In This Issue
We hope you have enjoyed your summer months with your friends and family. This is a great time to share all your blessings with the ones you enjoy the most. We have had the pleasure of spending time with many of you at appointments and at our parties this past year. We are blessed to have such wonderful clients, working for you a pleasure.
NEW!!! The MPT & Life Coaching Series III Boot Camp
Wednesday August 26, 2009, 9 AM – 4 PM at Phyllis’ home.
We teach the “Cliff Notes” of each topic! NO ONE has taken MPT Series III (IE Classes #9 - #12) and most clients have NOT attended Life Coaching classes #2 - #4! Come and join us at Phyllis’ house. We might move to another location if needed. Bring your class binder!
RSVP to Deb by August 21 to reserve your seat at the August Plymouth Boot Camp and tell her which classes you will be attending. Most clients have taken Life Coaching #1, True Purpose for Monday/Life, so if you want to take a dip in the pool during that class, bring your bathing suits! Dress casual!
Advisory Fee Refunds
Some clients who moved to the new US Bank custodian are receiving refund advisory fee checks, as fees are collected for the coming quarter, and now your TCA account is closed. The prorated refunds are automatically generated from Matrix’ accounting system, when any account closes. Then, when the system sees that your new account is opened at US Bank, your new accounts’ fees will be prorated.
Mark Matson
You can see and hear Mark Matson LIVE every Tuesday 3 PM EST on http://www.ustream.tv/MarkMatson . Or, go to www.MatsonMoney.com the following day to see the same hour long presentation.
US Bank Custodian
If you have moved accounts to US Bank (from TCA), please make sure any distribution requests to TCA have been replaced with US Bank. US Bank fees are lower than TCA’s for most accounts between $28,000 and $500,000. If you have not been contacted about moving to US Bank to save fees on some or all of your accounts, please contact Deb. This change is NOT a taxable event. It’s just paperwork.
Here you can see all the details of your Matrix account and also request copies of your applications. If you click the Show Zero Accounts tab, you can also see the history of your closed accounts.
Plymouth MPT Series I & II Boot Camp
Congratulations July 2009 Boot Camp attendees! We had another successful MPT Series I & II Boot Camp (Investor Education Classes #2-#8) this past July. About half of the attendees were repeaters, and it is amazing to hear how much more they learned the second and third time around! Each time you hear MPT explained, your understanding increases. Come and join us next time!
Email or United States Postal Service?
We are a virtual company and prefer to use email, but if that does not fit your lifestyle, we are happy to accommodate your needs. Provide us with your spouse’s email address so they can get our communications too. If you prefer our communication to come by regular mail instead of email, just let Deb know.
Annual Appointments
Phyllis still has some time in mid to late August for appointments. She and Maria can also do them over the phone (Skype) Sept. – October. Call Deb to set up time. Maria and Deb are always (Phyllis is usually) available by email. PLEASE DO NOT hesitate to contact us.
Helping Your Youngest Heirs
- Write down all the names of those who you want to help: children, grandchildren, great grandchildren, etc. Do they all earn money? Not necessarily a paycheck, but some type of compensation? Younger loved ones could help mommy clean the house, deliver newspapers, empty the junk, put out the garbage, snowplow the driveway, babysit, or rake the yard, however they must get paid a reasonable rate. Just make sure mom and dad keep good records of the work and their payments.
- They all qualify for a Roth, Do they have one? If not, help them now, before the end of 2009, so this year can be counted as year #1 as a Roth cannot be touched for 5 years for college education costs or a home purchase.
- Your young heirs do not have to use their own money…the money for their Roths can be given to them by you or other adults.
- Why start now? The sooner you help your loved ones, the better their future retirement and college savings! A young Roth IRA owner who contributes $500 a year receiving a 7.2% return:
- Contributes only 9 years from ages 10-18 will have $111,982 at age 60
- Contributes 38 years from ages 22-59 will have $97,084 at age 60
- Or, the young investor who continues to contribute for 50 years from ages 10-59 will have $233,308 at age 60.
- Why is a Roth better than a 529 college savings program?
- 529 plans have extra layers of fees that reduce investment returns and have a limited pool of investment choices.
- 529 plan distributions of earnings that do not meet the qualified educational expenses exclusion are taxed at ordinary income rates and incur a 10% penalty.
- 529 plan distributions can only be used for education.
- The Roth has non-penalized early withdrawals for payment of qualified higher education expenses for the Roth owner and eligible family members.
- The early withdrawal exception eliminates the 10% early withdrawal penalty on Roth earnings however principal comes out tax free, after the Roth is 5 years old.
