Your Wealth Reserve: charity deduction

Showing posts with label charity deduction. Show all posts

Friday, December 16, 2022

Where has your advisor left you in 2022?

You can still afford to retire

Repairing your financial future can be done in steps. Take stock of where you are now before 2023 so you can use tax credits/deductions before 2022 is over. Consider some of the changes in retirement contribution limits and tax credits for 2023. For instance, Congress is still considering changes in refundable credits. Recent stock market history implies that we may see a large bump up in portfolio returns in 2023-24. Be ready to take advantage of those gains to catch up with your retirement plan. Many investors forget that once out of the market to try to avoid the downturn, they may miss the quick upturns that can happen in a 10 day lurch. Save money like billionaire Warren Buffett. Invest your tax refund for a $1,000,000 retirement fund in 35 years.

Use tax-FREE account: https://www.amazon.com/Tax-Refund-Millionaires-Let-Uncle-Help/dp/149595644X

Deduct $3,000 from your income; reduce tax

Before Dec 31, you may be able to sell some of your losing assets which allows you to deduct up to $3,000 this year from your income. I sold $3,000 of my Vanguard 500 Index since it is down for the year. I kept the rest since I know it will rise in future months. I don’t know when it will rise but I can afford to wait since I don’t sell in a panic and I am fully diversified. Look at the history of the market returns: 2008 -37.22; 2009 27.11; 2010 14.87; 1974 -26.95; 1975 38.46. Since I started investing in 1971, the market is up 12.69% a year on average. That beats CDs, bonds, real estate, gold, speculation of any type. Even in bad times like 2022, no fund has beaten the market index. Our government allows us to deduct the loss at $3,000 a year, every year until we have deducted all of our loss. So join the Tax-Credit class.

Pay less tax like the millionaire class: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

Where has your advisor left you in 2022?

The financial services industry (your broker and advisor) did very well this year. BUT:

The average retail investor's portfolio is down 30%, compared with the S&P's 17%, according to Vanda Research. Tesla accounts for ~10% of the average active retail trader’s portfolio. So as the stock plunged ~55% this year, it wiped out $78 billion in value for retail investors, per Vanda." Overtime, these are the best market sectors even now: https://www.businessinsider.com/forgetful-investors-performed-best-2014-9.

In 30 years the average investor earns just 3.79%, not the 10-12% market rates. (QAIB)

Use Buffett advice: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

How much of our charity donations can we deduct on our tax return?

Americans have always been known to be generous. However, the least able group to give (by income); gives the most as a percentage of their income—over 8%. The wealthy give less. The superwealthy obtain the deduction but retain control of who benefits. They use donor-advised funds and foundations to control who gets their charity.

IRS: deduction amount and average percentage of AGI:

Under $50,000 $2,588 deduction == 8.4% of income

$50,000 under $100,000 $3,305 == 4.5%

$100,000 under $500,000 $5,124 == 2.9%

$500,000 under $2,000,000 $25,510 == 3.1%

$2,000,000 under $10,000,000 $164,814 == 4.4%

$10,000,000 or more $2,813,343 == 9.3%

All returns $6,332 == 4.3%

https://www.amazon.com/Most-U-S-Corporations-Pay-No-Taxes/dp/1514274116

Most frequent cited financial regrets by retirees

1. Not working longer. 2. Not having insured income. 3. Claiming SS benefits too early. 4. Becoming financially dependent on others. 5. Not accumulating larger retirement fund. The most influential factor was shocks experienced earlier in life (e.g., divorce). The present paper considers different explanation for financial regrets--people may simply not understand how long they will live in retirement, leading them to make suboptimal life cycle financial decisions. Make your plan now.

https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793

?**********ACCOUNTABILITY**************?

Like 1776, this period is a test of democracy—We rejected an "American fascist" once

The Path to Dictatorship: 2010-2030

Parallels of this era in the past may hint at our future: democracy breaks apart legally

Jan 21 2010 Corporations’ election-spending unlimited

Billionaires paid $881 million for votes in 2022 midterm elections

Nov 2020 Wealthy discredit election process

Nov 21 2020 Trump’s Plans for a Coup: criminal

Nov 21 2020: Trump plan: US Marshals seize voting machines

Jan 6 2021 Direct assault failed: guns & bombs ready

Trump engaged in a "criminal conspiracy" to stop Biden

“I don’t f—ing care that they have weapons”

Trump was “detached from reality”

Trump used mafia-style intimidation on the defenseless

Parscale: “a sitting president asking for civil war.”

