“To accomplish great things, we must not only act, but also dream, not only plan, but also believe.” ~ Anatole France ~
“Experience is not what happens to you. Experience is what you DO with what happens to you. ~ Aldous Huxley ~
Fed Mandates Real-Time Traffic Information… New government rules call for states to provide real-time information about traffic congestion on interstate highways. States have two years to make the information available by phone or online. Within four years, states must provide traffic information for major non-interstate roads in cities, according to the Government Accountability Office. The Association of State Highway and Transportation Officials reports that many states have electronic traffic-monitoring systems already. Others are broadening existing systems or developing new ones. Right now, Nashville is involved in a multi-million-dollar expansion of its traffic monitoring system. It will be completed by the end of 2010. The Tennessee project will double the number of overhead message boards that warn motorists of traffic problems. The traffic information is available at www.tdot.state.tn.us. The Interstate 95 Corridor Coalition has a Web site (i95coalition.org) showing real-time traffic conditions on I-95 from North Carolina to New Jersey. A similar system is in the Upper Midwest for I-90 and I-94. Information is given at www. i90i94travelinfo.com or by dialing 511. The AAA Auto Club says traffic-warning systems can prevent driver frustration and road rage. One truck driver quoted in USA Today says he doesn’t use Internet sites for traffic warnings, but the overhead signs are very helpful. They provide instant information on current conditions. Has The Housing Market Finally Bottomed Out??? Has the housing market has finally bottomed out. Is this really the case? Some experts say yes…but others think that the current uptick in prices is just a quick head fake, and state that some markets still haven’t bottomed out yet. We’ve read a number of articles on the subject, and here’s what various folks are saying. Some people they think that the housing prices are going to continue to decline as a whole, and that we’ve not yet hit the basement in most states. However, these economists warn that there are some states that aren’t close to hitting their bottoms yet, like New York, for example. Other people say that we have mostly hit rock bottom, and the consistent population growth we have in the US, an estimated 10 million or more new people in home buying mode per year will cause the demand to buy homes to be driven up, and thus prices to slowly but steadily increase. New home buyers to the market include new US residents, young adults entering the work force and people who had lost their homes, and over the next few years will have re-established credit and saved enough money for down payments. One of the main reasons several experts who think we still have more price declines ahead of us cite the fact that while home sales have hit rock bottom, prices haven’t.
But, as the prices continue to drop, homes may finally start selling…. (Or at least that’s what they think is going to happen.)
RICK TAYLOR
CERTIFIED RETIREMENT PLANNER, CRP™
CLIENT NEWSLETTER – FOR EVERY LIFE STAGE
March 2010
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Now, some of these pundits state that the recent upward trend in prices has been mostly caused by ridiculously low interest rates and the new and existing home buyer tax credits. These experts say that the market prices are temporarily inflated, artificially, by the government’s manipulation of interest rates and the tax code. We agree that these factors have to be involved at least to some degree in the recent spike in prices in many markets. So are these price hikes just a “head fake”, or are they the beginning of a real turn around? What do you think? States that these experts think have been hit the hardest, and thus have already hit bottom, with prices already dropping as much as 50% are: California, Nevada, Arizona, and Florida. For these “sand states” as they’re called, the bust may be over. On the other hand, states like New York whose price-to-rent ratios are still well above historical norms, the housing crash may still be alive and well in the near term. So what does this all mean? Well, as you can see, there are many opinions, and many logical reasons to back up those opinions. We do know one thing. And that is there’s no way to know for sure. No way to come up with a magic crystal ball and see the future. It is uncertain, but we think that the safest position to take is that prices are somewhere near a bottom and that if you want to buy or upgrade, you are probably going to be buying in the vicinity of the bottom. We don’t even try to guess when any market tops or bottoms are going to happen or switch. Trying to pick exact highs and lows in a market is a sure bet for trouble. But, using some logic and thought, you can say that you’re near a top or bottom, and possibly be able to take action with that in mind can be a sound way to manage your assets! So, now more than ever is the time to start making your plans, and getting professional help in making your decisions on paper BEFORE you take any action! You don’t want to do planning after something has happened. We can and want to help you decide what you should be doing in the context of your financial planning for 2010 and beyond! So please give us a call NOW, before you take any actions. Let’s get your numbers crunched, and squeeze every dollar we can help you put into your pocket! Remember, we HATE hearing about what you just did with your money. We want to hear, “Here’s what we’re thinking about doing…” not that you’ve already done it! We look forward to hearing from you soon!
