Congress lets our corporations pay only 10% tax

Why does the Congress allow corporations to use gimmicks to pay less tax than we do?

Apple paid just $3.3 billion on $34.2 billion of profits in 2011— giving it a tax rate of just 9.8 percent. Nearly every major technology firm has its share of tax tricks up its sleeve. Apple accomplishes this feat with a two-pronged tax strategy. For domestic sales, the company pays profits as a royalty on a subsidiary it owns in Ireland, which are then routed to a tax haven. For overseas sales, the company uses a second Irish sub, routes the profits through The Netherlands to avoid European taxes, and then sends its profits to its tax haven via the first Irish sub. This sub is called a “disregarded entity”—an affiliate not subject to U.S.income tax. (This strategy is called the “Double Irish with a Dutch Sandwich,” the report says.) Warren Buffett pays only 17% total tax, Mitt Romney only 14%, and John Kerry only 13%.

Isn’t it time you used IRS rules to your advantage too? http://www.amazon.com/Your-ZERO-Tax-Account-Wealthy/dp/1482772795

Why do high-fee money managers using no-fee index funds charge fees?

The latest buyers of index funds called ETFs are those managers who say, “We can pick the right stocks and beat the market, so pay us 2-3% of your balance annually.”

More than 100 mutual funds hold SDPR S&P 500 (SPY), while more than 70 portfolios use iShares iBoxx High Yield Corporate (HYG). Mutual Funds with ETF stakes include Columbia Dividend Income (LBSAX), Monetta (MONTX) and Vanguard Windsor II (VWNFX). ETF provider SPDR says that 21 of the 25 largest fund companies hold at least some ETFs. The managers could bid for individual securities, but, they figure, it is simpler just to buy an ETF. So why are they still charging us the full load?

Duh—because they can.  

Switch to the real thing AND pay no income taxes on your gains—EVER! http://www.amazon.com/Reboot-Switch-Tax-FREE-investing-ebook/dp/B00CV612SU/

Do you own any of these funds?

Here are 10 funds that lag their low-cost index because they charge too much. 

Here are 12 real dogs that have lost you money (-8% to -14%) in the last 5 years AND still charged you 2-3% per year. It is enough to make you cry or quit!

Now there is an answer. Buy and hold ten low-cost funds earning 10-12% a year. Accumulate $400,000 in 25 years. http://www.amazon.com/Keep-More-What-Earn-ebook/dp/B009A9YR10

Hedge funds earn 5.4%, index earns 15.4%; amateurs beat “professionals”

Hedge funds’ returns have stayed “lackluster” this year, with the $2.3 trillion industry trailing the gains of the Standard & Poor’s 500 Index by about 10 percentage points, according to Goldman Sachs. Hedge funds gained 5.4 percent on average through May 10, compared with a 15.4 percent rise for the S&P 500 (SPX) and a 14.8 percent increase for the typical mutual fund, a team of Goldman Sachs analysts said.http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137

Why are early retirees robbing their IRAs?

48 percent of people who were aged 61 to 70 and in the bottom half of the income distribution withdrew money from their IRAs annually during the period studied (2002-10). Even in the top quarter of incomes, 29 percent of people aged 61 to 70 annually pulled money out of their IRAs, EBRI said.

The sizes of the withdrawals were substantial, too, ranging from 12 percent of funds for young seniors in the top quarter of incomes to 17 percent for those in the bottom quarter.

Older seniors (aged 71 and up) appeared to be more frugal, according to the EBRI study. The Internal Revenue Service requires people with ordinary IRAs to make minimum withdrawals each year starting at age 70½. Many of the older seniors withdrew just the minimum—and then stashed some of the proceeds into other forms of savings. Save $3,000 a year on financial services to rebuild your funds:http://www.amazon.com/Insiders-Guides-Discount-Financial-Services/dp/143480593X

CA pension firm’s long-term care insurance premium up 85%

People who bought long-term care insurance from CalPERS 10 or 20 years ago, thinking it would provide security in their old age, are stunned to learn the agency is raising rates by 85 percent over two years. What are the alternatives? http://www.amazon.com/Long-term-Care-Insurance-better-alternatives/dp/147006877X

CA cites initial premiums for ObamaCare insurance

In southern Los Angeles, for example, a 40-year-old individual would pay anywhere from $242 a month for a plan from HealthNet to $259 for plans from Molina or Anthem. The comparable plan for a small employer costs $362. http://www.nytimes.com/2013/05/24/business/california-puts-tentative-price-on-health-policies-under-new-law.html?emc=tnt&tntemail0=y&_r=0

How does your retirement look? Need more assets?

