Is Saudi Arabia setting things up for a big oil spike? Some experts who follow supply and demand within the oil industry believe so. SA has exceeded all records of production in an attempt to crush the shale industry, and in so doing, their reserve spare supply is now dwindling. Steve and Sinclair review an article by oil commentator Nick Cunningham who points out that Saudi Arabia wins either way--a low price or a high price, and at some point, demand and supply will change equilibrium. Meanwhile, big private equity investors are moving into oil and gas as a contrarian investment reports the Wall Street Journal.
Today on Mastering Money, Steve and Sinclair review the rising costs of Obama Care--those under Medicare age can expect increases in premiums of 20% to 40% as insurers discover how many claims are coming in. Could be a shocker for many people making more than $75k a year. The penalty for not having Obama Care is in full effect and can be as much as 2% of a person's AGI. In segment 3, Steve reviews capital gains brackets for various types of assets and income levels. Don't forget, if you sell that property outright, your AGI can skyrocket, putting you in the highest bracket and under the shadow of the Pease provision, where your deductions are reduced by 3%. The Obamacare Tax of 3.8% is a reality, and exposure to the Alternative Minimum Tax can also enter in. Listen in.
This year, institutional managers have pulled $3.5 billion from REITs and utilities funds, according to Morningstar. The retreat has persisted even as soft U.S. economic data raise increasing questions about how soon the Fed will raise rates. Utilities and MLPs had big years last year, but are down over five percent this year. Steve and Sinclair review a Wall Street Journal article on the risks in high dividend stocks and High Yield Bonds (aka Junk bonds). In the Q & A, Steve reveals several advanced estate and tax planning strategies.
Twenty years ago, investors found themselves in the middle of the biggest and longest sustained bull market of all time which began in 1983 and came to a halt in the spring of 2000. Those who retired in 1999 received a shock over the next 10 years. A bad sequence of returns followed and the S & P ran negative for a decade. Those who started withdrawing 5% or 6% from their investment portfolios could have been down by 70% by 2009. Those with pensions and annuities were unaffected. Their income continued without a hitch. To add to the problem, interest rates on safe bonds fell from their long term "normal" in the 5% to 9% range, down to 2%. In segment 2, we talk about viewpoints from one of the foremost authors on retirement planning, Dr. Moshe Milevsky with York University in Canada, best selling author of "Pensionize Your Nest Egg." Dr. Milevsky joins the A-Team in segment 3 for the Q & A for a lively discussion of pressing topics for retirees.
Nationally renowned Social Security expert Dr Laurence Kotlikoff joins the A-team to provide current answers on social security claiming strategies. With over 2,786 rules in the Social Security Rule Book, Dr. Kotlikoff's software system has simplified the claiming process. IQ Wealth is a licensee of the Kotlikoff system, and CFP® Murray Titterington with IQ Wealth uses the system on a regular basis on the IQ Wealth income platform. In the Q & A segment, Sinclair, Steve, and Murray provide the Q's, and Dr. Kotlikoff provides the "A's".
How do fixed index annuities really work? Is your money at risk, or is your principal safe and protected at all times? Most people are not aware that Fixed Index Annuities are more like fixed annuities than variable annuities. In fact, no no one has ever lost a penny to the market in any fixed index annuity from any company since their inception in 1995. That means they survived and thrived through two of the biggest stock market crashes of all time: 2000-2002, and of course 2008. Now, with advanced income riders, FIAs--whether you call them "new generation" or "hybrid" (marketing nicknames for the identical annuities) have arrived as effective 401k/430b and IRA rollovers. In the Q & A, Steve answers the most pressing and common questions about annuities.
The rising cost of long term care policies is becoming a growing problem. Premiums are rising, benefits shrinking. Steve and Sinclair review a recent Wall Street Journal article pointing out that over 7,000 policies were bought in 2000, but last year demand had fallen to 131,000 policies. We examine and provide solutions. Hedge fund manager Jim Gentrup, CFA joins the A-Team for the Q & A in segment 3. Steve wraps up with an overview in segment 4 with a tribute to his mom.
Famous CPA and retirement strategist Ed Slott says that Stretch IRAs will be going the way of the doh-doh bird. Slott says the Stretch is not necessarily the best way to pass an inheritance anyway. Steve and Sinclair examine Slott's recommendations for IRA beneficiaries and alternatives that are superior to the stretch. Certified Financial Planner Murray Titterington joins the A-Team in segment 3 for the Q & A to review social security strategies and an interersting case study where the file-and-suspend strategy could not be used, which surprised several clients. Murray has recently achieved the FINRA recognized designation of National Social Security Advisor. Murray is one of only 7 NSSA designees in the state of Arizona and the only one in the Phoenix/Scottsdale metro area.
Should you use your trust as the beneficiary of your IRA? Attorneys say it is not advised unless you have very important wording in your trust, and certain stipulations are met. Steve and Sinclair review in segment 2. Experienced real estate attorney Chris McNichol with Gust Rosenfeld joins the A-Team for the Q & A with the inside story on a high profile property at the 101 and 201 that has been mired in controversy, foreclosures, and bankruptcy with a REIT involved. Very intriguing case and very instructive.