Lowest annual percentage increase since the turn of the century

DES MOINES, IA (02/09/2015)(readMedia)-- State Treasurer Michael L. Fitzgerald reports that outstanding debt obligations for state and local governments in Iowa totaled just over $15 billion as of June 30, 2014. Overall, this represents an increase of 1.7% over last year. All political subdivisions, instrumentalities and agencies of the state are required to disclose outstanding long-term obligations, including bonds, notes, capital leases and loans, annually to the state treasurer. "While debt nearly doubled in the last decade, this is the lowest annual percentage increase reported since the turn of the century," Fitzgerald explained. "We see the greatest increases in debt issued by education-related entities such as schools, the Board of Regents and community colleges."

Education-related debt comprises over 38% of the total debt (public schools 23%, Board of Regents 11% and community colleges 4%). Debt issued by schools increased 8.49%, Board of Regents 7.11% and community colleges 6.86% over last year. A majority of the $5.8 billion debt incurred by school districts and AEAs is for construction or renovation projects. "In some areas, we see new schools being built, while in other areas we see old infrastructure being improved," Fitzgerald stated. "The fact that communities come together to better their schools is a reflection of the importance of education in Iowa."

Cities report 35% of all outstanding debt, with five cities (Des Moines, Cedar Rapids, Coralville, Sioux City and Davenport) holding over 30% of the $5.3 billion reported.

Iowa counties report $859 million in debt with Polk County reporting nearly 30% of the total. Other entities with outstanding debt issues include state authorities with $2.1 billion and state agencies with $924 million. Counties, state authorities and agencies all decreased their debt in the last year.

"While the overall debt increase in Iowa is moderate, we make this information available to all Iowans by county so they can see the total debt and changes over the years in their own communities," Fitzgerald stated. Visit the state treasurer's office at iowatreasurer.gov and click 'Outstanding Obligation Report' under the 'For Governments' tab to view the report and additional information by a specific reporting entity.

Overlooked Deductions May Cost You Thousands

Millions of Americans face a challenge in meeting their budgets every month - not just financially, but also in their time budgets, says investment advisor Reid Abedeen.

"Knowledge is power and time is often money, but what if you don't have the time to empower yourself with knowledge? For many households, that often means losing out on thousands of dollars through tax deductions," says Abedeen, a partner at Safeguard Investment Advisory Group, LLC (www.safeguardinvestment.com).

"As a family man myself, I understand what it means to work hard to provide the best possible for my wife and children. Had I not worked in the financial sector for almost two decades, I might not have understood how to best troubleshoot my tax return, I sympathize."

Abedeen offers the following strategies that may be relevant for your family this tax season.

•  Take tax deductions for capital loss. If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately. However, you may deduct capital losses only on investment property, not on property held for personal use.

•  Fund your retirement to the max. You can contribute up to $5,500 to an IRA in tax-year 2014, or $6,500 if you are age 50 or older. Workers in the 25 percent tax bracket who contributed $5,500 to an IRA would save $1,375 on their 2014 tax bills. You'll want to check your eligibility and understand the deadline for the 2014 deduction. If you make a deposit between Jan. 1 and April 15, you need to tell the financial institution which year the contribution is for.

•  Advisory fees are tax-deductible. Don't feel like spending money to save and make money? There's a workaround. Before closing the door on the possibility, inquire with a financial expert. Most are happy to give a free initial consultation, and you don't have to be a millionaire to make it worth your while.

•  Gift assets to children. You don't even have to file a gift tax return on an asset that's valued less than $12,000, which is not taxable. If the fair market value of the gifted asset is more than $12,000 per person per year, but less than $1 million, there is the requirement of filing a gift tax return, but you won't be taxed. The gift still is not income taxable to the recipient.

•  Deduct a home-based office when used for your employer. If space in your home is used exclusively and regularly for a trade, you can count that as a deductible. Calculate the square footage of your home office and divide the area of your office by the area of your house. If the percentage is 14 percent, for example, that represents the percentage of your total home expenses that can be allocated toward the home office deduction. For further questions, consult a professional.

"You'll want to be very vigilant regarding these details of these deductions," Abedeen says. "For any questions, I seriously recommend consulting a professional."

About Reid Abedeen

Reid Abedeen is a partner at Safeguard Investment Advisory Group, LLC (www.safeguardinvestment.com). As an investment advisor, Abedeen has helped retirees for nearly two decades with issues such as insurance, long-term care planning, financial services, asset protection and many other areas. He holds California Life-Only and Accident and Health licenses (#0C78700), and holds a Series 65 license, and is registered through the Financial Industry Regulatory Authority (FINRA). Abedeen is a family man who owes much of his fulfillment in life to his wife, Smyrna, and his three children, Yusef, Leena and Adam.

- Largest Wine Boutique Franchise to Host Discovery Day on Feb. 23 in Coralville, Iowa -

"We see great potential for further development in these metropolitan areas of Iowa," said Bryan McGinness, CEO of WineStyles Tasting Station. "Our new store design and ongoing corporate support, as well as our high unit volumes and low start-up costs are just some of the reasons that make our brand an attractive investment opportunity for entrepreneurs. We look forward to meeting with prospective franchisees at our Discovery Day event in Coralville and sharing the many benefits of becoming a WineStyles Tasting Station franchisee."

In addition to Coralville, WineStyles Tasting Station currently has three other Iowa stores located in Johnston, Sioux City and West Des Moines. The company aims to develop an additional 5-7 locations throughout Iowa in cities such as Ankeny, Marion and Dubuque over the next several years.

