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Another F Word

I had something to rant about today, but I’ll probably still be ticked off tomorrow.  In the interim, this is a valuable piece of financial advice I think would benefit a lot of people:



( 4 comments — Leave a comment )
May. 29th, 2009 09:19 am (UTC)
Accountants and Mortgages
I find your comments both interesting and one hundred percent on the money. Accountants are mysterious people.

Just as it does not pay to have to pay more interest on a mortgage and get back less than the full amount with the tax deduction, the same holds true for moving into the next tax bracket. I never have been able to figure out how accountants can advise their clients to avoid getting into the next higher tax bracket just to avoid taxes. After all, it only means you are making more money and, since you do not give all of the additional money to the government, you still come out ahead by making more.

Is this some sort of quixotic logic that accountants use? Maybe they live in the land of Oz where they can become wizards by standing behind curtains and making a lot of noise and smoke.
May. 29th, 2009 11:11 am (UTC)
Re: Accountants and Mortgages
I have the utmost respect for accountants, and know they perform many valuable services, but I believe many are zealous about reducing the tax consequences or maximizing the tax refund so that their once a year encounter with most clients is as pleasant as possible.

The logic you employ in your example makes as much sense to me as the one posed and rejected by my client. Why avoid paying more if you'll also keep more? Why spend money to recoup less?

But then I've applied logic to other situations where I've been told I'm too simplistic, like asking why someone would charge a meal in a restaurant when she would have long digested and eliminated that meal before the bill arrived.

Thank you for your comments.
May. 31st, 2009 07:00 pm (UTC)
Re: Accountants and Mortgages
Interesting logic! Do not charge a meal because it would be long digested and eliminated before the bill arrives? Could one not have other reasons for charging? How about getting points and mileage for charging? Think about it. One can actually get more than the meal for using a charge card. Makes good sense to me.
May. 31st, 2009 11:18 pm (UTC)
Re: Accountants and Mortgages
I was never a fan of reward points/mileage, as someone has to pay to keep the profit margins of the credit card companies obscenely high. So that means the merchants--with higher prices for us all as a result, and the people who need to carry very high interest balances every month--other people's hard-earned money.

Nope, not a fan. But if you enjoy the bill after the meal, and have no issue with the societal ramifications of who is paying for your perks, then I sincerely hope you enjoy all the rewards you gather. Each of us approaches our world differently.
( 4 comments — Leave a comment )



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