Friday, December 25, 2015

Did your “representatives” give YOU a tax break?

Did your “representatives” give you tax breaks like those for the wealthy?
GOP says that the package of tax breaks “will grow our economy and help American taxpayers keep more of their hard-earned dollars” while providing “certainty to American taxpayers.” This is the old “trickle down” strategy. Business got research and development tax credit and heavy machine deduction to $500,000. A business can deduct 50% of new equipment and vehicles in 2016. They got many other tax breaks.

Succeed in this angry American decade
Many Americans are angry with their situation just like during the 30’s Depression. Leaders are competing for support by driving wedges between us. We are unhappy that our labor intensive jobs have flown. We are unhappy that we are stuck with wages that don’t increase with our productivity. The wealthy now own 90% of assets. 20% of children live in poverty. Our middle-class is shrinking while new entrepreneurs make a fortune overnight. America has swung to its individualistic right. The trust of an earlier period of the American Dream for all is shrinking fast. Demagogues appear in times like these because they offer simple solutions—target one group and control the angry mob as leader. Leadership in one man (usually) allows power to corrupt absolutely. But in our short history, we have voted for a Teddy to breakup corporate power and FDR to fight right-wing extremists overseas. Most of us do not like giving all the power to one person like our ancestors did.
A new poll shows that the majority of us do NOT feel comfortable with a group hater as President. We prefer a positive hopeful future for all of us even if it isn’t possible.

27% student loans owed by seniors are in default—Solution?
The amount of education debt held by people 65 and older has risen from $2.8 billion in 2005 to $18.2 billion in 2013. Gov guarantees the loans and lenders can collect our Social Security benefits FOREVER. There is no time limit and no bankruptcy discharge. Bankruptcy judges have said that to get education loans wiped away, borrowers must show their entire lives would otherwise be characterized by a “certainty of hopelessness” or that repaying the debt “strips [the debtor] of all that makes life worth living.” Federal rules allowing education debt collectors to auto-dial borrowers’ cell phones. Parents become indentured servants for life. See discharge process:

Why are women better investors than men?
New survey says men lost 1.8% while women only 1.4% in 2015. They become rich faster than men now. Over time, both would be better off NOT trading the study shows. Trading assumes we know or we think our broker/advisor knows what will happen in the future. Greed and fear are Wall Street’s tricks to separate us from our money like fortune tellers. Buffett says his holding period is forever. 257 hedge funds closed this quarter because they lost so much money. The record is clear: earn 3.79% with managed account or 11.06% with index funds. If we just held the whole market and didn’t try to time the ups and downs, we could earn 10-12% a year. This is the record you could have:
2014    13.80%
2013    32.43
2012    15.88
2011      2.07
2010    14.87

Why let your broker/advisor take 2/3rd of your returns?
You put up the money and take all the risks. You should earn the full amount of return the market provides. Your broker has no special information or technical tools to win or they would own their own management fund. As a sales person, their job is to sell you for a profit, just like all salesmen. Successful investing is about putting your money to work not playing poker or the slots. It takes a lifetime to build a successful business. Why would investing be any different? Let your money work and compound for you. Over time your $250 a month compounds to $1 million. Earn 11% not 3.69%:

Which vehicles last at least 10 years?
Sad but true that all 10 have foreign labels but are made by American workers. American management seems to have hard time managing the process of making reliable cars. Perhaps their top brass does not stay long enough in the job or wants more money or wants to build a corporate empire or run the company into bankruptcy or sale in order to cancel labor contracts or run up the stock price by cutting R&D so the options have more value or retire with a $1 million pension while cutting everyone else’s pension and health care benefits. It is amazing that the best cars are made by the management that takes the fewest rewards. Bottom of the reliability scores: Jeep, Dodge, Ford, Chrysler
Compare management of Chrysler now Fiat, GM now new GM, to Toyota and Honda.

Does our President need to be rational and truthful?

Cruz on budget: "It was Republican leadership playing Santa Claus to the lobbyists”
Trump: “while I hate some journalists, “I’d never kill them.”
            “There is no proof Vladimir Putin has killed enemies or journalists.”
            Putin is a “strong leader” Putin thinks Trump is “brilliant”
Clinton: “Trump is ISIS best recruiter” No comment on Trump vulgarity—IA take note.
            “I will shut below average schools
Christie: "does anybody really care if Hillary apologizes to Donald or vice versa”?
Carson: “I never saw a body with bullet holes more devastating than taking the right to             arm ourselves away.” Carson never lost a child in gun fire.
Jeb: “I am more comfortable ranking lower in the polls because it means less scrutiny.
Graham: I told them how to fight ISIL so now I’m done.
Sanders: “Sad reality is Wall Street regulates the Fed.” Fed ready to bail them out again.

New poll: Americans oppose Donald Trump’s plan to ban all Muslims from coming to the country by a more than 2:1 margin (66 percent to 27 percent). The partisan divide on the issue, however, is sharp. Democrats would accept Syrian refugees (74-22) while Republicans (82-13) and independents (51-42) would ban them. All three groups oppose barring all Muslims: Dems (79-18); Republicans (51-41) and independents (67-22). A majority (55 percent) of Americans believe domestic extremists are a bigger threat than foreign radicals, while 55 percent think Islam is a peaceful religion. Americans also support (50-42) sending ground troops to fight ISIS.

Regulators are the only protection we have since we can’t sue anymore
            “It is nearly impossible for one individual to take on a corporation with vast resources.”
               Supremes stop us from suing—State courts no longer available to sue corporations!
Lisa Lewis, former Fidelity broker, caught check-kiting from client accounts.
Olympus Corp’s duodenoscopes found to kill 21 patients but not disclosed to anyone.
LifeLock caught (AGAIN) promising what nobody can deliver—ID security
VA revokes 25 state’s gun permits to fugitives, stalkers and drug dealers, etc.
Wall Street could lose $19 billions if Fiduciary Rule to protect us becomes law. Currently             savers are losing $ billions with high fees and bad sales practices.
Honda air bags kill 9: why do we leave testing to the companies themselves?

We need regulation—GOP is wrong—companies would not fix bad products on own

Is a SBLOC right for you?
Securities-Backed Lines of Credit are being marketed by your broker/advisor but regulators are concerned that when your portfolio loses value, you may have problems with repayments. Your loan may be called at any time so the extra capital may not be worth the risk especially if you are using assets you expect to grow long term. On the other hand, if you have a sure thing—an investment you know will perform (?) and you pledge a small part of your portfolio, the low fixed interest rate on these loans may be perfect. Compare a 15 month 0% balance transfer loan from your credit card. A variable rate SBLOC may add another level of risk not worth taking.

Future of computers, internet and work?
Many are already doing everything online on their smartphones, so why pay for home broadband or landlines? Cable firms have a problem. Where will we do work if we are already on call from employers via phone. If all major computing is done in cloud, why keep data on separate drives? We won’t need a wallet or purse for creds/info. Work will be running machines that actually do the physical stuff except personal services like plumbers, electricians and movers. Most of us find answers online now—diagnose illness, home and car repairs/problems/purchase, work issues. We buy almost everything online from Amazon, et al so retail stores become rare treat. What change is next?
Already, some create their own financial system to produce tax-FREE income:

Special Inspector General John F. Sopko has spent years documenting waste, fraud and abuse in the U.S. military’s efforts to rebuild war-torn Afghanistan. We have spent $110 billion on reconstruction projects in Afghanistan. When adjusted for inflation, that total exceeds the value of the entire Marshall Plan effort to rebuild Western Europe, WWII.
=More than $8 billion in spending on counter-narcotics efforts in Afghanistan that have “failed by every conceivable metric. Afgans grow poppies like we grow corn.
=The purchase of nearly $500 million worth of airplanes that never could fly and had to be turned into scrap.
=Construction of a building that literally began to melt when it rained.
A $500,000 health clinic that lacked water and electricity. Newborn babies had to be washed in a nearby dirty river.
= Biden promised an additional $190 million to fight corruption in Ukraine's law-enforcement and reform the justice sector. 
=Navy's new $362 million ship broke down and had to be towed--lasted three weeks.
=VA keeps paying managers found guilty of retaliation on workers who complained.
=federal workers, who will get a 1.3 percent raise in 2016 but NOT for SS recipients???
=$400 million for new FBI HQ in VA or MD.
=IRS stopped from limiting political gifts from non-profits so rich can buy more votes.
= Military-industrial got biggest bump. For the first time since Cold War, contractors are sending tanks, fighting vehicles and heavy weapons to several Baltic and eastern European countries. Europe can’t defend itself? Putin responds with more nuclear weapons. We have 50,000 ‘active’ military that can’t deploy but are being paid. More =Nat. Guards needed to fill in. Civilians hired to steer drones from Las Vegas and get bonuses.  
=US just killed ten Iraqi soldiers by mistakenly bombing own lines near Falluja
=FL postal worker landed his gyrocopter at Capitol proves $3 billions wasted

