Best Graduation Gift?

Best Graduation gift? Help them start investing early!

Parking lot attendant Earl Crawley started early with $100 and now has $500,000:

http://www.youtube.com/watch?v=XD0svDGyLWU 

Starting early is the easiest way to assure your grad of living well.

All it takes is $9 a day and 1 hour to set up a tax-FREE account.

Accumulate $1,000,000 with NO taxes EVER.

Compounding stock dividends is how millionaires double their money. http://www.amazon.com/Wealth-every-school-graduate-century/dp/1466427906

Tax deadline advice

The IRS has some advice for taxpayers who missed the tax filing deadline. File as soon as possible.  If you owe federal income tax, you should file and pay as soon as you can to minimize any penalty and interest charges. There is no penalty for filing a late return if you are due a refund. Free File is still working.http://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free

Will Obama’s budget change your retirement plan?

There are good, bad and ugly here: http://money.usnews.com/money/blogs/planning-to-retire/2013/04/10/how-obamas-budget-impacts-retirement-savers

You have to make up for cuts in Social Security benefits. We need to grow our tax-FREE income NOW while we can: http://www.amazon.com/Tax-FREE-Income-Replaces-Social-Security/dp/1484129539/

What will the “CPI in chains” do to your SS benefits?

Over time, the new increases will NOT keep up with inflation since most older folks need to buy medication and health care. These items have been increasing at twice the rate of inflation NOT less. The loss of benefits is estimated to grow quickly: http://seekingalpha.com/article/1334361-the-chained-cpi-how-big-of-a-difference-does-it-make?source=yahoo

401k fee disclosure just as undisclosed as before—fees can cost 40% of nest egg?

Most employees were supposed to learn in clear English, how much they were paying for administration, record-keeping and accounting as well as investment and operating expenses. The disclosures have been problematic for investors while creating more paperwork for employers and plan-management companies. Regulators are tracking claims to see if we are still intentionally misled. However, the point is that we still don’t know how much in total is taken from our money. We can learn a lot from Brightscope’s ratings of plans: EG Google: http://www.brightscope.com/401k-rating/367778/Google-Inc/372789/Google-Inc-401K-Savings-Plan/

Buy only tax-FREE low-cost retirement funds: http://www.amazon.com/Your-Retirement-Mutual-Funds-retirement/dp/1481114026

Long-term care costs rise: is insurance right for you?

Study shows a continued upward trajectory when it comes to the cost of obtaining long term care services. The cost of receiving care in a setting such as an assisted living facility or nursing home is dramatically increasing, while the cost to receive care at home through homemaker services or a home health aide is rising at a much more gradual pace. The median annual costs have gone up from $65,200 to $83,950, increasing at more than four percent a year. The better news is that costs for homemaker services and home health aides have remained relatively flat. Since 70% of Genworth's first time long term care claimants choose in-home care, these costs have remained more manageable. Learn what the alternatives to insurance are:http://www.amazon.com/Long-term-Care-Insurance-better-alternatives/dp/147006877X

GAO says some pension plans in trouble: Can you prepare?

Government Accountability Office acknowledged that the most severely distressed multiemployer plans have taken significant steps to address their funding problems. The Pension Benefit Guaranty Corporation's financial assistance to multiemployer plans continues to increase, and plan insolvencies threaten PBGC's insurance fund's ability to pay pension guarantees for retirees, the GAO noted. Since 2009, the PBGC's financial assistance to plans has increased significantly, primarily due to a growing number of plan insolvencies. The PBGC estimated that the insurance fund would be exhausted in about two to three years if the projected insolvencies of either of two large plans occur in the next 10 to 20 years. By 2017, the PBGC anticipates the number of insolvencies to more than double, further stressing the insurance fund. Build your own guarantee fund: http://www.amazon.com/The-New-American-Retirement-System/dp/1461030072

Are you prepared for medical costs in retirement?

While a man retiring in 2020 will have a 50-50 chance of having all his future out-of-pocket medical expenses exceed $109,000, a new study found that men's median estimate of those costs is just $60,000. For women, the median estimate of out-of-pocket costs is just $30,000. But partly because they tend to live longer, they have a 50 percent chance of having their future expenses exceed $156,000.

"Medicare only covers 60 percent of health care in retirement," study director Hoffman said. "Even with a Medigap policy or an employer sponsored retiree plan, people are still going to have out of pocket expenses. The hardest thing for people to plan for is to find the balance between the right level of coverage and the right level of what they might spend out of pocket." Retirees do have the option of a high-end Medigap policy that covers more, but that can be expensive protection. Premiums aren’t refundable.

