The

Franklin Prosperity Report ®

‘a penny saved is a penny earned’ August 2018 / Vol. 10, No. 8

11 Ways to Cut the Cost of

Attending a Wedding
By Kathryn Anne Stewart

Receiving a wedding invitation can spur a mix of emotions. You’re excited

for the couple and honored to be included in their special day. But the
high cost of attending a wedding isn’t cheap.

Statistics from a 2018 Bankrate survey, indicate that Americans now spend
an average of $628 to attend the wedding of a friend or family member. Of
course, that’s an average, so if travel is involved, you will likely spend
a good deal more.

If these amounts are beyond your budget, you can save money by declining.
(It’s an invitation to a party, not a court summons, after all.) Wedding
planning website The Knot estimates that 25 percent of invited guests RSVP
with regrets. It’s even higher (35 percent) for destination weddings. Make
it clear you are delighted for the couple, and participate with enthusiasm
in every other aspect of the festivities.

If you decide to join the celebration, you can still attend and keep costs
reasonable at the same time. Here’s how.

Travel
1. Make it an adults-only trip
INSIDE . . . (even if kids are allowed)
Your Most Pressing Social Security Yes, your munchkins would look ador-
Questions Answered. . . . . . . . . . . . . . . . . . 3 able in the photos. But when travel
is involved, transporting a whole
When It Makes Sense to brood can be prohibitively expen-
Ditch a Big National Bank . . . . . . . . . . . . . 7 sive, not to mention stressful.
Can You Really Save Money by Consider leaving the kids with rela-
Buying Jewelry Online?. . . . . . . . . . . . . . . . 9 tives, or bringing just your young-
est or oldest, as appropriate.
Investment Update: Can Tariffs
Be Good News? . . . . . . . . . . . . . . . . . . . . . 11 2. Skip the rental car
Before you book a pricey vehicle by
August Portfolios . . . . . . . . . . . . . . . . . . . .14
the day, study the wedding itinerary.
Money Briefs. . . . . . . . . . . . . . . . . . . . . . . .15 Oftentimes, ceremonies and recep-
tions are held close together, or if

www.franklinprosperityreport.com
 not, transportation for guests is provided between the two. It’s possible
that hailing a ride as needed (taxi, Uber, or a friend or relative) would
meet your needs for less than the cost of renting a car. Plus, you’ll be
able to fully enjoy the open bar.

3. Get a group airfare quote

If you have at least 10 people traveling to the same destination, this
could be an option. Check individual airline programs. Some, like Alaska
Airlines, may not require your group to be on the same flight or even leave
from the same city.

4. Monitor airfare changes

Weddings usually provide a lot of notice, sometimes a year or more. Set up
an alert with Kayak, SkyScanner, or AirfareWatchdog to receive an email
when airfare prices drop.

Lodgings
5. Rent a house instead of booking a hotel
It’s common for a block of discounted hotel rooms to be set aside for
wedding guests. But finding a house to rent with other attendees may be an
even better deal.

Houses are often cheaper on a per-room basis, and with a kitchen at your
disposal, you can eliminate a few expensive meals out. Check out Airbnb,
VRBO, and HomeAway for options.

Presents
6. Gift the couple your services
You don’t have to be a professional artisan to do this (though, if you are,
obviously offer that service). A few examples of potential cash-free gifts
you might offer include:

• Pet-sitting for the couple during their honeymoon. (For a weeklong trip,
that makes a very generous wedding present. In my area, dog-sitting
costs between $50 and $75 a night.)

• Baking sweets for a dessert table, or, if you’re ambitious, the

wedding cake.

• Building the couple an arbor to marry under or place behind their sweet-
heart table.

• Offering your home as a venue.

• Officiating the ceremony, if it’s non-religious.

• Serving as a wedding planner or day-of coordinator.

• Picking up and transporting items to the wedding and taking gifts back
to the couple’s home.

2 FranklinProsperityReport.com August 2018

 7. Buy gifts off-registry
Check Amazon or other retailers to see if they sell identical products.
Most registries allow you to mark that you purchased the gift elsewhere.
Be sure to do that so the couple doesn’t get duplicates.

8. Gift within your budget

A more modest gift is perfectly fine, especially if you’ve incurred high
expenses to get there.

Attire
9. Shop your closet
Unless you’re in the wedding party, there are no rules for what to wear, so
there’s no reason to buy a new outfit if money is tight.

For women, find a dress you’ve only worn once or twice, and give it new life
by having a seamstress change the length or add lace embellishments. For
men, pull out your staple suit, and buy just a new tie or pocket square to
freshen your look.

10. Shop someone else’s closet

At online marketplaces Tradesy and Poshmark, you can buy gently-used
apparel for significantly less than retail. Or go old-school and ask a
friend or family member if they want to swap.

11. Rent and return

Men often rent tuxes for special occasions; why shouldn’t women do the
same with formalwear? In fact, they do. Subscription services like Rent
the Runway let you borrow a designer ensemble at a huge discount, and they
take care of dry cleaning, too.

