Ron Caruthers Profile picture
Financial Morpheus. If you've been lied to about money your entire life, when would you want to know? I teach you the truth about your money and taxes.
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Jun 7, 2023 10 tweets 2 min read
1. THE number ONE thing that can wreck your retirement

AND how to avoid it.

I've been in the finance game since my early 20's, so I've seen what a lot of folks have done right, and what a LOT have done wrong.

Here is what you want to pay attention to: 2. SEQUENCE RISK is one that a lot of people ignore.

Once you begin taking distributions from an account, it's not just WHAT you earn on your accounts, it's WHEN you earn the money as well.

And if you take losses in the early years, the effect can be devastating.
Jun 6, 2023 13 tweets 3 min read
1. Born free, but taxed to death.

It was a bumper sticker in the 80's, but you pay a LOT more than just your Social Security, Federal and State income taxes.

Here is a list of......

94 (!!!!!!!!) other taxes that you pay.

Be prepared to read it and cry. 2. Here are the 97 taxes in the US tax code:

Air Transportation Taxes
Biodiesel Fuel Taxes
Building Permit Taxes
Business Registration Fees
Capital Gains Taxes
Cigarette Taxes
Court Fines
Disposal Fees
Dog License Taxes
Drivers License Fees
Jun 5, 2023 10 tweets 2 min read
1. Everyone on the internet teaches you how to get rich.

The problem is that NOBODY teaches you how to be WEALTHY.

JUST making $$ doesn't make you wealthy....

KEEPING it does.

After 30+ years of tax planning, here is how not to get screwed by taxes. 2. Yes, you need to increase your income, but I've seen countless people make more money only to NEVER actually see it in profit.

Hopefully, these 3 tips will help you to retain more wealth:
May 4, 2023 10 tweets 3 min read
1. When I was 13, I lied about my age to get hired bussing tables

I could’ve spent my summer afternoons goofing off, but I wanted to make money.

Every young man should have this healthy drive.

And if it isn't getting cultivated young, it won't show up at 30. 2. There was recent outrage I saw online… (big surprise!)

A McDonalds in the Midwest had a sign in their window that said

“Hiring 15 years old with a valid workers permit”

I scrolled through the comments…

“Child labor…”

“This is abuse…”

It got me thinking...
Dec 22, 2022 8 tweets 2 min read
1. 3 things I would do before the end of the year:

First, if you do NOT have a will or a trust, fix that.

If you don't have an estate plan, your state will have one for you, and your family will NOT like it.

And write down your logins and passwords so they can get to stuff 2. Next, I say all the time: the tax code was written for the self-employed, the investor, and the business owner.

DON'T say you can't have one.

I've known exactly ONE client over the last 3 decades that had a contract where her company 'owned' her brain.
Dec 5, 2022 8 tweets 2 min read
1. Where I would invest $10,000 (or some number close to that) right now.

So the markets are starting to come back somewhat, so where, exactly, would I invest $10,000 right now (or $5,000 or $15,000....some number that is decent but not like $50,000)

Here is what I would do: 2. If I had ANY money in traditional IRA's or SEP plans or old 401ks, I would figure out EXACTLY how much I could transfer to a ROTH and use my $10,000 to pay the taxes due and get them over with.

For instance, if I was in the 22% tax bracket, and 6% state, that's 28% total.
Sep 21, 2022 33 tweets 6 min read
1. Why your 401k sucks: With Math

Here is why your traditional 401k, SEP and IRA's suck (Roth options are great):

Short answer: Because you are not 'saving' taxes, you are postponing them.

AND you are postponing the calculation on the tax.

Here's the math: 2. If you're 30, single, making $120,000 and you maxing out your 401k, here is what you're current tax picture looks like:

Salary: $120,000
401k contribution: $19,500
Gross taxable: (federal) $100,500
Standard deduction: $12,950

Net taxable income: $87,550

Fed Tax: $14,878
Sep 20, 2022 4 tweets 1 min read
1. 🚨🚨🚨

Congress throws around money like drunken sailors on shore leave....with due respect to drunken sailors since THEY at least, spend their OWN money.

But to give you some idea of the amounts of money we're talking about: 2. If $1 equals one second, and there are 86,400 seconds in a day.

One day is $86,400.

One year is $31 million.

Guess how long ago $1 trillion would be?

Go on.....guess:
Sep 19, 2022 5 tweets 1 min read
1. I promised to write about the math behind WHY your 401k sucks today.

And I will.

In fact, I'll be writing about it all week long.

But first, something to think about:

The average home price in America right now is $428,000.

Most people finance for 30 years 2. What is THE first 2 questions you ask about that mortgage?

-What is the interest rate?

-And what is the payment?

Question: Would you use a mortgage company that refused to tell you what the interest rate was?

Especially if they were notorious for changing it often
Sep 2, 2022 53 tweets 19 min read
1. So ARE 401k's a deal with the devil as I claimed previously?

You can read that tweet AND the many comments telling me I'm wrong (and one hag saying I needed to lose my licenses) here. 2. But the question remains, ARE they good or bad?

And should you invest in them beyond the match?

Let's dive in a take a look at the math that 'they' aren't telling you.
Sep 1, 2022 14 tweets 4 min read
1. Alright, so I had a tweet that stirred up some controversy about 401ks being a 'deal with the devil'.

