The Experts: The One Move That Could Help Investors Simplify Their Finances

Manisha Thakor for the Wall St Journal writes: What is one move that could help investors simplify their portfolios and/or their financial affairs? The Wall Street Journal put this question to The Experts, an exclusive group of industry, academic and other thought leaders who engage in in-depth online discussions of topics from the print Report. This question relates to arecent article that discussed simple portfolios that consist of just three funds and formed the basis of a discussion in The Experts stream on Monday, July 8.

The Experts will discuss topics raised in this month's Investing in Funds & ETFs Report and other Wall Street Journal Reports. Find the finance Experts stream, watch recent interactive videos and explore a host of other exciting online content at WSJ.com/WealthReport.

Also be sure to watch investment adviser Tom Brakke(@researchpuzzler), blogger Mike Piper (@michaelrpiper) and University of California, Berkeley Professor Terrance Odean in an interactive video chat that aired on July 8 in which they discussed strategies for coping with market volatility.

Michael Kitces: Consolidate. If Not, Aggregate.

The easiest way to start simplifying your financial affairs is to just get everything gathered together in the first place—which is often no small feat in a world where investments are often scattered among multiple brokerage, retirement and bank accounts, each often split with multiple vendors. As we add new investments, and life and circumstances change, we have a tendency to create new accounts, but rarely take the time to get rid of the old ones; after enough years and decades, it can become quite a mess.

So the first step to simplification is to consolidate. In today's world of increasingly flexible financial services firms that can accommodate a wide range of accounts, there is often little reason to have multiple brokerage and retirement-account providers. In some cases, you can even use the same provider for your checking and savings accounts as well.

On the other hand, it isn't always possible to consolidate. Perhaps there is a unique investment that really does have to be held at a certain location. Perhaps your bank and brokerage accounts are at different providers, can't perform the services of the other, and you want to keep both. Perhaps there is a current retirement plan that just can't be moved while you're still working there.

For those scenarios, the next best option is to aggregate the financial information together, using one of the emerging crop of personal financial-management tools. The most popular by far is Mint, but there are several alternatives, as well. All give you the ability to log into one central dashboard and, after securely entering your login information once for your other sites, draw together the information to give you a simple report so you know where you stand. You can even pull in your credit card, mortgage, and other debts, as well, so you get a full picture of how leveraged your personal balance sheet really is.

So commit to spending an hour or two gathering everything together, and beginning the process of transferring it all to one centralized provider to the extent possible, and then set up an aggregation account to track the pieces that are left. It will make life much simpler.

Michael Kitces (@MichaelKitces) is director of research for Pinnacle Advisory Group Inc., and publisher of the financial planning industry blog Nerd's Eye View. You canconnect with him on Google+.

Terrance Odean: Stop Buying Individual Stocks

Going forward, don't buy individual stocks. Buy (and hold) a few well diversified, low-cost mutual funds (e.g., an all-U.S. equity index fund, an international equity index fund, a broad-based bond fund). Remember, look for low fees, don't chase past performance. If you currently hold high-fee funds, sell them and buy low-fee funds. Whether or not it makes sense to sell current individual stocks and buy funds depends upon how underdiversified you are and whether you are holding stocks for gains or losses. In general, sell your losers and sell winners for which you can offset capital gains. If the tax implications of selling your stocks are potentially large, consider getting some professional advice before taking action.

Terrance Odean is the Rudd Family Foundation professor and chairman of the finance group at the Haas School of Business at the University of California, Berkeley.

Michelle Perry Higgins: Don't Scatter Your Accounts

If I had to pick one way to simplify financial affairs, I would say consolidation of your accounts. Having multiple accounts, especially when they are at different banks, needlessly complicates things. For example, I have seen investors with four checking accounts and three savings accounts, all at different banks. This adds up to more statements, more tracking, more documentation and more stress. If an investor wasn't over the FDIC limit, I would question the need to have multiple accounts. My advice is that if you are under federal thresholds, think about combining your accounts to make life simpler.

Michelle Perry Higgins (@RetirementMPH) is a financial planner and principal at California Financial Advisors.

