Saturday, November 26, 2011

Investors do better withOUT 'professionals'

Young investors are better off WITHOUT paying “professionals”
Gen X affluent investors witnessed their investable assets grow by roughly 11% on average in 2010. Self-directed affluent Gen X (ages of 29 and 44) investors – those who do not trust any portion of their investable assets to a financial advisor – experienced 28% asset growth in 2010, while their peers who turned to a financial advisor for guidance reported that their investable assets climbed a mere 3% on average during that same time period, according to CogentResearch. A co-author of the study added, “advisors are taking a big risk of alienating a generation of investors that are already inclined to go it alone.” Investors are finding out they don’t need an advisor. Members use our Guide: Wealth Without Wall Street

Health insurance policies with price comparisons make shopping easier
A greatly expanded website to shop for coverage is result of ObamaCare. Even small business owners can see detailed review of their health insurance plan choices. You can search for the type of plan, costs and benefits that fits your budget. Small business comparisons join the options for individuals and families by ZIP code.

Economists now fear US inequality may threaten growth
New critics of the gap between rich and poor cite lack of income for middle class as reason for lack of growth in economy. “The guys who are falling behind don’t see much hope of getting ahead and therefore are more focused on redistribution,” says an IMF economist. Ultimately, unbridled inequality threatens social stability as rich and poor nurse their mirror-image resentments.
This socioeconomic time is getting to look more like the Roman Empire at the end. Rich got richer, poor got poorer. Coliseum entertainment got more bizarre to keep crowds happy. Wars in far off countries meant little to society.

Deficits don’t matter.” Dick Cheney, v President of the United States, 2002

Banks now find criminals by tracking our transactions for patterns
Using software from the military and intelligence fields, banks are going high tech to track down the criminals who want to crack the safety of our accounts.

First law of physics was broken—could Einstein be wrong?
Scientists reported that they had clocked subatomic particles known as neutrinos going faster than the speed of light, to the astonishment and vocal disbelief of most of the world’s physicists. The same group of scientists, known as Opera, said on Friday that it had performed a second experiment that confirmed its first results and eliminated a leading criticism of the first experiment.
Einstein himself — the author of modern physics, whose theory of relativity established the speed of light as the ultimate limit — said that if you could send a message faster than light, “You could send a telegram to the past.”
“If it is true, then we truly haven’t understood anything about anything,” one observer said, adding: “It looks too big to be true. The correct attitude is to ask oneself what went wrong.”
“It could be the first hint that neutrinos can take a shortcut through space, through extra dimensions.”
Italian scientists at the receiving end of the experiment said they don’t agree. More tests to follow.

Two Americas
The top 0.1%– about 315,000 individuals out of 315 million– are making about half of all capital gains on the sale of shares or property after 1 year; and these capital gains make up 60% of the income made by the Forbes 400.

"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can’t have both.” Justice Louis Brandeis

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Friday, November 18, 2011

Is Vanishing Deductible right for you?

Is the Vanishing auto policy Deductible right for you?
Nationwide, Hartford and other insurers are offering to lower your deductible $100 every year you are claim-free. Sounds good except this little accounting trick costs you dearly over the long term. First, this gimmick only works if you are a safe driver. By definition, you are not going to pay the deductible any time soon because you don’t make claims. Second, this “benefit” cost you more each year. If it costs you an extra $60 to $80 a year, and you have no claim in 10 years, you are out $600 to $800. Again if you are a safe driver, you will never save on your deductible. Members use the self-insurance model. Save 30% on the cost of your coverage by making the deductible $1,000 or more. Over time you will earn more than the $1,000 on the savings. Plus you can keep your policy savings instead of giving it to the insurer. Save on all your insurance needs:

New study shows poverty increasing for Medicare recipients
Americans 65 or older sustained the largest increase in poverty under the revised formula – nearly doubling to 15.9%, or 1 in 6 – because of medical expenses that are not accounted for in the official rate. Those include rising Medicare premiums, deductibles, and expense for prescription drugs." "Increasing Medicare copayments or deductibles would be devastating for low-income seniors who are already suffering with unaffordable costs to meet basic needs, without adequate help," said Howard Bedlin, vice president of policy and advocacy at NCOA. The “supercommittee” is considering hikes in out of pocket expenses affecting low-income recipients. The agency proposes expanding Senior Community Service Employment Program (SCSEP) and Senior Environmental Employment (SEE).

