Many people have assets in their retirement plans that they do not need to use for their retirement. They want to leave those dollars for a family legacy or a favorite charity. Unfortunately most Qualified plans include a requirement that the owner begin taking Required Minimum distributions begin when the reach age 70.5. The penalties for not taking the RMD are very severe and are designed to be Punitive in Nature. There are only a couple of ways to avoid these withdrawals or the Punative taxes. First you avoid that if your funds are within a ROTH IRA or A ROTH 401K account. But there is a way to avoid taking the withdrawal and avoids the taxable nature of the distribution. With Your Tax professional I can help you accomplish this. It involves a charitable contribution using some of your assets but does not increase your income or your income tax.
Lets assume that your retirement plan is large enough so you need to take a $20,000 withdrawal this year. If you don't take the withdrawal you tax penalty is $10 K. If you do take the Withdrawal your tax bill would be increased by $5 K assuming a 25% tax rate. That would leave you with $15 K after tax. By taking the withdrawal you might also find that you have been pushed into a higher tax bracket!! You may also find yourself caught with the new increases in taxes due to OBAMACARE. This may make it go from bad to worse. So in taking a distribution you did not want or need you will end up with maybe less than $10-15K. Lets say you have a favorite charity. If you gave them money here is an alternative scenario. The charity gets $20 K which is guaranteed to turn into no less than $21 K by the end of year one. You get no tax increase, you get no tax penalty, you are entitled to a tax deduction for your donation and you don't increase your income reducing your tax liability and not increasing the income subject to Medicare tax, or OBAMACARE Taxes. This is just one of a number of possible financial scenarios that you, your tax preparer and I can establish. This sounds like a WIN-WIN scenario!
If this is interesting to you lets talk.
Wednesday, October 23, 2013
Monday, October 21, 2013
What is going on with OBAMACARE?
Here are some interesting figures on OBAMACARE week 1
Visitors to Healthcare.gov website 9.47 Million
Number of visitors to the Individual Marketplace 5.68 Million
Number who attempted to Register 3.72 Million
Number Who registered to set up account 1.01 Million
Number of people who managed to Log in 271 K
Number Who began enrollment 196 K
Number who completed Enrollment 36 K
Lets see about 1% of those who attempted to register actually we able to enroll
Like every BIG GOVERNMENT program the screw up and cost overruns are the Largest parts of the program cost.
In some ways progress is being made there are now somewhat close to 500K enrolled.
My question is how many of them had insurance through their companies before OBAMACARE became the law of the land?
Another key question is how many of the 9.47 million visitors have had their hours cut from full time to part time because of OBAMACARE?
How many of the new jobs created in the past year are really the result of Full time jobs with benefits being turned into 2 part time jobs without benefits?
Unfortunately no one is talking about these numbers!
Visitors to Healthcare.gov website 9.47 Million
Number of visitors to the Individual Marketplace 5.68 Million
Number who attempted to Register 3.72 Million
Number Who registered to set up account 1.01 Million
Number of people who managed to Log in 271 K
Number Who began enrollment 196 K
Number who completed Enrollment 36 K
Lets see about 1% of those who attempted to register actually we able to enroll
Like every BIG GOVERNMENT program the screw up and cost overruns are the Largest parts of the program cost.
In some ways progress is being made there are now somewhat close to 500K enrolled.
My question is how many of them had insurance through their companies before OBAMACARE became the law of the land?
Another key question is how many of the 9.47 million visitors have had their hours cut from full time to part time because of OBAMACARE?
How many of the new jobs created in the past year are really the result of Full time jobs with benefits being turned into 2 part time jobs without benefits?
Unfortunately no one is talking about these numbers!
Wednesday, October 16, 2013
Are you prepared for retirement Poll
Today I'd like to stare a retirement poll. Everyone is welcome to participate either through a comment here on the blog
or with a telephone vote #614-264-3864
or an email financial-services@live.com
I will compile the comments and votes and share them in a blog post
When It Comes To Being Ready For Retirement I feel that I am...
