By: Edward Leone Jr. CFP RFC RIA MBA DMD
Contact Information: 303-478-6793 edleonedds@gmail.com
I must express a bit of concern over available information on 2 major legislation efforts in the US Congress. The Replacement for the Affordable Care Act is 1990 pages long. Who has time, including legislators, to read and understand the content? I am not happy with reports and information shared by AARP on this legislation. The Tax Reform legislation passed by the House of Representative this week is not being shared adequately in the media. I have not been able to identify the income levels associated with the new tax margin structure (10,25,35%) to determine after the removal of all tax deductions except mortgage interest and charitable contributions, whether or not it represents a tax deduction or a tax increase depending on earned income. This is an important element of information if anyone desires to make input on this legislative effort. I must also express concern over the tax exempt treatment of assets accumulated in qualified retirement plans such as 401Ks and IRAs. These plans hold about $15 trillion in assets according to the Investment Company Institute. The government gets taxation on distributions after some 30 to 40 years of tax exempt savings, but Congress looks at budget projections over a 10 year horizon. Given the potential tax revenue left on the table as a result of current defined contribution retirement plan structures and the building federal deficits, will Congress change the rules??
Everyone engaged in retirement savings efforts, is faced with 2 large areas of concern- longevity and health care costs. Planning for these difficult to quantify challenges presents significant problems for many. It may very well be that most of us will be engaged in employment past what has been considered normal retirement age. Positives are as the following:
a larger nest egg,
perhaps greater Social Security benefits,
a boost in financial security,
personal satisfaction in contribution to personal and social well-being.
Another area of concern for many is the global effects of inflation on the currencies we use to conduct business and consume products and services since the termination of gold standard based currency values. If you have saved any pre 1965 US coins which have a silver content, be aware that your quarters are worth $2.97 and your dimes are worth $1.19 based on the content of silver in these coins and the current value of silver bullion. A $1,000 stash of either of these coins in 1965 is now worth $23,790 52 years later. HUM, WHERE ARE WE GOING REGARDING THE PURCHASING POWER OF OUR MONEY?
Be sure to use mosquito repellent, but watch the SWAMP closely!!
For The Record:
DJIA $21006.94
S&P 500 $ 2399.29
NASDAQ $ 6100.76
Suggested Reading; “The End of Alchemy” By Mervyn King
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