Friday, August 31, 2012

Is timing our Social Security benefits important?

Is timing our Social Security benefits important?

When planning retirement benefits, know the rules:

1. Starting benefits at age 62, cuts benefits for life. Women live longer and are more likely to end up with SS benefits alone. Women who wait to age 70 receive ¼ more than at age 62 or 65, so waiting may be best for her.

2. Coordinating benefits and working may help both of you. This recession’s structural unemployment affects men more than woman. Men can take benefits at age 62 if they cannot find meaningful work. Women can continue working to age 70 to maximize their benefits and take ½ the man’s benefits if they have attained their full retirement age. The total benefits may equal what the man would have received if he started later. This preserves the woman’s increase in benefits for the rest of her life. She loses nothing of her own work credits by taking his too.

3. Medicare can be engaged at age 65 but may not be needed if the woman’s coverage is better or cheaper through her employer. Medicare does not cover all expenses. Medicare supplements and Part B are usually necessary.

It may be helpful to meet with a SS official when one of you reaches age 62 to find out what works for you. Call your local office for an appointment and free analysis.


CAUTION: Advisors giving poor advice to clients on SS, survey says

The newly released findings from the Wharton School's Pension Research Council concluded that “many advisers still approach Social Security claiming as an individual decision rather than a household decision (even though) clients would be better served if a household- approach was utilized.”


Financial Power in the 21st Century: $1,000,000 Tax-FREE

Accumulate $200,000, $500,000, $1,000,000 with NO taxes …  EVER.

Financial power in the 21st century is tax-FREE income

  • Use a special tax haven to protect all your dividends, interest and capital gains
  • Contribute $9 a day to your tax-free account
  • Earn 9% a year on your wealth with no income taxes
  • Spend 9% of your wealth with no income taxes

Isn't it time you started using the tax laws to your benefit like the people in the top 1% ! How does Warren Buffett pay only 17% total tax?

How does Mitt Romney pay less than 13.9%? You may not receive $21 million a year like Romney does but you can use a tax haven he can't use to compound $9 a day into $1,000,000. Compounding high investment earnings is “the most powerful force in the universe.” Compounding is money earning money on its earnings over time. Simple but powerful and ... no tax … ever.


Two Americas—states providing health insurance to uninsureds

California, Connecticut, Hawaii, Iowa, Maryland, Nevada, New York, and Vermont have received new grants to help support the establishment of Affordable Insurance Exchanges. GOP states have said no to Exchanges for us.


TX voters will NOT need special ID to vote—GOP lost voter supression tactic

A federal appeals court in Washington Thursday struck down the Texas voter ID law requiring photos for voters at the polls, calling it racially discriminatory.

The decision is a major victory for the Obama administration and its Democratic allies, which had challenged the law.


Is critical illness insurance right for you?
This insurance is being pushed as a group plan in small companies. However, it only covers the unusual illness-- such as cancer, heart attack or stroke. If you have to go the hospital for other reasons, you may be faced with a large bill you can’t pay. This kind of policy is popular in Canada because everyone is covered already by national health and it is the only product insurers can sell. If you cannot afford a comprehensive policy which covers all the expenses of these illnesses, compare a high-deductible comprehensive plan. You will have a limit on your expenses but large bills will be covered. You do not need critical ill policy if you have the more comprehensive one.



SCAMS           “Only the little people pay taxes.” Leona Helmsley


Romney/Ryan claim to cut taxes AND not increase the deficit—except for workers!

Romney is still committed to making his tax cuts "revenue neutral"--in other words, not leading to an increase in the deficit.

When asked how this was possible, given the magnitude of the cuts (20% across the board on personal income taxes, along with a 10-point cut to corporate income taxes), Hubbard, his spokesman, explained that the cuts would be offset by:

  • Stronger economic growth, and
  • "Broadening the base" of taxpayers (in other words, having poor and lower-middle-income Americans pay income tax)

In the past, Romney has also promised to increase revenue by eliminating some loopholes and deductions. Romney has never been specific about which loopholes he would eliminate, and Hubbard did not provide any specifics.

Earlier this year, the Tax Policy Center concluded that it would be impossible for Romney to cut income taxes across the board and make the cuts "revenue neutral" without also effectively increasing taxes on the lowest-income Americans (and that was when the Romney plan called for merely maintaining current tax rates, not cutting them). The Romney campaign dismissed this conclusion as factually wrong and "partisan."

But stronger growth means LESS revenue for government when rates are cut and taxing low-income working people means LESS demand for products in US.


We saw this movie before. The job ‘creators’ moved their Bush tax cuts to Bermuda and left us with the debt. Reagan and Bush started the deficit climb; Bush II added to it. See chart at




Why my IRA has not grown to $10l.6 million like Romney’s has.

Mitt Romney made use of arcane techniques in several of its Cayman Islands-based funds to avoid U.S. taxes, according to a trove of Bain Capital's private audit and finance records made public on the website Gawker today.

The audited financial statements of one of the Cayman Islands funds make note of the use of "blocker" entities, which are used to help retirement accounts and nonprofit entities avoid some taxes. Financial statements for another fund note that it "intends to conduct its operations so it will … not be subject to United States federal income or withholding tax ..."


Congress allows hedge funds to rip off the gullible

New rules allow any manager to sell “private placements” to those who wish to become “instant millionaires.” One commentator wrote: ‘The “JOBS Act” has authorized virtually any company to offer securities to the public without review or registration. This event is as catastrophic as the repeal of the Glass Steagall Act. Within the year, there will be horrendous stories of fraud by companies using this act and of the powerlessness of securities agencies to take any action because of the act.’


Who owns your account now?

TD Insurance, a subsidiary of TD Bank to USI Insurance Services



41 Watchung Plaza, B242

Montclair, NJ 07042




No comments: