Fees: what is the right amount to pay?
Friday, May 19, 2017
Tax overhaul will be a miracle
Tax overhaul by Trump will be a miracle
The Don is a developer of real estate and he and other rich people have enjoyed the fantastic benefits of the existing tax code their whole lives. Consider the basics: you put in a few dollars to buy a building site with other investors. You got other investors and banks to lend you over 80% of the cost to build/fill with tenants. You get to deduct the interest on the loan and the expenses in running the building. Expenses can be property taxes, depreciation, security, promotion, maintenance, personal expenses to win and keep investors happy, lavish advertising, opulent parties, hair spray, etc. You reduce your other income with these expenses. The New York Times has reported that Mr. Trump’s businesses have at least $650 million in debt. The deductible interest is huge. In 1995, for instance, he deducted almost a $ Billion from his income so his taxes for years ahead were reduced to MINUS. He loves debt so much he has profited from bankruptcy FOUR times. His budget, increasing the national debt by $10 Trillion, may hit bankruptcy level. He is profiting from the national debt already after only 100 days.
Is it likely that The Don will push through Congress the elimination of the tax benefits of the current code? Would you give up your tax credits if you were Trump or Congress?
Take your tax credits now: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382
What can you do when the market falls 10%?
People who try to time the market—to sell their mutual fund shares or stocks—before or during a market plunge think this is the way to “never lose money,” as Buffett’s famous number one rule says. However, if you follow his actual deeds, he does not sell when the market tanks. If the price of the firms he holds goes down, he actually buys when others sell. Usually he just ‘stays pat.’ And that is part of Buffett’s strategy: stay pat. Buffett, the most successful investor of our time, does the impossible—he does not panic. He does not panic because he knows there is no better deal than what he has. His advice about making money: "We continue to make more money when snoring than when active." Fidelity found that the 401k accounts that did best were those left dormant.
So be a Buffett Millionaire: https://www.amazon.com/Warren-Buffett-Millionaire-money-snoring/dp/1508887381
Trump could be a great president
He could end sex discrimination in the workplace and government. Fact: women get paid less than men for the same work. Some studies say women get 70% of men’s wage rate. Simple law for all business concerns to execute: they have data on pay and job titles. Trump would be hero to working women and who could complain? It would also raise wages to create demand for our economy. GOP could build party depth by showing respect for women workers—HALF the voting public. Who would object? Women create many small businesses and would be praised for equality. The increases would allow women to save for retirement since many receive less Social Security because of low lifetime wages. They need more retirement money because they live longer. Ending sex discrimination would help Trump with his misogynistic image. His regime is all white men with women in secondary positions.
Get ready for TrumpWorld: https://www.amazon.com/Your-Retirement-Income-Checklist-TrumpWorld/dp/1544703260
The best graduation gift is money
Most retirees I help bemoan the fact that they wish they had started early to create a pile of cash for their later needs. They admit they had little money to do that but NOW they know it is TIME, not picking the next Apple that would have made a big difference. Your gift, should you accept the task of giving them a start, can help your graduate get started. Even a small amount can put them on the road to riches. $100 deposited in their own Roth IRA means in just 20 years, they might have $75,000 if they match it every month automatically from their account. If they continue, that’s $225,000 in 30 years and $650,000 in 40. If they wait to start, it will take $820 a month to get the same amount.
And it can all be tax FREE: https://www.amazon.com/Give-your-Graduate-1000000-Lifetime/dp/1456433105
Are the new ETFs right for you?
Your advisor has made the case for an ETF portfolio. But are they right for you? (We know they are right for your advisor because they carry commissions when you trade.) The answer comes from your objective: Is this money for long-term accumulation or for market timing? Most ETFs are indexed funds and they are best suited for investors who AVOID a market timing strategy. Advisors mistakenly think they can pick the right segments over time. According to investment return tracking firm DALBAR, a stock index provides 11% per year vs. 3.79% for trading accounts. Indexed funds and ETFs only invest in the stocks on an underlying index, so they do not require an active manager to make picks. Unlike market index fund investing, investing in an indexed ETF requires that you be bullish on the underlying market segment. So if your goal is long-term total accumulation, use the lowest cost vehicle you can find. Typically, an index mutual fund that does not trade provides your best deal. Most large providers offer a 500 index for less so you earn more. Most 401k plans do too. Avoid the “Pimps” who promise more but deliver less: https://www.amazon.com/Pimps-Wall-Street-money-middlemen/dp/151525254X
Fees: what is the right amount to pay?
