'Congress: SHAME ON YOU!'

57)  Congress: SHAME ON YOU!

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f they were children they would have been given a ‘time out’ or a spanking.  If they were high school or college students, they would have been suspended or expelled.  If they were professional athletes or investment professionals, they would have been evicted and, maybe, banned for life; they, themselves, would have been having hearings.   If they were Employees at Will, they would have been fired.  If they were military personnel, they'd be demoted or even thrown in the brig.  In another country, they may have been overthrown or assassinated.

            Indeed, according to a New York Times columnist, a record number of politicians went to jail in 2012.

            They managed to destroy our credit rating, which made the US Government the safest investment on Earth.  It was thought so due to its power of taxation, never having paid interest late, never having defaulted on a debt, and, loosely, its supposed ability to ‘print money’.  Now there are for-profit corporations rated safer, and their responsibility is to their stockholders!  There's no transparency, and our civil liberties are smothered.  There was the Fiscal Cliff, tax change (the type I expected and to our benefit, but after such bickering) and now the Sequester.   Voters and residents are confused, upset, depressed, disillusioned, and demoralized, and Americans are forming militias and becoming Doomsday preppers.

            It seems as if we’ve switched from one step forward, three steps back, to one slow step at a time.  At least, the stock markets think so.  Employment’s slightly up, we’re most of the way through the winter, some holidays are approaching, and American morale may be a little better.

            But, it's still the other Golden Rule: 'The One with the Gold Makes the Rules'.  Money is so strangely intoxicating.

Many continue to suffer, whether it's not knowing how much tax to have taken out of their paycheck, or about unemployment, or having lost their home due to business & financial collapse or weather.

            Congress has become a childish power struggle, dividing the Union like the Civil War for which our entire society shall pay and suffer.  One of my friends also thinks it's racist.  It’s something we must overcome immediately before it escalates and something horrible happens; they are supposed to be working for us.

            How long are we going to trust them?  How far are we willing to trust them?  We can kick the out at election times.

            Should it return to being a volunteer position like when we were founded?

            When you look at the lists of the cities on Earth to live (based on factors such as happiness, healthcare, infrastructure), it's becoming more plausible to leave the US.  There's a whole community of older brothers and sisters out there from whom we can learn and with whom we can enjoy life.  So many speak English, balance work & play better than we, have excellent technology & infrastructure, are less crowded, and have daily flights to the US.  Some are much less expensive - further bettering your quality of life.

            Do you have a financial plan?

            Who's your Trusted Family Advisor®?

           

www.WomenAndMoney.TV

'And the Winner Is...'

46) Nor 'Easters in New York!   And the Winner Is...

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o Barack Obama is, again, the President.  What does this mean for your money?

            Well, if you have a good financial plan, it will mean only adjustments since a good plan is comprehensive, and allows for flexibility and uncertainty.

            On November 13, 1789, one week after the first Tuesday following the first Monday (i.e. Election Day - although, that very first Election Day was actually held on January 7^th), Ben Franklin quipped, "There's nothing certain in life except death & taxes".  So, it's timely and prudent to explore what parts of the Tax Code affect you, because some taxes are going to have to go up.  (This is a great time to start learning about the US Tax Code by watching SFN's free videos at www.WomenAndMoney.TV.)

            This could be a good year to take previously deferred income and sell anything that will have a capital gain (profit).

            Tax management usually involves doing many small things rather than one big one, so it's important to understand a wide spectrum of issues that affect you.

            Income taxes can eat up anywhere from 10% to 50% of your income.  You can't consistently generate that kind of return from securities (e.g. stocks, bonds, CDs, mutual funds, real estate, gold, etc.).  Therefore, the best, first investment you can make, other than in your financial education, is in tax management.  Saving a guaranteed 10% - 50% is smarter than trying to generate 8%, an aggressive return these days.

            Also, federal estate tax rates can eat up more than 33% of your estate, not to mention state estate taxes!  So you may want to explore the results of death!

            If you have money in a Traditional IRA or 401(k), when you die, it will be exposed to both, income tax, and estate tax!

            This means exploring legal remedies (e.g. estate planning, trusts, charitable giving, re-titling assets, beneficiary designations, etc.) to protect your money from estate taxes, and possibly Medicaid, related to long-term care issues.

            The administrative issues and costs can be as daunting as the tax & financial issues, but well worth it.  It may cost you hours and hours, and tens of thousands of dollars to protect hundreds of thousands of dollars or more.  (However, if you itemize your personal deductions on Schedule A of the 1040 tax return, you may be able to deduct some of these costs!)

            You have a responsibility to yourself and society (if not dependents, loved ones, organizations, etc.) to plan for yourself; it's part of the Social Contract.

            Besides, do you want the government to make decisions for you?  Would you trust an IRS or Medicaid officer who showed at your door, and said, "I'm here to help."?

            So who's the winner in this election?  Will Congress allow the Bush-era tax cuts to expire, changing both income and estate tax?  Will they compromise?  Will they write new tax laws?  Will the laws be retroactive?!  There’s only six weeks left!  And what about the investment markets?

            Is your financial & estate plan up to date?

Who's your Trusted Family Advisor?

           

www.WomenAndMoney.TV