Posts Tagged "last time"

Myth: "I don't want a raise! It will move me into a higher tax bracket and my take home pay will be less!"

Posted by Preet on Jul 30, 2007 | 6 comments

I’ve heard this many times, even from my beautiful mother! This is not true! Let’s bring up my SAMPLE tax table as a refresher: $0-$10,000       = 0% Tax Rate $10,000-$20,000 = 10% Tax Rate $20,000-$50,000 = 20% Tax Rate $50,000-$75,000 = 30% Tax Rate $75,000+            = 50% Tax Rate You will hear some people complain that they don’t want their next raise because it will move them into a higher tax bracket and reduce their takehome pay and they will have less money to spend. Okay, the Government does some interesting things but they’ve figured this one out a long time ago. Here’s how it works:  Let’s take someone...

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Picking investments based on past performance

Posted by Preet on Jul 29, 2007 | 0 comments

Invariably people will see a ranking of highest performance funds for the last year or so and ask “Are these good funds?” Others will just go and blindly buy them. In fact, there is a huge proportion of investors out there who base most of their decision on the past performance of an investment alone.  They do not research any further than the performance report for the last year.  This is no different than gambling in my eyes! To paraphrase a quote I once heard, if all that was involved in achieving the highest rate of return was looking at past performance – librarians would be the richest people on earth! Last time I checked, they were not (at...

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