David J. Homan, Wells Fargo Advisors, Saginaw stole $513,000 from elderly by fraud.
Over 3,000 prisoners were mistakenly set free early in Washington state computer bug.
Lottery fixed in IA, CO, OK, WI by guy in charge of security—Nice job.
Wall Street claims average investors will be harmed by new “do the right thing” Rule.

Indiana will allow alcohol sales on Christmas for the first time – IN turning Left?
KY GOP cancels voting rights of more than 100,000 nonviolent felons.

Who owns your account now?
Deutsche Bank private-clients to Raymond James, 
Nomura Holdings, Japan, agreed to pay CIBC about $1 billion for its 41 percent stake in money manager American Century.

41 Watchung Plaza, B242
MontclairNJ 07042

Friday, December 18, 2015

GOP becomes "spend and tax later" party

GOP becomes the ‘tax and spend’ party when in power
The new budget of $800 million is a violation of the GOP's usual policy of requiring any new spending to be paid for with cuts to other programs. Instead the party approved the tax breaks without offsetting the reductions elsewhere in the budget. Rich and powerful win tax breaks and DEMs can’t stop it. "Congress' capacity to govern remains disturbingly dependent on adopting measures the country cannot afford," Jason Grumet, president of the Bipartisan Policy Center, said in a statement. "This agreement would increase the deficit by roughly $800 billion, which is deeply troubling and weakens our nation future." GOP can’t resist spending on favorites!

Is being really really rich right for you?
Besides living out your fantasies, being rich can cost you a lot in many ways. You may become a nervous wreck. You may lose many of your true friends. You may lose a lot of money like these wealthy ones. Here are the mistakes many make: Too much of their money was tied up in one investment and too little of their money was in cash or some other liquid investment. And too often, they didn’t think enough about the likelihood that something could go wrong. When you are rich you think you are in control but life happens and oil drops 50%, mortgage finance explodes, restaurants get e-coli. Your fortune may come from a trend that has changed. By the time you realize you are not a god and must diversify like everyone else, it is too late. Trump has gone bankrupt many times because he did not see change coming. He had brick and mortar gambling and endless golf courses. But gambling went online and golfers are playing other games.

Is a mandated retirement fund right for you?
There are many financial experts that think the current 401k voluntary savings plans are inadequate for our futures. They say some us do not save enough, do not invest correctly, and do not maintain the investing routine long enough. Some think that wages are too low for savings. Others think we need to go back to the old employer pensions. Our government just started a new savings plan for workers who don’t have a 401k called myRA accounts. Our government is fighting Wall Street to institute the fiduciary rule that requires retirement account sellers to provide unbiased options. Of course the GOP Congress will never agree to any mandate so the best alternative is a massive financial education program in high schools. We could then choose our best option—a low-cost IRS-approved retirement account that provides income tax-FREE.
We have it already—the Roth IRA. We just don’t learn about it before we start work.

How the new fiduciary rule helps you and hurts Wall Street
DOL’s proposed rule change would allow advisors to continue receiving payments that could create conflicts of interest if they meet the conditions of proposed exemptions to the rule. But opponents of the proposal claim the rule would create costly and complex hurdles that could make commission-based individual retirement accounts economically unfeasible to serve. Yet we know low-cost index funds beat high-cost funds every time.
“It will drastically change how investment product distribution is done, how advisors are paid and how individual investors are served,” Michael Wong, Morningstar equity analyst and lead author of the report, says in an interview. The report says the proposed rule would create winners and losers in the financial services industry based on investment product choice and business models. 
You would be the winner and your commission/fee advisor would lose:

The top reality TV Show in AmericaNew show on Dec 15!

