Are dividend-paying stocks right for you?
Riding on your portfolio output of dividends is the dream of
every retired investor. Perfect combo of rising dividends and portfolio value
provides you with inflation-fighting income and growth. Is this perfection
possible? The Dogs of Dow
tell you which stocks may be your ticket but part of the answer is how much you
must pay for your dividend returns. Vanguard
has again lowered its fees on funds that emphasize dividends. Why is this
important: If you earn 3.05%
on your fund but the cost is 1%, you keep only 2%--even less if taxable
account. If the cost is 0.15% which is 86% lower than the average expense ratio
of funds with similar holdings, you earn 2.9%. If your principal has increased
over 13% during each of the last 5 years, you have a winner. Lucky for us,
Vanguard funds are low-cost so no matter what happens in the future, we are NOT
overpaying. Vanguard Dividend Appreciation Index and Vanguard Dividend Growth
Fund provide income and growth. Either will complement a bond fund like Vanguard
High-Yield Corporate Fund with current yield of 4.67%. Since 1978 this fund
has provided annual returns of 8.5%. Dividends and bonds can complement your
Vanguard Top Ten: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X
How does a 401k loan or cash out hurt you?
On average, about 30%
to 40% of people leaving jobs elect to cash out their accounts and pay
taxes and often penalties rather than leave the money or transfer it to another
tax-advantaged retirement plan. The result is that you won’t have the money for
an emergency and your nest egg will be severely reduced. A typical situation:
cashing out your 401k when you change jobs. One case I worked on was a layoff.
They were not able to secure a new position, so the option to transfer their
401k to a new job never happened. They were so concerned about their lost job
and finding a new one, they did not investigate other options. So when the old
firm reminded them they had $51,308 sitting in their account, they took it.
Their unemployment was running out. They did not realize there would be taxes
to pay – 20% withheld – and 10% penalty. That left about $35,000. If they had
called a mutual fund company they could have had them move the money to an IRA
investing in the same option they had at work. What did they give up? That
$51,308 could have grown to $895,000 in a low-cost stock index account by the
time they retired. This person could have temped or borrowed enough to live on
until their next job started in about 6 months. Of course, they needed the
money then and it was easy to get but after realizing what they gave up, they
would have picked another option.
Consider your options: https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938
Trump could be a great president
He could nominate a politically-middle Supreme when the next
one resigns. Instead of packing the Court with more questionable jurists like
Scalia, Trump could keep the Court balanced. This would allow America
to maintain a majority in the social mainstream and save a divisive split like
Congress. It would maintain the choice women have in their health. It would
keep corporations from flooding the election process with money. The Supremes
can make sure that legitimate voters can continue to get to the polls when it
is convenient. In recent years, GOP dominated state govts have limited hours,
voting days and places so that an American must take off a day of work just to
vote. Some
waited 7 hours. Many states have deleted
voter registrations based on arbitrary measures. Religious freedom is an
important right but using it to discriminate against people you don’t like is
wrong. Supremes must keep prejudice out of our lives to the extent they can.
They need to balance my right to carry guns with the safety of all.
Fiduciary Rule back?
Firms and their advisers must comply with the exemptions’
conditions after June 9, 2017
if they receive compensation for investment advice in a manner that would
violate the prohibited transaction rules, which are designed to protect
retirement investors from conflicts of interest. Firms and advisers must either
structure their compensation arrangements to avoid
prohibited transactions or they must comply with an exemption such as the
BIC Exemption or Principal Transactions Exemption. Advisors must give advice
that is in our “best interest” but this is not made clear. This rule was made
so that an 80 year old investor is not sold an annuity that left them with
little cash. Most annuities are so complicated that no one understands them.
Many firms have decided to move clients to a perpetual fee account so they can
earn even more than an annuity over time. Your “best interest” may be to use a
simple income annuity or dividend fund.
Ask your advisor to review all the options: https://www.amazon.com/Annuity-Decision-Tree-questions-answers/dp/1546454497.
