Friday, April 27, 2012

Social Security done 2033 Start Wealth Reserve NOW

Social Security fund will run out earlier—2033         Time to start a Wealth Reserve.

High energy prices and an economy that has been slow to rebound are worsening Social Security's finances, shortening the life of the trust funds that support program by three years. Use our Tax-FREE Retirement  Only $12.95 at Amazon: by our Insider Law Steeple.

Is your advisor, broker, money manager unbiased?

A former advisor comes clean and explains why it is not possible.

Members seek unbiased information and make their own decisions using our Unbiased Advisors Network:

Most hot tips—stocks or mutual funds—end badly for you! 

When a niche fund attracts a following, others try to replicate its success. As money piles in, valuations become inflated, and the cycle continues until eventually the bubble bursts. “New fund products often follow the trend instead of anticipating it,” says Jeff Tjornehoj, a research director at fund tracker Lipper.

The pattern occurs over and over. In 2000, 94 tech stock mutual funds and ETFs were launched, according to Morningstar -- more than in any other year -- right at the peak of the dot-com bubble. From the end of 2000 through the October 2002 lows of the bear market, the average tech fund lost a cumulative 64 percent while the S&P 500 lost 31 percent. Brokers make money buying and selling.

Lesson: Chasing the next big thing only helps the person who is trying to sell it.

5 old white guys will determine our health care fate in June

25% of workers lost health care coverage for some time in 2011

One-quarter of adults ages 19-64 experienced a gap in their health insurance in 2011 due to a loss of job or changing jobs, a non-profit group says. 62 percent of those who tried to buy a policy in the past three years said it was very difficult or impossible to find affordable coverage. 1/3 of those that applied were denied or lost some coverage due to pre-existing condition.

Maybe we should try the single payer system. Can’t be worse than the current one!

New car in your spring?

If you have the new car itch, think about scratching it with a 3 year old luxury model. The average new car loses nearly HALF its value in 3 years, according to Consumer Reports.

Members use their Wealth Reserve to lend themselves the money to buy used luxury and pay themselves back over 4-6 years, saving interest and assuring later goals are met. They look for value—EG: 2008 Lexus ES Certified 53K mi $25,000 in central Ohio.  Shop online. Know the competition. Be willing to walk away—that gets to salesmen all the time. They have no choice but to counter. New study says know price dealer paid:

Is your brokerage the highest paying one?—More for broker; less for you.

Topping the list is Commonwealth, Ameriprise, Wells Fargo.

Perhaps it is time to find a cheaper one. Members use Wealth Without Wall Street to buy only what they need. $15.65 at Amazon.

Long-term care policy price rise?

The average premium for $150 a day benefit has risen from $1,524 in 2007 to $2,269 in 2012 for a 55 year old in good health, 3 year benefit, 90-day deductible, and 5% compound inflation protection. You may be better off using a Wealth Reserve. Check:

SCAMS                       Only the little people pay taxes.” Leona Helmsley

MetLife, caught stealing from the dead, pays fine—no one goes to jail

MetLife will pay about $500 million in a multistate settlement after regulators reviewed whether companies were holding funds that should go to beneficiaries. Insurers are still investigating more than 445,000 potential matches for additional unpaid claims. "This investigation makes it perfectly clear that something must be done to make sure families across New York receive the life insurance benefits that they are due," Gov. Andrew M. Cuomo said.

Most scams start as someone you know providing information from thieves

Your co-worker, fellow parishioner, social gathering, etc. tell you of special situation. You don’t want to pass up a good opportunity and go “just to listen.” Then usually the sales pitch is so innocent and safe sounding that you think, “What can it hurt to give it a try with $2,000?” But it does hurt. Over time you can’t stop adding money since your statement looks great. You sell yourself and tell others, “I would like you meet Mr Madoff, he’s been great.” Madoff’s victims were not stupid people, just friends.

Who owns your account now?

Harleysville to Nationwide

MetLife reverse mortgage business to Nationstar Mortgage LLC

41 Watchung Plaza, B242
Montclair, NJ 07042

Friday, April 20, 2012

Tax-FREE Retirement?

Will you be paying more tax in retirement?

Your Social Security is taxed—Up to 85% of your benefits are taxed. If you will have over $34,000 ($44,000 joint) in income from 401ks, pensions, annuities and IRAs, your benefits are going to be taxed. You may end up in a higher tax bracket in the future.  Now may be the time to increase tax-FREE income while you still can.

Use our Tax-FREE Retirement NOW so you can spend less on Medicare, which is priced on your income. Only $12.95 at Amazon: by our Insider Law Steeple.

Obama paid 20.5% tax on his income.            What did you pay?

Romney paid under 14%. If the capital gains tax is 15%, how did he do that? How does Buffett pay just 17%?

You can use the rules like they do. Build Tax-FREE wealth:

Do you want to save?

79% of people say they would rather have $500 dollars to spend five years from now than $50 to spend today, according to a survey. But that requires an investment earning 50% a year—NOT POSSIBLE legally. Members expect $100 to be worth $10,000 in the future using a tax-FREE financial system with low-cost mutual funds earning 10-12% a year. Building wealth takes patience.

MT health insurance rates spike

Federal health officials have labeled as "unreasonable" a 15 percent rate increase this year by one of the larger health insurers in Montana's small-group and individual market.

Yet the company said Friday it disagrees with the determination, and is going ahead with the increases, Assurant Health of Milwaukee said. Federal and state officials have no authority to stop the increase. All you can do is fire them like Romney but that assumes there are cheaper alternatives. Where is the public option?

GOP out of control?                Signals to the crazies to take action?

Santorum donor asks, Are Obama's 'Teleprompters Are Bulletproof'?

Is this the call to arms for the gun-toting vigilantes in Texas and Florida?

MI allows bikers to go helmetless      Live free or die?

GOP reverses safety law of over 50 years. Insurers and hospitals gear up for more business.

Where do special interests stand on ObmaCare?

Drug companies do not appear to be looking forward to having to go back to the drawing board on health-care reform if the landmark legislation is somehow struck down by an upcoming Supreme Court decision.

Doctors And AMA Split Over ObamaCare. Physicians treating Medicare beneficiaries receive 81% of the rate private insurers pay. For Medicaid patients, reimbursements are even lower — just 56% of the private rate. In 2009, underpayments to hospitals amounted to $36.5 billion.

Romney’s plan

"I'm going to probably eliminate for high-income people the second-home mortgage deduction," Romney said, adding that he would also likely eliminate deductions for state income and property taxes as well, according to NBC's Garrett Haake.

“I will send a lot of what happens in Washingtonback to the states."

Eliminate the Department of Housing and Urban Development, downsize the Department of Education. Romney’s plans are hidden away—not fodder for Dems to use against him.

Do you need a prepaid credit card?

Pay no monthly fee and no reload fee or no ATM fees. Your choice for emergency or your student book buys or safety (no cash carry)?


Wealthy have already figured out how to avoid new taxes!

The highest-earning U.S. households have ways to escape President Barack Obama's Buffett rule or other measure with tax-planning techniques that would limit their liability. Those affected taxpayers could take advantage of tax-free investments such as municipal bonds to escape the Buffett rule's bite. Their tax rate—the one they actually pay—fell from almost 30 percent in 1995 to just over 18 percent in 2008, according to the Internal Revenue Service.

Wealthy also use complicated borrowings that never get repaid, netting the beneficiaries hundreds of millions in tax-free cash. Frank McCourt paid no income taxes for years. Executives with company shares borrow against them, invest, pay tax later with gains.

RE partner wants out: he has firm borrow cash he needs, invest or hides from taxes.

Leave future stock earnings to the kids and escape the estate tax with a GRAT.

“Freezing” the value of an estate, so taxes don’t eat up its future appreciation.

