That's The Bottom Line 02/22/25

at Asset Growth Associates. Our officers are located in Dallas and right here in Beaumont, Texas, where we offer investment, pension and retirement planning services, as well as income tax preparation for individuals, families, and businesses. We also assist people with their health insurance options as they transition onto Medicare. In short, we do it all here at Asset Groth Associates.

We've been servicing our clients in Texas and Louisiana for literally decades now, including representing our clients who may be having difficulty with the irs, often being able to negotiate a tax settlement, or occasionally help people to end up owing nothing at all, giving you a financial fresh start in your relationship with the federal government. Today, we'll talk about the upcoming income tax season and what changes you can expect this year that could potentially affect your tax return.

As well, we'll discuss some of the bigger political stories in the last week. Illegal border crossings are down dramatically in President Trump's first month back in office. There's a shocker, plus yet another plane crash involving a major airline Democrats Blaine Trump, but who should really be held accountable for the decline in aviation safety? Also, a second Democratic senator

announces her retirement. Whether it's the twenty twenty sixth Senate map look like in next year's midterm elections will provide way too early analysis. Later in the show, we'll reveal a dirty little secretly related to medicare The deadline for selling up for a new Medicare advantage plan inded back on December seventh, But did you know there's a separate deadline for people on Medicare advantage plans to revert back to original dedicare. We'll talk about how that deadline can

still impact your insurance options. Also in our solutions segment, we'll talk about how your personal risk tolerance can impact your choice of investments and when a potentibal protection plan may be right for you, including the tax implications for those types of plans. And speaking of taxes, I'm joined today by John Coaja, our resident tax professional here at assec or At Associates.

inflation measurements. The first is the standard deduction. It has increased for all filing statuses. The single status is almost fifteen thousand dollars at fourteen thousand, six hundred, marriage jointly is almost thirty thousand at twenty nine thousand, two hundred, and had a household as almost twenty two thousand dollars. In addition, you can't add on to these if you have a blind situation where you're sixty five or over. There are fifteen and nineteen hundred dollars add ons to

increase it even further. In the last eight years, the standard deduction has risen to the point that many people no longer take itemized deductions for property taxes, mortgage interest, or charitable giving. The increased standard deduction has also eliminated the personal exemptions credit, so for taxpayers to receive a W twoter pay check and take the standard deduction, the

chance of being audited is now non existent. For businesses mileage, the rate is sixty seven cents per year or per mile. I'm sorry, and it's best to keep all actual business auto expenses and a mileage log to be able to take the larger of the expense at the end of the year. Now, remember employees commuting to work is not considered deductible business mileage. Now, long term capital gains are taxed for equities that are held more than one year

and are layered for defiling status and income level. As an example, a single person has a zero rate for capital gains up to forty seven twenty five dollars and pays fifteen percent for the next four hundred and seventy one thousand dollars, so it's quite quite a range, and over that it's twenty five. This is an example of a progressive tax system. Teachers are allowed a three hundred dollars deduction for classroom expenses, and it's six hundred dollars

maximum per married educator couple. Now, a person can save up to twenty three thousand dollars for their four oh one K this year, and if over fifty, delimitus thirty thou five hundred. Remember four h one K plans can reduce your tax bill by reducing your tax bill income on your W two while saving for your retirement. IRA contribution smacks out this year at seven thousand dollars per

person or eight thousand if you're over fifty. IRA contributions can be made up until April fifteenth, so you have time to affect your tax bill if you want to set up an IRA now. Roth iras are different. They do not improve your taxes owed in the current year because you buy those with alfter tax money, but the promise is tax withdrawals from a ROTH account are tax free. Now thinking of taking your Social Security this year and

continuing the work. All Social Security are subject to payback if you are under your full retirement age earn and earn over twenty two three hundred and twenty dollars. The payback rate is one dollar for every two dollars over the twenty two thousand dollars floor, so if you earned one thousand dollars over the floor amount, you would pay back five hundred dollars to Social Security. There is a good change for home improvement energy credits this year. They

no longer have a lifetime limit. The forms change, a homeowner could claim a twelve hundred dollars total credit for their entire life now the credit can be claimed each year with any improvements made to the property. And here are some of the x tearing your doors, windows and skylights, central air gas, protein oil and water heaters, heat pumps, solar wind, geothermal fuel, and battery storage systems for the home.

