Jews for Jesus Development Department Monthly Newsletter from David Stone of Jews for Jesus in San Francisco, California, United States for Friday, 16 September 2016Shalom to you, our partners in ministry. It is an honor to share with you the latest news from Washington, Savvy Living, Personal Planning, gift stories, finance news, and timely articles.
There are no "asks" in this eNewsletter as it is designed totally to be a helpful service to you. Feel free to share it with others in your family or your friends. If you would like me to send it directly to them please send me their email address.
This information is put together in a way to be a help in understanding what is happening in our economy so you can use it to your best advantage. I hope this information is useful to you.
If you have any questions or I can be of assistance to you please contact me.
David StoneDirector of Donor Relations
PERSONAL PLANNER
Separate & Joint PropertyMy brother Pete and I own a ranch together," said Joe to his advisor. "We inherited the four sections of our ranch from my mother. As a single person, I think that I will plan to leave 50% of my share to Pete and the other half to my favorite charity. Of course, if Pete dies, he is married and probably wants to leave his share to his spouse and children."Do Pete and Joe need to review their estate plans? Yes! These two rancher brothers held title as joint tenants with right of survivorship. If the single brother (Joe) were to pass away, Pete would inherit his brother's half of the ranch. Even though Joe stated that half of his share should go to his favorite charity, nothing will be given to charity.
On the other hand, if the married brother (Pete) were to pass away, under the joint tenancy with right of survivorship rules the ranch now belongs in its entirety to Joe. Pete's spouse and children would have no benefit, with the exception of some states in which a forced spousal share might provide some relief.
Do you know how your property is owned? This can make a huge difference in your plan, just as it did for Pete and Joe. Property can be owned outright, as tenants in common, as joint tenants with right of survivorship or in a trust.
Outright Ownership
Joe is a single person and also owns a home in a small community close to the ranch. He has complete title to the property in his name. The legal term for owning property outright is "fee simple" title. Because Joe owns the property outright in his name, he is obligated to personally pay the taxes, mortgage interest and any other costs of maintaining the property. However, he has complete use of the property and may transfer it during life or through his estate to any person or charity.
Tenants in Common
With property held as tenants in common, each person has an undivided interest in his or her portion. For example, Pete and Joe could change the title to the ranch to tenants in common. Each would still own 50% of the entire ranch. The taxes, the mortgage payments or any other costs would be divided between the brothers. However, because the ranch is held as tenants in common, each person may make transfers of the property during life or through his estate. Joe could decide to leave 50% of his half to Pete and 50% to favorite charity. Pete could leave his 50% of the ranch to his spouse and children.
Joint Tenancy with Right of Survivorship
The property could be held jointly, but under state law the surviving tenant receives title to the property when the first passes away. For example, if Pete were to pass away while the property is held as joint tenants with right of survivorship, Joe then would own the entire ranch. Both Pete and Joe would pay their share of taxes and the mortgage during life, but the property is transferred by state law to the surviving joint tenant, not according to the will of the first to pass away. For anyone other than a surviving spouse, joint tenancy with right of survivorship may result in an accidental disinheritance.
Trusts
It is possible to transfer real estate and other assets into a trust. Each person deeds his or her portion into the trust. The trustee owns the entire property for the benefit of the income and remainder recipients. The trustee will manage the property, collect income and distribute it according to the terms of the trust document. A trust is especially useful if you own property in different states.
Therefore, it is very important to understand how your property is owned. When you are creating your estate plan or are considering a transfer or gift during life, you need to be certain that you first understand the ownership. Then you will be able to make a legal transfer to the intended beneficiary.
Many estate lawsuits have occurred because individuals thought they had the right to transfer property by will, but there was a joint tenancy with right of survivorship that transferred the property to a surviving owner. If one person receives under the will and another by right of survivorship, litigation is quite likely. By understanding the way in which your property is titled, you can be certain that your intentions are carried out according to your plan.
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SAVVY LIVING
Cheap Cell Phone Plans for Infrequent CallersWhat are the cheapest cell phone options available to people today who only want one for emergency purposes or occasional calls? I have a cell phone now that costs me $30 per month, but I hate paying for something I hardly ever use.For people who don't use their cell phones very often but still want one for emergencies or occasional use, there are a many super-cheap plans available. Depending on your income level you may qualify for a free cell phone. Here's where to find some of the best deals.
Super-Cheap Plans
For people who are light/infrequent cell phone users, "prepaid" or "pay as you go" plans are the way to go if you want to save money. With these services, you buy a certain amount of minutes (for talk or text) that must be used within a specified period of time.
While many cell phone providers still offer these lower cost plans, the very best/cheapest deal available today is through T-Mobile's pay as you go plan (T-Mobile.com, 800-501-0952).