To fuel WineStyles Tasting Station's growth in Iowa and across the country, the company is seeking entrepreneurs with retail experience. WineStyles Tasting Stations will be developed through single-unit and area developer agreements. Depending on the real estate site selected, franchisees can expect the total cost of investment for one store to be approximately $229,000 - $380,500. The initial franchise fee is $25,000. For more information on franchising and conversion opportunities, visit our newly designed website, www.winefranchise.com or call 866-424-WINE.

About WineStyles Tasting Station:

WineStyles Tasting Station demystifies wine and craft beers by categorizing bottles by style and taste, rather than by varietal or region. Each store features regional craft beers and hundreds of rotating wines from around the world with most priced $15 - $30 per bottle. WineStyles Tasting Station customers can also Taste, Learn and Enjoy^® the best in artisanal cheeses, fine chocolates, craft beers, organic teas and other gourmet items. Headquartered in West Des Moines, Iowa, WineStyles Tasting Station currently operates more than 25 locations across the country. WineStyles Tasting Station encourages all customers to drink wine and beer responsibly. For more information, visit www.winestyles.com.

Written By Donna M. Phelan, MBA

Although it is improving, there is an economic cost to being a woman that reverberates into retirement. It results from multiple long-term socio-economic conditions.

The first is that women have consistently earned less than men, and real wages have stagnated.  Currently women earn about one-fourth less than men.  The disparities are even greater for black women, who earn about 30 percent less and Hispanic women, who earn about 40 percent less (census.gov). The Center for American Progress calculates that over a forty-year career life, that difference may add up to $300,000 for lower earners, $431,000 for average earners and $723,000 for higher earners.

Women are also less likely than men to start their careers in, or get promoted to management positions.  A March 2010 Catalyst article in the Harvard Business Review reports that "women continue to lag men at every single career stage, right from their first professional jobs."  Women comprise only 5 percent of CEOs of the Fortune 500 companies.  A 2014 Grant Thornton International Business Report survey, featured in the March 6, 2014 issue of Forbes, found that the number of women in senior management has "stagnated" at 24 percent since 2007. This means that most women miss out on the majority of lucrative executive benefits that may help secure their retirement.

An August 14, 2013 article in the Wall Street Journal, quoted an Aon Hewitt study, which said that the 401(k) gender gap is even bigger than the gender pay gap. The study showed that the average man's 401(k) savings was $100,000 dollars.  The average woman's 401(k) retirement saving's was $59,300 dollars- a full 40 percent less.

Women are more likely to leave the workforce for childcare and eldercare.  This redirects their resources of time, money and energy away from retirement saving.  It also hinders career progress.  Studies by Claudia Goldin of Harvard show that when women reenter the workforce, they permanently lag behind in pay and promotions.

Women who leave the workforce for caregiving also incur consequences for Social Security. Women receive about one-fourth less than men in Social Security benefits, $13,236 versus $17,004. Nearly 30 percent of women over age 65 rely on Social Security for virtually all of their income, a rate that increases with age. The percent of women older than 65 living below the poverty level of $11,670 was 11 percent versus 6.6 percent for men, and 18.9 percent versus 11.9 percent for those living alone.  Women who turn on Social Security early for financial reasons permanently lock in a lower lifetime benefit in what may be their only pension.

Women also tend to work in industries that don't offer retirement plans, so they miss the opportunity for wealth building through an employer match. With women's average income hovering around $38,345, it is difficult to see how women would have any discretionary income left over for retirement saving.

Marital status is also a factor. Married women fare best, divorced and widowed women next best. Never-married single women incur the most cautious outlook for retirement.

The longevity gap between men and women is narrowing, but women still outlive men, and end up living out their later years alone.  Greater longevity is accompanied by larger risk of diminished purchasing power due to inflation.

The many socioeconomic issues facing women and retirement raise concern. What if the old method of trying to save enough for retirement doesn't work for women?

New strategies are needed if women are going to thrive in retirement. Women should consider working longer in their careers, and part-time in retirement.  Women should also consider non-traditional residence sharing - renting out empty bedrooms, getting a roommate, and downsizing.  With the savings from reduced housing expenses, women could make financial investments in income-producing vehicles. Women could also turn their hobbies - for which they already have the skills, tools and materials - into profitable home-based businesses.

Women need to understand the role they play in their own retirement and take responsibility. They need to become financially literate and realize they will need income for life.  Women need to create stackable income streams to empower their retirement security and meet their monthly spending needs.

Women should also start talking to other women about retirement planning.  What are their friends doing to prepare for retirement? What if they got together once a month over coffee to start a conversation about women and retirement? They might discover that they have ideas, talents and resources to share with other women, which might enhance the retirement planning experience and success of a larger scope of women.

About Donna M. Phelan

Donna M. Phelan has spent more than 18 years at some of Wall Street's largest and most prestigious investment firms. She holds an MBA in finance from the University of Connecticut, and provides personal financial advice to clients coast to coast. The author of "Women, Money and Prosperity: A Sister's Perspective on How to Retire Well," (www.donnamphelan.com), she has lectured at conferences nationwide on a broad range of financial topics and has published numerous articles on investments, retirement and financial planning. Phelan was formerly president of the American Association of Individual Investors (AAII) Connecticut state chapter and was active in the Financial Women's Association (FWA) in New York.