Electric vehicles credits are still available throughout the seventy five hundred dollars and there's a four thousand dollars credit for used evs too. But here's a little secret. Alternative vehicle credits are non refundable. So if your tax liability is six thousand dollars and the AV credit will wipe out that six thousand dollars, but the remaining fifteen hundred dollars is lost and cannot be carried over to the next year. Be sure of your tax situation before buying an EAV

and expecting the full seventy five hundred dollars credit. I encourage you to call me and I can run a tax planner to determine how much of the credit you will received for an EAV or other tax situations you may have.

hundred er visit savemretirement dot com do it today. Taxes are everything. Let's make them work for you. Are you thinking about starting your Social Security benefits? Early Before you decide, let's talk about the big picture. Claiming benefits before your full retirement age, whether it's sixty six, sixty seven, or somewhere in between, can reduce your monthly income by up to thirty percent. That could mean thousands of dollars less every year, and once you start, there's no going back.

Here's the unintended consequence. That smaller check could limit your ability to enjoy retirement, cover healthcare costs, or leave a legacy for you and your loved ones. And if you live longer than you expect, those reduced benefits might not be enough. But don't worry. We're here to help. At Asset Growth Associates specialize in creating smart strategies for social security and retirement income. Will help you maximize your benefits

and secure your future. Call four oh nine eight four oh sixty nine hundred to day or visit savemyretirement dot com for your free social security analysis. Let's make sure your retirement works for you, not against you. Plan smarter retire bet.

the number of migrants arriving at the southern border. According to data attained by Fox News, during the first week of Trump's second term, daily crossing spelled at just over one thousand encounters per day. By comparison, in the final week at the Biden of imistration, we saw a number nearly triple at that level. Apprehensions by border patrol agents are down eighty five percent from this time last year. Clearly, by prioritizing the border and declaring a national emergency, President

Trump has completely changed the narrative. It remains to be seen, however, how much of an impact the border crackdown has on efforts to reduce human trafficking, particularly along our Ien corridor, as well as stemming the flow of dangerous drugs such as fentanyl. One benchmark we'll be looking at is if we see the street price of illegal drugs start to increase over the coming months, meaning less supply is getting

to the drug dealers. For a long time, conservatives have argued that our national drug epidemic is directly impacted by our border security. We're about to test that theory on the merits. Secondly, a second plane crash in under a month has brought the Department of Transportation under fire. This week, a Delta air liner attempting to land in Toronto did so on top of its fuselage on Monday afternoon, catching

fire on impact. Miraculously, no one was killed in the accident. Meanwhile, Senate Minority Leader Chuck Schumer of New York blamed the Trump administration, citing the president's recent cuts to the workforce of the Federal Aviation Administration and accused the president of quote making our skies less and less safe. Now. The problem with this criticism is that it runs surface deep. No cuts in personnelity AA were actually related to air

traffic control positions. In fact, the new Transportation Secretary Sean Duffy indicated after the DCA crash on January twenty ninth, that the administration would seek to expand the number of qualified aviation controllers employed. This first crash came literally hours

after Secretary Duffy had been confirmed by the United States Senate. Now, given to brevity of his time on the job and the fact that near missisipen rampant leading up to this first crash, it stands to reason that the blame would be more accurately assigned to the previous administration. Secretary Duffy accused the previous Secretary, Pete Buddha Judge, a twenty twenty Democratic presidential candidate who was appointed to the role by former President Joe Biden, of being negligent in his duties