Trump: “Just say the election was corrupt and leave the rest to me”

GOP fascism: “RINO hunt armed; no bagging limit” J6 comm threat

Trump’s Supremes END personal rights & state laws except for weapons WMDs

Fascism: GOP to stop women leaving state for abortion

It’s not a court. It’s a junta: Two Americas

Trump: President Biden is 'enemy of the state'

Christian Nationalist Party (CNP) replaces GOP

Nov 8 2022 Trump’s “national revolution” failed

Nov 15 2022 Trump announces for 2024 to avoid lawsuits

Dec 3 2022 Trump: cancel Constitution rules so ‘I win’

Jan 2025 Dictator pardons himself: his Supremes agree

How Govt wastes our money:

1966 moon capsule splashdown in ocean: repeat moon shot wastes $93 Billion

Our tax money given to GM and LG to make lithium batteries? in OH TN MI

Buttigieg, transportation, often flies on taxpayer-funded private jets: fears confronting

NASA loses control $252 million ICON satellite, fears failure: no refund

Fentanyl is now the leading cause of death for Americans ages 18 to 49

Biden stops Sanders bill to stop helping Saudis kill Yemen citizens: leverage oil?

Biden tries to cut inflation by cutting jobs not excess profits and tax avoiders

SCAMS/SPINS:

Financial aid letters don’t reveal the real cost of college: fees, charges, costs added

Fisher Investments: “make money only when you make money” except fees every month

Fraudster Sam Bankman-Fried's gave $20 million to PACs and parties: Fights extradition

SCAM: Don’t click email with any of these subject lines in your inbox

8 fake traders CA,TX,NJ caught “pump and dump” scheme 2000: stole $100 million

Lawrence Billimek Nuveen, Alan Williams trader caught insider trades: net $47 million

Trump to pay for crimes by selling pictures of himself: $99 each: not rich anymore

We have done nothing about killing our children: 20 at a time in school: WMD are legal!

Glock switches have the ability to shoot 35 rounds in five seconds: TX machine guns

3 terrorists get 10-12 years in prison: kidnapping gov over mask mandate to save lives

TX to round up data on LGBTQ citizens: gender change records taken

Trump’s co-conspiracists plan to use our military to overthrow duly elected government

Trump’s to pay $4,000 fine for “willfully disobeying” four subpoenas: no deterrent!

D.C. Bar lawyer calls for Giuliani’s disbarment: filing suits to overturn gov is wrong

Twitter: don’t use it for biased news: one megalomaniac is enough:

Supremes’ decisions tilt toward Christian evangelicals: constitution says no favorite faith

Jobs

jobs-that-let-you-set-your-own-hours

Who owns your account now?

Best energy system: Heat pump vs Solar panels—pro & con

Start withdrawals from IRA, SIMPLE IRA, SEP IRA, retirement plan when you’re 72

Even Artificial Intelligence models can’t beat the low-cost index fund

40% dads believe parents hosting adult children is bad while only 12 % think it’s good

Miracles:

Picture worth thousands: https://twitter.com/DavidCayJ/status/1600229045387419648

How brain physics Distinguishes Memories From Perceptions

Winter Olympics may have to be held in Antarctica: global warming forces sites studied

Church turns into garden club; food pantry as people skip pews: do good works

Moderna's mRNA Skin Cancer Vaccine Shows Early Promise in a New Study

Arctic is Heating Up, Disrupting the Planet and Local Communities injured

Fusion experiment had net gain in energy but forgot to add energy to charge lasers

Our Universe is Mind-Blowing

Light is both a particle and a wave depending on how we look at the light.

I don’t think that there is any such thing as a position or a velocity of a particle.

Everything (galaxies to stones) in universe made of subatomic energy ‘vibrations’

A subatomic ‘particle’ is the smallest possible vibration (quantum) of a quantum field.