- Roth accounts are excluded from the Federal Free Application for Federal Student Aid calculations while 529 values are included in the asset calculation.
- Ways to help your younger loved ones get their own MPT Roth:
- Teach them to save 20% of their earnings, and you match it, so they can save at least $500 per year into their Roth.
- NOW…give them an annual exclusion gift. You can put their gift directly into a Matrix Roth for them, after they sign all the paperwork to get it started. Then once they get to college, they can withdraw Roth money for college expenses. Help them get their Roth value up to $5,000 ASAP.
- Name your loved ones as your Roth’s beneficiaries, so when you pass away, they can take their beneficiary required minimum distributions and put them in their own Roths…100% TAX FREE!
- Call Deb now to get your loved ones’ Roths started this year, so they already have their first year done by 1/1/2010.
Rebounding FMF Portfolio
Mark has noticed that the Free Market Funds are rebounding slightly faster than the “standard” MPT portfolios. If your accounts are not yet moved to the FMF, and you would like to move, please do before the market further rebounds. Reminder: any taxable accounts will have realized gains or losses, so if your taxable account is low, now is the best time to move it. Retirement accounts of course will have no tax consequences due to this move. Contact Deb for the paperwork.
Convert Your IRA Jan. 2010
Most of our clients no longer have traditional IRAs, if that is you…still read on, so you can give your family and friends this advice. The US Legislature voted to eliminate the $100,000 IRA conversion income ceiling for 2010 and also is allowing the converting taxes due to be paid over the next two years. We are not sure if the IRS will continue this opportunity, so get your paperwork signed and conversions done! Seeing many accounts are still down some, it’s best to move them ASAP, after Jan. 2, 2010.
Converting Your IRA to a Roth IRA is a Taxable Event!
If your tax bracket is below 15%, and you think you might not live another 8-10 years, the benefits might be a “wash”, so you might decide not to do this conversion. For clients who plan to live longer than 10 more years plus have a 15% or higher federal tax bracket…it is very important to do, so it can grow tax free forever! We will send all Matrix IRA owners the IRA Conversion paperwork to you by October and would like it returned to Deb by end of November. We will then make sure the conversion forms get processed the first week of January, 2010. You can either pay taxes on a lower amount April 2011 and April 2012, or pay taxes for the rest of your life on the rebounded values. If you need us to walk you through the options, just contact us. If you do not already have a ROTH, this needs to be set up before the end of this year. Please call Maria with questions or Deb for the paperwork.
2009 Pool Party
A great time was had by all! God watered the flowers in the early morning, and then gave us a gorgeous day for the party! The pool and hot tub were well used. Some of the children and grandchildren did not even take time from the pool and hot tub to eat! The caricaturist, balloon, and tattoo artists were kept very busy the whole time! We are happy that some of the Ministry Game MPT questions were correctly answered by the clients and guest! We gave away $2,500 to your favorite ministries. Thank you for bringing so many of your friends and family members!
Pass Them Out!
We know you know, but it is good to remind you. We expect you to share your joy about your Free Market Peace of Mind with at least two households per year. When your favorite people ask you why you are not frustrated about the economy, give them two things: The Investor Awareness Guide booklet and The Seven Deadly Investor Traps CD. Just comment, “read and listen to these and then you will see why we have Peace of Mind.” We frequently give you more sets so you will be ready to share! Please contact Deb to replace the set you just gave out!
Income Too Large for a Roth?
If you do not qualify to contribute new money to a Roth, (single $105,000, married $166,000) do a Non Deductible IRA. Your contribution maximum is the same as a traditional IRA and Roth: $5,000 if younger than 50, or $6,000 if 50 or older. As long as the IRS allows IRA conversions without an income cap, convert 99% each year to your Roth. NEVER combine Non Deductible IRA money with Traditional IRA money. They must be kept separate. You will only be taxed on any gains, as you don’t claim the IRA deduction on your taxes. Call Deb to get the paperwork to open your 2009 ND IRA during this calendar year and while the market is still “soft”. We want all paperwork completed by Thanksgiving.
Stock Market Game Taught at School?
Do your children or grandchildren play the stock market game at their school? Ask them! Ask them also if they are being taught the Free Market Philosophy (Modern Portfolio Theory). If not, offer to sponsor a speaker on the alternative way to invest (MPT). We are happy to speak FREE to high school staff and students, teaching them there is another way to invest, instead of speculating and gambling in the stock market. Call Deb with the teacher’s name and contact information, and we will make all the arrangements. If you live outside of MI, we will also do this for your schools, when in your area.
Share the Wealth
Don't keep all this good information to yourself – "share our wealth coaching advice" by forwarding this newsletter to friends and family members you really care about!
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