Be very cautious about taking partners. When the odds of diverging future investment needs, disability, unexpected vices, failures, diseases, death, neurosis, personality conflicts, you name it, are added up, it is usually better to limit your objectives to what you can finance and manage, or rely on a bank or other lender who won't bring the uncertainties and complexities of a partner. Or go into a partnership step by step, sharing only some assets and responsibilities at first, increasing interdependence as knowledge and certainty increase. The best, cheapest way to handle basic tax returns is to do the returns as completely as you can on your own format adaptable to but not identical to the IRS forms, then forward them to your CPA for fine tuning and final form and signatures. Do not try to minimize your income tax liability so much that you do not pay social security.
Social security pays back substantially more than what is put in.
The fundamental rule is do not insure a risk that involves a fixed top amount that you can replace or do without. If you own the asset and are not required to insure to pay your lender's insurance needs, keep the other 50 percent in your pocket each year and buy an extra car with the proceeds while shouldering the risk of replacing the first car or other asset even if it is fully lost. For medical and liability insurance, take the largest deductible possible and do not insure for doctor visits which you typically pay in your deductible anyway. For those with cash available, but who are without reachable assets or are willing to take high risks on liability, be aware that you are not legally required to carry auto liability insurance if you are willing and able to post a cash bond for claimed damages in the event of a collision. This article is printed courtesy of the West San Gabriel Valley Association of Realtors, for whom Merrill W. Francis is legal counsel.