13 February 2011

Because debt group isn't meeting this month

I calculated our taxes payable to the Internal Revenue Service. The amount is in the four digit range, and that's to the LEFT of the decimal point. I have the money, but coping with a temporary reduction in income is challenging enough.

How I choose to manage this problem: I can budget what is spent on household bills and miscellanea in a given payperiod. At the beginning of the payperiod, I will apportion $50 to home equity line of credit, $50 to money market account, and $50 to investment in equities I have researched enough to trust they'll return over 4% in value. The HELOC is 3%, so I'll make a 3% return paying that, the Money market account returns 0.50%, and my chosen investments are Procter & Gamble, silver, GoldCorp (NYSE: GG), and Central Fund of Canada (NYSE: CEF). That way I might be out two thousand dollars come April 15, but I will have $250 less debt, $10 profit, and $12.50 of accrued interest in the money market account. Isn't it a shame that is the best I can do.

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