The FED Taper Talk, What It Means

By Nick Bautista

Last week the FED announced that they would begin to ramp down their bond purchases. Instead of purchasing $85 Billion in Treasury bonds they will now be purchasing just $75 Billion.

What this means is the FED is finally feeling confident enough to let the economy begin to stand on it’s own feet. As the FED meetings have become more popular than the stock market gains themselves, this change was inevitable. We thought it might happen sooner and with the recent events; job unemployment fell to 7% from 7.3%, congress was able to pass a bipartisan budget agreement to fund the government through the next two fiscal years, housing has been constantly building momentum, it appeared to the FED a good time to begin to Taper. Today’s number only solidified this when GDP third quarter number was revised up to 4.1%.

As a result of the taper the market has since soared to new highs. The new highs may have seemed opposite of what should have happened, due to the inevitability of the taper, the markets seemed to already have the announcement priced in. 

Overall it seems to be the right decision from the FED, a decision that could have come earlier in my opinion. The FED hasn’t completely given up control, as the interest rate remains unchanged, the FED still has the ability to help aid the economy if something drastic were to occur. For now though, they are content while they watch for continued improvement in the economy. It is clear the economy has been improving and again it becomes inevitable until the FED begin to taper further ultimately raising interest rates.

5 Simple Ways To Help Save on Your Taxes

Presented by Nick Bautista

As the end of 2013 is quickly approaching, there are several ways to help reduce your taxes before the year-end. I don’t know about you, but I don’t like paying more taxes than I have to. Think about these tips, and ask your CPA or tax professional before the end of year what they think about implementing any of these ideas:

1. Roth contribution – Not so much saving on taxes now, but by saving money into a Roth IRA, (preferable in a low tax bracket) with after tax money which means since you have already paid taxes on the money it will grow tax free and come out tax free in retirement.

2. Roth conversion – Same idea above except if you are in a higher tax bracket and aren’t allowed to contribute to a Roth, or if you have IRA money and you are in a low tax bracket a Roth conversion is a great way to pay taxes now and get tax free withdrawals/growth in retirement. For example if you are normally in a high tax bracket but you had a lower income year, converting an IRA to Roth could be a great move.

3. Realize losses – In a taxable account, (non-retirement account) you can realize losses up to $3,000 each year as an above the line deduction to your gross income. You must realize losses before 2013, and in order to realize a loss, you cannot sell and buy back the same/similar position within 30 days before or after the sale.

4. Max out your company retirement plan – You still have time to adjust your 401k contribution to contribute as much as possible to your employer plan; this will not only lower your taxable income, but it will lead to tax-deferred savings. This can work well for high earners.

5. Adjust your Withholdings via your W4 – By now you should know what your pay looks like for 2013. You can submit a new W4 to your employer if you are projected to over withhold on your taxes. By having less withheld on your paycheck, you can get more income now, instead of getting a refund later when you file your taxes. It also may be a good time to calculate your 2014 withholdings.

There you have it, 5 simple strategies to help save on taxes.

Please Note: All these strategies should be discussed with your CPA , tax professional or financial advisor. This is not advice to do any of the above without speaking to a professional regarding your specific situation.

Year-End Financial Planning

Presented by Mark Phillips

With the end of the year quickly approaching, it is a wonderful time to begin organizing your finances for the New Year. We’ve put together a list of important financial planning topics that warrant consideration.

Flexible spending accounts
Money that you’ve put away in your flexible spending accounts (FSAs) generally must be used by year-end or it will be forfeited. Recently, however, the IRS modified this rule to allow participants to carry over up to $500 of unused funds into the next year. Your employer plan must elect to participate in this option, so be sure to check your plan terms to see if you can take advantage of this new rule.

If your employer has not elected this carry-over option, now is the time to schedule those doctor’s appointments you’ve been meaning to attend to or to stock up on items that are eligible for flexible spending. Doing this as soon as possible may help relieve some last-minute headaches and ensure that you don’t lose your hard-earned dollars.

Additionally, open enrollment begins around this time of year for certain employee benefit plans. So if you’re not using an FSA, take stock of your average expenses that would qualify. This can help you determine whether setting up an FSA for 2014 makes sense for you. If you already use an FSA, assess how much extra you have left in the account or how much of a deficit you ran and use it to calculate your allotment for the New Year.

Medicare enrollment
Open enrollment for Medicare started in October and ends December 7, 2013. For many, this is the only chance to change health and prescription drug coverage for 2014. If you want to make any changes, act now.