Learn about options: http://www.amazon.com/Long-term-Care-Insurance-better-alternatives/dp/147006877X

Why are employers picking high-deductible plans?

Mercer report says the number of employers switching to high-deductible health plans increased from 12% in 2010 to 26% last year. Moving even a small number of employees out of a more expensive plan into a CDHP can result in significant savings for an employer. The cost of coverage in a CDHP with a health savings account is about 20% lower, on average, than the cost of PPO coverage – $7,833 per employee compared to $10,007. Employers are also looking at “self-insuring” their plans to control costs and benefit from cost reductions directly. Large employers have been self-insured for years, saving the capital insurers take from premiums. Use our Guide to buy only what you need: http://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

Congress hides its stock trades AGAIN—only bill GOP and DEMS agree on!

Congress rushed through a bill to exempt federal government employees from having to disclose their financial dealings online. Critics said this law eviscerates part of last year's Stock Act, designed to stop insider trading by federal officials. Senate Majority Leader Harry Reid introduced the bill on Thursday and had the chamber vote on it late that evening. The House took the bill up on Friday afternoon and passed it by unanimous consent, with no members objecting.

Most Congress people get richer by investing in firms they know will benefit from laws they pass. It is illegal for Americans to use insider information but Congress was exempt until last year. Now, no one will know if they do illegal trading. The median net worth of a U.S. senator was $2.63 million in 2010, the most recent year for which financial data are available. That was up 11% from the year before. Studies by Alan Ziobrowski at Georgia State University conclude that our ‘reps’ regularly outperform the markets by large amounts due to the “significant information advantage” they derive from their jobs. 

You need an Investment Edge too: http://www.amazon.com/Your-Investment-Edge-Tax-FREE-Account/dp/1482695677

SCAMS           “Deficits don’t matter” GOP grandfather, Dick Cheney, 2002

Gas prices remain high despite US producing more oil/gas here--No energy independence pay off!

American refiners export more than 3 million barrels per day to other countries, which are willing to pay more than we are. Also, U.S. shipping interests have made it more costly to move fuel between U.S. ports. This in particular hurts the Northeast, which is struggling to meet its fuel needs after several refineries closed in the last two years. As a result, it’s often cheaper for a Gulf Coast refiner to send gasoline to Brazilthan to New York. Despite the hype, Venezuela doubled its imports in 2012.

http://www.businessweek.com/articles/2013-03-28/why-abundant-oil-hasnt-cut-gasoline-prices

Bank America sued for taking kickbacks from insurers

Bank of America must face claims by homeowners that it took kickbacks from private insurers. ThreePennsylvania homeowners sued the bank last year claiming its pay-to-play reinsurance scheme cost borrowers $284.7 million between 2004 and the end of 2011. That’s the amount Bank of America allegedly collected from private mortgage insurers as its share of insurance premiums for referring borrowers, according to the complaint.  Home buyers who take out mortgages with less than 20 percent down payments are typicallyrequired to purchase private mortgage insurance at closing. The premium paid by the borrower protects the lender in the event of a default. Bank collects twice with no risk.

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

saving $1560 on insurance

Sam saves $1560 on car, home and excess liability insurance
Sam of NY used our new Guide to save big on his insurance premium this year. He took an hour one day when he received his auto renewal to check other insurer’s rates. He was able to increase his deductibles and drop some of the duplicate coverage he was paying for in order to save on all three policies. He found that his bundled policies with one company did not save him as much as purchasing the coverage separeately. When he shopped he found that the rates were significantly lower than the coverage he had. He figured he had been losing $1560 for the last 12 year because that was when he last priced his car insurance. The home insurance carrier gave him a discount for his home since he had never made a claim. The insurers keep a record of all home claims. Sam used his savings to pay off a credit card. Sam was happy.
amazon.com/Industry-Insiders-Guides-Buying-Insurance

Women Much More Concerned Than Men with Keeping Up With Monthly Expenses MassMutual Survey says. Both men and women are concerned about saving enough for retirement – but for women, just keeping up with monthly expenses is an even bigger concern. The economy remains the big concern. Women are more likely to keep an eye on spending and finding bargains. Women are also better investors but they have less income than men. Members use our Guide for Women to Ensure Their Financial Health: amazon.com/Ensure-Your-Financial-Health-Wealth/

NY Gov orders refunds on health insurance overcharges.
11 insurance companies have been ordered to refund $114.5 million to holders of policies that cover 573,748 people who were overcharged for health insurance premiums in 2010. The refunds were overcharges on the premiums insurers are allowed to keep after claims are paid--MLR. Most of the refunds will go to members of large groups—employer-provided insurance. All major insurers were involved. For list of insurers, see Governor Andrew M. Cuomo’s website: http://www.governor.ny.gov/press/110911health


