It’s Election Day, unless you are going to cancel out my vote in which case it is next Tuesday. Liberal, Conservative and an all shades in between – I don’t know anyone who willingly pays more taxes than they owe (although you can here). With the goal of paying lower taxes, many of my showbiz friends form S-corporations for themselves. But should you?
Last week, a couple Chip’s Money Tips subscribers asked me that very question. Unlike Harry Truman, I passed the buck to my accountant Ernest Hicks. He is an Enrolled Agent. If you have any questions about what he wrote, please click here to email Ernest. Take it away, Ernie!
We just had our first November rain in Los Angeles. That means it’s time for my annual post about turning off your sprinklers. Woo-Hoo!! That’s right. “Reduce. Reuse. Recycle” also applies to money tips.
The reason you should do that is really SEXY: Saving on your Sewer Service Charge (SSC). Hubba-hubba. My most recent bill’s SSC was only $15.46. It had been TEN TIMES as high – as much as $155.55 until I wised up.
I will tell you the answer first, because the explanation could put you in REM 3. If you have automatic sprinklers and you live in an area that charges you a sewer usage charge based upon water you use – you might wanna shut them off until spring time. I live in the warm and sunny, drought-riddled Los Angeles “Valley”. I turn off my lawn sprinklers between the first rain in November until March-April.
To be clear, the savings I just mentioned was not money I banked from bill to bill by cutting back on the water itself, that I used to soak my lawn. That was additional savings in the “Water” portion of the bill. I’m talking about a separate part of the bill under “Sanitation Charges” called the Sewer Service Charge. See below.
I started doing this a few years ago and my lawn, in full sun, has not suffered a bit. Individual results may vary. Void where prohibited without the expressed written consent of Major League Baseball.
Serve your environmentalist side with your “green” stance on water conservation while currying favor with your inner capitalist by keeping “green” in your wallet.
American Airlines just announced that in the second quarter of 2015, US Airways Dividend Miles will become American Airlines AAdvantage Miles.
If you’d like to pick up 40,000 US Airways Dividend Miles that will magically become American AAdvantage miles in Q2 of 2015, click here to apply for the card.
All you have to do is make one purchase and 40,000 miles are yours! There is also an $89 annual fee. Heck, get yourself some Wacky Packages, a bunch of bananas, ANYTHING and you’ll meet the spending requirement. This is a cheap and easy way to get a slew of miles. You should apply before the offer goes away.
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Have you seen the Geico ad in which Kenny Rogers is playing poker while singing “You Gotta Know When To Hold ‘em”? Mi amigo Wayne is the guy who tells The Gambler “I get the gist, yeah.” See the funny ad below.
Wayne and I were talking the other day about whether or not it would be a smart idea to take early retirement from the Screen Actors Guild (SAG) pension.
Maybe you find yourself in a similar conundrum at your place of employment. I will use the SAG pension as an example. Hopefully, some of the decisions we face will be similar to yours.
SAG would pay out 100% of what is waiting for us if we don’t take it until we’re 65. We could take it as early as 55, but we’d only get 70% of what we’d get at age 65. That is because for every month we take it early, the benefit is reduced .25%.
My initial reaction was that the bean counters who pore over the actuarial tables are not going to make it more attractive to pay out money early. But after running the numbers, and conferring with two accountants and three financial planners, it looks like early retirement might be a good move. There are some factors to consider.
In A Nutshell
I realize that lots of folks want a quick answer. Suffice it to say, if I were 55 and never
A couple friends of mine are very committed to conserving utilities. We joke that in the eyes of the Los Angeles Department of Water & Power, they live on a vacant lot with a leak.
I was truly shocked to see how low their bill is. In the dead of summer, they spent 82 cents/day on electricity and 17 cents/day on water. No solar panels, no windmills – just plain old conservation.
They averaged 5 kilowatts of electricity per day. The guys on Apollo 13 didn’t squeeze the electricity this hard. How do they achieve this? They run a power cord from the back of their neighbor’s garage to their house. Buuuuuut seriously…
They use so little water that they did not qualify for the LADWP residential grass removal rebate program – which pays you to get rid of your lawn!
I have seen them typing on their computers in winter with fingertips cut out of gloves like street urchins. Oh I chuckle, but these guttersnipes laugh all the way to the bank. No word if they have ever heated up a big rock and put it in their bed like Pa did for Laura Ingalls.
Check out their most recent bill from mid-July thru mid-September when it was really hot in LA. Over half of their bill is
My bromance with my Chase Ink Plus has never been stronger. For a limited time, they boosted their sign-up bonus… to 70,000 points!! That is worth $700 in TAX-FREE cash. You could also redeem the points for $875 in travel booked through their travel search engine. See why I am smitten?
Why should you get this one? It’s Rock-tober people. It’s only a handful of weeks until Christmas, Hannukah and Festivus. That means you could probably use some extra cash. And… here’s how you can actually get $700 tax free!
In my post Jock Straps, Bunsen Burners and Passive Income, I talk about different kinds of passive income streams. One such stream from which I drink is residual payments from acting gigs. Yesterday, I got my all-time lowest residual payment: one red cent. That’s right, a penny. This was for some voices I did on the animated pilot “Dan Danger”.
I covered up my address cuz I don’t want y’all knowing I have this kinda cash sitting around.
It seems quite fitting that I am writing this post from eight miles high, on a Delta flight, with a ticket I purchased with 25,000 frequent flyer miles. I received those miles as part of a bonus for meeting the spend on a Delta SkyMiles American Express credit card.
They have increased their sign up bonus to 50,000 miles + a $50 Delta statement credit (usually it is 30,000 miles). The catch: You must apply by Monday, September 8th and then spend $1,000 in the first 3 months of having the card. Click on Chip’s Favorite Credit Card Offers for up-to-date deals, terms, and conditions on these cards and more. Email me if you have any questions.
The same deal applies for the business credit card. If you want to apply for both the personal and business cards at the same time, check out Results of My April “App-Aloosa” for tips on how I did it in the past.
Remember that you can no longer get the sign-up bonus on a Delta SkyMiles
A few years ago, I started loaning money to complete strangers via Lending Club and Prosper. Here are my posts after Year One and Year Two. $25 was the most I lent to any of the 30 people. I spread it around to (clear throat) diversify my portfolio. Of course, I said that with a swagger and deeper than usual voice.
I got returns of 6.72% and 5.78% respectively. Over the three years, only one borrower defaulted. So, I had to eat that, just like a bank does when someone bails on what they owe.
People who are looking to borrow money will say the reason they need the money. I tend to go with those who want the loan to pay off a high interest credit card or start a new business.
Are you more inclined to borrow than lend? You can do that too. It’s anonymous for all parties. Use Lending Club and Prosper to borrow money from regular people at a rate cheaper than your high interest credit card or a personal bank loan.
If you have extra cash, this might be a good way to help folks dig out of debt or fund other projects, while getting a better return than in a CD or savings account. Lending Club and Prosper do all the work for you. You just sign up to lend or borrow.
Donating to charity is a great way to help meet a credit card spending requirement. That’s how I paid off my ALS Ice Bucket Challenge Donation. There are TWO fantastic 50,000 mile sign-up bonus offers right now. You must apply for United’s by Tuesday (September 2nd). You have a week to apply for Delta’s (September 8th). Both offers are usually 30,000 miles, so 50,000 is mucho better!! Apply while you can!