Vanguard has become the largest provider of investment products because it is the low-cost producer. Morningstar, the financial rating firm, compared all the mutual funds and found that the low-cost ones produced more return than the high-cost ones. Over time, your costs determine your final account balance. Your pension is losing money due to fees. If you are paying 2% total expense (1% management fee and 1% expense +12b1 fee) you are giving up about 63% of your total possible accumulation. And your advisor/firm gets the yacht. It is “the tyranny of compounding costs” according to Vanguard’s founder, John Bogle. Warren Buffett seconds this strategy. Ten years ago he bet a fund manager that the 500 index (0.04%) would beat managed funds. Stakes: $1 million. Despite the 2008 tumble of 37%, the index rebounded in astounding fashion. In 2013, the broad market index fund saw 32.3% gains vs. the hedge funds’ 11.8%. In fact, his index fund pick beat the hedge fund’s returns in 6 out of 8 years. Buffett’s Vanguard index is up 85% vs. their 62%.
Your choice—earn 11% or 3.79%: https://www.amazon.com/Millennials-Investment-Strategy-BEST-journey/dp/1533079242
The Don’s budget shrinks the middle class
Mr Mnuchin, Treasury, says the end to mortgage-interest tax deduction would end the American dream for all but the wealthy. A married couple would need a home-loan balance of about $608,000 before using the deduction would make sense, according to Trulia. And Trump’s end to local property-tax deductions would decrease home sales which would lower existing home values. Realtors’ lobby opposes it, obviously. Home ownership rate would fall. Reducing incentives to buy could benefit large publicly traded landlords like Trump’s friends, not his supporters.
His one-page tax plan includes ending the estate tax so wealthy families can create oligarchies. Estate IRS exemption already exempts most $10 million legacies. However, if the step-up in basis on assets is eliminated then the advantage of receiving your family home tax-free at your parents’ death is lost. You would owe tax on the appreciation of your parents’ home since they purchased it. If they left you a property worth $375,000 they bought for $75,000 35 years ago, you would owe $45,000 that year ($300,000*.15).
Use the Working Millionaire tax shelter: https://www.amazon.com/Working-Millionaire-Tax-FREE-Self-insure-Self-fund/dp/1460945484
Where do you park your short-term cash?
Credit Unions have higher rates because they can be more selective in who they call ‘members.’ So if you are a member of a union or work at Walgreens or ATT, you might qualify to earn high rates—2.75% for 5 years. You may not need to visit a branch. Some offer computer services like bill pay and remote ATM use. Your car and home equity loans are usually cheaper since you already own CU shares. Credit Unions make sense for most people who don’t have time to visit a branch or have few transactions. Earning more on your money and cutting fees is key to building wealth: https://www.amazon.com/Personal-Finance-Smarties-Not-Dummies/dp/1469973030
Goal: Household name around the world
We can’t stop watching his “apprenticeship for president show” EVERY DAY!
We have entered the Twilight Zone:
"There is a fifth dimension beyond that which is known to man. It is a dimension as vast as space and timeless as infinity. It is the middle ground between light and shadow, between science and superstition, and it lies between the pit of man's fears and the summit of his knowledge. It is an area which we call the Twilight Zone" where “alternative facts” and illusions of conspiracies are lived out. Lies are considered true. Incompetence is praised. Truth is what the loudest voice says it is over and over.
The Don boasted top secrets from an ally to Putin’s spies: will ally trust us again?
Trump gave granular details to the Russians—Syrian city where the ally got Intel—helps Putin control who has
ISIS Intel. I
have 'absolute right' to share ‘facts’ with Russia.
Trump Putin back channel set up to avoid US Intel community. Secrets passed?
Trump asked Putin to hack Dems, used fake news, disrupted elections, used spies.
So Three Russian Spies trade jokes and Intel in WhiteHouse. Jokes on us. Impeach
But didn’t Trump pillory Hillary for giving up top secrets in her emails?
If these were president Hillary’s acts GOP House would have bill of impeachment now.
Our greatest fear: Trump’s lust for power—obstruct FBI probe, fire Comey—Now tapes!
“I was going to fire Comey,” Trump said defiantly. “When I decided to just do it, I said to myself, ‘You know, this
Russia thing with Trump and Russia is a made-up story.'”
‘You’re fired’ letter has issues reversed. “Thanks for clearing me of collusion with Russia.” and ‘You’re fired’ so the Russia-Trump probe ends? Harvard Law: “Impeach”
Trump will call Putin as his first defense witness. Putin provides WH transcript/tape?
Trump is still a contractor from
Trump threatens FBI Comey with secret tapes Trump made of their talks. Like mob boss, he asks Comey to let Flynn go, then asks for loyalty, then fires him, then threatens him. https://twitter.com/realDonaldTrump/status/863007411132649473
Trump is like Cosa Nostra who thinks he owns the town’s people and the Law.
Justice Rosenstein memo made up to cover Trump’s firing Comey to halt probe.
Does Flynn have a pistol and bodyguard? Flynn knows what Trump got from Putin.
Free American press may be locked out of WH:
Trump may end press conferences—only TASS (Russia) will cover events.
If Trump does not have tapes of top secret disclosure, Putin will supply his.
Trump asks FBI to arrest reporters for publishing information he didn’t like.