Trump budget increases wealth inequality; social instability
Trump loves creating debt so he can provide benefits to keep
tax credit class happy. Some economists see his
budget adding $10 Trillion to the national debt. His GOP staff says giving
money to the rich will generate economic growth at TWICE the current rate.
Since many think we are at full employment now, it would be impossible to
double our output. GOP leaders have been reluctant to spend money for Obama’s
plans so it will take great courage for them to reverse their stand and spend. Trump’s
supporters
– disability belts -- will see the greatest cuts—SS disability cut by $70
billions. Trump’s team likes to hold up Reagan as the beacon but he
raised the debt from 35% of total production to 60% of GDP. Cutting taxes
and having economic growth pay for it does NOT seem to work. Only Clinton,
Carter, JFK-LBJ lowered the growth of debt relative to GDP. If this seems
counterintuitive, the GOP lust for increasing the gap in wealth only makes
sense to those who measure America
by their asset size. Is America
a better place to live in if 1%
of us owns 50% of all assets? The top 10% of families -- those who had at
least $942,000 -- hold 76% of total
wealth. The average amount of wealth in this group was $4 million. Most of
us have less
than $200,000 including our home! Real incomes are the same as in the ‘70s.
Increased health
coverage costs mean less saved for retirement. Men
without college are dropping out of the workforce due to lack of
opportunity. We are becoming a two class society like ancient
Rome.
This is what happens when you cut taxes for the rich—America ’s
future?
School
children get less education. Oklahoma
has closed schools. What is the future for students who cut their education so
early in life? Is this how OK grows its economy? Does giving more money to the
rich really grow jobs and opportunity? Like KS, GOP control since 2004 has led
to fewer services, including public education. “These are all the result of a
bad public policy and a lack of public-sector investment.” Workers won’t move
to states with poor schools. This
is what Trump has in store for all of us. Facing a $900 million budget
gap in OK, Trump’s additional cuts will mean less learning unless you can send
your kids to private school. Only Arizona ,
Idaho and Utah
spent less per student. Teacher salaries are ranked 49th lowest. “If
I were single, I’d be on welfare,” one said. Trump’s plan to cut education: Millions
for private schools and charter schools.
There is a red America
and a blue America ;
an educated and uneducated US. Not good!
How Russian propaganda works
A new media giant has challenged Fox to serve those who
believe the alternative universe of anti-government anti-establishment
messages. Sinclair
is the largest owner of local TV stations in the nation. Sinclair would
have 7 of every 10 Americans in its potential audience. Hackers
provide data and false stories. With one piece of propaganda like the
Clinton’s Pizza
slave girl shop, provided by the Russian Information
Warfare Management Cell, voters grabbed their guns and voted for the nihilistic
alternative candidate who claimed “I
can shoot someone on 5th Ave and not lose any voters.” Despite fact
checking information readily available, Sinclair and Fox can easily be tricked
into sending the majority of Americans over the cliff of the reasonable. The traitors
led the shout out “lock her up.” Putin’s goals of destabilizing America
and creating a vacuum of power around the world would be complete. The legit
media is treated as the “enemy of the people” (a term Stalin
used) by a Russian puppet who claimed ‘I Alone Can Fix It’ I will restore law and order” while actually breaking
the law at every turn. Now most Americans
see Putin/Russia favorably. He took Crimea , Ukraine
The GOP beacon Reagan is turning in his grave. He spits out this
poison.
Cars: better used than new
Regal sedan loses 31.2 percent of its original transaction
price after 12 months on the road, according to this survey. 11
more that cost 1/3 less after one year are a Best buy. Plus someone else
has had to take them in for manufacturing problems.
10 cars with greatest number of safety complaints include
Jeep: http://www.cheatsheet.com/automobiles/cars-most-safety-complaints-since-2005.html/
Consumer Reports Best used cars in each class: http://www.consumerreports.org/used-cars/best-used-cars-for-under-30000-dollars/ Price
drops from glut.
Don’t forget all your discounts: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634
Can GOP really live on $7.25 an hour wages?
Conservatives have not increased the wage guide for 17 years.
