Retail prices for 267 brand-name drugs commonly used by older adults surged by an average of 5.8 percent in 2018, more than twice the general inflation rate of 2.4 percent, according to new AARP Public Policy Institute (PPI) data released in November.
The annual average cost of therapy for one brand-name drug ballooned to more than $7,200 in 2018, up from nearly $1,900 in 2006, the study said.
“There seems to be no end to these relentless brand-name drug price increases,” said Debra Whitman, executive vice president and chief public policy officer at AARP. “To put this into perspective: If gasoline prices had grown at the same rate as these widely-used brand-name drugs over the past 12 years, gas would cost $8.34 per gallon at the pump today. Imagine how outraged Americans would be if they were forced to pay those kinds of prices.”
Financial Advisers Help Clients With Valuable Year-End Advice About Retirement Planning
By Susan E. Campbell
December is good time for business people to meet with investment, accounting and tax professionals to look at the year behind and the one ahead.
At Paul Dowen’s office, Whittemore Dowen and Riccaiardelli, LLP in Queensbury, the team is working to manage retirement accounts in a way that maximizes deductions and minimizes tax liabilities under the new rules.
Even though all individual tax brackets, except the 10 percent bracket, are lower because of the Tax Cuts and Jobs Act, the experts can offer some tried-and-true tips for managing the tax burden.
“The biggest jump in the new tax tables is from the 12 percent bracket to 22 percent, so the challenge is how we keep more income at the 12 percent rate,” said Dowen. “The first step is to make sure the maximum amount allowed has been contributed to the company’s 401(k) plan.”
These plans must be funded by salary deductions before year-end, so time is running out to play catch-up.
“The new tax laws mean a tax cut or a break-even for retirees,” said Don Tenne of Tenne Financial Group in Glens Falls. But for small proprietors and the self-employed who file a Schedule C, there are two hefty tax breaks now in the code.
“Starting in 2018 there is up to a 20 percent deduction in taxable income for those businesses,” said Tenne. “If net profit is $200,000, for example, $40,000 is not taxed, a savings of $12-13,000 or more. That’s huge.”
With Change Is A Constant, Retirement Plans Should Stay On Course And Be Able To Adapt
By Susan E. Campbell
Financial professionals helping clients plan for a comfortable retirement are accustomed to preparing for unknowns. But what happens when foundational systems like income taxes and health care hover on the verge of massive change?
“All the attention in the media is paid to national politics and legislation,” said Don Tenne, a registered representative and senior financial planner for Mass Mutual in Glens Falls. “But we spend our lives locally. How much passed legislation will affect my life, versus my property taxes, zoning or the traffic where I live?”
So he advises his clients, “Don’t get too caught up in tax reform or health care reform, because our lives are lived largely outside of the Washington bubble.”
While tax reform is important, the issue is not change, said Tenne, but how to make a financial plan and stay on course because times always change.
Business Report: Why Every Child Needs A Roth IRA
By Paul Curtis, CPA, CVA, CM&AA
What if your child could invest tax-free money today, and in 40-50 years take the proceeds out tax-free? Would you be interested? Almost anyone who receives compensation can open up a Roth IRA account.
There are two main types of individual retirement accounts, the traditional IRA and the Roth IRA. Traditional IRA’s allow for tax deductions for current year contributions. When distributed, the original contributions, along with any earnings, are then fully taxable. The Roth IRA allows for your contributions and earnings to accumulate tax-free. No tax deduction is allowed for contributions, unlike the traditional IRA, but you never have to pay taxes on qualified distributions.
Retirement Planning Professionals Say Start A Plan Early In Life And Stick To It
Greg Larkin, investment officer and financial planner for Adirondack Trust Co BY SUSAN E. CAMPBELL A retirement plan is one of the few tax advantaged savings options available to just about anybody. Still, too few take advantage of a...
As Stock Market Fears Subside, Officials Say More People Eye Retirement Plans
Mary Pat Rabin, retirement plan and services manager, Glens Falls National Bank John Conroe, investment officer and financial planner, Adirondack Trust Co By Jill Nagy John Conroe, an investment officer and financial planner at Adirondack Trust Co., is hearing...
Retirement Straight Talk
By Stephen J. Augstell , MS, CFP Americans are not saving enough for retirement. This is hardly breaking news. When measured against accepted benchmarks--85 percent replacement of preretirement income or 50 percent of preretirement income, if you factor income...