Obama gives insurers BIG bonus

US government gives insurer CEOs a HUGE bonus!

Our Treasury is encouraging retirees to buy annuities, the cash cow of the insurance industry. Annuities have very high fees which rob savers of long-term gains while promising them that they can’t outlive their lowered savings. The department will let target-date retirement funds that are a default option in retirement plans offer long-term deferred annuities. The trouble comes when you retire. When you subtract the fees (2-5% a year) from your earnings over time, you may give up 63% of your nest egg. Instead of having $30-40,000 a year retirement income, you have about $15,000. Annuities have no refund. 

Look at the alternatives before you leap: http://www.amazon.com/Lets-Do-The-Numbers-Retirement/dp/1502775522

Is a low-cost advisor right for you?
Recently, all the major mutual fund firms are beginning to offer a low-cost equivalent to the traditional (expensive) planning advisor. Low-cost providers like Vanguard offer to create a financial plan to match your goals. If you have most of your retirement money with them, the cost is reasonable. Another low-cost alternative is the plan for a fee advisor. Most famous is the Garrett Planners.

If you feel comfortable with your own decisions, use the best low-cost funds: http://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

Regulators vow to punish fraud by brokers/advisors

SEC commissioner said fraud committed by an individual broker or advisor is more likely to cause investors to lose all of their investments than fraud by a large company, which will cause individual investors to lose only some of their assets because they are held in a diversified portfolio. In hearings earlier this year, Senate lawmakers explored ways to help seniors identify scams and fraud. Federal Trade Commission data show an estimated 25.6 million Americans — or 10.8 percent of the U.S. adult population — fell victim to some kind of fraud in 2011. Weight-loss products, billing services, credit repair, debt relief, credit card insurance and mortgage relief were in the top 10 categories. Last year, 429 individuals were barred from working in the financial industry and another 670 were suspended, FINRA said.

Most large mutual fund firms have salaried advisors to help you: http://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

Is the Saver’s Credit right for you?

For 2014, you can qualify for the retirement saver's credit up to $2,000 if your adjusted gross income is $60,000 or less if married filing jointly, $45,000 or less if filing as head of household, or $30,000 or less if you’re a single filer. The lower your income, the larger the credit you can take. And you don’t need to max out your IRA to get the maximum credit. Contributions to a traditional or Roth IRA, 401(k), 457, 403(b) or other retirement-savings plan qualify. Credits are worth more than deductions and can pay HALF your retirement contributions each year. Contribute $4,000—receive $2,000—become a millionaire: http://www.amazon.com/Tax-Refund-Millionaires-Let-Uncle-Help/dp/149595644X

 

10 million more Americans have health care—a good thing for all!

Nov 15 begins re-enroll for ObamaCare. https://www.healthcare.gov/

Despite their denials, GOP states like NM, KY, WV and TX now have health care available for more voters. See the map of the HAVES and HAVE NOTs. http://www.nytimes.com/interactive/2014/10/29/upshot/obamacare-who-was-helped-most.html

GOP crazies

Voters voted against Obama as GOP had campaigned and now own Congress. Some vow to take away our health care plans, cut taxes on wealthy/corporations, send our soldiers back to Iraq/Syria/etc, let oil companies export more oil via pipelines, frack all over the place, end regulations on water, air, everything you can think of.

On the bright side, more states want pot and minimum wage. 

We get what we deserve, they say. But I need my health care.

DEMS crazies

Federal Government Made $20 Billion in Secret Purchases in Recent Months

The purchases, known among federal employees as “micropurchases,” are made by some of the thousands of agency employees who are issued taxpayer-funded purchase cards. The purchases, in most cases, remain confidential and are not publicly disclosed by the agencies. A sampling of those purchases, obtained by the I-Team via the Freedom of Information Act, reveals at least one agency used those cards to buy $30,000 in Starbucks Coffee drinks and products in one year without having to disclose or detail the purchases to the public.

