Hello Thurmont from Commissioner Terpko
March 5, 2010
Hello Thurmont,
We weathered the storm and made it through all the snow. We did have some tough challenges and town staff, as always, handled the situations with ease and the utmost professionalism. With approximately 50 plus inches of snow that fell, the town staff had to literally remove most of the snow on most streets in town. There were many streets where staff had to use a skid loader to remove snow from the roadways and then run a plow on the road to remove any remaining snow. Most of the town residents had patience and understanding in this matter. I know a lot of people wonder how town staff determines which roadways are to be cleared first and why. Well it is done according to need, for example: Main roadways through town are done first and roadways to our industrial area of town. Then staff does the hills, side roads and roads leading to businesses such as grocery stores, etc. After these roads are done, then the town starts in developments and clears those roads. During the blizzard, town staff had to also open roadways for 1st responders or emergency responders so they could get out to assist others in town or in the county. Town staff will also assist the police department, ambulance company or the fire department on calls to ensure the roadways are clear and they can respond to the residents in need. For the most part this plan works well. Where town staff ran into problems is when we have a major storm and residents have vehicles parked on both sides of the streets. This causes problems trying to get a plow down the road and then the street does not get cleared or cars get plowed in or worse a car or vehicle gets hit. The Board of Commissioners is working on a plan with staff to possibly alleviate this situation. A suggestion would be, in developments where people have driveways and yards, put the cars there and remove them from the streets. Other areas possibly have everyone park on the even side of the road when it starts to snow, and then after the road is plowed, have everyone move to the odd side of the street. Then staff can have both sides of the road plowed. We also have the options of using the town parking lot for some residents who need off street parking. This plan is only in the discussion state, so if anyone has a suggestion or idea, please feel free to contact any one of the Commissioners with your thoughts and ideas. We welcome any suggestions to help make the plowing of snow go as smoothly as possible. Stay tuned, there will be more to come.
We will soon be working on next year’s budget. It is definitely going to be another challenging year. We will be reviewing all operations and expenses in each department. Keep watching for updates to budget items in all departments, including electric, water, and sewer. We will work diligently to not raise taxes, and keep all rates affordable.
In closing, I would like to thank our town staff for all the work they did during the blizzard keeping our roads clear, electric on, and water and sewer operating; also, our emergency service agencies which kept our residents safe and secure. I would also like to thank the following companies and people. The Guardian Hose Company, and the Ambulance Company for housing people who were stranded, could not get home or had to work to keep us safe or be able to respond to emergencies. WF Delauter and Son for help with snow removal, Biser Electric for assistance during the storm, Jan Lawyer for getting a business owner to work to provide fuel to the town to operate the equipment, and Direct to U for opening to provide diesel fuel to the town staff to operate all equipment to remove snow and allow our residents to get out and around.
Until next time,
All the best
Commissioner Ron Terpko
A word from Emmitsburg Mayor Jim Hoover
March 5, 2010
Snow or no snow this is the time of year that begin planning for this year’s community activities. Over the past several years activates such as the Farmers Market, Pool Parties, Concerts in the Park, Ice Cream Socials and the Powerful Partnership with Mount Saint Mary’s have been established. This year the Powerful Partnership has been expanded to include the National Emergency Training Center, Provencal House, Emmitsburg Library and Frederick County Parks and Recreation. And, again this year I will be hosting the 4th Annual Bar-B-Que Competition. Look for posters around town for dates and times of the many activities coming up.
In other business, the Lincoln Avenue water and sewer line construction is well under way. We have heard from many of you about the condition of the street and asking how much longer the project will take. Obviously the project has encountered some weather related delays, the projected is expected to be completed toward the end of April weather permitting. We understand the project has been creating some inconveniences and we appreciate the communities’ cooperation. Originally this project included improvements to add additional curb, cutter and sidewalks but, due to plans by the utility company to replace the telephone poles those improvements will be completed at another time in the near future.
Another project of community interest is the baby pool. Last year the baby pool was closed all season and is likely to be closed again this season. The pluming to the pool is in need of complete replacement but, the pluming is located under the pool. To replace the plumbing, part of the pool bottom will have to be excavated, this is not unusual but, it is costly. The Town is getting bid proposals for a variety of options to repair the pool and to replace the pool with playground equipment. Those options will be discussed and possibly considered at the March 15, 2010 Town meeting. The intent is to improve the overall pool complex. Recently (over the last 3 to 5 years) we added additional tables with umbrellas, a pavilion with picnic tables and bar-b-que grills and many infrastructure upgrades.
