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Brian Rezny
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Brian C. Rezny, CFP, President of Rezny Wealth Management, Ltd. Rezny Wealth Management is a Fee Only Investment Advisory Firm, specializing in Portfolio Management for Pre-Retirees and Retirees. RWM is an SEC Registered Investment Advisor. Brian is also a Board Certified Financial Planner... More
My company:
Rezny Wealth Management, Ltd.
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Rezny Wealth Report
  • Debt Ceiling Talk Swirling

    Wall Street needs to be more worried about the debt ceiling, according to Treasury Secretary Jacob Lew, saying that the market has been too calm in the face of the looming limit. And in a letter to Congress, the Secretary warned that the "extraordinary measures" taken by the Treasury Department will be exhausted on October 17th at the latest. He also estimated that at that point, the Treasury will have a cash balance of $30 billion rather than the $50 billion he estimated a few weeks ago, meaning the Treasury would only be able to spend what it takes in…and that's not enough to pay the country's bills.

    Just a few of the bills the Treasury has to pay in the next month:

    October 1st: $42 billion for Medicare, active-duty military and civil service payments

    October 3rd: $25 billion for Social Security benefits

    October 9th, 16th and 23rd: $12 billion per day for additional Social Security benefits

    November 1st: $67 billion for Medicare, active-duty military and civil service payments

    Once the Treasury's "extraordinary measures" run out, starting on October 18th, there will be a $106 billion shortfall through November 15th, according to the Bipartisan Policy Center. That means the Treasury won't be able to pay one-third of the bills.

    Sep 30 4:23 PM | Link | Comment!
  • Social Security Turns 78

    On August 14, 1935 President Roosevelt signed Social Security into law, with the idea that it would "give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age".

    As it turns 78, has Social Security done what it was meant to do?

    Not exactly. Today, there are 9 million seniors living in poverty despite Social Security. The program hasn't shielded seniors from 'poverty-ridden old age', and it has failed at the expense of younger generations.

    The program started running a cash flow deficit in 2010, and that gap widened to -$55 billion last year. It is projected to keep expanding, and will hit -$322 billion by 2032.

    Aug 22 12:30 PM | Link | Comment!
  • Apple V. Congress

    Last week, Apple CEO Tim Cook went where Steve Jobs never had to go - to Capitol Hill for a Congressional committee grilling.

    The hearing came a day after a Senate report slammed the company for avoiding taxes by "shifting" profits to a "complex web" of offshore entities. The report said that Apple used Ireland-based affiliates to pay little to no corporate taxes on $74 billion in worldwide income from 2009 to 2012. From 2009 to 2011, Apple International Operations, a unit which is incorporated in Ireland, but has no employees there and is controlled in the US, accounted for $30 billion of the company's profits. Because the unit does not have tax residency in either country, it is out of the reach of the IRS and Irish tax collectors.

    In other words, Apple behaved like a corporation.

    But the company did not break the law. Apple pays "all the taxes we owe - every single dollar" according to Cook. He told the committee that last year the company paid $6 billion in taxes…which amounts to more than $16 million every day.

    So basically, Apple was accused of obeying American tax laws and not paying more taxes than it was legally obligated to.

    Apple is sitting on $145 billion in cash - and about $102 billion of it is offshore. With a US corporate tax rate of 35%, it's not realistic to bring that money home. If the company needs cash it's far cheaper to get it in the bond market. Case in point: just last month Apple raised $17 billion in the bond market, and it didn't have to repatriate a single penny from overseas.

    Dragging Apple's CEO in front of a Congressional committee was meaningless. Lawmakers created the tax law and its loopholes, and then they acted surprised when a corporation used them. Some might say the people who created the problem were on the wrong side of the table last week on Capitol Hill.

    Rezny Wealth Management may hold investments in above-mentioned securities; positions can change at any time.

    May 28 2:57 PM | Link | Comment!
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