Creedmoor Music Festival This Saturday

THURSDAY
September 19, 2013
THE BUTNER-CREEDMOOR NEWS
COMMUNITY NEWS
B SECTION
C
FINANCIAL FIRM
ADDS OFFICE IN
OXFORD
Aspect Financial,
eadquartered in
mithfield, has added a
ew office in Oxford.
Aspect Financial,
hich offers access to
nvestments and
inancial advice, was
ounded December of
010 and now has nine
ffices across central and
astern North Carolina.
he new office is in
Y OU
D ECIDE :
By Dr. Mike Walden
N ORTH C AROLINA C OOPERATIVE E XTENSION
downtown Oxford in the
Post Office Building, and
the franchise owner is Bill
Allen.
Bill has been a
financial advisor in
Oxford since 2008, and is
very excited to join Aspect
Financial.
“I feel I can better
serve my clients with the
flexibility of owning my
own firm, and I have the
support of a larger firm
with LPL Financial,” says
Allen.
HOW IS
THE JOB
MARKET
LIKE
WEIGHTLIFTING?
For over 40 years I’ve enjoyed weightlifting as a
break from economics and as a form of exercise. I’ve
even participated in some contests (however, never
winning any trophies). Age has forced me to slow down
a bit, although I can still "deadlift" -- lifting the weight
off the floor to a standing position -- close to 600
pounds.
If you hang around weight rooms like I do, you’ll
notice a common shape to much of the equipment.
Take a dumbbell, for instance. It has an equal amount
of weight on both sides, connected by a narrow handle
used for griping. Or when I do a deadlift off the gym
floor, I hold and lift a relatively light bar that has much
heavier weights (in the form of plates) on both sides.
I’m telling you this because our current job market
looks a lot like a dumbbell or the bar and plates I pull
for a deadlift. What we’re seeing in the job market is
job growth at the two ends of the market, the highpay
end and the low-pay end, with very little job
growth in the middle.
A recent study confirmed this description for the
national economy. Since early 2010, when the job
market started to improve, through 2012, the
occupations adding the most jobs were food preparers
and personal-care workers at the low end of the pay
scale and management, computer, finance and
advanced health care practitioners at the high end of
the pay scale. Traditional middle-paying jobs in
construction and teaching actually experienced losses.
I was curious to see if the same results have
occurred in North Carolina, so I checked the statistics.
The answer is yes, a similar pattern has happened,
although with some slight differences. For the two
years from 2010 to 2012, the largest job gains have
been for food prep and personal-care workers paying
relatively low wages and for finance and advanced
health care workers receiving relatively high wages.
In our state, protective service jobs, paying mid-level
wages, also was a big job gainer but high-paying
management jobs, which gained at the national level,
lost positions in North Carolina.
Why is this pattern occurring? A big part of the
answer is technology. Computers and other
information technology devices have taken the place
of people for many routine-oriented jobs; that is, jobs
that a machine can be programmed to do. Factory jobs
are a good example. Many say the factory of the future
will have robots doing all the work, with only a few
people behind the controls.
In contrast, it’s more difficult to use technology to
replace workers where direct personal contact is
needed -- as with food prep and personal care jobs --
or where decisions are very complex -- like in finance,
management and medical diagnoses.
There are other possible reasons for the pattern.
Traditionally, construction and construction-related
jobs have been mainstays of middle-paying positions.
Yet these occupations were devastated with the crash
of the residential housing market. And although the
housing market is now staging a comeback,
construction jobs have not. Indeed, in the last two
years, North Carolina has still lost jobs related to
building.
Most economists think there will eventually be a
rebound in construction jobs, and if they’re right, that
will be good news for shoring up the middle of the pay
ladder. In the late 1990s and early 2000s, losses in
manufacturing jobs were absorbed by gains in
construction jobs.
Perhaps the most interesting explanation for the
lack of growth in middle-paying jobs has to do with
supply and not demand. That is, it’s not that
companies don’t want to hire people for jobs in the
mid-range of the pay distribution. Instead, the
problem is there aren’t individuals with the needed
kind of training and skills for these jobs.
This issue was highlighted in a recent study from
a national business consulting firm. They forecasted
that by 2020, the nation could face a shortage of close
to 900,000 skilled manufacturing and technical
workers, such as machinists, welders and machinery
operators. They recommend more be done in schools -
- especially high schools – to offer training in these
fields.. The consultants also call on businesses to
become more involved in promoting -- and maybe in
help to finance -- these skills and the jobs tied to them.
The dumbbell shape of today’s job market has
impacts beyond just where people work. Our country
has long been known as a middle-class nation; indeed,
most people identify themselves as middle-class. But
the growth in jobs at both ends of the pay scale (lowpay
and high-pay) reduces the size of the middle class,
leaving profound implications for social cohesion,
income inequality and income mobility.
What, if anything, can we do about this, and who
needs to do it? You decide. Now let’s go pump some
iron!