In closing I want to remind everyone that the Town Office is open until 7:00 p.m. every Tuesday. This is a great opportunity to pay water bills, pick up and drop of permit applications, reserve pavilions and pick up keys.
Should You Convert to a Roth IRA? (Part 2)
February 22, 2010
by Samuel N. Asare, MBA, CRPC, CMFC
As of last month’s writing we were estimating this to be a three-part series. However, upon a closer look, we are not quite sure how many parts the series will end up containing. Our intention is to discuss the salient points that you, as an investor, must understand and take into consideration as you decide whether or not converting to a Roth IRA is something that will benefit you and your family.
Is It True That Only Traditional IRAs Can Be Converted?
There seems to be a lot of misinformation out there, one of the significant distortions being that you must first convert your investment into a traditional IRA, and then into a Roth. In reality, just about any qualified plan may be converted. Qualified plans are those into which you deposit before-tax dollars and defer taxes on the growth as well. Examples include traditional IRAs, 401(k)s, 403(b)s, and tax-sheltered annuities. However, non-spouse heirs who inherit traditional IRAs cannot convert them to inherited Roth IRAs. Also funds from a SIMPLE IRA that is less than two years old cannot be converted to a Roth.
Must My Employer Allow Me to Convert My Work-Related Funds?
Although the law permits you to convert and you may want to, your employer’s retirement plan policy supersedes everything else. Most employers’ policies do not allow the transfer of retirement plan funds while you are still employed by that establishment.
For instance, say George has accumulated $400,000 in his employer’s qualified 401(k) program. Now George wants to convert all or a portion of his funds to a Roth IRA; however, his employer’s policy does not allow any transfers while he remains employed at the firm. That’s tough luck for George unless, of course, he resigns.
How Is the Transfer Made?
The transfer can happen in one of two ways:
- You may request that your current fiscal custodian transfer the funds directly to a new Roth custodian.
- You may request that the funds first be released to you, and you then turn them over to your new Roth custodian. However, if you use this indirect approach, the new account must be set up and the money deposited into it within 60 days.
Are There Minimum and Maximum Amounts That Can Be Converted?
The amount you convert is completely up to you. You alone make that decision. The “new” law is not an all-or-nothing situation. We must tell you, though, that most investment firms require their own minimums to maintain an account with them; however, those limits have nothing to do with the law. And we can virtually guarantee that you needn’t worry about the maximum amount.
Say Sarah has $100,000 in her traditional IRA. She may decide to convert $5,000, $10,000, all $100,000, or any amount in between.
Is 2010 the Only Year That Such Conversions May Take Place?
As the law stands now, you may convert beyond 2010. Of course, just like any other laws, Congress may suddenly decide to change or repeal this law at any time. More to the point, this is one of the primary areas where investors are receiving misinformation and being rushed into making decisions, some of which are not financially savvy.
As we laid out in Part 1 - please refer to last month’s edition - these conversions have been available for the past 13 years, so any advisor who is behaving as if you are doomed if you don’t act now is, frankly, projecting a false sense of urgency, and you would be well advised to be very cautious dealing with such folks. The more interesting and more important question is where has your advisor been all these years?
Having said that, as retirement planners, we understand the power of time and compounding, so we’d want our investors to take advantage of good opportunities that will enhance their wealth as soon as possible, BUT only after performing proper due diligence.
Thurmont Times readers requiring assistance in determining how their Roth conversion numbers play out may request a free, no-obligation consultation by calling (301) 949-4449 or visiting www.LaserFG.com
A senior financial strategist with Laser Financial Group, Samuel is an accomplished personal finance expert, a Chartered Retirement Planning Counselor, and author with years of experience in retirement-tax planning. He regularly contributes to and is featured by various media outlets, including TV and radio.
“Nan”- Through the Eyes of Love by Carol Hutson
February 22, 2010
Who could be more special to a child then their grandparents? They love you unconditionally because they want to, spoil you rotten because they can, and are always there to make the hurt go away.
