New study of wealthy people’s habits
They establish a standard of living that brings happiness but doesn't make them feel that they have to go bigger the next year. A long-range view helps quell spending urges that derail financial plans, says advisor Lisa Leonard. The wealthy "generally have an idea of where they'd like to be in two years, five years, even 10 to 20 years, and they make sure they don't outlive their assets," she says. "If they have $2 million, they don't think they can go out and buy a Lexus." Perhaps they buy a used one since they hate to lose value. They have many types of assets with low fees (index funds) and keep assets inline with goals. They invest to the max for employer pension matches. “It’s free money.” Roth IRAs produce tax-FREE wealth.
All have a financial plan so they can get where they want to go. “How else will I know?”
They use Vanguard’s Top Ten: http://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X
Most people can save $3,000 every year on financials
My clients have convinced me that almost everyone can save at least $3,000 a year by buying only the financials they need. Problem is, most people don't find out what they really need. Instead they rely on the salesperson to tell them. Well, you know what the barber said when asked, “Do I need a haircut?”
Now you can find out what you need! It is easier to find unbiased information about financial services. We can learn how to buy exactly what we need not what the salesperson wants to sell. However, some people don't shop for the best value because they don't think they can save much. They think there is not much difference between one company and the next. Example: one sells exactly the same $300,000 term life for $983 versus $384.
Buy only what you need and save.
Panic from 2007 hurt workers retirement
The workers who stayed in their 401(k)s from 2007 through 2012 had an average balance of $49,814 at the end of the period, 67 percent higher than the average of those who did not, the report concludes. The study also found that older 401(k) participants ran away from equities more than younger workers. The share of 50- and 60-somethings with more than 80 percent of their 401(k)s in equities declined from 32.6 percent in 2007 to 23.5 percent in 2012, while the number of younger stock lovers dropped much less, only from 60.2 percent to 57.8 percent. Young have more time to recover loss! From 2007 to 2012, the share of participants with target-date funds in their 401(k) portfolios rose from 27.6 percent to 32.1 percent. Set your 401k correctly: http://www.amazon.com/Tune-your-401k-EARN-Tax-FREE/dp/1490591028
401k plan with high fees being sued—beware employers!
Retirement plan participants at Lockheed Martin claim that the firm breached its fiduciary duty to its participants and their beneficiaries in a variety of ways, including assessing fees that were “unreasonably” high. As a class-action suit, this might have impact on your 401k plan. Fees of 2% can take up to 63% of your nest egg over time. Compounding works for the plan advisor just as much as for you. If you earn 5% and you pay 2% and inflation takes 3%, guess what, you don’t get much to live on.
You are better off on your own: http://www.amazon.com/The-Working-Millionaire-Self-insure-Self-fund/dp/1460945484
Annuities NOT appropriate for all
Many investors consider using annuities for retirement, but far fewer buy them, according to a Phoenix Insurance. Seventy-one percent of respondents said they would consider buying an annuity, citing reasons such as securing a predictable monthly income, leaving an inheritance and meeting chronic care expenses. However only 20 percent said they were actually planning to use them.
There are more flexible low-cost alternatives:
GOP crazies sound like 1950’s McCarthyism
Michele Bachmann, on radio, accuses Obama: “President Obama is trying to bring all of those foreign nationals, those illegal aliens to the country and he has said that he will put them in the foster care system,” Bachmann explained. “[W]e can’t imagine doing this, but if you have a hospital and they are going to get millions of dollars in government grants if they can conduct medical research on somebody, and a Ward of the state can’t say ‘no’ — a little kid can’t say ‘no’ if they’re a Ward of the state — so here you could have this institution getting millions of dollars from our government to do medical experimentation and a kid can’t even say ‘no,’” Bachmann said. “It’s sick.”
Bachmann also says immigrants might bring Ebola to US
“People from Yemen , Iran , Iraq and other terrorist nations are making their way up through America’s southern border because they see that it’s a green light, they can easily get in,” Bachmann warned. “Not only people with potentially terrorist activities, but also very dangerous weapons are going to cross our border in addition to very dangerous drugs, and also life-threatening diseases, potentially including Ebola and other diseases like that.”
McCarthyism had the same theme: foreigners infiltrate US with Executive’s knowledge to ruin US status quo. Lies that rallied the base were eventually condemned.