Stock options allow executives to calibrate the taxes on their compensation much later.

Using, but not unloading, underwater stock shares to adjust your tax bill when you want.

An investor can sell property without actually selling—or incurring taxes using partner.

PUA cash value life insurance loans provide tax-avoiding benefits.

Converting traditional IRAs to Roth IRAs. Future accumulations tax FREE.

Executive’s deferred-compensation plan can mean decades of tax-free growth.

Here we go again?                  Too Big To Fail bankers use us as backstop to save them

Credit default swap (CDS) spread movement and liquidity for Goldman Sachs, Morgan Stanley and Bank of America is showing elevated pricing risk, according to Fitch Solutions in its latest earnings commentary.

If Washington could just stop the bleeding

Fraud, waste and abuse cost the Medicare program $48 billion in 2010. The health care industry has begun incorporating the latest technology from the banking industry to catch fraud, waste and abuse earlier. “Have you ever gone on a spending spree only to get a call from your credit card company that same day to make sure your card wasn’t stolen?” Stubbers asked. “In the same way, health plans have begun detecting claims that might be out of the ordinary to stop fraud before it happens.”

Fed takes the 5th after scandal of wasting our tax money

We paid for an October 2010 Las Vegas conference that cost $823,000. The regional executive who hosted the Western Regions Conference, Jeffrey Neely, invoked his Fifth Amendment rights and his chair remained empty the rest of the House Oversight and Government Reform hearing. He could face a criminal investigation. He got a $9,000 bonus for it too. His boss resigned and fired another without getting money back.

Who owns your account now?

Edelman Financial to Lee Equity Partners

Old Mutual mutual funds to Touchstone Investments


41 Watchung Plaza, B242

Montclair, NJ 07042


Friday, April 13, 2012

"Only the little people pay taxes"

Tax return done?
Ask for extension to file taxes if you will miss April 17. You can obtain an extension for the paperwork buy you still have to send in your check by April 17. Send this form:

“Only the little people pay taxes.” Leona Helmsley
See why, below, under SCAMS

Is your “paid up”life coverage really paid up?
With low interest rates in their 3rd year, insurers are cutting the crediting rates on your policies. This means your policy is not working out as promised by the agent. Some insurers may let your coverage lapse because then they don’t have to pay the death benefit. The cash value is probably gone. Alternatives: You can lower the DB and pay less. You can ask for a new projection of premiums to see if you or your heirs might want to keep paying. After all, they will benefit. You can sell the policy to investors through life settlement agents. Check WARNING: Read the mouse type—taxes may be due.

Uncle Sam wants you to buy an annuity—but is it right for you?
Regulators propose to make it easier for you to use part of your retirement accounts to buy longevity annuities (deferred income annuities) that start your payouts many years after retirement, typically at age 85. All annuities have extra costs above what you can have your IRA trustee do for you at no cost. Usually you have limited means to retrieve your money if you need it. Some annuities end at death with the insurer keeping your unused balance. Others can pay you and your surviving spouse. There are alternatives that pay more:

CA flood coverage rising
Flood insurance is on the way up for low-lying properties in the Ross Valleyand Mill Valleyas the Federal Emergency Management Agency prepares new flood plain maps. Kathleen Schaefer, a FEMA official, said that as local flood improvements are made, the agency will revise its maps, enabling lower prices for insurance. She added flood insurance backed by the government averages about $484 a year, but can range up to $2,800. It is important to shop around.

Is online home inventory right for you?
Now you can keep all your documentation for an insurance claim online so you are ready to present your claim when needed. organizes your pictures and receipts and documents so you don’t need a place to secure your pictures and inventory listing OUTSIDE your home. This is a great idea but the cost is $99 a year. Seems like you can just backup your computer with the same information and kill 2 birds with one stone. Some use offers unlimited backup for $59. Depending on your backup needs, there are three different plans to choose from.I keep my important stuff in another hard drive AND as an email to my self—FREE.