It is never their intention to take the parent’s place, but to enhance the grandchild’s life. It is very comforting for a child to know that in grandmas and grandpa’s home they are more special than anywhere else. This is Nan’s story seen through the loving eyes of her family.
Lillian, born 11/01/1919, to Paul and Myrtle Crilley, met Donald A. Marshall in September 1934, when she went with her aunt and uncle and others to Eyler Valley on a truck ride before attending services at their Episcopal church. “I believe it was love at first sight for Donald.” Lilly stated. “We were married the following summer on August 15, 1935.”I still have all the notes he wrote me.”
They had two wonderful children, Donald J. and eleven years later their second child Paula. Donald J. married Alice Bowers and had their only child- Bev. Paula married James Garman and had their only child Chris. Unfortunately, the love of Lillian’s life passed away on June, 11, 1985; sadly, followed by their son Donald J. who died on her birthday, November 1, 2001 of cancer.
Lilly known as “Nan”, to her grandchildren Bev and Chris, great-grandchildren Amy, Jennifer, Lucas and most recently twins Jacob and Elizabeth and one darling great-great-grandchild, Austin.
Paula writes lovingly of her mother, “My fondest memories of my mother as a child are wonderful.” ” All of the hugs throughout the day, the great home-cooked meals, the nurturing when I was sick and the love in everything she did. As a teenager, our home was the “hang-out.” “She worked away from home all day, came home and cooked a great meal for whoever happened to be spending the night.” “Friday nights were always the same—out to dinner and then shopping. I always brought a friend along, every week I came home with new clothes and the latest 45 rpm records. She never bought much for herself, but was content to make me happy. I fondly remember the holidays as we would gather in the kitchen and bake cookies, cakes and made candy.” “Fishing trips to the river with campfires over which we cooked dinner and burned marshmallows. I remember how proud she was at my son’s birth and how she beamed at his college graduation. Now, I see how happy she is to hold his children in her arms. She has been through so much in the 90 years. She is so much more than a mother—she is my confidant, my friend.”
Bev remembers fondly, time sent at her grandparent’s home the loving arms that held and comforted her when she was ill. “My first memories of Nan and Pap, were Sunday rides before dinner.” “Once we drove as far away as Cumberland, MD.” “I loved staying with my grandparents during the week.” “Nan always watched me walk to school.” “Pap liked to see me dressed up in pretty dresses.” “I still have the purple and white dress and the popcorn dress they bought me for graduation.” Now ninety, Nan is a cancer survivor of 40 year. She is a proud woman and a fighter, she is my bionic woman.” Bev states proudly.
Looking through several photo albums as we turned the pages of Lilly’s life, Bev and Lilly reminisced about past summers and holidays spent in the loving home Lilly shared with her family and memories of friends she holds so dear. Lilly remembers fondly her dear friend Mary Fogle. I asked Bev to sum up in one word her feelings for her grandmother. Looking across the table at her beloved Nan, with teary eyes and whispered, “LOVE.”
Chris, first memories of his grandmother- Nan is her homemade fudge. “She is the only one I know who made it from scratch!” She always put family first she made big meals for all of us, she was at every school and band function,” Chris remembers fondly.
Amy and Jennifer- her eldest great-granddaughters by Bev and Terry, responded “Nan is one of the most honest, caring, loving and sweetest people in our lives.” “We are truly lucky to be able to call her our great-grandmother.” “She has always been there to lend an ear or shoulder when needed.” “She truly has been a blessing to me in many ways by showing me there is nothing that cannot be overcome with the love and support of your family.” Amy continues
Sharon, a neighbor of eight years is a constant companion to Lilly, “Our friendship started by bringing in her newspaper, over the years we would sit for hours and talk.”
“She is a lovely woman, I feel like part of the family now,” Sharon states
Code Time-Snow Time
February 22, 2010
SNOW!!
It has been a long time since we have had this much snow, ain’t it great?
I thought that this would be a good time to talk about snow removal by the residents, businesses and the Town.
Recently Chapter 84, Property Maintenance was revised, reviewed and approved by the Board of Commissioners. Below you will find the new section addressing clearing sidewalks of snow and ice.
§ 84-62. Removal of snow and/or ice from sidewalks.