Too little or too much withholding.
Also of note is that workers with gross earned income of more than $200,000 may have had too little or too much tax withholding in 2013. Employers may have withheld an additional 0.90-percent tax on incomes over $200,000 without regard to the taxpayer’s withholding status, which would put these taxpayers at a higher threshold. Other taxpayers may have had too little withholding because of other income unknown to the employer due to second jobs. Employees should plan to take a credit on their returns or pay additional taxes.

Consider seeking professional guidance
The above list of financial planning dates is not exhaustive. We are happy to go over deadlines that are most relevant to your personal situation, so you can better prepare for the coming year.
Whatever your planning may entail, we wish you a happy, healthy, and prosperous 2014!

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

IRS CIRCULAR 230 DISCLOSURE:
To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

Since When Does Christmas Come Before Thanksgiving?

By Nick Bautista

As I walked through stores this past weekend, I realized that as a country we have completely forgotten about Thanksgiving. No longer do we think about turkey or giving thanks, instead we worry about where to find the best deals to get our shopping done early for Christmas. Not only do we buy gifts for others they probably don’t need, but we string up Christmas lights and decorations by the second week in November. So what gives?

When as Americans did we get so caught up with the next best thing that we can't stop for one minute to give thanks for the things we already have. I thought we valued humility and working hard for success yet we don’t give thanks when we achieve those things. Instead, we bypass those values to give the most awesome gift ever. Do you even remember the gift you were given last year or better yet the year before? How meaningful was that gift as opposed to spending time with the person who gave it to you?

But forget all that we need those deals!!

I was always taught to be thankful for the things I have, because you never know when you might not have those things again, so I’ll make it simple:

Do you have shelter?

Do you have food?

Do you have a job?

If you answered yes to any of the above you have plenty to be thankful for.

Let’s not forget Thanksgiving, instead let's embrace those things we often forget that are provided to us daily, which is the friends and family who support us.

Happy Thanksgiving!

PS. I love Christmas

Tax Refund Scammers Are Starting Early This Season

As part of our ongoing efforts to help keep your personal information as safe as possible, we want to remind you to stay on the lookout for the many e-mail, text message, and voicemail scams making the rounds in cyberspace today.

Tax return scammers are starting their season early! Recent fraudulent activity has involved e-mails and phone calls claiming to come from the IRS regarding tax refunds. Some fraudsters have been asking for sensitive refund information over the phone or using e-mails stating that someone has filed for the recipient’s refund and that he or she needs to click a (malicious) link if he or she did not file for it. Common characteristics of the scams include:

· The criminal may use a fake or common name and make up taxpayer identification information.
· The scammer may know certain information about the recipient, such as the last four digits of the recipient’s social security number or personal e-mail address.
· The scammer may spoof his or her phone number so that appears to be the IRS’s toll-free number and mimics actual IRS calls—complete with phone conversations going on in the background.
· The criminal may follow up phone calls with e-mails to appear legitimate.
· The scammer may threaten the recipient and scare him or her into falling for the scheme. Such threats may include driver license revocation, pretending to be a police officer, and so on.

Any phone calls or e-mails regarding your tax refund or that contain the characteristics listed above should automatically raise a red flag. Do not provide any information to the caller, click on any links, or open any attachments.

What to do if you receive a suspicious e-mail or phone call
If you receive an e-mail or phone call asking for information regarding your tax refund, please delete it from your inbox immediately—or hang up on the caller—and don’t click on any links, open any attachments, provide any information, or reply to the sender. Links and attachments could potentially install malicious software onto your computer, and the sender or caller could use your personal sensitive information to steal your identity or actual tax refund.

Protect yourself
Keep in mind the following if you receive any suspicious phone calls or e-mails regarding your tax return:

1. As noted above, don’t click on any links or attachments within an e-mail.
2. Do not provide any information to the sender or caller if it is asked for. Immediately hang up or delete the e-mail.
3. Call the IRS at 866.562.5227 if you are unsure of the legitimacy of an e-mail or phone call.
4. Prepare and file your tax returns as early as possible. This will take away the scammer’s ability to file and steal your return. This will also help you in detecting whether a call or e-mail is fraudulent or not. If someone claims you need to provide him or her with information to file your return, and you have already filed your return, you will know that the request is fraudulent!
5. If you access a dangerous attachment or link, and believe a password-stealer is running on your computer, get in touch with a technology specialist.
6. All unsolicited e-mails concerning password or account changes to any of your online accounts—especially unsolicited e-mails that contain attachments—should be considered scams until verified. Open a new browser and log in directly to the account in question to check the situation.
7. Refer to the IRS’s “Dirty Dozen Tax Scams for 2013” to get the 12 most common scam types that have seen going around.