Are Exchange-Traded Notes, ETN, right for you?
ETNs are unsecured-debt instruments that track an index. ETNs don't hold anything: They are contracts between an investor and an investment bank stating that the bank will deliver the return of an index minus fees. In recent weeks, ETNs issued by Credit Suisse Group AG and Barclays PLC have drawn scrutiny from regulators and brokers-dealers, because their shares began to trade at extreme premiums to their respective indexes. After the banks stopped issuing new shares of the notes, demand for the shares drove prices to around twice the actual net asset value of the notes. When Credit Suisse announced it would start issuing new shares of its ETN again, the premium at which the existing shares were trading was wiped away; share value plummeted 50% in two days. This is not a wager you want to make unless you have insider information. Members invest without Wall Street:

CA calls Aetna out on rate hike
California regulators have formally declared an April 1 rate hike from Aetna Inc. on small employers "unreasonable," but the insurer isn't backing down from the hike. Annually, the hike amounts to an average 8 percent increase. CA determined the hike to be unreasonable after state actuaries found that Aetna's projections about medical cost increases weren't supported by actual claims. Aetnamade a 27.7 percent profit in 2011. Members shop for health cover often.

Tea Party supports BrounCare as alt. to ObamaCare
The Rep Broun plan is “a very simple bill that lowers costs for everyone. Plus, we cover those who cannot afford it by giving states money to help the uninsured get care.”The bill doesn’t directly address Medicaid, as Broun has co-sponsored another bill, the State Health Flexibility Act, that converts Medicaid into a series of block grants for the states. The Broun plan would allow seniors to opt out of Medicare, and seek out their own insurance instead. It’s not clear that an opt-out provision is compatible with the premium-support formula that Broun has conceived. One detail not worked out: Healthier seniors would be the ones who would choose to opt out, leaving sicker retirees on Medicare. Poor people would want to move to states with bigger block grants for better care. Broun’s plan would revolutionize the insurance market, by incentivizing employers—particularly smaller ones and startups—to pay their workers directly in wages, and let those workers decide how to pay for their own care. Why would an employer pay extra wages so employee can buy care when they know most employees will keep the money and wait at the emergency room. When they get sick, the Broun’s plan lets ER refuse care and gives doctors tax credits to treat uninsured sick. As always, the devil is in details. 1%ers love BrounCare!

PA setting up health insurance exchanges with fed help
Simplifying the process for consumers is the goal of the insurance exchange. Those needing insurance will log onto the exchange, enter their ZIP code, and be electronically routed to qualified providers where their offerings are presented. Policy rates are difficult to predict, but each policy for sale will be a "qualified" (what services will be deemed "essential" has yet to be decided) health plan that is Pennsylvania-licensed and accredited. The process may refer qualifying people to sites that deliver government-funded CHIP and Medicaid options. Health insurance purchased on the exchange will be guaranteed issue, with no medical questions asked. The policies will rely on widely dispersed risks and costs for viability. "Many industry insiders forecast that exchanges represent the future approach of health insurance sales," one observer said.

VT welcomes exchanges
Three out of four (75 percent) Vermonters say they are interested in using "an online health insurance exchange" to compare and purchase health insurance... Employers cutting health care from benefitsA new survey found the percentage of all adults who get their health insurance through an employer trended down from 49.8 percent in 2008 to 44.5 percent currently.
RomneyCare is working in MA!

Apple CEO paid $1 million A DAY! Job creators? How many jobs is Cook creating in the US?
The median chief executive in this group took home $14.4 million — compared with the average annual American salary of $45,230. But can American workers afford to buy stuff to make the economy grow. The workers who actually make Apples can't afford to even look at one!

Bush wishes the tax cuts were not his!
Former President George W. Bush said he wishes the " Bush tax cuts" had someone else's name attached to them because "if they were called somebody else's tax cuts they'd probably be less likely to be raised." The so-called Bush tax cuts, enacted over the course of Bush's first term between 2001 and 2003 are set to expire at the end of this year and are sure to be a campaign issue in November. Tax cuts and two wars made the deficit what it is today.