Hazardous Condition: The mayor and board of commissioners hereby declare that an accumulation of snow and/or ice on public sidewalks is a hazardous condition and creates an emergency situation. Within twelve (12) hours of the cessation of any fall of snow, sleet, or freezing rain, the owner, tenant, occupant, lessee, or person responsible for a lot or part of a lot abutting a paved sidewalk shall remove or cause to be removed any snow and/or ice from the abutting sidewalk for a width of three (3) feet, or the width of the sidewalk, whichever is less.
- In the event that the snow and/or ice on the sidewalk has become so hard that it cannot be removed without the likelihood of damage to the sidewalk, the person or persons charged with its removal shall, within 12 hours, cause enough snow/ice-melt and/or abrasive compound to be placed on the sidewalk to make travel on the sidewalk reasonably safe and shall, as soon as weather permits, cause the sidewalk to be thoroughly cleaned.
- A violation of this section is deemed to be a municipal infraction. The penalty for violation of this section shall be a fine of $50.00.
- a. Each day the sidewalks remains not cleaned as required shall constitute a separate offense.
The following is a new section to assist the Town in clearing the streets and keeping the clear.
§ 84-63. Depositing snow and/or ice onto a public street.
- It shall be unlawful to deposit snow and/or ice cleared from the sidewalks and/or driveways onto the traveled portion of any public street.
- A violation of this section is deemed to be a municipal infraction. The penalty for violation of this section shall be a fine of $50.00.
There may be times when we suspend the 12 hour time limit for clearing sidewalks, as was the case of the snow the weekend of February 5th and 6th, . We ask that you make an effort to clear you walks as soon as possible, but we will allow you a longer period of time to accomplish it.
Along with clearing you sidewalks, you should also clear out around your utilities. This would allow the Town’s Electric Department, the phone company as well as the cable company access to these boxes.
The most important roadside item to clear is the fire hydrant. If there would be a need for it and it cannot be found or gotten to, property or lives could be lost. Take to time to locate and clean around them.
In Chapter 84 there is a new section regarding the placing, throwing, blowing, or pushing snow into a public street.
§ 84-63. Depositing snow and/or ice onto a public street.
- It shall be unlawful to deposit snow and/or ice cleared from the sidewalks and/or driveways onto the traveled portion of any public street.
- A violation of this section is deemed to be a municipal infraction. The penalty for violation of this section shall be a fine of $50.00.
Placing snow into the street is not acceptable. This section also applies to any contractor clearing parking lots or driveways.
This happens after every snowfall. The Town employees work hard to get the streets and alleys clear of snow. Then residents or contractors come behind them and place snow back into the streets. The employees have to come back through the street to clear what has been placed into the streets. The Town understands how frustrating it can be to have snow pushed onto your sidewalk after you have cleared it, but the roads must be opened and cleared.
There are places within the Town that have a very limited space to place snow from your sidewalks. Throwing it into the street is not the place. It creates a traffic hazard and more work for the Town employees who have already cleared the streets. If an accident is caused by the snow that has been placed into the street after it has been cleared you could be held responsible for any damage or injuries caused by your actions.
Another place you might want to clear out around is your mailbox.
The Town of Thurmont asks that you assist the dedicated and hard working employees who work through the night to get your street open. If you can, move your vehicles off the street to allow for easier snowplowing. Remove basketball nets and other items placed along the curb and in the street that would make plowing you street more difficult. Our employees are some of the safest and best snowplow operators in the county, but sometimes accidents happen. The chance of an accident can be reduced if roadside hazards are removed. Let’s give the snowplow operators a break, don’t throw snow into the street, move your vehicles off the street if possible, and remove all basketball nets and other items placed in the street and along the curb.
I would like to thank our Town employees for their efforts in getting the Town open and running.
Kenny Oland
Say What? by Mike Cady
January 27, 2010
SAY WHAT!
Caveat Emptor is Alive and Thriving! By Mike Cady
Caveat emptor is Latin for “let the buyer beware” and it is alive and thriving in many businesses, but none more than in the auto industry. For the past three years, I served as the Business Development and Internet Manager for a local car dealership and what I learned was a real eye opener. I understood that buying a vehicle was a negotiation process, but I did not know on how many levels. Now retired, I am happy to share with you a few thoughts that may save you thousands of dollars on your next vehicle purchase.
