Dear ,
Welcome to the seventh issue of The Wealth Chronicle, a free monthly newsletter written by Marc Bautis of Bautis Financial, LLC. The objective of each newsletter is to present informative articles discussing the topics of wealth management, investment analysis, and personal finance. If you have any questions or comments about any of the articles, please send them to me. I also maintain a blog containing more frequently updated information at http://www.bautisfinancial.com/blog.
If you think the articles in this newsletter are informative and useful, please forward it to a friend or colleague. If you no longer wish to receive the newsletter you can unsubscribe by clicking the unsubscribe link at the bottom of the page. If you would like to discuss your personal financial situation, I would be happy to offer a free no-obligation consultation. |
Social Security Planning Income and the effect on Social Security benefits
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While working with a couple of clients this past month a couple of questions around Social Security benefits came up that may be of interest to people nearing retirement. Both questions revolved around how income would impact their Social Security benefits
1. One client is planning on taking distributions from their IRA starting next year and wanted to know how the income from the IRA would impact their Social Security benefits. The good news is that only earned income effects your Social Security benefits, therefore any income you collect from your investments or retirement plans will not lower your monthly social security benefit
2. Many retirees are considering working during their Golden years even if it is part time. They may want to keep busy, get paid for a hobby, or try to recoup some of the money lost during the recent economic crisis. One client is about to turn 60 and wanted to know what impact the income he earns will have on his social security benefits. Salary and wages are considered earned income and will have an impact on his social security benefits. If you are under Full Retirement Age (For people born 1943 to 1954, full retirement age is 66), you can earn up to $14,160 without any effect on your Social Security benefits. If you earn over this amount, you will lose $1 of Social Security benefits for every $2 over this annual limit. If you are your full retirement age or older, you may keep all of your benefits, no matter how much you earn. |
Education Planning with 529 plans
The best plan for you may not necessarily be the one your state offers
When choosing a 529 plan to invest in, it is critical you do the research on the different available plans. There are over one hundred 529 plans in the country and each plan is different with respect to fees and expenses, underlying investment options, quality, and benefits. There are no rules that say you must invest in the plan of the state that you reside in. Some states offer little or no incentive to use their plan. The choice you make on which plan to use could impact thousands and thousands of dollars. You can:
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Independence Why does it matter?
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Many advisors like myself market themselves as Independent Advisors. Being an independent advisor means that we have no affiliation to a particular Broker/Dealer, Wirehouse, or Fund company. Not having this relationship should result in unbiased advice in the client's best interest.
A news story came out this week regarding what non-independent, biased advice looks like. Ameriprise Financial Services agreed to pay $17 million in fines because it failed to disclose that it had received over $31 million in payments for placing clients into particular Real Estate Investment Trusts. As an investor it is rough to have the question in the back of your head as to whether your advisor is putting you into investments that are best for you or because he or she gets the biggest kickback or commission on them. Working with an independent advisor, who discloses any conflicts of interest you would not have to worry about that. |
It is not the critic who counts
Continuing on the inspiration theme from last week, below I included an excerpt from a speech given by Teddy Roosevelt.
"It is not the critic who counts, not the man who points out how the strong man stumbled, or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena; whose face is marred by the dust and sweat and blood; who strives valiantly; who errs and comes short again and again; who knows the great enthusiasms, the great devotions and spends himself in a worthy cause; who at the best, knows in the end the triumph of high achievement, and who, at worst, if he fails, at least fails while daring greatly; so that his place shall never be with those cold and timid souls who know neither victory or defeat."
The Bull Moose, delivered these words 99 years ago, but they are definitely still relevant today. Roosevelt calls for each of us to be "the man in the arena". Picture him at your home or in your office giving you the pep talk today.
Converse put out a great commercial a couple of years ago with a similar meaning. The commercial includes Dwayne Wade, a basketball player for the Miami Heat. Wade is repeatedly shown getting knocked to the ground as he's playing basketball. The commercial concludes with the saying "Knocked down 7 times, Got up 8 times." You can view the commercial here: http://www.youtube.com/watch?v=80dQekTAmIE. No matter how many setbacks you suffer, you have to get up, dust yourself off and continue onwards until you reach your goals. |
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Blog Post of the Month
Who Brought the Heat: Obama or Bush
I received the following email comparing the first pitches thrown out by President Bush and President Obama:
Bush
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1. 2-Seam Fastball. Will cut down-and away. The typical strikeout pitch.
2. Power-T position before the throw. Generates hip drive for max. velocity.
3. Eyes on the target.
4. Pitching hand cocked back so batter can't see ball during delivery.
5. Business slacks. He ain't here to play, hes gonna break the catchers hand.
ASSESMENT
Strike three - batter looking. Fastball looked inside coming towards plate then broke away on the inside corner.
1. Palm ball. Comes in slow and doesn't move.
2. No Power-T. Right hand hanging down towards dirt.
3. Eyes and mouth show fear that a batter will actually be in there to knock it 603 feet..
4. Pitching hand open so batter can see ball during delivery.
5. Blue jeans? When they asked him to throw out the first pitch he wrote a speech.
ASSESMENT
This ball will be hit so far it will need a flight attendant.
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Sincerely,
Marc Bautis Wealth Manager
tel: 201-221-6895
fax: 201-754-9760
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Disclaimer:The information contained in this newsletter is for information purposes only and may not be suitable for your specific financial situation. You should consult a financial advisor before making any investment decisions relating to the information contained in this newsletter
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About Marc |
Marc Bautis is an Independent Investment Adviser specializing in working with retirees and those nearing retirement who want to protect their principal and ensure their money lasts. He is proud to deliver independent advice, always in his clients best interest.
Marc is a Bergen County native. He is a graduate of Lyndhurst High School and Seton Hall University. He, his wife Katie, and puppy Winnie live in Hasbrouck Heights. |
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