Friday, October 11, 2019

How long to hold stocks?

How long do we have to hold stocks to win with stocks?
Wall Street media gives the impression that we should sell just before they go down when an analyst thinks they will. But analysts can’t see the future. So we follow someone’s ‘advice’ or the crowd and we lose. Guess what happens? Advisor-managed equity accounts earn 5.19-3.79% vs 9-11% for a simple market index fund of stocks that remain for long periods. What does one of the most successful investors say: he says hold them “forever.” He bet $1 million against a Wall Street guru to prove it. He has owned Coke since the 1980s; Geico since 1996; Amex since the 1960s; and many more. How has Buffett done so far? His average return is 20.5% per year since 1965. Not bad.

How do millionaires start their savings plan?
Unless you inherit your father’s $413 million you must start your $1,000,000 fund somehow. Survey says save 10% of income is how you begin. 80% of the self-made millionaires studied didn't get wealthy until after age 50 — but that almost all of them started the same way. They used ‘buckets’ to make their goals specific. Each bucket has a specific saving/investing vehicle. Short-term expenses are funded from savings and CDs while retirement expenses are funded with low-cost securities. The rich increased their savings as their income increased meaning that they learned to live within their means—80% of income for current expenses and 20% for the future. Millionaires understand the Miracle of Compounding. Stocks earn 11% a year: $1 million in 34-36 years; $2 million in 40. If Don had just used a stock index he would have $11 Billion by now, not $3 Bn.

Not all S&P 500 index funds give great returns
Unfortunately, not all S&P 500 index funds act the same. Some don’t follow the benchmark so they don’t produce 11% over time. DALBAR tracks the index and equity account returns over time. So we know some employers use an index fund in their 401k plan that actually doesn’t follow the benchmark they are supposed to track. Insurers in particular are providing expensive or poorly designed index funds to smaller employers. Employees are suing Community Health Systems since it uses Principal Large Cap S&P 500 index fund. This fund allegedly lagged its benchmark by an average 9.1 basis points between 2010 and 2018, while similar funds offered by BlackRock, Vanguard Group, State Street and Northern Trust lagged by roughly 1 to 2 basis points on average. This underperformance, plaintiffs claimed, led to poor performance that lost participants some of their retirement savings. Over long periods of poor tracking and or high fees, employers actually cut employee retirement packages by 63%. For some employees, it would be better to use a self-directed Roth IRA account instead of the company’s plan. A Roth IRA is tax-FREE after age 59.5. It can earn 11% over time.

Why do the most expensive cars have the most problems?
Land Rover, Mercedes-Benz, Volvo, Jaguar, Acura. These are some of the most expensive cars you can buy. So why did JD Power survey of owners find they have more than average problems? The annual J.D. Power study gauges dependability of 3-year-old vehicles over the last 12 months, meaning this year's survey assessed the 2016 model year. Let’s look at management/owners for the answer. Lexus and Toyota seem to be consistently near the top of the list of fewest problems. Who owns the bottom feeders? Fiat, the most problems, owns Alfa Romeo, Chrysler, Dodge, Ferrari, Jeep, Lancia, Maserati, and Ram. Tata owns Jaguar and Land Rover. Zhejiang Geely owns Volvo. Ford owns Lincoln. Honda has Acura which is usually high on the list. BMW owns Mini and Rolls Royce. Renault owns Nissan and Infiniti. VW owns Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT and Skoda. Management determines how well it’s built.

First time in US: $50K a year earners now pay higher tax rate than Billionaires
US is no longer a progressive tax country. Trump has given his class what they wanted. The TV celeb has reversed most progressive trends. As Warren Buffett illustrated, his assistants pay a higher rate than he does: they pay 32.9%; he pays 17.7% with no special tax shelter or overseas account like Apple, Google, Amazon, Boeing, GE, etc. 2/3rds of all businesses pay $0 tax. Plus we taxpayers must subsidize many profitable businesses like oil, gas, agribusiness, air carriers, etc, etc. Many aren’t even American.


This period is a test of democracy—do we really want it or not?