Does our President need to be rational and truthful?

            NO, the new GOP is entertainment like Apprentice—fake calamity for money!

Trump: I did not get $5 million for debate “show” but wait till I’m Prez.
             “I have far better judgment" than Cruz who is a maniac. I’ve got Putin’s vote.
            Will Canada take Muslims, immigrants, other non-Trump voters?
Christie: “I don’t believe Trump is a bigot.” “If your eyes are glazed over like mine”
            I am ready to shoot Russian planes and work with King Hussein (he died in ’99).
Cruz: I am a Flashdance Maniac. "Political correctness is killing people"
            “Donald Trump has made Cruz mainstream,” according to Heller (Nev).
Rubio: “That led to the chaos which allowed ISIS to come in”
Jeb: “Donald gets his military advice from "the shows"’ on Sunday TV
Carson: Let’s have a moment of silence for victims in San B. terrorists.

Hillary: Corporations have to pay taxes too no matter where they have offices. 
Obama: “We dropped 9,000 bombs last month and killed 7 ISIS leaders

GOP Koch Bros pay for elections but want to revive American Dream
Wealthy conservatives say poor people can learn to get by without the government. They are willing to spend money to prove it. Koch has called for the end of Socialism for the Rich in the past. However they continue to pull down government subsidies for many of their businesses. Talk is cheaper than hiring and training the poor. Koch tells Justice it is OK to reform sentencing criminals.
DEM Warren Buffett says the income of the wealthiest Americans has increased sevenfold but their tax rate has fallen to 16.7 percent. 
Build your tax-FREE fund with Buffett’s strategy:

Florida Key streets flooded for months; GOP says does not happen
Streets in the lowest-lying neighborhoods stayed inundated for nearly a month with 16-inches of saltwater. By early November, the roads finally dried up. But unusually heavy rains in December brought it all back again.
"Like a sewer," said Narelle Prew, 49, who has lived for the past 20 years in her four-bedroom home on Adams Drive, a waterfront lane lined by boat docks. "So far we have not been seeing buyers being concerned with sea level rise, which I'm a little surprised given all the media attention it has garnered lately," said Lisa Ferringo, president of the Marathon/Lower Keys Board of Realtors. Most are Republicans who say no warming.
A $400 million stormwater pump program planned for Miami Beach. Will GOP see man-made?

Can we help you with a financial problem?
We now have solutions to many of your questions about finances. Written by some of the best minds in financial services—from mutual funds and retirement income to long-term care insurance to best term coverage. See
Our authors can answer questions by email. E-mail:

Is investing in stocks after you retire right for you?
Many advisors and their clients seem to think that you should only hold fixed income accounts the day you retire. 50 years ago this was a wise decision because people did not live long after age 65 and brokers feared the client would complain about portfolio volatility. But ONLY stocks beat inflation--not bank CDs or bonds. One of you may live another 30 years so your liquid assets will be worth HALF after 20 years or so. If you can live on HALF your portfolio, cash and its equivalent are great. Most of us cannot afford this so we go with Warren Buffett’s advice. He made over 90% of his money AFTER age 50 in stocks.

Is your retirement plan rated in the top 30?
Large corporate 401Ks dominate the list including the oil and pharma companies. The best plans match your contributions and provide low-cost investment options. Cost is best predictor of investment success. If you do not receive a match from your firm, you may be better off starting your own tax-FREE plan. If you contribute $250 a month to a low-cost stock index fund like Vanguard’s 500 Index, you have a good chance of hitting $1 million by retirement. Using the tax-FREE plan, you can spend it all—no income tax on your 401K which could mean no income tax on your Social Security benefits.

Are student loan repayments a challenge?
Now you may qualify for lower payments. The newest income-driven repayment plan, Revised Pay As You Earn (REPAYE), became available to anyone with federal Direct student loans. Borrowers are now able to cap their monthly payments at 10% of their discretionary income, regardless of when they borrowed.

