Michael Phelps Vs. Ryan Lochte The London 2012 War

Michael Phelps is 26, Ryan Lochte is 27 they aren't kids anymore.

They are and have been the top two swimmers in the World.  Ryan Lochte has defeated Michael Phelps on the World stage consistently over the last two years. You don't need to remind Michael Phelps.  Michael and Ryan have won gold medals and broken worlds records together as teammates.  They are close friends with a bond that will never be broken but you can throw that all out of the window because Michael Phelps has no desire to appear in his final Olympics (held in London this summer) with individual losses to Ryan Lochte in his final appearance.

Michael Phelps has been consistent saying that he guarantees retirement after this summer.  Why wouldn't he?  He has nothing to prove and is the heir apparent to Rowdy Gaines as the NBC swimming announcer. Michael has been in the booth with both Rowdy Gaines and Dan Hicks, he likes the booth and doesn't need a towel when he leaves.

As for now the time will fly by for Ryan Lochte and Michael Phelps as they are both far more serious about training after their summer performances in Shanghai, China at the FINA World Championships. Ryan Lochte beating Michael Phelps two for two this summer was an embarassment for Michael Phelps, one that he is reminded of every day when he jumps in the water and trains with Bob Bowman, one of the greatest coaches ever.

The war between Phelps and Lochte will be void of any artillery or weapons but there will be carnage when the summer 2012 London Olympics begin with the swimming events.  Michael Phelps won't be beaten easily. No one knows that better than Ryan Lochte. I go into depth about the Ryan Lochte story at Brad Richdale book.

                                            written by Brad Richdale Author
                                            copyright 2012 all rights reserved
                                         blog founded by Bradford Richdale 2011
                                  this story also appears at http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=47286685
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BRAD RICHDALE FOR BRAD RICHDALE WIKIPEDIA THE TRUTH ABOUT THE JOBS REPORTS

I let Friday be a day of celebration for the current administration and admittedly a positive sign if you define positive as more people working than staying at home watching TV.

However here's the truth about the jobs report, it is laced with an underlying malaise that requires some follow up comments.

Presidential Candidate Ross Perot summed it up with his comment on trade agreements (while debating President George H.W. Bush and President Clinton, then Governor Clinton) in a nationally televised debate; Ross Perot said trade agreements are great if you want a bunch of seven dollar an hour chicken farmers.

That was over 19 years ago and sadly Ross Perot was right, we have seasonal jobs and also lower wage jobs due to our exporting jobs overseas. Too many traders that I spoke with yesterday said that the numbers look like good news but are a false positive.

This morning on Bulls and Bears on FOX the discussion was on a slow recovery that is shaky.

We'll see if there is a downward revision on the current numbers when we look at the January jobs report.  Until then don't be fooled by the stability of chicken farming and seasonal retail jobs.

                                                 written by Brad Richdale all rights reserved
                                                      blog founded by Bradford Richdale

Today's Unemployment Numbers What Do They Really Mean? By BRADFORD RICHDALE

It's nice to see good news in today's unemployment numbers, at the age of fifty four I know that a little good news can start an avalanche of belief.

All it takes is for the people with money to start spending it and you would be surprised how momentum can create better opinions for the future of the economy and a recovery.

Despite the good news the lack of a budget deal will continually come back to haunt us.  As I said recently, the Super Committee is, was and will always be Super Bologna.

                                 written by Brad Richdale copyright 2011 all rights reserved
                                               blog founded by Bradford Richdale
                       Brad Richdale is the founder of the Brad Richdale Internet Yellow pages

Jimmy Fallon Under Fire And For Good Reason by BRAD RICHDALE AMAZON

As an Independent I don't come down on party lines but I do think the ethical issue with Michelle Bachman's appearance on Jimmy Fallon's show along with the pre-meditated attack with a theme song too vulgar to mention warrants the firing of the Excutive Producer of Fallon's program and a far more serious reprimand than what NBC offered to Bachman.

We have slipped into behavior that is shameful, yet consistent.

                                   written by Brad Richdale copyright all rights reserved 2011
                                       BLOG FOUNDED BY BRADFORD RICHDALE
                                        design work also found at Brad Richdale Amazon

Phototherapys Mood Altering Effects by Brad Richdale Marketing Newsletter

The most significant general advantageof LEDs can be found in its mood-altering  properties. The motivational advantage pretty much applies to alltherapeutic solutions with LED—direct or indirect LED light therapies. That effect is connected either to colors (also known as frequencies, wavelengthor spectra) or light intensity (we commonly call brightness).  So first we look at the result of the variousLED light therapies and then what role motivation plays in how a therapy can actuallywork with LED.

