Friday, June 28, 2013

Former Wall Streeter: You can beat us!

Our Tricks of the Trade: You can beat Wall Street
By Ian Sender, Former Director, Wall Street firms
Learn how to beat Wall Street and earn 10-12% per year.
Avoid taxes on your wealth.
Avoid advisor and brokerage fees.
Former Director retires and explains the “tricks of the trade” in English.

Insurers dropping NY/NJ homeowners
Long Islanders already have limited homeowners' insurance options: Allstate, State Farm and Liberty Mutual issue the vast majority of policies on Long Island, and all three have been withdrawing from the Long Island market. Insurers don’t like claims even for a 100 year storm but they like the premiums for 100 years. High deductible self-insurance may be the only alternative:

Tax-deductible spending on health grows
Nearly 15.5 million Americans are covered by Health Savings Account (HSA)-eligible insurance plans, an increase of nearly 15 percent since last year, according to a new census released by America’s Health Insurance Plans. Plans combine a tax-deductible savings account and high deductible health insurance policy that can make coverage affordable for some people: 

Ah capitalism!
The Ingalls, Kan., school board agreed it was a good idea for top administrators to bring handguns to school. Then, the district learned it would lose its liability insurance coverage if it authorized guns in school. It has now banned guns. Guns are dangerous. Dah.

Are you planning on moving?
Astronomers discovered a solar system packed with planets, three of which are habitable, using new observations and existing data of the Gliese 667C star. The star is orbited between five and seven planets. The Gliese 667 solar system is strikingly similar to ours and the three planets identified as habitable are confirmed to be super-Earths: planets that have more mass than Earth but less mass than larger planets like Uranus and Neptune. We have to lose weight before we move! More mass, more weight.

Miami firm caught ripping customers—still open!
Regulators fined StateTrust Investments $1.045 million and ordered $353,319 in restitution to customers for charging unfair prices in 563 corporate-bond transactions between March 2007 and June 2010.  The companymarked up or marked down the bond prices more than 5%. StateTrust is still in business. You have to shop around:

SCAMS           “Deficits don’t matter” Republican godfather, Dick Cheney, 2002

41 Watchung Plaza, B242
MontclairNJ 07042

Friday, June 21, 2013

When will you become a millionaire?

When will you become a millionaire?
>Double your money every 7-9 years over time.
>Grow your wealth with NO taxes or commissions.
>Use 10 low-cost mutual funds earning over 10%.
>Use an IRS-approved tax-FREE account to protect gains.
“My wealth has come from a combination of living in America, some lucky genes, and compound interest.” Warren Buffett
The wealthy become wealthy by buying assets that grow quickly. As Buffett says, they compound. Compounding is money earning money on its earnings next period. The wealthy stay wealthy by paying lower fees, charges, commissions and taxes.

Can you help the next generation?
The average retirement fund of pre-retirees is about $60,000, excluding car and home. That might pay for 5 years as a supplement to Social Security which currently averages $15,000. If parents or grandparents invested just $50 a month for their newborns for 21 years, and just left it in a market index fund, the kid would not have to worry about retirement. The miracle of compounding over TIME is what can be your greatest gift to your family. Works just like Social Security.

How long does it take to get benefits from long-term care insurance?
Your family members will need to work long hours getting your care bills paid, according to some who have gone through the process for months.
It is important to consider alternatives before spending $3000 a year for 20 years.

Are you happy with your discount broker?
JD Power customer satisfaction scores are in. Scottrade Inc. edged out Charles Schwab & Co. Inc. as the highest-ranked firm, scoring 810 this year versus 798 last year. Schwab scored 797, down from 801. The Vanguard Group Inc. was right behind Schwab at 795. Scottrade did better on its fees-and-commissions ranking as well as the interaction it offers on its website and through mobile devices. Some banks have online offering but are not supporting them as well. Members find better values online:

Are you required to take money from your pension, 401k, IRA?
Yes, according to the IRS: ‘You must take your first required minimum distribution for the year in which you turn age 70½. However, the first payment can be delayed until April 1 of the year following the year in which you turn 70½. For all subsequent years, including the year in which you were paid the first RMD by April 1, you must take the RMD by December 31 of the year.’ You must pay tax on the earnings part of your RMD. If you won’t need the money, you can convert any part of an IRA to a Roth IRA, pay tax, and use it as a tax-FREE legacy to your heirs if you don’t need the money for long-term care or other medical costs.