Yet they wish to cut welfare, food stamps, child lunch programs, and just about
every
social safety net we have. Some
hide from voters. Would low-pay workers need to be on all these programs if
working people received enough hours at $15 to buy food, housing and health
care? The GOP always cites “job loss” when raising the minimum wage comes up.
Some say employers can’t compete in the world market with higher wages. But
have they really considered how you live on $7.25 and the part-time
limits of some employers because of health insurance requirements. Some
states have moved to set $15 as a goal despite Washington ’s
intransigence. It turns out that low-pay jobs at McDonald and Walmart are being
subsidized
by tax payers because no human, even Congress people, can live on $7.25
even with their
perks and benefits. In many states Walmart employees are the largest
group of Medicaid recipients. Wages are at
the same level as 1975 in terms of buying power. And when you consider the growth
of wages of the head of the firms they work for, you can see how American
Socialism for the Rich works.
*****************
TrumpWorld
Goal: Trump brand around the world
covfefe
We can’t stop watching his “apprenticeship
for president” show EVERY DAY!
Two Americas
Trump is still just a contractor from Queens—Fred
taught him to be The Don.
Like mob boss, he asks
Comey to let Flynn
probe go, then asks for loyalty, then fires him, then threatens him. https://twitter.com/realDonaldTrump/status/863007411132649473
Trump illegally pushes
2 top Intel heads to help him with FBI probe
Putin
is not just another mob boss The Don is used to dealing with in NYC.
Trump tied
to Russian mafia thinks he
owns the town’s people and the Law.
Trump
lawyered up to fight Russian probe by Justice – criminal
and civil charges.
Trump gives absolution
to lobbyists/employees for UNethical behavior Papal Bull?
Flynn avoids jail—OK
to ignore subpoena since McConnell not vote contempt. Where did his $1/2
million fee come from, really?
Why travel ban
banned: ‘in context it drips with religious intolerance, animus and discrimination.’
The president’s authority, the court said, ‘cannot go unchecked when, as here,
the president wields it through an executive edict that stands to cause
irreparable harm to individuals across this nation.’
Which witch hunt?
Resign or impeach? Which is
better for Trump brand? Most
‘mistreated’ president?
Why is Trump/Jared making secret
comm to Putin? Traitor? Subvert?
TrumpWorld – using presidency to make money the old
fashioned way: Who you know.
Jared’s loans: Since 2013, Blackstone mutual funds has
loaned more than $400 million to finance four Kushner Cos. deals -- two of
which have not been reported -- making it one of the business’s largest
lenders. And their ties go beyond the loans. Stephen Schwarzman, Blackstone’s CEO,
heads Trump’s business-advisory council and was in Riyadh
with the president and Kushner. The Saudi
promise to invest in Blackstone’s fund drove the firm’s stock up more than 8
percent.
Jared’s art collection worth $ millions not disclosed in
required disclosures.
Rich Russians
buy Trump property. “Integrity”
coat arms gone; now “Trump”
Book
by Ivanka being pushed by our State Department—is this legal?
*************
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!
GM
denies diesel emissions scam on trucks
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?
SCOTUS allows no
knock home invasion by police who won’t even pay for injuries.
SCAMS:
The federal government is undergoing a rebranding agencies under
[Trump].
NC GOP working hard to exclude Dem voters with new
voter ID bill
Ignoramus Award:
How our government wastes our money:
$40 Billion system has
hit target only
9 of 17 tests since 1999. Kim has 50% chance!
EpiPen, daughter of
WV Sen Manchin overcharged
us $1.27 Billion CA single-payor?
Where have all the jobs gone?
nursing
and accounting show growth while others show decline.
Understand the formulas
that do the hiring now: not grades, tests, school pedigree!
Drivers and Sales: https://www.monster.com/career-advice/article/50k-no-degree-jobs
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/
Miracle:
Ricky
John Best and Taliesin Myrddin Namkai Meche laid down their lives for others.
Memorial
Day for them too. Two strangers who stopped a man provoking two women.
IAN
41 Watchung Plaza, B242
973.746.2014
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