Bright white light (called white waves) are used for dawnsimulation to treat depression. Redhues are either used alone or often used in combination with bluehues for muscle and other deep pain recovery as well as for circulationimprovement. Color therapy is aspecial field where a combination of colors is used to regulate emotional moodand lift mental conditions (Zezell,2001).

Using LED light in those therapiescan have broad based advantages. The ability to customize light spectrums and color combination togive off the exact kind of light needed per condition allows LEDsincredible flexibility.  And because nofilter is needed to regulate light, LED light therapy is much more effective—noloss of light happens since there are no filters used to obstruct it.

LEDs pack huge punch in termsof intensity and brightness that in turn come from great number tiny units. Yeta package of a large array of them is still relatively light and can have avery compact design which makes portability easier to manufacture.

When LED light therapy employs blue light it is designed to alert your body as the bright blue skiesof daylight does. Apollo, acompany with a long-term interest in commercializing light therapyproducts concluded through extensive research that LEDs have a significantmotivational effect.  On the other hand many independentresearch organizations have found that redlight also has profound effects on the body. According to two studies bythe Mayo Clinic, IR light or red light can be employed to regulate your body's circadian clock(the biological clock) that is otherwise done by the daylight of the sun.  In either case - blue or red light – enhance primal regulatory systems thatsubconsciously control the body and offset poor triggering from the lack of sunand blue sky light. Psychological problems such as depression brought on by systemsthat are poorly triggered by the lack of sun and blue sky can be counteracted with Phototherapy (Willis, 1997).
 
                                                              story written by Brad Richdale

                                                           blog founded by Bradford Richdale

                                                       blog founded by Bradford Richdale 2011

QDIA QUESTIONS CONTINUE DESPITE SEMINAR by Brad Richdale

institution. As a practical matter, we believe plans will use money market accounts or similar short-term vehicles for this purpose.  posted by Brad Richdale

The long-term QDIAs are target maturity funds or models (e.g., lifecycle or target date funds), balanced funds or models (including risk-based lifestyle funds) and managed accounts.

The grandfathered QDIA is a stable value investment. The regulation defines it generally as a product “designed to guarantee principal and a rate of return generally consistent with that earned on intermediate investment grade bonds.” (Note that there are additional limitations in the definition.) Defaults in this grandfathered option on the date the regulation was issued (October 24, 2007), plus any additional amounts that are deposited into the stable value option on or before December 23, 2007, will be grandfathered as a QDIA. However, to obtain fiduciary protection for deposits for those previously defaulted participants that are made after December 23, the new amounts must be placed in a long-term QDIA.

In a future bulletin, we will discuss each of these QDIAs in more detail.

Q: What must fiduciaries do after selecting a particular category or type of QDIA investment?

Once a fiduciary has identified the type of QDIA that will be used by the plan, the fiduciary must engage in a prudent process to select the particular investment fund, model portfolio, or managed account service. In addition, the fiduciary must monitor that selection to ensure that it remains a prudent choice.

The preamble states the general rule regarding a fiduciary’s duties and provides an example to illustrate the application of those duties: “the plan fiduciary must prudently select and monitor an investment fund, model portfolio, or investment management service within any category of qualified default investment alternatives in accordance with ERISA’s general fiduciary rules. For example, a plan fiduciary that chooses an investment management service that is intended to comply with paragraph (e)(4)(iii) [the investment manager alternative] of the final regulation must undertake a careful evaluation to prudently select among different investment management services.”

Similar standards would apply to other forms of QDIAs, for example, to the selection of a suite of target maturity funds.

Q: Were there any surprises in the regulation?

• 120-Day Short-Term Investment Option – The money market QDIA – for the limited period of 120 days – was not in the proposed regulation. As a result, it was somewhat of a surprise. We assume it is primarily intended to coordinate with the provision in the Internal Revenue Code allowing automatically enrolled participants to request the withdrawal of their accounts within 90 days. However, it will also be helpful for avoiding transfer fees (e.g., redemption fees) for withdrawals and transfers within the first 90 days.

Grandfathering for Stable Value – The regulation provides for permanent QDIA protection for stable value defaults made before December 24, 2007. However, any defaults of deferrals, rollovers or company contributions for those previously defaulted participants after the effective date of the regulation must be put into a long-term QDIA to be protected. Undoubtedly, this is a concession to the insurance industry, which was concerned about the potential financial disruption. 