during his four years in the position. Duffy claimed that ninety percent of the department had been working from home under the quote unquote leadership of Buddha Judge now Secretary. Buddha Judge oversaw a number of high profile failures during his tenure as Transportation Secretary, including the derailment of a train carrying hazardous materials in East Palestine, Ohio, just two years ago this month. In fact, a settlement of six

hundred million dollars was regently reached in that case. Now, going forward, it's safe to expect that our aviation system will come under increased scrutiny in the coming months. Finally, a series of retirements among Congressional Democrats could give an early indicator of how the party views its awe in

taking retaking control of Capitol Hill. Following the twenty twenty six midterms, Senator Tina Smith of Minnesota announced she will not seek re election in twenty twenty six, only sixty six years old, which is young for a retiring senator. She was appointed to twenty eighteen to succeed Al Franken, who resigned on grounds of sexual misconduct. Senator Smith would go on to win the special election that year, and was re elected to her only six year term in

twenty twenty by only five percentage points. This retirement comes as a surprise to many political analysts. This announcement comes on the heels of Democratic Senator Gary Peters announcement not to seek reelection next year. Peters represents the battleground state of Michigan, and this seat promises to be a prime target for a Republican pickup. With the Upper Midwest now a perennial battleground, Michigan and Minnesota could be two tough seats for Democrats to defend next fall. So let's look

at the big picture. As things stand right now, the Democrats hold forty seven seats under Caucus and will enter the midterms needing to net four seats to win back the Senate. There's only a couple of Republican held seats where the Democrats can realistically hope to be competitive. That's in Maine held by Susan Collins, and the Tilli seat in North Carolina. Republicans come in favored in both of those races. Even if Democrats did somehow flip those that

would only give them a two seat gain. Again, the Democrats need to net four given that Vice President jd Vance holds the tie breaking vote. Now, there are other GOP Senate seats at stake in Florida, Ohio, Iowa, and one here in Texas, but the Democrats are likely dead on arrival in all four of those. President Trump has carried all these states by double digits, and Florida, Iowa,

and Texas each feature high profile incumbents. The Ohio race is a special election where newly appointed Senator John Eustad will be on the ballot for the first time. You Stead, most recently the lieutenant governor of Ohio, replaced jd Vance after the Vice president took office last month. Former Democratic Senator Sheried Brown, who lost his seat back in November, is expected to challenge you s Dead, but Brown will face an uphill battle in any political comeback attempt as

a Democrat in the Buckeye State. Instead, the race is expected to be the most competitive of her seats build by Democrats. Georgia is the most vulnerable. In fact, Senator Ossoff probably comes into this race as the underdog. Michigan is another battleground state won by Trump and this race, as we just mentioned, is now an open seat race Minnesota. In New Hampshire will also be on the Republican radar, and even Mark Warner's seat in Virginia could be in

trouble if the Democrats have a really bad night. That gives the GOP five opportunities to pick up compared to only holding two seats that are in any real jeopardy. So what's the bottom line here. I expect Republicans to actually expand their Senate majority in twenty twenty six, which will allow President Trump a full four years of Senate

cooperation with his agenda. That includes the possibility of getting another justice or two nominated and appointed to the Supreme Court, which will make his legacy one of the most lasting on the Court in American history. If you think about it, he could have potentially appointed half the existant Court by the end of this presiesy, counting the three from his first term, and possibly as many as one or two this term. You could see Alito or possibly even Clarence

Thomas retire before the end of his term. So we'll be right back here on AM five point sixty kl v I.

cannot outlive. Whether it's retirement or building a legacy, A deferred income plan is the smart way to make your money work harder for you. Call us today four nine eight four oh sixty nine one hundred or visit savemretirement dot com to secure your future income with confidence. Act now financial piece of mind is waiting for you. Guaranteed income, guaranteed peace of mind.

is my risk number? Dot Com?