The Don blackmails Comey: “secret tapes of his conversations with Mr. Comey”
The Don asked for loyalty and Comey said honesty. FBI ideology ended with
Hoover. “…that sounds
more like a
mafia boss than the president of a free republic.”
Coulter on Trump: “That’s the one fascist thing he’s done. Hiring his kids.”
“In Trump We Trust,” Coulter “worshiped” him with “blind loyalty.” Regrets
Chinese spent $7.7 billion for 40,000
visas and it is linked
to fraud cases
South is still fighting the Civil War—reliving the past is key pastime for many.
Little Dictator wants war:
Army to go back to
strategy? Lockheed Martin stock rise?
Jared makes $110 BILLION deal for weapons to Saudis. Commission 10%?
“Follow the money” Lindsey Graham
The Don just ‘lawyered up’—is Trump above the law? Can he govern?
Trump just hired a
Washington law firm to send a letter to the Senate
Judiciary Committee denying that he has connections to . Lindsey
Graham said he planned to look into Trump and associates business
connections. The Don uses 516 companies to hide
his income from all kinds of legit and illicit
businesses. In 2008, Trump’s son Donald Trump Jr. said at a real estate
conference that Trump businesses “see
a lot of money pouring in from Russia.” “Russians make up a pretty
disproportionate cross-section of a lot of our assets,” Donald Trump Jr. said
at the time. Trusts Russians? Russia
Uncovering More Trump Ties to Mobsters and Shadowy Oligarchs
The Don uses shell corporations and cut outs to launder money for the mobs and oligarchs on
Russia and Kazakhstan to buy real estate. Commerce Sec Wilbur
Ross was vice chairman, Bank
of Cyprus, which was premier bank for laundering
money for Putin and associates. Ross worked with a former chairman of Deutsche
Bank, known for its money laundering capabilities. Trump’s Xorders and agency
appointments are being shaped
by lobbyists from religious right, insurance, oil and gas, IT.
Trump is turning
America into a Tammany
Hall-style transaction political business.
Your employer no longer has to tell anyone when you are injured or ill by job
Trump revoked the disclosure rule requiring companies to electronically report injury and illness records -- a move that effectively keeps these records from being publicly disclosed for the immediate future. “Not having this data increases the likelihood that workers will be injured…”
The GOP bill gives the rich tax cuts that add up to $1 Trillion. The real TELL in this vote: Congress members will NOT lose their ObamaCare guarantees in this version. Trump has his WIN and we lose. 24 million people lose coverage. Even Fox News sees single payor in 7 years as a result.
Side by side comparison ObamaCare vs TrumpCare: http://www.latimes.com/projects/la-na-pol-obamacare-repeal/
Even Aetna wants a debate on a single payer system like
Flynn as paid secret foreign agent while US official and campaign knew it—traitor?
Flynn to Senate Intelligence Committee: “F**k you” no docs.
Trump knew Flynn was paid spy and still given access to top US secrets Treason?
Trump sees world differently. Turkey SS beat up Americans in DC and says nothing.
Trump needs to watch other cable than Fox.
Trump thought he would be cheered for firing FBI to stop probe.
Regulators are the only protection against corporations 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!
Supremes say NO to NC voter ID laws—NC wants to keep blacks from voting.
“An ugly chapter in voter suppression is finally closing.”
Student loan lenders don’t inform 90% students of available lower payment plans.
Your internet speeds and capacity will be market priced thanks to Trump. Disney vs you.
We need regulation—GOP wrong—companies/cities wouldn’t fix bad products on own
GM killed 124 because ignition switch pin not replaced after knew it killed first in 2006.
Police want gun control.
When everyone has guns; your chance of being killed goes up. Police don’t know who to shoot. They assume everyone has one and shoot first. You and thief have guns. CO schools now allow teachers/administrators to carry guns in the classroom. Kid lesson! Since 2015, police have killed 86 people with realistic looking FAKE guns--suicide?
Ransom ware threat: Click on link in email and all your files are gone. Pay ransom and still not get them back. Fix: Back up to cloud or your own external hard drive.
Trump threatens FBI Comey with secret tapes Trump made of their talks. https://twitter.com/realDonaldTrump/status/863007411132649473
Trump’s lawyer is posting his daughter in bra and pantyhose on twitter. Trump has called his eldest daughter “voluptuous”. He’s said it’s OK to describe her as “a piece of ass”. And he’s said that, if she wasn’t his daughter, “perhaps [he’d] be dating her”. Sickies!
How our government wastes our money:
Installing another presidential taping system.
Installing voter suppression head to find the “3 million illegal” voters that put Hill on top.
Where have all the jobs gone?
GOP Frelinghuysen intimidates critic by complaining to her boss—she is out of job
Job interview will ask for your salary requirements. Answer: I will research the range.
Which job board sites are best for your job search?
Cancel Robo calls with Mr NoMoRobo: https://www.nomorobo.com/
41 Watchung Plaza, B242