Eric Scott's Financial Blog

IRS Offers Year-End Tax Savings Tips

Eric L. Scott — Thu, 29 Dec 2011 03:37:59 +0000

I wanted to share a last minute article with you that should prepare you for next year’s tax season:

www.financial-planning.com/news/irs-tax-tips-financial-advisors-clients-savings-2676568-1.html

“15 Things to Know Before Retirement”

Eric L. Scott — Thu, 15 Dec 2011 18:26:56 +0000

I read this article on MSN Money and thought it would be something to consider if you’re planning to retire soon:

http://money.msn.com/retirement-plan/15-things-to-know-before-retirement

Unemployment rate falls to lowest since March 2009 | BenefitsPro

Eric L. Scott — Fri, 02 Dec 2011 17:36:56 +0000

An interesting article on unemployment:

Unemployment rate falls to lowest since March 2009 | BenefitsPro.

Are You Tired of Hearing About Europe Yet?

Eric L. Scott — Mon, 28 Nov 2011 20:05:29 +0000

It was another brutal week for stocks as fears related to Europe’s debt situation dominated headlines. According to CNBC, the S&P 500 logged its worst Thanksgiving week since 1932. [1] Ouch! For the week, the S&P 500 fell 4.7%, giving back almost two-thirds of its October gains. [2]

Another factor that contributed to the poor performance is that trading volume was exceptionally light for the week as investors pulled away from their computers to enjoy some holiday relaxation. The day after Thanksgiving is typically one of the lightest volume days of the year, and true to form, only 3 billion shares (less than half the daily average) changed hands on major exchanges as the stock market closed early at 1 pm. [3]

Even though the U.S. economic picture keeps improving, investors continue looking to Europe for signals. And unfortunately, the signals coming out of Europe are a mixed bag at best. Despite hopes that new leadership can pull the region out of crisis, more countries continue to struggle. Hungary’s credit rating was downgraded to junk status by Moody’s last week. [4] Belgium, which has struggled to implement spending cuts after 18 months without a government, was downgraded on Friday to AA from AA+ by Standard & Poor’s. [5] Italy paid a record 6.5% to borrow money over six months on Friday, and its longer-term funding costs soared far above levels seen as sustainable for public finances. High debt yields from major economies such as Spain, France, and Germany suggest investing in the region is perceived as being more risky. And last week’s poor auction of German bonds raised concerns that the debt crisis is spreading to Europe’s core. [6] This rash of negative news is really disturbing investors.

That’s why most of our managers were in cash or low-risk funds most of last week. We have hand picked our managers to keep our clients in low-risk and low-volatility. We do this as a defensive strategy in hard times. After all, the Roman Empire may have been one of the largest empires in history, but a poor defensive strategy shows that their empire now (Italy) is a lot smaller. We don’t want that same fate for our clients and their money. That’s why we focus on low risk and low volatility. Many of you even have your money in safe/secure funds so you don’t have the risk of losing your assets.

ECONOMIC CALENDAR:
Monday – New Home Sales
Tuesday – S&P Case Shiller, HPI, Consumer Confidence
Wednesday – ADP Employment Report, Productivity and Costs, Chicago PMI, Pending Home Sales Index, EIA Petroleum Status Report, Beige Book
Thursday – Motor Vehicle Sales, Jobless Claims, ISM Manufacturing Index, Construction Spending
Friday – Monster Employment Index, Employment Situation Report

Medicare Deadline Closing In

Eric L. Scott — Sun, 27 Nov 2011 20:03:35 +0000

With the deadline for changing Medicare prescription plans is little more than a week away, I felt it was important to let you know about a study that was released November 16 revealing that copays for brand name prescription drugs are going up.

In fact, the copays will increase 35% on average. That means that you’ll be paying 35% more out-of-pocket on average for your brand name prescription medications in 2012 than you are this year. The generic brands are scheduled to stay about the same and some may even decline in copay.

Remember open enrollment ends December 7 so if you need to check your prescription coverage and make any changes, be sure to do that as soon as possible.

According to Medicare, their prescription plans will continue to be priced the way they are this year – an average plan costing around $30/month.

However, Avalere CEO Dan Mendelson says “seniors need to look beyond the premium to understand their drug benefit. The more the cost burden gets shifted ontot he patient who needs the medication, the more important it is for seniors to understand that next level.”

Also, though I’m not here to endorse any particular plan, I want to remind you to look over your coverage carefully. Even the coverage in the top 10 plans varies from 80% of your prescriptions being covered to just under half. Something to keep an eye on should you decide to make any changes.

Shakespeare Nails the Supercommittee: News Analysis

Eric L. Scott — Tue, 22 Nov 2011 20:11:33 +0000

Did the famous writer, William Shakespeare, have something to say about our current economy and government?

Find out in this article by AdvisorOne:

Shakespeare Nails the Supercommittee: News Analysis.

5 Best & Worst Broker-Dealers: Q3 Earnings

Eric L. Scott — Wed, 16 Nov 2011 19:19:24 +0000

I read this article on AdvisorOne highlighting 10 brokerage firms. An excellent read.

http://www.advisorone.com/2011/11/16/5-best-worst-broker-dealers-q3-earnings

Fed Economists: Odds of Early 2012 Recession Exceed 50%

Eric L. Scott — Mon, 14 Nov 2011 08:31:45 +0000

I read this article about the chances of an early 2012 recession and thought it was an interesting read. I hope you’ll take the time to read it over. If you have any questions or concerns, call my office at (435)773-9444 to schedule a free visit.

