Social Security and Medicare Figures for 2015

The Social Security Administration (SSA) has announced that Social Security and SSI beneficiaries will receive a 1.7% cost-of-living adjustment (COLA) for 2015.

The Centers for Medicare and Medicaid Services (CMS) has also announced next year’s Medicare costs.  The standard monthly Medicare Part B premium will be $104.90 in 2015, the same as in 2014.  However beneficiaries with higher incomes (individuals with taxable incomes of more than $85,000 and couples with taxable income of more than $170,000) will pay more than $104.90 per month because they must pay an income related surcharge.

Click here to read other important Social Security and Medicare figures

Trends and Innovations: Young Blood

For years scientist have known  that if the circulate a young mouse’s blood through an old mouse the old mouse can run longer, has improved memory and rejuvenates its crusty old heart.  They found that by just introducing one particular protein found in blood, call GDF11 they get the same results.   

 A Harvard scientist named Amy Wagers is already working on commercializing GDF11 which is found in human blood too.   PS: Remember to keep growing your investments because you never know when they will find the cure to aging.   

‘Remarkable’ Therapy Makes Old Mice Young, May Hit Clinic This Year

The Rainier Club Guest Chef's Table Experience

When you love to cook like Rocke and I do, chances are you also love to eat, so it makes for a very special evening when you get to watch a master Chef like Bill Morris at work in the Rainier Club kitchen. Rocke and I enjoyed an incredible eleven course meal with wine parings all prepared by Chef Morris. Then to top the evening off, we savored some excellent Absinthe. Many thanks to Lisa and Dave Mayfield for sharing this wonderful venue with us.

The Rainier Club just added Absinthe to their venue--the long banned drink known for its hallucinogenic properties.  In moderation it is said to help promote sleep and pleasant dreams.  We chose to go with a milder version; although it was still definitely something to sip in small quantities. 

Each menu item has a link with a more detailed description and picture.

Courses:
Amuse
Maine Lobster Salad
Crispy Duck Tongue Cocktail
Smoked Vanilla Basted Foie Gras
Grilled Hawaiian Opah
Apéritif
Spice Crusted Venison Loin
Artisan Cheeses
Dessert
Second Dessert
Absinthe

Martha Stewart French Toast

We started fsic over two decades ago; my husband was laid off for a short period of time, so he helped us out at the firm.  One day while he was eating lunch he turned on the TV to find Martha Stewart making French toast.  He wrote her recipe down as she cooked it—you had to write things down back then because the internet didn't archive like it does today.  We tried her recipe and loved it! Since then is has been an annual tradition to make Martha Stewart French toast for every first cold weekend of fall, like she suggested on her show. 

The key to the recipe is the Brioche bread.  We loved the Nantes loaves from La Boulangerie, a French bakery ran by a very skilled Vietnamese baker up until he retired and closed the bakery.  Brioche Nantes loaves are full of butter and make this recipe incredibly decadent.
  
One fall weekend, Rocke and I headed out to run errands and ran into each other at that French bakery, we both had felt the traditional call of this recipe.   

Click here for the recipe.

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.