Mass–energy equivalence: E=mc^2. At the smallest level; Everything is moving a little

Energy into matter: scientists converted light energy directly into matter in one step

Physics Nobel Prize: “entanglement” 2 particles share info instantly at a distance

“It may be that gravity and quantum mechanics are exactly the same thing,” Leonard Susskind

Gravity might induce the collapse of quantum vibrations into 1 quantum state—our world

There is no TIME at this level because of force fields come and go in all directions.

Universe expanding: events may not come together like they did before.

Inside protons, neutrons, it is the fields of the virtual particles that creates its mass.

“Empty space is a boiling, bubbling brew of virtual particles that pop in and out of existence in a time scale so short that you can’t even measure them.” Space expanding.

The electricity we use comes from the field around the wire not from election itself.

Scientists build 'baby' wormhole as sci-fi moves closer to fact: inside quantum computer

We can apply for Medicare online: https://blog.ssa.gov/apply-for-medicare-online

We can apply for Social Security online: https://www.ssa.gov/benefits/retirement/

We can apply for health care online: https://www.healthcare.gov/

IAN

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts available at http://dankeppel.blogspot.com/

Friday, November 13, 2020

Are high fees still right for you?

Are 401k fees still right for you?

Our current system favors costly middle people who are superfluous today with computers. The average fees levied on 401(k) savings cost us 0.5% to 2% annually (small employers). Compare that to today’s index and ETF funds which cost 0.04% or less. The overcharges we pay do NOT guarantee superior long-term success. In fact, most studies show we lose up to 63% of our total accumulations. Given today’s average earnings of 6% with 4% for us and 2% for Wall Street, we are the Big-time losers. No matter our portfolio—conservative or aggressive—we cannot help but do better with a new system for tax-advantaged investing. Fees are no longer deductible so even in a taxable account; the new system gives you more. Such a system is easily available to any working person without costly trusts, foreign tax havens or tax-avoidance schemes used by the wealthy.

Even if you have only 10 years to retirement, this system can benefit you. The longer your NEW retirement system runs, the more tax-FREE money you have to spend.

Go tax-FREE: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072/

Which is better for investments—Dem or GOP president?

Wall Street gurus are currently going through their eternal talk about which party president is better for investors. As you might expect, this is not the right question. There are so many factors in the success of any particular investor that we should not even read these advice statements. Unless we know when exactly we will need our money or when the markets will fail, these pronouncements are just B-D propaganda. Most of us have learned that the stock market advances about 11% per year nominally over time. We know that in any given period, there are times when the market or our portfolio will rise and fall. This is why Warren Buffett, surely a wise investor, bet a million dollars on the S&P 500 stock index run by low-cost Vanguard to beat 5 guru hedge funds. Buffett gave the $1 million to his charity. The gurus are still in business so some of us still want to pay excessive fees to feel they own a superior strategy or portfolio. Unless we have insider information like our representatives in Washington, we are rewarded for just following the wise investor’s proven way. Lose 18.6% or gain 11.09%, your choice.

https://www.amazon.com/Building-Wealth-Like-Brushing-Teeth/dp/1470141469

What fuels the market climb?

Fixed income market provides low yields so investors poor into junk bonds. Our government is buying the bonds of private enterprises so the wealthy receive special treatment from the national deficit spending. The working person has no wage improvement power. The wealth gap gets wider so the rich can afford to stay in the bull market. They don’t have to worry about their company or investments going broke like the local mom and pop business so they can afford to keep putting money in the stock market to increase their wealth. Pension funds must stay in the market since many are under funded for their future liabilities. Wall Street no longer has to worry about a political meltdown so future growth looks promising. GOP Senate control will assure wealthy investors of no significant tax increases on non-wage income or wealth. Most wealthy people are not taxed on income and a wealth tax is very unlikely. Even Romney knows his offshore wealth is not in danger. Despite his protest, Warren Buffett, with $86 billions does not expect his tax rate to go up. Which is better: earning 1% or 12%?

https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373

Wealthy finding ways to avoid new taxes

With clearer future, the wealthy are scrambling to get their money hidden from the new tax proposals sitting in Dem inbox. Because the tax rates are probably going to be higher in the future, they can move their IRA balances into Roth tax free accounts now. They know the budget deficit has reached $3.3 trillion, a level not seen since the end of World War II. Since they already got the benefits of overspending, they will want McConnell to kill any stimulus for working people. The wealthy can use QCDs. They are the most tax-efficient way to reduce taxable IRA balances which have remained high with the government support in 2020. Gifts can reduce tax now and lower estate taxes later. Use Trump’s example of a $21 million deduction by giving away the right to build on your forest that never would have been developed anyway. Wealthy tax avoidance loopholes may be closing with the new regime in 2021. They need to act soon to keep the wealth gap growing. We working people can avoid paying the taxes avoided by the wealthy.