Social Security
Your Most Pressing Social Security
Questions Answered
By Greg Brown

Taking your Social Security benefits is a once-in-a-lifetime decision. It’s

very hard to get a “do over” if you mess up, so it’s important to think
through all of the factors that affect your total financial picture before
claiming your benefits.

Here are answers to some of the most common and important questions about
collecting Social Security.

August 2018 NewsmaxFinance.com 3

 How are my Social Security benefits calculated?
Your basic Social Security benefit is a calculation of your top 35 years
of earnings, year by year, multiplied for each year by an inflation index,
says Drew Parker, creator of The Complete Retirement Planner.

It’s a complex calculation, but you can find out your exact benefit amount
by going to the Social Security website (ssa.gov) and setting up an account
online. Then you will be able to find out your projected benefit payment
if you retire at full retirement age, early, or later.

If I retire early (at 40, 50, or 60),

will that affect my benefit amount?
Yes. You need at least 10 years of earnings to qualify for Social Security.
“If you retire early, before 62, with less than 35 years of earnings, it
will have a significant impact on your benefit,” Parker says.

Even if you have 35 years of earn-

ings, if you retire early, it will
Full Retirement Age for likely affect your benefit amount
because most people earn their high-
Social Security Benefits est incomes in their 50s, so your
(Called “full retirement age” overall earnings would be lower
or “normal retirement age”) for having quit before your maximum
income-earning years.
Year of Birth* Full Retirement Age
1937 or earlier 65 What’s more, although you can begin
collecting benefits as early as age
1938 65 and 2 months
62, there is a penalty for collecting
1939 65 and 4 months benefits before what Social Security
1940 65 and 6 months deems “full retirement age.”
1941 65 and 8 months
1942 65 and 10 months Full retirement age is based on
when you were born. Social Security
1943 - 1954 66
considers age 66 to be full retire-
1955 66 and 2 months ment age for people born between 1943
1956 66 and 4 months and 1954. For people born after 1955,
1957 66 and 6 months Social Security’s full retirement age
1958 66 and 8 months goes up by two months for each year
1959 66 and 10 months (see the chart below), making the
full retirement age 67 for everyone
1960 and later 67
born after 1960.
*If you were born on January 1st of any
year you should refer to the previous year. Misunderstanding full retirement
(If you were born on the 1st of the month, age can have serious consequences.
Social Security figures your benefit and That’s because if you start taking
your full retirement age as if your birthday your Social Security benefits before
was in the previous month.) your full retirement age, you will
SOURCE: Social Security Administration get less money each month for the
rest of your life.

4 FranklinProsperityReport.com August 2018

 What factors do I need to consider before deciding
when to start taking my Social Security benefits?
The big thing to consider is whether you really need the income now.

Claiming at 62 means your benefit amount will be reduced by about 30

percent. Waiting to collect until age 70 will increase your benefit amount
by 24 percent more each month (but you’ll be collecting for presumably
fewer years).

“For example, if your full benefit is $2,000 a month at age 67, it would be
$1,400 a month at age 62 — 30 percent less,” Parker says. But if you wait
until age 70 to start collecting, your benefit amount will be $2,480.

The important thing to know is that your base benefit amount will stay the
same for the rest of your life. So even though Social Security does offer
cost of living increases, if you start collecting benefits early, you’ll get
about 30 percent less for the rest of your life, and if you wait to collect
until age 70, you’ll get about 24 percent more for the rest of your life.

“There can be many reasons to claim early, but it will be financially benefi-
cial if you can wait until at least your full retirement age,” Parker says.

Can I collect spousal or widow(er) benefits,

then switch to my own benefit?
The rules differ for each situation. If you are married and your spouse is
alive, you will generally receive the greater of your own benefit, which is
based on your individual earnings, or your spousal benefit, which is up to
50 percent of your spouse’s full retirement age benefit. You cannot claim
spousal benefits first, then switch over to your own benefit.

It’s important to note that you can’t start collecting spousal benefits until
your spouse begins collecting his or her own benefits. Also, if your spouse
waits past his or her full retirement age to start taking benefits, like
say 68 or 70, you will not receive an increased amount of spousal benefits.

The situation for widows and widowers is different. If you’re a widow or

widower, you can collect the full benefits of your deceased spouse at your
own full retirement age, or you can collect reduced benefits as early as
when you turn 60.

Also, if you begin taking widow or widower Subscriber Exclusive

benefits at, say, age 60, then want to
switch to your own benefits later, you
may do so. And you can make that switch as
early as when you turn 62.
Finally, if you already receive a benefit,
you can only apply for survivor benefits
if they are higher than your own.
For access to past editions, visit
FranklinProsperityReport.com
Check your e-mail inbox for this
month’s password.
(Remember to use lowercase letters.)

August 2018 NewsmaxFinance.com 5

 What if I start earning income from
a job after taking Social Security?
You can, but it’s better to do this after hitting your full retirement age.