Can China and Scotland and Russia investigate Trump cos. too?

We pay for meds: 11 suspicious deaths at the Louis A. Johnson VA Medical Center
Will FBI investigate Don’s mob foreign activity: conspiracy, bribery, extortion?
Trump promised cheaper drugs AGAIN but cut $845 billion from Medicare budget.

Trump recalls troops despite GOP: what about 150 other countries with troops?

Bank fees rise as interest rates fall: bank management takes bigger bonus

Guns for protection! Two men opened fire at a bar in Kansas City: 4 died; 5 injured
When everyone has a gun: family is likely to become a victim
James Booth Ins Trends, defrauded 40 clients of $5 million promised “safe high returns”

School retirement plans accused of overcharging teachers for 403b options: poor service

GOP party AFTER Trump leaves: no stand—allowed Kurds to be kicked out.

MN police using uniforms to show Trump support: Citizens see bias not ‘to serve’
WV group prepares for ‘civil war’ Trump predicted “veneer of civilization is very thin”

Trump calls Congress’s bluff: ‘I won’t play’—what you gona do about it?
Official Impeachment Defense Task Force” gives Trump $ millions on Facebook

Meredith cuts 1,200 jobs at Sports Illustrated, TIME, Fortune, Money

Health care jobs are changing: ‘touch’ industry grows with aging

Who owns your account now?
Your driver's license needs a star at the top in order to fly: new to catch terrorists.
CO offers new state health insurance option to lower costs for individual cover.

Bear cubs escape locked van but caught using horn to get out
Mom gives up her terrorist son: plan to kill thwarted—saves lives but cost her a son

41 Watchung Plaza, B242
MontclairNJ   07042

Friday, October 4, 2019

Social media frauds

How we become victims of scams
The most successful types of fraud were via social media: 91% of study participants were engaged and 53% lost money. Similarly, 81% of consumers who were exposed to a fraud via a website said they engaged and 50% lost money. Phone and email scams had fewer successes. We are more likely to be victimized if we do not have anyone to discuss the offer with. Victims are more likely to be widowed or divorced. Generally, those who engaged, and those who lost money, reported significantly higher feelings of loneliness. Social isolation appears to play a significant role in fraud victimization. Those under financial strain, younger or have low levels of financial literacy are likely victims. 51% of people who reported a third-party intervention were able to avoid losing money. Cashiers, bank tellers, employees of wire transfer services and other financial services companies where consumers were about to send money to a scammer, served as an important, effective last line of defense. Nearly half of those surveyed said the news media was their primary source of information about scams. Prior knowledge of fraud helps decrease the chances of victimization, the survey found. One-third of consumers who were targeted by a scammer, but did not engage, said they already knew about the specific type of scam. In addition, consumers who understood the tactics and behaviors of scammers did not engage with the fraudsters. Approximately one in ten U.S. adults are victims of fraud each year and self-reported fraud loss complaints increased by about 34% from 2017 to 2018. In fact, the FTC received more than 372,000 fraud complaints with more than $1.5 billion in direct losses in 2018, and another 1.1 million fraud complaints with no reported losses, the agency reported earlier this year.

Best evidence you are being scammed?
A cold call, unsolicited letter or email! Think of it. You have been ‘chosen’ out of billions of people to receive an offer that sounds too good to be true. If the offer requires you to send money to get money or if it is heavily charged with emotion, you can’t possibly make a rational decision by yourself. You need help—any friend or advisor can help. The money strategy is complicated but scammer sounds like they know what they are talking about. Even Harvard endowment fund is fooled by bad direct investments. Scammer has your detailed personal info so they must be authentic agent of govt agency. You find a charge on your credit card you don’t recognize. Credit card charge is small $1 and you ignore it. Check out how much info you can find on yourself on the internet—just type your full name. You will be shocked to see a lot more than you want floating out there. Most of it can be used to rob you. You should go after every firm that offers to sell your data. It is said that scammers can buy your whole profile for less than $100.