Use it or lose it: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

Biden’s new regulation: brokers must disclose conflicts of interest

Biden will need to return to the regulations that Obama instituted just before he lost to Trump. Obama’s Fiduciary Rule required that product sellers help us buy the best product available, ignoring seller commissions and fees. On April 6, 2016 the government limited the billions of dollars the financial industry could take from our retirement-savings products and advice. The final Fiduciary Rule was weakened by product sellers so they could take some of our transfer money out of 401(k)s. Trump reversed Obama’s rule and helped product pushers hide fees. Brokerage firms have hidden their bad acts. In the future, advisors will act like accountants not like used car salesmen. Some sellers have already lowered fees due to competition. We will still have to learn and shop in order to get the BEST for our particular situation but at least the industry will need to be more transparent in its offerings. Now we can get the BEST available for us because sellers will need to disclose conflicts of interest more fully. Under Trump, sellers are NOT telling us the whole truth about their bad acts and hidden fees. Now they will have to.

https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275

Is a Robo right for you?

The use of automated advice platform, or so-called robo advisors, is continuing to rise, with about 8% of U.S. households having money invested with a robo. Robo advisors are popular with millennials that have significant investable assets; nearly half of millennials with more than $500,000 to invest use a robo, according to the survey. But for mass affluent millennial households with between $50,000 and $500,000 in investable assets, only 20% reported they used a robo, along with 15% of Generation X families and 5% of baby boomer families in the same sphere. Not to lose market share, Fidelity, Schwab and Bank of America, offer new applications or features. By offering such options, the big firms were succeeding at creating a “natural funnel from a free service to their trading or managed account platforms.” But robos are not free, just lower costs than full service brokers. And so robos don’t provide higher returns necessarily. Robos offer some hand holding compared to flying solo. Vanguard is owned by us shareholders so fees/charges are at cost—profits go back to us investors, like a co-op.

https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

Deduct $300 from income in 2020

Here’s how the CARES Act changes deducting charitable contributions made in 2020:

Previously, charitable contributions could only be deducted if taxpayers itemized their deductions. However, taxpayers who don’t itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations. For the purposes of this deduction, qualifying organizations are those that are religious, charitable, educational, scientific or literary in purpose. The law changed in this area due to the Coronavirus Aid, Relief, and Economic Security Act. The CARES Act also suspends limits on charitable contributions and temporarily increases limits on contributions of food inventory. More information about these changes is available on IRS.gov.

Use all your credits: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

**********ACCOUNTABILITY**************

Like 1776, this period is a test of democracy—NO we don’t want a Dictator?

GOP 6-3 Supremes primed to reverse US back in time

Yes, courts used to put women in jail for wearing slacks

Supreme Alito: rights only for likes

Dictator: “It’s going away.” (No you are)

Dictator’s staff: “It’s out of control:” 244,000+ dead

why everyone wears seat belts now

Dictator’s Sunday 11/8 at his Church

Dictator’s armed terrorists standing by

Biden has to run the country from Delaware

How Govt wastes our money: Our Representatives gave 3.7 Trillion to the wealthy!

Trump, defeated, holds election rallies from AirForce1: costs us $77,000/hour: He lost!

Trump Plaza Casino Atlantic City blown up for Biden inaugural: Trump tax deduction?

Trump put his anti-racial justice, anti-climate change ideology into our retirement funds.

Trump’s ‘voter fraud’ proof: Philly, NY, PO DeJoy, NJ, LI, PA, PA, NC, which fraud?

