Music Monday: Jackson and Buffett – It’s Five O’Clock Somewhere
Posted By RichC on January 27, 2020
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The new SECURE Act requires rethinking retirement planning
Posted By RichC on January 26, 2020
graphic credit – Enza Financial
There was an excellent podcast on Charles Schwab‘s WashingtonWise Investor (link) last week with Mike Townsend and Dan Stein that summarized the 2020 changes for those planning their retirement – hopefully everybody. Most of the new changes made by Congress last year in the SECURE Act are based on Americans
living and working longer than in the past, hence one of the big changes has to do with RMDs (Required Minimum Distributions) from tax differed accounts used by Americans in saving for retirement (IRAs, 401Ks, etc). Oh, if you are wondering about the Washington DC acronym SECURE, it is: Setting Every Community Up for Retirement Enhancement.
The big change from my perspective is when we are required to take money out (and begin to pay taxes on) retirement savings that has been put aside pre-tax. Prior to the SECURE Act in 2020, that age as been 70½. Under the new law, you do not have to take distributions until the year you turn 72. The new rule gives more time for your retirement savings to grow before you need to begin drawing it down. That dollar amount come from an IRS published table based on life expectancy and the amount saved. Under the current rules, your first few RMDs are less than 4% of the account value, but they escalate as you get older, getting closer to 7% of the account value by age 85 and close to 9% by age 90.This is important because distributions from traditional retirement plans are taxed as ordinary income, so as the size of your distributions increase, your tax burden may as well.
Probably the other big change is how "inherited" IRAs are handled. Under current law, non-spouse designated beneficiaries can take distributions over their life expectancy, but for many retirement account owners who pass away in 2020 and beyond, beneficiaries will have ‘only’ 10 years to empty the account.
Watching the Boeing 777X first flight today
Posted By RichC on January 25, 2020
EDIT – A Boeing 777X airliner lifts off for its first flight at Paine Field on January 25, 2020 in Everett, Washington. Getty images – Stephen Brashear
The new Boeing 777X enters the next phase of its rigorous test program. Based on the most successful twin-aisle airplane ever, the Boeing 777, and with advanced technologies from the Boeing 787 Dreamliner, the 777X will be the largest and most fuel efficient twin-engine jet in the world, with an exceptional passenger experience.
Old jack stands: A friend shared this as an automotive PSA
Posted By RichC on January 24, 2020
Just your average PSA guys. Just because you use jack stands, doesn’t mean you’re safe. Always throw something else under the car if you’re going to be under it.
My father and I just had a trusty old jack stand fail. Folded right over unexpectedly, luckily he was just rotating tires at the time, so no one was under the car. 2019 Subaru Forester with 6k miles resting on its rotor at front tow hook point. Luckily no damage at all, and thank whatever deity is out there that no one was underneath.
I’ll clarify- these are super old 1.5 ton stands that my father has used for 20 years. Not my first choice, I use HF 3 and 6 ton.
Keeping woodworking bench dogs handy but out of the way
Posted By RichC on January 23, 2020
It has taken years, but I’ve finally decided to move my woodworking bench dogs from the tool tray (see below).
A bench dog is an accessory used on a woodworking workbench to allow clamping of wooden items while being worked or planed.
Ever since building my work table and vices with bench dogs back in the 1980s, I’ve stored the homemade oak and maple “pegs” (dogs) on end in a can or cut off pipe. Unfortunately they stick up too high out of the tool tray or if I put them on their side, they get buried. I thought about eliminated the storage tray, but it is a tradition place to put a few tools off the table’s surface while working on a project and “would” still be nice to have if I used it properly (it is forever a catchall).
The problem with the bench dogs stick up above the table’s surface is that they are in the way when working on projects that extended over the edge of the table. It happen again last weekend when taking apart a few antique Christmas displays inherited from Brenda’s parents, so I had it with moving them. Finally, 
I took 20 minutes and a few pieces of scrap oak, I added a spot to the side of the table where they are handy, yet below the surface. Now the work table’s surface is flat and clear from any vertical items sticking out of the tool tray … something that should have been done decades ago!
