Use Buffett's winning strategy

Warren Buffett’s strategy has outperformed all others

New study finds Oracle of Omaha has outperformed every long-lived U.S. stock and mutual fund. Looking at all U.S. stocks from 1926 to 2011 that have been traded for more than 30 years, a paper published this week by the National Bureau of Economic Research calculated that Mr. Buffett's so-called Sharpe ratio is 0.76 since 1976. That was about twice the stock market's 0.39. Invest like Buffett: http://www.amazon.com/Warren-Buffetts-Investment-Secret-Steeple/dp/1484189809

Tax credits this year

Energy credits for improvements such as insulated hot water heaters, insulation, double-paned windows. Install them before year end. The items that qualify for this special tax treatment will be marked by the manufacturer. Keep this documentation in your tax file in the event of an audit. http://www.irs.gov/Credits-&-Deductions

Tax-free charitable distributions directly from an IRA to a qualified nonprofit organization by persons age 70 ½ or older. Without itemizing, you can have your charity give you a deduction for part of your IRA distribution.

Filing joint rather than as two single individuals now legal for LGBTs.

Education credits continue but the tuition deduction expires after 2013.

Student loan interest deduction and employer-provided education assistance benefits.

Dependent care and Earned Income Tax credit remain.

Child Tax and Saver’s credits.

Estate tax exemption is $5,250,000 with a top tax rate of 40%. Couples $10,500,000. 

Free tax prep by IRS-trained volunteers at AARP: http://www.aarp.org/money/taxes/info-2004/about_aarp_taxaide.html

Pensions for state workers underfunded

Illinois is the state with the worst funded public employee pension system in the nation. Estimates are that they are underfunded by a hundred billion dollars. The situation’s so serious that, according to one recent report, about twenty cents of every taxpayer dollar inIllinois is now used to pay for pensions.  These public workers and these retirees spent their careers paying into retirement systems, holding up their end of the bargain while the state did not, and that it’s unfair for them to cut their benefits to the degree that they’re being cut. Many other states have already dealt with these problems and are fighting them out in the courts right now. Illinois’s constitutional protection is a particularly rock-solid one, compared to how the language is written into some other states. Don’t rely on your employer for future income. They may go bankrupt. Make your own: http://www.amazon.com/New-American-Retirement-System-Tax-FREE/dp/1461030072

CA goes ahead with employer ObamaCare

California has opened an online insurance exchange for small business. The program that's part of the national health overhaul was launched formally Monday, two months behind the state-run exchange for individuals and families, known as Covered California.

It's voluntary — companies with up to 50 full-time workers are not required to provide insurance for workers. Officials say the site will offer affordable choices to small businesses that want to offer attractive compensation packages, including health care. Some owners could qualify for tax credits. https://www.coveredca.com/small-business/

Investors BEWARE! Sales people can still sell bad-for-you products

The Investor Advisory Committee, a SEC advisory panel, has called on the SEC to move forward with a rule that "would require brokers to act in the best interests of their clients when providing retail investment advice"...the same standard that investment advisers meet.  While the SEC has included investment-advise standards for brokers on its 2014 regulatory agenda, it is slated for "long-term action" without a specific timetable. Trust but verify your broker/advisor’s advice: http://www.amazon.com/Nothing-Way-Seems-Wall-Street/dp/1492752916/

Internet advisors growing

Cerulli Associates say Internet-based financial advisers are winning over investors and are serious competition for conventional advisers.  More than 100 startups for personal finance and investment are aggressively pursuing younger investors. The number of retail investors using direct-to-investors online platforms run by discount brokerages has nearly doubled since 2008.  Shop and save on insurance/investments: http://www.amazon.com/Internet-Money-Smarts-More-Less/dp/1493643223/

