More kids, less tax
in 2018
Yes, thanks to some Congressmen,
the credit against your taxes increased from $1,000 to $2,000 per child. Children
under age 17 at the end of the year and dependents living with you for six
months count. BONUS: Up to $1,400 of the credit can be refundable for each qualifying child—you get a refund even if you don’t
owe any tax. See your preparer or Publication 972. Despite Rubio posturing, not many
will actually receive the refund.
Birth day of
December 31 counts for $2,000 credit.
Is stock trading
right for you?
One study says 8 in
10 traders (NOT
investors) end up losing money within 6 months. Trading options can magnify
the loss. Another study
indicates a large prize lottery opportunity cuts the number of traders
significantly. Trading is more like gambling in that no method of analysis
provides a high probability of trading success. Unless you have insider
information on a company, there are simply too
many factors in determining the growth potential of a trader’s bet. One of
most respected analysis of trading is by Charles Ellis in Winning-the-Losers-Game-Strategies-Successful.
So why are so many people offering trading secrets, courses, websites,
strategies and TV opinions? Simple, they want to make money--be rich. If any of
these people had a successful system, don’t you think they would be home in
their PJ executing it with borrowed capital (margin account)? Yes they would. The
most
successful investor today advises that we use low-cost funds. He says buy
and hold them--forever. Don’t sell when the market tanks. He proved his advice
recently by winning
a bet with a hedge fund operator using 5 different strategies.
Who makes decisions
if you aren’t able—accident can incapacitate
You are out cold
from accident. Doc tells your family you need a risky surgery but your sister
nurse says maybe not. Who decides? You could prepare
a directive in advance. Who gets your dough if you don’t make it? Will your
family share half of all you own with the Feds? A little planning goes a long
way. The myth that you will die quicker if you think about your death is
because people worry about this stuff too much. Anxiety
and stress can eventually kill. Plan like you are going on a long trip.
Then be happy and enjoy—you got it all covered! Sign your directive now.
Is the miracle
of compounding working for you?
What is it? What
else can you call it but a miracle? You save $250 a month for 33 years or a
total of $99,000 ($3,000 a year X 33) and you have about $1 million. Check it
yourself: http://www.moneychimp.com/calculator/compound_interest_calculator.htm.
You do nothing else--no broker, no advisor, no trading, and no market timing to
lose your money. You follow Warren
Buffett’s strategy. The largest low-cost mutual fund company (Buffett’s
preference) will debit your checking for $250 so you don’t miss a month. They
invest it for you at ultra low fees in a tax-free account. Totally ‘hands-free’
$1million.
So simple; people
don’t do it: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513
How are you
preparing for the downturn?
Advisors get paid,
not to make you money, but to
keep you from creating a disaster in your portfolio. Every advisor with the
fiduciary pledge will keep
your portfolio diversified. Depending on your age, most advisors will have
your stock/bond mix lean toward stocks when you are younger (60-40%) and bonds (40-60%)
when you are older. Timing the market is a fool’s fantasy. Day trading is the
easy way to lose money. The
average brokerage investor using an advisor earns only 3.79%. Since the most
successful investor today advises that we buy and hold low-cost funds, you
may skip your financial consultant and just buy and hold the most rewarding
funds over time. Which ones? Well here is a list: https://www.businessinsider.com/forgetful-investors-performed-best-2014-9.
My friends and I, formerly in the business have worked with clients that pick a
diversified balance of securities: The Ten Best funds for the long term. Never
sell on a downturn.
Another method for
the rich to avoid paying taxes
Business owners can
take advantage of the 20% pass-through deduction for qualified business income
(QBI). However, some owners will have to create or fund a defined-benefit plan
for their business. In other words, in order to avoid current taxes, they will
need to declare LESS income by putting their profits into a pension plan for
retirement. They may have to live on much less to get this benefit. Example: An
owner with taxable income of $500,000 can’t claim the QBI deduction. However,
after making a $200,000 retirement contribution through establishing and
contributing to a tax-qualified defined benefit plan, taxable income would drop
to $300,000 and they could claim the QBI deduction. They might take a loan from
their plan if they need more income in their next fiscal year. We only have one
way to avoid paying taxes.