World dictators still back ours: USSR, Brazil, Mexico, Turkey, Hungary, Philippines, Saudis

Trump tells Justice to find the ‘voter-fraud’ smoking gun: DoJ Investigator quits

Trump lawyers: “will we get paid for challenge work”?: Trump notorious for not paying

Mel hired movers already: Baron to military school? FL removes heliport from Marlago

Congress needs “eviction” marshal for tenant in our White House: Germany shows how

How much?: Trump may give up top secrets: he did it before: beat Impeachment once too

SCAMS/SPINS:

Trump’s mail slowdown delivers 40,000 more ballots after judge orders PO come clean

Trump orders legal military ballots to be thrown out: absentee overseas votes legal

Qanon terrorists caught w/ fake ballots, AR 15 storming Philly counting center

Only 1 Republican offered hand to new president: Biden has 200 exec orders ready

GOP still afraid of Trump’s tweets will not speak to Biden: no reconciliation in US

Trumpers angry with FoxNews for NOT airing fake “voter fraud” news & calling AZ

TX will pay $1 million: find 1 voter fraud case: a bribe for gov official is legal in TX?

Doe GOP exist with “Trump is the GOP” lost presidency? “Let’s give him a chance”

Ex Prez fires Pentagon chief: apology for Bible walk: military used against citizens bad

Can Trump’s Supremes reverse the will of the voters? GOP courts make up ‘justice’

PA voting outcome shows how much the color line still decides America’s path

Most of the military leaders sighed in relief: the “stable genius” almost gone

GOP still rules state legislatures; religious right; Trump cult: Dem work just starting

AR police to Trumpers: “death to all Marxist Democrats” “leave no survivors”

Trump refuses to start transition process: McConnell: “peaceful transfer of power”??

How a cult dies: Jim Jones took his ‘world’ with him: couldn’t face ‘the music’ real life

Trump refuses to reduce environmental pollution killing corona virus patients

Cheryl Broussard FL caught defrauding sorority investors; fake statements: 2 years jail

Robert Morgan caught running Ponzi in real estate; promised high returns, fake docs,

Local papers/websites turned into PR production for politicos/corporations. ‘news’?.

Gummies Promise to Decrease Stress: Martha Stewart leads the pitch for bad teeth

Census takers told to enter false info: Trump closed census early: change future Congress

Beam Financial caught blocking bank withdrawals: yes some banks fail

Kraig Gier Security Planning caught stealing $1 million from elderly fake docs: 5 yrs jail

HD Graham, DL Howard LL Matyas caught taking $920,000 fees no license: defrocked no jail

Ransomware thugs failing to delete stolen data after a victim pays a ransom: Thieves 2X

How easily we fall for misleading videos: ballot stuffing in USSR, burning sample ballots

Trump’s Financial ‘Protection’ lets debt collectors hound us: call, email, text, 24/7

FL court allows Prevagen promising improved memory to keep claiming and sales

Robo “collector” from 608-371-6666: https://800notes.com/Phone.aspx/1-608-371-6666

Vatican silent child/adult sex abuser slept w/ boys: not sorry, no jail, no confession

Religionist with popular power support Trump: move state governments to extreme right

Is it a scam? Check AARP scamline 877.908.3360.

Check IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams

https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers

Check Social Security: https://blog.ssa.gov/

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

Jobs

Trump hires hundreds to overturn election: then defend him from many indictments

Biden hires scientists pandemic team: Trump plays golf & does more campaigning

Health care lost with job: Supremes may increase health emergency for 30 million

This is where our raises have gone: “matching pair” Porsche and Embraer Phenom 300E

Fidelity Investments To Hire 4,000 People In Next Six Months

Florida passes $15 minimum wage—but only by 2026 in fight for fair wages.

Who owns your account now?

J.C. Penney's defined benefit plan to Pension Benefit Guaranty Corp: fewer benefits

Safe hotel list: travel is hard enough so check before check-in

Miracles:

Despite all the bad news we hear now, we have a democracy; we can vote and change!

Vaccine maker: 90% effective: Trump military/vendors to ship around: side effects?

