Now, no CPA worthy of the title will advise you to sell assets to pay bills, but sometimes, that’s sound advice. If your kids don’t wear it, play with it, or use it, then get it into the hands of a child who will. But let’s talk about real money…
Everyone lives somewhere, and homeowners already have a tremendous advantage as a result of the mortgage interest they can write off. What else, though?
For starters, if you have a mortgage, you have homeowner’s insurance. Chances are, you also have a vehicle. Have you taken an hour to discuss any discounts on that insurance for bundled policies? All too often, insurance rates creep up over time, even if you haven’t had any claims. So it’s good business to check in each year to ensure you’re getting the best rates. We know of at least one homeowner who hadn’t had this conversation in years. And when they had their insurance company requote the policy, was able to save several thousand dollars annually.
That’s money you can see!
Even if you don’t own a home and you rent, then the same rules apply – can your auto insurer provide a renter’s policy for your apartment? Can you switch companies and save some money for a similar policy? I know, I know, we might not be talking about thousands of dollars each year. But it’s money you can save or money you can use, right? It’s your money!
Now, no discussion about saving – or making – money can be complete without taking a long look at the two major bills. The two major bills many folks pay each month are their home and their car.
Have you considered refinancing either one of these? Sure, interest rates are low, and yes, they have gone up slightly in the last few quarters. But it might be a perfect time to begin a conversation with the company that holds your mortgage and discuss refinancing. By the way, if you aren’t looking for any extra money, this might be a great time to consider looking at shortening the length of your mortgage. From 30 to 15 years – and owning your home free and clear that much faster.
Along that same line is the idea of refinancing your vehicle. Car loans have slowly stretched from 4 years to 7 and even 8 years in the last three decades. So, the amount of money spent financing a car – and the residual value of that car once it is finally paid off – has changed substantially. It “pays” to look at this and consider how refinancing might positively impact you – short term and long term.
If you or your clients have any tax issues or problems with the IRS/State or other federal tax problems, please feel free to contact me directly at (909) 570-1103 or by email at Carlos@HealthcareTaxadvisor.com
Carlos Samaniego, EA
Licensed by The Department of Treasury to represent taxpayers
1255 W Colton Ave, #535
Redlands, CA 92374