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BOURBON FINANCIAL MANAGEMENT
Patrick Bourbon
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In today’s world, especially after the recent financial meltdown, understanding the human emotions and sentiments before investing money is capturing interests of researchers and advisers. We too continue our long love with Behavioral Finance and present you some interesting findings by researchers in this area.

Click here to learn more about:

- Intuitive and Reflective Minds

- Investor Paralysis

- Lack of Investor Discipline

- Regaining and Maintaining Trust

- Overcoming Loss Aversion

- Overcoming Procrastination

- The Ulysses Strategy

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The IRS announced the second voluntary disclosure initiative for undisclosed foreign financial accounts available through August 31, 2011.

http://www.irs.gov/businesses/international/article/0,,id=235699,00.html

http://online.wsj.com/article/SB10001424052748704364004576132431503110852.html

 

Individuals are required to submit Form TD F 90-22.1, the Report of Foreign Bank and Financial Accounts (FBAR), on or before June 30 of each year to report any financial interest in or signature authority over foreign financial accounts maintained during the previous calendar year if the aggregate value of those accounts exceeded $10,000. Taxpayers who fail to file FBARs could potentially face both criminal prosecution and civil penalties of up to 50 percent of the total balance of the foreign accounts for each annual violation. While steadily increasing the risk that taxpayers with undisclosed foreign financial accounts will get caught, the IRS continues to encourage taxpayers to come forward voluntarily to report prior noncompliance.

The first special voluntary disclosure program for offshore accounts closed on October 15, 2009, with over 15,000 taxpayer participants. The IRS decided to open a second disclosure initiative following continued interest from taxpayers with foreign accounts, including approximately 3,000 taxpayer submissions after the official close of the 2009 program. Under the 2011 initiative, individuals are subject to a penalty of up to 25 percent of the amount in the foreign bank accounts in the year with the highest aggregate account balance between 2003 and 2010. Some taxpayers will be eligible for 5 percent or 12.5 percent penalties. Participants also must pay back taxes and interest for up to eight years, along with accuracy-related and delinquency penalties. If a taxpayer makes a timely, truthful and complete disclosure prior to the deadline, the IRS will not recommend criminal prosecution.

We strongly encourage any U.S. taxpayers with undisclosed foreign accounts to consider participation in this disclosure initiative promptly. (Source: IRS.gov and Kattenlaw.com)

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We have discovered that the most valuable things we do for our clients is the selection of mutual funds, the construction of portfolios, and making sure they have enough asset as long as they live by focusing on asset allocation and diversification. If you have any ideas on how we might connect with people who could benefit our help, your advice would be a great help.

 

 

 

 

We would welcome the opportunity to know you better, introduce ourselves, share with you the work we do for our clients, and position ourselves as a useful resource for you. A consultation would be a wise first step toward achieving your vision.

 

Getting to know you, your needs and motivations, is as important as you evaluating our capabilities to help you meet your financial goals. We do not charge a fee for our initial consultation during which we review your portfolio, and discuss your goals and objectives.

 
“ Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally.”
— John Maynard Keynes, The General Theory of Employment, Interest and Money, 1936
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Thanks to the 500+ of you who have read the Best of BFM Newsletter (click here), which summarizes the newsletters you enjoyed in 2010-2011. By now, you should have uncovered that financial decisions are not only driven by rationality but they are also influenced by emotions. You also found out that your vision can literally "trick" you whenever it can (click here)!



Has BFM Helped You Yet? Click Here for Your Personal Guide to Financial Peace of Mind

 
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All Rights Reserved.

Bourbon Financial Management, LLC
616 W. Fulton St. Suite 411
Chicago, IL 60661
(+1) 312 909 6539 - patrick@bourbonfm.com
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This Newsletter is not advice.  Pursuant to the rules of professional conduct set forth in Circular 230, nothing contained in this communication was intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose. This newsletter may be an advertisement pursuant to federal law. 
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, and fitness for a particular purpose.