57% of U.S. workers have less than $25,000 in total household savings and investments, excluding their homes. 28% said they have no confidence that they will have enough money to retire in comfort, the highest level in the 23-year history of the EBRI study. Only 66% report having any retirement savings, compared to 75% of workers in 2009. 

http://www.amazon.com/Your-Retirement-Budget-Investments-Income/dp/1483946487

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

NJ hospital tops medical cost listing

Bayonne (N.J.) Medical Center, a 278-bed, for-profit hospital in a working-class city, charges the highest prices of any hospital in the nation, according to an analysis of federal billing data released by President Obama's administration. Based on the bills it submits to Medicare, the Bayonne Medical Center charged the highest amounts in the country for nearly one-quarter of the most common hospital treatments, according to a New York Times analysis of 2011 data, the most recent available. No other hospital was at the top of the price list more often.

Health plans sold by United States Benefits are bogus; premiums returned

Fake health plans go by many names. Check the details with your state insurance regulator.http://www.consumer.ftc.gov/articles/0165-discount-plan-or-health-insurance

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Tax refunds worth $400,000

Your tax refund can be worth $400,000 in 25 years. Really?

The average tax refund is $3,022. Invest your refund in a tax-FREE account for 25 years and you can retire. Invest for only 30 years and accumulate $700,000. That is the power of compounding.  http://www.amazon.com/Your-Wealth-ReserveTM-Tax-FREE-Investment/dp/1484954882/

Can we “work till we drop”?

In 1880, as many as 80 percent of men age 65 and older were still working. But incomes rose in the 20th century, giving people the freedom to retire earlier. By 1985, only 16 percent of men 65 and older were working. Ever since, the pendulum has been swinging back. Congress outlawed mandatory retirement in 1986 for most workers, and Social Security benefit calculations were changed to make retirement and delayed retirement equally beneficial. Many have had to start benefits at age 62 due to illness or structural unemployment. A spouse may have to work longer to maintain current spending levels. Retirement planning may help: http://www.amazon.com/Your-Retirement-Budget-Investments-Income/dp/1483946487

Will schools be teaching your kids how to handle money soon?

The feds have provided money lessons for each grade so your child’s teacher can use them in classes on different subjects. The lessons are relevant to the ages. EG: how much do you have to earn to buy a skateboard if you have $88 already? How much inflation if gas prices rose 20cents? http://www.moneyasyoulearn.org/ Compliment site is http://www.moneyasyougrow.org/.

For your graduate, our Simple Financial Life has it all: http://www.amazon.com/Simple-Financial-Life-paycheck-paycheck/dp/1441499326

New cars initial quality survey led by American manufacturers

Total Quality Index was calculated from 17,568 buyers who purchased 2013 models during September to November 2012. The following list contains the number one ranked vehicles in Total Quality in their segments as rated by new vehicle buyers: http://www.strategicvision.com/press_release.php?pr=45

Is a ‘pension advance’ right for you?

“These pension advances appear to be nothing more than payday loans in sheep’s clothing. ‘Pension advances' – which are financial products that allow companies to harvest a retiree's pension payments in exchange for a lump-sum payment that amounts to just pennies on the dollar. NY regulators sent subpoenas to ten companies engaging in pension advances. “These companies are literally harvesting the-hard earned pensions of seniors, military veterans and other hard working New Yorkers,” said Governor Cuomo. “Using deceptive practices to cheat people out of their pensions by enrolling them in backdoor high-interest loans will not be tolerated in our state. Anyone seeking to prey on New Yorkers should know that we will use every tool at our disposal to aggressively pursue and put stop this fraud.” http://www.governor.ny.gov/press/05132013Power-Proceeds-Allocation-Board-Recommends-6Million-WNY

FL protects all people FROM annuity salesmen

Florida’s House of Representatives passed legislation to expand consumer protection laws regarding life insurance annuity sales to all buyers, instead of those who are 65 and older. "Anything that helps remove bad actors and protects consumers is a good thing," the sponsor says. Which annuity may help you: http://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573/

Are your 401k dollars enough?

According to a Deloitte survey, 401(k) balances have reached an all-time high and now average $85,000.  "More still needs to be done to help employees adequately prepare for their individual retirement needs." If you convert it to income, it is pitifully low! On average retired and pre-retired Americans report they've lost $117,000 in retirement savings due to unanticipated events like medical emergency. $85,000 may grow to $750,000 using a Tax-FREE investment account: http://www.amazon.com/The-New-American-Retirement-System/dp/1461030072

Deficit could be paid if IRS went after super-rich offshore accounts

The rich are hiding $32 Trillions. If they paid their fair share—just 30%—like us, we wouldn’t have a problem. They have their money in legal loopholes created by our so-called ‘representatives’ in Washington. There is more than enough to cover the deficit and the Social Security and Medicare shortfalls. And while the Congress is at it, they can ask the corporations to pay their fair share. HALF of our corporations pay NOTHING. When these people get kidnapped from their yachts, they don’t call the seal team from Lichtenstein or the Caymans, do they?

http://www.businessweek.com/articles/2013-05-02/the-super-richs-offshore-tax-avoidance-strategies

Is a “deferred income annuity” right for you?