A) Right on Track
B) I was right on track until 2008-2009
C) May fall short on my income needs
D) Have no idea where to start or who to turn to
Knowing where you are going to finish at the end of the race requires knowing where you are at the start of the race. Today is the Start of your Retirement Race. Some of you still have an ultra marathon left, some have a regular marathon left, some have a 5K race and some of you only have a 100 meter dash left. Wherever you are in the race today everyone can use some help or at least a review.
If you were to retire today how much lifetime income would you be able to guarantee?
or with a telephone vote #614-264-3864
or an email financial-services@live.com
I will compile the comments and votes and share them in a blog post
When It Comes To Being Ready For Retirement I feel that I am...
A) Right on Track
B) I was right on track until 2008-2009
C) May fall short on my income needs
D) Have no idea where to start or who to turn to
Knowing where you are going to finish at the end of the race requires knowing where you are at the start of the race. Today is the Start of your Retirement Race. Some of you still have an ultra marathon left, some have a regular marathon left, some have a 5K race and some of you only have a 100 meter dash left. Wherever you are in the race today everyone can use some help or at least a review.
If you were to retire today how much lifetime income would you be able to guarantee?
Monday, October 14, 2013
A very interesting study about the american majority.
A study reported on Meet The Press indicated that the Majority of American voters DO NOT favor or support the Radical Democrats or The Radical Republicans. Even if you add both parties RABID Followers and mix them together you do not have a Simple Majority!! The Majority are in the middle!!! Its time to clean house.
The elected officials of both parties seem to be unwilling to work for the electorate that put them in office and therefore they all need to be replaced. If the voters want to see financial responsibility in our government we have to vote out incompetence. Unless and until that is done the economy will continue to be weak and the financial markets will be subject to a bursting bubble! Our weak and fragile recovery and I use the term Recovery loosely is subject to cancellation on a moments notice.
Write to your democratic and republican elected officials and thell them to get to work or prepare to be FIRED!!!
The elected officials of both parties seem to be unwilling to work for the electorate that put them in office and therefore they all need to be replaced. If the voters want to see financial responsibility in our government we have to vote out incompetence. Unless and until that is done the economy will continue to be weak and the financial markets will be subject to a bursting bubble! Our weak and fragile recovery and I use the term Recovery loosely is subject to cancellation on a moments notice.
Write to your democratic and republican elected officials and thell them to get to work or prepare to be FIRED!!!
OBAMACARE Still a mess!
OBAMACARE. Still a dysfunctional disaster!
The government cant keep their websites up and operating. Enrollment partially due too the high downtime of the sites is still very low. The administrate failed to properly prepare for the launch!
they should have tested the site before a national rollout! Oh yes but doing that would require a thoroughly thoughtout plan. Something the government is not very good at.
OBAMACARE is not much beyond a premium discount plan. It does virtually nothing to address
the dozens of factors producing the high cost of healthcare in the US. There is no negotiation on the proce of healthcare services themselves. The Goverrnment including the White House Staff, the House and Senate and all the federal agencies should be included in OBAMACARE. If they were all included and bound by the good and the bad of OBAMACARE maybe just maybe the elected officials who passed the bill might have actually read the bill!!!!!
I am not saying OBAMACARE is all bad. It is not all bad. But the Design has been flawed since its very inception and to claim otherwise is nothing but Administration lies! If you want some unbiased input look at factcheck.org a nonpartisan organization. Both parties lie when they talk about OBAMACARE.
The government cant keep their websites up and operating. Enrollment partially due too the high downtime of the sites is still very low. The administrate failed to properly prepare for the launch!
they should have tested the site before a national rollout! Oh yes but doing that would require a thoroughly thoughtout plan. Something the government is not very good at.
OBAMACARE is not much beyond a premium discount plan. It does virtually nothing to address
the dozens of factors producing the high cost of healthcare in the US. There is no negotiation on the proce of healthcare services themselves. The Goverrnment including the White House Staff, the House and Senate and all the federal agencies should be included in OBAMACARE. If they were all included and bound by the good and the bad of OBAMACARE maybe just maybe the elected officials who passed the bill might have actually read the bill!!!!!
