Wednesday, July 15, 2015
Saturday, January 23, 2010
Federal Reserve--what people should know
The most important thing to know about this entity is this, the Federal Reserve is not a part of the United States Federal government. The Federal Reserve is a privately held corporation. The owners of the Federal Reserve are kept confidential.
The main responsibility of the Federal Reserve, is the formation of monetary policy. Monetary policy deals with the supply of money and cost of money via interest rates. The Federal Reserve conducts open market operations, this principally involves the purchase and sale of US Treasury and other federal securities. The Fed also controls the discount rate. This is the rate charged to banks and depository instituions on loans they get from the Fed's discount window. The last leg of open market operations the Fed uses is reserve requirements. This allows the Fed to state the amount of money on hand that they require institutions to hold against deposit liabilities. This also allows the Fed to control the overnight rate banks charge other banks to lend money overnight.
The Fed also has regulatory oversight over banks that are part of their system, and some other financial institutions. On the site, http://www.federalreserve.gov/pubs/frseries/frseri.htm, the Fed also advises that they develop and halp administer major federal laws such as the Truth in Lending Act.
The Federal Reserve holds enormous power over peoples lifes. They control the cost of borrowing through their open market operations. The Federal Reserve Act of 1913 provides the authority for this entity. In the constitution, it is noted that only Congress shall have Power to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.
Everyone know that the time of 1913 was different from the late 1700's. I'm not saying the Federal Reserve is unconsitutional, as some pretty smart people claim. However, with the vote for Mr. Bernanke 2nd term approaching, I think it's important that people understand what the Federal Reserve is. They set monetary policy. Monetary policy should help the economy, and the citizens, and businesses that make up the producers of that economy.
I don't want to tip over the apple cart, but I am not satisfied with their recent actions. Their distribution of hundreds of billions to banks will have huge effects for people in the future. The Federal Reserve, with questionable performance since 1913 (a suit that cost $10 in 1913 would cost more than $211 these days), has never been audited by congress.
I wanted to bring to everyones attention how important the Fed is to everyone. The election of the Federal Reserve chairman is an important one. The financial meltdown we have recently experienced happened on Mr. Bernanake's watch. Should he get another 4 years?
The main responsibility of the Federal Reserve, is the formation of monetary policy. Monetary policy deals with the supply of money and cost of money via interest rates. The Federal Reserve conducts open market operations, this principally involves the purchase and sale of US Treasury and other federal securities. The Fed also controls the discount rate. This is the rate charged to banks and depository instituions on loans they get from the Fed's discount window. The last leg of open market operations the Fed uses is reserve requirements. This allows the Fed to state the amount of money on hand that they require institutions to hold against deposit liabilities. This also allows the Fed to control the overnight rate banks charge other banks to lend money overnight.
The Fed also has regulatory oversight over banks that are part of their system, and some other financial institutions. On the site, http://www.federalreserve.gov/pubs/frseries/frseri.htm, the Fed also advises that they develop and halp administer major federal laws such as the Truth in Lending Act.
The Federal Reserve holds enormous power over peoples lifes. They control the cost of borrowing through their open market operations. The Federal Reserve Act of 1913 provides the authority for this entity. In the constitution, it is noted that only Congress shall have Power to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.
Everyone know that the time of 1913 was different from the late 1700's. I'm not saying the Federal Reserve is unconsitutional, as some pretty smart people claim. However, with the vote for Mr. Bernanke 2nd term approaching, I think it's important that people understand what the Federal Reserve is. They set monetary policy. Monetary policy should help the economy, and the citizens, and businesses that make up the producers of that economy.
I don't want to tip over the apple cart, but I am not satisfied with their recent actions. Their distribution of hundreds of billions to banks will have huge effects for people in the future. The Federal Reserve, with questionable performance since 1913 (a suit that cost $10 in 1913 would cost more than $211 these days), has never been audited by congress.
I wanted to bring to everyones attention how important the Fed is to everyone. The election of the Federal Reserve chairman is an important one. The financial meltdown we have recently experienced happened on Mr. Bernanake's watch. Should he get another 4 years?
Monday, January 18, 2010
Estate Taxes Repealed---what does it mean?
We all got hit in 2008. 401k's became 201ks, lifes were ruined. What happened, and what occurred after the collapse is still being worked out. I hope, if people were aware of what was about to happen, there would have been a mass exodus into bonds. Taking preventative action is not comfortable for many people. However, we all want to keep what is ours--no matter what.
The government tryed to save the Bear Stearns, and AIG. These economic hardships lead to democratic control of the senate (filibuster proof 60 strong) and our first African American president.
There are a number of issues in 2010 that will affect american citizens. Wikipedia defines estate tax is a tax imposed on the transfer of the "taxable estate" of a deceased person, whether such property is transferred via a will or according to the state laws of intestacy. The federal estate tax, at this date, has been repealed. Currently, there is a $1 million gift tax exemption, a gift tax rate of 35%, and carryover basis subject to some exemptions. There is much speculation about what actiions an individual should take to take advantage of the current status. Nobody should believe the government isn't going to get their piece of the pie. However, it is standard practice to make sure they get it as far down the road as possible.