“When you have $10,000 being spent at one Starbucks by DHS employees in one city in six months, someone is abusing the purchasing permission that we have given them."

Don’t employees have to declare this as income on their taxes?

Is retirement in another state to save money right for you?

In 2015, four states are lowering their tax on your estate. Tennessee's estate tax exemption will jump to $5 million from $2 million, Maryland's exemption will increase to $1.5 million from $1 million, and Minnesota's exemption will rise to $1.4 million from $1.2 million. On April 1, 2015, New York's estate tax exemption will increase to $3.125 million from $2.062 million. Tennessee's estate tax will disappear in 2016. Maryland and New York will increase their thresholds every year until 2019, when they'll match the federal exemption (currently $5.34 million). Minnesota's exemption will rise in $200,000 annual increments until it reaches $2 million in 2018.

Moving to save your heirs taxes seems extreme. Better to transfer assets now: http://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

Reliable new cars

Consumer reports made their tests to made suggestions to buy and avoid. You are going to save big when you buy a 3-year old model of one on the winning list. You may save 40% off MSRP since cars lose value as soon as you sign the paperwork. Leasing makes sense for your business not personal. Find your car on the list (red check) then shop for your insurance with our list of 14 discounts:  http://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

Long-term care insurance is expensive; Medicaid right for you?

The person receiving care must generally have less than $2,000 in "countable" assets, which include savings, retirement accounts, investments and life insurance. Your car, primary residence and money in certain kinds of trusts don't count. See www.naela.org or www.nelf.org. Most states have home-equity limits. If you're married, the spouse living at home (called the community spouse) can generally keep up to $117,240 in countable assets in 2014. You generally must receive less than $2,163 per month in countable income to qualify for Medicaid. That includes Social Security benefits and pension, dividend and interest income. See www.medicaid.gov for your state's rules. 
LTC insurance alternatives: http://www.amazon.com/Long-term-Care-Insurance-Updated-Edition/dp/148274001X

SCAMS           Why are we still paying $700 Billion a year for WWII deployments?

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] armed personnel in the United States. Our taxes pay for about HALF of the WORLD’s military expenditures every year. We have wasted $398.6 billion so far on the F-35 program—they can’t fly safely.

We just can’t afford to pay for everyone else’s defenses anymore. Japan, Germany and S. Korea can pay for their own defenses.

The War on Terror requires SEALS’ attacks on top terrorists at their homes. Iraq proved converting a nation to Western-style republic doesn’t work.

Uncle Sam has your data—you can’t hide anymore

Facebook is one of the prime feeding grounds for data -- and inevitably requests from federal agencies for said data. According to Facebook's latest transparency report published on Tuesday, the company received 34,946 requests for data during the first six months of 2014. That translates to a 24 percent uptick from the second half of 2013, nearly matched by a 19 percent increase in the amount of content restricted due to local laws where Facebook operates. Facebook's deputy general counsel Chris Sonderby promised in the report that the company pushes "back hard" against any and all requests before forking over data -- if at all. In the United States, for example, Facebook received 15,433 total requests during the first half of 2014, pertaining to data about 23,667 accounts. Facebook responded with data to 80.15 percent of these requests.

The NEW Iraq—same but with a new party

“Wealthy government officials and military officers are buying houses in cash, tearing them down and building mansions,” said Abu Rana al-Zubaidy, a realtor who has witnessed the neighborhood’s transition from backwater to power center. With Sunni jihadists seizing territory less than an hour’s drive from the city, “there’s caution, but everyone still has plenty of money,” he said by phone. The conspicuous displays of Shiite affluence in Zayouna are testament to the shift in political power since U.S. forces ended decades of Sunni dominance under Saddam Hussein, according to Andrew Bowen, Middle East scholar at the Baker Institute for Public Policy in Houston. “Sunnis complain that they are being excluded from power,” said Bowen, adding that the reversal in fortunes is fueling resentment and blocking efforts to unite the nation against the Islamist militants. “There is a strong perception that the new Shiite elite is using the state for their own ends.”

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts