Sunday, July 31, 2016

Is your employer robbing you of your retirement money?

Is your employer robbing you of your retirement money?
More large employers (who don’t need the money) are taking your future nest egg assets.
Employees of New York Life are suing for all the extra fees they were charged by their employer’s mutual fund options. Employers are supposed to do the right thing in picking your nest egg options. New York Life’s own index fund charged 35 basis points. That is seven times what Vanguard charges for the same securities. That is pure profit to NY Life since they own this plan’s option. NY Life claims they paid a consultant for the plan options. In other suits, employers were taking kickbacks from the plan administrators. Employers should act as fiduciaries and use only the best options for employees.
Stop being robbed—use your own tax-FREE account:

How much does it cost for a $1 million retirement?
Most of us have no idea. Half of all Americans will not be able to live on Social Security and their savings. Yet, if we knew that we could guarantee we would have enough, would we do what is necessary with our current wages? What we don’t know that wealthy people know is that TIME is the key to converting our current spending into a million dollar nest egg. Most of us don’t shop to save on mutual funds or insurance so we pay too much to middle people. Our fees reduce the amount we could have by 63%. Instead of having $250,000, we end up with $100,000. We end up with $500 a month instead of $1,000 a month in retirement. All we need are the Tricks that savvy savers use for $1 mil.  

Are you getting shortchanged on your benefits?
Income inequality grows from your benefits package too. If the rich get richer, one way is they have better insurance, heftier 401(k) plans, and a sturdier all-around benefits package. And the trend is making America's already wide income gap even worse. Employers spend a median of 38 cents of each compensation dollar on benefits, according to a Pew study. And as compensation goes up, so do benefits. For every additional dollar of average hourly pay an employee gets, Pew finds, employers spend an additional 67 cents on benefits. Workers with smaller paychecks, who can't afford to pay out of pocket for things like extra health care expenses and child care, get less support from their employers to meet those very needs. Many benefits come in the form of non taxable income. As benefits make up a bigger chunk of compensation, this further advantages those in a higher tax bracket. Tax payers subsidize the non taxable benefits.

Why your car or home insurance is NOT renewed
After you make a legitimate claim, your policy is not renewed. It happens often and for good reason. Insurers don’t like to pay claims even for legacy customers and for legitimate claims. They price for once-in-a-lifetime catastrophic loss not frequent dings. A property damage claim means that you are not maintaining properly and will have another claim. Jewels can’t be stolen or lost if they are in a bank vault. Two events mean you are careless and will have another claim to them. This pattern is a risk that cuts insurer’s profits. Insurers take on risk based on numbers. Size and number of claims that do not fit their profile are jettisoned. It is not personal for them. The fact that you paid for 25 years has no bearing because the numbers are done each year. If all your policies are with one company, all your claims count against you. All insurers share records on CLUE so it may be difficult to re-insure. Insurers underwrite for different risk and marketing strategies over time so you must shop around just like you do for a HDTV.

Estate planning made simple
You have a sizable IRA. You want to leave it to heirs tax-FREE. You can pay for a trust but the trust pays taxes at over 39% on income over $12,400. If you make the trust your beneficiary, that is a big bite. The best option is to convert parts of your IRA to a Roth. You may convert portions of your IRA strategically over time by "filling up" lower marginal tax brackets with Roth conversion dollars. Then each year in post-70.5-retirement, take out more than your RMD, pay tax and reinvest it in a Roth IRA if you are still working. Otherwise, reinvest in a taxable account with growth stocks NOT BONDS. Growth stocks or growth stock funds pay little current interest/gains so taxes will be minor. You may have to pay tax on SS benefits and pensions so your tax bill must be managed.
At death, your Roth IRA is tax-FREE forever. The taxable account moves to your heirs on a stepped up basis. At your death, the balance is tax-FREE. As their taxable account grows, only the gains above that amount are taxable at capital gains rates. Leaving an IRA, 401K, or annuity are taxable at the heir’s income tax rate!

Trump tax plan: tax cut for the very wealthy
Since we have a deficit and Trump has promised to cut taxes for the wealthy and corporations, where will the revenue come from except from us. GOP leaders have hinted that a “consumption” tax may be used. Everything we buy will have an extra tax. This is called a “value added tax” VAT in Europe. It is a national sales tax. Some call it a flat tax. Some claim it will increase growth because wealthy people will invest and build more business with their extra money. Others say that the wealthy already pay less (17%) than the flat tax with the subsidies Congress gives. They have already invested their excess cash overseas where labor costs are a tenth of ours. Fiat Chrysler moves car making to Mexico Canada but our tax subsidies of $2 billion continue for Fiat. Most agree that the biggest tax cuts are reserved for the wealthiest. Trump will eliminate the estate tax (which currently applies to only about 5,300 of the richest families) and scrap the alternative minimum tax, which is avoided by most wealthy people.

Can Don really bring good-paying jobs back to US?
One of the GOP’s major promises for 2016 is bring back factory employment from overseas. "I will bring jobs back from China. I will bring jobs back from Japan. I will bring jobs back from Mexico," he said. "I'm going to bring jobs back and I'll start bringing them back very fast." “I will be the greatest jobs president.” But during the last 3 years of Wal-Mart’s effort to create 250,000 factory jobs, it has hit two walls. Wages in China allow US makers to do more with less. Even when employees here reengineer to cut costs, the automation raises productivity with much few employees. Employers would more likely take a one-time automation cost than hire more people even at $7 or $9 an hour. Wal-Mart has created 7,000 jobs—a tiny fraction of the 5 million lost since 2000. Don must go against the trends of automation and lower wages. His record in his own industry (casino, golf, hotel) has been dismal. He is better at avoiding taxes.

GOP ‘religious freedom’ (for certain people)
PayPal founder got a cheer for being gay but the GOP law in many states says NO NO!
Congress may legalize discrimination against gays despite Convention cheers. GOP thinks the "First Amendment Defense Act" will protect the rights of religious institutions/people since same-sex marriage was legalized. But hate gay law is already in many states like Pence’s IN. “In most states, you can get married on Saturday, post photos of your wedding to Facebook on Sunday and then get fired or kicked out of your apartment on Monday just because you’re gay.” Trump said he will protect gays at his convention but he does not control GOP Congress nor the state lawyers.
The law allows anyone to claim ‘religious belief’ as excuse to bar people on the basis of any sex act OUTSIDE of traditional marriage. Violates our civil rights.   

GOP tax cut experiment failed – credit ratings fall twice
KS has given its wealthy a big tax break and now the state credit rating has dropped twice. Borrowing costs for state projects will rise. KS is now in the KY, IL and NJ class—no cash reserves. Kansas can’t balance its budget because GOP Sam Brownback lead GOP-Legislature gave tax breaks to the wealthy in 2012-13. The GOP myth is that the wealthy will create work and revenue. Instead they send their money elsewhere. Largest employer Koch expands in other states and countries. Koch spends $ billions to cut taxes nationally. All schools, infrastructure, and state pensions are degraded. "It's just the fundamental, ongoing budget crisis that's been caused by Sam Brownback's failed tax experiment," said state Senate Minority Leader. CA has raised taxes and funded all projects plus emergencies. Trump promises to work the KS ‘miracle’ for all states.

Trump children in charge of the nation?
Trump wants to fire all Obama-era workers. Will the Trump kids run State, Medicare, ICE, FBI, and Treasury? Who will run TrumpCare? Can Pence really fix the economy like he did Indiana or did Obama’s policies? Can Congress pass all those bills—closing environment, education, health, oil gas water electric regulation, and taxation as we know it? They only work 111 days per year. Who will tend the golf courses and T product sales and rental buildings if Trump kids run the nation? Trump says only he makes the decisions.
Petty dictators are all alike. Opponents are criminals, public show trials, mobs shouting “lock her up”, other reckless vows. Convention was not GOP: ‘Trump Family’ branding: “I am the only one who can save you from violence” “I can fix everything” once you give me the power. Alpha and Omega incarnate.

Which candidate is the better liar? Presidents must lie to keep power.
It is good to know that both parties act as juvenile petty-power cliques.

            Dad and I were not racists: Justice didn’t have a case but we settle anyway.
            Bachmann thinks I “recognized the humbleness that he had.” Otherworldly! Especially when I said I alone can fix it.” Where are these people?
            Did Putin really help me with the emails? Putin expects intelligence reports?
            My wife Melania didn’t lie about having a college degree. Her site got it wrong.

Hill:    I could have won without the DNC back-room dirty-tricks group

Tim:    I’m here to seal the Hispanic, white, male, religious, moderate, southern vote.  

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.” (GOP bill requires impossible: every person in class action suffer “same type and scope of injury”)
               Supremes stop us from suing—State courts no longer available to sue corporations!

.Olympus scope-maker caught NOT informing US hospitals about bacteria kills 35
.Gun sales up 40% since OrlandoAR 47 with armor piercing ammo is top gun $780
.TX now lets its students carry a hidden gun on campus, in dorm, classroom, anywhere
.With email and voicemail being hacked, maybe sealed first class mail is not so bad.

We need regulation—GOP wrong—companies/cities wouldn’t fix bad products on own

When everyone has guns; your chance of being killed goes up. Police want gun control. They don’t know who to shoot. Shot a psych worker with his hands up while on ground. 

Pretty face cars that just don’t measure up: 10 that give you heartburn
GOP voters are actually looking up ‘Trumpence’ in the Bible. It is ‘diabolos’ in NT.

Ignoramus Award: man pulled gun on a little boy who was kicking seat at "Star Trek"

How our government wastes our money
Throw money at unknown unknowns
Reagan assassin released from mental hospital: 35 years of therapy costing $ millions.

Who owns your account now?
MetLife insurance and annuities to Brighthouse Financial, Charlotte, NC
Gerstein Fisher to People's United Bank
“Do You YAHOO” to Verizon
Fiat Chrysler moves car making to Mexico/Canada Subsidies of $2 billion continue

FIOS down 2 days

41 Watchung Plaza, B242
MontclairNJ 07042

Friday, July 22, 2016

We will never see Don's tax returns since he pays nothing

Trump tax situation more mysterious: no taxes paid in 1984 1978-79
Trump appealed tax rulings in the 1990s. His 1984 federal income tax return included a Schedule C, the form used by sole proprietors to report revenue. Trump listed no income on that form, yet he deducted $626,264 as expenses. He claimed a consulting business. His accountant denies preparing his 1984 return even though his signature is clear on the form. There were no receipts or documentation for expenses including his hair, jets, golfing and food. The judge wrote, “The problem at issue is not one of double taxation, but of no taxation.” We don’t know if Don ever paid taxes. In 2016 he takes on more debt as property values rise.
Avoid taxes legally by using your IRS tax-FREE account:

What does Mike bring to Don’s party? Ann Coulter and I agree on 1 thing!
When Mike Pence was a young lawyer on the rise, he challenged a longtime Democratic congressman in a GOP-leaning district. And then, scandal. Campaign finance records from the 1990 effort showed that Pence, then 31, had been using political donations to pay the mortgage on his house, his personal credit card bill, groceries, golf tournament fees and car payments for his wife. It stunned voters — and undermined Pence’s strategy to portray the incumbent, Rep. Philip R. Sharp, as tainted by donations from special-interest political action committees. “It was a brazen act of hypocrisy,” opponents said. On 60 minutes Don said he ‘doesn’t care’.
Don must feel comfortable with Mike charging personal expenses to his work accounts, just like he does. Don promised NO outside group funding but now beholden to many. They pay his expenses to his firms. Don was for bank bailout and auto bailout. Whether they fund them or nationalize them, it doesn’t matter, but you have to keep the banks going.”

58 % of Americans are dissatisfied with their choices in the “election.” Corporations and wealthy donor class will pay over $6 billions to buy votes. Voters are split 50-50.
We CAN have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both. Louis Brandeis Supreme Court justice (1916-1938)

How can the wealthy double their share of income since 1980?
The upper middle class expanded from 13% of the population in 1979 to 30% in 2014, the Urban Institute found. Together, the upper middle class and the wealthy had 30% of all income in 1979 and 63% in 2014. In the same period, the middle class’s share of income declined from 46 percent to 26 percent. Biggest factor: Education. Even with degree, low income grads earns less. Income gap is passed down from generation to generation through marriage/affinity. Where do you stand? articles/personal-finance/011216/average-retirement-savings-age-2016.asp
Protect your future with a tax-FREE account:

Is travel insurance right for you?
Despite terror events, “rates don’t fluctuate due to events,” Ms. Taft said. “Travel insurance rates are heavily regulated.” Policies are standardized so you can compare rates at consolidators like and or call an agent about which policy may best suit you. One agent said what determines whether you are covered is 1) when you bought coverage and 2) how exactly your travels were affected during a terrorist event. For instance, a road closure in the aftermath of an attack that causes you to miss your flight would likely be covered. On the other hand, if you cancel because of an event at your destination. “Traditionally insurance doesn’t cover fear,” the agent said. Use your judgment: you are more likely to die from a disease or lightning than from a terrorist attack. Millions travel without it.

Why do investors surge into stocks when the market hits new highs?
If you are a long term investor, why buy when stocks are making new highs? Wouldn’t it be better to buy when the stocks were on sale like in February so you would be up 16% by now? This is an example of why the Buffetts and Bogles tell us NOT to time the market. Wall Street “professionals” get excited about buying but their costs kill our earnings so now they sell indexes as stocks (ETF)s.  However, this can be a learning moment for us. If our advisor is telling us to buy stocks now, you could finally realize that advisors are sales people, not advisors. They want fees. (See p. 174 in
It is not best for you to buy at news-cycle highs. An advisor with your best interests at heart is telling you to hold if you are a long term investor. Compounding only works if you reinvest dividends. Timing the market is for salesmen’s fees/commissions.

Where do you keep your cash? Home?
41% of millennials are keeping their “savings” at home, an Amex survey found, and more than half of “savers” have their cash squirreled away in a “secret” location. First, $100 hidden at home for emergencies makes sense. Second, ATMs are open 24/7. Third, Warren Buffett has said that the best place for your money is a low-cost stock index fund earning 10-12%. Obviously the survey is not talking “savings” since cash at home is NOT earning anything but negative consequences. If cash is sitting around it will get used or shrink (inflation) or lost NOT saved. Some banks or credit unions pay interest on checking.

Where can you receive unbiased advice?
Any person who gives financial advice in your particular situation must be licensed. If they receive any compensation, they should tell you how and how much. You can’t judge the validity of information unless you know their biases. For instance, Warren Buffett has said that the best place for your money is a “low-cost stock index fund” earning 10-12%. If we are scared of losing money, the last place to find help is a salesman. Their job is to make money for their firm and themselves. Many studies have shown that advisors do worse than monkeys at stock picking and the advisor total costs of 2-3% can reduce your total earnings by 63%. You must pay for unbiased advice either by doing your research or paying someone a fee NOT tied to the outcome. The very wealthy have people on a fixed fee like a retained lawyer. You can pay $500 - $5,000 once for a fiduciary like the fee-only advisors at Since you’re going to need unbiased advice for the rest of your life, it makes sense to learn how to handle your money yourself. Why give it to Fidelity, Morgan, Citi, or Schwab whose profit margin is 39%! Wow 39%!

GOP religion bill makes discrimination legal
Rep. Jason Chaffetz, R-Utah, thinks the "First Amendment Defense Act" will protect the rights of religious institutions since same-sex marriage legalized. Pro: Religious institutions could NOT lose tax-exempt status if they oppose same-sex people. Con: It legalizes discrimination against gays, lesbians and transgender individuals. It would prohibit the feds from taking any action against any person who, "acts in accordance with a religious belief or moral conviction that marriage is or should be recognized as the union of one man and one woman, or that sexual relations are properly reserved to such a marriage." Means NO SEX outside marriage despite GOP convention cheers for PayPal!
Feds could do nothing if people discriminate against others. It couldn’t revoke the tax-exempt status of nonprofit institutions such as religious schools or colleges run by such individuals; disallowing federal tax deductions for contributions made to such organizations; or denying anyone a federal contract, grant, loan, license or other benefit simply because that person, or an institution run by that person, discriminates against certain people for sex, race, creed, color, etc.
So feds could NOT sanction person that discriminates against people they think are gay or have sex with non-spouses—basically anyone that person/institution doesn’t like.
CURRENT LAW: 1964 civil rights act said you can’t discriminate against people you don’t like “based on race, gender, religion or national origin.”  

Impossible now possible
Scientists have created a hologram of a solitary particle of light. Impossible they all thought. It was impossible because photons act as a wave and a particle at the same time. Using two other photons which create interference, the structure of another appears. Eventually they hope to make things on the quantum level—‘universe in a marble’—level. Quantum action can happen faster than light travels: Einstein said “spooky.”

            I have made $1.4 million from running for pres so far—not bad for a ‘faker’.
            Christie threw my claim ticket at me: “You can pick up your own damn dry cleaning.”
               You will never see my tax returns—I pay nothing—and press will blast me.
               Perhaps U.S. shouldn't come to the defense of its NATO allies if they are attacked
               “Believe me,” he repeated again and again, “I alone can fix it.”
“At our convention, there will be no lies,” but we just heard one!
Mike: I am here to make conservative religious feel good while Don does his thing.
            ‘Do you think Don went too far [in insulting McCain]?’” Trump jumped in: "You             could say yes... That's okay. That one, you could say, 'yes.'" Bully tells him ‘OK.’
            I just said US support allies but Don said we might NOT support allies.

Hill:    I will start amendment to reverse unlimited corporate election funds—back to US.
            I will delay testifying in lawsuit brought by the conservative group Judicial Watch
            Ben says Satan—GOP has finally hit bottom. It is so sad. GOP wants to kill me?
            Did Don just declare “war” on all things Obama? Is this anarchy or Satanism?
            Did Don just tell Putin he could take Estonia and NATO meaningless?

            Mel’s “speech got more publicity than any in the history..” That’s what counts

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.” (GOP bill requires impossible: every person in class action suffer “same type and scope of injury”)
               Supremes stop us from suing—State courts no longer available to sue corporations!

. RiverFront Investment, VA, fined for charging wrap fee plus fees covered in wrap.
.Finally police call for BAN on open carry in OH—AR guns kill people, many people
.States where you don’t need license—roam free and shoot—“I felt threatened” is code.
.NC law restricts minorities and poor from voting—up to 29,000 DEMs.
.Trump’s ghostwriter on “The Art of the Deal” says he feels “a deep sense of remorse.” I created a monster—even Don believes my myth of him as the great dealmaker. Sued
.Trump sanctioned twice for racism: “the guy is lazy. And it’s probably not his fault because laziness is a trait in blacks.” In ‘89, he called blacks and latinos, “roving bands of wild criminals.” 
.Fiat Jeep caught inflating sales numbers to get bonus/stock price up
.Share of workers who telecommute has grown from 19% in 2003 to 24% last year.
.Prudential sales assistant caught taking money from senior’s annuity account
.Goldman caught helping divert Malaysian funds to Malaysian leaders; GS fee $600,000.
.GM forced by regulators (NOT believe defect) to recall 4.3 million Takata air bags.

We need regulation—GOP wrong—companies/cities wouldn’t fix bad products on own

When everyone has guns; your chance of being killed goes up. Police want gun control. They don’t know who to shoot. Shot a psych worker with his hands up while on ground.  

