By Edward Leone Jr. CFP RFC RIA MBA DMD
Contact Information: 303-478-6793 edleonedds@gmail.com
Going without health insurance will cost you more at the time you file your taxes. For 2017, under the Obama Care law, your penalty will be $695 or 2.5% of you income, which ever is greater. Quite a hit! Be aware also that the Social Security wage base for 2018 is rising to $130,500, an increase of $3,300 from the current level.
The lower than expected jobs report for August along with a slight increase in the unemployment rate along with the reporting of still very modest inflation, will give the Federal Reserve Bank and excuse not to raise interest rates in my opinion. It is clear that the Federal Government will have to borrow more money to address the disasters which have occurred in Texas and Florida. If Government can do this at a low-interest rate, this will be favorable to servicing debt.
More to know about your Required Minimum Distribution, if you are 70 1/2 or older and have a tax deferred retirement account such as an IRA or 401K. If you miss the timing on this RMD, the amount not withdrawn is taxed at 50%. This penalty may be waived if there is a demonstration of reasonable error in the lack of timely distribution. The individual subject to such a penalty must file form 5329 and demonstrate that an attempt to remedy the shortfall is in progress.
Another consumer issue which is quoted in the media from time to time is the need to know and improve your FICO score. The perfect score is 850 and held by only 1.4% of the population while the average score is 700. The most advantageous territory is a score of 800 or above since this score is used in determining qualification for loans and the interest level to be paid.
There is movement on the initiative of the Department of Labor and the Security Exchange Commision to further protect investors safety of asset management by financial advisors with expansion of the Fiduciary Rule. A Fiduciary under ERISA is an individual who exercises discretion over management plan assets or IRA assets, renders investment advice for compensation or has discretionary authority over the management or administration of an investment plan. The Fiduciary has a duty of prudence and a duty of loyalty to the investor and must avoid self dealing, dual representation with a party dealing with the investors plan, acceptance of third-party payments and must act always in the best interest of the client. Keep these qualities in mind when dealing with a financial advisor, an insurance agent or a stock broker.
Keep in mind the plight of those exposed to the severe storms occuring in Texas and Florida!!
For The Record:
NASDAQ 5,918.75
DJIA 21,819
S&P 500 2,462.50
Suggested Reading: ” Quantitative Momentum ” By Gray and Vogel
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