2) The health care plan is a costly one no max extract male enhancement matter how you see it. In order to not increase taxes on the low to medium income individuals/families, they have created a new way to fund this project and perhaps fix some of the deficit that the United States currently has. This is however not good for high income individuals/families.
Since Medicare/Medicaid will have enhanced restorol sleep aid oversight, they will require additional funding. If you make over $200,000 per year, you will have an increase of Medicare tax by 1 %. The remainder of the bill requires new funding in which an "Investment Income Tax" will be added to all brokerage accounts (that are taxable, including dividends). This tax will be 3.8% of the total value of the portfolio. Employers puriglow cream will also have a "Cadillac Tax" which an employer will pay $10,000 PER PERSON per year in health care coverage. Employees will pay taxes on anything more than the $10k (which is 40% tax rate!). A flexible spending account which is used like a 401K or IRA (but for health costs rather than retirement) will pay a LARGE penalty if you use it for anything other than health! If you are a union worker or have great private health benefits, you will feel the impact on your coverage in some way due to the high costs to maintain this coverage.
In addition to these tax implications, President oral pain relief Obama plans (and may pass now more than ever to further fund this bill) to increase the long term capital gain that many high-net-worth individuals loved of only 15% to 20%. If this passes you must remember to add the 3.8% of the "Investment income tax" which will be a total of 23.8%. This is slated to take effect in 2013.
3) In order to combat these new tax implications you need to first re-evaluate your net worth and AGI (annual gross income). If you make over $250,000 you need to first stop being 100% in equities (in a brokerage account). This is 100% taxable and with a 23.8% tax including your tax bracket (which is currently not being discuss but I can guarantee they are thinking about it). First thing you must do is contribute the MAXIMUM of your employer's retirement account. If you are an employer and do not have one, GET ONE!!!!!!!!! Contact an advisor immediately and set one up (It can either be a pension plan, 401k, 403b, etc. Just make sure you create a retirement account). After this, open an individual IRA/Roth IRA and contribute the maximum amount (under the age of 50 is $5,000/ 50 and over is $6,000). You may not be able to deduct the contribution with a traditional IRA depending on how high your AGI. But why am I saying all this? Because retirement plans are tax DEFERRED. You can delay paying Uncle Sam until you retire and your tax bracket drops from the lower income you will receive.
After you have done this, re-evaluate your portfolio again. Depending on your current age you may want to also consider the following: Annuities, treasuries, municipal bonds (from your state). These investments are very tax favored. Annuities are tax deferred, guarantee an income for life (or you can choose a guarantee to a certain amount of years) as well as a death benefit! If the majority of your brokerage and retirement is in equities, only purchase index or fixed annuities (please see my previous article "Annuities in Your Retirement Income Planning" for details). The idea is to diversify your portfolio not just in the markets anymore but also in tax implications! Now more than ever this is vital!
Another strategy is to create a tax free brokerage account. In other words, open a brokerage account and invest only in triple-tax free municipal bonds (it must be in the same state as you reside). Reinvest all dividends to these bonds. Don't use mutual funds for this strategy! You need to actually own the bonds and you need to know what you are investing in. In a mutual fund that's not the case most of the time since the manager can change strategizes depending on the investment agreement (Please see my previous article "How to Pay Less Taxes Per Year Using the Feds Own Money!" for details).
4) A concern I do have is the major insurance companies that not only do business in Health insurance but also in Life/Annuities/accidental/Casualty/etc. Health Care insurance is a multi-billion dollar industry and the government is about to take that away from them (if the government is offering the same benefits with lower cost, why not go to them?). Having said that, depending on the company, this may or will affect the other business that they are connected to. Why am I playing "devil's advocate"? Because if a major portion of this business is about to lose money, this may affect YOUR other insurance that you have with them.
For example: ABC insurance does Life, Health, Accidental, Casualty, property, and annuities. You have ABC life insurance and an annuity contract. ABC makes half of their income from health insurance. Health Care bill takes in affect and most of ABC business is gone since half of their income is devoted from Health insurance. As a result, ABC will have their ranking lower and if they cannot make up the difference, ABC will have to answer to the government for why they do not have the necessary surplus to cover those that have life insurance or an annuity (let's not forget they have other business too...). Government may force reconstruction or liquidation. In conclusion, your ABC life insurance policy and annuity will be affected!
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