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Apr 01
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6 Financial Tips for an Emergency

By Blog, Tip of the Month

6 Financial Tips for an EmergencyThe effect of the coronavirus on our lives is unprecedented. While we’re all sheltering in place while trying to manage our daily tasks, it’s undoubtedly taking a toll on us mentally, physically and financially. Here are some tips to help you weather this storm of economic uncertainty.

Get Started on Being Liquid

Experts suggest having three to six months of savings on hand. However, this might not be realistic for some. Don’t despair: start saving now. If your employer pays you via direct deposit, ask if they’ll deposit a percentage into your savings. If that’s not an option, have your bank withdraw a portion and deposit into your savings on payday. This way, putting aside money for a crisis will be part of your routine. Further, a good rule of thumb is to budget 50 percent of your income to essentials like housing and utilities, 30 percent toward non-essentials and 20 percent toward financial goals like savings and paying down debt. You can do this!

Analyze Your Expenses

Perhaps setting aside a small amount of money just won’t work for you. Mariel Beasley, co-founder of the Common Cents Lab at Duke University, an organization that aims to improve the financial well-being of low- to moderate-income Americans, suggests taking a hard look at your expenses.

  1. See if you can downgrade. For instance, consider getting a cheaper phone, cable or internet plan.
  2. Set up a restrictive budget. When it comes to discretionary spending, think about using a pre-paid card. You can reload this weekly. If seeing the green stuff actually leave your wallet helps you cut back, then a cash-only system might be a good solution.
  3. Try to find extra work. While this situation is causing furloughs in some industries, it might create jobs in others. For instance, Amazon is said to have hired 100,000 new employees. Research other companies that specialize in deliveries. Since everyone is homebound, this could pan out well — if you like this kind of work. If you do, remember your hand sanitizer, gloves and mask. If you don’t, scour the job boards in your area. You might be surprised at what you find.

Solutions for People Over 59

There is an upside to aging: you can make withdrawals from your IRA or 401(k) if things get really rough. However, Beasley suggests that you withdraw funds in small amounts. If you’re under 59 and really have no other alternative, you can withdraw from your retirement. But know that there will be penalties and taxes. However, in times like this, sometimes you’ve got to do what you’ve got to do.

Avoid High-Cost Credit Cards

While these modern conveniences can be lifesavers, the downside is high-interest rates. Apply for cards with lower rates; or even better, find those that offer balance transfers at zero percent for a limited time.

Disregard the Goal

Many financial experts say: keep your eyes on the prize – build your nest egg. But if you’re just getting started, it might feel overwhelming. Or, if you’re in the midst of a world crisis like we are now, it can feel doubly overwhelming. Instead, focus on saving a little at a time. Baby steps. Even having a small amount of money set aside can help in times of need, like buying groceries during a quarantine.

Ask for Help

If you’re really feeling the pinch, reach out to your landlord, mortgage lender, utility provider, credit card companies or anyone else you owe. In Seattle, the public utility companies are promising they won’t shut off services during this pandemic. The same might be true for your community. But the point here is this: make the call. Send the email. Propose a payment plan. It’s reasonable to assume that most people have a heart and don’t enjoy adding financial stress to the already difficult situation we’re in.

If you can’t apply any of these tips your present circumstances, don’t worry. Be well and stay safe. Perhaps when this passes, you might look back at these ideas and see which works best for you. Remember, we’re all in this together.

Sources

https://abc13.com/finance/financial-tips-to-help-you-through-a-pandemic-or-other-crisis/6021876/

Apr 01
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The Economic Impact of Coronavirus

By Blog, Financial Planning

The Economic Impact of CoronavirusIn the days ahead, the COVID-19 pandemic will likely be described in economic terms as a Black Swan. This phrase is used to describe an event that: 1) was unpredictable; 2) causes severe and widespread consequences; and 3) in hindsight was determined to be wholly predictable.

What will be interesting going forward is how much the virus, and its impact on the economy and financial markets, ultimately affects individual portfolios. It’s worth noting that many economists spent the whole of 2019 cautioning that a recession and market correction was imminent. To what extent investors took heed and repositioned their portfolios is yet to be seen.

As predicted, the Federal Reserve might have already exhausted the tools it had available to prevent a further watershed in the markets. Initially, the central bank dropped the federal funds rate to zero and funneled money into the economy. In more recent weeks, its monetary policies have included aggressive purchasing of Treasury bonds and mortgage-backed securities, extending swap lines to foreign central banks, and propping up short-term corporate borrowing and money market mutual funds to help support lending to state and local governments. At first, these efforts appeared to do little to diminish the stock market slide, but the end of March saw a three-day rally with the Dow Jones Industrial Average seeing its biggest three-day jump since 1931.

On the fiscal policy side, Congress is rushing to pass monetary aid as well as stimulus and recovery funds for both individuals and businesses. However, these actions can do little to stop an airborne virus that continues to shutter jobs and businesses and threaten the viability of the country’s health care system and everyday life as we know it.

