Pick up today’s USA Today newspaper where you will find an article on page 3B that shares strategies to buying a foreclosed property. It also includes areas of the country where the foreclosure rates are higher thereby offering opportunities should you decide to pursue this strategy.

Read what Wise Woman Investor, Anna Mills says about controlling business and personal monies…

Rule #1(The Golden Rule)-Don’t mix personal and business money. Open separate checking accounts for the business and make sure all business monies flow through that account. Even money for personal needs should have a check written to you form the business. This is good business sense and offers advantages during an IRS audit. One of the best defenses in an audit is a clean trail of financial activities.

Rule #2- Treat yourself like an employee. Instead of drawing a paycheck, most business owners take money out when they need it. Don’t be haphazard, pay yourself a regular amount on a regular basis. Even if money isn’t flowing yet, seta a small amount to take out every couple of weeks. It’s a habit that will help you keep things under control.

Rule #3-Produce and review monthly financial statements. Don’t be misled by just checking the balance in your checkbook. That can be deceiving and give you a false sense of success. It may look like all is well, however, don’t forget upcoming bills and business needs. The only true gauge of what’s in the bank is to take a close hard look at your financial statement every month.

These 3 rules may seem simple, but not following is what gets investors into financial trouble. Following them puts you in a better position to balance your business & personal finances. These rules will keep you from taking a wild ride on the financial roller coaster of feast & famine.

Happy Investing
Anna Mills

 FORBES

Adviser Soapbox
Sipping The Alphabet Soup Of Retirement Savings
Hugh Bromma, The Entrust Group 03.27.07, 6:00 PM ET IRAs, SEPs, SIMPLEs–it’s alphabet soup. And then you throw in 401(k)s, pre-tax and post-tax dollars, self-directed options and so on, and it becomes a challenge to know where you should put your retirement money. But figuring out which type of plan fits your income and circumstances is straightforward once you understand the basic criteria. 

First, anybody can have a traditional Individual Retirement Account, or IRA, regardless of income or whether you have another type of retirement plan. Unfortunately, many people have been told otherwise. This is not correct. As long as you have earned income, you can contribute to a traditional IRA. The only catch is that you may be limited to how much you can deduct from your taxes. 

Certainly being able to take a deduction is desirable, but there are also long-term benefits to having an IRA, one being that your contributions grow tax-free until you take distributions, at which time you may be in a lower tax bracket. 

Here are the key points to know about a traditional IRA: 

–Contributions may be tax-deductible. 

–Taxes are paid on earnings when withdrawn and are based on your tax rate at the time of withdrawal. 

–You may begin taking withdrawals without penalty at age 59 1/2. 

–You are required to take withdrawals at age 70 1/2. 

–Withdrawals before age 59 1/2 are subject to a 10% penalty, with some exceptions. 

–For 2007, you can contribute $4,000, plus another $1,000 if you are 50 or older. 

Another type of IRA is the Roth IRA, which is one of the best tax-free opportunities available. With a Roth IRA, you cannot deduct your contribution from your current taxes, but after that, your investments grow tax free. You do not have to pay any tax on your future withdrawals, nor are you required to take withdrawals. Here are the highlights: 

–You cannot earn more than $95,000 annually as a single person ($150,000 jointly if you are married). 

–Contributions are not tax-deductible. 

–All earnings are completely tax-free. 

–You are not required to take distributions at any age. 

–You can withdraw contributions at any time without penalty. 

–In 2007, you can contribute $4,000, plus another $1,000 if you are 50 or older. 

All IRAs must have a custodian or trustee, such as a bank. When you establish an IRA, regardless of type, you may be limited to investing the funds in what the financial institution chooses to offer. But legally, IRA funds can be invested in just about anything, including real estate (but excluding certain collectibles). The trick is to make sure that your IRA is set up as self-directed, which means you, not the custodian, select the types of investments; several companies offer truly self-directed IRAs. 

There are two other non-retirement custodial accounts that operate in a similar fashion to a Roth IRA and can be self-directed: Coverdell Education Savings Accounts (ESAs) and Health Savings Accounts (HSAs). If you have or are considering opening these types of accounts, it is worth looking into an administrator that permits self-direction. 

Additional Options For Employers 

If you are self-employed or are an employer, you have additional contribution options that work like a traditional IRA in that the amount that you contribute is tax-deductible and deposited in a traditional IRA. 

A Simplified Employee Pension (SEP-IRA) allows you to contribute a percentage of your compensation as well as deduct the contribution from your business tax return. For 2007, you can contribute up to 25% of your earnings, with a maximum of $45,000. When you calculate the percentage, the maximum amount of compensation you can consider is $225,000. 

Now the hard part is figuring out how much you can actually contribute. Because the basis of your calculation is adjusted by the amount you are contributing, the 25% maximum generally turns out to be only 20% of total compensation. That’s why your maximum amount to consider is $225,000 (20% of $225,000 equals $45,000). 

Another option is a SIMPLE, which unlike its name, is actually complex. With a Savings Incentive Match Plan for Employees, an employer is required either to match an employee’s elective contribution or to make a contribution on the employee’s behalf. One advantage of having a SIMPLE-IRA is that if you, as an employer, have earnings less than $64,000, you can contribute more than you could with a SEP-IRA, since your contribution is not based on a percentage of earnings. 