Charles Rotblut: Write Down Your Financial Plan

Write instructions on how you would want your financial affairs managed if you were suddenly unable to do so yourself (e.g. because of an accident or a severe illness).

Doing so serves two important functions. The first is that it forces you to think about how you are actually managing your finances. Are you doing so in a disciplined manner or do you lack a clear plan? Is your strategy simple enough to explain to another person or is it overly complicated? If you are like many investors, writing down directions for managing your portfolio will reveal weaknesses in your current process. It also gives you the opportunity to correct them, as well as a disciplined process to follow going forward.

The second function is that it allows someone you trust to step in on your behalf. Your spouse, your significant other, your son or your adviser will be able to promptly step in and manage your affairs. By empowering them with clear instructions, you give yourself peace of mind that your affairs will be properly managed.

Charles Rotblut (@charlesrotblut) is a vice president with the American Association of Individual Investors.

Matt Hougan: The Less You Work, the Better Off You Are

Do less.

Investing is awesome. It's one of the few places in life where, the less you work, the better off you are.

Imagine if that were true at your job? Or with your kids? Or working out? We'd be doing cartwheels.

But with investing, it's absolutely true…and yet we spend so much time and money pretending it isn't.

Every study shows: If you study the market in-depth, watch charts on six different screens, and go chasing after the latest hot manager, you're almost guaranteed to underperform. If you buy simple, low-cost mutual funds, and rebalance once per year, you'll outperform the vast majority of investors.

Want some advice? Buy one global total market equity index fund. Buy another total market bond index fund. Rebalance.

Spend the time and money you save at the gym.

Matt Hougan (@Matt_Hougan) is president of ETF analytics and global head of editorial for IndexUniverse LLC.

Rick Ferri: It's as Easy as Cake

Creating a portfolio is like baking a cake. Selecting the right ingredients, using the right amount and baking it for the right time at the right temperature results in a tasty treat. The recipe for a good portfolio is the same. Start with the three essential ingredients: A total bond market index fund, total U.S. stock market index fund and total international stock index fund. How these three funds are blended together will determine the portfolio's "temperature" or level of risk. Next, hold the portfolio for an appropriate time based on your needs. Don't take it out of the oven too soon! This makes for a winning portfolio.

After that, it's all icing on the cake. You can also add a little flavoring using a real estate index fund (REITs) or a small-cap value index fund if you wish. See The Total Economy Portfolio for more information.

Rick Ferri is founder of Portfolio Solutions LLC and the author of six books on low-cost index fund and ETF investing. His blog is RickFerri.com.

Eleanor Blayney: The Best Plan Is to Have One

Make an investment plan, stick to the plan, and rebalance to the plan.

Just think what these three steps (really one) could eliminate:

• Worry about where the market is or where it's going (a good plan will build in market risk);

• Indecision about where to invest extra cash or savings, or where to find funds for life events (the plan's asset allocation will have the answer); and

• Impulsive and usually costly behavior, such as buying hot and selling cold (your plan will have parameters for when to buy or sell).

In other words, a properly prepared investment plan can save you time, money and ulcers.

Eleanor Blayney (@EleanorBlayney) is consumer advocate of the Certified Financial Planner Board of Standards.

Christian Magoon: Know What You're Aiming For

Imagine trying to plan a vacation but not knowing how long you are staying or what your budget is. Most of us wouldn't even attempt to make plans without those numbers, but too often investors are doing just that when investing. The generic investment goals of "college savings" or "retirement" are being made every day. These goals aren't specific enough to be measured properly, thus making portfolio assessments and decisions much harder. Investors need specific investment goals that have numbers representing time and money at minimum. In the context of these numbers, many investment decisions will become less complicated.

Christian Magoon (@ChristianMagoon) is founder and chief executive of YieldShares, an income-focused ETF sponsor.

Sheryl Garrett: Two Crucial Moves

Consolidate and automate! OK, that is two moves. Consolidate any and all investment accounts, excluding retirement plans with your current employer, with one discount brokerage firm. Next, automate all of your monthly savings and investments and the payment of your regular expenses. I like to have my monthly savings and investments withdrawn directly from my paycheck before it's automatically deposited into my checking account. From there my mortgage payment, taxes, insurance, and many utilities are automatically deducted each month. Then, whatever is left over is mine to spend as I see fit.

