You can buy Stocks in Companies that you Patronize by: G Mentz, Esq.

Recently, I was reviewing some stock charts on top performing businesses that are publicly traded. I was delightfully surprised to see many of my favorite companies which I regularly patronize on the leading-stocks lists. The question that this exercise forces us to examine is: where have you been spending your dollars lately? If you have been to the typical strip-mall, used technology, priced transportation, or paid for health care, there are generally businesses earning revenues from your monthly home-budget or generalized business spending.

As Charles Schwab once implied, it is not difficult to sell a prudent investor a Utilities Mutual Fund because they inherently know that their energy bill has never gone down. What I mean is to follow the money and your budget before investing in the stock markets. It is sometimes the perfect gut check to determine if a stock represents products and services that you know and believe in.

Some of the stocks on the lists that I have noticed in the last year are:
1. Family Dollar (NYSE:FDO) – Quick and easy purchases of supplies and food for home, hygiene, kitchen and more. Both businesses and home budgets spend money here.
2. Monster Beverage (NASDAQ:MNST) – The Big Energy Business – Between Red Bull and the rest, the non-alcoholic drinks that are enhanced with: Amino Acids, Proteins, B- vitamins, and more are hot stocks where big companies might want to buy them out.
3. GNC Holdings (NYSE:GNC) – While the economy is really bad, people are still taking care of themselves, watching their weight, and using holistic treatments rather than expensive alternatives.
4. Michael KORS (NYSE:KORS) I have not personally bought their products, but this company typifies the spending that is occurring in this bad economy. While folks may not have enough for a new car or home, the hardest working are buying “big brand” watches and jewelry for personal satisfaction.
5. VISA or AMEX – The credit card and merchant companies are making more and more money charging fees, interest and more while reaping revenues from both buyers and sellers. Loyalty rewards and points continue to be drivers of the use of cards.
6. TripAdvisor (NASDAQ:TRIP) and other travel related companies such as CTRIP in China and Priceline keep on growing
7. Various Pharma or HealthCare Stocks – Do your research. Some companies are well positioned to benefit from Obamacare or revolutionary patents and cures.
8. Panera Bread (NASDAQ:PNRA) – Another mall based quality cafe that draws from the visibility and traffic of their approximately 1500 locations.
9. Chipolte Mexican Grill (NYSE:CMG) – About 1200 locations to eat in or take out where many locations are next to or convenient to other business or shopping areas.
10. Apple (NASDAQ:AAPL) – If you have one or if your lady has one, then you know.
11. Verizon (NYSE: VZ) – One of the many service providers. If you have a phone, you will need wireless service for phone, data and more.
12. WalMart (NYSE: WMT) – With the discount super-locations, you can fill your basket with food, supplies, clothes and more at low prices.
13. Mosaic – Feed and Fertilizer – Feeding the Animals and Plants that feed you. (NYSE:MOS)
14. Dollar Tree – Cost effective products from discount outlets. (NASDAQ:DLTR)

The other areas where we all spend money which may be very emblematic such as: Auto, Fuel, Insurance, Health Care, Medicine, Security, Internet Services and more. If you are having trouble remembering where all of your money goes, take a look at your checkbook statements or your credit card statements.
In the end, I would not encourage people to buy any stock that is overpriced or that has too much downside. However, the fact that many of these companies have done well in the worst economy in 80 years, the proof is in the performance. What is also amazing about many of these stocks is that they are companies that represent brick and mortar, they have physical locations in both urban and smaller cities, and many of these companies are even situated within the same mall locations

Dr. George Mentz is a world recognized wealth management analyst and professor who has authored several revolutionary books. Prof. Mentz, an international attorney, has been a keynote speaker globally in Asia, Arabia, USA, Mexico, Switzerland, and in the West Indies. Mentz can be contacted for speaking engagements at www.gmentz.com or www.AAFM.us

*No tax investment or legal advice provided herein. Please consult with a licensed professional in your jurisdiction before making any important financial or legal decision.