Most people do a fair to excellent job of negotiating the price of their new car purchase, but completely cave in when it comes to the value of their trade, finance rates, and after-market products, such as: extended warranties, gap insurance, car care services, and security systems to name just a few options. First, here are a few general rules to help you avoid making an emotional versus intellectual decision:
- Ø Research the vehicles of interest to you prior to contacting any dealership. Make sure you know which vehicles best meet your transportation needs and desires (e.g. style, size, power, fuel efficiency, safety ratings, price range, etc.).
- Ø Ask a friend or relative to accompany you when you visit a dealership. Make them promise not to let you sign any papers on your first visit.
- Ø Go to the dealerships closest to your home or place of work to test drive the vehicles of greatest interest and have all of your questions answered to your satisfaction. Be sure to get a quote on one or two vehicles that you want most.
- Ø After getting the quote, have your trade-in (if any) appraised. Do not let the sales consultant know of your trade until after you get the quotes you desire.
- Ø Do not reveal any financial data on the first visit (e.g., completing a credit application or how much down payment you plan to make). None of these factors should influence the price of your new car or the value of your trade.
Each visit should take less than an hour and it is imperative you take charge of the situation by staying focused on your objectives, not those of the sales consultant.
New Vehicle Sales Price - Having a minimum of three quotes on the sales price of your new vehicle and trade-in value, you are ready to do some serious marketplace testing. To get your best deal, use the Internet by e-mailing three dealerships within a reasonable distance from your home or place of work that sells the brands of greatest interest to you. For example: if you decided on a Ford Taurus, Nissan Altima and Toyota Camry, ask nine dealerships for their respective prices on the exact models (including options) you are considering. This includes the dealerships you visited. Quite often, you will get a better price through the Internet than on the showroom floor. Do not concern yourself with your trade at this time. This important issue will be addressed on your second and (hopefully) last visit. Also, do not give your phone number and insist all communications be by e-mail. Regardless of the responses received, do not accept any of them as being their best price. There is still room for further negotiations on your second visit.
Return to the dealerships you originally visited armed with your Internet quotes. Many dealerships say they will match or beat any written quote. Directly ask the sales consultant how much over invoice is their quote. Once answered, ask to see a copy of the invoice. If they refuse or the invoice presented does not match the quote given, leave at once as this dealership cannot be trusted. Now, you are ready to deal by making an offer less than any of the quotes received.
Start the negotiation by taking the lowest quote received and offering the dealership of your choice $500 less than this quote. Pay no more than the lowest quote received or an amount greater than factory invoice (less factory rebates and incentives).
Trade-in Value - Tax wise, it is to your advantage to trade your current vehicle rather than sell it on you own. Note: its value is even more important to negotiate than the new car price. Start by going to www.kbb.com and entering all of the information about your trade (including zip code, mileage, all options and general condition). It will give you a trade-in value. Simply stated, take a copy of this information to the dealership and accept nothing less.
Finance Rates - Dealerships are only too happy to arrange financing for you. Most of them work with multiple lending institutions, but not necessarily to get you the lowest rate. Instead, most (if not all) of them try to place your loan with the institution that gives them the most mark up. For example, the dealership may tell you the interest rate is 7% for 60 months and the bank is actually offering 4.9%. Thus, the Dealership makes a profit of 2.1% on the life of this loan, which can add up to hundreds (if not thousands) of dollars. To avoid this mark up applying to you, always request the exact interest rate being paid and the name of the lending institution. Then, while at the dealership, call that entity and confirm the rate being quoted. If you are a member of a credit union, check with it for its best rate prior to visiting the dealership. USAA, as an example, offers a much better rate than commercial institutions. You can leave a deposit on a vehicle confirming the purchase and trade values while checking out finance options in subsequent days. If your credit is good, you should not pay more than 4.9% on a new vehicle and 6.9% on a used one.