Yeah, I could have worded it better, and I did clarify to ALWAYS take the match.

Still, this fool thinks he insulted me by calling me an insurance salesman. 2. So, let's discuss that.

BTW, I did not mention insurance in the tweet.

Like, at all.

He, and a few others, projected that my tweet about 401ks and IRAs was somehow about insurance.

Which it really wasn't. Roth IRA's, brokerage accounts and even C corporations are all good
Aug 22, 2022 22 tweets 5 min read
1. What to do if you get an IRS audit notice: Part 1

Audit Basics (tips will come next)

🧵

Here's what to do after you're done crying/praying/cursing fate.

First off, there are 3 types of audits:

-correspondence;

-Office (you go to them)

-Field (they come to you). 1.5 If you did NOT read my thread on how not to get audited in the first place, then be sure to check that out first.

You can find it here:
Aug 17, 2022 28 tweets 6 min read
1. How NOT to get audited.

🧵

First off, with 87,000 new gun-toting IRS agents (well, some of them, at least) your odds of getting audited are going to increase.

Especially if you:

A) have a business

B) make a lot of money

or

C) get the Earned Income Credit. 2. And, full disclosure: there IS no way to guarantee that you won't get audited.

Period.

Except to not file your returns, and even then, the IRS can do something called a SFR or Substitute for Return.

With that, THEY fill out your return for you with NO deductions.

Not good
Aug 16, 2022 9 tweets 6 min read
1. My thoughts on extended warranties. (and a funny and sad story)

If you want to point and laugh at me, this is the thread for you

First off, @ConsumerReports says they're a waste of time since 55% of the people who buy them, especially for cars, never use them. @ConsumerReports 2. That video of theirs is here:

consumerreports.org/video/view/car…
Aug 8, 2022 24 tweets 5 min read
1. How to select a tax professional that works for YOU and NOT the IRS.

🧵

First off, many people have the false impression that just because someone is an accountant or CPA they are expert in taxes.

About 80% of accounting fees across the country are from NON tax sources 2.

Unlike doctors, accountants are not formally categorized into various specialties like tax specialist or business tax specialist.

Unless it is a graduate tax program most accounting education including the CPA exam is NOT on taxes.
May 12, 2022 9 tweets 2 min read
1. The stock market dropped 22.6% in a single day back on Black Monday

October 19th,1987

People panicked, as you can imagine, but here is some historical context for you to keep in mind: 2.

-It had risen 44% in the prior 7 months before;

-It gained back 57% of those losses by Wednesday of that week.

-It was at all time highs less than 2 years later.

So markets have crashed since the beginning of time.

The only questions are:
May 9, 2022 4 tweets 2 min read
This is an interesting comment about the fees on life insurance contract, which is one of the biggest drawbacks or flaws, but these are often misunderstood.

They ARE higher.....in the first few years.

But, if the contract is structured properly for growth, go way down over time 2. As far as the caps or limits, not all companies have them, so we prefer to use companies that do NOT have a cap on your interest earned.

However, keep in mind, if the market is up, a life insurance policy is NOT supposed to keep up with it.

Merely get close.
Apr 26, 2022 13 tweets 3 min read
1. The math 'THEY' aren't telling you about your IRA's and 401k's.

If you ask anyone what the biggest tax savings vehicles, most people will answer the interest deduction on their mortgage, and their 401k, IRA, 403b, SEP, etc.

However, here is the math why that is NOT accurate 2. Let's say you're 30 years old, and going to work until you're 65, and you're going to make a $6,000 IRA contribution.

Over 35 years, you contribute $210,000.

That's $6,000 a year for 35 years.
Apr 6, 2022 10 tweets 2 min read
1. 401k Loans: A Primer

If you have a 401k, you've likely heard that you can take a loan on them, so I wanted to give you a breakdown of the pros AND cons of a 401k loan

OK, so, here we go:

If you have a 401k, you can take a loan on it IF your company lets you. 2. This is a HUGE point, because not all companies DO let you borrow, so be sure to find this out before you actually need or want the money.

If they allow it, you are allowed to borrow 50% of the balance up to $50,000.
Feb 5, 2022 10 tweets 6 min read
1. So, as I was 'congratulating' the U.S. on having a National Debt of over $30 Trillion.

That's $30,000,000,000,000, which is a lot of money, in case you were wondering.

Anyways, that brought up the question, WHO is this money owed to?

If you care, here is the answer: 2. First off, this thread is for @_kennyj and @cpat10 who asked what I'm sure a lot of you were thinking.

OK, so, it breaks down into internal and external debt.

Internal: Politicians have been robbing the Social Security Trust fund blind for DECADES.
Feb 1, 2022 35 tweets 21 min read
1. Are you a business owner that's expanding?

Here is a long thread about whether someone is a 1099 independent contractor OR should be a W2 employee.

This is going to be technical (apologies), but it may keep you out of a ton of trouble down the road with the IRS 2. I'm not big on disclaimers, as you guys probably know, but this is one time I'm going to put one in.

I know a LOT about taxes, but they change all the time, especially here.

So, it's worth getting an opinion from someone familiar with your situation, and not a rando online.