These contracts used to be called deferred annuities—but they have been re-hyped by the marketing department. Sometimes referred to as a longevity, deferred payout or advanced life-delayed annuity, the DIA pays income to the policyholder starting at least 13 months from the policy date. Whereas the immediate income annuity is appropriate only for those looking for income starting immediately, the deferred income annuity would appeal to someone in need of guaranteed income later.

For the majority of owners, the income is never used so these contracts are passed to heirs who must pay tax on the earnings at their (the heirs’) higher rate. Some contracts cost the owners 2-3% a year for benefits they never use. Commissions can be as high as 8% of your deposit. These are really expensive tax deferral mechanisms that are costly to cancel. There are alternatives: http://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573/

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

Executive Life gives up its money finally.

Some policyholders will not get the full amount of their annuities. Benefit reductions will begin to occur soon. A court decided that liquidation can begin, including activating the participating insurers in the state guaranty funds, pledging more than $100 million to a special hardship fund, and topping off state guaranty funds and covering “orphan contracts” in states where ELNY was not licensed. The National Organization of Life & Health Guaranty Funds (NOLGHA) said it is pleased with the decision that all challenges to the liquidation restructuring plan have been removed, and is looking at a third quarter unwinding of the estate. Some have waited over 20 years for their money back.  http://www.lifehealthpro.com/pages/the-complete-elny-saga.php

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Why celebrities have money problems

Kareem Abdul-Jabbar says, I Hired an Idiot to Manage My Money

Do you ask your family/friends for advice? Watch out!

 “I chose my financial manager, who I later discovered had no financial training, because a number of other athletes I knew were using him,” he wrote. “That’s typical athlete mentality in that we’re used to trusting each other as a team, so we extend that trust to those associated with teammates.” This type of thinking extends into everyday advice, when friends and family offer well-meaning tips on subjects they may not be particularly informed on, or recommend an unqualified financial planner who has duped them into trusting them. “Consequently, I neglected to investigate his background or what qualified him to be a financial manager,” Abdul-Jabbar continued. “He placed us in some real estate investments that went belly up and I came close to losing some serious coin.”

Friends recommended Madoff too. 

Members rely on their own common sense: http://www.amazon.com/Do-Yourself-Personal-Finance-commissions/dp/1480156493

IRS ignores $400 billion tax evaders--goes after the poor instead!

The IRS's data-detection tools come nowhere close to collecting the $400 billion in tax dodges estimated to take place each year. The area in which its robo-audits have had the most impact is on tax returns for low-income taxpayers, especially the EITC. 

Starting this year, the IRS will track all credit card transactions. The agency has also instructed agents on using online sources such as social media and e-commerce sites including eBay, as well as the rich data generated by mobile devices. Your profile will likely include shopping records, travel, social interactions and information not available to the public, such as health records and files from other government investigators.

Unfortunately, the IRS ignores questionable euro debt swaps (unlisted derivatives) with no clear economic purpose beyond tax avoidance. Even if it is detected, agents face a team of lawyers in a Liechtenstein bank. Often, the IRS ignores this $5 million tax loss because of the low odds of collecting.http://finance.yahoo.com/news/irs-data-snares-mostly-low-171239433.html

By the way, the IRS thinks it is doing a great job: “… we continue to make our mark as the finest financial investigators in the world,” CI head Weber said. Remember, 2/3rds of corporations pay no tax because they have lobbyists in Washington.

Isn’t time you took advantage of tax laws and paid your fair share? http://www.amazon.com/Only-little-people-pay-taxes/dp/1478222441/

Need a graduation gift?

The Simple Financial Life consists of five actions. You don't have to be wealthy or a genius to become financially independent. This book will show you how to live the Simple Financial Life: Use only 3 mutual funds to reach ALL your financial goals.
Buy the best tax shelter. No taxes ever and it's FREE. Start them out right.
Protect your family and assets with your Wealth Reserve. Borrow from your own 'bank' to pay for large purchases. Stop wasting $3,000 or more on the financial products you now own. Manage your investments in 15 minutes. Buy whatever you need at a discount. Practice the FIVE actions for financial freedom:
http://www.amazon.com/Simple-Financial-Life-paycheck-paycheck/dp/1441499326

Best performing college savings plans

You can use the best 529 plan for your child or grandchild even if you do not live in that state, especially if your state gives no tax deduction for your contributions. The best for over 10 years is Alaska’s plan. Direct purchase plans avoid broker fees so ALL your money compounds for you—up to 40% larger account.

http://www.savingforcollege.com/

Do you need monthly income from your nest egg?  The annuity alternative!