After-Market Products - After a deal is agreed upon, the dealership will sweep you off to a Finance Office where a very pleasant person will go over all of the paperwork with you. However, before doing so, they will try to sell you a whole litany of products. Some of them are very worthy of your consideration. However, all of them are subject to negotiation. Do not pay the price quoted on any of them without seeing their actual cost and the mark-up being applied. One dollar over cost for extended warranties is a good deal. Gap insurance may be required by the lending institution, but that rate is also negotiable. By now, you have seen and talked to a number of people and are worn out. If too tired to cope with the Finance Officer, ask if you can return the next day to complete the transaction. Just the thought of you leaving the dealership will encourage the Finance Officer to be more efficient with your time and offer you their best product prices. And, there is nothing wrong with refusing all of the offerings. You can always return in a reasonable time-frame and pay cash for the items of interest to you.
Remember, caveat emptor (let the buyer beware) usually refers to the actual business deal itself. Is the
Library Time
January 27, 2010
Library Thankful for the Thurmont High School Class of 1961
New & Noteworthy at The Thurmont Regional Library
By Erin Dingle, Administrator (edingle@FrederickCountyMD.gov)
It’s always a bittersweet moment when Connie Fox calls me at the library. I’m always happy to hear from Connie but since 1994, when I hear her voice, I know she’s calling me it is to let me know that the Class of 1961 from Thurmont High School has lost another friend and classmate. And why does she let me know this? This special class has made the Thurmont Library their special memorial project and it’s something for which I’ve sincerely thankful.
In 1994 when Susie Wolf passed, Margaret Krone was the manager of the Thurmont Library. Susie loved to read so Margaret’s daughter, Mary Lou, who was a member of the Class of ‘61, suggested to others that it would be a fitting memorial to Susie to have everyone donate money to the library to buy books. Classmates unanimously agreed, believing that it would be a wonderful way to give back to the community. Many of the classmates have moved away but all hold fond memories of growing up in Thurmont, the library and everything that small town America cherishes. Many of the classmates return for the yearly reunion and keep in close contact throughout the year. Connie Fox who still lives in Thurmont, and Gladys Baker who moved to Taneytown work together with the library to keep track of the donations.
And that’s how it all began. The most recent donation totaled $795 and so far the library has received in excess of $5000.00 from this generous group. We’ve been able to purchase books about the topics their classmates cared most about - children’s storybooks, gardening books, travel books and other subjects of general appeal. All of the books have a special bookplate noting that the book was purchased from a donation of the Class of 1961, Thurmont High School. Look inside the front of the book next time you check out a book out of the library - you may be enjoying the generosity of this very special group of people who value libraries, their hometown and most of all their fellow classmates.
Investment Time
January 27, 2010
Thinking Roth Conversion? You Need to Consider This First (Part 1)
First, Happy New Year! We hope you had a wonderful holiday season and have a great start to 2010. For the next two issues or so, we will be discussing what seems to be the new kid on the block in the world of personal finances when, in fact, it really isn’t - Roth IRA conversions.
Today, we will examine why, for vast majority of Americans - probably including you - Roth IRA conversions may not be new at all. In subsequent issues, we’ll discuss certain details you must be aware of before taking the Roth leap, if you even find it necessary at all.
The general premise of Roth plans - as opposed to qualified plans - is that you contribute after-tax (nonqualified) dollars today and have access to those funds later (including any gains) tax-free, provided you meet certain conditions, which are laid out by Uncle Sam. All things being equal, given the fiscal climate of our nation and the bad tax planning advice most Americans receive when preparing for retirement, the Roth premise is better than traditional qualified plans for maximizing spendable income.
You most likely have already heard about the 2010 Roth Conversions, since almost every conventional financial institution and advisor is marketing them like mad as “America’s new tax break.” You may have even received materials about them in the mail, seen/head about them in the mass media, or had your advisor contact you about them.
Calculating MAGI
The Tax Increase Prevention and Reconciliation Act of 2005 eliminates the modified adjusted gross income (MAGI) limits on Roth IRA conversions in 2010 and beyond. Until now, you were allowed to convert qualified funds only if your MAGI (before income from the conversion) was $100,000 or less, regardless of whether you were single or married.
