The Profit Prophet

Here's how...and it is NOT what you think. As of 2009, the IRS did a study on how the 400 highest income earners made their money (if you want to go to the source, you can review it here: 400 Individual Tax Returns Reporting the Largest Adjusted Gross Incomes , an annual report issued by the IRS).  To give you the Reader's Digest version, in 2009 $77.4 million got you in the club; but the average earnings were $202.4 million, a lot of money but well down from the $334.8 million average in 2007.  In interesting thing is WHERE they made their money: Wages and salaries:  8.6% Interest: 6.6% Dividends: 13% Partnerships and corporations:  19.9% Capital gains: 45.8% Yep, almost 50% was made in capital gains...investing in theirs or others companies. Diving deeper there can be seen obvious conclusions: Working for a salary won't make you rich. Neither will making only safe "income" investments. Neither will investing only in large companies. Own...

Since tax season is just over the horizon and thought a humor post would could add a little levity concerning the IRS..if that is even possible? In any case, Enjoy... At the end of the tax year, the IRS office sent an inspector to audit the books of a local hospital. While the IRS agent was checking the books, he turned to the CFO of the hospital and said, I notice you buy a lot of bandages. What do you do with the end of the roll when there's too little left to be of any use?" "Good question," noted the CFO. "We save them up and send them back to the bandage company and every once in a while, they send us a free roll." "Oh," replied the auditor, somewhat disappointed that his unusual question had a practical answer. But on he went, in his obnoxious way. “What about all these plaster purchases? What do you do with what's left over after setting a cast on a patient?" "Ah, yes," replied the CFO, realizing that the insp...