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

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MontclairNJ 07042

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