Portfolio Considerations

When it comes to your own financial risk, let’s look at first things first. For many investors, an initial reaction might be to panic sell holdings before portfolios drop any further. Unless your timeline for needing funds has accelerated, selling now is not generally advisable. What is important to bear in mind is that markets tend to recover quickly after the most significant market declines, so if you’re not invested during the recovery, any paper losses you’re experiencing now will be permanent.

It is worth taking a good look at your holdings to get an idea of what to expect. For example, companies that rely on global supply chains and offshore manufacturing will likely experience the most detrimental short-term impact from the pandemic. This means disruptions in technology, retail, auto manufacturing, travel and tourism, global delivery and oil prices.

On the other hand, the health care industry will likely see tons more investment and demand while the so-called FAANG stocks (Facebook, Apple, Amazon, Netflix and Google) are poised for rampant growth – given the degree to which people are stuck at home using online and delivery services.

Bear in mind that if you make any changes to your portfolio in reaction to market volatility, take into consideration your long-term goals and financial security. The following are a few strategies to consider that could position your portfolio for subsequent growth – assuming you maintain a long-term perspective.

  • Use either spare cash, asset allocation rebalancing opportunities or automatic investment contributions to bargain shop for stocks with a strong track record that are likely to recover but are well-priced right now.
  • Now might be a good time to convert (tax-deferred) retirement account assets into a Roth IRA. By doing so now, when prices are at their lows, you’ll owe less tax at the time of the conversion – which you won’t have to pay until next year’s tax season. By that time, the market may have recovered, positioning your Roth for greater potential for tax-free growth and tax-free income during retirement.
  • Consider using a portion of your assets to pay a lump sum premium for an annuity contract in order to transfer market risk from your portfolio to an insurance company. An annuity is designed to provide insurer-guaranteed income during your retirement, so you can feel a bit better about maintaining an equity allocation during this volatile time until the rest of your portfolio recovers.

The spread of the COVID-19 coronavirus is likely to continue to drive investor uncertainty over the short term. The long term, however, is another matter. Just like the saying, “What goes up, must come down,” history has shown that when it comes to the stock market, what goes down inevitably goes back up. The question is just how long that will take. For now, this is one of those times when it’s handy to have a three-to six-month emergency cash fund available to cover expenses.

Apr 01
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Understanding the Oil War between Russia and Saudi Arabia

By Blog, Stock Market News

Understanding the Oil War between Russia and Saudi Arabia, Oil WarOver the past six years, domestic crude oil has experienced a volatile ride. 2014 saw the emergence of American shale as producers were attracted to the $114 price levels. However, in 2016 the price for a barrel eventually fell to $27 as a global supply glut developed. 2016 also saw Russia and Saudi Arabia form an oil pact that drew together Russia and OPEC, leading to the so-called OPEC+ to navigate the global oil market. This agreement would eventually culminate into the current crude oil tensions that exist between Saudi Arabia and Russia.

Through the early 2000s – up until the financial crisis of 2008 – increasing global demand accounted for the rising price per barrel of oil. After reaching a high of $147.27 the week of July 7, 2008, the financial crisis’ effects brought the price of West Texas Intermediate Crude down to a low of $32.98 in December of 2008, according to the U.S. Energy Information Administration. However, with the economy recovering through 2009, the price of WTI crude oil rose to the high $70s and low $80s.

After the world emerged from the financial crisis, world oil markets were rocked by geopolitical tensions from the political revolution in Egypt during January 2011, spiking the price of crude oil to $100 a barrel. Prices stayed in the $90 to $100 per barrel range, until the end of 2014. With increased production in North America, reduced demand from emerging economies and increased storage of crude worldwide, the price per barrel of crude oil in 2016 traded in the low $30s per barrel. The price of oil fell because Saudi Arabia attempted to flood the world market with excess oil to lower the per-barrel price to bankrupt the emerging U.S. frackers.   

In reaction to the low oil prices, OPEC and its non-OPEC oil-producing countries agreed to reduce their total output by 1.8 million barrels in December 2016, taking effect in January 2017. After OPEC reversed itself and increased output in June 2018, it again cut output for 2019. The price of WTI rose to the mid-$70s by October 2018, which can also be attributed to a drop in Venezuela’s oil production, and the re-introduction and increase in severity of sanctions against Iran.

A November 2018 report by the U.S. Energy Information Administration (EIA) relayed that the U.S. produced 11.3 million barrels in August 2018. With the report’s news, additional Russian oil production and even some OPEC countries producing more, it brought WTI down to $51 per barrel. Fast forward to March 2020, with the coronavirus sending shockwaves and diminishing demand, oil prices fell.

This led to a meeting in Vienna on March 5 for OPEC and its (+) or other major oil-producing companies throughout the world to discuss production cuts in hopes of increasing the price of oil. During this meeting, OPEC and its (+) members discussed whether to reduce production by 1.5 million barrels a day through the end of June 2020. OPEC asked Russia and those (+) members to cooperate with the production cuts. However, on March 6, Russia did not agree to reduce oil production. This immediately dropped the price of oil by 10 percent.