The new rules for selling annuities
New York is in the midst of implementing a "best interest" standard for agents licensed to sell annuities and life insurance products—the first state in the country to do so. There are no federal standards for annuities and life insurance sales, raising the bar for annuities sales falls to the states. The new regulation states that “only the interests of the consumer shall be considered in making the recommendation.” Annuities and life insurance were targeted in the state because the typical customers interested in those products are often “vulnerable buyers.” Annuities offer huge commissions compared with other products. Many insurers have withdrawn from NY since Trump cancelled the more consumer-friendly standard of The Fiduciary Rule. Most states do not require the complete disclosure of conflicts of interest and compensation to customers so many older buyers may continue to be mislead. For instance, some sellers offer only complicated deferred annuities with the highest commission. They do not disclose their relationship to the insurer. Contracts are written only for lawyers so sellers explain only the positive.

This is how the wealthy avoid taxes we must pay
This advisor is explaining to rich celebs and athletes how to avoid taxes and lawsuits just like he does for wealthy families. Setting up a defined benefit plan: Entertainers with loan out corporations, for example, can put away assets while taking significant tax deductions, such as $1 million or more annually by using particular defined benefit plans. Because of the business endeavors of many successful celebrities, they can use defined benefit plans to lower their income taxes while growing money tax-free. Superior risk management plus significant tax savings: Various wealth planning structures and products with major income tax deductions and the ability to address various business risks can be used with celebrities’ business interests. Some of these wealth management solutions can also be used directly by entertainers, such as when they go on tour. Eliminating taxes on investment portfolios: For celebrities with meaningful investment portfolios, it is possible to use a structure that eliminates income and capital gains taxes. This wealth management solution can be used with traditional investments such as equities and fixed incomes or with alternative investments such as hedge funds and private equity funds. Wealth planning cross-border arbitrage strategies: With many successful celebrities generating money throughout the world, it is often possible to leverage different tax jurisdictions to minimize taxes. This is not at all about secrecy. It is simply about understanding the various tax treaties between jurisdictions and benefiting from them. Asset protection planning: Relatively few hyper-successful celebrities have structured their wealth in ways that insulate it well. Very successful athletes and entertainers can protect their wealth from unfounded or frivolous lawsuits with strategies that can address their control needs and wants.

Is a private placement right for you?
This is an investment that most of us can’t buy. There is no gov check up, due diligence by analysts, or registration with the SEC. Usually you must be an ‘accredited investor’ under Reg D. However, some advisors have been banned/fined for offering PP to clients. Recently a Boca firm was censored/fined $225,000 for offering a suspect PP to clients. The firm offering PP is raising capital without the expense and delay of an IPO or public offering on the exchanges. Usually there are few buyers. Because of the additional risk of not obtaining a credit rating, a private placement buyer may not buy a bond unless the bond is secured by specific collateral. A private placement stock investor may demand a higher percentage of ownership in the business or a fixed dividend payment per share of stock. An example is Lightspeed, a cloud-based point-of-sale software solution for independent retailers and restaurateurs. Investors become part owners. You can earn 11% over time without the risks of a PP.

How do you know how much savings to use in retirement?
Fear of the future financial needs keeps us from retirement spending. A 2009 study estimated that by the time middle-income retirees are in their 80s, they still had not touched about three-fourths of their savings, and 2016 research found that retirees with substantial assets are the most reluctant spenders. Vanguard recently reported that retirees with very modest savings turn around and reinvest a third of the money they’re required to withdraw under IRS rules after age 70½. Best we can do is make a plan to spend and save a certain percentage to keep our future income growing.

Does your advisor have a ‘conflict of interest’?
By definition, every advisor, broker, agent and seller has a conflict of interest. In financial services, every product and recommendation is dependent upon what the firm has approved for sale. The firm, not the saleperson, knows the terms of the contracts for securities, funds and annuities. For a given sale, sellers receive higher pay for some transactions. You cannot tell which seller or product has higher pay unless you ask. Some sales bring more to the firm as with kickbacks or soft money and you are not likely to get the answer from your individual advisor/broker/agent. Some sales have higher fees and commissions and/or higher ‘haircuts’ than others. Some sales have higher trailing fees (12b-1, etc) than others. Some securities sales cost you more than others: called Class A, B, C, etc. Frequently, sellers mislead us into buying the more expensive class. Many of us just don’t know about these tricks so we can’t ask sellers about them. Even if you do your research into certain products, you can be mislead by the seller who is selling a product not approved for sale. Salespeople must be authorized per product per state. The CFP credentialed seller is the most likely person to do only ‘what is best for you.’

