Friday, October 25, 2013

Your advisor taking 63% of your net worth?

Your advisor may take 63% of your net worth!
Your prestigious investment banker may be using hedge funds that charge more but deliver less. In a study of the hedge funds used by Rhode Island’s pension money, they found that returns trailed a simple index fund.
“That little 2 percent fee will erode 63 percent of what you would have had,” John Bogle found.
Don’t be fooled by the hype of Wall Street’s marketing, no matter what “badges” they have: “We don’t need no stinkin’ badges.” Or fees, charges, commissions, etc.

Wall Street takes $50 billion of your money
Wall Street wirehouses destroy close to $50 billion of portfolio value each year with "unnecessary fees and depressed performance based on poor product choices, or both." That is the conclusion one Wall Street watcher found. LPL advisors will charge another 15-20 bp in January. It is the third straight year that LPL's 13,000 reps and advisers are facing some type of fee increase. You need the money more than they do:

 Do you really need LTC insurance?
The long-term care insurance industry did not have many carriers to begin with. And now the industry is shrinking, prices are rising and carriers are limiting their coverage. Contrary to sales hype, a large percentage of elderly people are in nursing homes for 90 days or less. Most policies have a 90 day waiting period. Today more than 85% of care is received outside of nursing homes, says Deb Newman, chairman of the Life Foundation. And people may not need as much long-term care insurance if they are being cared for at home. Alternatives may be right for you:

MA now allows insurance commissions AND fees on sales
Regulators have decided to let agents charge extra fees above the commissions on insurance sales in MA. Shop for discounts and ask about extra fees on all insurance every 2 years:

Our “representatives” who voted to destroy U.S. credit (raise rates)
The world used to think the “faith and credit of the United States” was more valuable than gold. Now we aren’t sure we will receive the SS benefits we paid for years ago:
Coburn (R-OK) Cornyn (R-TX) Crapo (R-ID) Cruz (R-TX) Enzi (R-WY) Grassley (R-IA) Heller (R-NV) Johnson (R-WI) Lee (R-UT) Paul (R-KY) Risch (R-ID) Roberts (R-KS) Rubio (R-FL) Scott (R-SC) Sessions (R-AL) Shelby (R-AL) Toomey (R-PA) Vitter (R-LA)
There were 144 in the House that voted to ignore their debts after they already charged them:
Was your “representative” one of them? Why are they bringing America down?

National debt has risen the greatest under GOP!
Deficits don’t matter” Republican Godfather, Dick Cheney, 2002
Reagan raised it 92%, Bush 1 raised 26%, Clinton up 1%, Bush 2 up 45%, Obama 36%.

ObamaCare exchanges working
Obama administration officials say about 476,000 health insurance applications have been filed through new "Obamacare" exchanges. From smoking-cessation programs to discounts on gym memberships and subsidized weight-loss plans, employers are increasingly making employee health their business. Systems link data from IRS, Social Security, Food Stamps, Medicaid, 10-20 insurers, plus state medical providers. No wonder it does not work right the first time.

“Inasmuch as ye have done it unto one of the least of these my brethren, ye have done it unto me.”
About 5.2 million Americans will be left without health coverage because of the decision by 26 GOP-run states that reject expanded Medicaid insurance programs for the poor with money provided under Obamacare. The Supremes ruled the states don’t have to follow the law. Will the uninsured move to states that offer insurance?

Health Exchanges: We only hear about the failures—never the successes
Elizabeth Watts of Kentucky had her application accepted at 12:04 a.m. on Oct. 1, making her one of the first to start the enrollment process. Because of a rare disorder, she has already had a heart attack and a stent put in place. She makes $220 a week working at a gas station. Previously, the only insurance she could find was for $300 a month, which was too much for her to afford. Using the exchange site, Watts learned she was eligible for Medicaid, the state-federal program for the poor that was expanded under the law and will cover most of her costs.
“It’s been such a relief,” said Watts, 31. The last time she saw her heart doctor, “it took 15 minutes and cost $160.”