401k statements to include monthly income projections

Labor Dept will require your plan provider to include income projections on your statement so that you have a more realistic expectation of your future retirement situation. Studies show that those who receive quarterly projections increased their saving by 29%. The information worked best for those already motivated to save. It also helps those that are considering retirement versus those that are less informed. Workers were most successful when their employer installed automatic enrollment and increases in small amounts. Workers still prefer a fixed pension managed by the employer’s plan provider. However, most employers are phasing out such plans. Tune up your 401k and have more for retirement: http://www.amazon.com/Tune-your-401k-EARN-Tax-FREE/dp/1490591028

GOP leader calls Pope a Marxist

“This is just pure Marxism coming out of the mouth of the pope.”

http://www.cnn.com/2013/12/03/opinion/ellsberg-limbaugh-pope/

Are you ready for a Second Job “Retirement”?

Working retirees’ trend: the proportion of partially retired workers has risen from virtually zero to 15 percent for 60 to 62 year olds, and is over 20 percent for 65 to 67 year olds, up from 5 to 10 percent in 1960, according to the University of Michigan study. Multitudes of workers in their 50s and early 60s have been laid off or forced into early retirement. Workers now have the flexibility to take retirement benefits anywhere between 62 and 70 from SS and old employers. Higher-paid workers work more years. Many workers keep their part-time jobs until age 70 or beyond to make up for lost wages earlier in their career instead of taking full retirement at 65 or 66. A study found that a high inflation rate results in a slightly higher retirement rate, because wages lag inflation and therefore lower the rewards of working. Make Tax-FREE income:  http://www.amazon.com/How-Retire-Tax-FREE-Income-increases/dp/1484156951/

Your scripts can cost half what you pay

Shopping for your drugs can be shocking. I checked the price of my scripts on 10 different sites. They were all different.http://www.ncbi.nlm.nih.gov/pubmed/16172438 The most useful sites were http://www.consumerreports.org/health/best-buy-drugs/index.htm and http://www.goodrx.com/. Savings over years can be significant. Some buy from Canadian pharmacies and save even with shipping. Check the pharmacy reviews first. Buy only what you need: http://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

SCAMS           “Deficits don’t matter” Republican Godfather, Dick Cheney, 2002

Bush wars increased the debt by $4-6 trillion to $16 trillion. 1985 debt $3 T, same as 1945.

Madoff 30-year scam never questioned by SEC or regulators

Bernard L. Madoff’s former finance chief, who pleaded guilty to aiding the con man’s $17 billion Ponzi scheme, said the company was using fake trades to trick investors in the 1970s when he started working there after graduating high school.

The fraudulent trading went on “for as long as I could remember,” Frank DiPascali, 57, told a jury in Manhattan federal court today at the trial of five ex-colleagues. “It was virtually impossible not to know what was happening.”

MetroNorth train kills 4 – No “Dead Man’s Brake”

"I zoned out"

Last year’s near accident on MetroNorth—engineer ignores “alerts” and reads paper.

http://www.nbcnewyork.com/news/local/Metro-North-Train-Conductor-Reading-Newspaper-Distracted-157673025.html

All trains are supposed to have this safety device:

The “Alerter” is an alarm designed to stop the train if the engineer doesn’t respond within a few seconds—a “dead man’s brake.” As we spoke, Tony, the engineer today, smacked a large red button to silence the racket. After a few moments of blissful quiet, the blasted honking started again. Tony would whack the big button once more. Honk, HONK, HONK, WHACK. Honk, HONK, HONK, WHACK.  http://www.rsbpress.com/resume/montrealer.htm

On April 27, 2010, a motorman on a NY subway ‘G’ train apparently suffered a fatal heart attack at the controls, activating the so-called dead-man feature, which stops the train when the motorman takes his hand off the controller.

Unfortunately, MetroNorth did not have either feature on its lead-car train.

John Thomas scams customers

The SEC charged the former CEO of John Thomas Financial with negligent activity, alleging the firm steered customers into proprietary hedge funds and influenced a fund adviser and manager to breach fiduciary duty.

IAN

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