Un-scalable wall around our White House still blocks citizens: ‘say goodbye’ fence

Two members of Biden virus panel worked inside the Trump administration: experts

GOP 6-3 Supremes primed to reverse US back to 1950s: abortions illegal, dirty air, no wildlife reserves, no voting rights, 0 immigrants, no health care, red-lining housing, no interracial couples, Trump self-pardon, cancel IRS audit, no gays, discriminate by religion, decide our elections, dismiss suit Trump as rapist, etc

We can apply for Medicare online: https://blog.ssa.gov/apply-for-medicare-online

We can apply for Social Security online: https://www.ssa.gov/benefits/retirement/

Dem wish list: healthcare, infrastructure jobs, restore environment, unite 545 kids

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts available at http://dankeppel.blogspot.com/

Friday, December 6, 2019

Best gift for your young person—lasts a lifetime

Your child or grandchild could have a $2,000,000 Wealth Reserve providing tax-FREE income later in life. Your annual or monthly gift could provide your favorite child with real “social security:” their own tax-FREE money fund. You help them take advantage of the miracle of compounding. Your gift becomes a $1-2,000,000 Wealth Reserve. You could reduce your taxable estate by up to $500,000 for each child. Your child or grandchild will NEVER have to pay taxes on the money either. Social Security will exhaust its reserve fund in about 2034, according to 2018 projections. Every year you delay helping them with a gift costs your favorite kid $100,000 later.

Start giving this holiday: https://www.amazon.com/Give-your-Child-Grandchild-2000000-Lifetime/dp/1456433105

Rethinking living life to age 100?

Longevity—living longer—and longevity risk—running out of money—are real concerns for anyone age 60 today. Maintaining physical fitness from the beginning to end of life will be paramount. Getting outside, encouraging sports, reducing the time we sit, and spending more time walking and moving will greatly improve individual lives. There is good reason to think we will work longer, but we can improve work quality with shorter workweeks, flexible scheduling and frequent “retirements.” The problem is living in cultures designed for lives half as long as the ones we have. Flexibility is the key to living well longer through different stages than in the past.

https://www.amazon.com/Longevity-Insurance-right-better-alternatives/dp/1482031434

Where can you invest $100 for your child’s future?

Teach your child to invest the Buffett way. Success with money starts early. Compounding over time assures your child of security. You have a great opportunity to teach your child how to become successful with money. They can learn to take care of themselves and even become wealthy from your guidance TODAY. You can show them how to take advantage of the greatest power in finance: compound interest and the time value of money. Warren Buffett, who turned his paper route savings into $60 billion, credited compounding over time for his wealth. "My wealth has come from a combination of living in America, some lucky genes, and compound interest." $100 a month can reach $867,000 in time.

It is TIME not stock-picking: https://www.amazon.com/Where-can-your-child-invest/dp/1492164240

Part-time job tax reporting change

IRS ruled recently that if you receive a 1099 MISC for work done which is NOT “your regular trade or business for a profit,” you may report it as miscellaneous income on line 8, 1040 instead of as a new business. Even if the payer makes a mistake and enters it in box 7, you are allowed to treat it as ‘other income’ as in box 3. If you use tax prep software, you are now allowed to move the amount reported in box 7 to box 3. This means you are not forced to complete the self-employment tax Schedule SE and business Schedule C. Usually, miscellaneous payments are for occasional remuneration for a task, not a business or trade involving expenses and the profit potential. Also for retirees, adding payments to their SS earnings record may reduce their future benefits since the remuneration may decrease the average earnings formula calculated annually. Example 1: retired social worker provides part year classes in yoga at her church. Unless she reports the $2500 from box 7 as box 3, she will owe over $800 additional tax or loss of refund. She is not teaching yoga for biz profit and there are no expenses involved in the activity. The IRS will accept reporting non-business income on line 8 despite an entry in box 7 on 1099 MISC. https://www.irs.gov/pub/irs-prior/i1099msc--2019.pdf

Example 2: high school student works at local CVS and plays drums for occasional events at a YMCA. He is learning to be a drummer as a future artist. He has expenses like transport, sticks, new heads, etc in pursuit of a profit. His 1099 MISC earnings total is in box 7. He must complete Schedule C and SE since he is an artist for a profit.

Confirm new ruling with your tax preparer.