Mick Jagger, 72, announced that he is expecting his eighth child with his 29 year old gf. 
Disney tells employees to lie about alligator sightings—“never saw them, kid not killed?”
Christie lies to GOP spenders re: Trump never gave donation to Hur. Sandy fund—never.
VW cheating code made to cover up Audi fix (fuel) for diesel clattering noise at idle.

Ignoramus Award:  26-year-old PA man caught getting high on stolen human brain

How our government wastes our money
Throw money at unknown unknowns

Who owns your account now?
Fox News exec Roger Ailes will leave and not be defended as predator but with $40 mil
All beer—same kettle: SABMiller  to Anheuser-Busch InBev
Insurers of Olympics say not cover every type of loss related to Zika in Rio. Call agent

41 Watchung Plaza, B242
MontclairNJ 07042

Friday, July 15, 2016

Are you using your Tax-FREE account?

Are you using the tax code to your benefit? 
The rich pay only 17% total while we pay 33% total. Use your IRS-approved tax shelter account to avoid the taxes they owe. In retirement, you must take RMD from your qualified accounts because you didn’t pay upfront. However, you may be missing an opportunity to save on taxes. Let’s say your only income is SS and an IRA and pension. Your SS benefit is taxed based on the level of your other income. Couples over 65 can have taxable income of about $24,000 and pay no tax (SD+PE). If your SS, RMD and other taxable income is $12,000, you could pull out another $12,000 from your IRA with no additional tax. Converting that additional $12,000 with no tax to a Roth IRA now allows your $12,000 (not taxed) to grow to $24,000 (in 8 years) and never be taxed. Plus, if you do this every year, your future RMDs will be lower, allowing more conversions at ZERO tax forever.

We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both.   Louis Brandeis, Supreme Court justice (1916-1938)

Are you overpaying for your managed account
Some managed account firms are using a lower fee schedule to attract your money. Some are charging 50 basis points (0.50%) to manage your portfolio and just 0.25% to house it. Then when it reaches a good size, say $400,000, you pay only $1,500 or $1,000 tops. This compares to the standard 1% for management plus 1.5% of funds. Some firms use index and active funds in the portfolios so that you cover the full range of risk-adjusted performance. These firms are pricing for a discount of 1.5% compared to the industry standard. Vanguard’s low-cost leader status is pushing this trend to lower fees.
Forget the middlemen. Get the best for less:
Is your 401k robbing you of a FULL nest egg?
Are your fees too high? New lawsuits show that Lockheed’s $62 million settlement was the rule not the exception. You may have lost $ thousands since the plan took their fees off the top and you never saw them. When your employer installs a plan, it picks the seller and investment options, not you. You would pick Vanguard, with the lowest fees. Fujitsu, for example, picked target-date funds created by a Shepherd Kaplan who charged the retail rate of over 1% not 0.15% for new funds which underperformed their benchmarks. Employees paid about $3 million in excess record-keeping fees in 2011 alone. Employees were forced to subsidize their employer in a ‘revenue sharing’ plan.

Why Wall Street professionals can’t beat the market
Trent wrote a great explanation of what money managers actually do to be top dogs.
Managers are really marketing firms. They would rather be rich than be smart. Consider: you can pick thousands of managers of mutual funds. How can they justify people giving them money? They must do some tricks with stats to make it look like they lead the pack so we will give them money. They must spend money to advertise. They must go to conferences and TV shows to talk themselves up. They must do a lot of data mining to find that exact time when their funds did well. If they are lucky they will have some story to sell about their funds or themselves. Their fees lower your returns over time.

You can avoid increases in state taxes too
In the future, many states will have to increase taxes to cover huge pension obligations and collapsing infrastructure and state scandals. For instance, NJ’s Christie costs tax payers $10 million related to the Bridgegate scandal so far. He has missed promised pension funding and road rebuilding funding. Christie gave millionaires a break on taxes so they wouldn’t leave but they did. KS cut taxes on business and the economy tanked. No one wants to move a business there if the schools and infrastructure are poor. KS took federal money for child support it must return. KS has slashed funding for higher education too. IL has lost millions of dollars in investment income because of the budget stalemate. Emergency funding for universities, domestic violence shelters and food stamps will run out soon. Primary and secondary schools may have a delayed opening. GOP-run states are unlikely to reinstate taxes on their millionaire supporters.  

Auto claims can bump your insurance premium. How much?
I have a claim—my bumper got dented when I backed too far. Should I file a claim or pay myself. I have comprehensive. How much will my premium rise? I have $1,000 deductible and have saved $100 a year for 10 years. New site gives you the probable extra premium you will pay: I was happy carrying a higher deductible since I got a great rate years ago. Site says my increase would be small but if I am in an accident in the next year my next claim puts me at jeopardy of higher premium. 2 in 2 years is not good.