Thanks to Supremes’ Citizen United, any corporation can buy influence in state judge elections now. So Koch Bros’ $$ billions are telling voters in many states that the Dem/liberal incumbents are “liberal on crime and Obama agenda.” This is sure to sway wary voters since any measure with that name is dead on arrival. In fact, Dem judges OK all crime death sentences. “We don’t need the facts. The TV adman told me so.”
GOP sues Obama for taking action then asks him to take executive action!??
Boehner after he failed to pass House support for border laws:
This situation shows the intense concern within our conference – and among the American people – about the need to ensure the security of our borders and the president’s refusal to faithfully execute our laws. There are numerous steps the president can and should be taking right now, without the need for congressional action, to secure our borders and ensure these children are returned swiftly and safely to their countries. For the past month, the House has been engaged in intensive efforts to pass legislation that would compel the president to do his job and ensure it can be done as quickly and compassionately as possible. Through an inclusive process, a border bill was built by listening to members and the American people that has the support not just of a majority of the majority in the House, but most of the House Republican Conference. We will continue to work on solutions to the border crisis and other challenges facing our country.
Then, Boehner and House went on paid vacation without taking action.
Can you survive a crash in a small car?
Tests of crash dummies show that few small cars protect you well.
Many drivers still don’t have car insurance … so keep away from them?
The estimated percent of uninsured motorists is highest in Oklahoma (26 percent) and Florida (24 percent), with the total number of drivers without insurance highest in California (4.1 million) and Florida (3.2 million).
Insurers want to use your phone to “know” your habits
Progressive and Allstate are working on apps to measure your movements. Drivewise, an Allstate app that monitors and gives feedback on driving behavior, is currently being tested on drivers in Montana , Nebraska and New Hampshire . Progressive’s app has been tested in some states, but the company has also been talking to various car manufacturers directly about installing software that can track and make judgments on driving, says David Pratt at Progressive, which aligns rates with behavior.
Use ALL your discounts: http://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634
Shoot and ask questions later is the lesson?
Theodore Wafer, a suburban Detroit man who shot an unarmed teenager on his porch, is now in the hands of the jury. Wafer, 55, is charged with second degree murder and manslaughter for shooting and killing Renisha McBride, 19, last November. He explained it was self-defense and accident—Not clear. If you need help at night in Detroit don’t go to homes.
SCAMS Why are we still paying $700 Billion a year for WWII deployments?
We are paying for 164,253 of our active-duty armed personnel to be in 150 countries around the world. We have about 50,000 in Japan and 50,000 in Germany .
Are we preparing for WWII again? There are 1,208,083[1] armed personnel in the United States . Our taxes pay for about HALF of the WORLD’s military expenditures every year. We have wasted $398.6 billion so far on the F-35 program—they can’t fly safely.
We just can’t afford to pay for everyone else’s defenses anymore.
Japan, Germany and S. Korea can pay for its own defense.
Big Banks still “too big to manage”
If we have another financial crisis, the largest banks will need a taxpayer bailout again. They refuse to keep enough capital from their gargantuan profits to be safe. And why should they—cut benefits and bonuses—since they know that “what is good for JP Morgan is good for America .” Dodd-Frank was just a smoke screen since its regulations were never written in plain English. Besides, the regulators come from the same Street. Hey, Don't worry be happy
Walgreen puts hold on renouncing US citizenship
Treasury is urging Congress to take action to limit tax (evasion) inversions. Good luck with that. Not waiting, it is exploring ways to unilaterally block a surge of U.S. companies shifting their headquarters overseas in search of tax savings. So far IRS saw 47 companies move their “tax-reporting” address abroad. Roughly 12 more are pursuing shifts, including Abbvie, Medtronic and Mylan. President Obama calls evasion "gaming the system" while eroding federal tax collections and forcing other American taxpayers to make up the shortfall.
With Supremes decision on unlimited corp money in elections, it is possible for a foreign government to buy an election to sway US foreign policy. EG: Saudi oil money uses dummy corp to give $ billions to Paul-Jindal ticket.
Who owns your account NOW?
Continental Assurance Company to a subsidiary of Wilton Re Holdings Limited.
Premier Access Insurance to Guardian Life
IAN
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