Estate Planning is something attorneys do and not insurance agents, financial planners or stock brokers. A lot of insurance agents call themselves ‘estate planners’, but I still think their main job is to sell insurance. Still some of those mentioned specialties stick their nose under the tent and call themselves estate planners. Estate planning has to do with drawing up documents on who gets what, who’ll take care of the financials when someone is incapable of or unable to, and, if wealthy, how to legitimately reduce estate taxes. Some even say that a Trust avoids probate. It does but so does a will and naming beneficiaries. For the record I don’t claim to be an estate planner and have an attorney who does that for my family. 
Lately there has been a lot of noise in the press and other media about ‘tricky’ tax methods to reduce estate taxes. First, and last, there is nothing tricky about utilizing current tax law and implementing it for use. That’s why it’s called Tax Law. That being said, for most of us who have less than a $3 million dollar estate; we don’t need aggressive or complicated estate planning methods. What most of do need is a will. We don’t need a trust unless we desire to (1) Have income paid to an individual or charity over an extended period of time (2) Care for a child or adult incapable of caring for themselves. Some people use scare tactics to make other people create Trusts that do nothing that a named beneficiary and a simple will would accomplish. Unless you plan on establishing a charitable trust or create an Irrevocable Trust you are best served to keep things simple. Unverified numbers state that 3 out of 5 adults do not have a will. That’s basic. If you don’t get one. They’re not expensive and will ultimately save someone grief down the road. And, always, review and update ever two years. Things change.
what a difference a week makes…Syrian war drums on the global back table. Still there are four reasons, according to the Washington Wire in Sunday’s WSJ, why the deal could fall apart.
- The Syrian government may not want or cannot make full disclosure of all chemical weapons.
- Syria may stall and not give full and unfettered access to all sites.
- Russia and US have established an aggressive timetable and want it done by November.
- Russia and US may not be able to get past their agreement first steps.
Client and I talking and she complained that her account wasn’t making money…But, you are, I corrected. Not according to my statement, she said. It shows right there under the heading that’s labeled yield, she complained, I’m only making 1%! Of course, you and I know, that yield is not the total return on the mutual fund or stock but what the interest or dividend percentage is being paid. And, when you look at your statement make sure you know where you were at the end of 2012 and where you are now. That’s the easiest way to chart your progress.
Monday Markets Rocked…but not because of fundamentals. Fed- Possibly- Be- Chief Larry Summers tossed in the towel on his nomination Sunday last and markets rejoiced Monday. Traders also had to cover their shorts, according to some whispers, leading to triple digit Dow.
Mitch Zacks, wrote in his ZIM Weekly Update, of 9/15/2013, ‘ There will always be weakness in the economy. Right now the positives outweigh the negative…and the bull market should continue for the foreseeable future. I don’t believe a full-blown market crash is imminent. Stick with your long-term investment plan.’
First It’s The Largest Pork Processor, Smithfield, sold to the Chinese. Now It’s Our Chicken Nuggets green lighted to be processed in China for consumption in the U.S.A. 
According to the September 17th Salon.com the FDA earlier this month green-lighted four Chinese poultry plants to send processed chicken to American markets. The deal is the chickens will be slaughtered in the U.S., sent to China for processing, and come back for soups, nuggets, patties, hot dogs and whatever; all with No Oversight. Yep, no FDA in China. Economists contacted have wondered how Chinese processors can do this economically given the logistics. Which raises the question on what kind of short-cuts will be found in our patties, nuggets and dogs. The chicken processing biz is at best the foulest and riskiest in normal times let alone outsourcing to a country that has a history of poisoning baby food, pet food and was recently responsible for 44 deaths selling 46-year old chicken feet!
Stuff I Found While Looking Up Other Stuff
Germany now outsources elderly parents to Poland’s nursing homes. Bloomberg.com September 18th written by Naomi Kresge. ‘Germany’s migrating seniors are an early warning sign of a challenge of global proportions.’ With increasing nursing home health care costs rising many German families are seeing their savings being spent caring for their elderly parents. 