If you are working and taking Social Security income prior to your full
retirement age, you can earn up to $17,042 without affecting your benefits.
But after this point, your Social Security income will be cut by $1 for
every $2 you earn over the limit.

However, if you are working after you reach full retirement age, there is
no income limit and no reduction in benefits.

There is also a special rule that applies for the year you reach full
retirement age if you are already receiving Social Security payments.

In that year, you can earn up to $3,780 per month without penalty.
But for every $3 you earn over that amount, you’ll lose $1 in Social
Security benefits.

You do get those benefits back — in time. The Social Security Administration
says that if some of your retirement benefits are withheld because of your
earnings, your monthly benefit will increase starting at your full retire-
ment age to take into account those months in which benefits were withheld.

The calculations get complicated, but experts suggest that it will take 15
years to realize all the money “lost” due to reductions in benefits because
you worked before your retirement age.

It is true I must pay taxes

on my Social Security income?
Social Security income is subject to federal taxes just like any other form
of income. But the percentage of your Social Security income that is taxed
is different.

The amount of Social Security income subject to federal taxes is based

on your gross wage income plus retirement distributions plus half of your
Social Security benefits, minus certain deductions.

Count on 85 percent of your benefits being be taxed if you are married with
a combined income over $44,000 or if you are single with an income over
$34,000, Parker says.

“Taxable amounts of Social Security are taxed at 16.5 percent for total
adjusted incomes between $44,000 and $100,000 and taxed at 22 percent for
total adjusted incomes above $100,000,” he says.

Thirteen states also tax Social Security income: Colorado, Connecticut,

Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota,
Rhode Island, Utah, Vermont, and West Virginia.

6 FranklinProsperityReport.com August 2018

 Your Business
When It Makes Sense to Ditch a Big National Bank
By Jack Kahn

In the downtown areas of almost any city or town, you’ll see old buildings
with towering Grecian columns and huge metal doors. They were once banks.
And their architecture was designed to send a clear message: Within these
imposing fortresses, your money is safe.

Perhaps that’s how Americans came to believe that the bigger the bank, the
better. And many of us still think of big national banks as the best places
to put our money. At last count, just four banks — JPMorgan Chase, Bank of
America, Wells Fargo, and Citibank — held $8.7 trillion in assets, almost
as much as the other 5,000 banks combined!

Even after the 2014 fake accounts scandal at Wells Fargo, Wells and its
fellow giants continue to dominate retail banking. People still like the big
banks’ full range of services, extensive branch networks, and state-of-the-
art mobile apps and cyber-security features.

But like large retail chains, national banks are facing increasing
competition from credit unions, internet banks, and regional banks.
Consequently, national banks are falling behind in many categories.
These include:

Personal Service
To cut costs, national banks have been closing thousands of branches and
slashing their staff. (Bank of America and Chase each plan to add 400 to 500
branches over the next five years, but only in new markets they are entering.)

At many remaining branches, tellers are being replaced with ATMs, and
bank officers only appear on video screens. It’s no wonder that national
banks ranked last in personal service in the latest survey of the American
Consumer Satisfaction Index.

Better alternative: If you prefer to deal with people you know at your
local branch, you may be better off choosing a credit union or a regional
or community bank. In the ACSI survey, these smaller institutions received
higher scores for personal service.

Fees
National banks generally charge higher fees than other banks. That’s
especially true for checking accounts. A WalletHub survey found that the
average monthly fee at a national bank is $14.96, compared to $6.43 at
community banks and $1.65 at credit unions. And to get those fees waived by

August 2018 NewsmaxFinance.com 7

 Is an Online Bank Right for You?
Many online banks offer excellent interest
rates on savings accounts and CDs, while some
offer additional services, like low-cost checking.
Major online banks like Ally and Synchrony
each have billions of dollars in assets. And Ken
Tumin of DepositAccounts.com says that if an
online bank is insured by the FDIC, it’s just as
safe as any national bank.
How can you get money into or out of a
bank that has no storefront? Here are some
easy ways:
• Use an ATM (many online banks participate
in networks that offer no-fee ATM access,
and many will also refund ATM fees).
• Keep another account at a bank near you, then
move funds to and from your online bank by
linking the two accounts and transferring the
money between them electronically.
• Use the bank’s app to make deposits from
your smartphone. Just take a photo of a
check with your phone and use the bank’s
app to make a deposit.

keeping a minimum balance in your account, you’ll probably need to deposit

more cash at a national bank: an average of $6,754, versus just $2,650 at
community banks.

Better alternative: You can find no-fee checking accounts with no minimum
balance requirements at three-quarters of credit unions and about a third
of community banks. However, you may have to pay a small membership charge
to do business at a credit union.

Interest on Savings
To get the maximum interest on your parked cash, a national bank is
seldom the best choice. For example, at the time of this writing,
my local Chase branch is offering 0.1 percent on savings. At nearby
PurePoint Financial (an online bank with a few physical branches), I’m
getting 1.9 percent.