You calculate your MAGI by adding back certain items to your Adjusted Gross Income (AGI), which can be found on line 38 of your Form 1040; or line 22 of your Form1040A:
- Traditional IRA contribution deductions
- Student loan interest deductions
- Tuition and fees deductions
- Domestic production activities deductions
- Foreign income or housing costs excluded on Form 2555
- Foreign housing deductions taken on Form 2555
- Savings bond interest excluded on Form 8815
- Adoption benefits from an employer excluded on Form 8839
Yes, that’s quite a technical list. Our goal is not to make you tax experts, but rather to give you a bit of an understanding of the law so that you can fully appreciate our perspective.
Realistically Speaking
The fact is that millions of Americans - probably you included - do not have a MAGI of $100,000 or more. Meaning, they could have converted their qualified dollars under rules that have been in existence since the birth of Roth IRAs in 1997.
The even more interesting and unfortunate situation is that any investor - regardless of their gross income, AGI, or MAGI - could have achieved the same general benefits offered by Roth IRAs by maximum-funding an investment grade life insurance contract within the confines of sections 7702 and 7702A of the Internal Revenue Code.
So America’s new tax break is, in reality, nothing new. We believe the more serious questions that investors and some so-called financial experts should answer are:
- If the Roth principle is a preferable option for retirees - and we concur that to be true in most cases - why wasn’t the change initiated before now? Here in 2010, more than a decade has passed since 1997.
- Why are these same advisors still encouraging younger investors to fund qualified 401(k)s, 403(b)s, 457s, and tax-sheltered annuities? Don’t they realize that they are literally building retirement-tax bombs, since these same so-called experts are, ironically, predicting an increase in future tax rates?
Are we saying that you should flat out avoid a Roth conversion? Of course not. We are, however, saying that you must demand nothing short of thorough analyses based on your specific set of circumstances, not generalizations provided by a marketing brochure, website, or commission-driven salesperson.
The majority of those investors we have seen were not even aware of certain critical facts they needed to consider before making such a move. In subsequent issues, we will bring you some of these need-to-know details, so that you can be better informed as you make your critical financial decisions. We encourage you to request a private, no-obligation consultation to assess your options by visiting www.LaserFG.com or by calling (301) 949-4449.
A senior financial strategist with Laser Financial Group, Samuel is an accomplished personal finance expert, a Chartered Retirement Planning Counselor, and author with years of experience in retirement-tax planning. He regularly contributes to and is featured by various media outlets, including TV and radio. To read his weekly columns or receive your no-obligation consultation, please visit www.LaserFG.com or call (301) 949-4449 today!
A word from Emmitsburg Mayor Jim Hoover
January 27, 2010
A new year means new challenges and new commitments. As mayor for the past seven years I’ve been faced with many challenges, of course, not everything was accomplished as planned or expected.
Personally, I find it more and more challenging every year to provide the public with what some believe to be adequate information. In 1998 when I was elected as a commissioner the only source of information that the town had control over was cable channel 99 which meeting agendas were not advertised on. If you wanted information on any town issue you had to contact the town office by phone or visit the town office in person. Since 1998, we advertise all meetings with an agenda on channel 99; we’ve added a website and began televising town council meetings and planning commission meetings. But, the increased level of information that is now provided to the public is often criticized for not being enough informing and the town is often accused of making decisions prior to meetings, behind closed doors without due process and without voting. As a public body, the public has the right to witness the mayor and commissioners conduct business and, except for personnel records, legal matters, contract negotiations and a few other exceptions the town is required to provide writing copies of any documents requested by anyone. The mayor and board of commissioners value the public’s opinions but, as elected officials, we were elected to make decisions, however, not every decision is a popular one. When unpopular decisions are made it seems to create a justification to accuse the town of not providing adequate information and denying the public due process. None of the commissioners or the mayor accepted their positions because they want to do a bad job for the town. Each of us takes pride in our positions and we accepted these positions for the right reasons. Most of our staff does not live in town but, all of our employees care about the town and they take pride in the work they do for Emmitsburg. Obviously I a little frustrated, but my comments are not directed at anyone. I am asking that we look at things with the glass half full not half empty. Look back 5, 10, 15 years than look at the town today and focus on the improvements we’ve made along the way. I know we’re not perfect, there’s always room for improvement and that is our goal to make things better.
As far as providing information to the public, with today’s technology it’s impossible to satisfy everyone’s wishes. With computers, email, smart phones, text messages, web sites, twitter, face book, instant messages, cable TV, satellite TV its impossible to keep up. The Town staff will be linking agenda items on the town’s website which will provide an opportunity to review draft ordinance without coming to the town office or attending a town meeting.