It’s important to keep in mind that SIMPLE contributions must be made in the calendar year in which the income is earned, with the last contribution made no later than Jan. 30 in the year following earnings in the preceding year. (Other IRAs, such as traditional and Roth, permit contributions until April 15 in the year following earnings, and SEP-IRA contributions, which may be made by company tax deadlines plus extensions.) If you’re planning on having a SIMPLE-IRA for 2007, you have to establish it by Oct. 1. In 2007, you can contribute up to $10,500, plus another $2,500 if you are 50 or older. As the employer .you can also match up to 3% of compensation, which adds another $1,920 if your income is $64,000, for example. If you are a sole proprietor with no employees, you can also consider an Individual Roth 401(k), which is a little more complex, but worth the effort if you earn at least $100,000. These plans are similar to a 401(k) but much easier to administer. For 2007, you can contribute up to $45,000 based on a maximum income of $225,000. The big bonus is that you can put $15,000 ($20,000 if your 50 or older) in a Roth portion of the plan (post-tax dollars) that will never be taxed again. You can also personally borrow from this plan and be your own trustee and administrator, which you can’t do with any IRA. 

The Bottom Line 

Everyone who has earned income should, if nothing else, contribute to a traditional IRA. If you qualify, a Roth IRA is a good choice if you expect to make large profits and be in the same or higher tax bracket when you retire. If you are a sole proprietor or an employer with no employees other than a spouse and partners, a self-directed Individual Roth 401(k) provides for enormous profit potential because of the broad investment capabilities: real estate, stocks, bonds, mutual funds and CDs. 

If you are not looking for the maximum tax deduction–just a small tax break–contributing to a SEP-IRA may be easier, since you don’t have the additional tax filings that an Individual Roth 401(k) requires. Also, the SEP allows you to exclude employees for three years, whereas the Individual Roth 401(k) requires that employees be included after one year or 1,000 hours of service. 

Hubert Bromma is CEO of The Entrust Group (www.theentrustgroup.com) and author of How to Invest in Real Estate and Pay Little or No Taxes. His new book, How to Invest in Real Estate with Your IRA & 401(k) and Pay Little or No Taxes, is published by McGraw-Hill.               

The recent Pension Protection Act of 2006 makes the Roth 401 (k) option a permanent part of a retirement savings plan. Which is the better choice for you? Let’s look at the options.

Roth 401 (k)

• You pay taxes on your contribution upfront.
• The investment grows tax free.
• There are no taxes when you withdraw.
• There is no timetable as to when you have to start making withdrawals.

Traditional 401 (k)

• You contribute on a pretax basis.
• The investment grows tax deferred.
• You must pay taxes when you withdraw.
• You must begin making withdrawals by age 70 ½

Contribution limits for both plans are the same.

So, what is the answer?

If you think you will be in a higher tax bracket in retirement, paying taxes now to enjoy tax-free withdrawals with the Roth option would be the better choice.

If you believe you will be in a lower tax bracket after you retire, you maybe better off with the traditional 401 (k) plan.

Regardless of your choice, contribute as much as you possibly can afford. Interested in knowing what a self-directed 401 (k) can do for you? Log onto www.theentrustgroup.com to get the name of a self-directed retirement specialist near you.

A recent study from the Boston Center for Retirement shows that the trend towards early retirement has reversed especially among middle age women. It appears that middle age women are looking for more satisfying and rewarding work and are “reaching” to achieve financial independence through new businesses or new careers!

Recently the number of scams highlights the growing risks of fraud to consumers. One area that is on the rise is ATM fraud. We need to be cautious when using our credit or debit cards as it is easy for someone to steal your information. By the time you find out, it could take days, weeks or even months to fix. Here are some tips to safeguard your credit and debit cards.

1.Keep an eye on your card when paying for merchandise, at restaurants and gas stations. I know of one case where a waiter actually added a zero to the customers tip column 14 times before he was caught. Imagine leaving a $10 tip that reflects $100 on your credit card bill!

2.Consumer groups say credit cards offer more and better legal protection over debit cards. If you have a choice, use the credit card.

3.Be careful at the ATM machine, check for hidden cameras, and people looking over your shoulder when entering your PIN number. Check your bank balance on a regular basis to be sure no one has tampered with your account.

4.Closed compromised accounts immediately, change your PIN number if someone got access to your account/funds.

Remember, your credit is everything! Use these tips to protect yourself and your financial resources.

With the news that the real estate market is down, how does a seller or an investor who wishes to sell their property do so in a down market? I have outlined four simple ideas you may not have thought about that won’t cost a fortune but will help sell that home…if you need to sell, now.

1.Have an independent appraisal available for review at an open house. A buyer will know immediately what the fair market, not over inflated value of the property is before they start to negotiate with you. It will be worth your investment.

2.Beat the buyer and have a current inspection and a report that outlines all of the problems that the property may have. No surprises….the buyer will be impressed and feel you are fully disclosing everything associated with any immediate fix up costs on the property.

3.Did you realize that one of the best ways of attracting prospects is still the “For Sale” sign outside the property?

4.A picture is worth a thousand words and could be worth thousands to you. If you take a picture for a flyer or for a web page, try to take the picture on a sunny day with lots of blue sky. Believe it or not, the sun makes a difference in selling a house too.

Sounds simple…If you must sell now, give these ideas a try. How many are you already doing? Email and let us know what is working for you!

You think we have problems paying taxes in the United States?

I was in a meeting today with attorneys from France who shared their tax bill for employees in their company. Did you know employers have to pay 48% in tax for each employee??? That’s right, if a person makes a $1,000 per week, the employer gets to pay $480.00 in tax. You may wonder if the employee has a taxable event. They sure do….22% of their wages go to tax. If you add these together, that is 70%!

Isn’t refreshing to know there are other parts of the world where taxes can REALLY impact your financial life?