One exception: when a national bank is trying to attract new customers,

it may offer a bonus payment of $100 to $600 and a high rate of interest.
However, this promotional rate is usually in effect for only a few months.
And to collect the bonus, you usually must keep a large amount in the
account for a longer period.

Better alternative: You can generally get better interest rates with
fewer restrictions at online banks (or locally at a credit union).
To find out where to get the highest rates, go to BankRate.com or
DepositAccounts.com.

The bottom line: If one-stop banking is your priority, a national bank may
still be your best bet. But that convenience will cost you either in higher
fees, lost interest, or poor service. You can often make your money work
better by splitting your dollars between two or more institutions. And
thanks to cellphones and digital technology, moving money between accounts
has never been easier.

8 FranklinProsperityReport.com August 2018

 Your Spending
Can You Really Save Money by
Buying Jewelry Online?
By Gina Roberts-Grey

Recently, I popped into a mall jewelry store to have my wedding ring

cleaned. The conversation with the clerk led to discussing the growing
popularity of buying jewelry online.

There are now dozens of websites like I Do Now I Don’t, Rare Carat,
Brilliant Earth, and FourMine.com that retail both loose and set diamonds
and gemstones. They promise as much as 50 percent off retail prices, thanks
to low overhead. But can you truly point and click your way to better pric-
ing than what’s found at brick and mortar locations?

To understand the benefits and risks of shopping online for sparkling

baubles, I asked Erica Hirsch, a GIA-certified gemologist at RareCarat.com,
for some insight. I found that price tags are definitely lower online. But
there’s more to web jewelry shopping than evaluating cost. Here are some
things to consider.

Go for the Certification

The non-profit Gemological Institute of America (GIA) has a mission to
“ensure the public trust in gems and jewelry by upholding the highest
standards of integrity, academics, science, and professionalism through
education, research, laboratory services, and instrument development.” To
support that, the GIA produces reports that assess the color, clarity, cut,
and carat of diamonds and colored gemstones.

Each loose stone assessed by the GIA is assigned a report number, which is
typically laser inscribed on the edge of the stone and can be researched
using the GIA’s website (gia.edu).

Anyone can physically bring — or send — a stone to be certified by the GIA.

But typically, retailers or wholesalers do this for consumers. Many stores
have a sticker in their window or advertise on their website that they work
with GIA stones.

No matter where you’re shopping, Hirsch recommends always looking for a

GIA-certified stone. However, that will cost you. GIA diamonds and gemstones
can cost 15 to 25 percent more than their non-GIA counterparts.

On the flip side, you’ll have the assurance of gem quality. And if you
resell, the GIA certification makes it easier because you can demonstrate
the quality and value to a potential buyer. The GIA laser inscription also

August 2018 NewsmaxFinance.com 9

 protects you in the event your stone is lost or stolen, as it acts as a
serial number, uniquely identifying your stone.

Look for the Refund Policy

Choose a site that offers a full refund return policy in case you want to
send the item back for any reason including fit, change of mind, etc.

Size Up Shipping
To protect against theft or shipment swapping, shop on sites that ship
jewelry to you through insured carriers. This reduces the chances you’ll
pay for something you never receive.

Research the Retailer

Brush up on the online retailer’s ratings and reviews. These comments
can provide an in-depth and behind-the-scenes look at other custom-
ers’ experiences — both positive and negative — and clue you in to any
problems with quality, authenticity, etc., that others have encountered
along the way.

Know Your Metals

Along with the size, color, clarity, etc., of the stone, the metal in which
those shining stars are set affects the price and value of an item.

Ask About Origin of the Stone

Diamonds and gemstones can be either earth-grown (or mined) or lab-created.
Both are “real” and display the same chemical and optical properties.
However, lab-created stones cost about 30 percent less than mined stones
of the same quality and durability.

While lab-created stones are a great alternative for environmentally

conscious individuals who still want quality stones, some shoppers may
prefer mined gemstones and diamonds. And it’s important to inquire
about the origin of all stones in a setting before committing to a
purchase to know exactly what you’re buying and if it’s the deal you’re
looking for.

The Bottom Line

I’ve dropped a few hints to my husband that I’d love a birthstone ring “one
of these days.” When it comes time to shop, I’ll probably first head to a
brick and mortar store to explore shapes, cuts, sizes, possible settings,
etc. Then I’ll peruse the web to see how online offerings stack up. If
possible, I’ll purchase online to save money, but only after making sure
I’ve done everything I can to ensure that I am enjoying significantly lower
prices on exactly what I want — and have paid for.

10 FranklinProsperityReport.com August 2018

 Investment Update
Can Tariffs Be Good News?
By David N. Frazier

Investors are worried that a trade war with China will hurt stock perfor-
mance. That’s because in the short term, it has. Yes, President Donald
Trump imposed tariffs on Chinese imports, and China retaliated by imposing
tariffs on U.S. imports, but I don’t think this is all bad news for stocks.