Bill grew up in
Granville County, and is
proud to be a member of
a strong business
community.
“We are very excited
about our new location in
Oxford, and serving
families in a great
community.” said Donna
Allen, one of two
managing partners.
Chris Key, the second
managing partner of
Aspect said, “When we
work with someone who
wants to open an office in
a new community, it is
important that they are
trusted by and involved in
that community. Bill is a
well-respected leader,
with deep roots in the
area, we are very proud
to have him join us.”
Bill is an
ambassador with the
Chamber of Commerce, a
board member on the
Granville Education
Foundation and the
Downtown Oxford
Economic Development.
He and his wife
Stephanie, who works for
Novant Health, live in
the Wilton community.
Bill’s office is located
at 144 Main Street Room
112, and he can be
contacted at 919-603-
6117 or Bill.Allen
@LPL.com.
Tax & Business
INFORMATION PROVIDED BY
Cozart & Edwards, PA
Certified Public Accountants
REVIEW THE 2013 RULES ON
MEDICAL EXPENSES AND TAXES
The 2010 law on health care reform included some
changes on medical expenses and taxes that go into
effect this year.
First, the amount that you can contribute to a
health flexible spending account (FSA) is now limited
to $2,500 a year. The limit will be adjusted annually
for inflation.
Next, there’s a change in the threshold for
deducting unreimbursed medical expenses. For those
under the age of 65, the prior threshold was 7.5% of
adjusted gross income. Now only unreimbursed
medical expenses exceeding 10% of a taxpayer’s
adjusted gross income are deductible. Taxpayers who
are 65 and older may continue to take an itemized
deduction for medical expenses exceeding 7.5% of
adjusted gross income through the year 2016.
The IRS issued "Seven Important Tax Facts About
Medical and Dental Expenses" reminding taxpayers
of the rules governing deductibility of costs not
reimbursed by insurance.
Not only is the deduction for medical and dental
expenses limited by the 10% adjusted gross income
threshold, taxpayers must itemize deductions to
benefit. No expenses can be claimed where the
standard deduction is taken.
Qualifying expenses include most medical and
dental costs paid for the taxpayer and his or her
spouse and dependents. Prescription drugs and
insulin qualify, and the cost of medical, dental, and
some long-term care insurance also qualifies. The cost
of travel to obtain medical care qualifies, including
the cost of public transportation or an ambulance,
plus tolls and parking fees. If a car is used for medical
travel, a standard mileage rate of 24 cents a mile is
deductible.
Since using funds from health savings accounts
or flexible spending arrangements to pay for medical
expenses is usually tax-free, no deduction is allowed
for expenses paid with funds from these plans.
If you need details about the current rules on
deducting medical expenses, contact our office.
Senior Center
Activities Schedule
PO Box 766, Hwy 56E. & Main Street
Creedmoor, NC 27522
Week of Mon. Sept. 23, - Fri. Sept. 27, 2013
Daily: 8:30 - 11:30 a.m. Walking in the Gym
9:00 - 10:00 Coffee Hour
12:00 - Lunch
For More Information - Call 919 528-0848
www.granvillecounty.org
Click “Senior Services”
Monday, Sept. 23: 8:45 Game Time, 10:00 Acrylic
Painting Class w/Alma Burke, 10:00 Sensitivity
Training w/Kimberly Hawkins, 11:00 Devotion:
Evangelist Angela Powell, 4:00 Zumba Gold.
Lunch 12:00: Hamburger, Corn on the Cob,
Lettuce/Tomato, Hamburger Bun, Milk.
Tuesday, Sept. 24: 8:45 Game Time, 9:00 Low
Impact Aerobics, 10:05 Exercise for Arthritis, 10:30
Bible Study w/Dr. Mercedes Summers, 12:30 Water
Aerobics - YMCA, 12:30 Beginner’s Computer Class,
1:00 J.O.Y. Singers Practice.
Lunch 12:00: Fried Fish, Stewed Tomatoes,
Potato Salad, Cornbread Square, Milk.
Wednesday, Sept. 25: 8:45 Game Time, 10:15
Bingo (sponsored by Universal Health Care, Oxford),
2:30 Royal Jewels.
Lunch 12:00: Brunswick Stew, Cornbread Square,
Peaches, Milk.
Thursday, Sept. 26: 8:30 Trip: Carolina Outlet
Center - Smithfield, 8:45 Game Time, 9:00 Low Impact
Aerobics, 10:00 Crochet Club, 10:05 Exercise for
Arthritis, 12:15 Water Aerobics - YMCA, 12:30
Beginner’s Computer Class.
Lunch 12:00: Roast Beef (for sandwich) Lettuce/
Tomato, 4 Bean Salad, Wheat Bread, Fruit Cup.