For just $3 per month, this plan provides any combination of 30 minutes of talk or 30 text messages. If you want more, you can pay an additional 10 cents per minute/message when you sign up, or you can make adjustments later. You also don't have to worry about overage charges with this plan, because once you reach your talk/text limit for the month, the phone stops working. And, if you have a compatible device, you won't need to purchase a new cell phone.
If you're looking for a little more talk time or more text messages, another low-cost option is Pure Talk USA (PureTalkUSA.com, 877-820-7873). It also offers a Senior AddVantage 80 Plan. This plan provides any combination of 80 minutes of talk or 240 text messages for only $5 per month. Pure Talk also accepts unlocked phones and they don't have overage fees.
Senior-Friendly Cell Phone
If you are looking for a senior-friendly phone with a large keypad, simplified features and an "SOS" emergency alert button, the Doro PhoneEasy 626 sold through Consumer Cellular (ConsumerCellular.com, 888-532-5366) is the best, low-cost option. It runs $50 for the phone, with calling plans that start at $10 per month.
Free Cell Phones
If your income is low enough, you may qualify for a free cell phone through the Lifeline Assistance Program. This is a government-sponsored program that subsidizes wireless (and landline) companies who in turn provide free cell phones and usually between 250 and 1,000 minutes of free monthly talk time and texts to low-income Americans. (Some programs in some states charge a small monthly fee.)
The free phones and minutes are provided by a number of big prepaid wireless companies like Safelink, Assurance Wireless and Budget Mobile, along with a host of other regional carriers throughout the country.
Most states have several wireless companies that provide the free phones and minutes. If you are eligible, the free cell phone you'll receive is a basic phone that also offers text messaging, voicemail, call waiting and caller ID.
To qualify, you'll need to show that you're receiving certain types of government benefits, such as Medicaid, Food Stamps, SSI, home energy assistance or public housing assistance, or that your household income is at or below 135 or 150% of the Federal Poverty Guidelines - it varies by state. To find out if you're eligible or to locate the wireless companies that provide Lifeline government cell phones in your state, visit LifelineSupport.org.
Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.
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YOUR PLAN
Fixed Income for Retirement
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YOUR PLAN
Fixed Income for Retirement
After working for decades as a pediatrician in a small rural town, Patricia was ready to retire.Patricia: I bought some stock a number of years ago and overall this was a good investment for me. However, I was uncertain about leaving my savings in the market where I knew it could go up or down.
I was also looking for security for my retirement years. Ideally, I wanted to know that I would have the income I needed and that it would not change with the markets.
Patricia talked to a friend who had found a good choice. Her friend had set up a gift annuity with her favorite charity. Patricia thought that perhaps a gift annuity would be helpful for her.
Patricia: I called and asked about a gift annuity. I was very pleased to discover that I would receive a good payout based on my age. Plus, there would be a charitable tax deduction and part of the income would be tax free.
I transferred my stock for a charitable gift annuity. I was delighted with the fixed payment I received. I avoided part of the capital gains tax and my CPA was pleased that my charitable deduction will save taxes this year. With my tax savings and increased income, I plan to spend more on my grandchildren this year!
*Please note: The name and image above is representative of a typical donor and may or may not be an actual donor to our organization. Since your gift annuity benefits may be different, you may want to click here to view a color example of your benefits.
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WASHINGTON NEWS
New Identity Theft AttacksIn IR-2016-119 the IRS reports new attacks on professional tax preparers. In a dozen cases, identity thieves gained access to the computers of a professional tax preparer. The thieves then e-filed returns and directed the refunds to their personal financial accounts.IRS Commissioner John Koskinen stated, "This latest incident reinforces the need for all tax professionals to review their computer settings as soon as possible. Identity thieves continue to evolve and look for new areas to exploit, especially as our fraud filters become more effective." Koskinen observed that there often is an increase in identity theft prior to filing deadlines. For taxpayers who extended their 2015 returns, the filing deadline is October 17, 2016.
The IRS outlines several steps for the protection of tax information. These steps are also good advice for all taxpayers.
1. Virus Software – You should periodically run a "deep scan" with your virus software. This will search for a virus or malware.
2. Passwords – Use passwords with 8 – 14 characters. A strong password includes both uppercase and lowercase letters, numbers and symbols and is changed periodically.
3. Phishing – If you do not know the sender, be careful not to click on links or attachments. The link or attachment could download a virus or malware on your computer.
4. Remote Access – If you permit access to an internal computer network from outside your office, use appropriate security measures. It is best to have an experienced IT person review the security of your remote access system.
IRS Publication 4557, "Safeguarding Taxpayer Data, A Guide for Your Business" is available on www.irs.com.
