Friday, December 21, 2018

Last minute gift on Christmas Day!

Last minute gift helps your young relative start investing free with a refund
You help them begin investing with a $2,000 tax credit. The amount of the credit is 50%, 20% or 10% of their retirement contributions depending on their adjusted gross income. The Saver’s Credit can be taken for your contributions to a traditional or Roth IRA; your 401(k), SIMPLE IRA, SARSEP, 403(b), 501(c)(18) or governmental 457(b) plan; and your voluntary after-tax employee contributions to your qualified retirement and 403(b) plans. Uncle Sam helps them get started. They use Warren Buffett’s investing strategy so they can accumulate a $ ½ million over time. Look at how they can make saving and investing easy for the rest of their lives: Send electronic book Christmas Day!

Stocks are on sale!
When do you stock up on basics like paper towels and toilet paper?--when they are on sale! These every day use products have NOT changed: a roll is either $0.82 or 0.62 on sale but it is the same roll. Last week, I saved $15.80 on my shopping cart. I bought the same things I bought before. Your investments in stocks are the same. Earlier this year, your 500 Index of stocks cost you $272 and now the same thing costs $234. Stocks are on sale—the same ones: Microsoft Apple Alphabet Berkshire Hathaway Johnson & Johnson JPMorgan Chase Facebook Exxon Mobil Pfizer. Why are you thinking of selling?—And not buying? Think of your future first not last.

Wealthy use crypto currency to launder their hidden cash
Since the new monetary system is not regulated by governments and is just virtual money (there are no physical ‘coins’ actually stored in vaults), you can hide this ‘money’ anywhere. The trick is finding places to spend it. Like counterfeit $20 bills, who will take it off your hands and for how much? You can’t just buy a ‘mansion’ with Bitcoins unless the owner will take them. Plus, where ever you store your digital booty, it might be stolen or lose value. Crypto is like Madoff’s marketing plan. He did not solicit nor advertise his Ponzi scheme. He pretended his strategy was not intended for everyone. Only the well-heeled were allowed to give him money. He created a myth and sold it via actual investment advisors and their social circles. His pitch: “you can’t have it so you want it more” and “don’t ask questions, just be grateful you got in.” "Everybody was greedy, everybody wanted to go on and I just went along with it," Madoff told a journalist.

Need help starting to save? How’s 5% interest?
This credit union will pay you 5% on your money to get you started in a regular savings plan. This plan includes a checking and savings account plus certificate of deposit earning 5%. The requirements make it a perfect savings starter for a young person. This is the first step to using the IRS approved tax-FREE account—the Roth IRA. You earn great rate and you pay no taxes on the interest. WOW 5% without paying taxes on interest. Later when you feel comfortable, you can experience tax-FREE growth on a securities account at a low-cost mutual fund provider. Then you can earn 10-12% on your retirement investments and pay no tax now or later when you take the money out. You can take out contributions anytime tax FREE. However, if you keep investing automatically in this account, you could reach $1 million later—Compound interest and earnings without taxes EVER. Compounding is what keeps the rich, rich.

Is this tax shelter right for you?
You can save/invest up to $500 a month and never pay tax on your earnings. This tax shelter is approved by the IRS! You don’t have to hide your money overseas. You don’t need a lawyer to set up the trust. You don’t need an advisor to manage your earnings. You don’t need an accountant to prepare your return for this shelter. You can set up this shelter on the phone or online in about 1 hour. You can have the trustee put the same monthly amount in automatically. You can have the unbiased trustee manage the securities at little cost. Tax-FREE earnings means you are not paying 10%, 12%, 22%, 24%, 32%, 35%, or 37% on your money after you accumulate $500,000 or a $1 million or TWO. (You can earn 10-12% a year over time.) There is no penalty if you need to take out the amount you put in so far. You may even be able to put your 401k in this shelter.

401k changes
GOP tax planners want to change the way 401k plans work. One change is building an annuity into the plans. Workers would no longer have to move their money to an advisor who profits from selling annuities. However, annuities are run by insurers and they want fees too. This could be good news for some but expensive for others. Another change is linking 401k plans to student loan payoffs. The U.S. has more than $1.4 trillion in student loan debt and Congress wants to make sure the bank loans are paid. The bill would allow workers who are paying down student loans to receive employer matching contributions into their 401(k) plans as if those student loan payments were salary reduction contributions made into the 401(k) plan. The legislation also applies to 403(b) and SIMPLE retirement plans. Another bill would allow companies to use up to $5,250 of employees' pretax income to pay down the employees' student debt directly.