Rest assured that we are always concerned about information security. If you have any questions, please contact us at 949.333.6394

Healthcare- What You Need To Know

Presented By: Nick Bautista

It's that time of year. The time when you must select your health care plan for next year.



Being that the open enrollment period is upon us for employers it's good to review the basics of what Health insurance coverages mean. With all the recent changes in Health Care you may be thinking what happens to your health insurance as you go to choose a plan for 2014.

Well... Not much, as the employee based plans won't see much change. But maybe you are asking, what they heck do all the health coverages mean again, I don't know which one to choose?

Know the basics

Deductible - The amount you pay the insurer to start insurance coverage for whatever you need. For example if you have a $200 deductible and need a $10,000 surgery of which your insurance will cover 80% of the cost, then you would have to pay your deductible before the insurance company started paying their 80%.

Coinsurance amount - is the amount the insurance company splits the cost with you, which is usually 80/20, meaning your insurance company will pay 80% of the cost while you cover the 20% after the deductible is paid.

Maximum Out of Pocket - The maximum you will pay for any procedures (surgeries, the like) after the deductible. In the previous example if your maximum OOP was $1,000, after you pay the $200 deductible you would be responsible to pay 20% (co-insurance amount) but would only pay up to your maximum Out of Pocket, which would be in this case $1,000.

Premium - Cost of coverage, either you pay, your employer pays or you share. This is usually a monthly cost.

Copay- The amount you pay when you visit a Doctor.

HMO – think of a gatekeeper. You must visit your primary doctor to have access to other specialist, through a primary doctor referral

PPO – Go direct to the Doctor, no gatekeeper.

Knowing these basics give you a better idea on which insurance to choose. A rule of thumb is that if you are young and healthy a high deductible is likely best being that you won't have much need to see a Doctor as would a 60 year old. Keep in mind that if you do have a high deductible then you should have the cash in reserves, if you did have a health event, to pay for the high deductible cost.

One last thing to do is call your primary doctor before you switch coverages so that you know they will accept your new insurance. Don’t let health insurance and the new laws scare you, give us a call if you have questions.

Who’s Rich Anyway?

Presented By Nick Bautista

Think about this, in the US the top 20% households make $107,628 annually. If your networth is more than $415,700 you are also in the top 20%. Here is the total breakdown:

Household Income Annually
Top 1%	$521,411
Top 5%	$208,810
Top 10%	$148,688
Top 20%	$107,628

Household Net Worth
Top 1%	$6,816,200
Top 5%	$1,863,800
Top 10%	$952,200
Top 20%	$415,700

WSJ: 2012 data from Tax Policy Center
 

To put this into further perspective what is considered the poverty line for a two person household is $15,510. Meaning that a two person household making $46,530 makes 300% more than someone in poverty.  (http://aspe.hhs.gov/poverty/13poverty.cfm)

So who is rich anyway? This week I was reminded that the little things in life are what matter most. I read an interesting article about Brett Favre. When asked if he would return to the NFL with all the injuries to key quarterbacks, he simply said no. A man who made millions upon millions (top 1%). He thought he put his family on hold for 20 years and couldn’t stand the idea of putting them off any longer and he gets to fulfill being with them doing the things he loves, which actually isn’t football related. I found that refreshing, that someone who was defined by their work became something more, a father. No matter how much money he made he ultimately valued the things money and fame couldn’t buy.
 

What are you striving for today, this week, or in life? Do you have more than you need, or do you constantly need the next best thing? We all, including myself need to be reminded that what we have is enough. Don’t let money rule your life, for you might find out it’s not that satisfying.

 

Brett Farve article: http://espn.go.com/nfl/story/_/id/9872646/brett-favre-return-sources-saying-rams-reached-out

From A Six Figure Salary To Minimum Wage: A Story Of Bad Planning

Presented by Nick Bautista

Sometimes the stories we hear can mean more than words we read from any text book. Such is the case for Tom Palome. A man who was an executive earning a six figure salary most of his lifetime and now has to work two minimum wage jobs due to inadequate savings.  I define the unretired 77 year old as a failure to plan. He had a total of $90,000 saved for retirement. All I can think is, really? Of course, he can still enjoy life but how would you like to live to 77 and be flipping burgers instead of pursuing the dreams you have had your entire life?

