Get to know your financial biases for a more secure future
What are the Fundamentals of behavioral finance? First: overconfidence bias. New investors make a killing on one of their first trades and now they feel like Masters of the universe. Self-deception means we miss information vital to making informed decisions.
Second: Over-simplification means we think “investing is simple—just do what we did before.” Some people try to mirror an action they read about like buying Coke because Warren Buffett owns Coke. Third: Emotional decisions. Some folks hear about a fantastic money-making scheme and avoid doing their own research. Internet chats tell them to buy Vietnamese Dong and check the site for the signal to sell. Fourth: Social pressure means you hear that the “smart money is selling health care stocks short.” That advice may have been accurate last month but not now. Learn more about your biases here. Remember, the middlemen only make money when you buy or sell. It is your money!
Is a health savings account right for you?
When health care needs are NOT great—you both are in good health—this kind of account lets you save money in a tax free account. You may accumulate funds until you need them year after year—even later in retirement. This account may be set up IF you can buy or your firm offers a high deductible health care policy. By using untaxed dollars in a Health Savings Account (HSA) to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs. HSA funds generally may not be used to pay premiums. While you can use the funds in an HSA at any time to pay for qualified medical expenses, you may contribute to an HSA only if you have a High Deductible Health Plan (HDHP) — generally a health plan (including a Marketplace plan) that only covers preventive services before the deductible.
Many wealthy people want to copy Trump’s $750 tax bill
“Why can’t I do that?” Less than 0.5% of very high-income households paid as little tax as President Trump in 2016. Few of us of any income can match Trump’s avoidance methods. With median incomes (AGI of about $50,000 to $75,000), only about one in 10 paid $750 or less. 45% of those middle-income households paid between $5,000 and $10,000 in federal income tax. People who know about taxes think that Trump took questionable deductions. Trump has special legal entities to avoid taxes. Real estate development is especially ripe for cheating—almost anything can be considered an expense in the real estate biz plus depreciation on buildings provides extra large deductions. Also Trump has turned his business failures into huge tax benefits. Most of us cannot deduct the huge real estate loans he used to develop properties that failed. If we go bankrupt, we can’t deduct the loans like he did. His accountants have used questionable techniques in that area according to some experts. For instance, Trump used special appraiser friends in inflating the value of his ‘woods’ to produce a tax avoidance of $21 million. Trump has left a low-cost method of tax avoidance for us in current IRS rules.
Use the IRS approved tax-FREE account for working people: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300
Are you ready? Social Security will cut benefits in 10 years
Social Security Trust Funds are expected to see shortfalls starting in 2031, three years earlier than expected, according to a new forecast from the Congressional Budget Office (CBO). Without Congressional intervention to shore up the funds, the SSA will need to cut benefits to retirees and beneficiaries as much as 25%, CBO said. With the loss of revenue from GOP tax breaks to the rich, Covid pandemic economic effects, and low interest rates, most smart investors are expecting less retirement income. For those who have at least 10 years before retirement, savvy investment moves could offset the loss of SS benefits. We don’t know what will happen to the market in the future, but we do know fixed income CD rates of under 2% won’t help us. The only inflation killer is a portfolio of stocks. Despite the fall in prices in 2007-8, those who held on did great—earning 13.58% per year over 10 years; 11% per year since 1976. If you start now, you will have enough for retirement since no one takes ALL their money out of stocks when retirement begins.
Need to save money? Save over $3,500 a year
When returns on investments are low, paying your advisor’s fees can rob you of over $100,000. If your investments are earning 6% but your fees, commissions and expense ratios total 2%, your account will grow HALF as much as it could have over time. Example: You invest $250 a month for 35 years with costs of 2% per year. You end up with only $229,194. If your 6% a year on average only cost you 0.07%, you would end up with $352,216. That is $123,022 more—HALF again than with advisor fees. You can always hire an advisor when you have a problem. Your advisor pockets the $123,022. Most of us are correct in assuming advisors are a luxury item. We can’t afford to give away that much of our nest egg. Plus it could be tax-FREE, adding ¼ more.
Dictator: “I just start kissing them” 19 women
Dictator: Plan to eliminate FBI, jail opposition
How Govt wastes our money: Our Representatives gave 3.7 Trillion to the wealthy!
NASA putting 4G network on moon: many kids can’t do online school here lacking 1G
Trump blocks CDC guidance on masks on all transport: Almost like he wants us to suffer
Trump blames leftists for protest violence but court docs say young adults from burbs
Roberts & Supremes allow ballots post marked Nov 3 to be counted despite slowing mail
hackers change election: picture says “1 million Trump event”; really
‘60 Minutes’ too rude, biased to Trump ego so he walks: Dictators need positive messaging
Postal service benches its police who guard mail boxes: thieves encouraged to ditch ballots
Company employees threatened with job loss if Trump loses: FL GOP pressures companies
Jared to start new Trump media outlet: Trump-branded product outlet; rebuild brand/empire
Trump mob member Broidy pleads guilty to unregistered foreign agent for China: no jail
Another teen Trumper caught plotting to kill Dems: AR 15 & explosives van;
Schools open then close: virus cases up: teachers face life or death or fired
SEC asked firms to tell us the truth about their bad acts: Wall Street does not: Surprise!
Mark Gelvan caught running fake charity (vets, cancer, disabled) $56 million: spent most
DoorDash, Grubhub, Uber Eats caught charging restaurant 20-40% fee to deliver plus tip
Vast Tech, OMG Tech caught tricking clients’ computer problems so buy tech support
Health Insurance Team caught fake state website mislead buyers with private fee plans
One-Time PIN Code Scam: https://www.youtube.com/watch?v=j43rcSe_vik&feature=emb_title
Trump claims Google stifling competition and innovation: I tried others—just garbage
Eric Trump caught tricking voters with fake photo of Mr Cube’s hat: how low can go?
Fake product reviews: https://www.pcmag.com/how-to/how-to-spot-a-fake-review-on-amazon
Is your employer watching you at home? ‘You have 60 seconds to start working again.’
Ultimate intimidation vehicle goes electric: does the gun rack fit? The $113,000 toy.
Is it a scam? Check AARP scamline 877.908.3360.
Check Social Security: https://blog.ssa.gov/
Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/
NJ hiring and training coordinated by gov: 70,000 jobs goal
No GRE required: Information and Data Science: online UC Berkeley
CVS Health said it will hire 15,000 employees: winter contagions
Who owns your account now?
NJ Health marketplace: Replaces HealthCare.gov in
Best quality/safe/reliable used vehicles for teens: CR picks start at $7,000
Charlie Brown TV specials cancelled: Apple bought Christmas and Thanksgiving specials
Avoid first-time home mortgage mistakes: get best deal for long-term loans
You pay less tax if you earn over $142,800: income over $142,800 Social Security tax FREE
Top military leaders vote Biden: 'The world no longer looks up to America'
Pope: "Homosexual people have the right to be in a family. They are children of God,"
Supremes could derail progressive laws in 2021: 3 years for
We can apply for Medicare online: https://blog.ssa.gov/apply-for-medicare-online
We can apply for Social Security online: https://www.ssa.gov/benefits/retirement/
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