Sheryl Garrett (@SherylGarrett) is founder of the Garrett Planning Network Inc.

Tom Brakke: Rein in Stray Accounts

If you have stray accounts here and there—old brokerage accounts, 401(k) plans from previous jobs, etc.—you should investigate whether there are valid reasons to keep them open. That includes looking at the investments within the context of your overall holdings, but also considering the fees that are being charged on those accounts and the extra time you have to spend keeping track of them.

It might seem like there are diversification benefits from having your assets located in multiple places. That may be true in some situations, but often those extra accounts aren't providing any diversification, just hassles.

Tom Brakke (@researchpuzzler) is a consultant, writer and investment adviser who specializes in the analysis of investment decision making and the communication of investment ideas.

George Papadopoulos: Simple Is Always Better for Long-Term Results

It is difficult to choose just one move that could help investors simplify their portfolios and/or financial affairs as it is usually a combination of small moves that can achieve this. Having said that, if there was one move I usually recommend, it is the consolidation of financial accounts. Clients usually come to us with too many open accounts in different institutions and the amount of paper (and/or emails) generated is a frequent contributor to wasted time and stress. I often recommend having one checking account set up for direct deposit and paying bills, one savings account to hold the emergency cash fund and short-term goal savings and one brokerage company to hold all investment accounts. These accounts are linked online and the goal is to not have more than enough cash necessary sitting in the checking account, while easily funding the savings and the investment accounts regularly (preferably monthly). Please avoid adding more layers in your finances. You don't need XYZ hedge fund, nontraded REIT, master limited partnership etc. no matter how fantastic they sound. Simple is always better for long-term results because you will understand it and you will spend much less time handling and worrying about it. And you will sure spend less in fees for that investment manager to take shots with your money with his/her "proprietary" investment strategies.

George Papadopoulos (@feeonlyplanner) is a fee-only wealth manager in Novi, Mich., serving affluent individuals and families.

Manisha Thakor: Set the Right Asset Allocation

When it comes to investing, time and again academic studies have shown that asset allocation trumps security selection in terms of what contributes the most to your long-run returns. Given this evidence, I believe the single most important move that an investor can make is to set—and execute on—the right asset allocation for his or her specific situation.

If unsure what your target asset allocation should be with your long-term investment funds, a simple rule of thumb popularized by the legendary John Bogle is to put your age in bonds and the remainder in stocks. If you are 50 years old, this means with your five- or 10-year-plus funds (NOT your emergency funds) you would put 50% in bonds and 50% in stocks. To me, the simplest way to execute on that allocation is through the use of low-cost index or "passive" mutual funds, such as those offered by Vanguard or Dimensional Fund Advisors or related low-cost ETFs.

While this may sound incredibly basic, I find that most people are unsure of the three most important factors when it comes to their investments: their asset allocation, their fees and how their current portfolio balance relates to their long-term goals. Spending some time with a qualified adviser (ideally one held to a fiduciary, versus a suitability, standard) to identify and implement the right asset allocation—and learn about the other two factors—is one move that can really help simplify your portfolio and your financial affairs.

Tax Deductions and Considerations For Writers

William D. Holland writes:  “I AM NOT A CROOK”

My apologies to former President Nixon but I just couldn’t’ pass up the opportunity to use that line.

Come to think of it, I don’t apologize. He was a crook!

“The only difference between death and taxes is that death doesn't get worse every time Congress meets.”
Will Rogers

It is high time that we discussed that which might be a bit, shall we say, uncomfortable for many of you. Few people want to talk about taxes and for good reason: they are like a living nightmare that keeps happening every April. There is no avoiding them. There is, at best, a duck and cover attitude in hopes that the big one doesn’t blow and take us with it.

But discuss them we must and honestly, during this discussion, you just might find out a few things that will save you money this next year. Now I’ve got your attention, don’t I?