1. Experience – Make sure your advisor has a track record of success.
2. Accredited Education (Level 2) Preferred – Make sure your advisor has an education from a program that is accredited. Also, if the advisor has a degree or diploma from a Level 2 institution that has both regional accreditation and business accreditation, that is the best. You may want to ask your advisor if he or she has earned a business degree from an ACBSP or AACSB accredited program. See www.ACBSP.org
3. Licenses – Are they licensed with the SEC or FINRA and do they have a record of good standing.
4. Government Professional License – Are they a lawyer or CPA. If so, check with the state bar association or AICPA to make sure they have a solid record.
5. Regulatory and Product Knowledge – Make sure your advisor has the ability to recommend a broad array of solutions for your wealth preservation and growth.
6. Qualifications – See if your advisor is a member of a prestigious body such as the CWM ® Chartered Wealth Manager Institute. Ask if they are board certified as an: Accredited Financial Analyst ® or Chartered Wealth Manger ®. Also, if they have a law degree and license or CPA, then they may also be competent to provide advice on tax law and estate planning.
7. Value and Compensation – How will your advisor earn income from you? Make sure they get paid for their work, but it may be best to make sure they are not double dipping. Some advisors will charge a fee for advice and then also invest you in a product that also has fees. With the ease of use of ETF Exchange Traded Funds, make sure your advisor is providing added value.
8. Wealth Team – Does the wealth manager have a group or team to help you in the areas of: Investing, Wealth Preservation, Risk and Insurance, Trusts, Legal, Retirement and Tax. Ask if they have names of people they have worked with successfully.
9. Customer Regulations – Be sure to let your advisor know what your objectives are. Make sure they understand your 1) suitability, 2) risk tolerance, and 3) time horizon. Ask the wealth manager to explain each of these to you in detail.
10. Policy Statement – Make sure your wealth manager provides you with an IPS Investment Policy Statement that outlines what they will do for you and the limitations involved.

*No investment, legal or tax advice is intended to be given herein. Please see a licensed professional before making any important decision.
Source: www.AAFM.us and www.financialanalyst.org

Starting in 2013, federal and state taxes hikes are set to hit many of the nations hardest working families and retirees. If you have a company or appreciated asset that you are planning to sell, you may want to do it before the end of the year. Beginning in 2013, the cost and taxes on selling any tangible asset or your business may go up by a whopping 60 percent.

The established tax rates on long-term gains and qualified dividends will expire on December 31, 2012. Starting 2013, the federal tax rate on long-term gains will go up to 20% (or up to 10% if a taxpayer is in the fifteen percent tax bracket). In addition to this tax hike, the state income tax is added to the 20 percent. Thus, if you live in New York for instance, your federal and state combined tax to sell an asset for a profit would be about 28% if you add the 8 percent New York state income tax. But wait, there is more. Beginning in 2013, you will also be hit with another new tax on long-term capital gains and dividends where you get whacked with an additional 3.8% “Medicare contribution tax.

Also starting in 2013, the distinction between ordinary and qualified dividends will disappear, and all dividends will be subject to the ordinary tax rates. Thus, the maximum rate on dividends is scheduled to increase from 15 % to max out at 39.6% as the Bush Taxpayer Relief Act provisions expire. Thus, taxes on fixed income dividend assets will go over 100%. I would only assume that these new taxes may hurt the share price and demand for dividend yielding stocks.
To sum it up, if you have worked for 30 years in New York to build a company and you sell your small business for $500 thousand dollars, your federal taxes will go up on that retirement sale from about 15% to a whopping 23.8 percent in federal taxes plus state tax. And yes, you then would owe on top of that another 7 or 8 percent to the state of New York to bring you up to well over $150,000 dollars or 30% percent of your retirement being gobbled up by the state and federal governments.