Are NextShares right for you or just marketing trick?
NextShares are a mash-up of a typical mutual fund - with a manager buying and selling stocks or bonds in hopes of beating the market - and an exchange-traded fund built to shave trading costs and taxes. Traders can buy NextShares throughout the day, like ETFs, but they price after the market closes, like mutual funds. But unlike ETF that try to beat the market, NextShares only reports holdings quarterly. ETFs report holdings daily and thus are copied. So you are buying a promise; not visible securities. The industry thinks they will replace mutual funds because their structure makes them “big money-savers.” However, you are paying the trading costs and the underlying fees which have not been disclosed yet. It will be very hard for investors to beat the low-cost leader of funds at 0.05%. Plus the new funds have no history. The industry is desperate for new money.

Is your medical insurer being fair?
Your medical insurance provider may be overcharging you for tests and procedures. If you have insurance with a high deductible, you may be better off paying cash for the test. says this diabetes test costs $11. My insurer’s lab (LabCorp) has me sign a form making me liable for $577 if my insurer does not pay them. If my deductible is $2,000, I am way ahead paying cash with no insurance card. Does my insurer pay $11 or $150 for the test? It is great how we get stuck from both sides. We pay the premiums but we can’t get them to charge us the cash price. We are subsidizing the CEO’s $14 million pay package without the benefits. When I am sick, the last thing I should have to do is dicker about price but this is our “best in world” system.

            I can’t release tax returns since I pay the “lowest rate possible.” he pays minus%!
            I don’t encourage violence, just more guns and intolerance of non-whites. Riots?
            Pro choice DEM for VP should help some delegates decide to quit. GOP Platform
            After 4,000 lawsuits by and against Don--he rarely follows through. Scary!
            57% embarrassed to work a firm that paid for Don’s coronation.
            A Supreme says calling Don a faker was ill-advised. He will swamp her as Pres.

            DEMs platform is a progressive statement—Do Nothing Congress will sit on it.
            DEMs revive togetherness for Hill’s coronation.
            Clinton’s Whitewater investigation lasted 8 years, 3,000 subpoenas, 10 million             pages—cost more than $70 million. Emails $30 million—she is running for Pres.

Rick Perry: Mexican wall will be a “digital” “technological” barrier, not physical one

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.” (GOP bill requires impossible: every person in class action suffer “same type and scope of injury”)
               Supremes stop us from suing—State courts no longer available to sue corporations!

.Harley caught brakes may fail—recall?
.Chetan Kapur, ThinkStrategy Capital, caught hiding $ millions with Swiss he stole.
.Fiat pays hackers so it understands how they crash Jeeps remotely.
.FBI goes to activists’ homes—“Don’t go to Cleveland” for protests. ACLU?
.Santander Bank fined for illegal overdraft service practices—deceptive marketing
.Porsche recalls all the 918 Spyders for seat belt mount
.You can't bring a water gun to GOP Convention, but you can bring an AK-47.

.When everyone has guns; your chance of being killed goes up. Just by the numbers. 

We need regulation—GOP wrong—companies/cities wouldn’t fix bad products on own

KY Ark is brainwashing kids? or voters who gave $18 million in tax subsidy? Only 6,000
Bahamas tells its young visitors to US: use “extreme caution” with police?
GM can’t avoid death claims for killing 124 people by hiding in liability bankruptcy.

Pope Francis appointed former Fox News Burke to serve as his chief spokesman?!?

How our government wastes our money
More troops to Iraq and more troops to Afghan. We are building missile base in S Korea.
GOP “demands” that Obama ask for money! --setting up a bitter political fight? Deals?
Obama’s government posted a budget surplus of $6 billion in June? GOP $12 Trillion.
US investigation of Clinton cost more than $70 million Whitewater. Benghazi $6.8 million and Email’s cost $30 million. No indictment and she might become Pres.
Christie costs tax payers $10 million related to the Bridgegate scandal so far. 
Zika will cost more AFTER infections than prevention now -- Kids will need life care!

Who owns your account now?

41 Watchung Plaza, B242
Montclair, NJ 07042

Friday, July 8, 2016

What did you do when market fell 45%?

What happened to your money since the financial recession?
When the market fell 45% in 2007-8, did you sell or did you just cringe like I did? I decided there was no other place to go. No “advisor” knew what to do. If you sold your portfolio and moved to safe cash equivalents earning 2%, how have you done? $700,000 in 2007 would be worth $820,000 now if you got out BEFORE the fall. If you got out at $600,000 you would have $700,000 now. If you got out at $500,000, you would have only $585,000 now. I didn’t know where to go so I have the same $720,000 now. Is it smart to sell in a crisis? When I look at the market over 10 years, I see an upward trend: When you look at this graph, remember dividends. In 10 years, you would have lost all those dividends from companies in the 500 index. The companies continued to make profits. That is why you invest. Not to try to time getting out and then getting back in at the right moment. Studies show it is hard.

Vanguard low-fee investing has changed our future—saved us $200,000 +
$1 of every $2 invested today goes to Vanguard. That’s $1 billion a day for 18 months. All the other managers are cutting fees to compete. Don’t be fooled—Fidelity can raise the fees when they need to. Vanguard does not lower prices temporarily as a novelty. We investors own the funds and charge ourselves just enough to provide top drawer service. It has no owners like Fidelity’s Johnson family so there is no multibillionaire to fatten annually. Vanguard has index and managed funds and ETFs at cost for our benefit. Our portfolio grows to $500,000 not $300,000 on fees of 0.20% vs 2.0% over time. Low-fees beat high-fee investments in every period so your $16,000 by age 26 becomes $1 million.
Vanguard: the best costs less because volume:

Myth of GOP “small” government, low taxes, high growth
George Will just left the GOP. Many listed as GOP say they can’t support its candidate. We may be seeing the end of the myth of conservative politics. Socially-conservative Christians are flocking to a Manhattan playboy who promises to get stores to say “Merry Christmas” again. They want to block non-Christians from politics and reinstate Christianity as the ‘state’ religion. The GOP candidate is promising to spend more on protection and reversing the progressive trends than the mythical Reagan did. He promised more government spending to control immigration, non-Christians, women’s health clinics, environment, and business. Like Reagan’s expansion of government workers (60,000) and the debt ($2.3 trillion) at the expense of workers (1983 payroll tax hike)—in the name of working people, Trump promises to cut taxes for the wealthy and pay for it by making a national sales tax like Europe. Don Trump will cut Medicare and SS benefits “if tax cuts don’t make big surpluses”. Reagan raised taxes 7 times and gave millions of immigrants amnesty.

GOP proves tax cuts for rich doesn’t create growth; just ruins life for us
GOP statehouses are trying to exclude DEMs from voting, getting health care and good educations. KS is proof that cutting taxes for the rich just ruins that state for the rest of us. They cut Medicaid, education, federal payments, infrastructure like KS and now they can’t fix it. KS lawmakers created more gov not less; and will need to raise revenue from working people in the form of property taxes. NJ Christie wants to triple the gas tax to offset his tax cut for millionaires, who are leaving the state anyway.
GOP isn’t conservative. GOP just don’t like non-white non-Christian & women deciding.

Is indemnity health plan right for you?
ObamaCare ban on savings-type health plan cancelled so Central United and others can profit from poor people again. A DC court struck ACA provision that outlaws plans that don’t pay the full bill when you get sick. Obama said they don’t provide comprehensive care for all diseases or even the full hospital bill so can’t qualify as “minimum essential coverage.” $500 for a $30,000 hospital bill is NOT insurance. These policies are big money makers because companies are selling limited payouts as health insurance. They are popular in countries that have FREE health coverage so people can pay for extras. ACA made policies affordable ($120/mo) or free (expanded Medicaid) for most people. Before you buy, see 1997 movie “Rainmaker”:
"automatic IRAs" for workers who have no workplace retirement plans
50% of the workforce or some 55 million employees have no plan at work. Some states are making the simple plans easy to set up so that workers will have income beside Social Security at age 67. Maryland's new auto-IRA, which mandates the automatic enrollment of any employee who works 30 hours or more for a company with at least 10 employees, were adopted nationwide, as many as 37.5 million Americans could be included, one observer said. The auto-IRAs would typically be invested by state-administered agencies that might compete with private-sector retirement plan vendors and investment managers. But the private sector has not helped set up plans at work before since commissions are low. NJ Christie vetoes the plan at the request of insurers, whose agents offer private funds with high fees. Other states employers show little interest in auto-IRAs.

Is a new car right for you?
A new analysis from found that a median-income household could not afford the average price of a new vehicle. The average price is about $34,000, according to Kelley Blue Book. New cars have expensive safety features like collision-avoidance systems. However, as the family of Joshua Brown found out, they don’t work .. yet. (big trucks look like sky to autopilot.) Like all new stuff, especially software, it takes time for success. Of course incomes vary a lot. But as the Times showed, in Hartford with incomes of $29,000, an affordable price is $8,000. So everyone borrows more for longer—68 months average and ends up paying $30,000 total. And 30% of us lease now and again make payments forever. Obviously, a 3-year old makes sense. One of our members found a 2012 Camry last year for an all in of $14,850 ($29,000 new) She put down $6,200 and financed the balance at $120 a month for 72 mos. She got 6 airbags, Camry quality but no autopilot, video, cameras, etc. 50K miles.

