I visited my accountant today and we discussed my taxes. We went through my income, investments, health insurance payments, and the remaining paperwork with my dad's estate. I explained my retirement plan, and named the stocks that I have purchased. My goal is to have twenty different stocks, for diversification. I learned that from Suze Orman. I have been very happy with the dividends. They are consistent, plentiful, and enable me not to touch the principal. I told her that I had considered buying real estate, but that I far prefer the stock market. "I can do it at home on my computer. I study the charts. I don't have to deal with personalities or the responsibilities of owning property and managing tenants." She agreed. My dad taught me to keep my expenses low, regardless of my income. I paid my quarterly taxes, and she did an estimate for me for this year. "You're doing really well," she observed. "Most people live paycheck to paycheck." I told her that my dad had taught me well. Following his example, I drive a twenty year old car, have inexpensive hobbies like hiking, bicycling, and yoga, and my one splurge is gourmet groceries. She assumed that I was eating and cooking more at home, but I've always done that. Restaurant meals were rare, except when I on a cruise or vacationing. I had planned to travel in my fifties, but that is on hold, due to the pandemic.
Have you filed your taxes?
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Good for you. Being comfortably solvent helps so much but it could so easily disappear unless managed rightly.
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Hi Joy., Yes, solid investments with reputable companies, and plenty of cash to meet expenses in the case of an economic downturn are so important. I manage my own investments, and check on the market's happenings each morning.
DeleteI always loved that moment when my taxes were all sorted and paid. It's great to be so organised and not have to worry about things like that. I really don't know why people leave it till the very last minute and then start panicking.
ReplyDeleteI love that feeling, too, Cherie. Our government granted an extension until May 15th to file this year. I still needed to pay my quarterly taxes by April 15th. I have an excellent accountant. She's so trustworthy and knowledgeable.
DeleteWell done on getting your taxes done and all the financial planning and investments, etc. Managing ones finances is so important. I like your birdhouses wall hanging in the picture. Very cute.
ReplyDeleteYes, I filed my taxes, earlier this month. I usually do it in March, but, this year, due to the pandemic, my tax accountant worked remotely, so, even though I dropped off the papers in March, the taxes didn't get filed until early April.
Hi Bless, That's true. I love investing. I find it exciting. It sounds like you still had your taxes filed in plenty of time. The older I get, the simpler my taxes are, which I like.
DeleteAs an employee, I am taxed at source so no tax forms to complete. Such a blessing. You should become my financial adviser, I could learn from you. At the moment, it feels that we live from paycheck to paycheck but with four children in full-time education, this doesn't surprise me. We add to savings every month but investments are not yet an option. Not long though and it is never too late. Good food is good for the soul, I am with you on buying the best quality possible.
ReplyDeleteI lived paycheck to paycheck for decades, Christina. I just have learned about market timing. That has really helped me. I bought my house during an economic downturn, and it was practically the smallest house on the street. I do the same with stocks, I watch the prices and wait until I get them "on sale," and then hold them and reinvest the dividends.
DeleteGreat job! Taxes have to be filed in Canada by April 30th. We have an accountant and dropped off our files several weeks ago. We should know this week what dh's refund will be and if I owe anything - I have 2 contracts so some years I owe a few dollars and some years I get a refund. I upped my charitable donations this year and the gov't is providing Covid rebates for those working at home and another environmental one so I'm thinking it should be a refund year for me. Your dad was one smart man!
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That's great, Chy. Our government sent out stimulus checks, too. I donated mine to dancer friends affected by Covid. I owe taxes on my income, but I plan for it ahead of time and pay quarterly. Yes, my dad had master energy. He managed his investments meticulously, and had all the numbers memorized.
DeleteWe filed our taxes in late February. We do our own using TurboTax, but did need a CPA to file my father's personal tax return and his estate taxes. I am still waiting for the federal refund from my father's personal taxes, but the state refund came through several weeks ago. It is always a good feeling to get taxes off the agenda each year. It reads like we share a philosophy on lifestyles!
ReplyDeleteYes, it is a wonderful feeling, Anita. It's such an important task to complete.
DeleteYou are really 'on the ball' regarding finances, Stephenie. I don't have enough income to pay tax so don't have to worry about it. I do, however, regularly review our expenditure to ensure we have enough money to live on as well as a little spare to spend on treats. It's good not to have to worry about making ends meet, isn't it.
ReplyDeleteHi PP. Thank you. No, that type of worry is very stressful. I remember feeling it as a dance and yoga teacher. Spending a little money on treats makes such a difference, psychologically.
DeleteI trained yoga teachers for decades. On the first day, I would say: "don't give up your day job". I wish that I'd also said: "watch your pennies". It's been a wat of life for me to be prudent with money, and I learnt this from living with my very affluent grandparents. They taught me the value of work, and of being careful with money.
ReplyDeleteYes, I've noticed that the wealthy are very disciplined and careful with their money, ratnamurti. It really is a job to manage your finances and investments. It takes time, wisdom, and knowledge. There is so much information available right now. We are fortunate to have it at our fingertips.
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