The article is as follows:

Fed Economists: Odds of Early 2012 Recession Exceed 50%

What a Bad Day Looks Like…

Eric L. Scott — Tue, 08 Nov 2011 00:30:05 +0000

I received these pictures in an email from a client and wanted to share it with the rest of you.

Hope these brought a smile to your face.

A Message from Senator Orrin Hatch

Eric L. Scott — Fri, 30 Sep 2011 18:01:11 +0000

I recently read a message by Senator Orrin Hatch and thought the information would be great to share with you:

Fellow Utahns-

Last week, President Obama spoke to Congress about his plan for job creation . Instead of charting a new course to get America back to work, he laid out more of the same failed policies of more government spending fueled by tax increases.

I’m not the only one who sees the problems with the President’s approach. With every passing day, bipartisan opposition grows. The reasons are clear: our economy cannot shoulder more job-killing tax hikes and doesn’t need any more temporary, ineffective stimulus proposals.

What America needs is a lesson from Utah, where we know that pro-growth policies of low taxes, reduced spending, and limited regulation is the best path forward.

Those Utah values are my guide as I work to reform our burdensome and costly tax code , bring down our over $14.5 trillion debt, roll back the thousands of Washington regulations, and reform our near bankrupt entitlements.

These are the policies the American people deserve.

Sincerely,

Senator Orrin Hatch

Below you can read about some of the ways I am working in the Senate to improve Utah’s economy.

Please click here to watch the 3 minute video about why we must reform our entitlement programs.

Hatch, Congressional Western Caucus Unveil New Report to Jumpstart Job Creation in America

The Western Caucus’ “Jobs Frontier” report is all about putting forward solutions to create jobs and get more Americans back to work. It will help develop the next frontier of job creation efforts for our country.

Western states are not immune to the weakened economy, but many of our states – such as Utah – have lower unemployment rates than the national average and can help lead us to economic prosperity. One such area where the West can lead is domestic energy production.”

In the “Jobs Frontier” report, Western Caucus Members highlight over 40 legislative solutions that will create jobs by:

1. Increasing Affordable American Energy

2. Exploring for American Oil and Natural Gas

3. Strengthening the American Mining Sector

4. Overturning Washington’s Overreach

5. Promoting Agriculture, Ranching and Forestry

6. Supporting Recreation, Hunting and Public Land Access

7. Eliminating Backdoor Cap and Tax Regulations

8. Reducing Junk Lawsuits

To view the full statement click here.

Hatch Says Employer Mandate In Health Law Putting Jobs, Economy At Risk

The employer mandate is a threat to jobs and job creation:

The Congressional Budget Office has concluded that it will result in lower wages, hamper job creation, and move more people from full-time jobs into part-time work.
According to a recent report by the International Franchise Association, it will put 3.2 million jobs – you heard me right – 3.2 million jobs at risk.

The employer mandate destroys what works in America’s health system:

This mandate perversely incentivizes employers to not offer health insurance, because it’s less expensive to pay the penalty than to offer coverage itself.
In fact, 30% said they would definitely or maybe decide to no longer offer health insurance to employees, because of the employer mandate, according to a recent survey .

The employer mandate is impossible to implement:

No one knows how it will be implemented or enforced. This kind of ambiguity and complexity makes it even more difficult for employers to offer coverage.

To view more information please click here.

Hatch to Craig Becker: Did You Write the SEIU Intimidation Manual?

Earlier this week I to National Labor Relations Board (NLRB) member and former Service Employees International Union (SEIU) official Craig Becker to inquire about his involvement in union intimidation efforts.

The letter sent to Becker comes after the SEIU’s “Contract Campaign Manual” was made public. The handbook tells union members to purposefully try to damage their employers’ reputations by coming up with allegations against their employers and managers and to even break the law to gain leverage in contract negotiations.

The manual explicitly advises union members to engage in tactics designed to attack the reputation of an employer as well as its managers and to purposefully damage an employer’s relationship with vendors and customers.

To see what else the manual advises please click here.

President late on free-trade pacts

There is no denying the positive impact that our long-delayed trade agreements with Colombia, Panama, and South Korea would have on our economy. They would add around $14 billion to our economy, and increase exports by over $12 billion annually. According to the White House, the Korea trade deal alone would create 70,000 American jobs. The White House understands the economic benefits that would come from enactment of these agreements. Yet while millions of Americans suffer in a weak recovery with stalled job growth, the President inexplicably sits on them.

During a recent tour of the Midwest, President Obama admonished Congress to put “country ahead of party” and pass these three agreements — implying that Republicans in Congress are to blame for blocking them. Nothing could be further from the truth. In fact, Republicans have been working to get these agreements passed since they were signed over four years ago.

The problem lies with the president. Under long-established trade rules called Trade Promotion Authority (TPA), once a trade agreement is signed, only the president can submit it to Congress for an up or down vote. Right now, all three of these trade pacts remain sitting on the president’s desk.

To view the entire article about why we need to pass the Free Trade Agreements please click here.