Does our President need to be smart and truthful? Do they even care about truth?
            (a summary of the GOP Presidential debates) (history: GOP has the final candidate by Feb 17) (FBI criticizes Hill’s lies she can’t blame on others)

                        What does Trump’s American Socialism stand for?
Reinstate older white male value system: Make ‘WASP” America Great Again
Reinstate Christmas and Christian observance in schools, home, court, stores, marriage
Put secessionist’s flag back in public spaces - cemeteries, courts, state houses.
Put up a wall, end trade, bring back repetitive “robotic” jobs back from low wage areas.
Cut regulation of all business activity, lower wages for women, pregnancy
Replace ObamaCare: no mandate (tax credit so you can try to find your own like before)
Cut federal spending on health especially when control women clinics, Zika
Cancel immigration for all from non-EU countries. Invest in security, guns, fear.
Voter suppression of DEMs (even in Brooklyn) Latins, blacks, poor, students.
Limit rights of non-Christians, Muslims, gays, Indians, Asians, protesters, press
Increase debt and devalue debt. Let Mexico pay for the Wall by taxing imports we buy
Create tariffs on imports so we pay $6,000 more for stuff we buy. Middle class tax.
Trade pacts are no good for us and no good for our workers.
Install state gov that cuts Medicaid, education, federal payments, infrastructure like KS.
Lust for executive power”—GOP House leader thinks Don wants to just snap fingers.
I could stand in Fifth Avenue and shoot somebody and I wouldn’t lose any voters.” 
Don’s rallies begin with crazies denouncing supporters--thrown out as “protestors.” 
It’s hard to reason with people who don’t care about good policy, logic or sound information.”
“The only thing necessary for the triumph of evil is for good men to do nothing.” E Burke

            (Scots were pushed from homes, offered fake jobs, sued, threatened over turbines)
            When Prez, I will personally sign all checks—new jets, SS checks, debts.
            Ryan tax cuts for rich are paid for with “consumption-style” national sales tax.
            My delegates are bringing guns to fight ISIS friends in Cleveland. Speakers?
            I am having my vendors pay my staff as expense so no income taxes: Biz deduct
            I don’t need Christie’s mess in my election. Newt’s been married 3 times too.
            "Saddam was a bad guy. But he did well. He killed terrorists! . . sooo good."
            “Constitution is negotiable like everything else—Especially Art. XII” But no XII.
            I want you to tell the press the meeting was great—I know what I am doing.”
Hill:    Bill just doesn’t think—or thinks meeting my prosecutor is nothing. Or envy?
            Looks like 1964 all over again. Goldwater had same message for racists and lost.  
            "Republican Women for Hillary" --former Bushies for trade and a deal with Hill
            Kasich for VP to lock up OH? Or Rick Scott of FL
            What could FBI do? I might be their boss soon and FBI needs new building.
            There are different rules for the former Prez and me. We only do good things!
            GOP will spend $ millions more on 5 committee investigations of me. Wasted tax

Paul: ‘This is one of my big concerns:’ Don’s “lust for executive power.” But he’s it.
            “Saddam was one of the most evil people” … not ‘so good,’ Don!
            I think we will have to punish the DEMs for their sit in” Jail? Fine? Ban?
            “Anti-Semitic images, they’ve got no place in a presidential campaign,”
            KKK Duke: there was “no way” the Star of David shape was a sheriff’s star.
            Ryan bans secrets from Hill. Ryan first discussed the idea with Megyn Kelly !?!

Bern:   I will work to keep Don locked in the Tower.
            There is a reason Don’s businesses filed bankruptcy 5 times.

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.” (GOP bill requires impossible: every person in class action suffer “same type and scope of injury”)
               Supremes stop us from suing—State courts no longer available to sue corporations!

.Raymond James fined for massive fraud scheme involving the Jay Peak ski resort.
.Got a Stinky Front-Load Washer?
.OK does not want to give up 100 year old electric chair ‘sparky.’ May need it to kill.
.Another child killed by gun  accidentally by Dad on regular gun family outing.
.ObamaCare ban on savings-type health plan cancelled so Central United Life can profit
. Andrew Caspersen Park Hill Group caught defrauded investors of $38 million
.VW recalling 6,000 Touran replace front gas bottles corrodes burst fire
.SC town bans “saggy pants” rapper style originated from oversized prison outfits.
.US forcing recall of more than a million “hoverboards” as fire starters injure 99.
.40% sunscreens not sufficient to work cost not equal quality. See list. NO-AD wins.

.When everyone has guns; your chance of being killed goes up. Just by the numbers. 

We need regulation—GOP wrong—companies/cities wouldn’t fix bad products on own

Someone got paid for this? Seven-year study concluded the Iraq war was mounted on flawed intelligence and executed with "wholly inadequate" planning

Ignoramus Award: VA lets violent gun felons buy as many guns as possible

Remarried Catholics must avoid sex and live like “brother and sister,” Phila’s archbishop. But the Church is against birth control by unnatural means in Humanae Vitae #14.

How our government wastes our money
Obama spends $ billions we don’t have on lost wars—9000 in Afghan, 5000 in Iraq--any Moslem countries fighting to end their religious idolaters?
We are paying for 28,000 U.S. troops stationed in South Korea already. Let them pay.

Who owns your account now?
GOP convention replaces FUN speaker Paul LePage with Walker-Cruz. File for refund

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