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Financial Tip of the Month… Want To Sell Your Life Insurance? Life settlement deals are increasingly popular, not always wise.
The idea of selling your whole life insurance for a nice chunk of cash can sound appealing. Here’s how it works.
* A broker will offer you a settlement worth a certain fraction of your policy’s face value, which is generally more than the cash value amount. * The broker then sells your policy to a buyer who will pay the premiums on the policy. When you die, the policy buyer gets the face amount. One example given by Smart Money: A 75-year-old man with $1 million in life insurance might get $250,000 now from a life settlement. The investors would get $1 million when he dies. * For some people, the life settlement is a great choice. If they are struggling to make their insurance payments, if their beneficiary or spouse has died, or if they really need the money, it can be a good move. The life settlement business is growing rapidly. It rose from $2 billion in 2002 to an estimated $18-19 billion through June 2009, according to The Economist. Of life settlements made in 2008, more than half of the policies were less then four years old. * The business is not regulated by the federal government or most state governments. Life settlement companies don’t have to disclose how they value policies, what fees they charge or what commissions they pay. Caution: After a life settlement, you may owe capital gains taxes on the proceeds, and you might not be able to get more life insurance if you need it. Please keep in mind that this tip is designed to be of help for you, but is not to be relied upon as advice. It is merely a reminder that there are many choices you have available to you, and that planning is the only way to find the right answers for your situation! As with any financial issues, make sure you get the right information before making a decision! If you have any questions, we’ll be glad to help you! Rick Taylor, Certified Retirement Planner, CRP™ 800 Columbiana Dr Suite 116 Irmo, SC 29063 Phone: 803-407-9991 Fax: 803-407-4380 Email: rtaylor@gciagents.com Website: www.gciagents.com License Number: 140713
Rick Taylor
Feb 2010
Groundhog Day: Check Phil’s Weather Prediction!
On February 2, Punxsutawney Phil, Pennsylvania’s groundhog extraordinaire, will again stick his head out of his den. The nation awaits his verdict. Groundhog Day is said to have its origins in ancient weather lore where the prognosticator was often a badger or a sacred bear. In the United States, its origin is said to come from a Pennsylvania German custom.
If Phil, peeking from his burrow, fails to see his shadow, winter will soon be over. If the sun happens to be shining and Phil sees his shadow, winter will continue for six more weeks.
The first trek to meet with Phil began in 1887.He has been emerging from his burrow in Pennsylvania ever since, always eager to greet his public. Phil is private in many ways, but a few rumors have circulated about him.
*He gets his longevity from drinking the “elixir of life” of which he takes one sip every summer during the Groundhog Picnic. This gives him seven more years of life.
* It is said he is named after King Philip, a famous Native American leader. In his more plebeian days, he was called Br’er Groundhog.
* He speaks only in Groundhogese, which luckily is a language understood by the President of the Inner Circle. The Inner Circle provides for Phil during the year, rather like a court provides for its king.
The city of Punxsutawney offers several days of celebration for those who gather from around the world to hear Phil’s proclamation. The city offers food, music, carriage rides, magicians, crafts and games.
Some Thoughts About Our Tax Nightmare
With all this “Tea Bag” movement going around the country, we thought we’d take a look at some other issues relating to taxes and the scope of the money involved. Since the 2008 and 2009 bailouts the word “Billions” seems to not mean anything any more. Now “Trillions” is the unit of measurement they think about.
So the next time you hear a politician use the word “Billion” in a casual manner, think about this: A billion is a difficult number to comprehend, but we did some calculating, and put that figure into some perspective:
A. A billion seconds ago it was 1978.
B. A billion minutes ago Jesus was alive.
C. A billion hours ago our ancestors were
living in the Stone Age.
D. A billion days ago no-one walked on the earth on two feet.
Speaking of taxes, here’s a poem we got from a friend:
Tax his land,
Tax his wage,
Tax his bed in which he lays.
Tax his tractor,
Tax his mule, teach him taxes is the rule.
Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.
Tax his ties,
Tax his shirts,
Tax his work,
Tax his dirt.
Tax his tobacco,
Tax his drink,
Tax him if he tries to think.
Tax his booze,
Tax his beers,
If he cries,
Tax his tears.
Tax his bills,
Tax his gas,
Tax his notes,
Tax his cash.
Tax him good and let him know
That after taxes, he has no dough.
If he hollers, tax him more,
Tax him until he’s good and sore.