The Cons of Roth IRA: When NOT to use Tax-FREE account
Expert Slott says there are circumstances when you are NOT better off using a Roth IRA. For most of us, the Tax-FREE account is still the best deal in town and you don’t need a lawyer or advisor to arrange a tax-free retirement. Any large mutual fund provider will set it up and invest your contributions in the low-cost funds of your choice or a Target Date fund based on when you retire. Since you will owe NOTHING on your IRA retirement income, you may not owe taxes on your Social Security benefits. SS income can be taxed up to 85% depending on other income. Converting regular IRAs into Roths (‘Back-door Roth’) is allowed no matter what your income. Roth IRA contributions can be used before age 59 ½ without penalty because you already paid tax on them. Consider how much tax you avoid: contributions of $3,000 a year for 33 years ($99,000) can earn over $1 million and the taxes on gains ($900, 000) at 22% or 198,000 are avoided. 

Is your employer taking too much from your retirement plan?
Another employer was caught charging employees more for their 401k plans. Brokerage firm Edward Jones agreed to pay $3.2 million to settle 401(k) fiduciary breach case. There were "superior, less expensive investment options" that plan executives should have chosen, the Tuesday settlement document said. Participants also alleged that the plan charged "excessive record-keeping fees." Some employers have not only failed to offer ‘superior, less expensive options,’ but have actually tried to profit from their employees’ savings for retirement. Some have received ‘kick-backs’ from the investment option providers. Instead of helping employees, they make employee-benefit plans a profit center. Check your plan:

Medicare for all
The most heard objections are too expensive and you would have to wait to get treatment like in Canada, UK and Germany. Anyone who pays for their health care benefits knows that WE HAVE THE SAME THING NOW. Many of us who pay a lot for care (unlike millionaire Congress people and the TX judge who banned ACA) have put off care and waited because of the price. A new study says 30% of us do that NOW. If you have ever tried to obtain authorization for a treatment from a health insurer’s telephone clerk or tried to get a provider to guarantee they wouldn’t bill you but accept the insurance company payment ONLY, you know you are living with a bureaucracy just like the government. Every time I go to my PC doctor to renew my scripts, I have to sign that I will pay if my insurer won’t. Sometimes the firm that owns my PC practice will tell me I must make another appointment just to have them renew my scripts for diabetes and bp.
Let’s try a new way so my pre-existing is covered for the rest of my life without worry:


Make America, “The Don”, Great Again
Truth isn’t truth, his lawyer

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


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

Trump wants us to work harder for food especially when we are poor.
The Wall has $ millions in GoFundMe: Trumpers saving taxpayers $70 billions.

State Farm pays $250 million to car owners suing for inferior parts for crash repairs.

Trump made school lunches less healthy—more calories for obesity in kids?

Trump re-promises Wall: now ‘it will save $ billions’. Fetish inscribed on his tombstone?
Trump: ‘mission accomplished’ in Syriavictory over ISIS? troops home for Xmas?
Trump and Putin on the same page: Would Hillary have cut and run? Putin feared her.

MetLife caught canceling pension payments for profit—client marked ‘dead’—no jail!
Eva Weinberg caught stealing from Dwight Freeney; in jail & Merrill pays fine.
Hector May NY caught stealing $11.5 million in Ponzi jail up to 25 yrs.
Merrill Lynch caught giving insiders best new stock deals. Fine no jail. We’d get jailtime.

deVere USA caught using LinkedIn to steer clients to high commission tax shelters.
Jonas Knopf NJ caught selling fake health plans from fake insurers.

Pope tells child abusing priests ‘church not shield’ but already hid the horrific crimes!
Catholic Church covered up bishop accused of sex abuse of kids: no jail time.

Lynching is finally a designated a ‘hate’ crime: 3,450 blacks lynched 1882 and 1968.

The Mob Boss can never go to jail: Trump has Kava as Supreme so no indictment.
‘No man is above the law’ … well up till now. Dictators nullify courts first, then votes.

Miners Find Egg Sized Diamond In Canada's Frozen North:  552-carat yellow gem.
Congress avoids doing job to fund the government but still gets fully paid vacation.

Who owns your account now?
Best car for your teen for safe holiday under $10,000.
Why your Wells broker/advisor is cranky next year. Pay cuts to pay for $ million fines.
Vanguard merges 2 big funds to lower costs even more: Lower cost; earn more.

Amazon may offer banking & investing robo for Web gen. for a small fee/huge numbers
Age 71?—you have to take your RMD or face penalty by Dec 31—one week.
2.8% CD at banks will go up Fed says:


Young people are our future:

41 Watchung Plaza, B242
MontclairNJ   07042

No comments: