Investing in Your Future

EDWARD JONES

On Valentine’s Day consider financial gifts

Last year, Americans spent more than $19 billion on Valentine’s Day gifts, according to the National Retail Federation, with the majority of this money going to flowers, candy, cards and an evening out. These gifts were thoughtful, of course, and no doubt appreciated, but they were also somewhat disposable, for want of a better word. On the other hand, some financial gifts can have a pretty long “shelf life.” Beyond simply enclosing some money in a card, what sort of financial gifts can you give? The answer depends somewhat on the recipient. For example, if your sweetheart is also your spouse, some of the gifts suggested below may be redundant to the financial moves you make together. However, if you aren’t married, or if you and your spouse maintain separate finances, these ideas may make excellent Valentine’s Day presents:

IRA contributions – Technically, you can’t contribute directly to someone else’s traditional or Roth IRA, but you can write a check to your loved one – although, of course, he or she is free to use the money for any purpose. Like most people, your valentine may not usually contribute the yearly maximum amount – which, in 2017, is $5,500 or $6,500 if you’re 50 or older – so your check should be quite welcome. A traditional IRA can grow on tax-deferred basis, and contributions may be tax-deductible. (Taxes are due upon withdrawal, and any withdrawals you make before you reach 59-1/2 may be subject to a 10% IRS penalty. A Roth IRA’s earnings are distributed tax-free, provided withdrawals aren’t taken until the account owner is 59-1/2 and has had the IRA for at least five years.

Charitable gifts – Consider making a gift to a charitable organization supported by your loved one. When you send cash to a qualified charity, you can get a tax deduction, but you might gain even bigger benefits by donating appreciated securities you’ve held for more than one year. By doing so, you can generally deduct the value of the securities, based on their worth when you make the gift. Plus, neither you nor the charity will have to pay capital gains taxes on the donated investments.

Contributions to an emergency fund – It’s a good idea for everyone to maintain an emergency fund to cover unanticipated expenses, such as a major car repair, a new furnace or out-of-pocket medical bills. If your valentine doesn’t have such a fund, consider helping him or her establish one, with the money going to a liquid, low-risk account.

Gym membership – Although not actually a “financial” gift, a gym membership can nonetheless bring some positive economic results to your valentine. For one thing, the insurance industry is providing more incentives to encourage people to exercise and live healthier lifestyles. But even if a gym membership doesn’t give your loved one a break on insurance premiums, it can nonetheless result in better physical conditioning which, in turn, could ultimately result in lower medical costs.

On Valentine’s Day, you may still want to get your sweetheart something associated with the holiday. But if it’s within your means to do so, also consider one of the above suggestions for financial gifts. Your generosity will still be felt long after the chocolates are eaten and the flowers have faded.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Common cold prevention

Each year in the United States, there are millions of cases of the common cold. Adults have an average of 2-3 colds per year, and children have even more.

Most people get colds in the winter and spring, but it is possible to get a cold any time of the year. Symptoms usually include sore throat, runny nose, coughing, sneezing, watery eyes, headaches and body aches. Most people recover within about 7-10 days. However, people with weakened immune systems, asthma, or respiratory conditions may develop serious illness, such as pneumonia.

You can help reduce your risk of getting a cold: Wash your hands often with soap and water; avoid touching your eyes, nose, and mouth with unwashed hands; and stay away from people who are sick.

If you have a cold, you should follow these tips to prevent spreading it to other people: Stay at home while you are sick and avoid close contact with others; cough and sneeze into a tissue then throw it away, or cough and sneeze into your upper shirt sleeve, completely covering your mouth and nose; and wash your hands after coughing, sneezing, or blowing your nose.

There is no cure for a cold. To feel better, you should get lots of rest and drink plenty of fluids. Over-the-counter medicines may help ease symptoms but will not make your cold go away any faster. You should call your doctor if you or your child has a temperature higher than100.4°F or symptoms that last more than 10 days.

To learn more, visit www.bchdmi.org or like us on Facebook at www.facebook.com/bchdmi.