With the coronavirus pandemic beginning at the end of 2019, manufacturing and transportation decreased, reducing the global thirst for oil. Based on these events, the International Energy Association (IEA) announced in the middle of February that global consumption would fall to 825,000 barrels per day.

Russia said that reducing production was premature because it was and still is uncertain of how the coronavirus will affect global oil prices. Additionally, they cited political instability in Libya, where approximately one million barrels per day were expected to be offline from production.

In light of the unknown extent of the coronavirus pandemic’s impact on oil demand, Russia and its oil producers reportedly offered to maintain the existing 1.7 million barrels per day cut for the next three months that OPEC+ already had in place. However, OPEC didn’t agree to this offer.

Beginning on March 8, Saudi Arabia gave crude oil buyers discounts of between $6 and $8 per barrel to European, Asian and American buyers. This set a downward cascade of the price of oil, lowering Brent Crude by 30 percent and West Texas Intermediate by 20 percent.

Starting March 9, the drop in oil prices coupled with the global coronavirus pandemic exerted a major impact on world markets. Russia’s ruble dropped by 7 percent shortly thereafter. While the price of oil recovered a little after the impact, it set off a production war between Russia and Saudi Arabia. Beginning March 10, Russia began pumping an additional 300,000 barrels per day, and Saudi Arabia ramped up its production to 12.3 million barrels per day, up from 9.7 million.

Impact on Markets

These two factors led the Dow Jones Industrial Average to drop more than 1,300 points in pre-market trading on March 9, with the DOW ultimately falling 2,000 points during intraday trading. Along with NASDAQ falling by nearly 7 percent and the S&P 500 dropping more than 7 percent, global markets fared worse. This was evidenced by the Italian FTSE MIB Index losing more than 11 percent. 

Producer Implications

When it comes to how the crude oil war is impacting shale producers in North America, it’s important to note that prices of $40 per barrel must be sustained to keep producers afloat, according to consultant Enverus. However, production cuts are imminent at the bottom of the $30 a barrel price point, and there’s certainly no expectations of new oilfield development.

Based upon forecasts from the U.S. Energy Information Administration, May 2020 U.S. production of crude oil is expected to drop from 13.2 million barrels per day to 12.8 million barrels per day by December, finally leveling off to 12.7 million barrels per day in 2021.   

Much like the volatility going on with the coronavirus pandemic, global markets are also expecting further volatility for the world’s energy market.

Apr 01
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CARES Act – Coronavirus Aid, Relief, and Economic Security Act

By Blog, General Business News

U.S. Government Provides Relief to Individuals, Businesses in Midst of COVID-19 Crisis

On March 27, President Donald Trump signed into law a historic $2 trillion stimulus package designed to provide economic relief to individuals and businesses affected by the coronavirus pandemic.

Our aim in this alert is to give a brief overview of both the tax and non-tax provisions of the government’s new stimulus legislation, including what type of assistance is available for individuals and businesses, how to apply for it, and what to do if you become unemployed. The summary is divided into two sections, one for individuals and one for businesses.

Individual Provisions

Stimulus Payments: Amounts and Eligibility

  • Most adults will receive $1,200; each qualifying child under 16 years old will receive $500.
    • The amount you receive is based on your tax filing status and reported adjusted gross income (AGI).
      • Single filers with an AGI of $75k or less will receive the full $1,200; with a full phase-out at $99k
      • Married filers with an AGI of $150k or less will receive the full $2,400; with a full phase-out at $198k
      • Heads of households with an AGI of $112.5k or less will receive the full $1,200
  • Having qualifying children will increase the phase-out threshold slightly for all groups
  • Those claimed as a dependent by another taxpayer will not receive any stimulus money
  • Recipients need to have a legitimate Social Security number to receive payment, except for military members
  • Currently there is only one stimulus payment scheduled; however, there has been discussion of additional future payments

Proof of Income

  • If prepared, your 2019 tax return is the basis of your eligibility; if not, use your return from 2018
  • If you still have not filed for 2018, you can use a 2019 statement from the Social Security administration as proof of income to qualify

Applying for the Payment and Receipt

  • If the IRS has your bank information from prior tax filings, then you don’t need to do anything. The money will simply be direct deposited into your account based on already filed income tax information
  • Most people should expect to receive the money approximately three weeks from the bill’s passage date

Other Considerations

  • Unemployed persons are eligible to receive payments
  • You will not need to pay income tax on these payments
  • Generally, this payment is exempt from all forms of wage garnishment; however, not in all cases for child support garnishments

Unemployment Benefits: Who is Covered?

