|
Dear ,
Welcome to the December 2009 issue of The Wealth Chronicle. This month's edition contains articles on Social Security Benefits, Small Business Retirement Plans, and Last Minute Finance Tips. I would also like to thank everyone for their support this year and wish them a happy, healthy, and prosperous 2010.
|
|
Social Security Tips: File and Suspend
A wife (or husband) cannot start receiving spousal benefits until her husband (or wife) has filed for their benefits. Sometimes it makes sense for the husband to wait until they are 70 before they file to maximize their monthly benefit. In this case he can employ a technique called "file and suspend". By doing this he makes his wife eligible for spousal benefits and by suspending his own benefit he builds credits toward a higher benefit at age 70
This technique cannot be done online and some Social Security personnel are not familiar with the procedure. Before going to your local Social Security office, you should download Social Security Legislative Bulletin 106-20, which announces the Senior Citizens' Freedom to Work Act of 2000. This act permits the delayed retirements credits.
http://www.ssa.gov/legislation/legis_bulletin_040700.html |
|
Small Business Retirement Plans
 If your company does not have a retirement plan in place it is not too late to set up and fund a SEP (Simplified Employee Pension) Plan for 2009. You have until the due date of your 2009 income tax return (including extensions) to both set up and fund a SEP plan for 2009.
SEP plans cost very little to set up and maintain. They offer a high contribution limit and deduction, minimal paperwork and no annual Form 5500. Self-employed people can contribute to a SEP plan even if they participate in an unrelated employer's plan like a 401k plan.
For more information about SEP plans and other Small Business Retirement plans please visit http://www.irs.gov/publications/p560/index.html
|
Last Minute Finance Tips
As 2009 comes to an end consider these tips to help improve your 2009 tax and financial situation
Harvest Losses - You can use investments that have declined in value to offset taxable capital gains, plus up to $3,000 in ordinary income. Look at your taxable accounts for investments which have significantly declined in value and you do not expect to recover. If your investments lost more than $3,000 this year you are allowed to carry over the losses to future years.
Annual IRA Contribution - You actually have until April 15, 2010 to make your 2009 contribution, however the sooner you make your contribution the longer it will have to compound over the long-term. After you make your 2009 contribution, look to make your 2010 contribution to take advantage of the same compounding principles.
Witholding Adjustments - You have to pay the IRS, but you do not want to pay a penny more. Double check your withholding amount to ensure that you are not taking out too much or too little of your paycheck
529 Education Plans - Anyone can contribute up to $65,000 ($130,000 for a couple) this year without incurring gift taxes.
Suspended RMDs - If you typically wait until the end of the year to take required minimum distributions (RMDs) from your retirement plan, you can put away the withdrawal slip. In 2008 after the steep market decline the government responded by suspending all RMDs for 2009 with the hope that the extra time would give investors time for their retirement investments to recover |
|
Blog Post of the Month
Argentina: Lomo Land
Ever since Argentina's financial crisis in 2001, it has been a popular tourist place for people all over the world. This December I spent two weeks in Argentina and Uruguay exploring the capital city of Buenos Aires and Punta del Este, a resort town in Uruguay. The weather was great and the following are the highlights from the trip.
The Food
We knew it would be a good trip when for my first dinner I rolled the dice and did not order steak. I wound up having one of the best pieces of grilled pork at El Mirasol (http://www.elmirasol.com.ar/). After that meal I switched over to steak and it was just as good as I remembered it three years ago. The reason food tops the list of my highlights is not only because it tastes so good, but also because it is extremely cheap. Two people could each get a huge chunk of filet mignon, a plate of potatoes, dessert, and a bottle of wine for about $40. In Argentina they cook the meat with heat and are not as aggressive as we are with the flames of the grill. Beef consumption in Argentina is the highest in the world and over double of the amount of meat we eat in the US. As good as the steak was in Argentina the seafood was just as good in Punta del Este, Uruguay. One night we got an appetizer of grilled seafood (shrimp, lagostinos, mussels, clams, scallops, and squids) that tasted so fresh, like it was pulled out of the water an hour before we ate it.
Boca Jrs Soccer Game
I have been to many sporting events, including games where there is a lot of energy in the crown. Nothing will compare in terms of passion by the fans than being at the Boca Jrs stadium for one of their soccer games. I saw them play Banfield on the last game of the season on Sunday in which Banfield was playing for the league championship. Whether they are winning of losing the entire crowd stands and sings throughout the game.
Bike Tour of Buenos Aires
Anyone who has been to Buenos Aires would probably think we are crazy for taking a bicycle tour of the city. The drivers of the cars around the city almost seem like they are trying to hit pedestrians who cross the street. Nevertheless, we felt ambitious and looking for a little exercise we signed up through Viator (http://www.viator.com/tours/Buenos-Aires/Buenos-Aires-Half-Day-Bike-Tour/d901-2284TR01_02) for a four hour bike tour hit all of the neighborhoods in the south of Buenos Aires (Puerto Madero, Costanera Sur, La Boca, San Telmo, Ecologica Reserve). Our guide did a great job explaining the history of the city, the points of interest and good us back in one piece.
Relaxing in Punta del Este
We got lucky with the weather while we were in Uruguay. While it was snowing and below freezing temperatures back in NJ, the weather was in the 80's in Punta del Este. Punta del Este is an interesting place: Situated in the middle of the Atlantic Ocean on one side and the River on the other it is a haven for Argentinos and other South Americans to spend their summers. Low season has the population in the town at the point at around 10,000, however towards the end of December that number swells to 500,000. There is not much to do in Punta del Este except relax by the pool or beach, which was a nice break from the hustle and bustle of the city. |
|
Company Spotlight
|
It is not often that you hear a story of someone who is able to successfully pursue their dreams. Chris Suchorsky, a friend and teammate of mine at Seton Hall is doing just that. Before Chris went to college he knew that he wanted to be involved in films, however getting a college education was the thing to do. After college Chris got a corporate job in advertising, however he also spent time as a director, editor, and producer.
This December, after what I am sure was a lot of blood, sweat, and tears, Chris released his first feature-length documentary, Golden Days. It is an award winning documentary that follows the ups and downs of a Brooklyn-based indie rock band (The Damnwells) over a five-year period, as they go from struggling indie artists to major recording artists and back to struggling artists again. You can find out more about Chris's production company at http://www.lastweekendfilms.com, and you can buy Golden Days at http://www.indiepixfilms.com/film/4070. | |
|
Sincerely,
Marc Bautis
Wealth Manager
tel: 201-221-6895
fax: 201-754-9760
|
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
| |
|
 |
| 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. |
|
|
