Your Wealth Reserve: Opportunity Zone funds right for you?

Are Opportunity Zone funds right for you?

The new GOP tax breaks to the wealthy provide them a way to eliminate some of their gains built up over the years. If they invest in infrastructure projects in areas designated by politicians for development, they can delay taxes and make a fortune. Real estate firms are starting Opportunity Zone funds so high-net-worth investors can co-own apartment buildings in cities like Detroit and reap unique tax benefits at the same time. This kind of investment is long-term and complicated. Even your attorney and accountant do not understand how these real estate deals will work out. Will the zoning go through local political boards? Will you have time to use the tax advantages promised? You might just consider this kind of investment only if you are in the same situation as the author—President Trump.

There are less risky ways to accomplish these goals: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

Ops, did you make these mistakes in taking your RMD?

The penalty could be 50% of the amount not taken. The first required minimum distribution is difficult to calculate so ask your IRA trustee to do it. Set up direct deposit to your bank with the trustee so you won’t forget to take the money each year. Timing the first distribution incorrectly could bump you into the next tax bracket. The amount depends on one of two tables with another test. The amount is calculated from the total of ALL your IRA accounts. It might be smart to move all IRAs to one trustee. Roth 401ks require a distribution too but not for taxes. There are special rules for those still working at age 70 1/2. Converting an IRA to Roth does not change the RMD rules. Giving RMD for charitable deduction has rules too. Remember to tell the trustee which security to sell. RMD must be done for each spouse. Let the trustee help you.

https://www.amazon.com/What-do-with-RMD-much-spend/dp/1718946716

Wharton School predicts SS benefits cut by 2032

U of Penn economists say Trump’s higher deficits will deplete SS trust fund faster than the SS trustees projected. Wharton projects “much larger future annual cash-flow shortfalls.” After Social Security was revamped in 1983, it was projected there would be adequate resources to pay benefits through 2058. However, many of the assumptions have been wrong. The Trustees project that the combined trust funds will be depleted in 2034. We don’t know if the Trump Grand Old Party will reverse the new tax cuts and stop the $1.3 Trillion spending. If you are under 50, you have 15 years before changes. Start your SS supplement now: $500 a month in index gets you $200,000 as supplement.

We need a supplemental income plan: https://www.amazon.com/Forget-Social-Security-Medicare-Lifestyle/dp/1466394285

New way for the wealthy to avoid taxes

Pensions systems for doctors, lawyers, money managers and other highly-compensated business owners help them defer taxes on their pay until they can use a tax-advantaged shelter. Trump’s new 20% deduction law can be used by the wealthy when they put more into their pensions and thus reduce their current income. Thus they get around the income limits Congress created to bar them from this new tax break for owners of pass-through entities. So pensions become the new tax dodge. These defined-benefit pensions can shield more income than a 401(k) account or individual retirement account. Annual employee contributions are capped at $18,500 this year for 401(k)s and $5,500 for IRAs. Thus they get to take the 20% deduction while we can’t. So we must pay their taxes.

You can have a Trump tax shelter too: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

Is ‘return of premium’ term life insurance right for you?

The HOOK: If you don’t die you get a nice nest-egg of savings. Your premiums ‘usually’ will be returned to you at the end of the term. It sounds like ‘renting’ coverage for FREE. Except it isn’t. The sellers do not explain that ROP costs more—about 30-40% more and that you are not guaranteed to get all your premium returned after 20 or 30 years. In fact many buyers just stop paying premium for different reasons and don’t get their premium back. Agents push hard for riders—disability, accidental and otherwise. However, if you are in good health, your extra premium earns more in a real investment. Life insurance used to be sold as an investment before mutual funds were made more available with better returns. However, for wage earners without a savings instinct, life insurance policies force us to save something.

https://www.amazon.com/Life-Insurance-Need-Save-right/dp/1480002178

Is your advisor a CFT?

That is Certified Financial Therapist. Since our emotions are heavily tied up with our money attitudes, CFTs may have tools to help clients develop positive financial behaviors through practical simple steps. Many people need help coping with money issues—couple sharing financial data, fair settlement in divorce, gambling and abuse of money resources to name a few. Financial planners can become more finessed and have greater long-term success with their clients. Certainly there are many couples who could find support in discussing these matters. Right now we might have to ask an advisor or planner to share their personal history to find out if they have the experience to help us with financial/emotional issues that damage our future. Most clergy have trouble dealing with these issues because they have no financial or psychology training.

Learn more: https://www.amazon.com/Marriage-Money-Book-Start-Together/dp/1517572525

Aretha leaves no will for directing $80 millions

Her sons will have to pay lawyers $ millions and the tax up to 50% with no planning. Many people think, “If I do it, I’m going to die the next day,” one lawyer said, or they plan to get around to writing a will but never do. Like Prince, Sony Bono, Pablo Picasso, Jimi Hendrix and Howard Hughes, Aretha had no will and no estate planning documents. Her four sons must go to court again and again to find a settlement. Without any planning, the federal and state estate tax will take up to 50% of their $80 million inheritance.

What is your excuse?: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793

Discrimination is now called ‘religious freedom’

Trump has changed the regulations about discrimination by contractors. As long as you claim it is your religion that ‘impels’ you to refuse someone service, your not discriminating. Trump implies that Christianity is under siege. They [Labor Dept] must respect the right of “religious people and institutions . . . to practice their faith without fear of discrimination or retaliation by the Federal Government.”

They cannot “condition the availability of [opportunities] upon a recipient’s willingness to surrender his [or her] religiously impelled status.” Trump has changed the regulation so that it is assumed a contractor has ‘surrendered’ their beliefs to offer a service paid for by the govt. This regulation expands the scope of federal contractors that are exempt from the prohibition on discrimination against employees and applicants based on sexual orientation and gender identity, and LGBTQ advocacy organizations have criticized the directive as a “license to discriminate.” This started when Hobby Lobby told the Supremes the store would NOT provide “preventive care and screenings” for women ...” Other employers provided this health care necessity because it was the law. No longer.

Soon employers can decide not to cover cancer because cancer is ‘god’s will.’

Is it time to move your money from losing stock-pickers and FREE trade deals?

Another year of poor performance? A market index returned over 14%; 13% over 5 years. Only 36% of stock-picking managers survived or outperformed their average passive peer over the past 12 months, according to Morningstar data. Every brokerage in town is offering you the chance to trade all day every day for FREE. However, if the folks with $ millions of research can’t beat the index, why do you think you can? You would have to be right every year! Your chances of picking the right stock is 1 in 19,000 EVERY year. Good luck on your picks. Vanguard’s 500 Index gave you 11% since 1976. Warren Buffett says you only need 2 funds.

https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

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Make

America

, “The Don”, Great Again

Two

Americas

: A Banana Republic? Do we really want an infant king? Daddy Putin!

Conspiracy against the United States, conspiracy to launder money, conspiracy to receive Emoluments from foreign states, false statements, subverting constitutional tax power, obstructing justice, failure to secure voting systems from attacks, and Foundation self-dealing.

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How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!

GOP can only win by manipulating voting districts and they brag about it!