To me it comes down to the most fundamental question of all. How much do you need in retirement to live the life you want to? As of 2011 the median retirement account had a value of $120,000. So tell me how that works for 30 years in retirement?

Maybe Tom Palome can help you get a better picture of what that looks like. Read the entire story here…

http://www.businessweek.com/articles/2013-09-26/former-executive-tom-palome-spends-his-retirement-flipping-burgers

Who Is Your Go-To Person For Financial Advice?

Presented by Nick Bautista 

Have you ever thought about the people in your life who you turn to for financial advice? Think about that for a minute. When you have a financial question, who do you call or text, and why? Is it because you perceive them to be smart, or wiser than you? Or is it simply because you believe they have the experience to handle your similar situation.

Whatever and whoever you listen to when making your financial decisions, there is one thing you should know. It goes back to the old saying you used to hear when you were a kid. “If Johnny were to jump off a bridge would you do jump too?” Although a ridiculous analogy for following what others do, the message is clear. Why do we blindly follow the advice from someone who doesn't necessarily know or understand our financial situation?

Okay maybe this doesn't hit too close to home or is just too simplistic. So instead, think of the first person you would ask if you had/needed medical attention, a gaping wound, would your parents or best friend know if you needed stitches and be able to do it right then if you did need them. Of course not, you would go see a doctor immediately. So why is it that in our financial need we turn to those who do not understand our situation?

Everyone agrees that finances are extremely important yet we automatically assume those around us with little or no experience can help us with our questions. No one financial situation is the same. Let me repeat that so it sinks in, no one financial situation is the same. Just ask any doctor and they will tell you how no one patient is exactly the same.  

So again I ask who do you ask for financial advice? How much experience do they really have and is it the exact same or similar situation you are in? If the answer is yes, then think one step further. Does your financial friend know if you should do a Roth Conversion or how much you should defer in 401k contributions to save on taxes now? Do they know how much you can contribute to your retirement in a given year based on your retirement plan? Do they understand the history of the stock market or the correlation between asset classes in a given time period, knowing what your allocation should be based on your age and amount saved already? Do they know your goals, and what the money is needed for in order to invest it in a suitable place? Do they know the effect on your retirement plan for buying that car or house you are thinking about?

If your answer is no to any of the above you are getting poor advice and ultimately the wrong answer. While your wound may be okay without stitches you don’t want to find out 30 years later you really needed them, or more importantly you were given the wrong financial advice and your retirement plan is now underfunded to meet your goals.   

10 Facts About Obamacare & How It Will Affect You

Presented by Nick Bautista

August has ended and we have four months until Obamacare goes into effect. So what is Obamacare?

The overall goal is to provide affordable health insurance for all U.S. citizens and reduce the growth of health care spending. Obamacare does not replace private insurance, Medicare , Medicaid or employer sponsored plans. Instead look to see small changes in the insurance landscape via these 10 facts:

      1. Starting January 1^st 2014, insurance will be sold on health insurance exchanges, although you can still purchase an individual plan through health insurance companies (through a broker)
2.    With the new exchange each state will now be responsible for its own health insurance marketplace
3.    Summary of benefits and coverage- will make it easier to compare cost for common items such as having a surgery, having a baby, etc.
4.   Already in effect but, kids under 26 are able to be on their parents health plan (whether they are married, living with them or not, full time student)
5.   No-cost preventive care coverage- get screenings, physicals, vaccinations at no cost (this may not be available on grandfathered policies)
6.   Already starting in August is the women’s preventive care services, which gives care to women for birth control, STI screenings and breast feeding. Also insurers can’t discriminate based on gender.
7.    No pre-existing condition limits in 2014. You cannot be turned down from individual plans for having a pre-existing condition. Note this doesn’t apply to group plans as group plans cancel out any pre-existing conditions you have.
8.   Medicare is working to close the gap on Medicare part D coverage. The program is meant to help you pay less for brand name prescriptions in the coming years.
9.    In 2014 you must have health insurance or you will be penalized, $95 per adult, $47.50 per child, up to $285 per family or 1% of your taxable income. (whichever is greater)
10.  Can’t afford insurance, there will be credits or subsidies for buying health insurance based on your income, based on these provisions: You're an individual making $14,856 to $44,680 or a family of four making $30,656 to $92,200, and You don't get coverage at work or have access to affordable coverage (meaning your plan costs more than 9.5% of your income).

Feel free to look at the Anthem Insurance website for more information, or contact me at nick@phillipswealthmanagement.com with any additional questions, comments or concerns.