                                written by Brad Richdale copyright 2011 all rights reserved
                                             blog founded by Bradford Richdale

THE INS AND OUTS OF ESTATE PLANNING TRUSTS by BRAD RICHDALE

1.  By avoiding the probate process, the trust agreement won’t become public record and therefore will protect your property and the beneficiaries after you pass away.

A revocable living trust follows three different phases of the individual’s life: while the trustmaker is alive, if the trustmaker becomes mentally incapacitated and after the trustmaker dies. I go into more detail about this on Brad Richdale scam in last month's column.

Phase One: The Trustmaker Is Alive and Well

While the trustmaker is alive and well, the trust agreement allows for specific provisions that the individual must manage, invest in and spend the assets for his or her own benefit. Throughout the person’s life, he or she will go on as usual regarding the assets that have been funded into the trust and the trustmaker will sign as a “trustee” instead of as an individual. The trustmaker will also have to file different tax forms.

Phase Two: The Trustmaker Becomes Mentally Incapacitated

The trust will specify what should happen if the trustmaker becomes mentally incapacitated. If the trustmaker is no longer able to act as the trustee due to mental illness, the agreement will name a successor “Disability Trustee” that will handle the management and investment of the trust funds. The Disability Trustee will then be able to follow through with the trustmaker’s finances and pay the bills.

Phase Three: The Trustmaker Dies

When the trustmaker dies, the “Successor Trustee” will take hold of the trust and pay any of the trustmaker’s final bills or debts. The agreement will also contain instructions about who will get the balance of the trust funds and they will be distributed accordingly.

How and When To Fund A Revocable Living Trust

A revocable living trust can be opened at any time and you’d be surprised to know that you don’t need to put anything into it when you set it up. Some individuals will put a small amount of money into the trust initially, which is known as an “unfunded” trust. These are intended to be used in the future, in case of disability or during old age. Although the trust is empty, you can add to it when you want and still benefit from not having your property bound to a trust. Those looking for an alternative to a future guardianship also use unfunded trusts.

Irrevocable Trusts

An irrevocable trust is designed so it can’t be changed, amended or revoked. Once the trust has been established, the written terms of the agreement are set in stone and can’t be changed for any reason. There are two types of irrevocable trusts.

A living irrevocable trust, also called an Inter Vivos irrevocable trust, is created and funded by a living trustmaker. Some examples include lifetime gifting trusts like a Qualified Personal Residence trust, irrevocable life insurance trusts and lifetime charitable trusts. The other type is called a testamentary irrevocable trust and is created and funded after someone’s death and no living person has the legal authority to change the terms of the trust.

Irrevocable trusts can take on a variety of different forms and are ideal for estate planning goals. For example, an irrevocable life insurance trust is used to remove the value of property from a person’s estate so the property isn’t taxed when the person passes away. Therefore, if the beneficiary doesn’t own the assets, they can’t be taxed when the person dies.

                                                  written by Brad Richdale  copyright 2010 all rights reserved
                                                           blog by Bradford Richdale
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THE TRUTH ABOUT FAMILY LIMITED PARTNERSHIPS BY BRAD RICHDALE

1.  Legacy planning – Not only can a trust be used to minimize or eliminate estate taxes, but it can also be used to create an ongoing legacy for future generations. Several states will allow for the trust to continue on for hundreds of years so that the individuals can establish the trust for their current and future family members. Legacies can also be created in a community by setting up a trust or foundation that will provide a gift that will last for many years.

2.  Asset protection – There are many types of trusts that also offer the added bonus of protection of judgments and even divorce decrees. For example, offshore trusts are used to keep assets away from creditors and gifting through a family limited liability corporation offers protection for the property owned by the company.

Family Limited Partnerships

Family limited partnerships (FLP) have been popular for several years as asset protection and tax planning. It’s a type of limited partnership that is formed by an official filing with the Secretary of the State in the state in which you reside. Family members control the entity and are used to own family assets and permits transfers of interests to be discounted for gift and estate tax purposes. The partnership is a separate legal entity and any income or loss is reported on the tax return. Factors such as family investments, savings and titles to businesses and real estate investments are transferred into the FLP and are protected from potential claims and lawsuits if the partnership is properly structured. The partnership is also used to transfer land and other assets from one generation to another, all while reducing the total value of the asset and reducing estate taxes.