Two Americas?
Will there be a civil war led by the gun-play rally at the Alamo:  "Come and Take It San Antonio!" Local police declined to enforce the law against the vigilantes waving guns in public. More kids bring guns and ammo to school and kill.

The Meek [Patient] Shall Inherit the Earth
Warren Buffett is patient. He compounded $6,000 from his paper route into $60 billion in his 60 years of investing. He credits compound interest for his success not “playing the market.” “My wealth has come from a combination of living in America, some lucky genes, and compound interest.” He said "The market is a way to transfer money from the impatient to the patient." It is hard to be patient and humble but it’s true—“The Meek [Patient] Shall Inherit the Earth”:

SCAMS           “Deficits don’t matter” Republican Godfather, Dick Cheney, 2002
Bush wars increased the debt by $4-6 trillion to $16 trillion. 1985 debt $3 T, same as 1945.

Our “representatives” avoid taxes on their slush fund incomes
60 Minutes shows how Congress people use campaign funds for tax-FREE lifestyles:

According to the National Employment Law Project's (NELP) newest report, because the fast-food industry pays its workers less than a living wage, U.S. taxpayers must foot the bill in the form of the public assistance programs these workers must use to get by. McDonald’s alone, according to the group, cost taxpayers $1.2 billion last year. Based on NELP’s estimates, 24/7 Wall St. reviewed the annual costs of providing public assistance to low wage employees working at the seven largest publicly traded fast-food companies.

41 Watchung Plaza, B242
Montclair, NJ 07042

Friday, October 18, 2013

Save $3,000 a year

Save $3,000 a year on your 401k or IRA
There are over 14,000 mutual funds, 1,000 ETFs and thousands of other places to put your money because managing money is very profitable. It costs managers very little to invest your money so your fees of 1-3% are almost all profit. Paying your fees, which increase every year, can take 40% of your nest egg’s potential total because of compounding. Paying fees every year can take $400,000 during your lifetime. Ask your HR or IRA person for the lowest cost stock or balanced mutual fund and save. Use our Guide to help you get what you pay for: 

Are hedge funds right for you?
Many hedge funds don’t report returns publicly so it is hard for investors to judge. The bulk of hedge funds are positively correlated with stocks making them a poor choice for an alternative to stock funds. However, they underperform equities in up markets and outperform equities in down markets, according to the work of Fung and Hsieh. In fact Warren Buffett made a bet with one hedger in 2008 that the S&P500 would outperform his 5 hedge funds in 10 years. So far, the Vanguard 500 is ahead, 8.69% to 0.13%.  
Patience NOT leveraged trading wins long term:

Even wealthy investors don’t know how much they are paying
Instead of making it clearer, regulators are allowing advisors, brokers and agents make the actual costs even harder to find. The industry is migrating to complex “hybrid” schedules of fees and commissions that blur the 1% clients think they pay into 2-3% they actually pay. “It's all disclosed, but it's hard to make the fine print any smaller.” And the wealthier a client is, the greater the opportunity for a financial institution to pile on fees by investing his or her money in private placements and partnerships that transact business with affiliates, industry observers noted. Investment bank clients with $10 million and up think they're paying 50 to 75 basis points for advice, he said. In truth, they are paying 300 to 400 basis points. Typically, this a partnership or hedge fund with a truck-load of documents that only lawyers read.
Switch and keep more by using mutual funds operated at cost:

ObamaCare program glitches like Apple’s and Mercedes’ glitches--NEW
A number of iPhone 5s owners are reporting that their new smartphones are displaying the feared "blue screen of death" (BSOD) after using certain apps, and then launching into a reboot. The contractors responsible for the exchange—CGI Federal for the website itself, Quality Software Systems Inc. (QSSI) for the information "hub" that determines eligibility for programs and provides the data on qualified insurance plans, and Booz Allen for enrollment and eligibility technical support—are scrambling to deploy more fixes. 
So sign up next month.
We never buy the new car model for the same reason. Mercedes-Benz recalls 11 different models due to software glitch ..
Health care costs rise at slower pace
In 2013, U.S. companies and their employees saw the lowest health care premium rate increases in more than a decade, according to an analysis by Aon Hewitt. After plan design changes and vendor negotiations, the average health care premium rate increase for large employers in 2013 was 3.3 percent, down from 4.9 percent in 2012 and 8.5 percent in 2011. Buy only what you need with discounts:

Getting over the learning curve
Young people are showing interest in buying insurance through Maryland Health Connection, the state marketplace created as part of federal health care reform, with those under 35 making up a third of those exploring the organization's website. Women tend to be better planners.