Ever wish you could put all your money in one fund for your retirement income and growth. In the last 30 years, this mutual fund had negative returns only 4 times compared with the overall market’s 6 drops. The worst year was 2008 with a downturn of 9.8% compared with the market’s drop of 39%. The overall average was a gain of 10.2% per year. Not bad since the market’s average was just 10.7%. This fund has averaged over 10% since 1970. It holds 60% in bonds for income, 40% stocks for growth. It costs just $25 vs $100 per $10,000 invested in comparable funds. The Vanguard Wellesley Income fund can provide your checking account with a fixed monthly income just like an annuity, which usually costs TEN times more. Annuities lose value over time due to inflation—your $1000 a month buys $500 worth of food in 20 years. Wellesley’s stocks keep your account growing so you can increase your monthly income without paying for another annuity.http://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573/

What will your next hospital visit cost?

The data provided here include hospital-specific charges for the more than 3,000 U.S. hospitals that receive Medicare payments for the top 100 most frequently billed discharges for Fiscal Year (FY) 2011. “Fun” to read and avoid a visit:  http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/Medicare-Provider-Charge-Data/index.html

Check your credit reports for your parent’s old problems

I just got my annual credit reports from https://www.annualcreditreport.com/cra/index.jsp

NOT the misleading one: http://www.youtube.com/watch?v=xZ0xsF5XWfo. I found that Experian had added two old credit problems my parents had fixed years ago to MY credit report. Since they were negative reports, I just got turned down for credit. Since our “representatives” in Washington won’t make the bureaus check the misreported data BEFORE they put it on our reports, we must spend hours trying to fix it. I had to get my parent’s old lawyer involved to motivate the government agency that sent in the mistake to withdraw the error from the bureaus.

On second thought, maybe you don’t want to check your reports. I really dislike spending my time fixing their mistakes.

Penn Treaty long-term care insurer under PA plan

Pennsylvania Insurance Commissioner Michael F. Consedine has filed rehabilitation plans in Commonwealth Court for long-term care insurer Penn Treaty and its subsidiary, American Network Insurance. The rehabilitation plans attempt to address Penn Treaty and ANIC’s liabilities through benefit modifications on a temporary basis, possible premium rate increases, and several other measures. Should the companies’ assets and future revenues become more than adequate to meet future policy obligations, the Rehabilitator may begin restoring those benefit modifications. Before you buy, consider alternatives:http://www.amazon.com/Long-term-Care-Insurance-better-alternatives/dp/147006877X

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

Mutual fund misled buyers

Regulators have charged Northern Lights with misleading shareholders about their decisions on hiring investment advisers for the funds. For instance, the board told shareholders that advisers' fees were competitive with those of similar advisers when, in fact, they were twice as high. Fees are not clearly shown on quarterly statements so there is no way to know how much you are paying.

Billionaires’ new tax dodge—insurance!

The latest tax loophole exploited by hedge funds involves the reinsurance business. A whole host of billionaire hedge fund managers have started Bermuda-based reinsurance companies since 2011, according to Bloomberg. By sending money through these companies, the hedge funds recycle it and reduce personal income taxes and delay the eventual tax bill. Normally the managers would be paying either ordinary income taxes (39.6%) or long-term capital gains taxes (20%). Other favorites are incorporating and partnerships. These help wealthy get around the millionaire tax (AMT) that is supposed to collect 39.6%.http://news.yahoo.com/7-secrets-wealthy-people-know-133755925.html

Who owns your account now?

Aviva USA’s life insurance business to Commonwealth Annuity and Life Insurance.

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

How much of your retirement is going to the middleman?

How much of your retirement money is going to the middleman? 

A recent AARP study reported that 70 percent of mutual fund investors were not even aware that they were paying any fees at all. If you are paying more than 0.1% in costs, you could be giving up 50% of your total nest egg by age 66. http://www.pbs.org/wgbh/pages/frontline/retirement-gamble/

Use Warren Buffett’s Secret to cut your advisor out of the loop and gain 50% more!

Warren Buffett’s Investment Secret

+Contribute $9 a day, $250 a month. 

+ Accumulate $55,000, $200,000, $1,000,000 over time. 

+Use a special IRS account for Tax-FREE income. 

+Use only low-cost high-return mutual funds. 

+Set it and Forget it.

 Warren Buffett's Investing Secret is compounding high earnings over time. Set up this account in 1 hour. Make contributions automatic so you can’t fail.  

http://www.amazon.com/Warren-Buffetts-Investment-Secret-Steeple/dp/1484189809/

Tax-FREE income in retirement gives you an extra 30% to spend.

You heard that the wealthy pay less than 15% of their income. See how they avoid taxes:

http://www.assetlawyer.com/  Is that fair? Are you paying federal and state and Social Security and Medicare and unemployment and disability for over 30% total? Will taxes go up to pay for two wars, two tax cuts and two bank bailouts?

Start your tax-FREE retirement account now.  “Set it and Forget it.”  http://www.barnesandnoble.com/w/tax-free-retirement-law-steeple/1113460121

How does your bank rate in customer service?