To get a clearer understanding of how FLPs work, here’s an example. Two parents establish an FLP and transfer $1 million in assets and give 40 percent of the limited partnership interests to their children. The parents maintain full control over the property and the interest cannot control of affect the decisions made about how the asset will be dispersed, nor can it be sold or converted into cash. Tax law says that the interest is not $400,000, but is worth something less than that amount. In turn, the parents have transferred that $400,000 value to their children and have reduced their future estate taxes by more than $75,000. The actual savings is based on the actual value of the assets transferred into the FLP, the size of the gift adopted and the amount of the discount applied.

It’s pretty clear that the IRS is greatly opposed to these partnerships in regards to death taxes because they lose out on potential gains. When an FLP is created around the same time of a parent’s death for the sole purpose of reducing estate taxes without considering legal formalities, the challenge made by the IRS is successful.

FLPs are known as a little tax loophole when it comes to asset protection and estate planning and even Forbes Magazine claimed that people were successfully using this technique to get a discount on the value of their estate by up to 90 percent.

Revocable Living Trusts

A revocable living trust is the more popular of the two types of trusts, mainly because it can be changed at any time. This type of legal document is created to hold and own the individual, or trustmaker’s, assets. In turn, the trusts are invested and spent to benefit the trustmaker as the beneficiary by a trustee. In many cases, the trustmaker is also the trustee, and some people may opt to have an institution manage their property. The three parties involved are you, the settler or grantor who creates the trust; the trustee, the person who agrees to accept the property and manage it according to the trust agreement; and the beneficiaries, those who will receive the income of the property or the property itself in the trust.

The downside of a revocable trust is that assets funded into the trust are still considered to be personal assets for creditor and estate tax purposes. For instance, if you’re sued, the trust offers no creditor protection and you will be subject to state and federal estate taxes.

Since the assets of a revocable living trust will no longer be owned by the trustmaker but by the trustee of the trust, the assets will avoid going through probate to prove ownership by the courts. Instead, the Administrative Trustee can settle the trust without any court supervision.

There are three main reasons why revocable living trusts are preferred:

1.  In the case that the trustmaker becomes mentally incapacitated, a Disability Trustee can manage the trust, rather than a court-supervised guardian.

2.  Assets in a revocable living trust will avoid probate and pass directly to the beneficiaries named in the agreement.
                                                    written by Bradford Richdale

                                     copyright Brad Richdale TM 2010 all rights reserved

                                              

THE INSIDE TRACK ON LIVING WILLS

Living Wills

Even if you’re not a frequent visitor to the doctor’s office or rarely get sick, it’s important to make decisions now about your future healthcare. A living will is a document or description on how you want future healthcare issues to be handled in the event that you become unable to make those decisions on your own. It’s never pleasant to think about what would happen if you couldn’t think or act for yourself, so make sure to take care of this issue early on. Your wishes could still be carried through, even if you aren’t able to communicate them properly in the future. In a living will, you will be able to specify what should happen regarding life-sustaining procedures and treatments, as well as artificially provided nutrition. It might also be smart to look into the option of “double power of attorney,” which is a status where you can enlist your spouse or family member to make decisions on your behalf.

What Happens If You Don’t Have a Will or Trust?

Dying intestate is the legal term used for someone who died without a will. If you don’t specify who will receive your personal belongings once you pass away, the state will control and distribute your property to your spouse and/or your closest heirs.

If you don’t nominate a guardian for your minor children before you pass away, the state makes the decision in appointing who the legal guardian will be. Also, if you don’t appoint a person to carry out with your wishes, the state can appoint anyone to be the administrator of the property. The administrator may also have to pay various fees at your expense of your estate before he or she can distribute your assets.

The Importance of Estate Planning

Estate planning: It’s something no one ever wants to deal with or plan. It’s only human that we don’t want to spend too much time thinking about what would happen after we’ve passed away. However, it is extremely vital that a person’s assets and/or estate are properly taken care of. Without proper assessment of a comprehensive estate plan, all of the work you’ve done throughout your life could be lost or given to the wrong beneficiaries.

In prior generations, it was believed that only the wealthy population ever had to deal with estate planning. However, in today’s age, even middle-income earners are learning for optimal ways to invest their money throughout their lifetime to make the most of their income.

The purpose of estate planning is to aid in the preparation of the transferring of your assets to others upon your death. You will be able to specify where each of your assets will go once you pass away, by determining the recipient, what he or she will receive and how to carry out each transfer with minimal tax consequences to the recipient, provided that the estate has enough liquidity to meet its instructions. Estate taxes can also be minimal to the owner of the estate given that advanced estate planning has been established.

It’s also extremely important to understand that property laws can vary from state to state so it’s imperative that you speak with an estate attorney and a professional in the finance industry to properly engage your situation under the appropriate state regulations.