Focusing on your priorities

Two concerns that I frequently hear in the community are that our state government is not as open and transparent as it should be, and that the quality and availability of high-speed internet is often lacking in our communities. I am glad to report that I am working on addressing both of those issues.

Last week I joined my colleagues in co-sponsoring bipartisan legislation that ensures taxpayers more access to public records in the legislature and governor’s office. The bills will subject the governor and lt. governor to the Freedom of Information Act (FOIA) and create the Legislative Open Records Act (LORA) to bring transparency to the legislature. Simply put, taxpayers should have better access to public records, and that has not been the case when it comes to state elected officials. This package continues our commitment to make state government more open and accountable to the people. This is another common-sense approach to shining light on public servants and public records. Only one other state exempts its legislature and governor from FOIA-like scrutiny and it is time Michigan joins nearly all other states in being open and accountable.

I have also introduced legislation that incentivizes businesses to invest in equipment necessary to make high-speed internet more readily available. There are too many areas where high-speed internet is not available and this bill provides incentives for Internet providers to expand their service and equipment to areas that are underserved. A number of those underserved areas are rural and farming communities in Southwest Michigan. Providing high-speed service to those areas will not only help families at home, but will attract the job creators we need to invest in local economies.

I look forward to continuing to work on issues that are important to the people of Southwest Michigan. I encourage you to share your ideas with me and reach out to my office if I can ever be of assistance to you. You can reach my office toll free at 1-800-577-6212 or via email at BethGriffin@house.mi.gov.

Reform needed to drive down Michigan auto insurance costs

According to a new report from the National Association of Insurance Commissioners, Michigan drivers pay the third highest auto insurance premiums in the nation.

Michigan’s average premium was $1,351, which was roughly $370 more than the national average of $982 and nearly double the premiums paid by drivers in Indiana.

While the national average premium increased by about 8 percent from 2010 to 2014, premiums in Michigan increased by more than 24 percent.

Michigan’s high auto insurance rates are unaffordable to many drivers and the alarming increase in these rates is a threat to our economy.

We must act now to make the long-overdue changes to our auto insurance system while giving much-needed relief to Michigan drivers and ensuring those covered under the previous system continue to receive their same benefits.

One problem we currently face is that auto insurance companies in Michigan can pay up to three or four times more for the same medical treatment as other types of insurance.

I fully support the idea of creating a statewide fraud authority to decrease fraud in the system, which would help save money for Michigan consumers. We could also help drive down premiums by ensuring that auto insurance companies reimburse health care providers at a level just above other types of insurance.

Southwest Michigan drivers need auto insurance reform. We owe it to all Michigan residents to enact reasonable reforms that reduce costs and continue to provide drivers with the best medical benefits in the country.

As always, I look forward to hearing your comments and feedback on the important issues facing Michigan. You can contact me at 517-373-6960.

Strengthening Medicaid

 Last week, I introduced legislation, H.R. 829, the Prioritizing the Most Vulnerable Over Lottery Winners Act of 2017, in the U.S. House of Representatives that would strengthen Medicaid for those who need it most.

Under Medicaid regulations, income received as a lump sum, such as Lottery winnings, is counted as income only the month received. As a result, states are effectively not allowed to disenroll Lottery winners from Medicaid. This forces taxpayers to bear the burden of paying health care benefits for individuals who no longer require assistance. H.R. 829 will close this loophole by requiring states to count monetary winnings from lotteries of $80,000 or more as if they were obtained over multiple months, even if obtained in a single month. Benefits for those who have received a monetary windfall covered under this legislation are estimated to cost taxpayers hundreds of millions over 10 years.

Medicaid is meant to help the most vulnerable amongst us – not high-dollar Lottery winners. Our common-sense solution would alter how Medicaid eligibility is determined for those lucky enough to hit it big playing the Lottery, while continuing to prioritize the low-income population the program is meant to serve.

I will continue to work on a bipartisan basis to strengthen critical programs like Medicaid to ensure they best serve our communities.

To learn more about this and other important legislative issues, please visit my website: upton.house.gov or call my offices in Kalamazoo (269-385-0039), St. Joseph/Benton Harbor (269-982-1986), or Washington, D.C. (202-225-3761).