JDPower asks people how they like their bank. Compare your bank to the best:

http://www.jdpower.com/content/press-release/K8ZBMfE/2013-u-s-retail-banking-satisfaction-study.htm

AR health care plan by GOP solves divided America problem

Rejecting the Medicaid expansion in the federal health care law could have unexpected consequences for states where Republican lawmakers remain steadfastly opposed to what they scorn as "Obamacare." It could mean exposing businesses to Internal Revenue Service penalties and leaving low-income citizens unable to afford coverage even as legal immigrants get financial aid for their premiums. For the poorest people, it could virtually guarantee they remain uninsured and dependent on the emergency room at local hospitals that already face federal cutbacks. Blue states will provide care for poor. The Republican-controlled Legislature endorsed a plan by Democratic Gov. Mike Beebe to accept additional Medicaid money under the federal law, but use the new dollars to buy private insurance for eligible residents. One of the main arguments for the private option was that it would help businesses avoid tax penalties. All Americans can be covered.

Perhaps this is the compromise GOP states need to bring care to uninsured.

Shopping for auto insurance every other year?

Michael went shopping because AARP magazine offered a $20 gas card. He found an extra $511 for his vacation by asking for a free quote. He called Travelers and found he could pay less than he was paying. And he got a $20 gas card just for asking. He spent 15 minutes for that $511 and a week’s gas. Over ten years, he will earn $5110. He is putting his savings in an account for vacations so he is ready in August. Michael said he used our Guide to decide on what he needed—no extras. He declined health insurance since he has his own. See if you save:  http://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

Erie good place to start your survey for vehicle insurance

Erie Insurance received top honors on the J.D. Power and Associates' 2013 Insurance Shopping Study, which evaluates the experience of customers buying a new car insurance policy. USAA for service people was also tops but you need to have military service. http://www.jdpower.com/consumer-ratings/insurance/ratings/909201527/2013-Insurance+Shopping+Study/index.htm

ObamaCare simplifies health insurance form

Regulators have simplified forms to apply for insurance under the president's new health care law. You won't have to lay bare your medical history but you will have to detail your finances. An earlier version of the forms had provoked widespread griping that they were as bad as tax forms and might overwhelm uninsured people, causing them to give up in frustration. You can also have someone else fill them in. Most people will use the online version for ease. You must qualify financially to obtain the subsidy that allows most uninsureds to get care. The applications will start becoming familiar to us on Oct. 1, when new insurance markets open for enrollment in every state. They are not for people already signed up in their employer's plan, only the uninsured. healthcare.gov/ READ:

http://money.cnn.com/2013/05/01/news/economy/obamacare-application/index.html

OH will help uninsured sign up with trained enrollers, “health navigators”

Ohio Gov. John Kasich has signed a bill requiring training and certification for a new group of professionals who will guide consumers through new insurance markets. http://www.familiesusa.org/resources/tools-for-advocates/preparing-navigators-tool-kit/

ObamaCare helps small business pay for coverage for workers too

http://www.benefitspro.com/2013/04/23/qa-to-help-small-businesses-considering-subsidies

AL homeowners’ new coverage

Obtaining comprehensive, high quality homeowners, wind and flood coverage for coastal properties has troubled those on the Alabama shoreline for some time. Frontline Homeowners Insurance, a coastal-focused insurer, is now introducing coverage to Alabama residents. The Frontline Homeowners Insurance website (http://www.flhi.com) features a wealth of tips for homeowners to reduce the potential of claims on topics ranging from home safety precautions to preventing water damage.

When should you start collecting Social Security benefits?

You can ask all your questions before age 62. http://www.socialsecurity.gov/estimator/

Make an appointment at your local office. It is FREE. You can determine, “What will you get” “When should you start collecting” and “How do you know if you are getting as much as possible.” Can your spouse collect even if they are still working and you aren’t? Find your office: https://secure.ssa.gov/apps6z/FOLO/Controller

Why do we do these things to ourselves?

5 year old shoots 2 year old with loaded rifle he was given as “gift” in KY. The rifle is a Crickett “designed for children” and sold under the slogan “My First Rifle,” according to the company's website. It is a smaller weapon designed for children and comes with a shoulder stock in “child-like colors” including pink and swirls. What a waste!

http://www.latimes.com/news/nation/nationnow/la-na-nn-kentucky-boy-accidental-fatal-shooting-sister-20130501,0,2768797.story

Were your 401k plan-matching-funds eliminated?

The number of firms offering workers a matching contribution in their corporate 401(k) retirement plans fell by about 5% in 2010 and another 2% in 2011, according to a survey released by American Investment Planners LLC. About 42% of the nation’s companies that offer a 401(k) plan also matched a portion of their employees’ contributions in 2011, the survey found. About 6% of the corporate retirement savings plans that existed in 2009 were terminated in 2010 or 2011, according to the survey.