GOP out of control?
FL Rep. Allen West says that up to 80 House Democrats are secretly members of the Communist Party. Worse: His supporters and others actually believe it. Back to 1950s?(West cites the members of the Progressive caucus.)

Another rate hike for long-term care insurance?
A look at the future of health care too!The long-term care insurance market is struggling, and some companies are dropping out of selling the insurance to individuals. Others are raising premiums, but nobody is raising them as high as John Hancock, where some long-term care premiums in other states are jumping as high 90 percent. The actuarial numbers used to create these plans years ago turned out to be wrong. People are living longer than planned. They stay in nursing homes longer. The premiums they paid were too low. Insurance companies make their profits on investments, and it hasn't been happy days in that area for the last few years. Members look at alternatives:

SCAMS “Only the little people pay taxes.” Leona Helmsley

Corp tax receipts continue to fall. Lowest in developed world!
Citizens for Tax Justice surveyed major U.S. companies and found that 26 on average paid no net federal income taxes between 2008 and 2011, among them General Electric and Duke Energy. Revenue from corporate income taxes fell from between 5 percent and 6 percent of gross domestic product in the early 1950s to about 1.3 percent of GDP in 2010, according to the Tax PolicyCenter, another tax research group.

Taxpayers gave our taxes back to GE, BankAmerica, Boeing, Citigroup, Exxon, Google, Merck, Pfizer, FoxNews, Verizon, Wells Fargo, and others after they all made profits. The GAO (the Government Accountability Office) found that 18,857 US companies keep a post office box in one five-storey building in the Cayman Islands.

In fact, 80 percent of the largest US corporations use offshore tax havens. Little wonder 57 percent of these companies paid no federal income taxes for at least one year from 1998 to 2005. General Electric keeps its tax rate low -- an average -19% (negative 19 percent) A REFUND between 2008 and 2011 -- primarily by using tax benefits from its leasing business to offset profits in other units, such as the company's finance arm. Others use accelerated depreciation which lets firms deduct the cost of equipment from profits quickly. Accelerated depreciation will cost the U.S. Treasury $37 billion between 2010 and 2014. Some use special credits obtained by lobbying each level of government.

Swiss continue to hide American tax evaders! “What treaties?”
A Swiss court blocked the handover of one unnamed bank client's data to U.S.authorities. The Federal Administrative Courtsaid a 1996 treaty between Switzerlandand the United States doesn't allow the U.S. Internal Revenue Service to request the account details of potential tax cheats without clear evidence of fraudulent intent. Drawing on Switzerland's distinction between evasion and fraud, the court said evidence of tax evasion, such as failure to declare a Swiss bank account, didn't provide sufficient grounds for the IRS to receive the data. It also criticized the fact that the IRS didn't specifically name the suspected tax cheat in their information request.The IRS had asked its Swiss counterpart in September to provide details on certain types of American clients who it said had received help from Credit Suisse in hiding income and assets in secret accounts. Nationalist People's Party says they will try to block the treaties.

NJ Health care report cards

IAN 41 Watchung Plaza, B242 Montclair, NJ07042 973.746.2014

Friday, April 6, 2012

How much will YOU have?

Recent survey says 60% of working Americans have less than a $25,000 nest egg
More than half are worried about their job security and thus are not saving more. Half of us expect to receive a company pension yet only 33% actually have one now. Most workers have no idea how much it will take to live on in retirement but claim they will have enough. Get a plan:

AZ favors mandate for auto insurance but not health care
A bill to let police tow and impound cars without insurance met a narrow defeat in Arizonalast week, highlighting the attention paid to the issue by the state and the harsh penalties for driving without coverage there, according to Online Auto Insurance News. Estimates from the Insurance Research Council put the number of uninsured drivers in Arizonaat 12 percent, which is just below the U.S.average of 13.8 percent, according to 2009 data. The GOP mandates many new fees like women’s health test that women must pay for.