Election Clock Ticking
Congress is back in Washington for a shortened legislative session. All 435 Members of the House and one third of the Senators are diligently preparing campaigns for the November election.
The House of Representatives will not complete work on all of the appropriation bills prior to the start of the new fiscal year on October 1, 2016. Therefore, a continuing resolution (CR) will be required. The House Republicans scheduled a caucus meeting on September 9 to discuss the CR and the 2017 budget.
Several Members of the House have been discussing the potential for a tax extenders bill. There are four interest groups who are seeking a potential extension of laws that will expire on December 31, 2016.
Native Americans are hopeful that the Indian Employment Credit and accelerated depreciation provisions will be extended. Dante Desiderio is Executive Director of the Native American Finance Officers Association. He stated, "The accelerated depreciation is really one of the only incentives for outside capital coming into Indian country for good jobs. We have been doing this for quite a while and it is so much less effective when we are having to advocate for these things every year, retroactively."
Low-income urban and rural areas have historically been designated as empowerment zones. There is a $3,000 tax credit and a $20,000 expense allowance in these areas. In addition, many facilities in empowerment zones have been constructed with tax-exempt bonds.
Mortgage relief is still of concern. In some parts of the country, there are significant numbers of homeowners who are "underwater" on their mortgages. If they sell in a short sale after the end of this year, they could be required to pay a substantial tax on their debt relief.
The Hollywood film industry will potentially lose a $15 million expensing benefit. This benefit has facilitated production in the United States rather than overseas. Finally, there is bipartisan support for extending the $3,500 per track mile credit for maintenance of rail lines.
These tax extenders are not likely to be in the continuing resolution that may be effective from October 1 to mid-December this year. Sen. John Thune (R-SD) stated, "At this point, that would muck the CR up in a way that would prolong its consideration around here and would be very controversial and probably make it difficult to pass."
House Ways and Means Chairman Kevin Brady (R-TX) repeated the opposition of the House taxwriters to a new extenders bill. He stated, "As far as tax legislation on the CR, I am unaware of any in the mix." He continued to note that the House "strongly objects" to passage of a new tax extenders bill, even during the expected lame-duck session in November.
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FINANCES
Stocks - Dave & Buster's Reports Weak Same-Store SalesDave & Buster's Entertainment, Inc. (PLAY) announced its second quarter results on Tuesday, September 6. The entertainment and dining venue operator reported same-store sales growth and fiscal guidance lower than Wall Street expectations.
The company reported that revenue during the quarter rose 12.4% to $244.3 million. This figure was in line with pre-release expectations.
"While comparable store sales growth was modest, it still exceeded the competitive casual dining benchmark, which we have outperformed for 17 straight quarters," said Dave & Buster's CEO Steve King. "Our unique entertainment, dining, and sports viewing venues provide us with some degree of insulation from general industry trends and we are keeping our brand fresh through new food and beverage options and exciting new games to further differentiate ourselves."
Dave & Buster's reported earnings of $0.50 per share, a staggering 71% increase compared to the same period last year. Not surprisingly, this also topped Wall Street estimates of $0.44 per share.
While investors were pleased with Dave & Buster's strong revenue and earnings figures, not all of the company's results were positive. Same-store sales showed a meager 1% increase, a far cry from the 11% reported during the same period last year and lower than the 2.1% analyst estimate. The company also lowered full-year same-store sales guidance from a range of 3.25% to 4.25% to a range of 2.25% to 3.25%. Following the earnings release, the company's share price fell 6.7%. For the year, the company's shares are up 10.9%.
Dave & Buster's Entertainment, Inc. (PLAY) shares ended the week at $42.36, down 9.6% for the week.
Hewlett Packard Enterprise Shows No Growth
Hewlett Packard Enterprise (HPE) announced its third quarter results on Wednesday, September 7. The information technology company reported a drop in revenue.
Revenue during the quarter fell 6% to $12.2 billion. Wall Street analysts expected the company to report revenue of $12.6 billion.
"Today's announced spin-merge of our non-core software assets with Micro Focus is another important step in our strategy to unlock a faster growing, higher margin, stronger cash flow company," said Hewlett Packard Enterprise President and CEO Meg Whitman. "As we said in the Enterprise Services announcement last quarter, both software and services remain key enablers of our go-forward strategy, and we are focused on building the right portfolio to win in our target markets."
Hewlett Packard reported earnings of $0.49 per share during the quarter. This beat estimates of $0.44 per share.
