Friday, March 27, 2020

Retirees NOT forced to sell shares for IRS

Retirees may NOT be forced to sell shares by IRS
Congress passed the $2 Trillion bailout bill that may allow retirees to stop selling shares to fulfill the RMD requirements of their retirement accounts. While this measure and others would allow savers to keep more of their savings, waiving the RMD for 2020, the House bill would work in favor of those who don’t need to live off of their IRA or 401(k) retirement funds. This would benefit those who are not living off their retirement nest eggs at the present time. The RMD is calculated on the previous December account balances for all those over 70.5 years of age. We must pay taxes on the gains that have been cut drastically by the C-19 market sell off. To reach the amount specified by our RMD, we would need to sell more shares than we would have had to a month ago. Waiving the RMD requirement for 2020 would reduce the tax revenue this year. Taxes will need to be increased in coming years to pay for the additional $2 Trillion spent by Congress.  

My shares of stock and mutual funds are hanging on
I have increased my shares by NOT selling. The dividends I receive are adding more shares because the share price has fallen. Shares are on SALE. This is why Buffett is buying not selling. Buffett’s companies like Geico are still in business and collecting $ millions in premiums so he has $ billions to buy shares of Kroger, Delta, etc when the price is low for growing firms. Like Buffett I am buying stocks and shares of quality firms while they are on sale. They are on sale because of panic and the fact that some active mutual fund managers don’t want to end the quarter with a big loss. They will say they only lost 15% when the market index is down 25%. So they are selling at a loss which they can offset with some gains. I am not worried about my investment return number for the quarter. I am investing for future income and so when the price goes up, my shares will be worth more. And I will pay no taxes which will surely go up.

GOP uses the virus to give their “friends and family” more of our tax dollars
Did they forget the last time: Big and reckless businesses got bailed out, with no one going to jail, while ordinary Americans lost their homes and jobs? The virus is just an excuse. Some on the right are calling it an act of God--the better to justify their support of massive government spending. One White House official said Trump “doesn’t give a [expletive]” about the plan’s impact on the federal debt. “It’s all about the markets and the economy for him. It’s all about the jobs numbers.” Re-election is the prime driver. The Senate Republican plan to send every household $1,200 for each adult and $500 for every child is an inefficient and ineffective way to stabilize the economy. It’s also a cynical ploy by Mob Boss Trump and the GOP to buy the next election. The better strategy is to get money into the hands of cash-strapped businesses that promise to use it to keep workers on their payrolls. A better effort would be to make sure states can pay all the laid off workers who will need the essentials. Unemployment insurance can’t cover the estimated 80 million workers out of a full-time job. The last time we had millions of unemployed we did something about it: we made work for them. We built buildings, schools, dams and bridges. Dams not coal make electricity.

It took 4 years for the stock market index to recover from 2008 lows
Depending on your portfolio profile, it will take time to recover from this stock market correction. If you use the stock market as your checking or savings account, you will suffer when you sell. If however, you are a long-term investor, just turn your head from the daily gyrations and BUY like Buffett. Last year the stock market gained 31%. The long-term average is still 11%. If you pay your advisor 2% you will have to wait a longer time. If you think of your money in terms of short- and long-term reserves, this correction has no impact on your ultimate goals. John Bogle, founder of Vanguard, said that you can control what you pay for advice not control the market. Giving away 2% of your long-term money will decrease your final accumulation by up to 63%. “Over a 50-year investing lifetime, that little 2 percent fee will erode 63 percent of what you would have had. As Bogle puts it, “the tyranny of compounding costs” is overwhelming.”

