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: http://www.amazon.com/Get-What-You-Pay-For/dp/1492384100
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:
http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137
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: http://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083
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. http://www.amazon.com/Ensure-Your-Financial-Health-Wealth/dp/1466388293
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: http://www.amazon.com/Financial-Literacy-Steps-Success-Money/dp/1491044616
Sandy storm victims still waiting
Joanne Gwin's home in the Silverton section of Toms
River NJ
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.
IAN
41 Watchung Plaza, B242
973.746.2014
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