Aetna health leaving CA
Aetna said it would stop selling individual health insurance policies in California next month, and nearly 50,000 existing policyholders will have to find new coverage by January. Buy only what you need:

MS uninsured stuck by GOP
Many Mississippians may have no options when the new federal health insurance marketplace starts enrolling customers in October. Areas that won't have coverage offered through the online marketplace include swaths of the Delta region and southwest Mississippi, plus scattered areas elsewhere. Among those areas are Hancock and Pearl River counties. Republican Gov. Phil Bryant opposed the state-run plan proposed by the insurance department.

NC OH health policyholders get refund due to Obamacare
Nearly 193,000 North Carolina customers will get rebates averaging $87 this summer because their health insurance company could not keep overhead costs down. Obamacare requires that at least 80 percent of each premium dollar go toward medical services. The benchmark was established to control the amount used by the companies to pay for overhead and bonuses. Ohioans will receive $486,681 this year in rebates. The rebates, issued for the first time last year, will be divvied up among 6,333 Ohio residents and come out to an average of $133 per family. This year, $500 million in rebates will affect 8.5 million consumers nationally, according to HHS, with an average rebate of about $100 per family.

CA patients receive settlement after denial of health care
Anthem-WellPoint has agreed to pay $6 million to resolve allegations that the company improperly dropped policyholders after they got sick and needed treatment. Anthem had been dropping patients since 2006 after they got sick. Anthem claimed their already-accepted applications had errors. Obamacare made this practice illegal.

CA pension fund switches to index funds
Lower cost and higher acceptance by participants were cited by trustees. The plans' custom target date funds also will be switched to passive management. Fees for the funds will drop to 6 basis points (.06), from 52, because of the change. Public employees will have up to 40% more cash in retirement because of the change. You can too:

CA auto rates down
Californians spent less per year on auto insurance in 2010 than they did in 1989, a rate reduction that no other state in the nation achieved. California drivers paid an average of $746 per year for auto insurance coverage in 2010, which is $2.00 less per year than they spent in 1989. Americans nationwide spent an average $791 in 2010, which is $240 more than the average price in 1989. "Name another product whose price is less today than twenty-five years ago," said Harvey Rosenfield, author of Proposition 103. It required insurance companies to open their books and publicly prove they need rate increases. Until your state gets tough, shop and save:

MetLife caught avoiding tax
Metropolitan Life is on the hook for a $2.2 million tax penalty imposed by a 2003 amnesty program. A court ruled that the phrase "all taxes due" in the amnesty act means just that: taxes due. It has only taken 13 years and $ millions to catch them.

SCAMS           "Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws." - Plato (427-347 B.C.)

Can justice be done in the mortgage scam that banks profited from?
Investors in mortgages packaged by banks were scammed by deceit. Who should pay if the investors were part of the scam or should have known better? Will there ever be justice for all Americans who were innocent victims? Can regulators ever regulate?

GOP repeals Obamacare again 37th time
We are paying these people (half are millionaires) to meet and vote on the only chance we non-millionaires have of receiving health care we can afford in the future. Do any of them consider what other countries do for their people? Is it really so bad in Sweden or Switzerland? Not as bad as GOP says it is. Perhaps because Congress is covered already.

Fed pays $½ million to avoid probe
Fed regulators paid $580,000 (tax dollars) to settle claims by a former employee who says he was fired in an effort to quash his investigations. Employee Weber reported allegations of unethical conduct by recently departed Inspector General H. David Kotz. David Williams, the inspector general of the U.S. Postal Service, concluded that Kotz violated ethics rules by overseeing probes that involved people with whom he had personal relationships. Kotz had quit in January 2012 amid questions about his conduct. Smoke or Fire? $½ million sounds like a big fire.

Crop Ins: “Fraud is everywhere.”
Wealthy Congressmen want to cut benefits to the poor and give them to conglomerates
While Congress debates cuts in the federal food stamp program, it has been reluctant to make changes in the crop insurance program, despite several recent fraud cases. Ins agents OK fake crop losses so big farms can reap $millions. “Fraud is everywhere.”

Who owns your account now?
GMAC Insurance changes name to National General Insurance. Coverage or claims of existing policyholders will not be affected in any way.

American Fellowship Mutual Insurance has been declared insolvent. 

41 Watchung Plaza, B242
Montclair, NJ 07042

Friday, June 14, 2013

Avoid Wealth Killers

Avoid ALL the Wealth Killers. Accumulate $1,000,000 free of fees and taxes.
Use a tax-FREE account—tax-FREE—forever.
Buy low-cost mutual funds averaging 10-12%. Skip the fees!
Accumulating wealth requires that we avoid the advisor fees, commissions, charges, loads and ... taxes—theWealth Killers
We avoid fees by buying ONLY the financial services we need at a discount. We avoid taxes by using an IRS-approved account. Tax-FREE low-cost growth can provide 50% more to spend for the rest of our lives.
Warren Buffett pays only 17% total tax, Mitt Romney only 14%, and John Kerry only 13%. What is your total rate? 25%, 30%?
Start today in one hour. Don't let fees sink your ship.