Let me begin by stating that I have no problem with the government collecting taxes. I understand the system and I’m fine with it in theory. I just want to make sure the playing field is level and I’m only paying my fair share in taxes and not a penny more.

When major corporations are allowed tax loopholes that save them hundreds of millions of dollars in taxes, I see no reason why I shouldn’t open up the tax books and take those same loopholes for a similar ride.

If you know very little about tax deductions for writers well then join the crowd. I would venture to guess that you have a lot of company, but in this case ignorance is not bliss. We really need to begin your education, and the first thing we need to do is define writing as an occupation.

Capone learned the hard way about tax evasion

Source: http://www.answers.com

THE WRITER IN THE TAX WORLD

Believe it or not, intent is the main determining factor with regards to writing and taxes. You can either be a hobby writer or a full-time writer but you can’t be both.

A hobby writer is one who writes just for enjoyment and an occasional money-making venture. If this describes you, then you can only deduct expenses to the extent of your income. In other words, let’s say you make $2000 in writing income this year. Your expenses for that writing totaled $2200. You would only be able to use $2000 in expenses. You could not write off $2200 against other income.

A full-time writer is one who earns their entire income from writing, or one who is working towards becoming a full-time writer. In other words, you can have a full-time job working in a warehouse, but be working hard in your off hours at writing with the intent of being a full-time writer, and you can declare yourself a full-time writer. If this is the case then you can declare writing as an occupation by filing Schedule C and take deductions which will apply to all income that you make.

Believe it or not, this is the honor system between you and the IRS, but you better be able to back up your claims should an audit happen. If you show five or more years of losses from a business activity then you can count on meeting your local IRS agent up close and personal.

SO HOW DO YOU PROVE IT?

How do you prove something as nebulous as intent? The quick answer is that there is no easy, foolproof way, but there are some things you can do to help your cause.

• Keep business records
• Maintain a separate checking account for your writing business
• Attend writing classes, seminars and workshops and keep receipts
• Advertise and network
• Set up a writing website or blog
• Obtain a business license
• Give your writing business a name
• Write a business plan
• Of course, keep receipts

No, it is not necessary to do all of these, but the more you do the more you prove intent and move further away from the “hobby” label.

IRS Schedule C

• http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

THE NATURE OF DEDUCTIONS

So, what qualifies as a deduction for writers? Again we are dealing with IRS language. The Internal Revenue Service uses a guideline called “ordinary and necessary” when judging business expenses.

The question to ask yourself is this: would you incur that expense if you didn’t need it for your writing business? If the answer is no then you are in good shape when considering it a deduction.

Because these are such nebulous guidelines, what is a deduction for one business may not be for another. A subscription to People Magazine might be normal for a dentist’s office. The same subscription would be a stretch for your writing office….unless you can show that you use other magazines as a guide in your writing, to see the style of other writers and to see what certain magazines are looking for.

In other words, intent!

SO, WHAT CAN BE DEDUCTED?

First let’s talk about your home office. Do you have a home office?

You can deduct a home office expense if you use that space exclusively for writing and it is your principal place of business. Now I’m not going to tell you to cheat on this one, but it is a pretty shaky guideline that is very hard to disprove.

I am assuming that all writers have a particular place in their home where they write. If you have a separate room for writing then declare that your office. If you have a room that serves a dual purpose, like a writing office and a rec room, then declare that portion of the room used for writing as your office.

How do you do that?

Measure the area that is your office….let’s say it measures 10x10, which is 100 square feet. Now take the square footage of your entire house….say 2000 square feet….that means that 5% of your home expenses can be deducted for your writing business.

That percentage can be applied to rent or mortgage, property taxes, homeowner’s or renter’s insurance, utilities, repairs, maintenance and others. You can also write off the office furniture, so I’m talking about the twenty year old desk that you use and the chair that you sit on.

OTHER BUSINESS EXPENSES

Travel, meals and entertainment. A word of warning about these three: the IRS has been burned before and they are on the lookout for anyone stretching the laws of probability with regards to travel, meals and entertainment.