  • The bill expands eligibility for unemployment benefits, including part-time and self-employed workers
  • Self-employed persons are newly eligible for unemployment benefits and their benefit is calculated based on previous income using a formula from the Disaster Unemployment Assistance program
  • Part-time worker benefits are state dependent

Amount of the Benefit

  • Unemployment benefits still vary by state, but generally the bill aims to compensate for the average worker’s paycheck by providing extra payments to cover the gap between traditional state unemployment and actual wages
  • Eligible workers can get as much as $600 per week in addition to their state benefit; this includes self-employed and part-time workers
  • States are free to pay the whole amount at once or send the top-up portion separately

How Long Will It Last?

  • The bill provides an additional 13 weeks on top of whatever each state already provides; however, unemployment benefits cannot last more than 39 weeks total
    • Those already receiving unemployment benefits are still eligible for the 13-week benefit extension as well as the $600 weekly benefit top-up
  • The incremental $600 payment is only good for up to four months, through the end of July

Other Considerations

  • Coverage also extends to those who can’t work because they are required to self-quarantine and people unable to travel to work because of imposed quarantine restrictions
  • If the main household earner dies as result of the coronavirus, the survivor is eligible for their unemployment benefit
  • People who can work from home or are already receiving paid sick or family leave are not eligible

Student Loans

  • For six months (April 2020 to September 2020) there is an automatic suspension of student loan payments for loans held by the federal government (private loans excluded)
    • You may choose to keep paying down the principal if you desire

Retirement Account Rule Changes

  • For 2020, the minimum distribution requirements on IRAs, 401(k), 403(b) plans, etc. are suspended
    • This is not applicable to pensions
  • Up to $100k may be withdrawn early without being subject to the typical 10 percent early withdrawal penalty; and income taxes owed on withdrawals may be spread over three years from the date of distribution
    • To qualify for these exemptions, you need to prove the need was related to the COVID-19 outbreak, which includes if you, your spouse or a dependent tested positive for the virus or if you suffered adverse economic costs due to the COVID-19 crisis
  • Loan limits on workplace retirement plans (401k, etc.) are doubled, allowing participants to take loans of as much as $100k if they can prove they’ve been affected by the pandemic

Charitable Contributions

  • The bill creates a new charitable deduction of up to $300 available for those who can’t itemize their deductions for donations to qualified charities
  • The limit on charitable deductions (those that are itemized) are increased, allowing donors to deduct up to 100 percent of donations against 2020 AGI. For example, if you have $1.3 million in income, you can donate $1.3 million and deduct the entire amount
    • Only cash gifts to public charities qualify; you cannot donate stocks or gift via private foundations to be eligible

Miscellaneous Provisions: Renter’s Relief

  • The law puts a temporary 120-day nationwide stop to evictions if the landlord has a mortgage from a governmental agency, such as Fannie Mae, Freddie Mac and others. Additionally, landlords are not allowed to charge penalties for delinquencies during this period.

Business Provisions

Charitable Deductions

  • The 10 percent limitation on charitable donations is increased to 25 percent of taxable income

Qualified Property Improvements

  • Businesses will have the option to write off costs that are typically only depreciable over a 30-year period, especially businesses in the hospitality industry

Small Business Administration (SBA) Loans

  • Small businesses and non-profits that have 500 employees (full- and part-time) or fewer are eligible to receive SBA loans of up to $10 million
  • The loans may be used to cover the cost of payroll, paid leave, group health benefits, mortgage and rent payments, utilities and interest on other debts
  • No collateral or personal guarantees are required

Employee Retention Credit

  • Employers are eligible for a payroll tax credit of up to 50 percent of wages paid during the COVID-19 crisis, which is defined as March 13, 2020, through the end of the year, up to a maximum credit of $5,000 per employee
  • The credit is limited to employers whose operations have been suspended due to the virus outbreak or whose gross receipts have fallen by more than 50 percent compared to the same quarter in the prior year

Payroll Tax Deferral

  • Employers can defer their 6.2 percent portion of the FICA tax (Social Security portion only), delaying payment over two years with 50 percent due in 2021 and the other 50 percent due by 2022.

Net Operating Loss (NOL) Changes

  • The Tax Cuts and Jobs Act disallowed the carryback of NOL completely; and before this in 2018, only a two-year carryback was allowed. This bill allows a five-year carryback for losses from 2018, 2019 and 2020; and taxpayers can amend prior year’s returns as well.
  • The 80 percent limit on NOLs for these same years is removed, allowing a 100 percent reduction in taxable income.

Business Interest Expense Deductions

  • Business interest that falls under Section 163(j) gets an increased deduction limit from 30 percent to 50 percent of taxable income for 2019 and 2020.
  • 2019 taxable income can be used to calculate the interest limitation for 2020 if it’s more favorable
    • The above is not applicable to partnerships
Apr 01
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Should You File an Amended 2018 Return?

By Blog, Tax and Financial News

Amended 2018 Tax ReturnDuring the holiday season in December, Congress passed the Consolidated Budget Appropriations Act of 2020. Included in this Act was a tax package that renewed more than 24 tax provisions through what are known as extenders. An extender makes a tax provision effective retroactively. Some of the extender provisions are rather esoteric, so we’ll only focus on those most applicable to the broader taxpayer base.

Extenders in More Detail

Among the widely applicable extender provisions, there are the following. It’s best to check with your tax professional to see which of the more than two dozen extenders may apply to your personal situation.

  • Deducting PMI (private mortgage insurance) if you itemize
  • The delusionality of some types of tuition and fees
  • The ability to exclude debt forgiveness on a qualified residence

Wait, I Don’t Understand What Happened?

Most people are probably wondering at this point how they can obtain the benefit of these retroactive changes, which were not allowed when they filed their original 2018 tax return. The answer is to file an amended tax return – or Form 1040X.

Taxpayers often need to file an amended return when they receive updated or changed inputs, such as when a brokerage sends a corrected Form 1099. Unlike this situation where the basis of your filing changed due to updated information, with the extenders you’ll only want to file if it’s to your benefit.

But Do I Have to File an Amended Return?

Tax law does not actually require that a taxpayer file an amended return when learning the original return submitted did not reflect the correct amount of tax. The assumption is that it was correct the first time. Amendments are allowed, but they are not mandatory.

If you do choose to file an amended return, you have to adjust everything to reflect the tax law and any changes in the information received. You are not allowed to pick and choose only the favorable difference between the original and amended filing.

OK, But Should I File an Amended Return?

The answer to this question is probably a tax accountant’s favorite – it depends.

The most frequent worry among taxpayers is that filing an amended return will trigger an IRS audit. This fear arises from the fact that generally returns are filed and processed electronically, but all amended returns are processed by live people. The biggest risk here is to not include a full explanation of the changes in the return, including what is different, why it’s changed and the basis for the difference.

Refund or No Refund – Does it Matter?

Another question that often perplexes taxpayers is whether they should file an amended return if doing so will not result in an additional refund. Just because your amended tax return won’t result in a check in your mailbox, there are situations where it’s still to your benefit. One example is if the amended return will increase your capital or passive loss carryforwards.

The Sands of Time

Since amended returns are processed by people and not electronically, the turn-around time is a bit longer than most returns. The IRS says amended tax returns typically take eight to 12 weeks, but it’s often longer.

Conclusion

While you might not have to file an amended return, it could be to your benefit from either the tax extenders, corrected information that arrived after your initial filing or a combination of both. Every taxpayer situation is different, so it’s best to consult us.

Mar 01
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Supporting Veteran Careers, Protecting the Food Supply, and Reducing Wasted Government Spending

By Blog, Congress at Work

Supporting Veterans in STEM Careers Act (S 153) – This bill encourages veterans to participate in STEM (science, technology, engineering and mathematics) fields in a variety of ways, including making veterans eligible for certain National Science Foundation (NSF) programs. The Act directs the Office of Science and Technology Policy to establish an interagency working group to improve veteran and military spouse representation in STEM fields, and authorizes funding for the Government Accountability Office to study 1) the academic success rates of student veterans pursuing an undergraduate degree in STEM and related fields; and 2) the barriers faced by such students in pursuing such degrees. This legislation was sponsored by Sen. Marco Rubio (D-FL) on Jan. 16, 2019. It was passed in the Senate in December, the House in January, and was signed into law by the president on Feb. 11.

Protecting America’s Food and Agriculture Act of 2019 (S 2107) – This legislation directs U.S. Customs and Border Protection to hire and train more agricultural inspectors at land, air and sea ports to prevent African swine fever and other foreign animal diseases from entering the United States. The legislation was sponsored by Sen. Gary Peters (D-MI). It was introduced on July 11, 2019, passed the Senate (October) and then House (February) and is currently waiting to be signed by the president.

Payment Integrity Information Act of 2019 (S 375) – This bipartisan bill is designed to reduce federal government waste in the form of overpayments, underpayments, payments made to ineligible recipients or payments that are not properly documented. It authorizes the Office of Management and Budget (OMB) to establish pilot programs to test potential accountability mechanisms for compliance requirements, such as updating a plan to improve the integrity and usage of Social Security death data. The Act was introduced on Feb. 7, 2019, by Sen. Thomas Carper (D-DE); it passed the Senate in July, the House in February and is currently waiting to be enacted.

Presidential Transition Enhancement Act of 2019 (S 394) – This law requires eligible presidential candidates (as of September of an election year) to develop and release transition team ethics plans, including how they will address their own conflicts of interest, prior to election day. It also is designed to focus a transitioning government on ongoing issues in the public interest during the changeover so that priorities are not shifted to solely address those of special interest lobbyists. The bipartisan bill, introduced by Sen. Ron Johnson (R-WI) on Feb.7, 2019, was passed by the Senate in August and the House in February. It is awaiting signature by the president.

United States-Mexico-Canada Agreement Implementation Act (HR 5340) – Introduced by Rep. Steny Hoyer (D-MD), this legislation represents the new trade agreement between the United States, Mexico and Canada to replace the North American Free Trade Agreement. This bill passed in both the House and Senate and was signed by the president on Jan. 29. Mexico has also signed the agreement. However, Canada is still in the process of getting it ratified through Parliamentary procedures.

PIRATE Act (HR 583) – This bill dramatically increases the fine for operating a “Pirate Radio” station, in which people set up their own stations outside the official Federal Communications Commission (FCC) system. The maximum fine increases from $19,639 to $100,000 per day, with a maximum total fine capped at $2 million, up from $147,290. The legislation was introduced by Rep. Paul Tonko (D-NY) in January 2019. It passed in the House in February 2019 and in Senate in January 2020. The bill was signed into law on Jan. 24.

Mar 01
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6506148 B2 Patent: Nervous System Manipulation – Is it Real or Just Paranoia?

By Blog, What's New in Technology

Imagine someone manipulating how you feel. Of course, no one wants that. But how about being manipulated unknowingly? This is exactly what is happening to your nervous system every time you switch on your TV or computer.

Well, at least according to the 6506148 B2 Patent.

The patent named “Nervous System Manipulation By Electromagnetic Fields From Monitors” was filed in 2001 and published in 2003. The patent was filed by one Hendricus G. Loss (perceived to be a fictitious person as no information about who he really is can be traced).

Is it Worth Any Attention?

We already know that the content displayed on TVs or even on the internet is created in such a way as to influence decisions, such as when making a purchase or standing behind certain beliefs.

The mind control subject has been a topic of discussion for a long time. Although initially considered a conspiracy theory, its reality has been observed in the content displayed by mainstream media.

But how about manipulation through the nervous system?

Science teaches us that the work of the nervous system is to carry messages throughout the body and control your senses. The nervous system, according to neuroscientists, is controlled by the brain.

Now, the brain is said to be a complex bioelectrical organ that produces electric fields.

That’s why it’s believed that you can rewire your brain through techniques such as listening to binaural beats. Scientists also claim to control brain functions with a technique that uses powerful electromagnetic radiation. This technique, known as Transcranial magnetic stimulation (TMS), can jam or excite particular brain circuits.

Think of how you are not allowed to use cell phones in some areas of a hospital or in an airplane (where some only allow use in airplane mode). This is so that the electromagnetic transmission of the phone does not interfere with critical electrical devices.

So if a brain is a bioelectrical organ, is there a possibility of manipulating it?

How it Happens, According to 6506148 B2 Patent

Here is a short excerpt from the patent abstract:

“Physiological effects have been observed in a human subject in response to stimulation of the skin with weak electromagnetic fields that are pulsed with certain frequencies near ½ Hz or 2.4 Hz, such as to excite a sensory resonance. Many computer monitors and TV tubes, when displaying pulsed images, emit pulsed electromagnetic fields of sufficient amplitudes to cause such excitation.

It is, therefore, possible to manipulate the nervous system of a subject by pulsing images displayed on a nearby computer monitor or TV set. For the latter, the image pulsing may be embedded in the program material, or it may be overlaid by modulating a video stream, either as an RF signal or as a video signal. The image displayed on a computer monitor may be pulsed effectively by a simple computer program. For certain monitors, pulsed electromagnetic fields capable of exciting sensory resonances in nearby subjects may be generated even as the displayed images are pulsed with subliminal intensity.”

The US Patent 6506148 B2 is a confirmation of the possibility to manipulate the nervous system. The patent includes 14 claims including how video can be used to manipulate the nervous system.

Is it just a conspiracy theory?

Well, it’s not easy to tell. But we can’t ignore the concerns raised in regards to electromagnetic fields (EMF). The EMF issue has raised so much concern that in May 2015, 190 scientists from 39 nations submitted an Appeal to the United Nations requesting the World Health Organization (WHO) adopt more EMF exposure protective guidelines.

Such concerns are an indication that the patent should not be ignored. It also goes to show that apart from your electronic devices recording, monitoring and watching everything you are doing, they can also influence living organisms’ feelings, perceptions, thoughts and behavior.

Switch off that Screen

Well, this is practically not possible. The dependence on these electronic devices is so high that we are practically immobilized if they were to be turned off. Electronics have become part of human attachment.

The age of the Internet of Things (IoT) doesn’t make it any better. Now that we are surrounded by electromagnetic emitting devices, the patent serves as an alert to the public of the possibility of what could happen if these technologies were used unethically.

Unfortunately, the technology is here to stay. The only option is to minimize the exposure from your EMF emitting devices. Therefore it’s not a bad idea to try something different: read a book, go hiking, take a walk or simply switch off that screen when you can.

Mar 01
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7 Ways to Avoid Investment Fraud

By Blog, Tip of the Month

These days, you can’t be too careful when it comes to investments. And if you’re older, you’re a prime target for fraudsters. That said, anyone of any age is vulnerable. Here are a few key things to keep in mind when you’re considering investing.      