Tax his coffin,
Tax his grave,
Tax the sod in which he lays.
Put these words upon his tomb,
‘Taxes drove me to my doom!’
And when he’s gone,
We won’t relax,
We’ll still be after the inheritance TAX!!
We liked this poem, even though it’s funny on one hand and sad as hell on the other hand.
We also went about looking up different taxes we have to pay. Here is just a partial list. We didn’t list them all, but when you look at this list, it should make you mad. It makes us plenty mad. And sick. There’s no way to reduce almost every tax on this list if you’re subject to them. Which is not true of income and some estate taxes (if they bring them back) which can be reduced legally. Anyway, check this out:
Accounts Receivable Tax
Building Permit Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges (tax on top of tax),
IRS Penalties (tax on top of tax),
Liquor Tax,
Luxury Tax,
Marriage License Tax,
Medicare Tax,
Property Tax,
Real Estate Tax,
Service charge taxes,
Social Security Tax,
Road Usage Tax (Truckers),
Sales Taxes,
Recreational Vehicle Tax,
School Tax,
State Income Tax,
State Unemployment Tax (SUTA),
Telephone Federal Excise Tax,
Telephone Federal Universal Service Fe e Tax,
Telephone Federal, State and Local Surcharge Tax,
Telephone Minimum Usage Surcharge Tax,
Telephone Recurring and Non-recurring Charges Tax,
Telephone State and Local Tax,
Telephone Usage Charge Tax,
Utility Tax,
Vehicle License Registration Tax,
Vehicle Sales Tax,
Watercraft Registration Tax,
Well Permit Tax,
Workers Compensation Tax.
Not one of these taxes existed 100 years ago, and our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids. What happened? As Mr. Rogers used to say, “Can you say ‘politicians?’”
So, since income taxes are one of the few taxes you can LEGALLY reduce, in order to pay the lowest amount of taxes legally possible, you need to take action right away! Now, at the beginning of the year.
Now more than ever is the time to start making your plans, so that you and your family pay the least amount of taxes…and are prepared to manage ALL your finances the best way for your family. PLANNING is the key.
Please don’t try this at home. Planning is NOT a place for amateur night. We can help you decide what you should be doing in the context of your financial planning for 2010 and beyond!
Remember, we HATE hearing about what you just did with your money. We want to hear, “Here’s what we’re thinking about doing…”, not that you’ve already done it! We look forward to hearing from you soon!
Financial Tip of the Month…
The first-time home buyer tax credit of up to $8,000 is still in place. The extension of time by Congress also includes a new credit of up to $6,500 for certain repeat home buyers.
The first-time buyer credit is essentially the same as the original credit, which expired in November. The buyer can’t have owned a home for three years, and a home can’t be bought from a parent, grandparent, child or grandchild. Buyers can claim the credit on either 2008 or 2009 tax returns. If they don’t owe enough tax to qualify for the $8,000 credit, they will receive a check from Internal Revenue for the amount between what they owe and $8,000 or for $8,000 if all taxes are already paid. New provisions:
* For purchases made after November 6, 2009, no credit is available for any home costing more than $800,000.
* Taxpayers who lived in their homes for five consecutive years or more can qualify for a tax credit of 10 percent of the purchase price, or a maximum of $6,500. The new home doesn’t have to cost more than the old one.
* Income limits for buyers are more generous. For single filers, the credit phases out between $125,000 and $145,000 of modified adjusted gross income. For married couples, the range is $225,000 to $245,000.
* Buyers must be 18 or older and can’t be a dependent on someone else’s tax return. And buyers must show proof of purchase to qualify for the credit.
* The credit must be for purchase of a principle residence. It can be a house, condo, semi-attached townhouse, or (if it has eating, sleeping and toilet facilities) a boat, motor home or trailer.
* Members of the military have an extra year to use these credits.
Visit federalhousingtaxcredit.com for more information.
Please keep in mind that this tip is designed to be of help for you, but is not to be relied upon as advice. It is merely a reminder that there are many choices you have available to you, and that planning is the only way to find the right answers for your situation! As with any financial issues, make sure you get the right information before making a decision! If you have any questions, we’ll be glad to help you!
Rick Taylor, Certified Retirement Planner, CRP™
800 Columbiana Dr Suite 116
Irmo, SC 29063
Phone: 803-407-9991
Fax: 803-407-4380
Email: rtaylor@gciagents.com
Website: www.gciagents.com
License Number: 140713