It’s important to note that China is heavily dependent on the U.S. for its
economic growth. The country generates a substantial portion of its gross
domestic product (GDP) from exports to the United States. In contrast, less
than 8 percent of total U.S. exports are to China. That means China needs
Americans to buy its goods more than the U.S. needs China to buy American
goods. Because of this, I expect China to soon withdraw its tariffs and
implement measures to create fairer trade between the two countries.

More importantly, I view the recent stock market pullback as an opportunity

to buy several of my recommendations at good prices.

I especially like what I see in Nuveen S&P 500 Buy-Write Income Fund (BXMX),
Gabelli Equity Trust Inc. 5.45% Cumulative Preferred Series J (GAB.PJ), and
our real estate investment trust (REIT) recommendations Whitestone REIT
(WSR) and Ashford Hospitality Trust (AHT).

As you know, the Nuveen S&P 500 Buy-Write Income Fund (BXMX) enables inves-
tors to generate a high level of dependable income without taking undue
risks, because the fund buys large-cap S&P 500 stocks and simultaneously
writes call options on those holdings.

This gives the fund characteristics of both growth stocks and dividend
stocks. But it isn’t nearly as volatile as growth stocks, and it pays much
higher dividends than most large-company dividend stocks as a result of the
premiums it collects every month from writing call options.

Although the fund tends to underperform the S&P 500 index when the index
rises sharply, it also tends to outperform the index when the overall stock
market moves sideways or trends lower.

With BXMX paying an annualized dividend yield in excess of 7 percent, and

my research indicating that the S&P 500 will trend higher over the coming
months, now is an ideal time to invest in this fund.

Buy This Gabelli Equity Trust Preferred Now

Now is also a good time to invest in the Gabelli Equity Trust Inc. 5.45%
Cumulative Preferred Series J (GAB-PJ).

August 2018 NewsmaxFinance.com 11

 Although I first discussed GAB-PJ last October, we weren’t able to get in
below my recommended buy price of $23.50. This is a bit surprising, because
interest rates have moved up over the past several months, and preferred
stocks tend to go down when interest rates rise. So I would have thought
this preferred would’ve moved into our buy range. The fact that it didn’t
suggests that it will be able to maintain its current price support level.

As you know, GAB-PJ is a diversified closed-end fund that invests in

preferred stocks. It is managed by legendary investor Mario Gabelli.

I like preferred stocks because companies must pay fixed dividends to their
preferred stockholders before they pay any dividends to their common stock-
holders. Preferred stockholders are also first in line to collect proceeds
from the sale of a company or its assets should the company be forced to
go bankrupt.

In addition, preferred stocks issued by closed-end investment companies,

like Gabelli, provide a special level of protection to investors, as the
total value of their assets, must be equal to at least two times the value
of any preferred stock the company issues. Right now, the net asset value
of the Gabelli Trust’s investments is five times more than the value of
all of its preferred stock liabilities. Hence, there’s very little like-
lihood that as investors in GAB-PJ, we would not get our scheduled divi-
dend payments.

Although preferred stocks tend to decline when interest rates rise substan-
tially, they tend to fluctuate much less than common stocks. And they
usually trade within a few dollars of their issuance price.

Moreover, there’s a strong floor of support for GAB-PJ, with the Gabelli
Equity Trust stating in its prospectus that it may purchase shares of its
preferred stock on the open market when those shares trade at a discount to
their liquidation value — that is, when GAB-PJ falls below $25.

And since Gabelli relies on issuing preferred stock to increase its holdings
in publicly traded stocks, the Trust has an interest in assuring that inves-
tors in its preferred stocks do not incur any substantial losses. In fact,
I would expect the Trust to buy back shares of GAB-PJ if the stock were to
decline substantially. And that would lead to a quick rebound in GAB-PJ.

Therefore, I am raising my recommended buy price for GAB-PJ to $25. With

GAB-PJ having an A1 credit rating, almost no chance of default, and a yield
of more than 5 percent, I encourage you to buy it up to $25.

Our REIT Recommendations

I also expect our real estate investment trust picks, Whitestone REIT (WSR)
and Ashford Hospitality Trust (AHT), to do well in the months ahead. That’s
because the economy is strong, and I expect interest rates to stay rela-
tively unchanged through the end of the year, and REITs tend to perform
well in this type of economic environment.

12 FranklinProsperityReport.com August 2018

 Both Whitestone and Ashford focus on properties in areas that are projected
to grow at a rapid rate over the next five to 10 years and that are inhab-
ited by people with average household incomes of at least $75,000.

Ashford owns approximately 120 luxury hotels located in highly populated

areas on the East and West coasts, as well as in Texas. Those hotels include
the Hilton, Hyatt, Intercontinental, Marriott, and Starwood chains.

Whitestone owns, leases, and operates approximately 70 retail, office,

and warehouse properties in major metropolitan areas in Texas, Illinois,
and Arizona, with a focus on community-centered and high-visibility prop-
erties in affluent and culturally diverse neighborhoods. The company’s
larger tenants include Safeway Stores, Kroger, Dollar Tree, Wells Fargo,
Walgreens, Ruth’s Chris Steak House, Petco, and University of Phoenix.
Those tenants are likely to meet their rent obligations to Whitestone in
almost any type of economic environment.