Ask Lots of Questions

Of course, you’re going to ask questions, but make sure you ask the right ones. Is the product registered with the SEC or state securities agencies? What are the fees? How does the company make money? What things might affect the value of the investment? Are my investment goals aligned with the investment? How liquid is this investment? For more ideas about what questions to ask, check out this comprehensive resource from the U.S. Securities and Exchange Commission.

Do Your Research

And we don’t mean simply Googling them. If you’re thinking about investing in a publicly traded company, go immediately to the SEC’s EDGAR database. You can look up the prospective company to see if it’s legitimate.

Beware of Unbelievable Returns

If something sounds too good to be true, chances are it is. If you hear that the investment will make “incredible gains,” is a “breakout stock pick” or has a “huge upside and almost no risk,” these are big red flags of fraud. Further, if the salesperson promises a guaranteed return, you know this isn’t true; every equity investment has a modicum of risk.

Resist ‘Act Now’ Offers

If someone tells you that this investment is a once-in-a-lifetime offer and it will be gone tomorrow, walk away. Another scam tactic is one that claims “everyone is investing in X stock, and so should you.” As irresistible as this might sound, don’t succumb to the pressure. It’s a trick.

Avoid Reciprocity

One of the most common lures that tricksters use are free seminars that include lunch. They play on your guilt and figure that if they do something for you, you’ll return the favor and invest. It’s never a good idea to invest on the spot. Take the materials home and do your research. With that said, not every free seminar is bogus. Just follow through with your due diligence and protect yourself.

Know Your Salesperson

We’re not talking “know,” as in you follow them on social media or you have a number of mutual friends and they come highly recommended. But even if you’re connected with them through a seemingly respected company and you “feel” like they’re trustworthy, don’t trust blindly. Check them out at BrokerCheck, an online database maintained by the Financial Industry Regulatory Authority (FINRA). This is a nongovernmental group that watches over securities firms and dealers. Remember: credibility can be faked. Don’t be duped.

Stay Away from Robocalls, Emails and Late Night TV ads

Let’s be honest, legitimate companies don’t reach people this way. However, swindlers can be very persuasive. But stand your ground. Don’t budge. When it comes to seniors, crooks view them as “more trusting” and less likely to say no. The truth is that older people are more often targeted because the supposition is that they have more assets to tap into – aka steal. Don’t let these buggers woo you. Hang up, hit delete or change the TV channel.

If you’ve taken every precaution and you still feel like you need help before you make an investment decision, consult your accountant or financial planner. When it comes to your hard-earned money, it’s worth all the time in the world.

Sources

https://www.investor.gov/protect-your-investments/fraud/how-avoid-fraud/what-you-can-do-avoid-investment-fraud

Mar 01
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SECURE Act Seeks to Help Americans Save More for the Golden Years

By Blog, Financial Planning

At the end of 2019, Congress passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act as part of a year-end appropriations package. This bill is designed to address specific issues related to retirement savings plans in an effort to help Americans save more for retirement.

Retirement Plan Contributions

People are living longer, and a decrease in employer-sponsored pensions has resulted in retirees relying more on Social Security benefits than in the past. So first, the SECURE Act eliminated the age limit on traditional IRA contributions so that people who work into their 70s and beyond may continue to contribute to the traditional IRA up to the annual limit. In 2020, the limit for all IRAs – traditional and Roth combined – is $6,000; $7,000 for individuals age 50 and older.

Retirement Plan Distributions

The SECURE Act also extends how long retirees may keep money invested in their traditional IRA, 401(k)s and other defined-contribution plans before mandating distributions. Starting this year, people who turn 70½ after Dec. 31, 2019 may delay having to start taking annual required minimum distributions (RMD) until age 72.

Inherited IRAs Reigned In

The Stretch IRA is an advantage bestowed to non-spouse beneficiaries who inherit an IRA. While a benefit still exists, the SECURE Act makes it somewhat less advantageous. Starting in 2020, assets in these inherited accounts must be fully distributed by Dec. 31 of the 10th year following the death year of the IRA owner. This means that annual distributions will be larger and the investment will no longer be able to grow beyond 10 years.

Employer-Sponsored Retirement Plans

The SECURE Act also made changes to employer-sponsored retirement plans. For example, it allows employers to increase the cap on automatic payroll contributions to 15 percent (up from 10 percent) of an employee’s paycheck. Research has found that automatic payroll deductions have been instrumental in improving both participation and savings rates among employer retirement plans. However, employees continue to have the ability to retain their current contribution level (or opt out of the plan entirely).

The legislation also requires employers that sponsor a defined-contribution plan to offer it to any long-term, part-time workers. The criteria for this requirement are that individuals must be age 21 or older and work at least 500 hours each year, for three years in row. However, the measurement time for this requirement doesn’t start until 2021.

The SECURE Act attempts to replace the secure pension plan by making it more attractive for employers to offer a lifetime income option as part of their 401(k) plan. Also known as an annuity, this option allows the worker to use his or her retirement plan contributions to purchase an annuity contract over time.

