How To Cash In On The Upcoming Gold Boom And Make 400 Roi Using This Unknown Tactic What Is Mortgage And Life Protection Insurance Year End Health Savings Account Tax Strategies Meeting Your Family S Health Needs With An Hsa
Gold has been a star performer in the portfolios of some of the wealthiest dynasties in the history of the world. Just a few of the prolific people who have used gold to build their incredible wealth include the DuPonts (who now own a massive chemical business), the Rothschilds (once upon a time the richest people in the world), the (JP) Morgans and Egypt’s royal Farouk family. We could go on and on forever about more family empires who owe their core wealth to gold but there’s no need – the bottom line is that investment in gold has always given a sensational return over the centuries – and statistically it has put stocks, real estate and bonds well and truly in their place.
Want some proof that gold has created staggering wealth in recent times? Consider these startling facts:
– During the 1960’s investment in this “secret gold” brought about average annual returns of 100%.
– Between 1972 and 1974 the secret gold saw increases of 350% (while the stock market was heading desperately south).
– Then between 1976 to 1980 this secret gold brought investors an average of 300% per year.
– Gold saw annual increases of 340% between 1987 & 1989.
The average investor keeps piling into stocks, real estate & bonds – completely unaware that certain types of gold have been outperforming their risky holdings every year since 2000 (and the last couple of years have seen double returns over stocks). And as you’re about to discover, we’re right at the start of something very big…
It’s interesting to note that the earliest record of gold being used as a form of money/investment occurred as early as 700BC. Since this time, all cultures and races throughout the world have craved to own gold – and many centuries on the strength of gold has gone from strength to strength.
In the present time, gold is an attractive commodity to hold because it’s price is seeing a general upward trend (and many experts agree that this is set to continue for many years to come). It’s possible to own gold for a relatively modest outlay and so most people have the means to invest in it. Gold also brings with it a certain beauty and status symbol that most other investments simply cannot compare to.
Why Investing In Gold Now Could Make For Spectacular Returns – The Facts Don’t Lie And This Is Why The Resurgence In Gold Prices Could Mean Big Things For Those Who Invest Early
Right now the U.S. government is desperately trying to fight deflation (lower prices) and it has categorically stated that it will look to prevent this at any cost. The long and short of this is that more “paper money” becomes available while the amount of gold stays constant. Can you think what this means?
The same amount of gold costs more paper dollars (or “money”) to buy.
So as the amount of money being printed goes up – so gold prices strengthen. It’s expected that a significant amount of money will be printed over the next years, and you don’t need me to tell you what that means for where gold prices are heading.
Sadly, there are even more reasons why the current gold run could well be the start of a huge bull run. Traditionally, gold has always performed strongly during times of uncertainty. I say “sadly” because as the long running war on terrorism sees no end in sight the amount of paper money needed to pay for conflicts etc rises. This huge increase in paper money will only continue to peg up the gold prices.
The Gold Shortage – One Of The Biggest Investment Banks In The World Is Predicting A Gold BOOM Caused By A Fundamental Shortage, A Glut Of Government Printed Paper-Money & Other Factors.
Credit Agricole, a leading French investment bank recently released a SHOCKING report (Cheuvreux report, named after the equity research department of Credit Agricole) that has highlighted the very real possibility of a coming gold boom.
“We are raising our mid-cycle gold price estimate to USD900/oz from USD750/oz and see the possibility of a spike to USD2,000, or higher. Covert selling (via central bank lending) has artificially depressed the price for a decade.”
At the time of writing, gold prices were at the mid $500 levels per ounce, and many experts are predicting that the price could soar past $2000 per ounce. Why? The report highlights the basic shortage of gold stock – world governments are desperately short of gold bullion (possibly by levels higher than 50%). Demand for global gold remains high, yet world supply is highly limited (only 2,500 tonnes produced worldwide). In addition the over-supply of paper money and artificial suppression of gold prices over the last decade means that gold could well explode to as much as $2,000/oz – potential upside gains of almost 400%!
Mortgage and life protection insurance which is also known as a mortgage protection plan does just what its name suggests. This type of policy will enable your loved ones to pay the mortgage should you die before it is paid off.
However it does more than just pay out should you die immediately. If you take out this type of insurance you will be covered if you happen to be diagnosed with a terminal illness from which you aren’t expected to live for more than 12 months.
The policy may also pay out if you have taken optional cover for critical illness and are diagnosed with a critical illness which is covered by your policy. If you have taken the option for permanent disability and the worst should happen and you become permanently disabled, then you will also be covered.
The mortgage protection plan (not to be confused with mortgage payment protection insurance) works slightly different to the level payment protection plan in that the amount which it pays out decreases the longer you have the plan. This is the type of plan which would most suit those who have taken out a repayment mortgage. It wouldn’t benefit those who have an interest only mortgage.
While the cover reduces the longer you have the policy, there is always enough cover to cover your mortgage.
Insurance of this type can be taken out jointly or singularly depending on the circumstances and there is no cash in value on this type of policy.
As always, there are exclusions as with any insurance policy and you should make sure you understand the terms that are laid out in the policy. Shopping around can help you to get a cheaper deal due to premiums varying widely from company to company. Getting online quotes from as many companies as possible before narrowing down your choice is essential to getting the best deal and value for your premium.
Many policies of this type will also include free accidental death cover, so when assessing premiums this is one factor to take into account. What this cover means is that from the time you make your application to you either being declined or accepted, if you should have an accident which results in your death up to 90 days later, then you are covered anyway.
2007 is just around the corner, and there are several issues to consider if you currently have an Health Savings Account (HSA), or are planning on getting one in the near future.