The best plan is to proceed with caution. Clients don't want their legacy to be taxed. Many have placed their assets into trusts, or set up ways in an attempt to minimize their obligations.
People have customary placed life insurance into a trust. The trustee of the insurance trust should be the original applicant and owner of the insurance. If the insured transfers an existing policy to the insurance trust, the transfer will be recognized by the Internal Revenue Service if the insured survives the date of the transfer by not less than three years. If the insured dies within this three year period, the transfer will be ignored and the proceeds will be included in the insured's taxable estate. It's important to establish a life insurance trust sooner rather than later. Changes in beneficiary's can be easily hanlded.
Setting up a life insurance trust is fairly easy, and helps more money go to your loved ones, or charity of your choice. A growing number of people are setting up enhanced charitable trusts, which supports their legacy, provides life insurance for their family, and provides a tax write off. We'll look at this vehicle in the future.
The government tryed to save the Bear Stearns, and AIG. These economic hardships lead to democratic control of the senate (filibuster proof 60 strong) and our first African American president.
There are a number of issues in 2010 that will affect american citizens. Wikipedia defines estate tax is a tax imposed on the transfer of the "taxable estate" of a deceased person, whether such property is transferred via a will or according to the state laws of intestacy. The federal estate tax, at this date, has been repealed. Currently, there is a $1 million gift tax exemption, a gift tax rate of 35%, and carryover basis subject to some exemptions. There is much speculation about what actiions an individual should take to take advantage of the current status. Nobody should believe the government isn't going to get their piece of the pie. However, it is standard practice to make sure they get it as far down the road as possible.
The best plan is to proceed with caution. Clients don't want their legacy to be taxed. Many have placed their assets into trusts, or set up ways in an attempt to minimize their obligations.
People have customary placed life insurance into a trust. The trustee of the insurance trust should be the original applicant and owner of the insurance. If the insured transfers an existing policy to the insurance trust, the transfer will be recognized by the Internal Revenue Service if the insured survives the date of the transfer by not less than three years. If the insured dies within this three year period, the transfer will be ignored and the proceeds will be included in the insured's taxable estate. It's important to establish a life insurance trust sooner rather than later. Changes in beneficiary's can be easily hanlded.
Setting up a life insurance trust is fairly easy, and helps more money go to your loved ones, or charity of your choice. A growing number of people are setting up enhanced charitable trusts, which supports their legacy, provides life insurance for their family, and provides a tax write off. We'll look at this vehicle in the future.
Saturday, January 16, 2010
Financial questions and answers
greetings everyone, hope the new year finds you happy, healthy and busy.
One of the things I wanted to do was try different things out. Always thought those people in starbucks typing away were silly, well now I am one of them.
I have tons of experience in real estate, finance, insurace etc. I wanted to pass along some information, answer any relavent questions people might have about products, or recommedations.
everything is confidential, and discrete. I hope that people will help me with questions I may have about certain topics--which I will try to keep to a minimum.
I am looking at people who are rolling over their 401ks, switching from investing in the stock market to a safer bet like an annuity or bonds. I think that people should be taking a look at how their retirment plan is performing. I don't see any way how social security will be around in 20 years--or if it is, no idea about what we will be getting.
People are operating on holding on, rather than growing. it is what it is, we have had a bad run lately. the key i think is to take a look at what you have, will it be enough for when you need it? that means figuring out how much you need, and that really depends on how youwant to live.
we are all living longer, and I want to live in a comfortable manner. think everyone feels the same way.
In any event. thanks for reading my blog, will try to give some examples in the future, hopefully add some value to someone out in cyber land.
have a great sunday, we are looking at a bunch of rain coming in.
One of the things I wanted to do was try different things out. Always thought those people in starbucks typing away were silly, well now I am one of them.
I have tons of experience in real estate, finance, insurace etc. I wanted to pass along some information, answer any relavent questions people might have about products, or recommedations.
everything is confidential, and discrete. I hope that people will help me with questions I may have about certain topics--which I will try to keep to a minimum.
I am looking at people who are rolling over their 401ks, switching from investing in the stock market to a safer bet like an annuity or bonds. I think that people should be taking a look at how their retirment plan is performing. I don't see any way how social security will be around in 20 years--or if it is, no idea about what we will be getting.
People are operating on holding on, rather than growing. it is what it is, we have had a bad run lately. the key i think is to take a look at what you have, will it be enough for when you need it? that means figuring out how much you need, and that really depends on how youwant to live.
we are all living longer, and I want to live in a comfortable manner. think everyone feels the same way.
In any event. thanks for reading my blog, will try to give some examples in the future, hopefully add some value to someone out in cyber land.
have a great sunday, we are looking at a bunch of rain coming in.
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