Does $0 cost trading help you become wealthy?
Schwab led the way to ZERO cost trading for many firms: Free trades. But does FREE trading help you become wealthy? According to many studies, the answer is NO. There are Wall Street myths about traders getting rich but you would need to have insider information and be trading large dollar amounts to become rich. Day-trading schools abound but only the owners are getting rich. About 95% of the people who attempt day trading end up with a net loss. A primary reason traders lose money is the absence of a solid trading strategy. It is lack of discipline not commissions that dooms most traders. In fact most managed equity account owners are net losers over time due to buying high (stock proved winner) and selling low (sell before you lose it all). DALBAR tracks managed accounts over time: returns 3.79% but inflation 2.7%. Warren Buffett, successful investor, says: “if you invested in a very low cost index fund, you'll do better than 90% of people who start investing at the same time.”


This period is a test of democracy—do we really want it or not?

Trump mob spending $3 million a week to fight impeachment: Can dictatorship be purchased?

Trump: Dems process is “not an impeachment, it is a COUP

Fired employee Bolton says of N. Korea nuclear deal: “no basis to trust any promise
Profiteers earned $ millions from arrest/removal of immigrants: dictators do this too.

Trump upstaged by Giuliani, his enforcer: “I will be the hero!” 
Rude Giuliani, mob enforcer, cancels paid trip to Putin rally
Trump’s "Do Nothing Democrat Savages" will make the case to impeach him.

Trump now asking China to give him dirt on Biden: mob boss calling in all favors
Trump’s dirt-digging on Biden: how big a hole has he dug with enforcers?
Mr President, why would Sec State Pompeo give House Chair Schiff his jockstrap????

Trump uses fake Census to raise cash: MT state warns: “imitation Census survey.” 
TrumpCare health insurance $59/month is a con just like the owner: benefits limited

Newbridge caught selling private placements w/o due diligence; no supervision.

Chicago’s Bank Montreal caught charging higher fees for own funds; failed to tell.
79 brokerage firms caught overcharging clients; failed to tell lower cost version.
Your ETFs may spark more taxes not expected even if you didn’t sell.
Katharine Snyder, Performance Arbitrage caught deceiving disabled veterans high credit
James Booth, CT, caught running Ponzi $5 million promised safe high returns
Long-term care insurance: rising premiums It’s a bait and switch,” Bach said. “But it’s a legal one. That’s the problem.”

DEA allowed drug makers to increase production of opioids even as overdose deaths rose
More Trump tariffs: now on European goods: we pay the tariffs, not EU.

Trump planned to shoot immigrants crossing border: bullets cheaper than The Wall!
No count on ‘bump stock’ ban: few turned in or destroyed—sales soared on Trump tweet

Your job as banker to friends/family is likely to end good relations
How to get into college: you DO NOT have $100,000 to buy admission.
Seniors keep traditional jobs: leather, funerals, repairs, religion, gifts, farms,

Who owns your account now?
Yahoo account breach settlement: claim your cash
ObamaCare TN policies have refunds: TN requires premium not spent must be returned
Estate planning account: 100 questions for your advisor/planner; for whole family too.

Easier to take out 401k money but many will need the compounded earnings later!
Privilege Underwriters: Pure Group to Tokio Marine


41 Watchung Plaza, B242
MontclairNJ   07042

Friday, September 27, 2019

Are you being scammed?