Net Worth: The First Step

Before you start thinking of the people who will benefit from your assets, you’ll first need to determine what you have when you die. The term “estate” refers to all of the assets you own, such as material investments, real estate, property, life insurance, personal possessions, cash retirement accounts and anything else of value. At the time of death, any debts should be subtracted from your total asset amount to best determine your overall net worth.

Taxation is another factor to keep in mind when determining your net worth. Figure out how much you will have to pay in taxes and this will best reveal how much your beneficiaries will receive. For instance, some states have estate taxes, paid by you, and other states have inheritance taxes, paid by the beneficiary.

Reasons for Advanced Estate Planning

There are three main reasons for advanced estate planning:

1.  A reduction in estate taxes – This happens when assets are distributed as a gift, such as a highly appreciated stock into a trust for the benefit of a spouse or children, or for the benefit of a charitable organization, corporation or business. Once the asset is gifted into a trust, the estate owner can no longer use the asset for their own tax purposes.


                           written by Brad Richdale TM copyright 2010 all rights reserved
                                        blog by Bradford Richdale


                     Brad Richdale is the creator of the Brad Richdale Internet Yellow pages

Brad Richdale for: Brad Richdale Book Writing Strategies BULLET PROOFING FROM LAWSUITS IN THE UNITED STATES

How to Bulletproof Yourself from Lawsuits and Medical Bankruptcy

Most people think they have enough time to plan for the dispersion of their assets and estate later in life, but the sad reality is that people can become bed ridden or pass away without a moment’s notice. Because of the morbid reality of the entire topic, many people will wait until after retirement or even after their children have left the nest before they even think about writing a will or deciding how to hand over their belongings when they are no longer alive.

Trusts and Wills

Both trusts and wills can be utilized to help distribute your assets and belongings at the time of your death. However, it’s best to understand both options and decide which route will be the best in your personal situation.

Trusts

The main difference between a trust and a will is that your property won’t go through the probate process when you die, meaning that the beneficiaries won’t need the court system to determine the legalities of the will. During probate, much of the estate is taxed and also feeds attorneys’ fees. Attorneys and financial advisers can help with professional advice when creating a trust and do-it-yourself kits are also available, but make sure you cover all parts of the document before submitting.

Wills

A will is a legal document that helps to map out where and to whom your property and other personal items will be distributed to at the time of your death. The executor of the will is the person who will designate that your wishes are followed through. A will is subject to probate proceedings and provides court supervision for handling any beneficiary challenges and creditor disputes. Wills also become public record at the time of your death, so if this is a concern, you may want to look into other options. The cost of a will is much more affordable, but probate proceedings can be incredibly substantial. If your children are still minors at the time of your death, a will allows for you to nominate a guardian to be responsible for your child.

Living Trusts

Unlike a will, a living trust can start benefiting you while you’re still alive. A living trust is established during your lifetime and is revocable, meaning you can make changes to it as needed. You can transfer all or most of your property into the living trust throughout your lifetime and any excluded assets can be transferred into the trust when you die through a pour-over will. Like other options, a living trust is used to manage your property before and after your death and also determines how those assets and the income earned are distributed at the time of your passing.

If you become disabled or incapacitated, a successor trustee will be able to manage your financial affairs. One of the best reasons to opt for a living trust is that it’s not subject to probate and all provisions of the trust will remain private. This type of trust will cost more to prepare, manage and fund, but avoids all of the probate costs if all of the assets were held by the trust.

                                    written by Brad Richdale copyright 2010 all rights reserved
                                                   blog founded by Bradford Richdale

THE QUESTIONS SHOULD ASK QDIA'S IN CALIFORNIA BY BRAD RICHDALE

I think the younger and more politically ambitious the governor or mayor, the more onerous property taxation will be. Here in Looneyville, otherwise known as California, taxation is just crazy and there are a lot of angry people just like you and I. It’s the same everywhere, isn’t it?  

This is what you need to remember more than anything else if you go to ask for a lower valuation: getting market prices and other similar properties will impress an assessor. Especially if you correlate costs for the land, the structure, the front footage value and even pictures of similar properties will give you evidence that your property is overvalued.

The more you prepare the better off you are: know the rules for the re-valuation; ask the staff in the assessor’s office kindly and be needy when you first ask for help; get the state’s book on property tax laws; and try to find a great M.A.I. in your area if you own a lot of real estate. In places where I kicked assessors like cans, I knew the values better than they did and they knew it. I have this weird “Rain Man” quality. I remember numbers and facts that involve numbers and it would freak assessors out because I could list recent sales by memory, price and date. Heck, it freaked me out...and it still does.

