February Snapshot
March 2, 2010
February was a tumultuous financial month, and I’m surprised that there was still some minimal progress made in the net worth growth. If anything I semi-hinted at yesterday pans out, March will be equally tempestuous with lots of outflow and scurrying to create income to cover it. Which means: blog fodder!
Until then, my vow of Don’t Jinx Yourself pretty much means I’m keeping mum on a lot of fronts.
Taxes are filed — our accountant rose to the occasion and saved me from having to deal with my family’s financial complications. I always mean well but tax time is that time of the year I writhe in agony over dissecting my financial life, entangled with my family’s, and how that means I have to untangle their finances. It’s the one time I let my emotions get the better of me and ostrich myself with regards to money matters.
[By “rose to the occasion” I mean the family accountant called my dad with some tax suggestions before I asked the questions, and won himself my business for another year. I’m filing Head of Household again so that buys me a couple extra thousand in standard deductions and exemptions.]
Between the much reduced income stream, unemployment income (taxes were withheld), HOH filing and having prepaid a lot more in taxes than necessary, my federal effective tax rate is 10.7% and I’m expecting a rather large refund of nearly $1500. Combined with the less-large state refund, I’m going to have a nice lump sum in the Taxes nest egg. That’ll become my Car nest egg. I’ve whined on Twitter about hating shopping for a used car, and the next worse thing to that is having to finance a car.
Of course the PF wisdom is to always avoid a refund but at the end of 2008, I was more concerned about having to pay taxes (which is why I saved cash for it) and paying penalties to boot (hence the extra withholding). It wasn’t worth adjusting partway through the year once we found out that I wasn’t going to be employed post Q3 2009.
This month could have been a lot worse.
As a recent veteran of the used car trenches, you have my sympathy.
I agree that it is better to give the government a big, interest-free loan than it is to pay a penalty (especially given today’s interest rates). Just because it is the conventional wisdom doesn’t make it right for your specific circumstances, and kudos to you for being able to prioritize.
A gain is a gain is a GAIN! Good job!
@The Lost Goat: What did you end up getting?
And thanks, I didn’t have the time or inclination to run the numbers during preparations for a layoff of all things, so it worked out for the best this way.
@Investing Newbie: I’m glad I always have at least one person scolding me about pooh-poohing gains. 🙂 Thanks!