Best evidence you are being scammed
A cold call, unsolicited letter or email! Think of it. You have been ‘chosen’ out of billions of people to receive an offer that sounds too good to be true. If the offer requires you to send money to get money or if it is heavily charged with emotion, you can’t possibly make a rational decision by yourself. You need help—any friend or advisor can help. The money strategy is complicated but scammer sounds like they know what they are talking about. Even Harvard endowment fund is fooled by bad direct investments. Scammer has your detailed personal info so they must be authentic agent of govt agency. You find a charge on your credit card you don’t recognize. Credit card charge is small $1 and you ignore it. Check out how much info you can find on yourself on the internet—just type your full name. You will be shocked to see a lot more than you want floating out there. Most of it can be used to rob you. You should go after every firm that offers to sell your data. It is said that scammers can buy your whole profile for less than $100.

Will you have enough?
How do you know whether your investments will provide enough money for retirement? Your advisor may not be a financial planner or have access to the calculators that can make an estimate. You should do a little homework just to make sure you know how you are doing since your advisor is unlikely to be around in 25 years. Retirement calculators like Vanguard’s Retirement Income Calculator and Vanguard’s Nest Egg Calculator can give you a feel for your accumulation progress. The value of these kinds of calculators is that they include the Time Value of Money. For instance, if you are due to have a pension of $1,000 a month when you retire in 20 years, it is sobering to know that it will be worth about HALF or $500 a month in purchasing power. Inflation of 3% is assumed in Vanguard’s projections so you understand that if you use bonds or CDs paying 3% a year as your investments, you will have NO real gains in 20 years. Only stocks with 10-12% total return can overcome inflation. Compounding is the name of ‘money earning money on itself’ when invested in companies like those in a low-cost market index fund. Compounding is how you can reach a $1,000,000 nest egg by investing $250 a month for 35 years. It is TIME, not stock-picking that wins according to Warren Buffett. When you avoid high-cost advisors, you earn 11% not 3.79% the average for ‘managed’ money.

What you own in your 401k stock fund
Many 401k participants make their contributions to low-cost stock index funds or Target-Date index funds. What do you really own? You own shares of a fund that owns stocks that make up the market. You own them through your share of parts of these firms:
1          Microsoft Corp.
2          Apple Inc.
3 Inc.
4          Alphabet Inc.
5          Facebook Inc.
6          Berkshire Hathaway Inc.
7          JPMorgan Chase & Co.
8          Johnson & Johnson
9          Exxon Mobil Corp.
10        Visa Inc.
Over time, you receive gains and dividends that provide a total return of 10-12%. In this manner, you can accumulate $1,000,000 with as little as $16,000. All it takes from you is patience. As Buffett proved in his win over 5 hedge funds, no person or computer can foretell the future. Buffett used John Bogle’s invention to win: “Don’t look for the needle in the haystack. Buy the whole haystack!” And the haystack gives you more!

Are you willing to wait for your $1 million?
You can accumulate $1,000,000 with as little as $16,000. All it takes from you is patience. But most of us have no more patience. Three quarters of those surveyed said they believe the dominance of digital technology, such as smartphones and on-demand TVs, are to blame for this ever growing lack of patience. Respondents reported becoming frustrated after just 25 seconds of waiting for a traffic light to change. Life moves at such a fast pace, we just don’t believe that it is TIME, not stock-picking that beats expensive money managers. Very few of us believe that just by avoiding high fees and trading, you can earn 11% not 3.79%. The facts and actual results don’t make an impact on most investors. We don’t learn about compounding in school so we assume saving in a high-interest bank account is the only way to become rich. Actually, the rich keep 60% of their assets in stocks compared to only 18% for US. Fidelity studied their most successful investor accounts: Best were forgotten—never traded, hedged, rotated, or churned. If you were running a business, you would NOT sell (trade) it every 6 months or year. You would keep working it to be rewarded over time. Like Buffett, just buy and buy more:

Is a Health Savings Account right for you?
First, you must buy a high-deductible health care policy from your employer: Deductible must be over $1,350 for individuals and $2,700 for families. Second, you need to have the money to establish and maintain a special savings account for your medical expenses. It is tax-advantaged so to help you, you must have sufficient income to need a tax deduction. Your employer can make the contributions for you. While your 401(k) contributions are subject to Social Security and Medicare taxes, contributions to your HSA are not. If you have HAS money left over you can let it grow year after year. After age 65 there is no penalty on non-medical withdrawals. Third, your HSA institution may charge fees. Fourth, depending on your medical expenses, you may pay more for health care coverage than using a traditional plan.