Ashford and Whitestone are currently yielding in excess of 6 percent and

9 percent, respectively. And both are currently under my recommended
buy prices.

Sears Holdings, General Electric, and Floor and Décor

In addition to the securities discussed above, I continue to like what I see
in General Electric (GE), Sears Holdings (SHLD), and Floor and Décor (FND).

GE recently announced that it signed an agreement to sell its Distributed

Power business to Advent International for $3.25 billion. Investors reacted
favorably to that news, bidding up the company’s stock by 7.8 percent on
the following day.

In addition, the company said it plans to spin off its healthcare business
and sell its 62.5 percent ownership interest in Baker Hughes. This not
only trims GE’s debt, it also enables the company to focus on its aviation,
power, and renewable energy divisions.

As for Sears, recent trading action suggests the stock has finally bottomed
and that it will move higher over the coming months.

And Floor and Décor is trading at a bargain price in relation to value of

its projected earnings over the next 3-5 years.

GE is a buy up to $21, Sears is a buy up to $4.20, and Floor and Décor is

a buy up to $56.

David Frazier is the president and chief market strategist of Frazier & Mayer Research,
LLC, an independent investment research firm that offers customized research and
analytical services to registered investment advisors, hedge funds, and serious individual
investors. You can check out his latest insights at: www.investorsmonitor.com.

August 2018 NewsmaxFinance.com 13

 August Franklin Portfolios
GROWTH AND INCOME PORTFOLIO
Entry Entry Recent Buy At Sell Cumulative Current Total
Recommendation Symbol Date Price Price or Under Stop† Dividends Yield Return
Abrdn Asia-Pac Inc Fund FAX 01/21/14 $5.87 $4.34 $6.00 $1.89 9.68% 6.1%
ALPS Alerian MLP ETF AMLP 02/21/14 $17.47 $10.21 $17.75 $3.73 8.09% -20.2%
Prospect Capital PSEC 03/26/14 $10.96 $6.72 $11.40 $4.34 10.71% 0.9%
Transocean RIG 08/20/14 $39.00 $13.18 $46.00 $2.55 0.00% -59.7%
Apollo Investment Corp AINV 11/26/14 $8.21 $5.64 $9.00 $2.60 10.64% 0.4%
Chevron CVX 02/25/15 $108.08 $124.14 $120.00 $14.06 3.61% 27.9%
Whitestone REIT WSR 06/25/15 $13.59 $12.80 $15.25 $3.52 8.91% 20.1%
Adv/Claymore Enh G&I Fund LCM 08/26/15 $8.13 $7.75 $9.25 $2.31 10.84% 23.7%
AB Income Fund AKGAX 08/26/15 $7.90 $7.68 $8.19 $0.89 4.75% 8.4%
Ashford Hospitality Trust AHT 11/25/15 $6.81 $8.54 $8.50 $1.32 5.62% 44.8%
KKR & Co. L.P. KKR 03/23/16 $14.80 $27.04 — $16.50 $1.49 2.51% 92.8%
Apollo Sr Floating Rate Fd AFT 08/29/16 $16.43 $16.16 $17.00 $2.07 7.13% 11.0%
Blkstone/GSO Strat Cr Fd BGB 08/29/16 $14.87 $15.90 $15.50 $2.39 7.92% 23.0%
Colony Capital, Inc.* CLNY 03/29/17 $12.80 $6.50 $16.00 $1.27 6.77% -39.3%
General Electric Company GE 12/04/17 $18.00 $13.85 $21.00 $0.36 3.47% -21.1%
Nuveen S&P 500 Buy-Write BXMX 06/01/18 $14.20 $14.17 $14.20 $0.25 6.92% 1.5%
The Gabelli Equity Trust Inc.# GAB-PJ — — $25.47 $25.00 — — 5.35% —
* On June 25, 2018, Colony Northstar, Inc. changed its name to Colony Capital, Inc. and its stock trading ticker symbol to CLNY

