You can sell your long-held stock or home without gains tax!
If you have stocks that have gained a lot and now you fear
selling because of the capital gains tax, one solution is to wait till your
income is under $80,000 (MFJ). At that
stage, the tax is 0%. To avoid future tax on this money, put up to $6,000
a year into a Roth IRA for each of you ($7,000 over age 50). If you have
owned your home for a long time and now wish to sell, you can avoid
the tax on $500,000 capital gains for joint owners. In most cases you don’t even have to report
the sale and gain unless
your real estate person files an unnecessary form. If your gain is over $½
million you can’t avoid the gain by doing a 1035 asset exchange. However, you
can use the exclusion more than once.
Avoid future taxes: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300
Is a charitable remainder trust a viable alternative to the
Stretch IRA?
First name a charitable
remainder trust as the beneficiary of your IRA to avoid the taxes due on
your tax-deferred account. Second, name the trust beneficiaries, such as
children or grandchildren, so they will collect the fixed payouts for life or
for a set number of years. Third, name the charity to get what’s left (a
minimum of 10% of the initial value of trust must be donated). Do the heirs
have taxes to pay each fixed payout? Yes, just like inheriting an IRA except the
tax can be paid out over a longer period of time. Make sure your trust is legal
in your state.
Insurers win again
Lobbyists for the insurance companies are most responsible
for the end of the estate plan of leaving your kids your retirement fund, IRA
and Roth IRA. Employers will ‘encourage’ their employees to buy an insurance
product (annuity) to pay income to heirs over time. Insurers will be given $ trillions
by retirees on the promise of ‘guaranteed funds for life.’ This
‘guarantee’ is what most people say they want. Trouble comes when inflation
cuts the value of each monthly payment by HALF. Annuity benefits are set at
purchase even when interest rates are low. Insurers will have our money whether
we live for 30 years or 5 years. Some insurers will ‘pass away’ before their
annuitants do: some heirs will get little. Employers receive a benefit too.
They will not be liable if something goes wrong with the plan. We will be
fighting an insurance conglomerate not our employer for the rest of our payout.
We give up our principal even if we die in a year after purchase. Most annuities
have no refund option.
Consider alternatives: https://www.amazon.com/Your-Retirement-Income-Checklist-TrumpWorld/dp/1544703260
Vanguard or Fidelity?
Study: Vanguard was able to run their funds in a more
tax-efficient manner. The research clearly found that Fidelity was the
winner on expense ratios. This was true across the board. The result is
perhaps surprising given Vanguard’s record of historical cost leadership within
the industry. Still it’s clear in the data that Fidelity holds the lead on
fees. The researchers found that Vanguard funds were, on average, slightly
more diversified. Generally, either
Fidelity or Vanguard funds appear reasonable picks for most investors, with
the investment strategy being perhaps the more important question. But the Johnson
family still makes money from its clients.
Vanguard is owned by its shareholders: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X
Taxes: from
you’all to the tax-credit class
Look at the
effect of the tax breaks of 2017 and 2019: US increased the deficit
to $1 TRILLION for the 1st time. Billionaires and corporation
pay less than we do: 17%-21% vs 32.9% for us. The social
safety net for us is being cut: SS
disability, food
stamps, SS
benefit reduction, loss of national
free space, loss of clean
air and water, loss
of independent justice, loss
of voting opportunities, loss
of credibility in world. Subsidies to corporations going up with OpZone
Zero tax plan, coal/gas/mining
subsidies, bank subsidies, corn/farm/tariff subsidies, Boeing subsidies, ExIm
bank subsidies, hedge
fund subsidies. ZERO
tax US corporations include Netflix, Amazon, Chevron, Delta Airlines,
Eli Lilly, General Motors, Gannett, Goodyear, Halliburton, IBM, Jetblue
Airways, Principal Financial, Salesforce.com , US Russia USSR
Why stocks are the best long-term investment even with
market corrections
Warren Buffett has to be one of the all time successful
investors. His company (Berkshire Hathaway) owns many other
companies and the returns from owning
its stocks are 20% double that of the market overall at 10%. Mr Buffett
explains how he is successful in his letter to shareholders. It is worth
reading because it is written in high-school level English not broker-speak.