I am not saying OBAMACARE is all bad. It is not all bad. But the Design has been flawed since its very inception and to claim otherwise is nothing but Administration lies! If you want some unbiased input look at factcheck.org a nonpartisan organization. Both parties lie when they talk about OBAMACARE.
Monday, October 7, 2013
Current financial SAFE MONEY opportunities
Here are some current opportunities and ideal candidates
1) pay $119,332 now collect $242,138 in 15 years for a 5% effective yield
perfect for someone trying to fund a child or a grandchild's education
2) pay $113,200 now and collect $250,000 split into 4 payments over 23 yr period for effective 5% yield funding a trust or for some part of a retirement, perfect for a ROTH
3) pay $76,542 now and collect $151,330 with many payments over 27 years for a 5.4% yield
retirement or trust funding
4) pay $3,532 now and collect $62,000 in 43 years for a 7% return
tax free if you use ROTH Funding for grandchild or trust
5) pay $112,800 now and collect $266,750 in payments between 2025-2033
ROTH or 401K plan for someone retiring in about 13-15 years
6) pay $46,000 -70,000 now and collect 8 years of equal monthly payments for a 6% yield
current retiree, or current worker looking for a reasonable but guaranteed rate of return.
7) FDIC Insured variable rate CD. Guaranteed rate of 1% with upside potential of up to 7% annual return on a 7 year CD. Minium purchase price $30,000
These are just some of the interesting opportunities that are available. Pleas contact for more information or to determine if they are suitable for your situation. These are all Safe Money
financial products with no Market Risk of loss of principal. All of these are subject to availability limited time opportunities
1) pay $119,332 now collect $242,138 in 15 years for a 5% effective yield
perfect for someone trying to fund a child or a grandchild's education
2) pay $113,200 now and collect $250,000 split into 4 payments over 23 yr period for effective 5% yield funding a trust or for some part of a retirement, perfect for a ROTH
3) pay $76,542 now and collect $151,330 with many payments over 27 years for a 5.4% yield
retirement or trust funding
4) pay $3,532 now and collect $62,000 in 43 years for a 7% return
tax free if you use ROTH Funding for grandchild or trust
5) pay $112,800 now and collect $266,750 in payments between 2025-2033
ROTH or 401K plan for someone retiring in about 13-15 years
6) pay $46,000 -70,000 now and collect 8 years of equal monthly payments for a 6% yield
current retiree, or current worker looking for a reasonable but guaranteed rate of return.
7) FDIC Insured variable rate CD. Guaranteed rate of 1% with upside potential of up to 7% annual return on a 7 year CD. Minium purchase price $30,000
These are just some of the interesting opportunities that are available. Pleas contact for more information or to determine if they are suitable for your situation. These are all Safe Money
financial products with no Market Risk of loss of principal. All of these are subject to availability limited time opportunities
Tuesday, October 1, 2013
Just Completed OBAMACARE Navigator training
I just wanted to announce the completion of the 5 modules of federally mandated training for OBAMCARE, The Affordable Care ACT, (ACA).
We only had a couple of problems with the training program. The Federal government lost the records for the completion of module one and the successful passing of the test required for module 2. It took about 3 weeks to get the database records corrected to reflect my having passed the tests. I had to seend them copies of the certificates of completion three different times before we got it fixed.
Then for the past 5 days the training website was down and out of service. If this is any indication of what to expect going forward all I can say is WATCH OUT!!!!!! Oh and also the internet security certificates are screwed up on the Training website. This mess really inspires confidence!
We only had a couple of problems with the training program. The Federal government lost the records for the completion of module one and the successful passing of the test required for module 2. It took about 3 weeks to get the database records corrected to reflect my having passed the tests. I had to seend them copies of the certificates of completion three different times before we got it fixed.
Then for the past 5 days the training website was down and out of service. If this is any indication of what to expect going forward all I can say is WATCH OUT!!!!!! Oh and also the internet security certificates are screwed up on the Training website. This mess really inspires confidence!
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