CATCH-UP PORTFOLIO
Entry Entry Recent Buy At Sell Cumulative Current Total
Recommendation Symbol Date Price Price or Under Stop† Dividends Yield Return
ConocoPhillips COP 02/21/14 $64.70 $69.65 $70.00 $7.72 1.64% 19.6%
ProShs S&P 500 Aristocrats NOBL 03/26/14 $44.15 $62.97 — $55.50 $4.73 2.71% 53.3%
Unisys UIS 12/18/15 $10.99 $14.40 $14.00 $0.00 n/a 31.0%
Volt Inf Sciences Inc. VISI 01/27/16 $7.54 $3.75 $9.50 $0.00 n/a -50.3%
Apollo Sr Floating Rate Fd AFT 08/29/16 $16.43 $16.16 $17.00 $2.07 7.13% 11.0%
Blkstone/GSO Strat Cr Fd BGB 08/29/16 $14.87 $15.90 $15.50 $2.39 7.92% 23.0%
Brookfield Proprty Ptns L.P. BPY 02/24/17 $23.32 $19.56 $25.00 $1.81 6.44% -8.4%
General Electric Company GE 12/04/17 $18.00 $13.85 $21.00 $0.36 3.47% -21.1%
Sears Holdings Corporation SHLD 01/29/18 $2.57 $2.27 $4.20 $0.00 0.00% -11.7%
SPDR S&P Bank ETF KBE 03/26/18 $48.31 $47.82 $51.50 $0.17 1.42% -0.7%
Floor and Décor Holdings FND 04/26/18 $54.71 $51.04 $56.00 $0.00 n/a -6.7%
Nuveen S&P 500 Buy-Write BXMX 06/01/18 $14.20 $14.17 $14.20 $0.25 6.92% 1.5%

SET-AND-FORGET PORTFOLIO
Entry Entry Recent Buy At Cumulative Current Total
Recommendation Symbol Weight Date Price Price or Under Dividends Yield Return
Boulder Growth & Inc Fund BIF 12.5% 04/27/16 $8.12 $10.31 $8.40 $0.88 3.96% 37.8%
Emerald Bank&Fin Fund HSSAX 12.5% 05/25/16 $31.68 $49.13 $33.00 $1.29 2.62% 59.1%
Adams Nat Res Fund PEO 5% 05/25/16 $19.95 $19.99 $20.50 $2.32 2.00% 11.8%

As of close July 6, 2018. #Recommendation not bought yet.​“Total Return” assumes dividends are received in cash, not reinvested. The “Effective Yield” is the yield investors would get assuming they
bought at the entry price and followed all subsequent recommendations. Note: O
​ ur initial allocations for each investment in the Growth & Income and Catch-Up portfolios is 2.5%, except for SPDR
S&P Bank ETF and Nuveen S&P 500 Buy-Write Income Fund, which have 5% and 10% initial allocations, respectively.

14 FranklinProsperityReport.com August 2018

 Money Briefs
By Greg Brown

Before You Tap Your 401(k) . . .

Taking money from a retirement plan is almost certainly the most expensive way
to raise cash, yet according to a new survey from GoBankingRates 44 percent
of people withdraw money from their 401(k)s early to pay down debt. Financial
emergencies and medical payments tied for second at 22 percent each.

But there are cheaper ways to pay down debt, including taking a personal
loan or home equity loan. If you withdraw money from your 401(k) early, you
will owe taxes and a penalty (unless you’re using the money for certain
hardship expenses, like medical costs that exceed 7.5 percent of adjusted
gross income). Even if you take loan from your plan instead, money taken
from the plan is now failing to compound on your behalf, lowering your
account balance dramatically down the road.

Money Markets and CDs Looking More Attractive . . .

Money market funds have been in the doghouse for years, paying tiny returns,
as low as 0.06 percent. Now, thanks to steadily rising interest rates, the
biggest money market funds are paying closer to 1.84 percent, and 1-year
certificates of deposit (CD) pay around 2.3 percent.

The Federal Reserve has said it expects to raise rates at least two more
times this year, which should push income-paying vehicles even higher. If
you hold cash in a savings account or other low-rate account, it might be
time to consider moving some of it into a higher-rate product. Given that
inflation is now running at 2.8 percent, you will need to secure a better
return to avoid losing purchasing power over time.

Surprise! You May Not Need to File a Tax Return . . .

Here’s a twist on the recent tax cut: Some retirees might not have to
file taxes at all. Broadly speaking, if your only income is from Social
Security, it’s likely that you will owe no taxes and not have to file a
return. The IRS calculates your taxable income as half of your benefits
plus your adjusted gross income from other sources. If that falls below
$32,000, no taxes are due.

Your other income could go untaxed thanks to the new, higher standard
deduction of $12,000 or $24,000 for couples, plus an additional $1,300 for
each spouse over age 65 ($1,600 for single filers). If, on top of that, you
have Roth IRA withdrawals, that’s tax-free income as well.

Don’t assume you will or won’t have to file taxes, however. Use good tax
software or hire a tax preparer to make sure you file if necessary.

August 2018 NewsmaxFinance.com 15

 California to Offer Cheap College Education . . .
California is leading the way in higher education once again with a
plan to put a new community college entirely online for the 2.5 million
Californians in the workforce who lack a degree. Experts estimate that a
third of new jobs will require some college, but not quite a four-year
diploma, so the system will offer credentials and certificates that are in
high demand among hiring companies in manufacturing, healthcare, service
jobs, and child development.

Some programs could be completed in weeks, not years. And classes would
cost a bargain-basement $46 per credit.

Court Ruling Means You’ll Pay Sales Tax Online . . .

That super-cheap phone charger or new pair of jeans will cost you more,
thanks to a recent Supreme Court decision. The high court ruled that states
can force online retailers to collect state taxes — even if the company has
no presence in the state.