Aim To Retire Comfortably, No Matter How Much You Make

Presented by Nick Bautista

When thinking about saving for retirement it is often forgotten that even if you don’t make a lot of money, you can still retire comfortably. Building saving habits and spending less than you make are some of the keys to success.

Too often I see young people not save any money when they get out of College, and this is usually the slippery slope to bad savings habits. The temptation to spend every penny made is so high that a majority of them don’t start saving until it’s too late. This unfortunately continues into adulthood as the thought of savings gets pushed to the side for a variety of reasons, (house, car, kids, kids’ college, etc.)

The principles for pursuing a comfortable retirement boil down to two simple rules.

         1.  Spend less than you make

         2.   Set aside money every paycheck no matter how much it is.

Doing both these things can help create good saving habits and help you get better aligned with your financial dreams.

So, think about how much are you saving in retirement; are you spending less than you make?

What It Means When Cities Go Bankrupt

Presented By Nick Bautista

With the recent news of Detroit filing for Chapter 9 bankruptcy and more closer to home the California cities of Stockton, San Bernardino, and Mammoth Lakes, the question remains, what does it means for a city to file for bankruptcy?

The law is pretty clear on what bankruptcy is and sets forth 4 eligibility requirements for filing for Chapter 9 which are found on the courts website. http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter9.aspx.

All bankruptcies are different, and as such it is hard to compare bankruptcies to one another.

 But, basically it comes down to the city not being able to pay the debt that the municipalities have agreed to.

On the one hand it seems odd that cities file for bankruptcy when they will always be able to tax their citizens. Cities get funding from taxing our properties and sales tax on goods. Problems though arise when all those revenue streams dry up as they did in 2008. Property values dropped and people needed to save more, both of these things negatively affecting city revenue.

So what happens to the citizens in the city? Well, most of the cuts that come out of bankruptcy are to government and public workers. A lot of the reason these cities are bankrupt is due to pensions that cannot be sustained due to their high payout assumptions and returns needed to meet those payouts. With interest rates so low, the projections made aren’t sustainable. So, the first thing to get cut is pension benefits or public worker hours.

In terms of people who live in the city life goes on. They don’t really notice dramatic changes, although change is likely to happen. In short Bankruptcy is never good, but then again, it brings on the option of the city to start anew and hopefully become better for it.

Why Are You Listening To The News?

Presented by Nick Bautista

Marketwatch had a bad headline the other day. “Key Market Indicator Now Generating a sell signal.” The article goes on to describe an indicator that was created in the 1970s and is used to supposedly tell investors when to buy and sell. The indicator looks at companies that make up the index and creates a spread based on the companies who are reaching their highs along with companies reaching new lows. If the indicator sees that companies are moving to these highs and lows it can predict where the market is heading.

Not but two days later the same author came out with this article, “Buy and hold strategy wins again.” Both articles were big type, front section headliners and the content inside couldn’t be more polar opposite. (BTW the author is Mark Hulbert)

If you are listening/reading the majority of investment news you are making a poor decision. News companies are in one business, the get viewers business or more specifically the entertainment business. Sure the numbers are factual for stock prices and the like, but does Mark Hulbert have your specific and best interest in mind? Of course not, no financial advisor would have such a short term outlook, let alone flip strategies from sell, to buy and hold.

The news will always be entertaining because that’s how they make money, but in truth they don’t have your best interest in mind. Think about your emotions related to your money, are you letting the news dictate what you are feeling? If so, you need to stop listening to the news and start listening to your advisor. Your advisor should know your specific situation and can help you secure your financial future through financial planning.  

Spending on Healthcare: How does the US and other countries compare?

Presented By Mark Phillips

How do we do at getting health care here in the US and do we get a good deal compared to other countries?

Based on figures published last week by the Organization for Economic Co-operation and Development (OECD), the overall picture is one in which developed countries spend an average of 9.3% of total income on health care. The below interactive tool will allow you to investigate by country against the overall average for

·         Life Expecatance

·         Health Expenditures

·         Health Risks

What Does The FED Actually Do?

By Nick Bautista

As follow up to my last article on the FED, I figured I would explain what exactly the FED is and does…

Born out of the 1913 Act the Federal Reserve Board was created.

The Federal Reserve System, or more commonly known as the FED was created to carry out monetary policy. The FED is made up of the Board of Governors (7), including the Federal Open Market Committee (FOMC) which is made up of 12 different national banks of which 5 members are able to vote on monetary policies even though the 7 members of the board have the majority.