I very much enjoy being the mayor and I sincerely appreciate the opportunity the Emmitsburg community has given me. I know that I will not always be able to give you the answer that you want but, I will always try to give you an explanation about why the town’s position and your position may not agree.
Obersvations by George
January 27, 2010
REMEMBERING FEBRUARY 28, 1959
On occasions, I have devoted this column to special events and happenings that have played a major role in the history of our community. I have always felt that it does one good to look back and review our past history. Too oven we take it for granted and never give serious to the important part it plays in our daily lives.
February 28, 2010, marks the 51st anniversary of the Thurmont Post Office building located on Water Street in Thurmont, Maryland. I remember well the day of the dedication. It was on Saturday, February 28, 1959. .
It was just a normal working day for most citizens of Thurmont and business was as usual, with the exception of the local post office. Citizens of Thurmont and the surrounding area had gathered on Water Street around 2:00pm for the dedication of the newly constructed building that would be the new home of the Thurmont Post Office. Excitement was high. It was indeed a gala occasion.
It was around 1811, when the very first post office made its appearance in Mechanicstown (as Thurmont was known in its early days), on West Main Street. Reuben Osler, a tinner, had a small shop in the rear of his house. It was in this shop that the first post office was established, and Mr. Osler served as the postmaster. Records tell us that the post office was so crude that a small cupboard was the only item of furniture. It was divided into sections into which the mail was placed until it was picked up by the citizens for whom it was intended.
The Thurmont Post Office moved its operations several times and when Samuel Birely and Van B. Osler built the Thurmont Bank in 1891, the Thurmont Post Office was moved to the Square where it occupied a room on the West side of the Bank. Several years later the Post Office moved into the Masonic Building on East Main Street. The Thurmont Post Office has served the community well since 1811 and as a result of being overcrowded was forced to move into larger quarters.
The new building on Water Street, built by Carroll Kinsey, President of the Thurmont Construction Company, for the Thurmont Masonic Temple Association, Inc which was the Lessor.
On hand for the dedication that Saturday, February 28, 1959, was Mr. R. E. O’Donovan, Postal Installation Manager of the Washington Region of the United States Postal Service, who was the principal speaker during the ceremonies.
As the guests and officials gathered for the dedication ceremonies, The Thurmont High School Band, under the direction of Calvin Wacker, rendered several instrumental selections which added to the occasion.
The official dedication ceremonies began with the invocation by the Reverend Eugene McVicker, Pastor of St. John’s Lutheran Church. Lee Munshour, Acting Postmaster, welcomed all the visiting guests and officials and introduced Samuel L. Birely who acted as Master of Ceremonies.
Letters and telegrams addressed to the Acting Postmaster Munshour were read, among which were those of President Eisenhower and Postmaster General Arthur E. Summerfield. Following the remarks of Thurmont Mayor, Charles R. Ambrose, Mr. O’Donovan delivered the dedicatory address.
In his remarks, Mr. O’Donovan presented some very interesting facts about the size and scope of the U. S. Postal Department. Following his remarks, Carroll Kinsey of Thurmont Construction Co., presented the keys to the building to Ernest P. Hammaker, President of the Thurmont Masonic Temple Association,Inc. Mr. Hammaker in turn presented the keys to Postmaster Munshour.
Mr. O’Donovan presented to Postmaster Munshour, an American flag which formerly flew over the Post Office Department in Washington. Mr. Munshour presented the flag to the Color Guard of the Edwin C. Creeger Jr., Post 168 American Legion, who raised the flag in front of the building, as the audience, assisted by the Thurmont High School Band, sang the National Anthem.
Under the direction of Miss Mildred Trevett, the Thurmont High School Choral Group rendered several vocal selections and the Reverend Lloyd L. Wolf, Rector of the Catoctin Parish pronounced the benediction.
Since that memorable day, 51 years ago, February 28, 1959, The Thurmont Post Office has done a remarkable job in taking care of our postal needs and delivering our mail. They are indeed a dedicated group of employees. Next time you come face to face with any of the local postal employees, wish them a HAPPY 51st ANNIVERSARY.
George W. Wireman
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