A NM town mandates insurance for having a “vicious” dog because someone might get hurt. They are against ObamaCare mandate which requires insurance in case someone gets hurt.

MI voters testing the limits of state authority and the rights of local democracy.
In a replay of the American revolution, voters have signed a petition to have an election, something the state government took away last year. Voters want to repeal the emergency manager law, which effectively voids local democracy. Advocates say local leaders should maintain responsibility for local problems in a democracy. Emergency managers were installed by MI GOP to void local control due to overwhelming debts.

Is Allstate’s Claim Satisfaction Guarantee right for you?
If you are “not happy with your experience” after they pay your claim, they will “give you up to a six-month credit on your car's premium.”But you can’t drop Allstate because of bad service and receive the credit. This marketing tool increases renewals at very low cost. You have to tell Allstate why you are not happy in writing. Most people aren’t going to do that. But if the service is bad, why stay?

Job hunters beware
An increasing number of employers are requesting that job applicants provide their Facebook passwords in order to review the applicants’private Facebook profiles as part of the hiring process. Even a cursory review of an applicant’s profile page can provide an employer with a wealth of knowledge about the potential hire and often plays a role in the hiring decision.

Homeowners—beware if you live in a gated-community!
The killing of unarmed teenager Trayvon Martin may lead to civil lawsuits -- for which George Zimmerman and other homeowners in his gated community may eventually have to pay.Civil liability may be found for all homeowners in gated area even if it is not a crime to kill unarmed person in enclosed area. Watches don’t carry guns!

Is an annuity right for you?
Annuities have gotten bad press because sellers have been pushing at certain type called a “deferred” annuity. This type offers tax-deferred growth of your single premium amount in return for the promise of a higher earning rate than the current bank CD. It is the preferred product of sellers due to a large commission—up to 15% or more. The fees may not produce the returns you were promised. A real annuity is called an “income” or “immediate” annuity. This type may actually make sense for you. It offers a fixed or rising monthly payment in return for your single premium deposit. It pays less commission. The insurer is investing in securities for thousands of clients, knowing that a certain number will die before, and after, their expected lifetimes. You can use this annuity to guarantee you receive a monthly income for the rest of your life. If longevity is in your family, this is a winner for you. Members can obtain the highest monthly amounts using our insider’s information. Today a 65 year old male can buy $579 a month for life for $100,000. There are alternatives that pay more:

Financial advisors/brokers mislead customers, large and small. A working paper released this month by the National Bureau of Economic Research, financial advisers are often more likely to give advice that will lead to higher fees for them than higher returns for their customers. These economists sent hundreds of fake clients to financial advisery firms, banks, and brokerages around the Boston area and found that in many cases those advisers actually steered their clients away from more productive investments to less productive ones that produced more fees. They also found customers don’t believe a simple strategy like investing in an index fund can be the best long-term vehicle. SURPRISE--we have been brainwashed to think Wall Street knows best.

David Lerner Associates overcharging retail customers on sales of more than 1,500 municipal bonds and 1,700 collateralized-mortgage-obligation transactions. It was ordered to pay more than $3.7 million in fines and restitution.

Bankers Life settles charges it ran unlicensed Broker-Dealer operations

Lottery works—States got half the $560 M jackpot--without raising taxes.
In NJ, Christie can pay for the helicopter he uses to take him to his kid’s games. More than $96.7 million in tickets were sold in New Jersey in the two-month stretch leading up to the winning drawing, according to the lottery statistic sheet. The GardenState will get to keep $40 million, while retailer sales commissions accounted for $4.8 million.

Overpaid players go broke
80% of former NFL players have gone bankrupt or are under financial stress. Within five years of retirement, an estimated 60% of former NBA players are broke.

IAN 41 Watchung Plaza, B242 Montclair, NJ 07042 973.746.2014