The objective of the FED is to maximize employment, keep prices stable, and oversee long term interest rates.

The FED has three tools to enact monetary policies to keep inline with their objectives. These are not to be confused with Fiscal Policy. Fiscal policy is enacted by Congress, which is why it is always easier to get monetary policy done.

1. Open Market Operations - Buying or selling treasury securities in the open market. When the FED buys they look to create other buying (liquidity) mainly from consumers. This is the primary tool the FED uses to impact interest rates. More importantly this is currently what the FED is doing. (anytime you hear about the FOMC this is what the committee is discussing)

2. Setting Federal Funds Rate or Discount Rates - Make short term loans, each of the 12 National banks lend to their respective areas. This is bank to bank transactions. When banks are in a bind they need money fast so by keeping rates low, banks can lend a lot or vice versa. This in turn gives those more local banks more or less money to lend to consumers.  

3. Setting Reserve Requirements - Set the reserve required for each bank. This also allows banks to hold more or less in bank reserves, allowing more lending capability to consumers.

In short to see what the FED is doing just follow the money. If the FED is buying, they are trying to stimulate the economy; if they are selling then they are trying to curb the economy from accelerating to fast.

Who Cares about the FED?

Presented By Nick Bautista

The news from notes of the FOMC meeting of possibly, maybe, could be, sometime (you get the idea) ... tapering off their bond purchases seemed to spook investors a couple weeks ago, and the market dropped 4%. Last week, FED Chairman Bernanke spoke about his desire to keep the bond buying program going until the end of 2013, in order to confirm the recovery is strong enough.

The market again reacted, this time it reached fresh gains and recovered what was lost by the wayward notes by what the committee had initially said a couple weeks ago.

Why in these warm summer months of beach going and grilling must we find something to keep us entertained? Have investors stooped so low that they need to read the notes of the Federal Reserve board meeting and react in an irrational way? The answer appears to be yes. But behold this does not have to be you!

To me, it comes back to fundamentals. If you have ever coached or played any sport you know the key to a good/strong player is that person’s fundamentals. The fundamentals in terms of our economy are that the market is becoming strong enough to stand on its own feet. With unemployment dropping and housing the main driver of our recovery increasingly getting better, the economy has been on a steady climb up. The FED appears to be pulling out of the market for this reason.

Instead of obsessing about what the FED will do next, just know they are not supporting our economy because our economy is strengthening which is of course a good thing.   

So go outside and enjoy the nice summer weather. There is no need to read the headlines and let The FED ruin your good time or better yet your financial plan. 

Memory: Is Mine Normal?

Presented by Mark Phillips

How is your memory these days? Do you remember your grocery list from last week or even the name of a friend you met a month ago? In this AARP magazine article, we find that approximately 5.4 million Americans suffer from Alzheimer’s disease, and researchers predict the number will nearly triple by 2050. These should be startling statistics but the good news is there is hope to improve cognitive function with proper rest, nutrition. To read more please click the article link below.

Click here for article

Cash-only Doctors Abandon the Insurance System

Presented by Mark Phillips

There is an interesting trend captured by this CNNMoney article. A small but growing number of doctors are opting out of the insurance system completely and accepting cash only for services. The business proposition offered by insurance companies to doctors is becoming so difficult that this seems to be a growing trend. This is a move that the majority of dentists have already made.

While I have a concern for the impact of high cost Concierge offices, some of the more modest flat fee programs (as reflected in the fees charged by Dr. Nunamaker), when combined with a high deductible insurance plan and an HAS account, may prove much more cost effective and conducive to a healthy doctor/patient relationship.

Please consider this trend and how this might be an opportunity, rather than a threat, to you.

Click here

Preparing to Care for Aging Parents

Presented by: Mark Phillips

Aging can be a tough topic for everyone - both the one going through it and their families. Are bills getting missed and is memory loss starting to show up daily? Although a sensitive topic, there are ways to approach the conversations, one of which is to learn about your parents’ needs and wishes. Please read on to learn more what kinds of questions to ask to yield the best result for everyone involved.