Friday, Sept. 27: 8:45 Game Time, 9:00 Craft -
Ceramic Classes w/Joan Harrison & John Smith, 10:30
Speaker: Sue Bryant - SHIIP Counselor - “Medicare
Part D”
Lunch 12:00: Hot Dog, Bag Baked Chips, Hot
Dog Bun, Coleslaw, Milk.
• Milk is served with each meal - Chocolate milk
and 2% low fat milk are available.
Savvy
Senior
You ask the Senior question ~ We find the Savvy answer
How to Get Paid for Being a Family Caregiver
Dear Savvy Senior,
I have been taking care of my elderly mother for
nearly three years and it’s taking a huge toll on my
finances. Are there any resources you know about that
can help family caregivers get paid?
Financially Exhausted
Dear Exhausted,
To get paid as a family caregiver, there are various
government programs, tax breaks and family payment
options that may be able to help you, depending on
your mom’s financial situation. Here’s where to look
for help.
State Aid
If your mom is low-income and eligible for
Medicaid, you may be able to get paid a small amount
by the state. In 15 states, Medicaid offers a Cash &
Counseling program (see cashandcounseling.org) that
provides an allowance that can be used for various
services, including paying family members for care.
Many other states have similar programs for lowincome
seniors, even if the person receiving care
doesn’t quite qualify for Medicaid.. To find out about
these options contact your local Medicaid office.
Veterans Aid
In some communities across the U.S., veterans
who are at risk of nursing home placement can enroll
in the Veteran-Directed Home and Community Based
Services program, that allows veterans to manage
their own care, including hiring and paying their own
caregivers..
Also available to wartime veterans and their
spouses, is a benefit called Aid and Attendance that
helps pay for in-home care, as well as assisted living
and nursing home care. This benefit can also be used
to pay family caregivers.
To be eligible your mom must need assistance with
daily living activities like bathing, dressing or going
to the bathroom. And, her income must be under
$13,362 as a surviving spouse – minus medical and
long-term care expenses. If your mom is a single
veteran, her income must be below $20,795 to be
eligible. Her assets must also be less than $80,000
excluding her home and car.
To learn more see va.gov/geriatrics, or contact your
regional VA office, or your local veterans service
organization. For contact information, call 800-827-
1000.
Tax Breaks
Uncle Sam may also be able to help if you pay at
least half of your mom’s yearly expenses, and her
annual income was below $3,900 in 2013 (not counting
Social Security). If so, you can claim her as a
dependent on your taxes, and reduce your taxable
income by $3,900. See IRS Publication 501
(www.irs.gov/pub/irs-pdf/p501.pdf) or call the IRS
help-line at 800-829-1040 for information.
If you can’t claim your mom as a dependent, you
may still be able to get a tax break if you’re paying at
least half her living expenses including her medical
and long-term care costs, and they exceed 10 percent
(or 7.5 percent if you’re 65 or over) of your adjusted
gross income. You can include your own medical
expenses in calculating the total. See the IRS
publication 502 (www.irs.gov/pub/irs-pdf/p502.pdf) for
details..
Family Payments
If your mom doesn’t financially qualify for the
government aid or the tax breaks, can she afford to
pay you herself or do you have any siblings that would
be willing to chip in? After all, if your mom had to pay
for home care services, the costs would be anywhere
between $12 and $25 per hour.
If she agrees to pay you, it’s best that you or an
attorney draft a short written contract detailing your
work and payment arrangements so every one
involved knows what to expect. A contract will also
help avoid potential problems should your mom ever
need to apply for Medicaid for nursing home care.
Another payment option to consider is for your
mom to adjust her will, so you receive a larger portion
of her estate for providing her care. But to avoid
conflict, be sure all family members are aware and in
agreement.
Also, check to see if your mom has any long-term
care insurance that covers in-home care. If she does,
in some cases those benefits may be used to pay you.
Send your senior questions to: Savvy Senior, P.O.
Box 5443, Norman, OK 73070
FINANCIAL FOCUS
CHRIS ELLIS
EDWARD JONES INVESTMENT FIRM
CONSIDER YOUR INVESTMENT STRATEGY . . .
AT EACH “SEASON” OF YOUR LIFE
Autumn is almost here. And just as your everyday
tasks change with the seasons, so, too, will your
money management and investment activities at
different phases of your life.
When you’re first starting out, you may need to
repay student debts, but you’ll still need to think
about saving for retirement. So, try to contribute
whatever you can afford to retirement accounts, such
as an IRA and a 401(k). If you have children, you’ll
also want to consider a college savings account, such
as a 529 plan. And you’ll need enough life insurance
to protect your young family.
Later on, when you’re in the middle-to-late stages
of your career, and your income has risen, try to “max
out” your retirement accounts.
As you enter retirement, your chief financial
decision may be how to tap into your retirement
accounts at a sustainable rate that won’t cause you
to outlive your resources.
With diligence and discipline, you can find a
financial and investment strategy to carry you
through the seasons of your life.
This article was written by Edward Jones for use
by your local Edward Jones Financial Advisor.