Converting IRA to tax-free Roth IRA?
You can amass a sizable tax-free income later in retirement by paying the tax due on your IRA, moving the money to a Roth IRA so that future earnings are tax FREE. There is no withdrawal penalty if you begin after age 59.5. However, after age 70.5 you must take certain annual amounts from your IRA so Uncle Sam gets the income tax you didn’t pay during all those accumulation years. It is called your RMD and it amounts to 3-4% of your overall IRA total. If you take it as monthly income, according to the IRS formula, be aware that the RMD must be recognized BEFORE the IRA conversion can take place. The RMD amount is first out in any given year. So if you take $2,000 a month as your $24,000 RMD, you can’t take $10,000 to convert to a Roth in the middle of the year.

Can you really save with ‘behavior’ car insurance?
Since everyone is different, we can’t tell without trying it. The app down-loaded to your phone records HOW you drive for 2-3 weeks. Hard turns and quick stop and go driving will dissuade from the low-cost rates. A quiz sets up the coverage you want. You get a quote: usually if you are an infrequent careful driver, you win. You must live in a state where it is available. Most large insurers offer some form of behavior-driven coverage. Savings depend on a host of other policy options.

This period is a test of democracy—do we really want it or not?
Queen and PM unlawfully shut Parliament on crucial issue: Democracy challenged in UK too.

Trump gives Saudis our forces: we already gave them planes and missiles—let them fight

American’s income is growing farther apart: Average worker’s income has not grown!
More welfare to Trump’s people: $28 Billion plus wasted in global competitive market!
Each state wastes $ millions: claims it ‘created’ jobs: NJ shows how Christie did it.

What happened to Trump’s Taliban ‘deal’: $2 TRILLION wasted so far
Trump's wall is 'totally absurd': Congressman climbs over to show how easy to scale.

We can’t avoid tax on retirement funds just by not cashing check: ‘Dog ate it’ not excuse
Moscow Mitch plays both sides: give states money to ‘fix’ election machines for USSR.
Trump rolled back legal clock to the 1860s: Destroy 13th, 14th, 15th, Roe, Voting Rights

Six annuity sellers caught replacing deferred annuity with immediate: cost $1.8 million

BEWARE: Brokers pushing ‘calendar risk reversal’ options—bet only what you can lose
Hidden costs of ETFs: these index funds are not always cheaper than the traditional.
Chris Kubiak caught stealing from elderly clients in Ponzi-type scheme: 2 yrs jail time.

Sprint caught taking subsidies for low-income Lifeline service not being used
Chrysler Fiat caught lying about emissions AFTER gov indicted VW

Boeing 737 inspectors were NOT really qualified to test pilots: led to 346 deaths

BEWARE: your ETF could disappear: 25% have folded; 7% lost big; fees hurt
Joseph Pratt caught insider trading on clinical trial info w/o notice to Wells
Trump to cancel $235,000 Duke grant: not enough emphasis on his fav religions!

Community College for the 1st year to get used to the routine of costs, class, study, work.

Who owns your account now?
ME to let customers decide which cable channels to buy: industry horrified by choice
Trump to end CA IRA: employers want to help workers save but broker fees left out.
Review: Vanguard new robo investing service is low-cost automatic investing

IRS is looking for your amended tax return: virtual currency needs new reporting.
Trump: broker/advisors beat you in any dispute: you can’t sue if you are mistreated
But Trump sues NYState—no mandatory arbitration for him! No rights for us!

Another 16 year old picks up VW for life: "I just thank God for putting me in the position and giving me the strength to do that."
Teach kindness: mindfulness and kindness actually alter the behavior of genes: mind therapy?

41 Watchung Plaza, B242
MontclairNJ   07042

Friday, September 20, 2019

Is your advisor asking the right questions?