To make a comparison, there may be some folks in a (state with no income tax) such as: Texas or Florida right now who have recently established residency. By the end of the 2012 year, they can sell their stock or company in a long-term capital gain transaction with the tax rate at a flat rate of 15% or only $75,000 dollars. This is 100% less than what the New Yorker or Californian might pay in 2013. “Viva el la Estado de Texas y la Florida” …..

From a philosophical standpoint, the less federal tax on capital gains, the more money that goes into a local economy where the seller resides. In the end, high capital gains rates tend to freeze up assets, constrict the sale of property, and the middle class generally end up waiting till they die to sell a company so as to avoid the capital gains taxes. Overall, if a taxpaying citizen does not receive a reasonable majority of the proceeds from the sale of a business or property, they will not sell or spend or circulate the money in local communities. Further, if people don’t sell things, taxes are not generated.

This whole capital gains tax debate brings me back to a vivid but real experience. I remember as a teenager reading the list of the Forbes 400 richest people in the world. The list in the 70′s was primarily people who inherited money, businesses, assets, or trusts. This list made me believe that being rich may be just luck and inheriting a 2nd or 3rd generational business. However, after the tax rates were lowered in the 80′s, the list changed quickly over the next few years to be comprised mostly of hard working folks who were “self-made”. Thus, my personal belief in the possibility for all Americans to become prosperous changed. The moral of the story is that lower tax rates helps create new wealth and new abundance. In sum, the incentives for hard work are directly correlated to the potential rewards, and everyone benefits from creativity and inventions in the form of cures, technology, and even tax receipts. And of course, higher taxes reduces global investing into new American ventures that may grow the economy.

For instance, even if you read the self-help book, Super Rich, by the famous music mogul Russell Simmons, you will see that even Mr. Simmons claimed to have used the favorable capital-gains rates to sprinkle around the vast proceeds from the sale of one of his businesses and share some of his good fortune with his workers who loyally invested their energy into his company over the years. I personally commend Mr. Simmons for rewarding his people for their contributions.

In the end, we must continue to think of ways to incentivize the hardest working and provide reasonable benefits for those who contribute with great creativity and effort.
Some Ideas for our Readers to Avoid Undue Tax:
1. Subchapter S Corporations may be more useful going forward to mitigate self-employment taxes or other taxes. However, dividend rates are going up if nothing is done by the administration.
2. The Purchase of ETFs, Funds or Stocks that do not produce interest or dividends may be a better investment for long term growth. iShares S&P 500 Growth Index Fund (NYSE: IVW) and WisdomTree LargeCap Growth Fund (NYSE: ROI) Read more: http://www.benzinga.com/analyst-ratings/analyst-color/12/02/2320350/growth-etfs-for-all-seasons#ixzz20LhXdkeF
3. Use of Tax Deferred Variable or Fixed Annuities or Self Directed 401Ks or IRAs may also become even more popular.
4. Read my previous article on Estate Tax Adjustments in 2013 and learn to prepare for those tax hikes and changes.
5. Consider donating appreciated assets to charity rather than cash to avoid undue taxes.

Dr. George Mentz is a world recognized wealth management commentator and professor who has authored several revolutionary books. Prof. Mentz, an international attorney, has been a keynote speaker globally in Asia, Arabia, USA, Mexico, Switzerland, and in the West Indies. Mentz can be contacted for speaking engagements at www.gmentz.com  or www.managementconsultant.us  To become a Chartered Wealth Manager please contact the AAFM

*No tax investment or legal advice provided herein. Please consult with a licensed professional in your jurisdiction before making any important financial or legal decision.

http://www.irs.gov/taxtopics/tc409.html

http://www.benzinga.com/personal-finance/financial-advisors/12/06/2691411/new-tax-rates-and-adjustments-for-2012-income-and-

http://www.smartmoney.com/taxes/income/what-obamacare-may-mean-for-taxes-1335896160486/

http://www.thestreet.com/story/11598139/1/time-to-avoid-2013-capital-gains-hike-is-now.html

http://businesscertification.org