Today's Market
by Dr Invest
I hate carping on my government, but today my dentist was telling me about the affordable health care tax of 2.3% on all dental devices. (all medical devices as well) So when you need that dental crown, your dentist pays a tax into Obama care and that tax, whether you are rich or poor, is passed on to YOU! Some how, I am not liking this new government plan.
FSA or Flexible Savings Accounts, to be used for heath care, permitted a total contribution of $5,000 annually that was tax deductible. Now that tax deduction will be capped at $2,500 and on the remaining $2,500 YOU WILL PAY THE TAX. Geeze, we need to get that money out of the hands of the extraordinarily wealthy. Listen, the wealthy don't need FSA, nor do they need insurance. When you make a million a year, do you really need an FSA? If your employer pays for your FSA or Health Savings Account, you will be taxed for $2,500 of that whether you are rich or poor.
In the past, you could take-off a deduction for large medical expenses you paid during the year. In 2013, the threshold for medical deduction rise from 7.5% to 10% of your total salary....whether you are rich or poor you will pay the additional taxes. What is worse, you will pay the extra taxes while you are sick and at the most vulnerable financially. If you are a senator or congressman, and your are reading this, you should do more than hang your head in shame, you should sponsor a bill tomorrow morning to rescind this tax on the sick.
All of these taxes amount to billions of dollars to the government to pay for what will be one of the poorest health care systems in the world. Two of my friends, who are medical doctors, have already shared with me just a few of the rules and restrictions facing them as the implement the new obamacare plan. And the paperwork..... OMG. There are reasons government is inefficient and those who have longed for a new America are going to get their CHANGE THEY CAN COUNT ON..... while the government gets their dollars.
BACK TO THE INVESTMENTS
In my experimental portfolio of $10K, my total gains increased today, eventhough my overall loss for WMT was not erased. WMT started strong, but slid lower as the day continued... but still keeping .65% of its gains.
As long as the fiscal cliff remains, the opportunity for significant gains for WMT remains slim. If agreement is reached on the fiscal cliff, WMT could climb 3% to 6% before the end of the year. RTH gained 1.25% as the retail sector climbed in hopes of a political conclusion to the fiscal cliff.
Conclusion
Sadly, there is really no real change in our economy. The government keeps stimulating the economy; the market moves unpredictably and erratically; and the ever increasing rise in the market makes it almost impossible for investors to stay out of the market.
So moving cautiously and keeping a stop-sell nearby is almost a must whether investing in BONDS or STOCKS. My gold position in IAU is down 4.45% but the gold position was entered with an expectation of a rise in gold prices over the next nine months. The present portfolio position should produce decent returns before May of 2013, but being alert is important at this time. In spite of government intervention, the markets could collapse at ANY MOMENT. I definitely would not lose more than 6% on any stock or bond and would consider the 6% loss a gain if the market fell 30%.
What I am saying is if you lost 6% and the market fell another 24%, you would follow the falling stock with a stop-buy until it once again began to climb. This would put you in an excellent position to regain your 6% loss and add another 24% in gains as the market recovered. Don't be scared, be prepared.
(Note: the above article is for entertainment purposes only and not to be used as investment advice.)
by Dr Invest
I hate carping on my government, but today my dentist was telling me about the affordable health care tax of 2.3% on all dental devices. (all medical devices as well) So when you need that dental crown, your dentist pays a tax into Obama care and that tax, whether you are rich or poor, is passed on to YOU! Some how, I am not liking this new government plan.
FSA or Flexible Savings Accounts, to be used for heath care, permitted a total contribution of $5,000 annually that was tax deductible. Now that tax deduction will be capped at $2,500 and on the remaining $2,500 YOU WILL PAY THE TAX. Geeze, we need to get that money out of the hands of the extraordinarily wealthy. Listen, the wealthy don't need FSA, nor do they need insurance. When you make a million a year, do you really need an FSA? If your employer pays for your FSA or Health Savings Account, you will be taxed for $2,500 of that whether you are rich or poor.
In the past, you could take-off a deduction for large medical expenses you paid during the year. In 2013, the threshold for medical deduction rise from 7.5% to 10% of your total salary....whether you are rich or poor you will pay the additional taxes. What is worse, you will pay the extra taxes while you are sick and at the most vulnerable financially. If you are a senator or congressman, and your are reading this, you should do more than hang your head in shame, you should sponsor a bill tomorrow morning to rescind this tax on the sick.
All of these taxes amount to billions of dollars to the government to pay for what will be one of the poorest health care systems in the world. Two of my friends, who are medical doctors, have already shared with me just a few of the rules and restrictions facing them as the implement the new obamacare plan. And the paperwork..... OMG. There are reasons government is inefficient and those who have longed for a new America are going to get their CHANGE THEY CAN COUNT ON..... while the government gets their dollars.
BACK TO THE INVESTMENTS
In my experimental portfolio of $10K, my total gains increased today, eventhough my overall loss for WMT was not erased. WMT started strong, but slid lower as the day continued... but still keeping .65% of its gains.
As long as the fiscal cliff remains, the opportunity for significant gains for WMT remains slim. If agreement is reached on the fiscal cliff, WMT could climb 3% to 6% before the end of the year. RTH gained 1.25% as the retail sector climbed in hopes of a political conclusion to the fiscal cliff.
Conclusion
Sadly, there is really no real change in our economy. The government keeps stimulating the economy; the market moves unpredictably and erratically; and the ever increasing rise in the market makes it almost impossible for investors to stay out of the market.
So moving cautiously and keeping a stop-sell nearby is almost a must whether investing in BONDS or STOCKS. My gold position in IAU is down 4.45% but the gold position was entered with an expectation of a rise in gold prices over the next nine months. The present portfolio position should produce decent returns before May of 2013, but being alert is important at this time. In spite of government intervention, the markets could collapse at ANY MOMENT. I definitely would not lose more than 6% on any stock or bond and would consider the 6% loss a gain if the market fell 30%.
What I am saying is if you lost 6% and the market fell another 24%, you would follow the falling stock with a stop-buy until it once again began to climb. This would put you in an excellent position to regain your 6% loss and add another 24% in gains as the market recovered. Don't be scared, be prepared.
(Note: the above article is for entertainment purposes only and not to be used as investment advice.)
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