Teens need to use Buffett’s advice
Nearly half of teens (49 percent) report feeling pretty clueless about money management, according to a new poll conducted by Opinion Research Corporation. The survey also identified one of the reasons behind this lack of financial knowledge: 90 percent of teen respondents said they're not learning everything they need to know about money management. There are plenty of online resources:

Sandy storm victims still waiting
Joanne Gwin's home in the Silverton section of Toms River NJ was wrecked by the storm. Her insurance company paid $101,100 on a $250,000 policy, and she is appealing that decision, still living in a rental a year later. Many homeowners have had to use their own money because FEMA and insurers use time as leverage. This is another reason to have an emergency fund:

Could this government crisis happen again?
Yes. Your SS benefit may be delayed—there is no SS trust fund! One analyst says, assuming the borrowing authority runs out and lawmakers stay in their stalemate, a batch of Social Security benefits scheduled to go on Feb. 7 would likely be delayed by two days. A larger batch, scheduled for Mar. 1, would be delayed by 12 days. The longer the debt-limit impasse, the longer the delays.
Wait, Social Security brings in more money — in taxes and interest — than the benefits cost. How could it not have money to pay benefits?
Because lawmakers don’t treat Social Security, to borrow an old phrase, like it’s in a lockbox. They mix its tax receipts with income taxes, capital gains taxes and every other revenue source the government has. Benefits get paid out of that big mixed revenue stream.
You can bet Congress, President and Supremes will all get paid before we do. Big government contractors aren't likely to get hurt substantially in any event, as they have the reserves to make it through any payment delays unscathed. United Technologies had $4.9 billion in cash on its balance sheet, while Boeing had more than $14 billion in cash and short-term investments.
Emergency fund of 1 month’s expenses is necessary so you are ready Jan 15 for another shutdown.

SCAMS           “Deficits don’t matter” Republican Godfather, Dick Cheney, 2002
Bush wars increased the debt by $4-6 trillion to $16 trillion. 1985 debt $3 T, same as 1945. Only years of surplus—1998-2001.

41 Watchung Plaza, B242
Montclair, NJ 07042

Friday, October 11, 2013

Will Exxon survive?

Will Exxon survive without our subsidies?
Since our “representatives” have cut money to dead and disabled vets, I am assuming oil, gas, agribusiness and other subsidies have been cut. Although these political hacks get paid and can still go to their gym daily, it is interesting to see what they keep funding. Ranchers lost cattle in the storms but no insurance that we subsidize. Small businesses in every state are losing their high-season tourist profits since parks are closed. Yet the tea party says fight on. Who are they fighting again?
The enemy is us!

Are you wary to talk about money?
No surprise. Americans aren’t really sure whom to trust when it comes to financial advice, and that they are generally uncomfortable speaking about money, according to a new survey. The survey also found that 37 percent of respondents said they don’t like talking to anyone about their finances. In addition, 40% think financial advice costs too much, 33 percent said they don’t have time to find proper financial advice and 58 percent say they would prefer to get financial advice from a single place. A total of 43 percent of Gen Yers (under age 30) said they lack adequate retirement planning information, the survey found. Trust is the key and Madoff proved it works. Do it yourself is better:

Survey says homeowners’ premiums differ 188%
There was a 121 percent difference between the highest and the lowest home insurance quotes. asked 4 companies in 15 cities. One insurer's rate was nearly three times what another would charge. Shop and buy only what you need with discounts:

Can you save premium on your auto insurance?
Increasing your insurance deductibles from $250 to $1,000 could reduce your comprehensive and collision premium by as much as 40 percent. Increase your emergency fund with the premiums you save. Save another premium by dropping the life and accident medical coverage—you don’t need it if you already have life/health insurance. Use 15 other discounts from