Will you work part-time in retirement?
Even millionaires will have a hard time making ends meet. Standard advice is to take 4% of your bond-filled nest egg. However, at current low interest rates, there is a “72 percent probability that they will run through their bond portfolio before they die.” Many retirees refuse to count on stocks, even for part of their account so they are sure to have problems. 
Since the average family has a net worth of only about $11,000, it would seem that working in retirement is inevitable. That is the way it used to be before Social Security, which will be reduced in 20 years. Working longer before taking benefits can provide an extra 8% per year over your standard retirement age. Waiting to age 70 might give you 32% more than at age 66. Working also allows you to invest in stocks longer since you would have time for your portfolio to recover if it hit a snag. Investing your tax refund for 20 years could yield $225,000 tax-FREE.

Did your financial advisor recommend products because they had to?
A former J.P. Morgan broker alleges that the bank encouraged sales of proprietary funds by withholding commissions on trades of outside funds. The broker said that the trades were done to make his clients' portfolios more consistent with their objectives, but that his supervisors did not believe him and “implied he would be terminated.” The bank is not operating as a fiduciary—in the client’s best interests. You don’t need to get stuck with expensive products:

Can Facebook updates kill you?
A new study says that the most advanced hands free auto systems actually create a different, and worse, safety risk, by taking a driver’s mind, if not eyes, off the road. These systems let drivers use voice commands to dictate a text, send an e-mail and even update a Facebook page. Automakers say the systems not only address safety concerns, but also cater to consumers who increasingly want to stay connected on the Internet while driving. More than half of all new cars will integrate some type of voice recognition by 2019. New cars lose 40% of their value and can kill.

Health insurance price break?
Florida Blue, Florida's Blue Cross and Blue Shield, has filed to organize under a policyholder-owned, not-for-profit mutual insurance. In theory, this may reduce the price of plans because profit and bonuses usually cost an extra 20%. Buy only what you need:

When will you become a millionaire?
>Double your money every 7-9 years over time.
>Grow your wealth with NO taxes or commissions.
>Use 10 low-cost mutual funds earning over 10%.
>Use an IRS-approved tax haven to protect gains.
“My wealth has come from a combination of living in America, some lucky genes, and compound interest.” Warren Buffett
The wealthy become wealthy by buying assets that grow quickly. As Buffett says, they compound. Compounding is money earning money on its earnings every period. The wealthy stay wealthy by paying lower fees, charges, commissions and taxes.

Health clinics will replace doctor’s office in future
The number of U.S. retail health clinics is projected to double in the next three years due to the increasing demand of newly insured patients under healthcare reform, according to a new report. Clinics in pharmacies will add capacity for 10.8 million patient visits per year, compared to 5.1 million in 2011. According to Accenture’s analysis, the number of patient visits at retail clinics is projected to account for 10 percent of non-primary care outpatient visits by the end of 2015. Members buy only what they need:

More people afraid of being poor than dying
A study from Allianz showed that 61% of people were more afraid of outliving their money than they were of dying. 69% said they'd prefer a product that was "guaranteed not to lose value" rather than a product whose goal was "providing a high return." 80% preferred a product with 4% return and a guarantee against losing value over a product with 8% return and a vulnerability to market downturns. What people are describing is called Social Security. However, Congress is considering changing the factor of increases so benefits will lose value over time. Be prepared: Investing your tax refund for 20 years could yield $225,000 tax-FREE.

Can we beat Wall Street?
51 advisers out of more than 200 on the Hulbert Financial Digest's list who beat the market in the decade-long period that ended April 30, 2012, as measured by the Wilshire 5000 Total Market index, including reinvested dividends. Of that group, just 11—or 22%—have outperformed the overall market since then. That's no better than the percentage that applies to all advisers, regardless of past performance. Over the past year, on average, the group has lagged the Wilshire index by 6.2 percentage points. In other words,going with a recent market beater doesn't increase your odds of future success. You can beat all paid advisors:

SCAMS           “Deficits don’t matter” Republican godfather, Dick Cheney, 2002

Workers’ pensions raided by company VP—why we need regulation
Pension money was used to buy and lease company property, for illegal asset transfers, as payment for “excessive fees” and for keeping participants of the plan in the dark about plan assets, the DOL said. DOL investigators are asking the court to restore any plan losses. Feds sued to restore worker’s money.