Is your advisor asking all the right questions?
If you are near retirement, you are not going to know the answer to your retirement questions. How do you know you will have enough or if you will work in retirement or where will you live or have you moved all your old jobs’ 401ks to your money hub? Will you have paid off your credit cards, loans and mortgage or are you planning on carrying debt in retirement. Can you estimate all your income source amounts? Do you want to stay past official retirement age and can you downshift to less working hours? Do you use a balanced mutual fund or annuity to provide a fixed monthly income? How much of your nest egg will you give up for a fixed annuity for life, knowing you lose HALF your purchasing power every 20 years? You may be better off waiting until you are in retirement to pay for a real full-blown financial plan. Most advisors don’t have that experience. You are the only one who knows what you need.

Where can you find reliable ‘readable’ financial information?
The average readability score of the 60 sites of asset management firms analyzed was 37, (out of 100) which is the equivalent of requiring a college degree to easily understand communications, a new study said. The average American reads at an 8th-grade level, which is a score between 60 and 70 on a scale of 100. From this we conclude that the audience for these sites is not the average person but the high net worth folks who have money. The average American has little money to invest. Most are happy to match their contributions to a 401k or other employer plan. Further, the broker/advisor industry—the actual customer—does not want their clients to educate themselves. Vanguard had the highest readability score; Black Rock the lowest.

Have enough money to live past age100?
The number of people living past age 100 is doubling. No one knows how long they will need living expenses but you need a plan. When you reach your full retirement age, you can work and earn as much as you want and still get your full Social Security benefit payment. When you reach full retirement age, SS will recalculate your benefit to give you credit for months you didn’t get a benefit because of your earnings. In addition, as long as you continue to work and receive benefits, SSA will check your record every year to see whether the extra earnings will increase your monthly benefit. SS uses your ‘highest’ earnings for 35 years so you could increase your benefits by working at higher incomes. If your benefits began at age 70 (the highest level possible) then each year the amount increases based upon the cost of living increases. ($1 coffee in 1979 costs $3.53 now.) You can invest in higher return stocks even in your 60s and 70s since you won’t need that money until your 90s or 100s.

What happens to you when your advisor’s firm gets bought out?
You may become just a number. Despite all the assurances they provide, firms with cash are buying more firm’s clients to make even more. They are buying your quarterly fees which go up in a rising market no matter what your advisor does or doesn’t do. In fact you may have to pay higher fees and/or buy more products to stay. You may get a new person to ‘handle’ your account. It may be time to reconsider if a high-cost advisory service is really what you need. Today, you can buy money management that earns more since it costs less. You can buy a full retirement and estate plan for a set one-time fee. Both of these options are being picked by those who have tested advisor management and self-management. Some have made the change for more control and more earnings. Some advisors may think they are helping you by offering more services. But if you don’t need them, you are not going to be serviced at the same level. Like every industry, bigger and better is not always better for YOU.

Notice: new cars cost more
The average car loan for both new and used cars continues to rise, to more than $32,000 for a new car and just over $20,000 for a used car, Experian found. Since I have never bought a ‘new’ car, I had no idea that the ones in my parking lot are probably over $50K. People with average incomes are going to the used car lots more often. Today, 3 year olds are usually in better shape than in the past. Car brands that have a history of 200K mileage are made better so you can find a great bargain. Car shoppers could save more than $14,000, on average, by buying a three-year-old car instead of its new equivalent. Experian said the average monthly used-car payment was $392. If your credit is poor, try using a larger down payment so you are not paying interest till 2028. I shopped for my used Camry using 3 online sellers with specific attention to the dealer’s rating. I did not want to travel 60 miles to find that the seller didn’t actually have the one advertised. I used Guru, Edmund and Kelly. Then I checked the dealer reviews.