Start your own tax-FREE retirement fund. Unlike a 401k, you pay no taxes on the growth AND withdrawals—that gives you an extra 30% later. Earn 10-12% on your contributions now. http://www.amazon.com/The-New-American-Retirement-System/dp/1461030072

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

Congress doesn’t really want to cut deficit—just our Social Security and Medicare

Lawmakers from both parties have devoted nearly half a billion dollars in taxpayer money to build more Abrams tanks. But the Army doesn’t want them.

Yet in the case of the Abrams tank, there's a bipartisan push to spend an extra $436 million on a weapon the experts explicitly say is not needed.

Deficit pays big agriculture corporations for “projected revenue”

The worst drought in 50 years led to record payouts from a taxpayer-subsidized insurance program created to protect farms from weather-related disasters. But the high costs were mostly a result of policies that guarantee farmers a portion of their projected revenue, rather than coverage that pays them for theirdamaged crops, according to a study released Wednesday. Taxpayers pay about 62 percent of the insurance premiums. The policies are sold by 15 private insurance companies, which receive about $1.3 billion annually in total from the government. The government also backs the companies against losses.

Sounds like “Welfare for the rich.”

Congress found money for airplanes to fly!

And the wealthy want their planes to be on time! Notice how quickly they found money for FAA controllers but not your cancer clinics.

Cancer clinics have been forced to delay chemotherapy treatment for their patients. Some clinics may actually have to close their doors altogether if the sequester cuts are not reversed. As several cancer doctors told the Hill, they suspect they may not have been at the top at Congress’ list because reduced access to chemotherapy doesn’t personally inconvenience lawmakers in the same way that airport delays do.

Bank failure is still possible--we have no protection

“Too-big-to-fail” legislation unveiled yesterday in Washington is needed to rein in the biggest U.S. banks because the Dodd-Frank Act has failed to guard taxpayers against future bailouts, the bill’s sponsors said. The four largest banks -- JPMorgan Chase & Co. (JPM), Bank of America Corp., Citigroup Inc. and Wells Fargo & Co -- “are nearly $2 trillion larger than they were” before getting U.S. aid to help them weather the 2008 credit crisis, Senator Sherrod Brown said in a news conference. “If big banks want to continue risky practices, they should do so with their own assets,” said Brown, an Ohio Democrat. “Our bill will ensure a level playing field for all financial institutions by ending the subsidy for Wall Street megabanks and requiring banks to have adequate capital.”

Regulators ignore risks and OK hedge fund ads

U.S. Securities and Exchange Commission chairman Mary Jo White is pushing to adopt a rule allowing hedge funds to advertise in a move consumer advocates say could fail to protect unsophisticated investors, 

Supremes should have let recount continue, as per Constitution

Retired Supreme Court Justice Sandra Day O'Connor, whose decision to vote with the majority in the 5-4 Bush v. Gore decision ended the 2000 presidential election recount, said Friday she's not sure the court should have heard the case. The ruling overturned a previous decision by the Florida Supreme Court that ordered a recount of state ballots. Constitution says disputes go to Congress to be resolved. Supremes violated Art. II and 12^th Amendment:  http://www.archives.gov/federal-register/electoral-college/provisions.html

Gov says tax evaders still playing deception game

One of the GAO report’s findings is that many taxpayers, in an effort to avoid onerous penalties and back taxes, are not joining the IRS’ offshore voluntary disclosure programs, instead filing amended returns or simply disclosing offshore accounts in current returns, without acknowledging past years’ nondisclosure. The report shows offshore noncompliance may total “several tens of billions of dollars.”

Who owns your account now?

Genworth to drop AARP LTC product line

AARP has been working with Genworth to develop a new long-term care program.

Although the Genworth suspension of AARP-branded LTCI sales ends the exclusive branding arrangement Genworth has had with AARP, AARP is not actively seeking another LTCI provider, but would be open to talking to other insurers, AARP said.

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Retire with tax-FREE income: Avoid tax increases

How to Retire with Tax-FREE Income: Avoid tax increases to reduce the debt

Your total return in 2012 could have been 15.3%.

Unfortunately, you will eventually have to pay tax on those earnings if they are in your retirement accounts. They could be tax-FREE.

Isn't it time you started using the tax laws to your benefit? Why not pay your fair share? 

Warren Buffett pays only 17% total tax. Mitt Romney and John Kerry pay less than 15%.

I will show you how to set up your account in one hour: http://www.amazon.com/How-Retire-Tax-FREE-Income-increases/dp/1484156951/

Long-term care insurance premiums up for women

Genworth, the largest producer of long-term care policies, will start rolling out gender-based pricing next month for women who apply for coverage individually, and the company’s competitors are expected to follow suit. Genworth declined to specify the amount by which affected policies will rise; industry estimates put theincrease between 20% and 40%. Women live longer and thus have more claims than men. Industrywide, women represent 60% of long-term care insurance policyholders, and account for 70% to 80% of claims. Overall, premiums have risen between 30% and 50% over the past five years as the industry corrects for miscalculations that carriers made before the financial crisis. 