Remember this above all else, market values will be volatile as will the stability of cities. With volatile market conditions and events, the first half of a valuation could be blown all to hell if the revaluation is in a major city and then half way through, there is a 12-day riot. 

Don’t be afraid of an assessor, especially if you are a senior. If you are kind and make a great first impression, they are usually very helpful. I’ve had assessors admit mechanical errors within 10 minutes of meeting and going over a property, especially when I walked in with blue prints and a humble smile.

They are paid by you and no matter how a person is in the assessor’s office acts; you can always go to the mayor’s office. If you are a senior or tax payer, fully describe what happened. It’s also wise at the mayor’s office to assert that you are very active politically and compliment the mayor if you like what he or she has done. 

Can I guarantee you will get every bill reduced on every property you own or investigate? No. But by now you understand that it is a giant mess that no one has ever really exposed. It’s a flawed system that I bet will become more confusing and onerous. 

Don’t be afraid. You do have the right to know how you are taxed. Be humble and if that doesn’t work, go to the mayor’s office and impress them how much you need their help. Remember when working with government employees, honey works better than vinegar.

If you have questions, call our office. I’m training everyone on property taxation so we can hopefully answer questions.


                                  written by Brad Richdale copyright 2010 all rights reserved
                                                blog by Bradford Richdale

                                                    

THE INSIDE SCOOP ON North Carolina Property Taxes BRAD RICHDALE SCAM

We said to one another, “The worst that can happen is we can get our assess kicked.”

The appeal was in Raleigh, North Carolina and the prevailing law at the time for property tax valuation was that the “market approach” was far and away the most important factor in arriving at values for property taxation. The cost and income approach were considered but really not used.

To be honest with you, to me, the real true market value is the still the best way to value property for tax purposes. But there are times you go to war just because you can and someone begs you and draws you in and like a fool, you make a mistake to engage.

Here were the facts of the case. For years, developers in North and South Carolina built and sold timesharing by the week, tenth and quarter share ownership plans on the East coast. Many developers were business acquaintances and a lot of them were very big clients.

So the assessor re-values the property (in an incredibly beautiful, yet hurricane prone area of North Carolina) by the precise market value of the quarter share, tenth share or weekly fractional ownership price paid in a fair market transaction. My friend was a very good trial lawyer and we knew we had a five percent chance of winning and our semblance of extremely logical BS that had worked in other similar landmark cases was our strategy for this uphill climb. 

A case at this level is serious and the implications were far reaching. I told clients after the initial meeting with the county assessor, “This guy is good and has a political agenda. I think we will get clobbered.” The local mayor cares less about second homeowners because they don’t vote but he could increase taxation by law. He was right and had to cut through us like a hot knife through butter. Man, was this guy connected.

After the county’s opening statement and the reaction on the faces of the board, I knew we were screwed. The case was decided before we ever stepped into the room. They even discussed when they would disallow our evidence – we got trounced. After all, it was North Carolina, and why be fair when it comes to tourists and second home taxation when you don’t need to be?

The timesharing taxation argument that had worked in South Carolina on two occasions didn’t work because the law was clearly on their side and the case was clearly decided long before we ever entered the courtroom. The files were flagged with post it notes and each member of the board had their files marked in the same places. I have had my ass kicked several times in my life, but this was like getting your ass kicked while you wore a nicely starched white shirt; it was formal and more impactful.

Am I an enemy of property taxation? Heck no! You can’t pay for the cops to come arrest your second cousin while he beats your wife unless you have a property tax system. What I’m against is spending levels remaining the same or slightly lower than before, the collapse of the financial system and $472 rolling stop sign tickets.

I can afford a $472 ticket. I’m very angry about it and on every show I’m on, it will come up. I’m angry about the lady that makes $472 a week getting the ticket. For her, I’m exceptionally pissed off. The $472 ticket is just a start. Property taxes will be the home of political shenanigans. Mayors don’t like firing firemen so prepare to get hammered if you own property.  

                                              written by Brad Richdale
                                               blog by Bradford Richdale

Property Tax Reduction Part IN THE STATE OF TEXAS BY BRAD RICHDALE

can build an argument with similar properties as proof in a prepared presentation, you can informally argue the value will be very likely to agree if your evidence is conclusive.