Use your tax
shelter: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300
Employee buy-out: How
do you decide?
This is difficult
decision that lasts 20-30 years—for the rest of your life. Each of us will have
different factors to consider. Each offer is packed with details. Who can help
you decide? We go to a fixed-fee planner so our professional CFP is not tempted
to promise THEY can beat the payout of a fixed guaranteed pension by managing
the lump-sum option. On the other hand, if you have other income assets and can
use a big payout now for a retirement home, etc, you can relax. Or do you need
the guarantee? Other factors: employer solvent, advisor solvent? Employer
buying an annuity at today’s low rates? You can always buy annuity later when interest
rates go up. Does pension have cost of living increases? Money loses HALF its
purchasing power in 20 years. Will the advisor’s fees and costs eat up the lump-sum?
What is advisor’s plan to provide increasing income for BOTH of your lives? Do
you need cash now for heavy health care costs? Would your family handle a pot
of gold well? Plan all
retirement elements carefully.
Consider all
options: https://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016
****************
Two Americas
***********************
How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!
Gov OK with new
drug 1,000 times more powerful than morphine: more addict’s rehab.
$200
Millions for 15,000 troops: political
stunt resented by US generals: Dictators do it.
Over $95,000 for ‘freshening’ up in Cairo by Lady Trump: it was ‘only
6 hour’ stay.
Ivanka
gets China profit deal instead of tariff lifting deal—family over country?
AZ
govt still trying to discriminate by age: Firemen can’t lose jobs, Supremes
say.
NYC pensions earn less than HALF 2017 market rate
yet pay
risky advisors $1 Billion.
SCAMS/SPINS:
Is Health Care for
All a winning formula for Dems? Many Americans are for it.
Financial advisors caught
selling most expensive fund shares: SEC fines
Sonya Camarco CO
caught stealing
$1.8 million from clients—female gets 20 years.
Douglas Simanski, PA
caught promised
‘tax-free’ fixed income ponzi: fine, no jail
Rapper T.I. caught cryptocurrency
pump-and-dump scheme: promised
24,983% return.
Simple Health Plans FL
closed
for selling junk insurance promised comprehensive care.
Mat Whitaker, Trump’s
new AG from firm
stealing $26 million bogus patent scheme.
Nomorobo, hung
up on more than 850,000 health-related robocalls in October alone.
WellsFargo
foreclosed on your mortgage by ‘mistake’? Blames computer; lawyer
fees.
WellsFargo knowingly
overcharged on auto insurance since 2012 No jail time for execs.
Driver-less
car hits motorcyclist: ‘AI Owners’ blame other ‘driver’ for mistake?
How
many must die daily (1,123)
before we ban assault weapons
of mass destruction?
----------------------------------
The Mob Boss can never go to jail: Trump
has Kava as Supreme so no indictment.
‘No man is above the
law’ … well up till now. Dictators
nullify courts first, then votes.
Supremes protect
Don’s ‘Orders’? – GOP: Sure, pres can change
Constitution anytime.
----------------------------------
Jobs:
Trump
Iran sanctions are B.S.: Jobs not lost—everyone got waiver and can buy oil.
Consider
home health-care workers if pay increases due to shortage.
Who owns your account now?
ObamaCare
subsidies help you buy real coverage; TrumpCare
not cover pre-existing
4% CD is back:
hold your cash in secure account and wait for higher rates. Join for $8.
Miracle:
Immigrant’s Falafel
House named ‘nicest
places in America’ Why? “I always invite anyone who hates us to the store.”
IAN
41 Watchung Plaza,
B242
973.746.2014
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