Click here for article

The Diploma’s Vanishing Value

Presented by Tracy Chiu

What should the decision-making process be when it comes to choosing a 4 year college versus a community college? This Wall Street Journal article brings up some good points. Although difficult, it implies that the best approach for a good end result would be to balance picking a major soley based on post-graduation salaries with one’s passion for a field. To help with calculations, there are several websites that allow easy comparisons of the return on college tuition, such as Collegerealitycheck.com

Click here to read further

Stay at Home, with Care

Presented by Tracy Chiu

Nearly 90% of people over the age of 65 said they prefer to live at home as long as possible. You may be wondering what the reasons are. Well, comfort in one’s home is probably a big reason. But there is another driving factor behind this preference- the overall savings is much greater when one chooses to stay at home versus moving to a nursing facility (average cost nursing home ~$80,000/yr.). Thus, this trend will most definitely drive up the demand for aides. Read this article from Money Magazine to learn the three steps to finding the right care at home.

Click here for article

 

The King of Human Error

Presented by: Tracy Chiu

As this article from Vanity Fair points out, Nobel Prize-winning writer and psychologist Daneil Kahneman reveals the kinks of the human mind when it comes to reasoning and making rational decisions. In his new book, Thinking, Fast and Slow, he uses himself as Exhibit A and looks at the psychology and reasoning behind why people who buy lottery tickets also buy insurance and why people are less likely to sell their houses and their stock portfolios in falling markets, as a few examples. Knowing how the mind works (or not) is a great start to hopefully making better decisions in our daily lives.

Read further to learn more.

Covered? Don’t be so sure

Presented by Mark Phillips

Have you noticed a jump in premiums on your Homeowner’s Insurance Policy? Well it’s true- there has been an increase of 69% over the past decade.  What you need to be on the lookout for are the hidden costs when a disaster strikes- mainly the higher deductibles, scaling back of basic coverage, and new restrictions. Don’t miss this and read further to learn more about the reasons behind the increases and what preventative steps you can take to limit your exposure and forgo any big surprises.

Click here for article

A Test that Saved my Life

Presented by Tracy Chiu

Many of you know who Dr. Mehmet Oz is from his well received T.V. show. We can say that Dr. Oz walks his talk. When he turned 50, besides celebrating this big milestone he added this to his list: a routine colonoscopy. Although it is not on anyone’s top 10 favorite things to do, there are many risks for not having this routine test done.  Not having much of the common risk factors for colon cancer, Dr. Oz was shocked to learn they found a type of polyp that sometimes turns into cancer.

Don’t miss this and read further. It could save your life.

“The Test That Saved My Life”

College is Free

Presented by Tracy Chiu

Free online courses are setting the academic world abuzz. A combination of technological advancement and “economic need” are helping to drive this trend. Free online courses are on the rise and receiving a warm welcome. While, as Kim Clark’s article in Money magazine points out, there are still advantages to being in the classroom, one can benefit with online courses by honing their skills, boosting their knowledge, even learning a new hobby.  

One of my favorite websites is www.coursera.org, which offers more than 300 classes from 62 schools. 

Click here to read further and take advantage of all the free courses

 

De-Stuff your Teen

Presented by Tracy Chiu

Raising a child is not only a challenge emotionally but one must consider the financial costs as well. According to the U.S. Department of Agriculture, the care and feeding of the average 15 year old runs about $13,530 per year. With the higher cost of living, this number today is much higher than say 5 or 10 years ago. Besides food costs, teens’ latest clothing and gadgets can put a dent on parents’ savings. What’s the solution? Teaching kids money management and bargain shopping are both essential.

If you have a teen, or soon to be teen, you can’t afford to miss this article…

Click here to read further

How to handle Medical Bill problems

Presented by: Tracy Chiu

Hiring a medical billing advocate was the best decision for an Arizona couple featured in this L.A. Times article. They learned to manage and reduce their overall medical bills from their son’s hospital visit. When faced with the reality of huge medical bills after a health situation, it may be imperative to have an agency like Medical Billing Advocates of America to help sort and understand what the charges consist of and what your rights are in terms of the law.

Don’t miss this. Read further to learn about other helpful resources and how an advocate can benefit your personal situation.  

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Not Another Password

Presented by:  Nick Bautista

Think you have a strong enough password? Think again. Research shows that the most popular passwords are 123456 and password. Although these may be easy to remember, it makes it extremely easy for criminals to hack into your accounts.

Remembering your log in is hard enough with every website requiring them. So what can you do to create a strong password? Here is a link to some of the best practices to take.

Click here for the article

Declining Wealth Brings a Rising Retirement Risk

Presented by Mark Phillips

With equity tied up in homes and facing the switch to defined-contribution pension plans, many Americans have been left short of funds needed for a comfortable retirement, writes Bruce Bartlett in the New York Times.