Bank charges vary widely so shop wisely
With the recent scare of $5 per month for using your “free” debit card, you might feel it is time to move permanently. There are several options listed in this article but it misses the savings banks and credit unions which usually pay interest and reimburse you for foreign ATM use. The downside is that they have few branches. However, if you don’t need an ATM or teller EVERY day or like doing online banking, this might save you $100 over time. Consider that the penalties for mistakes are much less with small banks.

Annuity sales hit new highs—insurers limit supply
Your advisor has probably told you that some annuity benefits are being limited because insurers cannot afford to pay for them in the future. Your advisor may have pushed the panic button—“You better get it now before they are withdrawn.” Don’t fall for that false urgency. The insurers are changing some of the benefits because they are trying to gain market share, as they always do. But when you buy this line, you are locking your money into their insurer’s timetable. Our members consider the downside and consider all the alternatives. They use this Guide: Do Not Buy That Annuity: Create a Guaranteed Income plus Build your Wealth ReserveTM

Supremes consider what kind of health car we have in American—5 guys for 307 Million!
The Supreme Court will take up legal challenges, including one from Florida, to the 2010 health care reform law. The decision could change the face of health care in America.
"However the court rules, it's going to have enormous consequences on who has health insurance and how much you're paying for that health insurance," said Bob Jarvis , a law professor at Nova Southeastern University who regularly provides legal analysis. None of the Supremes has ever had to buy his own health insurance, even with a big salary.

Washington State to ban Medicaid from going to ER for non-emergencies
Washington court halted implementation of the state's controversial three emergency room visit benefit limit for Medicaid enrollees on a technicality. The State’s limit is being challenged by doctors and hospitals that fear patients will not seek help when their condition is truly life-threatening.

Our tax dollars pay for Defense contractor’s pensions for their workers
Even though many taxpayers have lost $ thousands from their pensions and 401ks, our taxes are used to pay for the loses of workers’ pensions and health care at Boeing, General Dynamics, Lockheed Martin and Raytheon. Since these companies are already making $ billions, why should we have to pay for their workers’ benefits. Most American companies can’t bill us for their workers’ benefits. Is this fair?

Bank America caught in overdraft fee scam
If you had a Bank of America account and paid an overdraft fee between Jan. 1, 2001 and May 24, 2011 you may be eligible for a payment. If you still have the account, you'll receive an automatic credit while those who changed banks will get a check in the mail.
It's estimated the average award will be $27.

Paterno “sells” his home to wife for $1
Joe Paterno's recent real estate transaction, reported by Mark Viera and Pete Thamel of the New York Times, has led some to speculate he knew his world was going to come crumbling down around him at Penn State. The winningest coach in major college football history quietly transferred complete ownership of his house to his wife for $1 less than four months before the bombshell sex abuse scandal erupted. Some legal experts believe the move was made to financially shield the Pennsylvania pigskin legend. The house is worth $600,000. Joe’s annual pension of more than $500,000 a year will start soon. What do you think:

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Montclair, NJ 07042
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Friday, November 4, 2011

Your broker may get fired soon

Your broker may get fired soon
The larger brokerage firms have decided they only want big money. According to one guru, “The wirehouses see themselves better off with one $1 million producer than four $250,000 producers.” James Gorman, CEO of Morgan Stanley, for example, is determined to raise pretax profit margins in the firm's wealth management operations from the current 11% toward his target of 20%. This week, the firm made changes to its adviser compensation grid — raising the penalty box threshold from $250,000 to $300,000 for lower-producing advisers. Those who don't meet the new production targets will see their payouts drop to 20%. That means that your broker must sell more than $1 million of products every year to survive. Brokers earn 25%-33% of the $300,000 revenue target or about $75,000 gross. You may be better off on your own since the pressure to sell you may become greater. The best investors say: “Snoring is the best way to create wealth.”