GOP lowering’ death’ tax in some states
If you live in some states, you need to make provision for estate and inheritance taxes. Or you can change legal residence and pay nothing. Since some tax is due on assets as low as $675,000, owning an average value home may trip the tax buzzer. In some states, GOP lawmakers have raised the threshold so more citizens pass free of tax. In most states, how you own assets can make a difference. In other states, you may not have to worry at all—the wealthy have already fixed NO death tax and NO inheritance tax. The federal exemption is $5 million but states are changing theirs. Check your state. We help you plan your retirement so that there is enough fulfill your wishes: amazon.com/Your-Retirement-Spending-Plan-enough/

Obama and GOP agree—raise taxes slowly by reducing CPI increases
Congress is looking at reducing future raises by adopting a new measure of inflation that also would increase taxes for most families -- the biggest impact falling on those with low incomes. If adopted across the government, the inflation measure would have widespread ramifications. Future increases in veterans' benefits and pensions for federal workers and military personnel would be smaller. And over time, fewer people would qualify for Medicaid, Head Start, food stamps, school lunch programs and home heating assistance than under the current measure.
Taxes would go up by $60 billion over the next decade because annual adjustments to the tax brackets would be smaller, resulting in more people jumping into higher tax brackets because their wages rose faster than the new inflation measure. Annual increases in the standard deduction and personal exemptions would become smaller.
Washington assumes that we are stupid and will not notice this change to Chained Consumer Price Index: http://finance.yahoo.com/news/New-formula-would-reduce-apf-365864943.html?x=0
Time will tell if Cain sex beats Chained CPI on our media coverage.

ObamaCare’s mandate upheld by district court
A panel of the U.S. Court of Appeals for the District of Columbia issued a split opinion upholding the lower court's ruling that found Congress did not overstep its authority in requiring people to have insurance or pay a penalty on their taxes, beginning in 2014. The requirement is the most controversial requirement of Obama's signature domestic legislative achievement and the focus of conflicting opinions from judges across the country. The Supreme Court could decide as early as Thursday during a closed meeting of the justices whether to accept appeals from some of those earlier rulings. Our future health care lies in the hands of 5 guys who have fully paid policies. http://usconservatives.about.com/od/capitalpunishment/tp/Top_Conservative_Justices.htm

SCAMS
Romney plan to change your benefits
The former Massachusetts governor said he would lower the cost of Social Security by raising the eligibility age for benefits, but he did not specify how quickly those changes would be phased in. He estimated that he could achieve tens of billions of dollars in savings by capping the cost of Medicaid, the federal program that provides medical care to the poor, and allowing the states to take it over — a move his campaign said would "empower them to innovate."
In one of the most controversial elements of his plan, Romney proposed a major restructuring of Medicare, which currently provides health insurance to about 47 million elderly and disabled people. Under the changes, Medicare would become just one of many plans that seniors could purchase with a new "premium support" system that would give them a set amount of money each year to purchase a plan.
Aides said the plans would have to offer a level of coverage comparable to the benefits offered under the current Medicare system. They asserted that by encouraging a range of private insurers to compete with Medicare, which could begin running a deficit as early as 2024, the program's costs could be lowered.

GOP plan: less SS benefits from your contributions, kick the poor off Medicaid, and give you a voucher to buy your own old age insurance, if you can find an insurer when you are old and sick. We will need a lot of luck!

We, Taxpayers are helping the wealthy buy bigger McMansions!!
“It's not the intent of the FHA to facilitate people buying McMansions,” said Representative Scott Garrett, a New Jersey Republican opposed to higher loan limits. “The intent is to help the average American buy the average house.” Congress is weighing a proposal to restore higher loan limits that expired on Oct. 1. The measure, already adopted by the Senate, would allow the FHA and government-controlled Fannie Mae and Freddie Mac to insure single-family mortgages for as much as $729,750, up from the current $625,500, in high-cost parts of the country. Banks and realtors are lobbying hard to stop Congress from cutting off taxpayer support.


“I wish I had done more”—famous last words
Paterno is not a target of the criminal investigation, but the state police commissioner called his failure to contact police himself a lapse in "moral responsibility." "This is a tragedy," Paterno said. "It is one of the great sorrows of my life. With the benefit of hindsight, I wish I had done more."


IAN
41 Watchung Plaza, B242
Montclair, NJ 07042
347.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available at http://dankeppel.blogspot.com/