If you think you can take your family out to dinner and write it off as a business expense, then you better be ready for the wrath of the IRS. If, however, you take someone who you are interviewing for an article to dinner, then write that puppy off as a legitimate expense. Just make sure you keep receipts and also keep the article as proof. Similarly, if you go to a writer’s conference in Topeka and spend money on airlines and hotels, keep all receipts, keep all information from the conference and cross-reference them as added proof.

Again, we are talking about clear business purpose and intent, and although those again are nebulous in nature, the IRS will come a’knockin’ if they think you left nebulous behind and entered the world of fantasy.

CAPITAL ASSETS

Think computers, vehicles, cell phones and the like, and also remember that many of these items have dual-purposes that can overlap and cause problems. Do you only use a particular computer for writing and nothing else? If so, then the expense of that computer is a legitimate expense. Do you have a separate cell phone just for your writing business? Fantastic and no problem.

If you are deducting mileage for your writing business, as in a 100 mile drive to interview someone, then by all means deduct the mileage, but again, have it documented. Beginning odometer, ending odometer, keep it all in a business log with the purpose of each trip also mentioned. The IRS loves documentation, and the more you have the better your chances should you ever be audited.

SO THERE YOU HAVE IT

You have just received a crash course on a very difficult subject, but the basics are here for you to at least get started. You can always order online the IRS publications on business expenses, and if you are really into reading there are several good books that will go into much more detail. However, follow the general rule of intent and you will be in good shape should the IRS come calling.

Understanding Progressive Tax Rates

Don Hofstrand writes: Progressive tax rates are common in the United States. The major progressive tax rate is the individual income tax. It is based on the premise that high income individuals should pay tax on a higher percentage of their incomes than low income individuals. This is not to be confused with the simple fact that high income individuals pay more tax because their taxable incomes are higher. For example, if everyone has the same tax rate (e.g., flat tax), then high income individuals will pay more tax than low income individuals simply because their incomes are higher. Conversely, progressive tax rates mean that high income individuals pay at a higher tax rate than low income individuals. High income individuals not only pay more tax because their incomes are higher but they also pay a larger portion of their incomes in taxes than low income individuals because their tax rates are higher.

There is another confusing aspect of progressive tax rates. Although higher levels of taxable income are taxed at a higher tax rate, it does not mean that all of the income is taxed at the higher tax rate. For example, you often hear someone state that he or she is in a certain tax bracket or tax rate (e.g., 35 percent). This does not mean that all of their taxable income is taxed at the 35 percent rate. Rather, it means that only the last portion of their income is taxed at the 35 percent rate. The other portions of their income are taxed at lower tax rates.

For example, if we apply a taxable income of $32,000 to the progressive tax rates in Figure 1, various portions of the taxable income will be taxed at the 0 percent, 15 percent, 25 percent and 35 percent tax rates. The computation of the tax is shown in Table 1. The first $10,000 of taxable income will not be taxed. The second $10,000 will be taxed at the 15 percent rate for a tax of $1,500. The third $10,000 will be taxed at the 25 percent rate for a tax of $2,500. The last $2,000 will be taxed at the rate of 35% for a tax of $700. The total tax on the $32,000 is $4,700 (0 + $1,500 + $2,500 + $700).

Marginal and Average Tax Rates

The marginal tax rate refers to the tax on the last dollar of taxable income. In the example in Table 1, the marginal tax rate on the last dollar of the $32,000 of taxable income is 35 percent. So, if another dollar is added to taxable income, it will be taxed at 35 percent, and 35 cents more tax will be owed. Conversely, if taxable income is reduced by a dollar (e.g., a dollar of tax deduction), the tax will be reduced by 35 cents. So the marginal tax rate is important in computing the impact of more or less taxable income. The marginal tax rate stays the same until taxable income increases to the point the next tax bracket is entered. In this case, the next tax bracket percentage becomes the marginal tax rate.

The average tax rate refers to the percentage of the entire amount of taxable income that is paid in tax. It takes into account all of the tax rates. The average tax rate is computed by dividing the total tax by the total taxable income. In the example, $4,700 of tax is paid on $32,000 of taxable income, so the average tax rate is 14.7 percent ($4,700 / $32,000 = 14.7%). So, 14.7 percent of the $32,000 of taxable income is paid in tax ($4,700).