MetLife is cutting the benefits of its annuity
Insurers are selling to investors’ fears by promising to pay a minimum monthly benefit sometime in the future: Talk of ending Social Security/pensions with market volitility.
Much of insurer’s cuts have been driven by big sales of the Guaranteed Minimum Income Benefit Max living-benefits rider, which has prompted MetLife to reduce the payout twice since launching the product in May. The GMIB Max, first released in May, provided a 6% income benefit and quickly became a favorite of advisers. Historically, this rate beats most conservative investments. However, when inflation goes back to the 3% norm, investors will be paying the annuity surrender charge to get out of the GMIB. Members take a planning approach to higher future retirement income rates using our help: Do Not Buy That Annuity: Create a Guaranteed Income plus Build your Wealth Reserve

Who are the 1% class that protestors are talking about?
Anyone reporting $343,927 as AGI income according to the IRS. There were fewer than 1.4 million households that qualified for entry. They earned nearly 17% of the nation's income and paid roughly 37% of its income tax. Most of the top 1-percenters made over $1 million: $960,000, on average. Financial professionals made up about 14% of the top rank. Executives, managers and supervisors working outside of finance accounted for 31%. Medical professionals came in at 15.7%, while lawyers made up 8.4%. The problem is that this group’s income has doubled while the rest of us had no real increase. With so many descent jobs disappearing, there is no hope for improvement. Productivity gains have gone to the top. Workers do more for less. Their pensions have been stolen, according to

Is Auto insurance rate shopping worth it?
Dan of NJ just saved over $400 a year. He got a notice from his insurer last June that it was raising his rates through no fault of his own. In fact he had just completed the AARP safe driving course for another discount. The insurer was raising rates about $80 a year for his 2 older cars with full coverage for 2 older drivers. Recently, his college alum association sent a letter offering to cut rates with a new carrier. Dan’s wife had received a letter last month from her professional association offering to cut rates. Dan took one hour to shop both alternatives for exactly the same coverage. He then called his present carrier to see if they could beat the new rates from his alum’s company. No, they couldn’t. Dan signed up with the new carrier and saw his costs drop to $1,220 a year. He also learned that his old policy had a higher PIP benefit than he needed. PIP coverage pays his doctor bills AFTER his comprehensive health insurance reaches its max. But Dan has great coverage and will never have to use the small auto policy amount. He was wasted premiums every year for over 20 years. Dan used our Guide to buy only what he needed:

Do you wonder why the Occupy Wall Streeters are angry?
Your favorite companies like GE are making record profits AND getting a refund from your federal withholding tax payments. What is wrong with this picture. 30 companies paid nothing and some got refunds. 280 paid less than 10% of their profits. Wells Fargo had $49 billion in profits in 2008 through 2010, yet received a tax benefit of $651 million.


Follow up on Bank America putting our money at risk AGAIN!
Two Democratic members of Congress on Thursday sent letters to Treasury Secretary Tim Geithner and other regulators expressing concern that Bank of America Corp had transferred derivatives from its Merrill Lynch subsidiary to its banking unit. If the brokerage bets go bad, we taxpayers would have to bailout the FDIC banking unit. The Fed gave BOA a pass to do this despite the new law. Have we not learned?

Debit fee issue becomes marketing tool--BoA gives in for now
Some large banks have withdrawn plans to raise fees in light of opposition to Bank American’s threat of $5 a month. Chase and Wells Fargo are joining the list of banks that won’t be charging customers to use their debit cards, as the backlash over Bank of America’s planned $5 monthly fee continues. Signs like, “I bailed out the banks and all I got was a $5 debit card fee” have been spotted the Occupy Wall Street protest in New York. Credit unions and community banks nationwide are reporting huge spikes in new accounts as consumers seek no-fee options. BoA gave up raising fee.

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Montclair, NJ 07042
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