The solution, be it good or bad, is to take them to less expensive care in neighboring Poland. Insurance in Germany only pays half the cost of senior care. Costs for nursing and health care in Germany, as in the U.S. is expected to grow higher. The solution, in a country that is expected to have one of the world’s oldest populations by the year 2050, is to export parents to one-time Polish resorts now redesigned as long-term care facilities. The problem the United States faces is which country will we outsource our aging and growing Boomer generation? Habla Espanol?
Got Your Flu Shot? 
SURPRISE! A REAL STUNNER! THE FED FOOLED EVERYONE BY NOT TAPPERING!
Wednesday just about every strategist/investor/trader/broker was tuned in to the Fed announcement at 2PM and was shocked as the Federal Reserve announced that business would continue as usual. The Fed would continue to buy bonds and mortgages to the tune of $85 billion a month for the foreseeable future. The Street was expecting, according to WSJ, Bloomberg and others, at least a cut back of $10 billion a month. The Fed also downgraded its view of the economy and expects GDP in 2013 to be in the 2% to 2.3%. It also cut its forecast for 2013 down to 2.9%-3.1% from 3-3.5%. Before the announcement markets were slightly off but as soon as the Fed spoke markets were off to the races, including gold. Howard Gold in his MarketWatch.com commentary wrote that the ‘Fed postponed the moment of truth.’ He expects that a larger correction may now be in store when the Fed does eventually ‘bite the bullet’. There was a significant amount of money on the sidelines when the announcement was made. Global stocks, bonds surged on the Fed surprise, reported WSJ. Scott Jamieson at Kames Capital in London, said, ‘Equity and bond markets are currently heaving a huge sigh of relief, a sentiment not being shared by the U.S. dollar.’ Everyone pretty much expected a nice sized correction and were preparing for that eventuality. The only thing not known was how large a correction and for what length of time until the markets could fully digest the extent of the Fed taper. Only it didn’t come and caught investors by surprise. Markets in Asia and Europe also joined in relief on Thursday morning. Pullback Thursday, as expected.
Gross, Gundlach Cheer as Fed Holds Off. Retirees and those who fancy fixed income and especially bank cd’s can expect low interest until 2015, said Scott McGough, director of fixed income at Glenmede to Think Advisor. The policy rate will remain at 25 basis points for a very long time.
Ka-Ching! ObamaCare May Turn Into a Tax Cash Cow. Here are some of the reasons folks won’t enroll:
- Can’t afford the premiums
- Don’t need health insurance
- Won’t support ObamaCare
The penalty for not buying is $95 per adult in the family or 1% of family income, whichever is larger. People interviewed at CNNMoney on September 20th said they’d rather pay the fine than buy insurance they didn’t need or afford at $300+ a month. Even with government subsidy for a family earning $50,000 the cost of insurance would be about $4,700 with a $1,300 subsidy. The penalty about $500.00. Anyone not currently covered by employer health care or Medicare has to sign up for the federal national health insurance.
The Week Ended On A Bummer! Down 185 points at the close. Options expiration, Fed worries as conflicting stories whispered or Budget Battles in Washington as the House attempted to rid the nation of ObamaCare. All may have contributed to the sell-off. Still ETF Trends reported that a buying spree in September ETFs specifically the S&P 500 saw $12 billion of new money. Chris Hempstead, director of ETF execution services at WallaceBeth Capital reported that the August hysteria outflows was being replaced with inflows…
HOW LONG WILL YOUR RETIREMENT MONEY LAST? Go to my web site resources section and find the calculator that is labeled Retirement Portfolio Lifespan. You may be surprised to learn how maximizing your withdrawals will allow your portfolio to last a decade or more.
thanks to bob, dor & dean
until next year!
QUESTIONS, CALL PAUL @ 586 295-0430 or write him at pstanley@westminsterfinancial.com. Share this blog with someone who cares about their money.
SECURITIES OFFERED THOUGH WESTMINSTER SECURITIES, INC. MEMBER FINRA/SIPC.
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