Women need to understand the alternatives before paying more: http://www.amazon.com/Long-term-Care-Insurance-better-alternatives/dp/147006877X

Investment plans of academics do better than corporate plans

Retirement plans for academic faculties and staffs working at higher education institutions outperform the corporate sector due to lower costs, automatic enrollments, default contribution rates and plan changes in plan design, according to a new study.

Now you can use one of the best plans available for academics:  http://www.amazon.com/The-New-American-Retirement-System/dp/1461030072

ObamaCare subsidies to middle class without insurance--qualify

The majority of tax subsidies to help Americans pay for health insurance starting in January will go to working families, according to a nationwide study to be released Thursday and obtained by USA TODAY. About 25.7 million people who fall between 138% and 400% of the poverty level — or below $46,000 for a single adult and $94,000 for a family of four — will be eligible for funds that will go directly to an insurance plan that they choose. According to the Congressional Budget Office, those subsidies will cost about $350 billion from 2010 to 2019, but taxes and savings built into the law will offset them. For more information about the exchanges, visit http://www.healthcare.gov/.

Are prepaid debit cards for you?
Many credit-weary people are picking this type of money today because general aversion to credit, lack of credit available due to stringent lending standards and lower demand due to a decline in the number of credit-eligible borrowers. Other folks baulk at the new bank fees to maintain a relationship. 89 percent of the checking accounts offered at the 12 largest U.S. institutions involve bank fees. Some like the ease of use: buy and load at any big retailer. BEWARE FEES: Shop around. Fees vary. Some banks are setting a fixed monthly fee. Activation fees can be waived if done online. ATM fees can be $3. Check this survey to match your needs:http://www.bankrate.com/finance/banking/best-prepaid-debit-cards.aspx

Are low-initial deposit annuities for you?

Insurers are hyping fee-laden low-minimum annuities to induce younger people to start making payments early. Using cool names like Guaranteed Future Income, Income Elite, Choice Index 10, and Deferred Income, insurers are salivating over consumer fears of market turmoil and the flight to guarantees. However, annuities lock away your money for 20 years or longer. Tax-deferral can be gained in an IRA. Both require taxes to be paid when tax rates may be higher. Tax-FREE Roth IRAs can be a better alternative. Despite government support for funding annuities inside employer pensions, this can be costly. You are supporting the insurer, the mutual fund complex, the plan administrator and the employer bookkeeping. All these middlemen need to eat so you may pay more than you earn on your contributions during these low-interest periods.

There are better alternatives: http://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573/

NJ, NY homeowner rates up

Rates are going up. Policy language is getting stricter. Some insurers are pulling back from the coast. But they’re not leaving the Garden State. The most obvious change is the price of some private insurance. Insurance brokers say have seen some flood-prone properties get hit with double-digit percentage point rate hikes. But less obvious is the fact that insurers are also re-tooling their policies to limit exposures, earn more money for extra coverage and create greater clarity about what is and is not covered. Insurers are starting to define a storm surge as flooding, rather than a phenomena caused by a “named storm,” such as Sandy or Irene. This reduces their responsibility. Flood insurance may run $500-$2,000 depending on the area. 

Buy only what you need:  http://www.amazon.com/Homeowners-Insurance-Beware-Coverage-Policy/dp/1480100870

Women want more financial help but professionals “not responsive”

More than six in ten women (62%) said they have an interest in learning about financial planning, retirement planning and investing according to the 2013 Women, Money & Power Study* from Allianz Life, nearly double the amount (35%) who indicated interest in these topics during the original study conducted in 2006. However, despite innovations within the financial services industry, 70% of all women said they believe financial information is hard to understand, up significantly from the 44% who felt that way during the initial Women, Money & Power Study. Women are asking for clear and simple-to-understand financial information that is available on the Internet.

The vast majority of women surveyed noted they are more concerned about attaining a retirement lifestyle than gaining specific investment guidance. Members start here: http://www.amazon.com/Ensure-Your-Financial-Health-Wealth/dp/1466388293

Is a reverse mortgage right for you?

First, you need to qualify. To be eligible for a FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home. You are also required to receive consumer information free or at very low cost from a HECM counselor prior to obtaining the loan. You can find a HECM counselor online or by phoning (800) 569-4287.

The amount you may borrower will depend on your age (youngest borrower), Current interest rate, Lesser of appraised value or the HECM FHA mortgage limit of $625,500 or the sales price; and Initial Mortgage Insurance Premium--your choices are HECM Standard or HECM SAVER. In addition, the more valuable your home is, the older you are, and the lower the interest rate, the more you can borrow.  If there is more than one borrower, the age of the youngest borrower is used to determine the amount you can borrow.  For an estimate of HECM cash benefits, select the online calculator from the HECM Home Page. Many online reverse mortgage calculators can provide you with an estimate of the amount of funds you can borrow.

