Why Do Stock Prices Grow Faster Than the Economy?

Candy J. Lee Financial Planning and Money Management celebrates its 22^nd year in business this year.  Doug Brooks called in 1992 to congratulate us on starting our new firm and we have been friends ever since.  Doug Brooks, is a retired business owner and author of Signal Integrity Issues and Printed Circuit Board Design and Electrical Engineering forthe non-Degreed Engineer, Doug is a frequent speaker to PCB designers and engineers.

If Doug can make non-engineers understand engineering, you will understand why I asked his permission to post a rather insightful commentary he sent to me after reading July’s Investment Commentary.  

Click here to read Doug’s Article: Why do Stock Prices Grow Faster than the Economy 

Solar Power for Two

When you own two electric cars the obvious next step is to install solar panels on your roof.  If your home is suited for solar (south facing roof and little shade) you can actually get solar panels for free*.  If you use solar panels and inverters made in Washington State you qualify for the maximum production income on all the power you put on the electrical  ($0.54 per kilowatt hour).  This incentive is good through 2020 and you also get a federal tax credit of 30% of the cost of the panels. 

The bottom line is the system will pay for itself in five to six years.  There is 100% financing available at a very low rate that uses the panels as collateral.  We used Puget Sound Cooperative Credit Union for our panels since they have an energy loan program.  *so it is really free except for the having credit liability for a couple of years.

We researched our options with A&R Solar, NorthwestWind and Solar and Sunergy Systems.    We found them all to be very professional, but ended up with A&R Solar due to their creative use of panels that allowed us to put more panels on our roof than the others.   We were very happy with the installation and service. 

We recommend you do your own research, and if you think you have the potential for solar, we highly encourage you to explore this opportunity.  It is a wonderful feeling to watch our utility meter running backwards.  

IRA-Owned LLC’s Payment to IRA Owner Results in Retroactive Income Tax and Penalties

(Congratulations to Professional Alliance member Warren L. Baker for his recent publication in the Journal of Accountancy!)

On October 29, 2013, the Tax Court held that the receipt of compensation by the taxpayer from a Limited Liability Company (“LLC”) that was almost entirely owned by the taxpayer’s individual retirement account (“IRA”) resulted in several types of self-dealing prohibited transactions. Thus, the IRA-owned LLC (“IRA/LLC”) automatically terminated as of the first day of the taxable year in which the prohibited transaction occurred (2005), resulting in income tax on the $320k constructive IRA withdrawal, plus a 10% early distribution penalty and a 20% accuracy related penalty.

Click here to read full article,

Courtesy of Warren L. Baker, J.D., LL.M, as published in the Journal of Accountancy.

Bavarian Anniversary

My husband, Rocke surprised me with a Bavarian retreat for our 39^th Anniversary.   We golfed at the Leavenworth Golf Course, stayed at Eyrie cabin at the Sleeping Lady Resort, enjoyed a spa day, putted through  Leavenworth’s Enzian Falls Championship Putting Course, had an art walk through the 67 acre art laced Sleeping Lady resort, and had plenty of time to explore Leavenworth.  We had a secluded cabin where one evening while we were sitting on the back deck a ten point buck was no more than 100 feet away and stayed with us the whole evening.  You can see the deer in the middle of the picture. 

Harriet Bullitt built the Sleeping Lady Resort by converting the old Camp Field where my husband’s siblings went to summer camp and his brother spent time as the camp’s care taker and a counselor/mountain guide which added a special feeling to the retreat.  It was a fun weekend and just before the worst fire of the century roared through Leavenworth.   Our thoughts go out to all those affected by the tragic fire.

1288 AD - Birth of the Corporation

In 1999, Seattle drew the world’s attention as protesters disrupted meetings of the World Trade Organization. The protesters beat drums and chanted against many things. Anti-corporation vitriol was a common theme.

Corporations were not always targeted by populists, politicians or students wearing butterfly costumes. Indeed, the history of the corporation—as a form of social organization with legal recognition similar to that given to an individual—predates t-shirt tie-dying by 2,000 years. Corporation-like entities existed in ancient India and Rome.

Click here to read full article

Broiled Salmon with Tomato Cream Sauce

We really enjoy salmon and are always looking for recipes that have unique flavors.  This recipe was especially exciting for us since it was so easy to prepare.  We always keep Costco frozen salmon fillets in the freezer as well as the lima beans and peas, so when a quick and satisfying meal is needed we turn to this recipe for fulfillment. 

Click here for the full recipe

The New-and-Improved Economic Indicators Dashboard

In 2009, the question on many people’s minds was whether the U.S. economy could recover from the impacts of the Global Financial Crisis.  At that time Russell created the Economic Indicators Dashboard to provide a visual summary of major market and economic indicators.  To help understand what “normal” looks like and where the economy stood relative to typical historical ranges for key indicators. 

But the economy is in a different place now that it was five years ago and the dashboard has been  updated in order to ensure it continues to be relevant and valuable. 

Click here to find more about the changes

Trends and Innovations: Amazon’s 3D Printed Parts Delivered by a Drone in Minutes

Just when you think things can’t get any faster you read about Amazon’s quest for your orders to be delivered at your doorstep within minutes of placing it.  Amazon’s vision of the future is having 3D printers in key locations to print items and deliver them by Drones to your door step.