Who got rich from the last bailout?
Your tax dollars are going to make many rich people richer. During the last bailout crisis, even the foreign banks and profitable firms got money they did not need. None of them said no. This time Boeing, which killed a lot of people from bad management, got BILLIONS of our money. The whole leisure class industry wants $ BILLIONS including The Boss’s hotels, golf resorts, and global properties. Most of those crying for bailouts had large surpluses from huge profits during the last 12-year bull market. They spent it on themselves—buybacks, CEO bonuses, more jets, etc. Remember, many of these firms have paid no taxes for years. Like The Boss, they have used every trick in the book to avoid paying their fair share. An unbiased analysis of this situation would be that America is a socialist country for the rich. We pay subsidies to profitable firms and have been doing so for decades. Subsidies to the elites is what American is all about. Even our Reps use info illegally. Lobbyists tell our Reps what to subsidize in return for election money. Why are we still providing oil, coal and gas subsidies to profitable companies? Trump pays farm/oil/gas companies when the market price falls. He promises agribusiness price guarantees and support payments to keep that group voting for him. The national debt has surged from $20 trillion to $23 trillion since Trump started. He promised to pay it all off. Instead he has made our tax yoke heavier in the future.

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 file your tax now for refund. The payment, if any, can be in July; the filing should not. Rumors confirmed: filing delayed to July 15. Check your state for deadline. The federal and state filing can cost you nothing at Another site has no cost or restrictions: And remember you can usually reduce income and thus tax by making a deductible contribution to your IRA. File now for refund: 90 day interest-free extension if you owe.


Like 1776, this period is a test of democracy—do we really want ‘low-IQMobster?

Mob Boss does not care what we learned from the last bailout.

Recurrence likely: Trump promises END restrictions in 15 days to get jobs/economy back.

Leisure industry the last to get help: Unemployed, hospitals, food chain, medical workers first
GOP bill “bad news”: “bailing out the biggest corporations.” GOP: stock “futures down 5%”
Doctors nurses plead for medical supplies equipment: 1 mask must last 5 days!

Same companies that binged on buybacks are in line to receive taxpayer-funded bailouts.

Trump will be “oversight” person: bailout biz friends: ‘fox guarding hen house’

TX using health emergency to force women to have kids they don’t want
TX 2nd gov would rather seniors die than let Wall Street go down. He has ObamaCare!

Who gets our tax money: $2 Trillion is borrowed from our future children/others.
OH gets just $2.1 billion to fight pandemic: Boeing $17 billion to bailout bad managers


4 anti-worker GOP Senators try to kill unemployment funds in the $2 Trillion subsidies law.

Guns and ammo sales up 1,000% in some states: people are scared and may kill you in fear.

Census questionnaire and virus bailout checks are NOT linked: Fake Facebook posts.
Supremes: mental illness not allowed as defense anymore: no one can claim insanity.

Corey Eastman Devon Ortiz Julia Montgomery caught ‘grandparent scam’ on dozens.
Mychal Kendricks NFL caught insider trading on tips from banker jail time
SEC allows failing funds to borrow money from sources not usually allowed.

Insurers retain huge premium bonus as few accidents near zero claims from C-19.
Alexa recording lawyer/client info as more work at home: We can’t delete later.

E-skimming is type of card fraud: hackers plant code in online store takes your cc inputs.

I got Trump’s C-19 postcard telling me to stay out of work at home and no contacts.
Treasury Secretary: 3 million record unemployment claims are “not relevant”: he has job!

Fauci, virus scientist, says “many more weeks” and has been sent away like other experts.
More die from TrumpCure chloroquine poisoning around the world
Trump’s friends get tested while those at risk go without test and told to go back to work.

NY, IL, NJ State to shut like CA: non-essential workers stay home
Which colleges actually are worth the cost: few produce income high enough for costs

Work from home computer hygiene: keep hackers out of your life line.

Who owns your account now?
Insurers are looking to protect themselves as financial ground cracks: they buy more insurance
CA: Wells Fargo, US Bank, USB, Citi and JPM Chase defer mortgage payments for three months

How our hands evolved from fish fin! Amazing thing creation!
When we are really alone: survival is being human

Don’t see sickness in CA: Shelter in place means hunkering down at beach/boardwalks.
Streets are empty: we can walk without dodging cars/SUVs: save gas/no pollution!
States are tracking cells to verify social distancing: Big Brother watches for good or evil?

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