Ad after ad after ad. It never ends, right if you watch them enough. You've got one date embedded in your brain. December seventh. We all know that's the Medicare enrollment deadline. Right wrong. We've let insurance companies tell us bad information for so long. We haven't learned to double

check your information. December seventh is a deadline for two things, to sign up for your drug plan Medicare Part D, and to enroll in a Medicare Advantage plan or Medicare Part C, which has the effect of replacing your original Medicare plan with that of a private insurers. The proper term for this period is called the annual election period, not open enrollment like it's so commonly called on TV.

Insurance companies through this for marketing purposes, so much so that if you were to search for Medicare open enrollment right now, the AI generated answer will actually pop up as October fifteenth through December seventh, But that's actually inaccurate. It's just replicating what it sees advertised by the insurance companies. Open enrollment for Medicare is a one time event centered

on your sixty fifth birthday. Your rights of enrollment can be deferred past that point now, for example, if you're still working and carry group insurance.

hospitalization coverage. Now here's the dirty little secret that insurance companies that offer Medicare advantage plans don't want you to know about. There's actually another deadline every year whereby you can exit a Medicare advantage plan. Again, that's the same thing as Part C and return to original Medicare. That deadline is March thirty first, meaning you have through the entire month of March to go back onto Parts A and B of Medicare if you decide a Medicare advantage

plan is not for you. So one thing I've learned in my experience over the last decade is that a lot of people don't even know whether or not they have original Medicare or if they've replaced it with a private insurer through Medicare Part C. I've had numerous people sit in my office and tell me proudly I've got ABC and D, to which I respond, yeah, no, you don't. For starters, original Medicare has two parts, A for hospitalization

and B for medical. You're probably familiar with these because you see those dates on your red, white, and blue Medicare card. If you're on original Medicare, you probably also have a Prescription drug card called a PDP or a Part D plan. If you're on original Medicare, the federal government is your insurance provider. Uncle Sam has you on Part B, which is an eighty twenty plan with a

small deductible. This year it's two hundred and fifty seven dollars, and Part A, which has its own larger deductible for when you're hospitalized. That one is sixteen seventy six per benefit period. Also, if you're on original Medicare, you may have purchased a Medicare Supplement policy or a medicapp. These are secondary, not primary, insurance plans written by an insurance company,

and there's a card for that too. A lot of insurance companies in the medicare market righte both medicap plans and Medicare advantage plans, so that can definitely be confusing if you don't know what you're looking at. But a medicap plan is always secondary to Medicare, whereas a Medicare advantage plan is its own primary insurance. Most people on ritual Medicare also choose to purchase a Medicare supplement policy

to limit their exposure to out of pocket costs. Medicare advantage plans have potentially high out of pocket costs too, as much as ninety three to fifty a year this year, though oftentimes you'll pay a premium to buy that down. Original Medicare itself has no cap on these costs, which is why a Medicare supplement is so necessary. This plan caps you off at an extremely low out of pocket limit,

as low as zero dollars, possibly after deductible. So, as I just said, Part C of Medicare or Medicare Advantages is more commonly called replaces Parts A and B. Instead of the federal government, now a private insurance company becomes your provider. You continue to pay the premium that you pay for Medicare Part B. For most of you, that's one hundred and eighty five dollars a month, but instead the premium is transferred to the insurance company you're enrolled with.

You're also now subject to the individual rules in terms of the plan and the insurance company that provides it. You can know for sure that you've replaced your original Medicare with parts if you have a card in your wallet from an insurance company that says something like HTMO or PPO. These are types of network options for your insurance plan. Medicare itself doesn't have a network at all.