In the past, employers were reluctant to include an annuity option because they could be held liable if the annuity provider is unable to fund the retirement income guaranteed by the annuity contract. To help alleviate this concern, the SECURE Act protects the employer from liability as long as it chooses an annuity insurer that, for at least seven years, is 1) licensed by that state’s insurance commissioner; 2) has filed audited financial statements in accordance with state laws; and 3) maintains the statutory requirements for reserves among all states where the provider does business.

Employers that offer an annuity option must now issue a customized statement each year that estimates how much plan participants would receive in monthly retirement income based on the current balance of their annuity. When employees retire or take a new job, they can transfer their in-plan annuity to another 401(k) or an IRA without incurring fees or surrender charges.

The SECURE Act also provides new benefits for small businesses that sponsor a retirement plan for employees. They may now receive up to $5,000 to offset retirement plan startup costs, and can get an additional $500 tax credit per year for three years if their plan features auto-enrollment for new hires. The bill makes it possible for small employers in unrelated industries to open a multiple-employer 401(k) plan (MEP) in order to share administrative costs.

Conclusion

Overall, the various provisions of the SECURE Act described above are designed to make retirement savings easier and more accessible. Small businesses will find it less burdensome to offer both full- and part-time employees 401(k) plans by providing tax credits and protections on collective Multiple Employer Plans. Individuals will find they have more flexibility in managing their accounts later in life. Overall, the SECURE Act should ease the coming retirement crisis as demographics change by helping people prepare better.

Mar 01
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Coronavirus: Black Swan or Buying Opportunity?

By Blog, Stock Market News

According to the World Economic Forum (WEF), the spread of the coronavirus will impact the world’s economy. Whether it’s a Reuter’s poll from economic experts projecting growth in China slowing to 4.5 percent in Q1 of 2020, in contrast to China’s Q4 GDP of 6 percent; or the International Energy Agency (IEA) saying world desire for oil will be lower due to the coronavirus; or global companies reducing or temporarily closing their Chinese factories, change is on its way. Based on this data, what does the global economic outlook entail?

In order to understand how the coronavirus might impact global economies, it’s important to put this in context of other global events. Based on a February 2020 Monetary Policy Report from The Federal Reserve, there’s a mixed outlook for recent and projected economic activity. While the Fed notes that oil prices have increased over the past six months of 2019, in part due to OPEC members cutting production and brief tensions with Iran in January 2020, The Fed attributes more recent drops in oil prices to the coronavirus and associated lowered global demand.

Due to China’s already slowing economy, the IEA is projecting 435,000 fewer barrels of oil on an annual basis during Q1 of 2020, the worst in a decade. Looking at statistics from the United Nation’s International Civil Aviation Organization (ICAO), airlines are expected to see revenue losses of between $4 billion and $5 billion in the first three months of 2020. With the coronavirus impacting China, thereby reducing outbound travel to Japan and Thailand, losses could be as big as $1.29 billion and $1.15 billion for each respective country.  

The Fed explains that in 2019, manufacturing has been challenged both globally and domestically. Citing the industrial production (IP) index, the first six months of 2019 saw declines in both domestic and global activity. For 2019, U.S. production dropped by 1.3 percent for durable and non-durable goods. This is attributed to trade issues with China, soft economic growth worldwide, less than aggressive investment from businesses, declining oil prices that lower continued production by crude producers and production issues with Boeing’s 737 Max airplanes.

However, despite the manufacturing slowdown in China, the United States’ manufacturing base shouldn’t see the same impact from the coronavirus. The Fed says that factoring in purchasing materials for production on the input end, and transporting, wholesaling and retailing products post production, the drop of 1.3 percent on the industrial production index equates to a 0.5 percent drop in U.S. GDP. For context, compared to the U.S. manufacturing employing 30 percent of workers 70 years ago, it presently employs 9 percent of workers.     

One way to see how the coronavirus might play out is to look at how SARS impacted China in 2003. Based on data from the National Bureau of Statistics in China, it took three months, during Q1 of 2003, where China’s economic growth dropped to 9.1 percent, from 11.1 percent. While a much smaller economy, on a global scale, in future quarters China was able to grow at an annualized rate of 10 percent, per Refinitiv. However, economists note that if SARS didn’t impact China, there could have been another 0.5 percent to 1 percent increase in annual growth.   

Another comparison with SARS is China’s retail sales. Refinitiv shows that May 2003 retail sales dropped to 4.3 percent. This is compared to between 8 percent and 10 percent for retail sales figures in March 2003 and July 2003, showing how serious the impact SARS made, but also China’s resiliency.

While the Chinese economy impacts the global economy today more than when SARS hit, it also has a more responsive economy and a larger middle class. Only time will tell as to the coronavirus’ impact, but based on past experience, it should only be a matter of time before China’s (and the global) economy bounces back to greater economic output. 

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