Off the bat, we want to say thanks for all of the feedback we received after Thursday’s piece. We asked for your thoughts – and we got ’em.
One reader, a longtime member of the marine industry, added a new dimension to our concerns…
There are warning stickers on antennas for HF radios, VHF radios, HT radios (walkie-talkies) and Radars. Out of the group, the radars can cause the most damage the quickest, being microwaves (small wavelengths). The immediate damage from the radars would be to the eyes, and that would be on the 3cm (X-band) radars the quickest as their wavelengths are even smaller. Basically, short exposures up close would cook your eyes, being full of fluid.
There is no doubt in my mind that close exposure can be harmful. – Clifford W.
Subscriber Ray L. agrees that the problem of cellphone radiation is “serious and real.” In his note, he referenced Apple’s advice to iPhone 6 users – to keep the popular product away from their ears.
Still, many folks told us they missed our big presentation entirely. They want to know more about our potentially lifesaving miracle device.
Others asked how they can get their hands on one now.
We wish we had better news. Unfortunately, initial demand was so great that we are now totally out of stock.
Our supplier has agreed to rush us a case of the devices. But it’s a big order and, rushed or not, will take some time to get to us.
Rest assured… once it arrives, Digest readers will be the first to know.
Sincere thanks, again, for all of your feedback. Your responses prove just how valuable our Connections are.
We were reminded of this early Monday morning when we got a call from one of our economic heroes…
A GOOD MAN TO HAVE IN OUR ROLODEX
Stephen Moore is a famed Wall Street Journal columnist, CNN senior economic analyst and rabid advocate of all things that reduce taxes.
He called to tell us about his new project and his new website.
Using a host of metrics, Moore created an economic outlook for all 50 states. (You can view the project via the link in today’s Rooster’s Crow.) It was a fascinating exercise. Our conversation broached an array of topics ranging from taxes to unions and even pensions.
It reminded us that Moore is a good man to have in our Rolodex.
In the end, though, it was no surprise to hear Utah topped his list. It won mainly because of – surprise, surprise – its favorable tax rates.
The loser – New York – was at the bottom of the list (again, no surprise here) because of its less-than-favorable tax rates.
It was a fresh reminder that most folks fail to understand the absolutely destructive power of taxes.
It’s an especially vital idea for investors. It often means the difference between failure and liberating wealth.
Managed improperly, taxes can slash away more than a quarter of our profits.
We must do everything we can to keep Uncle Sam where he belongs… out of our pockets.
For our family, that’s where the kids come in.
OUR LIL’ WRITE-OFFS
Anybody who knows us knows our kids.
We’re one of those guys. Stand beside us for too long and we’re bound to tell you what they’re up to and show you some pictures.
Not only are they at the center of our life… but they’re a heck of a way to slash our taxes.
As we’ve discussed, one of the riskiest (and often dumbest) financial decisions today’s generation of youngsters must make is the decision to go to college… and how much to pay for it.
If they make poor decisions, they will be riddled with debt (several of our friends have kids with school debt that easily rivals a mortgage) and will earn a degree that’s virtually useless – like, gulp, puppetry or bowling management.
It’s one of the greatest threats to American kids.
We refuse to let our children get sucked into the trap. They will graduate from college – if that’s the route they choose – with zero debt.
They certainly won’t get a free ride – not from this cheapskate.
No, thanks to a little-understood strategy, their college is already covered.
Not only are we letting Father Time pay the majority of their tuition… but we’re slashing our tax burden as he does it.
Most serious investors have heard of 529 plans. But few realize their true power.
They are not just for young parents. Far from it.
They’re perfect for grandparents… aunts… uncles… anybody who wants to boost their own economic fate by lowering their taxes.
WASHINGTON DID GOOD?
Congress created the plans in 1996 as a way to spark interest in saving for college education.
Earnings generated through the plans are not subject to federal tax and, in most cases, are not subject to state tax when the money is used to pay for necessary college expenses (the list of qualified expenditures is actually quite expansive).
Right off the top, that could boost your profits by as much as 20%.
But in at least 34 states, the tale gets even better.
You can deduct 529 contributions from your state income tax each year. Because we live in Pennsylvania, we can remove as much as $28,000 worth of income… per beneficiary.
And what’s really powerful is the law allows us to transfer funds from one beneficiary to another without triggering a taxable event.
In other words, in many instances it makes sense for high-income earners to open their own 529 plans just for the annual deduction on their state income taxes.
They may never use the money, but it can easily be withdrawn or transferred to their children or grandchildren. (Many 529s, like Pennsylvania’s plan, also provide appealing inheritance and gift provisions as well.)
Another rather unknown benefit of the plans is that you can open an account in any state. You’re not locked into your home state’s plan.
We recommend looking at – again, no surprise – Utah’s plan. It allows savers to invest in a wide array of assets, including ultra-cheap Vanguard funds. Its most expensive option comes with an annual fee of just 0.38%.
The bottom line is that your kids, your grandkids… and even the neighbor’s kids are likely going to college. And it will be expensive.
Manage it poorly, and they could start their working lives overwhelmed with debt. It could ruin them.
Manage it right, however, and you can invest for their education and lower your tax burden along the way.
Our children have turned out to be our greatest gift… they’re also a great way to slash our taxes.
Our friend Mr. Moore would be proud.