It's nationwide. That doctor's office either takes Medicare or it doesn't participates in an original Medicare plan don't have to worry about if their doctors take out one particular insurance company or another. Medicare advantaged patients, however, must only see a doctor that is contracted with that particular insurance company

regards us of that doctor's broader Medicare contract. The biggest difference between an HMO and a PPO plan is that the HGMO requires a referral to ce specialist when a network, whereas the PPO plan doesn't require a priory for at all. But in both cases, whether in HMO or a PPO, you must still stay within that network without approval to leave it, whereas original Medicare patients may go anywhere in the country to any doctor with a Medicare contract. Now

that's a huge difference in medical options. So what if I'm on a Medicare advantage plan and I don't want to be well, You've got through March thirty first to do something about that. You can exit your Medicare advantaged plan and return to original Medicare up until that point. But the question is, rather does it make sense to do so? The problem is that you're not always guaranteed the right to buy a Medicapp policy outside of the Medicare open it enrollment period. That's why the real open

enrollment period is so important to know. Again, that's centered on your sixty fifth birthday unless you defer it. If you don't have a guaranteed right, then you'll have to qualify for a supplement through medical underwriting. As we all know, as you get older, that gets tougher and tougher to do. You have less than a ten percent chance in your

seventies and eighties. So what's the bottom line? If you're not sure how your Medicare plan works, call me at Asset Growth Associates at eight four oh nine eight four h sixty nine hundred Option five for Jeff, don't go away. Our solutions segment is next. You're listening to that's the bottom line on news talk radio AM five sixty kl VII.

to reduce tax liabilities and maximize your retirement income. Whether it's choosing the right accounts first or minimizing capital gains, or tailored strategies ensure you are keeping your investments efficient and your income steady. Take control of your financial future. Let's make your money last longer and work smarter for you. Call four to oh nine eight four h sixty nine hundred to day or visit it savemiretirement dot com to

schedule your free consultation. Your investment deserves a plan as unique as your goals. Smart investments, smart tax strategies. This is Gene Valerati of Asset Growth Associates. If you've been watching recent news, a few banks have had a run where customers panic and withdraw all their money at once, causing the banks to fail. If that isn't worrying enough.

On January first, twenty twenty three, the Federal Reserve set a new low reserved trumpch for net transaction accounts to six hundred and ninety one point seven million dollars, meaning that banks with net transaction account balances up to this amount are subject to a reserve requirement ratio of zero percent. You heard me right, zero reserve requirements Forget fractional reserve banking. How about zero reserve banking? Why would the Federal Reserve

create this environment of uncertainty? If this is of concern to you, and it should be, we can show you how to protect yourself and how to locate and utilize financial institutions with very real reserves, not zero reserves. Give us a call an Asset Growth Associates one eight six six seven two eight three six nine seven. That's eight six six seven two eight three six ninety seven. You can also reach us locally in Beaumont, Texas by dialing four oh nine eight four oh sixty nine hundred.

So here at Asset Growth Associates, we have two main divisions of our wealth management practice. We have the brokerage side, which concentrates on the management of securities in your portfolio, which is suitable for people who want to have a stake in the market. We also have the principal protection side, which is best for people who want the potential for returns without the market risk. Different people have different levels

of risk tolerance. In other words, how much risk am I willing to it up with in order to achieve my financial goals. Now, for some people, that's quite a lot.

describe it as there. I mean, it's a qualitative assessment anyway, not quantitative right, Or to put it another way, I can only describe how much risk I'm willing to take with words. There aren't really any numbers to describe that. That's a problem. We have a solution for here at Asset Growth Associates. If you're not sure how risk tolerant you are, you should really check out this website. Go to what is my Risk Number dot com or simply google that question what is my risk number?