Vanguard to offer digital financial planner
Vanguard is offering financial planning and investment management for just a couple tenths of a percentage point of assets under management. It assesses clients’ risk characteristics; it exercises discretionary management over assets (including halting trading in cases of “an undue risk of harm”); and, perhaps most importantly, it includes goal forecasting. Digital Advisor is built on long-term, goal-based investing. Goals are currently limited to saving for retirement, but in the future will include “personalized financial goals.” It will also assess the feasibility of meeting financial goals using assets or accounts that Digital Advisor does not manage—the caveat being that since it is not managing those assets, it cannot increase the likelihood of success for those goals. Investors only need $3,000 to open an account and advisory fees are set at 0.20% of assets, charged annually and calculated quarterly, for managed retail accounts. There is also a 401(k) option for Digital Advisor, with a $5 minimum to enroll if the service is supported by the investor’s plan sponsor.

‘Professional’ money managers fall behind your index fund
New study shows that the most highly paid ‘institutional’ managers are doing worse than your simple market index fund. Fees and poor trading strategies are the reason. Institutional large-cap managers underperformed their passive benchmarks 85% of the time over the same 10-year period. Looking down the market capitalization spectrum, institutional managers fared even worse. Active mid-cap managers underperformed their passive benchmark at an 88% clip during the decade, while small-cap managers underperformed more than 85% of the time, net of fees. The results suggest that even with the purported higher overall quality and lower fees of institutional funds, active managers struggle to beat their passive indexes across most fund categories, particularly in equities. This confirms the scorecard kept by Dalbar: average ‘managed’ account return was 3.79% vs 11% for your index fund.


Tariffs cost each of us $1,000: wiped out the $600 tax cut last year.
Farmer Socialism can hurt our capitalist nation: soon everyone will want free money!

Trump wants war again: he’s “locked and loaded” but never served; now wait
2 former govt aides subpoenaed: They didn't show up. No arrest No fine No jail
Govt failed to protect 400,000 of us: opioid drug overdoses since 1999: No drug arrests.

Trump condemns CA residents to more smog: ends right to set own fumes limit.

Do any Sackler family go to jail for killing 10-50,000 a year? ‘None admit wrongdoing’!
Admission of guilt: Sacklers sent $1 BILLION to CH avoid paying for their killings
Fake Apple Support calls: scam for icloud data

Now chicken linked to cancer: air, meat, chicken, water, vegs, booze: nothing healthy?
General Nutrition Centers (GNC) caught promoting “phantom markdowns” on its site.

TV show ‘deals’ pays TV to hype stuff: ‘promotional consideration’ is kickback.

Zantac may not be healthy: FDA checking cancer links AFTER approval
Hackers stole $4.2 million from pension for retired Oklahoma Highway Patrol troopers   
Your ‘weed’ may give you extra kick: toxic pesticides

SEC finds more advisors trying to rip-of customers: high cost share class and 12b-1 fees.

Safeway AonHewitt caught charging 401k employees excessive fees: ruined retirements
Mediatrix caught stealing $35 million Ponzi: high returns no loss with algorithmic trading

Kevin Merrill, Jay Ledford, Cameron Jezierski caught Ponzi scheme 230 investors: ban
MyPayrollHR caught stealing $35 million in payroll from companies: went into clouds!

Jay Daniel Seinfeld caught stealing from terminally ill and dead with lies for signature
Check consumer complaints before you give anyone your money
Bank windfall: end of protection from another 2008 bank meltdown: $40B bonus!

Navy admits there are hundreds of UFO in the sky: so what? We’ve always seen them

$240,447 average comp for your experienced CFP advisor with commissions

Who owns your account now?
Some insurers make claim payments to VISA cards for faster service. ‘Best’ insurers rank
Where are your drugs the LEAST expensive? You can save 100-200% by shopping.
Our pensions at risk after many bought assets without knowing the risks: Chasing yields!
Mortgage re-fi time: fed rate lower may make it worthwhile even with closing costs.

Shopping for funeral? Internet lets you compare prices: Few tell all—Surprise!
Hundreds of working people donated enough $1s to save a forest/falls from development
Greta Thunberg to Barack Obama: 'No one is too small to have an impact'
Colt will suspend production of AR-15 rifles: ‘too many’ in the market now

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