If you want to hire a professional, hire an M.A.I. who is an appraiser that is of the most senior designation for qualifications. An assessor will tend to have respect for someone with professional credentials attending with you or preparing the case with you. I don’t suggest bringing an attorney to an informal meeting with an assessor because they want to dominate and assessors act more aggressively. I’ve witnessed it all over the country. 

But if you are an attorney, I suggest getting your M.A.I. or hiring a local M.A.I. and start the representation in property taxation. It’s a great model for legal income, especially on a contingency fee basis and price volatility will keep it that way.

I do think that knowing what the state’s laws are for property tax valuations is critically important to be successful in arguing for reduced value and for protecting your future. I expect that some states will change laws and start to focus on the cost and income approach to value to confuse the matter even more. I give this a 100 percent chance of happening; it’s just a matter of when. Mayors don’t like firing policemen and governors like building bridges, especially when they collapse.

Right now it costs way more to replace homes and buildings than what they are worth and incomes on rental real estate are plummeting. If states legislate to weigh equally with market, the cost and income approach to value property for taxation will be an even bigger mess and easier to win cases in my opinion (but even more confusing to folks that haven’t read this).  

Knowing my faith in government, I suspect there will be more new property tax legislation than ever before that will increase the confusion for the taxpayer and increase revenues.

Semi-formal hearings in some states happen annually and in all states happen during re-valuations. If you meet with your assessor during the designated period during a re-valuation and he says no to a lower value, then the next step is to go to the local Board of Equalization and Review. The title might not be exactly the same, but the board may be idiots or officials that really know their stuff. It’s great to see them at work before your hearing, which is open to the public.

For instance, if you are in Pooler, Georgia where Boss Hog lives, he may just deny you for no reason and his kangaroo court could see if you are willing to go the state board, it happens. Or you have a great case and the board says yes to your reduced value and you save $13,000. We may see a period where assessors are like insurance companies and will deny claims and make everyone either go to the next level or go away.

Here’s a rule of thumb, the larger the city and the more spending scheduled, the harder the fight. One nice thing about disputing property tax values is that governments are adroit at caring for themselves so the appeals and offices are usually in nice buildings.

The state level of appeal is an entirely different ball game and the case runs much like a formal court case. 

A great litigator who I knew years ago and I took on a lousy case that we both thought might hammer the county on behalf of resort developers and owners.


                                                          written by Brad Richdale
                                                       blog founded by Bradford Richdale

Boston, Austin, Philadelphia, Los Angeles and New York City Property Tax LOOPHOLES By Brad Richdale

arguing lower property values due to changing market conditions.

The “exploding” sub prime-type loans will keep resetting and blowing up until 2013 so I’m sure there will be even more bank owned real estate flooding the market. This means that maybe other than a few calm places, all kinds of never before seen issues could screw up market values in hours or minutes. 

Market value is the value most states say they rely upon for valuation for the purposes of taxation. Again, I believe market values are going to be more volatile than ever before in United States. History and the volatility will continue for years to come. Volatility makes arguing that market values will become lower much easier.

If we have an 8.4 earthquake in Los Angeles and skyscrapers fall, the real estate market will be like burned toast in 10 minutes. Values could fall 80 percent in hours and never come back. 

My point again is market price, market price, market price! Every state has a book you can purchase that states its laws on real estate taxation. Usually the State Department of Revenue or similar institution will tell you how to order yours. 

I used to keep it to myself that I knew the state’s statutes on property taxation until the right time, but I always knew the state’s law on property tax valuation before I stepped foot into the assessor’s office. The paperback book that describes the statutes or laws for property tax re-valuation is not that expensive and the assessors usually know the laws. If you want to challenge them, you need to know their state’s laws so call your state’s department of revenue and ask how to get the book or go on line and search for it.

Now the Fun Part Begins

Let’s say that you did the “I’m dumb and need help” thing and met with the assessor to understand your property card and how they came to your value and you believe the value to be fair. If this happens, be grateful but I doubt the value will be fair.  Once again, we have too many constantly changing market factors that could affect everyone in this country quickly.

Even if you think you got a fair deal, you need to pull property cards of others in your neighborhood.  It’s the same process if you own commercial, industrial or any type of real estate.

Remember when companies or assessors re-value counties, they do so with computer programs. I’ve seen values double with no basis in revaluations. I had a County Assessor who had all the professional credentials imaginable see the results and say, “I guess we need to fix them.” You think? It was fall on the ground funny when I’d play the dumb moron role and hold their re-valuation manual and the property tax bill and show them the mistake that violated the manual.