Who owns your account now?
Symetra Financial said today it intends to sell its broker-dealer to John Hancock, a unit of Manulife Financial.

First Allied Securities to REIT mogul Nicholas Schorsch

41 Watchung Plaza, B242
MontclairNJ 07042

Friday, June 7, 2013

What did you do with Your Hidden Gold Mine?

What did you do with Your Hidden Gold Mine?
What did you do with your tax refund? Your refund is Your Hidden Gold Mine. The average tax refund is $3,022. Investing your tax refund can accumulate to $250,000 or more over time. Using a special IRS-approved Tax-FREE account, you can spend it all—no federal or state income taxes! Just think if you had done this earlier. Start mining your Gold Mine today:

Retirees wish they had started IRAs earlier
68 percent of respondents indicated that they regretted not having focused on establishing a self-directed IRA earlier in their retirement planning. Starting 5 years earlier, can double your eventual nest egg.

How will you make up for Social Security benefits when the end?
Feds say SS will exhaust its trust fund by 2033 at current rates. What is your plan? The power of compounding high earnings can replace your loss. Invest your tax refund or $250 a month and accumulate enough in 20 years to provide $1,600 a month for life.

Exercise for health does not have to take long?
Only 4 minutes of vigorous activity three times per week is enough to be fit and healthy, according to a new study. In financial services, it only takes 15 minutes to keep your low-cost tax-FREE account in healthy shape. You don’t need to waste time and money searching for the next “big thing” to win the Wall Street lottery. Fewer flexes of the financial muscle also works in investing. Automatic monthly contributions to your wealth account beats fast in and out trading. It is called “No Sweat” Investing for a reason.

FL fined Universal for mistreating customers over and over
Universal was mistreating customers and shifting profits to affiliates for years, according to an order released Thursday by the Office of Insurance Regulation. Universal Property and Casualty has been fined nearly $1.3 million for a laundry list of violations ranging from mismanaging its money to wrongfully denying insurance claims to failing to maintain appropriate records. Many of the violations are repeat offenses for the company, since regulators flagged much of the misconduct in 2005. After homeowners file insurance claims, the company scrutinizes the initial policyholder application to see if any mistakes had been made. If the homeowner failed to report a credit issue on the initial application, Universal denies the claim and cancels the policy retroactively.
FL has let this illegal activity go on for a long time. Wonder why?

CT law protects homeowners from being dropped
CT would make it illegal for home insurers to decline or cancel coverage -- or refuse to renew a policy -- based solely on losses from a tropical storm or other catastrophe. You can help protect yourself from being dropped for other reasons too:

Colleges giving discounts to the rich; not the needy
Welcome to the real world. “Colleges are always saying how committed they are to admitting low-income students—that they are all about equality,” a study says. “This data shows there’s been a dramatic shift. Thepursuit of prestige and revenue has led them to focus more on high-income students.” You can still get a good education with little debt:

LA rep cuts FEMA to stop flood insurance changes
Louisiana congressman wants to block increases to flood insurance rates by cutting off funding to the Federal Emergency Management Administration earmarked for implementing changes to the National Flood Insurance Program. LA will never need FEMA help again? The congressman will pay from his pension?

How couples, engaged to marry, can talk about money
A recent poll revealed that 68 percent of respondents held negative attitudes toward discussing money with their fiancé, with five percent indicating the discussion would cause them to call off the wedding. Members find talking goals leads to better money talk with spouse:

Did you get hit by a distracted driver?
40 percent of drivers text while driving, according to a survey of MA and CT drivers. If the guy who backends you is looking down while smashing your rear, you might mention it to the officer. 

Risk of dying from tornado
If you have wondered what is the chance of dying in a tornado or whatever, here are you answers:

SCAMS           “Deficits don’t matter” Republican godfather, Dick Cheney, 2002

USCT caught selling fake insurance
United States Contractors Trust for selling fictitious health insurance coverage to at least four Ohioans. USCT is not licensed to sell insurance in Ohio and has also recently been ordered to stop its unauthorized insurance business in South CarolinaNorth CarolinaVermontFlorida and Maine. USCT is targeting people over the Internet with pre-existing health conditions that are experiencing difficulty finding insurance. Desperate to secure individual or family health insurance, the Ohioans eagerly completed contact information forms on innocuous-looking websites. The victims were then called by a USCT representative and eventually signed-up for what they thought was insurance. The victims agreed to have the monthly premium, ranging from $200 to $550, debited from their bank accounts. The victims' first few claims were paid but thereafter they began to receive unpaid medical bills.

41 Watchung Plaza, B242
MontclairNJ 07042