right or wrong answer here. You could be good cruising down the road at an easy thirty five miles an hour, or you might prefer to be hauling at an eighty five down the freeway like me and I must thank. The point is to find the investment vehicle of your choice, one that travels out of speed that you're comfortable with. Once you have this number, call us. We'll be able to sit down with you and go over what it means and help you discover what investment vehicles you're comfortable

driving in. Some people are surprised with what their answer is. Don't worry if the result doesn't make sense to you, take it again or better yet, we can help you take it the first time if you call first. Remember the answer is never right or wrong, it's simply informative. For many people, there's more than one investment people they want to drive. Sometimes I'd rather be riding in my wife's onto CRV if we're going on a road trip. For if I just want the storage space for a

trip to the grocery store. Different cars are designed for different things. That's fine too. In fact, that's generally the case, isn't it. A lot of people, for example the side they want to have some of their money in growth with a nest egg set aside, to be protected no matter what happens with the economy, and that's definitely possible to do. There are financial plans out there that we provide Asset Growth Associates that will ensure you never lose

a dime of what you contribute. They have what we call a zero floor, meaning your rate of return can never be less than zero. What's more, you can opt for a guaranteed rate of return or instead base your return offer the performance of a particular index, like the S and P five hundred. Not happy with what you picked in one year, just changing to the next year. It really is as simple as that. These plans also

vary in their duration. Some plans are as short as five years, while others can be long at ten years. That part is up to you as a rule of thumb. The longer your plan is designed for the greater the guarantee, and you will always have access to at least a size per percentage of your money, or even all of it if necessary. More good news, these plans can also defer taxation of your money, and you can fund these

plans with a wide range of sources. If you work at one of the refineries out here, for example, you probably already have set up a four A one K. You could decide to use part of that as your principle. If so, the money will still grow tax free until you take it as a distribution. Conversely, your source of fun maybe from an inheritance or possibly an insurance settlement. If so, your principle won't ever be taxed, then the insurance or the interest itself wouldn't it be taxed until

you take a distribution. If you're worried about what would happened to your money when you're gone, you can designate any number of beneficiaries that you choose. What's more, your account will avoid probate, which means while the rest of your assets may be tied up in court, you can rest assured your loved ones will receive what they deserve quickly and indisputably. If you're still not sure what plan is right for you. That's why we're here to help.

You can make an appointment at our office, or if you struggle getting out of the house, simple schedule a zoom.

because we say so, but because we'll earn it. Just give us a call at four oh nine eight four zero sixty nine hundred or toll free at eight sixty six seven two eight thirty six ninety seven. You'll be glad that you did.

our previous broadcasts any time any day on demand online. Again, if you decide to contact any of us here at Asset Growth Associates, give us a call at four zero nine eight four zero sixty nine hundred or toll free at eight sixty six seven to eight thirty six ninety seven. Our physical address in Beaumont is at thirteen ninety one Calder Avenue, a block from the intersection of MLK and Calder. I hope you got a lot of good information today.

We know your time is important and that means giving you an informative and substantive discussion on issues relevant to you. Thanks to John Coazia for providing us with an update on the tax changes for twenty twenty five. And if you're a senior over fifty that wants to take advantage of the ninety nine dollars tax filing, you definitely want to call us for an appointment. John also handles larger

filings for both individuals and businesses, so don't worry. He's got you covered either way, whether it's current events or national politics, you can count on. That's the bottom line. To deliver frank, straightforward analysis of the stories that affect you. I promise to keep you all posted with developments in the world of medicare, and hopefully someone listening today will benefit for knowing their rights and opportunities related to their

federal benefits. After all, it's not really an entitlement if you work for it all your life, is it. That's like saying you're entitled to take home your groceries from the supermarket have to be paid for them. I mean, yeah, right, I was gonna If you have a retirement account that's been sitting around and you don't know what to do with it, well, chances are we do. That's what we

do for a living, after all. And if you're wanting to be actively involved in the market, particularly now that the new administration promises to be a positive development for the economy, give us a shout. Our advisory services can help design a portfolio that's within your risk tolerance and expectations. If you're more than a little tentative when it comes to general investing, again, there's no reason to fear. We

have your back. We can design a plan that will make sure you never lose any of those nickels and maybe turn.