Is critical illness insurance right for you?
Critical illness insurance: an insurer makes a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurance policy. The policy may also be structured to pay out regular income and the payout may also be on the policyholder undergoing a surgical procedure, for example, having a heart bypass operation. The policy language is very specific in order to limit payouts. Some pay the hospital directly. Typically, most procedures and illnesses are covered by your comprehensive policy so this policy is really a very expensive savings account. ObamaCare requires no-limit policies. Make sure you have a stop-loss in your comprehensive policy to limit your bills:

Washington could balance the budget if corporations paid their share
The top Fortune 50 firms have put $743 billion in profits in offshore accounts to avoid taxes here. While addressing the foreign tax havens has gained a lot of chatter, few elected officials have taken any action for fear of alienating corporate titans who can hold the key to national political careers. Critics say too many companies are using dummy corporations overseas to hide profits. Use your IRS-approved tax-FREE account too:

ObamaCare: a disaster?
Kentucky health officials thought they might get a handful of serious shoppers on Kynect, the new online insurance marketplace the state created under President Barack Obama's health care law. "We weren't even hopeful that a couple hundred people would apply," said Carrie Banahan, Kynect's executive director. By the end of the week, more than 16,000 Kentucky individuals and families had begun online applications to get health coverage next year.
And in Paul & McConnell’s state? But Cruz said Americans hate ObamaCare. California said 28,699 people were signed up in the state’s health-insurance exchange in the first week, while New York had more than 40,000 sign up. 

LA homeowners face increase
State Farm is raising Louisiana homeowner rates an average of 8.7 percent statewide for its nearly 308,000 policyholders. Time to shop discounts:

FL bans Texting
Florida is joining 40 other states in the U.S. where it is illegal to text and drive.
The ban is one of more than two dozen laws passed by the Republican-controlled Legislature scheduled that kicked in on Tuesday, Oct. 1. The prohibition on Texting while driving comes after several years of trying by legislators. Previous attempts stalled in the face of House Republican opposition, with conservative members worried about government intrusion into people’s lives. You can’t be stopped for Texting by itself but the law may deter accidents.

Most employers keeping current health plan while reform law plays out
Employers and brokers should ignore the rhetoric surrounding health care reform and focus on the law. Few changes in the law are expected until the January start date.

Food and safety inspections NOT done--BEWARE
The partial shutdown of the U.S. government has sidelined thousands of inspectors who monitor everything from air and water pollution to safety hazards at factories and the condition of nursing homes. Federal law requires agencies to retain workers whose jobs are critical. The cutbacks mean safety regulators can’t do routine inspections of high-hazard workplaces such as chemical plants, the Nuclear Regulatory Commission can’t conduct full oversight of the nation’s nuclear power plants and the main federal highway safety agency can’t probe a recent Tesla Motor Inc. electric-car fire.

US reneges on our promises to those who serve
Fisher House Foundation will take over our duty to provide the money to bury our soldiers fallen in war. Not considered an important expense, the Fed’s shutdown ends death benefit payments but keeps the Congress’s gym open.
How can this happen in America?

States shutting down—GOP losing support
About a third of the $1.7 trillion that states spent in 2012 came from federal sources, according to the National Association of State Budget Officers. Michigan is preparing to put as many as 20,000 workers on unpaid leave and eliminate cash and food aid to the poor. “You send people to D.C. to work,” South Carolina Governor Nikki Haley, a Republican who drew support from the Tea Party movement, said Oct. 8 at a luncheon for business and civic leaders in North Charleston. “You don’t send them to shut something down. So I am frustrated with both the Republicans and the Democrats. There are no saints in Washington right now.”

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

Workers laid off will get paid—what was the purpose?
Did not save money. Did not stop ObamaCare. Did cost small business that serve workers—lunch, gas, etc—millions per day.
A partial shutdown of the federal government will cost the U.S. at least $300 million a day in lost economic output at the start, according to IHS Inc. It depresses confidence and spending by businesses and consumers.
The Pentagon said on 10/5 it would recall the vast majority of some 350,000 civilian Defense Department employees sent home during the government shutdown, in a move that could greatly lessen the impact of the shutdown on America's armed forces.

