into effect on July 1st of this year. It imposes a new, 10% excise tax on getting a tan at a tanning salon. There is no exemption for tanners making less than $250,000 per year.

The “Medicine Cabinet Tax”

Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pretax dollars to purchase non-prescription, over-the-counter medicines (except insulin).

The HSA Withdrawal Tax Hike

The tax for non-medical early withdrawals from an HSA increases from 10% to 20%. IRAs and other tax-advantaged accounts remain at 10% so keep in mind from where you are pulling money.

Brand Name Drug Tax

Tax assessment imposed on name-brand drug manufacturers is an excise tax and will result in an increase in the cost of prescription medication that the manufacturers will have to pass on to you the consumers.

“The Dreaded AMT” (Alternative Minimum Tax)

The AMT will hit over 28.5 million families, up from 4 million last year as a result of the failure of Congress to index the AMT and expiring exceptions. You will be calculating your tax twice and you will pay tax on the higher of the normal income tax or the AMT.

Small Business Expensing Cut by 90% and 50% Expensing Disappears.

Tax Increases for All Types of Businesses

Charitable Contributions from IRAs no Longer Allowed.

Under current law, a retired person with an IRA can contribute up to $100,000 per year directly to a charity from their IRA. This contribution also counts toward an annual “required minimum distribution.” This ability will no longer be there. Now is the time to accelerate your charitable planning and make the gift you want in 2010.

So, don’t be surprised at what comes down on the pike on New Year’s Day. I’m giving you plenty of warning.

But here’s where the hope comes in…

For my clients and contacts, you can rest assured that we are paying attention…and will be on top of even the procrastinating legislators. We’ll make sure you don’t make moves that you’ll regret after the fact.

And the best way to help us help YOU, is by giving us a call to talk things through this fall:

414-325-2040

*We’ll help you take advantage of these remaining months in 2010 to have your income count during this tax year, instead of 2011 (as much as you’re able to do so).

* We’ll look over your specific information, compile a list of moves for you, and give you a clear and actionable plan!

Please contact us promptly! Our schedule has been extremely busy with savvy clients who have already seen the ‘writing on the wall’.

So, send me an email, or give us a call [414-325-2040]. We’ll make sure you (and your wallet) survive this coming Armageddon.

I’m personally dedicated to the success of your family–your peace of mind! Can other tax professionals say that?