Hewlett Packard Enterprise resulted from a division of the old Hewlett-Packard into two separate companies. Hewlett Packard Enterprise operates the old HP's enterprise cloud business. The spin-off of HPE as its own business was intended to help it compete against rivals like Cisco Systems and Dell Technologies. The 6% third-quarter revenue decline would indicate HPE is not succeeding as hoped. Adding to investor concern was HPE's announcement that it is spinning off its software business and merging it with U.K.-based Micro Focus International. As of now, analysts are uncertain if this move will help HPE better focus on competing in the cloud computing industry.
Hewlett Packard Enterprise (HPE) shares ended the week at $20.92, down 5.7% for the week.
Limoneira Co. Reports Increased Earnings
Limoneira Co. (LMNR) announced its third quarter results on Thursday, September 8. The agribusiness and real estate development company reported results that exceeded Wall Street expectations.
The company reported that revenue increased 34% to $39.9 million. This figure easily topped estimates of $34 million.
"Our revenue growth of 34% compared to the prior year period reflects solid increases for both our lemon business and avocado business," said Limoneira Co. President and CEO Harold Edwards. "In particular, the typical volatility in avocado production resulted in strong volume this year and based on these results as well as a gain on the sale of Calavo stock, we are updating our outlook for fiscal year 2016."
Limoneira reported earnings of $0.71 per share during the quarter. Estimates were for earnings of $0.62 per share.
Based out of Santa Paula, California, Limoneira is a leading agribusiness producer of lemons, avocados, oranges and other specialty citrus. In addition to increased revenue and earnings, Limoneira also raised its full-year financial guidance, expecting earnings of $0.33 to $0.38 per share. So far on the year, the company's share price has risen nearly 19%.
Limoneira Co. (LMNR) shares ended the week at $18.90, up 12.2% for the week.
The Dow started the week of 9/5 at 18,493 and closed at 18,085 on 9/9. The S&P 500 started the week at 2,182 and closed at 2,128. The NASDAQ started the week at 5,260 and closed at 5,126.
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Bonds - Treasurys Reach Two-Month Highs
Treasurys Reach Two-Month HighsTreasury yields rose across the board during early trading on Friday, September 9. Driving yield increases was the Bank of Japan's (BOJ) announcement that it is considering raising long-term debt yields.
Japanese investors have been the biggest purchaser of Treasurys over the past six months. News of the BOJ's interest in raising long-term yields resulted in a 5 basis point increase in Japan's 20-year bond yield to a five-month high of 0.44%.
In the U.S., the 30-year bond yield rose to a 10-week high of 2.40%, compared to 2.32% on Thursday. The benchmark 10-year note yield reached an 11-week high of 1.70%, compared to 1.62% on Thursday.
Comments from Boston Federal Reserve President Eric Rosengren on Friday also drove yield increases. He indicated that the Fed faces increasing risks if it takes too long to raise interest rates.
"Economic data releases and a less-than-dovish tone from Fed members has increased the odds for at least one rate hike in the U.S. this year," wrote Richard Lin, research analyst at Clearwater Analytics.
Prior to Rosengran's comments, Fed funds futures indicated investors saw an 18% chance of an interest rate hike later this month. After Rosengran's comments, the odds of a rate hike later this month rose to 30%.
The 10-year Treasury note yield finished the week of 9/5 at 1.67%, while the 30-year Treasury note yield was 2.39%.
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CDs and Mortgages - Mortgage Rates Trend Downward
Mortgage Rates Trend DownwardFreddie Mac released its latest Primary Mortgage Market Survey (PMMS) on Thursday, September 8. The report revealed interest rates trending lower this week, making refinancing activity more attractive to homeowners.
The 30-year fixed rate mortgage averaged 3.44% this week. This represents a decrease from last week when it averaged 3.46%. Last year at this time, the 30-year fixed rate mortgage averaged 3.90%.
This week, the 15-year fixed rate mortgage averaged 2.76%. This was down from last week when it averaged 2.77%. The 15-year fixed rate mortgage averaged 3.10% one year ago.
"The 30-year fixed-rate mortgage fell 2 basis points to 3.44% this week," said Sean Becketti, Chief Economist at Freddie Mac. "As mortgage rates continue to range between 3.41 and 3.48%, many are taking advantage of the historically low rates by refinancing. Since the Brexit vote, the refinance share of mortgage activity has remained above 60%."
Based on published national averages, the money market account finished the week of 9/5 at 0.48%. The 1-year CD finished at 1.16%.
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Thank you for your interest in planned giving. To access any of our resources, please go to our website.
Your Brother in Yeshua (Jesus),
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Thank you for your interest in planned giving. To access any of our resources, please go to our website.
Your Brother in Yeshua (Jesus),
David Stone
Jews for Jesus
Our mailing address is:
Jews for Jesus
Jews for Jesus
Our mailing address is:
Jews for Jesus
60 Haight Street
San Francisco, California 94102, United States
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