UT pays $1.6M to open parks to support small businesses despite GOP
"Utah's national parks are the backbone of many rural economies and hard-working Utahns are paying a heavy price for this shutdown," Herbert said in the released statement. October is an especially profitable month for Utah's national parks, since optimal weather attracts a high volume of tourists. Typically, officials estimate a $100 million yield for the month.” UT will actively pursue timely repayment to state coffers. Rural voters still blame ObamaCare.

Scams by the best: notice these signs; ask for it in writing always

Who owns your account now?
Forethought Financial to Global Atlantic Financial

41 Watchung Plaza, B242
Montclair, NJ 07042

Friday, October 4, 2013

Financial Death Insurance

Financial Death Insurance: Avoid death by a thousand cuts in pay 
#Debt is a knife that is killing us slowly. 
#Indenture to our bank kills the pleasures of life. 
#Break the chains and gain financial freedom.
     Let's admit it. Most of us are spendaholics. 70% of us live paycheck to paycheck. Most of us will NEVER pay off our loans. We will die by a thousand cuts to our paychecks.
How can we get free of the Master or the VISA?
      Freedom from our chains of lifelong payments requires immediate action: cutting credit cards and amputation of some of our costly toys and habits. Going cold turkey is the only way to save your life in rehab. 
      When you have financial freedom, you can buy new toys using the profits from your investments. You can be building wealth in 24 months.
Right now, you are making other people wealthy from your monthly payments. Stop it! 

Need medical cover?
October 1, start your new year without fear of medical destruction. January 1 you can live knowing your family is covered for a catastrophic illness or accident. Your coverage is not capped, it can’t be cut if you get sick, you get free screenings, you don’t have to sit the emergency to get a flu shot and more. Here is the benefit list:

Your current employer insurance plan may NOT have the same benefits.
Plans existing before the new law in 2010 were grandfathered and don’t have to have ObamaCare benefits:

Estimate your least plan cost with subsidy:

ObamaCare myths: 

Best existing medical insurance plans CR reviews in your state:

Insurers are prepared for new business and competition—GOP wrong again
Based on the belief that most insurers were well-positioned and preparing for the expected impact of health care reform, A.M. Best Co. maintained its stable outlook for the majority of the health industry in January 2013. It appears that all the fuss over ObamaCare is just political BS. America’s insurers and drug firms are ready to serve more customers! GOP used to be in favor of everyone paying for healthcare:

MA has ObamaCare already thanks to GOP—what was learned?
Today, 97 percent of the state's 6.6 million people have it — the highest coverage rate of anywhere in America.

Living without a mortgage?
A novel way to beat the high cost of living—tiny home, on wheels—not a double wide. Small but cozy—cuts down on clutter. Built it yourself $24,000 or buy for $57,000:

Should you make a homeowner’s claim?
In some states, making a single homeowner's insurance claim raises the annual premium cost over 20%, according to a new report. The state with the highest increase is Minnesota (+21.2%), followed by Connecticut (+20.6%) and Maryland (+19.3%). Buy only what you need:

Will debt reduce your sunny retirement years?
A much higher proportion of homeowners over 65 are carrying mortgage debt compared with past generations. The Consumer Financial Protection Bureau estimates that 30 percent of all homeowners 70 and older have mortgages to pay off. In 2001, just 8 percent of owners 75 or older carried mortgage debt, according to the Federal Reserve’s Survey of Consumer Finances, published in 2010. Working longer may be the answer if employment is still possible. About 7.2 million Americans 65 and older were employed last year, a 67 percent increase from a decade ago, according to government data. The median 401(k) balance for households headed by people aged 55 to 64 who had retirement accounts at work was $120,000 in 2011, according to the Center for Retirement Research at BostonCollege.