100% of the deposit you place in your HSA is deductible on your federal income taxes. All but four states also make HSA contributions tax-deductible on state income taxes. If you are looking to reduce your 2006 tax burden and put away more money for retirement, your HSA is the first place you should put your money if you have not yet maximized your contribution.
The maximum you can contribute to your HSA in 2006 is the lesser amount of your deductible, or $2,700 for singles and $5,450 for families. Individuals who are 55 or older may contribute an additional $700. Note that contribution limits are pro-rated, based on the number of complete months during the year in which you have a qualifying HSA health insurance plan.
You have until April 15 (or later if you file for an extension) to make your 2006 contribution. If you do not fully fund your account for the current year, you cannot make a catch-up contribution for 2006 after this deadline. However, you can reimburse yourself in later years for qualified expenses incurred in 2006, even if you do not have the funds in your account to reimburse yourself at this time.
In 2007, the maximum annual HSA contribution will go up to $2,850 for individuals and $5,650 for families. Individuals 55 or older will be allowed to contribute an additional $800.
To maximize your tax benefit for 2007, it is important to have your HSA-qualified health coverage in place no later than January 1.
In order to pay for a medical expense from your HSA, it must be a qualified expense. Some of these qualified expenses include dental expenses, eyeglasses, chiropractic visits, over-the-counter medications, and sometimes even nutritional supplements.
Now is a good time to make sure you have an accurate record of your medical expenses for the year. Make sure you separate the expenses for which you have reimbursed yourself from your HSA from those that you paid for out-of-pocket. You’ll want to keep receipts for all medical expenditures paid from your HSA with your 2006 tax records. Place the “non-reimbursed medical expenses” in a separate file, keeping them with the concurrent year’s tax records in whatever year you decide to reimburse yourself.
The penalty for over-funding your HSA is a whopping 6%. You have until April 15, 2007 to withdraw excess funds for the 2006 tax year to avoid the penalty. Your HSA administrator may notify you of any over-funding, but they are under no obligation to do so. It is your responsibility, so make sure you check into this if you think your may have over-funded you account.
The minimum deductible for HSA-compatible health insurance plans in 2006 was $1,050 for individuals and $2,100 for families. In 2007 this will increase to $1,100 for individuals and $2,200 for families. If you currently have an HSA-qualified plan with the lowest eligible 2006 deductible, that deductible will automatically go up on January 1 to the new minimum.
Strategies to Maximize Your Tax Benefits
There are basically three different strategies you can take when deciding how to fund your health savings account.
1. Put no money in the account, except when you incur a medical expense. This strategy allows you to legally “launder” any money used to pay medical expenses. In other words, by depositing money into your HSA, then immediately withdrawing it to reimburse yourself for medical expenses, you are making your medical expenses all tax-deductible. You may want to use this strategy if you are on a tight budget and want to keep your cash outlay as low as possible.
2. Fully fund the account, or at least put in as much as possible based on your budget. Take money out of the account any time medical expenses are incurred, and let the rest grow tax-deferred. This strategy will maximize your tax deduction, while making your HSA funds available to pay any non-covered medical expenses before your deductible is met.
3. Fully fund the account, but pay all medical expenses from a non-HSA account. Reimburse yourself for medical expenses at a later date. This strategy will allow you to maximize your tax deduction, and will also allow you to maximize the tax-deferred growth of your HSA. You can then reimburse yourself, tax-free, at any time in the future for medical expenses incurred over the ensuing years.
To maximize the potential growth of your funds, you may want to make your 2007 deposits as early in the year as possible. Any growth in your account is tax-deferred, like an IRA. If possible, you should plan to make your deposit the first week in January.
Making sure that your family is able to stay healthy partly depends on having a good health insurance program for them. One of the more recent new additions to the health insurance industry is called the Health Savings Account (HSA). This new program enables you to have reduced insurance rates because of a higher deductible, and a tax deferred savings program with it. Here are some of the features of this program.
By getting a health insurance program with a high deductible, you are able to greatly reduce your monthly premiums. This is an especially good way to go, if you are younger and currently have pretty good health. The deductible amounts are pre-determined by the government, and you are required to have deductible amounts between $1,050 and $5,250 for singles, and it needs to be between $2,100 and $10,500 for families.
Savings Are Tax Exempt
One of the great benefits of this type of plan is that, like an IRA, you enjoy tax-free income, and interest on the amounts you have in the program. You can put into the plan money that comes off the top of your taxes. There are limits, though, and for singles it is up to $2,700, and for families it is $5,450. A little extra benefit is that you are able to take off of your taxes any money that is deposited into the account all the way up to April 15th. So, if you are coming up to tax time, and find you need to reduce your taxes some more, you can put it into your HSA, and find the tax break you need.
The new HSA’s have an extra real nice feature – they cover more. Some things that you may not have been covered for under another type of policy, you may find that you are covered for with an HSA. This could actually allow you to get a better coverage for less. Things like dental coverage, therapy, even non-prescription medicines and some alternative treatments may also be covered, and even some mental illness treatments, too.
You Keep Control
Under an HSA, you are the one in control of the money. It is yours to use. You can take money out of the account when you want, but only the money that is used only for medical purposes is tax-exempt. Generally, you will be given a card, like a credit card, that gives you access to the account. Whenever you use money from the account, the insurance company automatically gets a receipt, and it is subtracted from your account, and your deductible – and it remains tax exempt.
Like any other insurance policy, once you have paid the deductible amounts, the rest is up to the insurer to pay. By having the high deductible you reduce the premiums considerably. The savings account can also provide a good hedge for your medical insurance program for the future, too, because any money not used toward the deductible remains your money – to use next year, if you need it. On the other hand, the money in your HSA might also be used to provide some money for retirement – assuming you maintain your good health..
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