Regulators are the only protection we have since we can’t sue anymore
            “It is nearly impossible for one individual to take on a corporation with vast resources.”
               Supremes stop us from suing—State courts no longer available to sue corporations!
VW said manipulated software since 2005—what else did VW lie about?
GOP: pollution OK—Paris agreement "is subject to being shredded in 13 months."
CDC: doctors need to stop giving opioids--study says they increase deaths 16%.
EZCORP, a small-dollar lender caught for illegal debt collection like home visits.
Atlantic Asset Management caught putting “its own interests ahead of client interests” 
CarHop caught giving inaccurate negative credit information to bureaus on buyers.
T3Leads caught putting borrowers at risk of harassment and deceit.

We need regulation—GOP is wrong—companies would not fix bad products on own

Is the expensive but unreliable vehicle for you?
Even if you pay a lot for a vehicle, you may NOT get what you paid for. As with financial products, you don’t always get what you pay for. Annuities are expensive income accounts you can buy for 0.05% not 3.5% a year. Famous name-brand vehicles may be unreliable. For instance, Audi RS6 costs about $150,000 but is still has VW issue. Mini Cooper is cute but BMW left the quality behind. Mercedes-Benz CLA 250 is just cheap—rattles and squeaks. Volkswagen Beetle has harness problems just like my 1985 VW Golf did. Chevrolet Silverado is popular but suspension sucks just like the $100k Mercedes-Benz S-Class. Infiniti Q50 is $37 grand of problems. Unreliable group ‘winner’ is VW with its illegal software for diesels. Best cars:

Health care mandate penalties
“It’s important to remember that the final deadline to sign up for 2016 coverage through is January 31. If you don’t enroll by then, you could have to wait another year to get coverage and may have to pay the fee when you file your 2016 income taxes.” the CEO said. This year’s fee for no coverage is at least $695, or 2.5% of their annual household income for 2016.

Our ‘reps’ give big business a boost—HALF budget spent on killing machines!
“Major defense contractors Raytheon, Oshkosh, and Lockheed Martin assured investors at a Credit Suisse conference in West Palm Beach (last) week that they stand to gain from the escalating conflicts in the Middle East. The good news for the contractors is the latest budget deal authorizes $607 billion in defense spending. The budget deal in the making requires serious thought but the deficit will still rise because Bush tax cuts are not paid for and more companies are avoiding taxes. We sent guided missile frigates to Taiwan. 
GOP spends and raises taxes later!
Avoid paying for Washington’s bad judgment:

Special Inspector General John F. Sopko has spent years documenting waste, fraud and abuse in the U.S. military’s efforts to rebuild war-torn AfghanistanWe have spent $110 billion on reconstruction projects in Afghanistan. When adjusted for inflation, that total exceeds the value of the entire Marshall Plan effort to rebuild Western Europe, WWII.
=More than $8 billion in spending on counter-narcotics efforts in Afghanistan that have “failed by every conceivable metric. Afgans grow poppies like we grow corn.
=The purchase of nearly $500 million worth of airplanes that never could fly and had to be turned into scrap.
=Construction of a building that literally began to melt when it rained.
A $500,000 health clinic that lacked water and electricity. Newborn babies had to be washed in a nearby dirty river.
= Biden promised an additional $190 million to fight corruption in Ukraine's law-enforcement and reform the justice sector. 
=Navy's new $362 million ship broke down and had to be towed--lasted three weeks.
=VA keeps paying managers found guilty of retaliation on workers who complained.
=federal workers, who will get a 1.3 percent raise in 2016 but NOT for SS recipients???
=$400 million for new FBI HQ in VA or MD.
=IRS stopped from limiting political gifts from non-profits so rich can buy more votes.

French teacher made up story of ISIS attack—more to come?
Terrorists close 900 LA schools--more than 700,000 students at home. "These threats are made to promote fear...we can not allow us to raise the levels of fear," NYC police said.
            Florida Atlantic University fired a professor who called the shooting at Sandy Hook Elementary School an elaborate hoax. James Tracy, associate professor has written that although the news media reported that 26 people died in a mass shooting at the school in NewtownConn., the incident was staged.
Pharma millionaire raised price 5,000% then cries when his lawyer does same.

41 Watchung Plaza, B242
MontclairNJ 07042