I also left enough room for a small square, but dislike the aluminum adjustable bevel square, so might try to find a simple small antique Brass and Rosewood Try Square … stay tuned (I sort of wish Brenda’s furniture-maker grandfather would have passed one down).
Sesame Street has Big Bird … but Africa has the real thing
Posted By RichC on January 22, 2020
Just how big is an African Crowned Eagle’s talons? BIG!!!
A wider-view photo below …
The World’s Best-Selling Car makes car enthusiasts smile
Posted By RichC on January 21, 2020
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Music Monday: Green Day and the a US National Park road trip
Posted By RichC on January 20, 2020
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What is going to stop the US stock market and $AAPL stock?
Posted By RichC on January 18, 2020
While working on post highlighting the DJIA crossing 29,000, I realized that the stock market has blown through that milestone and is rocketing towards 30,000 and that I’ll have to start over (probably a “worry-wart” post is coming).
One of the big contributors to this Dow Jones Industrial Average is Apple ($AAPL). It just continues to trade higher. 
The fact that CEO Tim Cook has learned to put his personal politics aside and work with President Trump certainly doesn’t hurt when gaining favor with US trade negotiations with China. Of course the entire economy benefits with lowered tensions and tariffs, but those who play the game best are the ones who work within the system. Apple is doing this pretty well considering.
On the other hand, passing and signing big trade deals like USMCA between the US, Mexico and Canada and getting phase one in place with China 
doesn’t hurt either. Personally, I suspect those foreign leaders playing hardball with the US are beginning to think the election in November favors President Trump … where as they may have been waiting out his term believing a Democrat would be easier to manipulate into a more favorable deal?
(speculation on my part)
All in all, the economy is still holding up well (housing starts up today) and companies who already have a great product AND know how to play ball in today’s divisive political culture, will come out ahead … ahead so much so that I’ve humorously added a Post-It Note to the AAPL chart on my computer monitor (photo left).
Also while thinking about how Apple’s CEO Tim Cook worked with leaders in China and “likely” a leader he doesn’t particulaly see eye to eye with in the US (President Trump), this bit of sage advice that I jotted down a while ago came to mind:
A wise senior business leader once said, “It is impossible to prosper when there is war. You must seek peace first; then you will prosper.”
So .. the sooner you make peace with your adversary, you’ll be able to refocus you energy on mutually beneficial outcomes.
Tech Friday: The subscription models and the 180K threshold
Posted By RichC on January 17, 2020
Back in the late 1980s when I was starting in the commercial printing and eventually ‘small time’ publishing business (Consolidated Printing and Publishing Co), I didn’t realize how far ahead of the game we were when focusing on the subscription model. Early on we were able to capitalize on few people in the printing industry being computer savvy, so when Aldus Pagemaker (now Adobe) and the Apple Macintosh computer came out, I was able to build “newsletter” templates for customers who were told to stay in touch and/or market to their customers with regular mailings. This was before email or the world wide web, so correspondence was either in person
(sales calls) or by using the phone or mail. Eventually we had a decent string of regularly published newsletters and just needed the fresh content to fill the pages (fill the templates).
Fast forward 30 years and the subscription business model has taken over when it comes to technology. Now we pay monthly or yearly for our internet connection and wireless, our software licenses and hardware. We pay for cloud subscriptions that offer everything from online apps to data storage and virus detection. 
Magazines and newspapers are still focused on the subscription model too … but are likely delivered as digital content to a phone, tablet or connected computer device rather than printed on paper. Music, audio and video that were once purchased on vinyl, tape, cds, dvd or digital files, are now subscribed to with any number of streaming services which automatically bill monthly or annually. The number of subscriptions continue to rise and are likely straining tight budgets.
Do you want to eat this month or pay for your subscriptions? Where is your limit?
On a lighter note, my 2010 BMW X5 35d is ready for some service as it has just rolled past 180,000 miles … unless odometers no longer roll?
Desultory - des-uhl-tawr-ee, -tohr-ee
- lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
- digressing from or unconnected with the main subject; random: a desultory remark.