A comparison of marginal and average tax rates is shown in Table 2. While the marginal tax rates increase in a stairstep fashion, the average tax rates increase gradually over time and are lower than the marginal tax rates.

Using the marginal and average tax rates is important when budgeting after tax returns for a taxable entity. If a budget is created for an entire entity, the average tax rate should be used for computing the amount of tax. Conversely, if a budget is created for only a portion of an entity such as an expansion, then the marginal tax rate should be used for computing the amount of tax.

FOUR REASONS LAWMAKERS ARE SCRUTINIZING HOW COMPANIES TURN SETTLEMENTS FROM WRONGDOING INTO TAX WRITE OFFS

Phineas Baxandall writes: The oil giant BP paid for cleanup and compensation for their massive Gulf oil spill, and rightfully so. But was this a “necessary and ordinary cost of doing business” that deserved a $10 billion tax break? I think most of us would respond with a resounding, “no!”

Companies like BP are being allowed to write off the payments they make as a result of getting caught for misdeeds as tax deductions. By treating these penalties as just another business expense, they effectively force the rest of us to make up for the lost tax revenue.

Let that sink in. When a corporation misbehaves, and gets caught, it’s the American taxpayer that subsidizes the cost. It’s not right, but it’s happening.

Tax laws are supposed to forbid companies from writing off the cost of punitive public payments, such as fines and penalties. However, large companies rarely end up paying big fines or penalties outright. Instead, they have teams of lawyers who negotiate settlement deals with the government. To avoid years of legal wrangling, state and federal agencies almost always agree to a settlement that lets the company off without having to admit guilt and that allows the company to take settlement costs as a tax write off.

How is this possible? These companies tell the IRS that the payments they made, though unfortunate, are just the unavoidable and normal costs of doing business – like paying for a flat tire on a company delivery truck, or a bank writing off some loans when some borrowers go bankrupt. Even if an agency prompted the payment as a direct result of criminal behavior, the company often claims that only a tiny portion of the payment was punitive. That means they’re still allowed to write off the lion’s share of the settlement payments as normal business compensation.  A study by the General Accountability Office found that government agencies typically fail to instruct the IRS on the specific deductibility of these settlements, causing tax authorities to throw their hands up and claim they lack a clear legal basis to prevent these deductions.

The end result: A hidden tax subsidy that essentially rewards America’s largest corporations for wronging the public, while also costing the government billions in lost revenue each year.

But things may be about to change. Four converging factors have brought this issue to a head:

First, the recent unprecedented number of large legal settlements resulting from some very noticeable and bad corporate behavior. BP was forced to pay more than $37 billion in Gulf oil spill settlement and cleanup costs, but they also got an eye-popping $10 billion tax benefit.  In the last few years, there have been at least four pharmaceutical settlements exceeding a billion dollars each. Recent financial scandals related to misleading mortgages, improper foreclosures, interest rate manipulation, and laundering of drug cartel money have led to billions in additional settlements, with many cases still pending. Government’s rebuke to corporate America’s recent misbehavior will translate into many billions of dollars in potential tax write offs.

Second, recurring federal budget standoffs have prompted Congress, and the public, to look much more carefully at every expense, subsidy, and loophole in the budget. While there certainly are wasteful subsidies and misguided spending that continue to escape scrutiny, there is far greater awareness that every dollar that companies avoid paying the Treasury means a dollar cut from public programs, levied in higher taxes for the general public, or added to the national debt. In the context of today’s stark budget tradeoffs and painful cuts, Congress is finding it hard to keep pretending that corporate tax avoidance is a victimless crime.

Third, a few federal agencies have started cracking down on the deduction of some settlements. For instance, the Department of Justice expressly forbid BP from deducting their most recent $4.5 billion settlement from the Gulf spill. The Securities and Exchange Commission (SEC) has said that it will start demanding, in some cases, that corporations admit guilt as part of the settlement agreement. Still, most SEC settlements will not involve an admission or denial of guilt. But those that do admit guilt will presumably have a harder time claiming that no portion of their settlement is punitive. These are small steps, for sure. But public positioning of these federal agencies has brought these hidden tax benefits, which corporations have been receiving just for paying settlements for their own misdeeds, out of the shadows.