The statistics are very depressing from a broad view perspective.  Among these is the Median (50^th of 100) Household savings and investments (net worth ex home equity) level.

For more on this impending slow motion “middle class” train wreck click on the title or here.

12 Cognitive Biases That Endanger Investors

Presented by Mark Phillips

Prior to creating the blog site Minyanville, Todd Harrison was an options trader at Morgan Stanley, and then President of Cramer Berkowitz, where he worked as head trader at Jim Cramer’s hedge fund.

Todd has an interesting and quite often unique way of seeing and explaining the world of finance and investing. He has compiled a complete list (at least it seems to me as per my own Confirmation bias) of the 12 unique dangers in thought/behavior to investors.

Here is the full list:

1.      Confirmation Bias

2.      In-Group Bias

3.      Gambler’s Fallacy

4.      Post-Purchase Rationalization

5.      Neglecting Probability

6.      Observational Selection Bias

7.      Status-Quo Bias

8.      Negativity Bias

9.      Bandwagon Effect

10.  Projection Bias

11.  The Current Moment Bias

12.  Anchoring Effect

Check out his explanation and descriptions at: 
12 Cognitive Biases That Endanger Investors

The search for Happiness is not done by direct route…

Presented by Mark Phillips

Emily Esfahani Smith's recent article "There's More to LIfe Than Being Happy"speaks to the pathway to happiness and vitality in our lives. She provides a thoughtful summary of the work of Viktor Frankl and others who have studied the issue of happiness and longevity. Her work on this matter has appeared most recently in The Atlantic.

This may indeed provide great insight into the successful pursuit of happiness and longevity – or it may help confirm what you already believed to be so.

Share and discuss with friends and family freely!

A New Watchdog is Guarding Your Money

Presented by Mark Phillips

Skip Humphrey is probably a name most folks are not familiar with.  His role however is big and important: to protect 50 million older Americans from financial abuse and exploitation. As the head of the Office for Older Americans at the Consumer Financial Protection Bureau (CFPB), he has a lot on his plate.  In the current economic environment, growing elderly population, growth of technology and the internet, the rise of scams targeted towards older Americans is growing.

Please read further by clicking on the link: A New Watchdog Is Guarding Your Money

What Stories Do You Like to Tell

Presented by Mark Phillips

From our favorite illustrator of all things elated to behavioral finance, Carl Richards, comes the latest post of the above title. As with so many of Carl’s insights this is worth our consideration.

We are so easily prone to telling ourselves a story that supports us doing what we emotionally want to do, and then looking for the evidence to justify what we are wanting to or have done. This is an incideous process, it begins happening within us long before we become conscious that our emotions are manipulating our logic centers of the brain.

As always, Carl offers one of his hand drawn pictures…. Enjoy, and allow this to challenge your reasoning for the choices you are making.

Click here or on the title above to access the drawing and article.

Finding Prices of Medical Procedures Getting Easier

Presented by Mark Phillips

It has been nearly impossible for patients to search and compare healthcare prices for procedures & tests. The good news is things are beginning to change. Now there are online tools and pricing sites which will help you to comparison shop before moving forward on a medical procedure or test. In addition to the benefit of price comparisons, some sites also show quality ratings for services like MRI’s, X-rays, and CT scans. Two of these sites are HealthBlueBook.com and SaveOnMedSavical.com.

Please read the LA Times article to learn more …Click here for the full article

Avoiding the Pitfalls of Market Timing

Presented by Mark Phillips

Recent uncertainty due to the fiscal cliff, debt ceiling negotiations, and economic concerns in the U.S. and overseas may have made you reluctant to take on additional risk in the equity market. If you are thinking about moving your investments to cash or making other changes to your portfolio because of ongoing market volatility, you might want to consider the longer-term impact of such decisions, as there are pitfalls to trying to time the market.

Read the full article...Click here.

Buyer Beware: Tips for Safe Online Shopping

Presented by Mark Phillips

Looking for power tools? A vintage Chanel purse? A living-room sofa? Millions of shoppers are bypassing brick-and-mortar stores, as well as their respective websites, in favor of purchasing such items from individual online sellers. For many people, sites like Craigslist and eBay offer a chance to save on everyday items and luxury products, both new and used—all from the comfort of their own homes.

Yet, while online shopping may be a convenient way to find deals and one-of-a-kind items, it’s important to protect your identity and financial information, particularly when dealing with individual sellers. Before you purchase anything listed on an online classified ad, auction, or marketplace site, keep the following precautions in mind.

Read the full article...Click here.