The decision overturns a 1992 ruling that had stopped states from collect-
ing those taxes. The decision should help physical retailers that find it
hard to compete with cut-rate internet sellers. But it won’t impact Amazon.
Big stores such as Amazon and Walmart already collect taxes because the
amount of their sales was already above state minimums to force tax collec-
tion regardless of location.

To renew or subscribe to The Franklin Prosperity Report go to:

www.Newsmax.com/Offers or call 1-800-485-4350

The Franklin Prosperity Report® is a

monthly publication of Newsmax Media, Inc.,
To contact
and Newsmax.com. It is published at a charge
The Franklin Prosperity Report,
of $49.95 per year through Newsmax.com and
to change email, subscription terms,
NewsmaxFinance.com.
or any other customer service related issue,
The owner, publisher, and editor are not
Founding Father email: customerservice@newsmax.com,
responsible for errors and omissions. Rights to
Benjamin Franklin or call us at (888) 766-7542.
reproduction and distribution of this newsletter
are reserved. Editor © 2018 Newsmax Media, Inc.
Any unauthorized reproduction or distribution Stephanie Gallagher All rights reserved.
of information contained herein, including Contributing Editor Newsmax and The Franklin Prosperity Report
storage in retrieval systems or posting on the David Frazier are registered trademarks of
Internet, is expressly forbidden without the
Art/Production Director Newsmax Media, Inc.
consent of Newsmax Media, Inc.
For rights and permissions, contact the Phil Aron
publisher at P.O. Box 20989, West Palm Beach,
Florida 33416.

DISCLAIMER: The Franklin Prosperity Report, a publication of Newsmax Media, Inc. is intended solely for informational purposes and as a source of data
and other information for you to evaluate in making investment decisions. The Franklin Prosperity Report does not give personalized investment, tax, legal, or
other business advice. We suggest that you consult with your financial adviser or other financial professionals before making any investment. The information
in this publication is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy, sell, or trade in
any commodities, securities, or other financial instruments discussed. Information is obtained from public sources believed to be reliable, but is in no way
guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. In no event should the content of this letter
be construed as an express or implied promise, guarantee or implication by or from Newsmax Media, Inc., or any of its officers, directors, employees, affiliates,
or other agents that you will profit or that losses can or will be limited in any manner whatsoever. Some recommended trades may (and probably will) involve
commodities, securities, or other instruments held by our officers, affiliates, editors, writers, or employees, and investment decisions by such persons may
be inconsistent with or even contradictory to the discussion or recommendation in The Franklin Prosperity Report. Past results are no indication of future
performance. All investments are subject to risk, including the possibility of the complete loss of any money invested. You should consider such risks prior to
making any investment decisions. See our Terms and Conditions of Service for full disclosure at www.newsmax.com/TermsConditions/

16 FranklinProsperityReport.com August 2018

SNAP!
Change Your
Personality
in 30 Days
Inside:
How to extend your lifespan by cultivating this
trio of traits in your “personality fingerprint”
The surprising way being neurotic can lower
your inflammation levels & boost your health
How your personality predicts your political
views
Why seniors are more susceptible to con artists
and fake news (see how to be less gullible)
What your libido says about your personality
A simple tactic to improve your immunity & fend off
disease by merely becoming more agreeable
The top 10 myths about psychotherapy
And much, much more.
“SNAP! shows that personalities can be changed
from what our genes or early childhood would have
ordained. Invest the 30 days.”
— Dr. Mehmet Oz, M.D.
Surgeon, Author & Talk Show Host
“As he so brilliantly does, Dr. Small has distilled the
remarkable science around personality into something
understandable and useful. You will start by really
understanding how others perceive you, a truly
fascinating exercise with a remarkable payoff.”
— Dr. Sanjay Gupta
Neurosurgeon & Chief Medical Correspondent, CNN
$19.99 VALUE
FREE
with Special Offer
I
n his new
book SNAP!
renowned
brain expert
and psychiatrist
Dr. Gary Small
reveals an easy,
proven road map
to becoming a
better you. You’ll understand how others see you,
and discover which aspects of yourself you’d like
to change.
Perhaps you’d like to be less moody or short-
tempered. More outgoing or creative. No matter
how old you are now, you’ll discover how to
transform your personality in just one short
month using Dr. Small’s unique C.P.A.S. method.
While very few people know this, your
personality traits influence many aspects of
health (even your life expectancy and risk of
dementia). Fortunately, groundbreaking research
shows it won’t take years of psychobabble, self-
exploration, or rehashing every single bad thing
that’s ever happened to you. In fact, with Dr.
Small’s help, you may not need therapy at all to
make significant improvements to your life.
Claim Your FREE Copy of SNAP! Today
SNAP! sells for $19.99, but today it’s your FREE
GIFT from NEWSMAX. You need only pay $4.95
shipping with this special one-time offer.
Order Today!
Online:
Newsmax.com/RoadBlocks
Phone: (800) 580-1781
See Website for terms, conditions, and eligibility for this offer.