Insurers misuse your credit?
State Farm has sent notices to nearly 700 customers whose accounts were handled by an after-hours call center employee who allegedly "misused" credit card information of at least 11 customers.

Is life insurance the best way to help your grandchild?
Many grandparents buy small $10,000 policies for their loved ones in the belief that this is the best gift for them. Consider what really happens. Most child policies are dropped. The hundreds of dollars spent are defaulted to the insurer FREE. Better to start a savings program for the child. Your gift to their Roth IRA can be worth $2.1 million by age 65. That is the miracle of compounding. And the child does not have to die to collect!

Have you been to Chicago lately?
Stay off the streets. Chicago now has highest murder rate. More than in Capone days, more than the Wild West days. They even shoot kids now! 
We need Wyatt Earp to ban guns in town like they did back then: 
After a decision by the Supreme Court affirming the right of individuals to own guns, then-Chicago Mayor Richard Daley sarcastically said, "Then why don't we do away with the court system and go back to the Old West, you have a gun and I have a gun and we'll settle it in the streets?" This is a common refrain heard in the gun debate. Gun control advocates fear -- and gun rights proponents sometimes hope -- the Second Amendment will transform our cities into modern-day versions of Dodge.
Yet this is all based on a widely shared misunderstanding of the Wild West. Frontier towns -- places like Tombstone, Deadwood, and Dodge -- actually had the most restrictive gun control laws in the nation.
In fact, many of those same cities have far less burdensome gun control today than they did back in the 1800s.
Towns banned guns for one reason back in the 1800s—guns kill people! People can't always control their emotions. 

Did you inherit an annuity?
IRS ruled that you can transfer the annuity you inherit to another insurer so you can receive more. Rather than being bound by the terms of the decedent’s contract, beneficiaries may be able to exchange inherited contracts for newer, higher paying contracts, according to PLR 201330016. Such an annuity might have lower costs, come from a stronger company, offer better investment options, or have desirable features. A PLR only applies to the taxpayer who made the request, but it also shows how the IRS regards a certain issue. Thus, an exchange for a higher-paying annuity may be a realistic option for beneficiaries. See your options

Only poor people are hurt by GOP shutdown
Government employees but not Congress or aides, Women Infant Children, Veterans, Small Business loans, tourism and business that serve them, Head Start, SS disability hearings, cancer cure program testing, food safety, flu shots, etc. Congress and their staffs will get paid. Military and weapons makers will get paid. Anyone they decide is 'essential' is paid but the rest of workers are NOT essential.

Millions of Poor Are Left Uncovered by Health Law—Two Americas?
If you and your neighbors elected a GOP government recently, you will likely NOT have health care available. Those that need it the most are denied the opportunity to buy coverage. America is NOT the land of opportunity GOP pretends. Only the rich can afford coverage in the 26 states ruled by GOP—60% of American working poor.
“How can somebody in poverty not be eligible for subsidies?” an unemployed health care worker in Virginia asked through tears. Before she lost her job and her house and had to move in with her brother in Virginia, she lived in Maryland, a state that is expanding Medicaid. “Would I go back there?” she asked. “It might involve me living in my car. I don’t know. I might consider it.” Will the poor have to move to get covered?
Two Americas: Banana Republic or Civil War?

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

Educated are more susceptible to scams than others
Recent survey found that more than 80 percent of respondents were approached with potentially fraudulent offers and that 40 percent of all respondents were unable to spot “classic red flags of fraud” — implicit warnings that they were in danger of being fleeced. The survey showed that the highest earners — those with household incomes of $100,000 or more — found the pitch more appealing than those with lower incomes. And those with more education were generally more credulous, too. The greater their education, the more likely they were to invest in potentially fraudulent schemes. They are overconfident and had the money. Scammers on work for people with money.

Tracking of Americans through friends’ network allowed
Government can now keep tabs on all your friends and networks without court order. You don’t even need to be in touch with foreigners. OKed by Supremes too:

Allstate reneges on promises
Allstate retiree Garnet Turner is suing the insurer to protect the life insurance benefit he claims he was promised. 

41 Watchung Plaza, B242
MontclairNJ 07042