Trump proposes more tax breaks for the wealthy

"The Trump administration is considering adopting a $100 billion tax cut that would benefit primarily the rich through a procedure that wouldn't require congressional action. The US Treasury Department could amend regulations to let taxpayers account for inflation when calculating tax liabilities on capital gains, Secretary Steven Mnuchin says." (Retirement Security SmartBrief, 7/31/18). Details at:
https://www.cnbc.com/2018/07/30/treasury-contemplates-how-to-cut-another-100-billion-in-taxes.html

Thinking of loaning money to family or friends?

Lend to Friends and Family—But Only if You Follow These 3 Tips

By Pete Chandler
"Don't invest money you can't afford to lose. The same holds true with lending money to friends and family, but with an added caution. A 'friendly' loan can be a good way to lose money—and tarnish a good relationship with the borrower."
According to a study conducted by Lending Tree, "almost a third (28.7 percent) of those who borrowed money from, or loaned money to, a family member reported suffering negative consequences."
"If you're considering lending money to a friend or a relative, here are three tips to make friend-and-family lending succeed."
1. "Lend only what you can easily spare."
2. "Loan like a bank."
3. "Lend money with eyes (and heart) open."
Read the full article and details at: http://www.finra.org/investors/highlights/lend-friends-family-3-tips?utm_source=MM&utm_medium=email&utm_campaign=S%5FAI%5F072418%5FFINAL  
 

What will be impact of exploding federal deficits?

For all those who delight in lower taxes, be aware of how massive and growing federal deficits will affect you (especially in your old age), your children, grandchildren and future generations. 
"US National Economic Council Director Larry Kudlow said the federal government's budget deficits in 2019, 2020 and 2021 may increase nearly $100 billion more per year than previously forecast. The annual deficit will rise above $1 trillion starting in 2019 if those projections hold true." Reported in the Retirement Security Smartbrief that summarizes articles. This excerpt is from The Wall Street Journal: "Deficit Projected to Top $1 Trillion Starting Next Year"by Nick Timeraos. As he writes: While President Donald Trump 'used to talk about creating such great economic growth to reduce the deficit, now you see a budget acknowledging a massive run-up due to policies he has supported,' said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, which supports debt reduction.
You can be sure that the Republicans will use the growing deficits to lobby for reducing Social Security retirement benefits and Medicare. 

Not enough to retire? Work longer or save more?

"A new study has practical implications for baby boomers in urgent need of improving their retirement finances: working a few additional years carries a lot more financial punch than a last-ditch effort to save some extra money in a 401(k)."
"This point is made dramatically in a simple example in the study: if a head of household who is 10 years away from retiring increases his 401(k) contributions from 6 percent to 7 percent of pay (with a 3 percent employer match) for the next decade, he would get no more benefit than if he instead had decided to work just one additional month before retiring."
Check out the details at The Squared Away Blog: http://squaredawayblog.bc.edu/squared-away/work-v-save-options-quantified/
While it is still a good idea to pay down debt and increase retirement investing after the kids leave home as retirement approaches... working longer will ensure a more secure retirement. also plan to wait until 70 to collect Social security retirement benefits.

"10 Tactless things I tell clients"

Financial planner Allan S. Roth wrote this article that provides profound advice in a very simple format. Much of what he has told clients are factors that I've also pointed out to my clients. Enjoy!
1) I’m charging you $450 an hour to tell you I don’t know the future. (I only charge $75/hour).
2) Investing should oscillate between boring and painful.
3) Is your goal to die the richest person in the graveyard?
4) No, you won’t have the courage to rebalance after a stock plunge.
5) You are borrowing money at a higher rate than you are lending it out and you aren’t going to make it up with volume!
6) You have a ton of cash and that is your riskiest asset.
7) Keep it simple stupid.
8) If it feels wrong, go for it. 
9) Get real!
10) I’m not right for you. (So far I've only told this to one client)       
Get the details at this link: https://www.financial-planning.com/opinion/10-things-financial-advisors-should-say-about-investing?utm_campaign=Jul%2018%202018-what_you_missed&utm_medium=email&utm_source=newsletter