Less expensive home equity loans are alternative.

Rich get richer; everyone else got poorer

During the first two years of the nation’s economic recovery, the average net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%, according to a Pew Research Center analysis of newly released Census Bureau data.

From 2009 to 2011, the mean wealth of the 8 million households in the more affluent group rose to an estimated $3,173,895 from an estimated $2,476,244, while the mean wealth of the 111 million households in the less affluent group fell to an estimated $133,817 from an estimated $139,896. 

We need help to build wealth. Try: Your Investment Edge

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

Is your advisor trying to get rid of you?
Here are the signs:

When your advisor starts your financial review conversations by shifting the responsibility to the firm, he may say, “we’re not doing much for you” or “the cost of doing this is probably not appropriate for you.” He may try to transition you to some sort of platform outside—such as Schwab, Vanguard or Fidelity. Some advisors with long relationships find it difficult, so the ‘boss’ might take over the conversation. Remember, advisors are paid by commissions on sales or quarterly fees from your account. If your account is not producing at least $5,000 every year, you are not profitable. You will probably receive a nice follow-up letter after the conversation.

On the other hand, Vanguard may welcome you with a nice follow-up phone call. You can probably make good use of that $5,000! Advice from licensed advisors is free and you may just need confirmation of what you are already doing: http://www.amazon.com/101-Financial-Planners-Questions-Answers/dp/1469990563

Brokers stop Regulators from making it easy to find brokers’ records

FIRNRA withdrew a proposal that would have required brokers to post a link on their websites and social media to a database containing information about their disciplinary history. Finra proposed the rule as a way to increase investor usage of BrokerCheck. Finra spokeswoman Michelle Ong said the agency withdrew the rule due to feedback it received in 24 comment letters.

Investors will have to search on their own to check out bad brokers. Members avoid Wall Street and earn more: http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137

See if your advisor is robbing you blind

http://www.pbs.org/wgbh/pages/frontline/business-economy-financial-crisis/retirement-gamble/the-retirement-gamble-facing-us-all/

Great graduation gift idea

Get your graduate off to a great investment plan using our iTunes app:

https://itunes.apple.com/us/app/$2-million-retirement-system/id449360218?mt=8

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

Here we go again?

Citigroup, Goldman Sachs, and Morgan Stanley preach caution, even as their bankers return to pre-crisis deals.Recently, Citi has made big bucks pushing a type of bond deal that packages together risky loans and sells them off to investors as highly rated investments. In the first quarter of the year, the bank was the biggest underwriter of collateralized loan obligations. Citi is also back in subprime -- earlier this month, it was one of the lead bankers on a $1.1 billion bond deal backed by auto loans to borrowers with low credit scores. Wall Street firms have sold nearly $30 billion in CLOs this year, more than triple what they sold in the same period a year ago. These banks are still insured by us the taxpayers. More:http://finance.fortune.cnn.com/2013/04/24/banks-risky-deals/

FL considers canceling tax breaks for financial firms

The Florida Senate is advancing plans this spring to eliminate a pair of decades-old tax breaks for banks and insurance companies. One measure would repeal a tax deduction for international banking, which critics say has become a gaping loophole that does nothing to encourage investment in Florida and primarily benefits big, multistate banks such as Citigroup and Bank of America. The other gives insurers $30 million extra for car registrations. Who knew?

American terrorists buy all their bombs from same store—no license required!

Boston Marathon bomber Tamerlan Tsarnaev walked into a New Hampshire fireworks store two months before his deadly attack and asked for the “biggest and loudest” kit — then got another set for free, the Daily News has learned. The company that sold Tamerlan the fireworks is the same one that sold Times Squarebomber Faisal Shahzad the firecrackers he used to build his failed car bomb. Tam bought the “lock and load” kit of 24 shells of gunpowder. Buy one get one FREE. Wow!

Should doctors/hospitals charge victims over $20,000 to amputate leg?

Are bombing victims really getting hit with the full price? If you have ever had a procedure, you know the insurer is billed many $ thousands and pays about $ 500 because they have a contract with the provider. Luckily, MA requires insurers to cover almost all expenses so residents have help but only the “medically necessary.” Out of state residents are out of luck. Will they sue bombers? Their families? Bomb sale store?

Insurers don’t cover all artificial limbs. One victim "got a call from the insurance company and the person on the other end said, 'How long are you going to need the prosthetic hands?' http://news.yahoo.com/boston-victims-face-huge-bills-donations-pour-174957328.html

West TX blast victims are suing the fertilizer plant which is family owned.

TX gov wants to abolish all regulations in this country. Plants will explode and kill more people since this plant was just given violations but never complied. http://www.propublica.org/article/what-went-wrong-in-west-texas-and-where-were-the-regulators
 

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com