Friday, January 10, 2014

Take the Buffett challenge

New Year investment plan
Start this year with a plan. Invest slowly and be patient. The goal is to have $50,000 tax-FREE in 10 years. Create an account at a low-cost mutual fund and send $50 the first month, then $100 in a month or two, then your tax refund in April. If you have no refund, send $200, then $250 by June. Make your contribution of $250 a month automatic by having the trustee debit your account directly. Forget trying to time the market—just keep investing in the diversified top 500 companies. Billionaire Warren Buffett has made the same bet and he is winning. So can you! All it takes is patience he says.

Tax Prep help
YouTube videos to help prepare taxes for the upcoming filing season, which begins on Jan. 31. Get refunds as easily as possible. Many software companies are expected to begin accepting tax returns in January and hold those returns until the IRS systems open on Jan. 31. This includes the Free File partners that offer access to their software for free at irs.gov/Free File. The IRS will not process any tax returns before Jan. 31, so there is no advantage to filing on paper before the opening date. Taxpayers will receive their tax refunds much faster by using e-file or Free File with the direct deposit option. http://www.youtube.com/irsvideos

“Safe” investment lost 28% of value
At its current price of $1,202 an ounce, gold has lost 28 percent of its value this year, the worst drop since 1981, when it slumped 33 percent. No one investment is right so we DIVERSIFY: http://www.amazon.com/Best-Long-term-Investment-its-tax-FREE/dp/1492117455

Wealthy convert IRA to tax-FREE Roth IRA
Conversions from regular IRAs to Roth retirement accounts increased more than nine times in 2010, rising to $64.8 billion from $6.8 billion in 2009, according to the IRS. Conversions were particularly common among IRA holders with annual incomes exceeding $1 million. More than 10 percent of them converted to a Roth account. The increase in conversions stemmed from a 2006 law that set 2010 for ending a $100,000 income limit on Roth conversions. There’s no ceiling on conversions if an investor has multiple individual retirement accounts and no cap on the amount that can be shifted. You may convert any part of your IRA to a Roth and earn tax-FREE income for life. You don’t need to take distributions at age 70.5. Perfect legacy planner: http://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976


Myths of Wall Street
Myth: the lower corporate taxes are, the more companies can invest and stimulate the economy. That’s not how it works. Among the 34 developed countries in the OECD, the average corporate tax rate had little bearing on economic growth. Norway Chile Estonia grew at high rates with the same tax rate as US. US firms are sitting on more cash than ever before. Many multinationals are keeping their cash overseas to avoid taxes. Consumer demand (employed middle class) drives economic growth not corporate taxes.

SCAMS           We are paying for 164,253 of our active-duty armed personnel to be in 150 countries around the world. We have about 50,000 in Japan and 50,000 in Germany. Are we preparing for WWII again? There are 1,208,083[1] personnel in the United States. Our taxes pay for about HALF of the WORLD’s military expenditures every year. 
Why are we still paying $700 Billion a year for WWII deployments?

Banks can still destroy our economy and we will still pay for their mistakes
Reforms have not limited their gambling incentives and foreign banks pose even greater risks since we don’t control the interconnectedness of the global betting parlor. http://www.nytimes.com/2014/01/05/business/a-roadblock-to-brawny-bank-reform.html?_r=0

Bank leverage is still too high—taxpayers can’t afford the losses again. Congressmen just can’t afford to say “no” to all that lobbyist funding—$1/2 Billion

JPMorgan will pay $2.6 billion in civil and criminal settlements for its role in the Madoff fraud case. Morgan says they didn’t know anything about his money laundering even though he used Morgan for 20 years. Again, no bankers go to jail.

IAN
41 Watchung Plaza, B242
MontclairNJ 07042
973.746.2014
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