Your Unbiased Advisor: Best gift for your young person

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