I would often build a case that wasn’t simple by looking at 15 similar properties and try to see a trend in the valuations and would see the properties physically. I would always find mistakes that were easy to argue in almost 100 percent of the counties and municipalities I visited.

There are some hard-nosed, very bright assessors in big cities that are very full of themselves and they hate taxpayers. I won’t name names, but I will say this. Categorically, people are getting more pissed off than ever before about property taxes and hard-nosed arrogant assessors and angry tax payers are about to collide. I don’t want to be around when they do.

If you take the time to analyze how 15 properties around or similar to yours are valued, you will either say these guys did a good job or these guys are morons. Rarely did I find that they did a fair job, either D minus or B plus or better.

If you analyze 15 properties and their tax values, you will see some clues and you may even find a person who helps you enlist their help to get your argument prepared. I had it happen all the time when I was kind and gracious, especially with people that worked in the assessor’s office but wasn’t an assessor.

If you believe in this analysis of 15 similar properties that you have been taken advantage of, start to build your case and take copious notes as you do. If you organize a presentation of the facts sequentially and

                                                       written by Bradford Richdale 

                                         copyright Brad Richdale TM 2010 all rights reserved

GETTING YOUR PROPERTY TAXES REDUCED IN MINUTES BY BRAD RICHDALE

Chapter VII

The Importance of Your Property Records

In the last chapter I mentioned that a file exists on every property in a municipality. That property card is the foundation of your value and taxation – all the reasons for your property value are on the card or it can lead you to them.

On your property tax card or page, you will find the acreage or size of lot that you supposedly own. I mentioned this last chapter but can’t stress it enough. Go to the assessor’s office, all while being kind, curious, considerate and gracious and ask for an assessor to speak to you about your property. Have them explain the card and how they got to the value, especially when it’s a new valuation. At this time, you may discover that you are being assessed for more property than you own. It’s my experience that you have a one in five chance of finding a mistake on how much property you own. These mistakes cause multiple-year refunds.

In a government office, you will get more with honey than vinegar and once you understand your property card, you are very dangerous. Sometimes if you are female, you get the right assessor and he’s willing to let you in on some of the mistakes he sees that get made often. Shut up and listen to Romeo. If you are a guy and have a female assessor, ride the same wave, nice flirting works.

If there has been a re-valuation, the manual will explain a sample property card and what each figure or designation means, making it easy to figure it out on your own. However if you can find an assessor who likes to talk, they will eventually hang themselves with some simple fact or mistake that has catastrophic effects on property values that may be in your favor.

But if you can act oblivious and somewhat needy, get someone in the assessor’s office to explain how the system works to you in plain language. At the age of 52, I have perfected this and it is the basis of most of my successes. Then again acting stupid is easy for me and comes naturally.

How They Come Up With Property Values

So let me give you a frequent scenario and why challenging property tax values may be the most fun business of 2010 and beyond in the United States.

Here we go market value…Zippidy, Zippidy do-da-day, “What’s your house worth?” What’s funny is what your house worth today? Will it be worth the same in ten weeks or three weeks?

You see, there are three accepted courses to the valuation of real estate, market, income and cost, but market value is the usual winner and how I got my ass kicked in a big case (more on that later).

We are not talking rocket science here. Most states will acknowledge that they consider income and cost (which is mostly BS) and they most commonly rely on market value. We have seen a global currency collapse so here’s my question again, “What’s market value?”

I think the real estate market isn’t even close to the bottom. 

No one has factored in what civil unrest will do to property values in large cities. No one has factored in what is next for the dollar as it loses reserve currency status and how different your life will be. 

Worst of all, no one has factored in war, which has become more and more of a reality with each passing day. At the very moment I’m writing this, there is no war in Iran but there will be, and China and Russia will jump in and voilà, World War III.

By the way, I don’t think that 12/21/12 is the last day of the world’s existence, but the Biblical prophecies are coming true. Whether you are a Jew, Christian, Atheist, Agnostic or whatever…the Bible, Old and New Testament, are occurring on cue, event by event.

No one has factored in what the next big earthquake will do to California’s real estate. Get out of Los Angeles and the Valley when this quake occurs because you will know that God’s judgment has been levied for our sins. I’m praying for my friends that live in that area that God will protect them no matter what.

I’ve brought all these elements up to make sure you realize more than anything that there will be very few stable, consistent real estate markets. I also believe that market volatility is beginning and not even close to stabilizing. All of this instability due to wild market conditions leads right into your hands in

                                                              written by Bradford Richdale 
              
                                                         copyright Brad Richdale TM 2010 all rights reserved