Social Security will not be enough

Retirees receiving SS benefits in 2020 are getting a raise—a COLA. However, most will see a decrease in benefits since the Medicare B cost has gone up to $144.60 and is often deducted automatically. Looking forward in retirement, this will probably happen in future years. Plus, Congress is not likely to fix the failing SS benefit reserve fund which the trustees warn may cut benefits by 21% in 2034—just 14 years from now. For those near retirement, this is a warning: forget that new car costing over $40,000 and invest it. For those with 20 years or more before retirement, add an extra $250 a month to your 401k, Roth 401k, IRA or Roth IRA now.

Act now: https://www.amazon.com/Forget-Social-Security-Medicare-Lifestyle/dp/1466394285

How average is your tax deduction for charity?

If you still itemize deductions, this category has not been capped like the property and state income tax category. But how much can you reasonably deduct without generating a letter from the IRS? Perhaps if you stay close to the average for your income level you will be ‘safe.’ No one is ‘safe’ since the average taxpayer is just as likely as the super wealth to be audited. However, most of us don’t have the same lawyers as the tax avoiders do to fight the audit. I am asked how much to deduct by some clients when I do their taxes. I say “whatever you have receipts for.” However, the Vets, Red Cross and others don’t give you a value on your donation receipts. Any valuable item like a $4,000 wheelchair needs an appraisal or purchasing documentation. The IRS provides round numbers here: https://www.usatoday.com/ story/money/taxes/2018/07/06/how-much-average-taxpayer-give-charity-taxes-2018/36561381/ Be prepared to give receipts or docs if you claim much more than your income group average. Fewer middle-income folks are itemizing since the standard deduction was doubled last year. In recent years the IRS has quit auditing many wealthy folks. The IRS goes for the single mother with children since they know she has no money and no lawyer. America now has Socialism for the Rich:

Rich get richer with help: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

This investment is what most people are looking for

Most ‘investors’ are not traders. They understand that steady growth over time is better for their future happiness than constant worry about the current hot ‘opportunities.’ When we look at the funds that offer both growth and income before and during retirement, we use a fund’s long-term returns as a guide. Recently, a popular site called Seeking Alpha examined a fund that provides a well-rounded solution. The summary: “The Vanguard Wellesley Income fund, a mere conservative balanced fund, outperformed the S&P from 2000 to 2019. This fund proved suitable for all seasons, evidenced by its performance during major market meltdowns (i.e., 2000 and 2008). Three words might describe this fund: longevity, consistency and performance.” A total return of 9.7% since 1970 seems like an exceptional bargain in the growth and income space. A yield of 2.56% makes this fund superior to most fixed annuities for income since your capital is preserved. This is one of our choices for pre and post retirement.

One of the Vanguard Top Ten: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

Congress may give insurers and salespeople a big bonus for 2020

If they pass the SECURE Act, "The SECURE Act will make it easier for employers to offer as part of their retirement plans annuities that provide a guaranteed stream of lifetime income," says an insurance lobbyist. Employers and their retirement plan person can entice us into high-cost plans that lock up our retirement dollars into an insurer’s vaults. Using industry trick-phrases like “guaranteed income you can’t outlive” and misleading charts with best possible outcomes, employers can wash their hands of any future responsibility for the inevitable low payouts down the line. For instance, when we chose an annuity of $1000 a month in 2020, we will have no recourse when it buys only $500 a month benefits in 20 years. Currently, a retiree can shop and buy the best annuity deal out there with their money. Under SECURE, employers will be able to escape any future suit when an annuity ‘guarantee’ goes wrong. We are NOT secure with SECURE. Learn the annuity facts: https://www.amazon.com/Annuity-Decision-Tree-questions-answers/dp/1546454497

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

Courts: “Presidents are not kings”

Presidents don’t paste their face on other’s bodies—even as joke

Presidents do blame everyone else for their crimes

Trump supporter Duncan Hunter guilty: Another pardon candidate?

How Govt wastes our money: Congress spends another 1.7 Trillion we don’t have!

Drug dealers say ‘no’ to Trump importing drugs: Dealers want to be paid more not less.

TN to control poor’s health by bloc grant: refuse Medicaid money—TN decides if sick!

Trump supports Socialist Export- Import Bank to subsidize Boeing, Caterpillar, GE

Wealthy avoid global warming cuts: fossil-burning generators: we pay the tax credits

Trump gives $ millions to GOP donor to build his WALL on wildlife refuge