Posted by Ray on October 29, 2008 under Main | 
Regardless of what happens next week the one thing we know that is going to be a fact is that there is no tax cut coming, for anyone. All those campaign promises are just the stuff to get the person in office and once they realize that Congress has to approve it and they have to pay for it somehow.
Both candidates say that there will be tax cuts, but it just is not possible. If either of them get what they want then we are, long-term, in big trouble. We have too much debt, as the financial meltdown has shown us, and there is no one to bail out the government if it fails, well no one we want to bail us out, huh, hum China…
No matter who wins the election there is no way we can keep taxes where they are. They will have to go up in order to boost revenue in the short-term. We do not want to see it happen, but there is simply no other way out of this huge deficit we have. Neither party can deliver the tax cuts or their talking point programs there simply is no money to fund them with.
When they figure this out then they will look to us, again, to pay for their pet projects and staggering debt. Taxes go up and down, but now they will have to trend higher. Sorry, and keep your political comments to yourself please as we believe both candidates are very, very flawed.
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Posted by Ray on October 28, 2008 under Main |
Nope, they have not and they will not understand the benefits of variable annuities. This market which has devastated retirement savings has had nothing that has gone up. Even gold has now declined in value, bonds are a no go, especially corporate bonds and stocks have been horrible.
However, a variable annuity with a living benefit has done something that no other investment has done, guaranteed retirement income without annuitization. All the financial writers in the world tell you to buy index funds and to stay away from those bad variable annuities. If you listened to them you would be sucking wind in the S&P 500 with 24% or more exposure to financial stocks – pre-market meltdown – and another 20% or so in technology which as also suffered badly.
Even with reality hitting them right in the face they still deny variable annuities their rightful place as a good investment alternative. They, the financial guru’s, just don’t get it. They do not understand that the Democrats will more than likely take the Whitehouse and Congress which will ultimately raise taxes, specifically the capital gains tax.
A complete Republican controlled government did not do well, spending went through the roof along with other questionable behavior, what makes them think that Democrats will do any better when they have a much stronger history of raising taxes. Actually Obama is the only political candidate that we have ever known to be, possibly, elected on the premise that he is actually going to raise taxes.
Your political affiliation does not matter, all you need to know is what we have been saying about the 15% capital gains tax is correct, it’s going higher. Regardless of who would have been elected taxes would need to be increased given the massive debt the US has, we just never had such stark honesty from a politician who is advocating higher taxes.
So, income taxes will go up for those “wealthy” Americans, we will see what the term wealthy means after the election, and capital gains taxes will go up. This means that all distributions from mutual funds will be taxed higher and it blows the argument right out of the water for the Suze’s, Liz Pullman’s and Scott Burn’s of the world.
Oh, did we mention your retirement income is also guaranteed?
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