Lastly, a recent court decision is likely to embolden companies to deduct even more settlement costs, unless Congress acts to fix the problem. In May, a Boston judge ruled that a company found guilty of bilking Medicare, which had already been told most of their settlement payments were not deductible, could nonetheless deduct most of their settlement payments. The company had been required to pay damages equal to multiple times the amount it had defrauded the government as a result of double billing, paying kickbacks and ordering unnecessary laboratory tests, but the judge ruled that the settlement payments could still be interpreted as an “ordinary and necessary” business expense. This judgment will likely spur even more brazen attempts by companies to cash in on tax benefits from their wrongdoing.

To fix the problem, we need to remove the loopholes that allow these tax write offs, and we need transparency in the settlement process so that we can hold government and corporations accountable for their actions.

• Agencies should make information about all settlements publicly accessible on their websites, including explicit information about what portion of each settlement is meant to be punitive or otherwise designated as non-tax deductible. For the sake of truth-in-advertising, agencies should also report settlement amounts in after-tax terms.
• Congress should be clear that most settlements shouldn’t be written off, and they should require agencies to spell out their reasoning and intent for exceptions.
• All companies involved in settlements should be required to publicly disclose what portion of each settlement they have written off on their taxes and their justification for doing so.

A number of Democrats and Republicans alike have spoken out against the loopholes that allow tax deductions on settlements. It’s high time for lawmakers and agencies to stop rewarding corporate wrongdoing with billions in hidden taxpayer subsidies.

iLA Tax Shield / Mobile Business Owners Advantage, Inc.

We're trying to find an unbiased honest review of this App...however from all we see, the available reviews are paid for press releases.  No, we don't believe the reviews at Google Play, all generic non-specific language and we think they were paid for as well.  In fact we've never seen an accounting/tax software with so many paid for reviews and not a single legit review from a tax site or an App site.   We suspect iLA Tax shield's not a useful product.   Could we be wrong? sure, however we doubt we're wrong in this case.  Nonetheless....here's their story.

iLA Tax Shield Mobile supports the iLA Tax Shield web-based business tool. iLA Tax Shield is powered by Deductr from Business Owners Advantage and is a web-based business tool that helps home business owners maximize their tax deductions. It assists you in quickly tracking your income, expenses, time, and mileage throughout the year, making tax-time virtually effortless. With Deductr's patent-pending technology, your average monthly tax savings is recalculated automatically every time you enter an expense. This helps you make better business decisions and visually shows you the benefits of business ownership.

Note: iLA Tax Shield allows you to use the GPS functionality of your phone to automatically track your mileage. Continued use of the GPS running in the background can dramatically decrease battery life.

The iLA Tax Shield Mobile App is the latest division of the Inspired Living Application Family.

In February 2013 the iLiving App was introduced in the Apple App Store along with the Android Version.

iLA stands for Inspired Living App and offers personal growth and development videos which are streamed directly to your smart phone, tablet, or desktop computer.

For the first time ever personal development, mobile apps, and the network marketing industry have been combined to offer the average person the ability to generate a residual passive income. There has been a lot of chatter and excitement surrounding iLA, especially with their recent announcement of a new App. Here is my…

iLA Tax Shield Mobile App Review

The iLA Tax Shield App had been designed for anyone who runs a business, because as you know, keeping track of all your business expenses can be a daunting and tedious task. Due out in early May, the iLA Tax Shield Mobile App will allow you to keep track of everything from mileage, (which is my biggest downfall) to restaurant receipts, hotel room charges, airline flights, cell phone, land line, utility charges, and anything else you can possibly thing of that is business related.

How The iLA Tax App Works and Why You Need It!

Simply input your business credit card information into the App and iLA Tax Shield does the rest!

