Wells Fargo, Terry discussed on Jim Bohannon

Automatic TRANSCRIPT

Oh five four six two six and back to calls for our guest Terry savage she was as the break intervened about the Telesis opening that the regarded Wells Fargo so wanted to continue that thought I would just make it a point wells Fargo has been limited in its ability to make loans by the regulators the whole point I'm trying to make here is that not only is stimulus checks going to be delayed they haven't figured out a lot of it but the loans to small businesses as much money as they want to create they're finding it tough to push out the door in the third aspect of what's going on on our economy is on employment in every single state website is crashing because not only are they overwhelm with regular unemployment claims but the new self employed the program that's government put in under the Care Act isn't even set up on state website so well all the headlines are the governments pushing money out it you again don't hold your breath yeah by the way treasury secretary Steve Mnuchin is telling lawmakers that direct deposits for the stimulus checks will begin next week cross his heart and hope to die so that's a that's what he's saying let's talk to Harry in the Camden ten Missouri now for Terry savage of the Bohannon show hiring the evening for purpose of this stimulus check I'm asking very dumb question probably dumb I'm sure is what is it why is my R. M. D. it considered income when I already own that money I'll just hold on just a minute for those of us who are not familiar with all these terms what is that R. M. D. let me start every year when you have a wired minimum distribution right S. vision and you started a four oh one K. maybe rolled it over to an IRA you probably got a tax deduction for the money you put in and then it all grew and grew and grew and grew out of stock market experts he was going and when you take it out and fix them government forces you to take it out pretty much over your lifetime then they want the taxes on it it's ordinary income however the very good news for people is that under the new Care Act there is no required minimum distribution from your IRA in twenty twenty and which would have been based on the year end evaluation of your IRA of course much higher than it is right now for sure so there is no R. and D. for twenty twenty that's a good a little piece of news for you if your of your profits in your gains in your income yeah absolutely all right very good there you go no required minimum distribution for twenty twenty all right this is the gym in Mitchell South Dakota high hi there you already took place under way GM on one point Mnuchin did mention that we'll get our stimulus checks next week well not that big inning VS beginning week starting next week yes okay right no worries me more than that the government could really blow them all out there that quickly I mean they've got the money because they can print the money so that's not the issue and so it would be a wonderful delightful surprise if everybody called in in the next week at this time your show it's that I got mine I got mine still like like all right you get a check in you get a check but the ones from direct deposit probably go out quickly because they have that information but only people who got refunds put in their direct deposit information the rest of the people will get a printed check and it's easy for tax filers it should be easy for social security recipients and disability recipients from social security it'll be tougher for people who either don't file tax returns and don't get social security or who are get SSI this this is going to be a lot of people in this is going to hang on for a sadly the people who need it the most people didn't get refunds aren't they have low income and are required to file and don't get the security of the people that could use a check first then they'll probably get laughed yeah such as the world all right Jim thank you for that Frank in Cumberland Maryland now good evening Frank good evening miss savage would you please explain more about the money market deposit accounts at the bank that you mentioned earlier and also after that could you please explained above what the significance is of the trillions of dollars of stock buybacks have been done by corporations well okay that's covering the waterfront look what I was saying was that when you get your check if you're one of the fortunate people that qualifies based on your income to get receive a stimulus check when you get it someone suggested he was going to pay down its mortgage which usually I would say a good for you but I think you need to have liquidity so when you go to the bank you can either deposited in your checking account were you on and earn interest banks have FDIC insured money market deposit accounts where you can write checks against them they used to pay some interest they don't pay very much anymore the whole point being keep it accessible in the bank so that if you or a family member has an emergency you've got some cash let me change gears completely when a company makes a lot of money profits from set doing a good job selling its products growing its business that earns profits it pays X. expenses it pays its workers he pays its bosses management that made the decisions to make the company profitable and it is excess left over you can do one of three things it could say gosh this is a great business let's build a new plant and we can sell more stuff we can make more stuff and sell it so can invest in the business you could pay dividends out to shareholders I mean it's their money that's that's been tested in the corporation to pay out a dividend if it didn't want to put the money back in the business for you could buy back stock using that extra money to buy back stock means there are fewer shares outstanding and typically that will boost the stock price out of the three choices what motivates them to buy back stock well sometimes management compensation is tied to the total performance of the company's stock as well as other metrics like profit margins and various other things some it makes management very happy to see their stock a lot not only do they sometimes get paid in stock or stock options but they get bonuses based on the price of the stock in many cases and so that was a corporate decision to buy back stock all right Joanne in Pittsburgh good evening Joe ed I have a question since I'm a senior okay and I hear so many seniors calling into these types of programs wanting to know since you're on social security or they can get a check in there so happy when they find out they are even happier when they find out that it's non taxable well I'm going to take the question further in when I do my income tax I have to fill out a so to security form which determines how much of my social security is taxable I have to include one mayor my all my non taxable income all right one minute I'm not going to have to include this twelve hundred dollars finance social security form and delighted I'm so delighted to surprise you with the fact that this is totally not taxable in order to figure out a new tax form next year or just tell you to forget it I'm not sure how they'll handle it but it is not taxable and it is not supposed to impact a the premiums you pay for Medicare or the percentage of your social security that's taxed you know they've already broken their promises years ago municipal bonds were supposed to be tax free that's not so it's included in social security income for purposes of taxing sales of security benefits but this is totally tax free a lot of people have written to me and I'll go to my website Terry savage dot com read the article called stimulus questions update and turbo tax registration for people to register if they don't think they'll get a check because the government can't find him and a lot of people think it's taxable or that it has to be repaid whether that's a credit against next year not the government's putting this money to give to you to keep the economy going more to come will be back in a moment helpful.

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