Most of his shareholders are not finance people. He explains how wealth is
created by using compounded earnings. He explains why he is a ‘buy and hold’
investor. DALBAR, the firm that keeps score, shows that active trading
investors earn just 3.79%
whereas buy and hold index investors earn 10-11%. This is why the largest
money managers have attracted more index investors from the brokerage business.
Study after study shows that over time index
investors who don’t trade earn more even in downturns. Sure, there are
hedge funds that have done well during certain times but we don’t know which
ones and when it will happen. Buffett
put his $1 million bet behind his advice and beat 5 popular hedge funds
from 2008 to 2017.
File your taxes for free
TurboTax and other for-profit tax prep firms are due to raise prices soon.
If you have your documents, use your favorite software now and pay your tax due
on April 15. The payment, if any, can be in April; the filing should not. The
federal and state can cost you nothing at https://apps.irs.gov/app/freeFile/.
Another site has no cost or restrictions: https://www.creditkarma.com/tax. And
remember you can usually reduce income and thus tax by making a deductible
contribution to your IRA.
Save for a long life: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793
**********ACCOUNTABILITY**************
Like 1776, this period
is a test
of democracy—do we really want ‘low-IQ’
Mobster?
I
love wikiLeaks and I
am giving him a pardon if recants.
How Govt wastes our money: Congress spends another 1.7 Trillion we don’t have!
How
a bully out bullies a Mobster: Manipulation that puts Putin to shame.
Trump
to cut disabled person’s $1,258 a month to pay for tax cuts to wealthy
Trump
says HE knows corona virus is “going to go away” by itself. CDC
say spreading
Pence
is now in charge of corona: he prayed during the HIV crisis in as Gov IN: asskisser
Trump explains why
corona virus is another win for him: how he did it all.
Orlando
police zip-tie 6 year old: tantrum passes in school: Teaching anti-police
early.
Voters don’t know if
ballots benefited another candidate: machines print code not name
$100
million to listen in on our phones: 2 terrorist leads found—no terrorists.
SCAMS/SPINS:
Where
your Walgreen dollar goes: absentee owners avoid taxes like our prez:
overseas.
Bloomberg: I
“bought” all the new House members: $100 million to fund campaigns.
Trump mob
revives McCarthyism ‘commie’
list to remake
gov with ‘Trumpists’
ICE National
Police (Gestapo) watching
all MD drivers w/o warrant: your state next?
Nazis
go after churches, journalists: waffen founder Brandon
Russell was arrested
Voters are
desperate for a change from Mobster rule: what is democratic socialism?
IA still does not
know who won in first primary caucus: premonition of convention?
What
happens when you have TrumpCare: Hospital corona test $3,270 out of pocket.
Supremes say OK to shoot teen
across border wall
Tesla death
from bad software
and driver playing video game
Pedestrian
deaths up because SUVs, drug/alcohol use, weather, cell phones.
Hubris: JPMorgan
claims big enough for any storm: we had to
bail them out in 2008!
Avoid a loss
the Buffett
way: don’t sell your shares—‘buy and hold’ not speculate!
Dionne Van Zyl GA
caught defrauding
members of his Atlanta church: he is elder.
Face mask sellers
push fears not stats on effectiveness: manufacturers’ material shortage
Bank scam: imposter
bank message to confirm a purchase and we move money to them.
ETF
managers still get paid when ‘official’ commissions are ZERO.
Catholic charity
founder engaged in “manipulative sexual
relationships” with 6 women
U MI knew 40
years ago this doctor
fondled patients but covered up with promotion.
Victims list
expands: University sat on complaints from many athletes.
Jobs
Focus on the right
stuff: magic
is not enough these days
Trump’s staffer Mulvaney
admits ‘we
need more immigrants’ yet Trump
wants less!
51% of employers still
judge Job
Applicants based on appearance: look the part!
Who owns your account now?
Miracle:
Antarctica
melting is visible in just 10 days via satellite: no more snow on Eagle Is.
Earth
bacteria turns space station water: bring your own water and face mask.
Corona
found in CA patient with unknown origin: not travel not family unknown
Antilynching
Act finally passes House after 200 years: will The Mobster sign it?
Baseball finally
promotes black chief umpire: it has only taken 181 years!
IAN
41 Watchung Plaza,
B242
973.746.2014
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