Having a mobile App allows you to track all your expenses on the go. Gone are the days of carrying around a notepad to track mileage or the need to keep a file, (shoebox in most cases) of all your receipts. At the push of a button, expense reports can be generated and printed directly from the App.

Many CPA”s have extended their input into the development of this App. The iLA Tax Shield Mobile App uses a file format that when printed out, is every accountants dream. It truly simplifies the whole income tax process.

The iLA Tax Shield App is now available in both App Stores. The application still exists and is available under another name. It has a subscription fee of $19.95 per month and holds a customer retention rate of 90%.

Those are some amazing stats for a $20 dollar a month subscription based application.

iLA associates will be able to offer this application for half that rate. For only $9.95 per month the iLA Tax Shield Mobile App is priced at the same rate as the iLA Personal Development Application.

The really good news is, anyone building a traditional iLA business with the Personal Development App can potentially double their income overnight now that the iLA Tax Shield Mobile App has been released!

How The iLA Compensation Plan Works!

The iLA Tax Shield App will fall under all the same comp plan guidelines as the original iLA App.

iLA offers a 3×7 “Expandable Matrix” with coded bonuses. 

A complete breakdown on theiLA compensation plan can be found here!

There are three ways to enjoy and become a member of iLA:

~ Free Member ~ Personal Development

Allows access to the weekly personal growth video of the week

No Access to the Vault or Past Video’s

No Access to Articles

No Ability to Earn in the Matrix

No Personal Replicated Website to Share!

~ Retail Customer – $6.95 per month ~ Personal Development

Allows Access to Weekly Video’s

Allows Access to Articles

Allows Access to the Vault or Past Video’s

No Ability to Earn in the Matrix

No Personal Replicated Website to Share!

~ Associate – $9.95 per month ~ iLA Tax Shield Customer

As an Associate, every customer or team member that is part of your organization, whether you recruited them or not, you are paid a portion of their monthly subscription fee. Once your team has 12 active members, the associate fee of $9.95 per month is covered and your application is now Free!

There are three Compensation Plan Management levels that can be achieved.

1. Managing Associate – Pays 10% Matching Bonus – Recruit 3 people

2. Senior Associate – Pays 20% Matching Bonus – Recruit 6 people

3. Executive Associate – Pays 40% Matching Bonus – Recruit 10 people

As a managing associate, once the entire matrix fills, it is possible to earn $2500.oo per month in addition to the Coded Bonus Program.

iLA Tax Shield Mobile App Coded Bonus Plan:

The coded bonus works on all three management levels.

Managing Associates are paid a $5 bonus which is coded to their next three team members. This extends down infinitely for everyone those three bring on.

Senior Associates receive an additional $3 bonus, (total $8) which is coded to their next 4 team members, again this goes infinitely deep.

Executive Associates receive an additional $1 bonus (total $9) for every team member recurited. Once again, this $9 bonus is paid to infinity!

To learn about the full iLA Tax Shield Mobile App and Personal Development compensation plan; CLICK HERE!

So to recap:

Ila Apps or the Inspired Living App opportunity, at this time provides two ways to generate a true passive residual income!  Additional Apps will be announced in the future.

1. iLA Personal Development and Growth App

2. iLA Tax Shield Mobile App

Both offer tremendous value. Personal development enriches every aspect of your life, and the iLA Tax Shield App is available for anyone who runs their own business. You can benefit from either when it comes to building a business.

Most of us leave plenty of money on the table by not keeping accurate track of our daily business expenses. iLA Tax Shield Mobile App puts an end to that for good!

Anyone looking to build a part or full time residual income, in my opinion should seriously consider looking into the Inspired Living Program. With no initial start up fee or monthly auto-ships to deal with, for as little as $9.95 a month per application, the potential to generate a serious monthly residual income with this company looks hard to beat.

I have not seen anything in the MLM or Direct Sales industry that comes close. In just over two months iLA has gone viral, attracting over 45,000 associates. It’s estimated that close to 2 million people will join iLA in the next 24 months. Now that’s the true meaning of viral!

To learn more about the iLA Tax Shield Mobile App Revolution and lock in your spot to the Matrix, Click Here!