Friday, July 21, 2017

Winning in an unfair market

MONEY BALL for Investing: Winning in an unfair market
Your family beats Wall Street in the series because you use Billy Beane’s lessons.
In 2002, Billy Beane did the impossible. He knew he could not afford to buy replacements for Damon, Giambi and Isringhousen, so he hired an unknown economist wonk who had a system. Brad Pitt (Moneyball) explains his take on the system to his scouts. To win we need runs, so on-base percentage is critical. Does not matter how they get there—walks are good. He hires cheap players who have high on-base ratios. Scouts complain the new are not “baseball material” or too old or can't play positions or girl friend is ugly.
            The “professionals” think he is nuts. One is fired. Since the manager, Art Howe, doesn't buy it, he does not use the new players. Billy trades Art's players away so the manager is forced to use Billy's. Billy actually explains to the team how they can win by using their strengths—just get on base. Belichick's “Do your job.”
            In his book, Michael Lewis tells us how the economics of baseball work and how Billy Beane, as a failed player, made history by NOT following the professionals' 'expert' knowledge.
            How can your family beat Wall Street 'professionals' over time? We take the Billy Beane approach.
            First, we acknowledge that we have a small budget for investing. We can't afford the hedge funds, offshore tax shelters, and expensive Wall Street money managers taking 2-3% a year. We use our economic ‘wonk,’ Warren Buffett.

GOP House claims to be conservative but gives Defense a slush fund
GOP votes to raise what we owe in national debt even more than Trump asked for so Pentagon can waste more. Amendments prevent a new round of base closures (votes), establishes a new bureau for military in space (plus NASA), limits an arms treaty with Russia, requires congressional notification of cyberoperations and prevents recognition of Russian sovereignty over Crimea. Bases stay open to keep votes for GOP that overspend. Same group wants to cut $800 Billion for health care for the poor. Poor don’t live in the GOP districts, as the GOP drew them recently. Gerrymandered into vote ghettos

Do you know what you are paying your advisor?
Most of us have no idea how much we pay even when our advisor gain/loses our money. Schwab provided this telling optic:
There are so many costs that it is no wonder that Wall Street has been so successful in hiding ALL their costs that we pay:
Redemption Fee
Why is it important? Because over time, we lose more and more. Example: $10,000 investment in Vanguard Energy vs Fidelity Energy—over $2,000 more profit.
Plus, this list does not include taxes which funds report in December even if you bought your shares late and had no gains. It does not include your advisor’s annual account fees and charges, typically 1% a year. The average ‘managed’ account earns just 3.79% while the unmanaged low-cost index fund earns 11% OVER time. Your advisor may have taken outsized profits last year as MorganChase did. Your costs=their profit.

BEWARE: GOP will allow cuts to our Social Security and Medicare in 10 years
The Social Security and Medicare trustees issued their 2017 annual report. “Both Social Security and Medicare face long-term financing shortfalls under currently scheduled benefits and financing. The Trustees recommend that lawmakers take action sooner rather than later to address these shortfalls.” Insolvency is on track for 2028 for the disability fund and 2034 for seniors. Insolvent, however, does not mean empty; it means that the funds would not be able to completely fulfill its debts to the public. Instead of funding the system, cuts in benefits will begin soon as GOP head Ryan has planned. GOP wants to increase the enrollment age. High income people still are exempt from full tax.

Are you the victim of Wall Street Sales Hype?
Many investors give up 30-63% of their total investment potential over time.
We are mislead about performance, fees and special product benefits we are promised. We fall for the tricks like “this strategy can’t miss” and “rare once-in-a-lifetime opportunity to become incredibly rich.” We believe that these securities can make us rich. FACTS: The average investor earns only 3.79% over time. We believe in all types of sales hype. Our advisor convinces us that the research they do will assure us of enough for our kid’s college and guaranteed retirement income “we cannot outlive.” Even the wealthy are tricked by the “sophisticated” traders and hedge funds. Buffett says they don’t listen to him because they think they are smarter or have an inside track. It is time to hear the other side of the story—from one who helped produce your advisor’s favorite marketing tricks and hype. Wall Street has us chasing fewer good deals because more investors are finding the alternative that lets them keep more.
You don’t have to give up 63% to succeed: dp/1548534382

New TrumpCare with Cruz junk insurance change
Most GOP governors, medical providers and the insurance industry see the new problems with TrumpCare. "We think it is unworkable," said BlueCross BlueShield. She predicted skyrocketing costs for taxpayers also, stuck with the bill for sicker patients. It gives higher tax deductions to upper incomes but employers may see it as an invitation to drop health benefits. It gives states more money to shore up private insurance, not Medicaid. Medicaid subsidies will be phased out and so the poor, sick and elderly will die prematurely. Insurers will offer junk insurance again (“all they have to do is dust off how they did business before ObamaCare”) so many with a ‘policy’ will find it is void with one-day hospital visit. American Medical Association is not happy with the opioid grant. People in “drug rehab need comprehensive health insurance.” NV gov Sandoval: "You think about the 210,000 men, women and children, senior citizens, the drug addicted, the chronically ill," Sandoval said. "These are people that used to get their treatment in emergency rooms, if they got any treatment at all. I keep going back to the fact that they are living a better quality of life." Most states have “single-payor” system now—one insurer can raise prices like EpiPen. Thanks to ObamaCare, Sen McCain’s surgery is paid for by us. Congress get surgery before ObamaCare repealed! Whatever happened to Trump promise to make health care better for everyone? PLUS Congress is exempt from their law. 74% Americans want fix with DEMs.
TrumpCare destroys America’s promise to aid the poor, sick and elderly:

Ultra wealthy grow assets; are you?
The number of people worth $30 million or more is growing according to the World Ultra Wealth Report 2017. It reveals there are 226,450 individuals worth $30 million or more around the world. That signifies a rise of 3.5 percent from 2015 levels and represents $27 trillion in assets. Average American incomes are rising at a much lower rate; widening the gap between the rich and poor. Innovation coming from immigration and foreign students was curtailed, causing more Americans to give up the dream of prosperity.
Most important issue: what do you do with your 401k or retirement accounts—your income for the future? Many people take the money and pay a big penalty and taxes. This stops your assets growing. It is TIME not stock-picking that wins the wealth game. Rich people don’t work harder than you do. They use compounding like Buffett and so can you. You could have $250,000 or more by leaving your money alone. Best answer: let an IRA trustee roll it over into a low-cost IRA account so there is no penalty or tax. More important you let your money accumulate tax-FREE and low fees at Vanguard, TIAA.

What can you do if the market crashes?
To grow your investments you must think like a business person and use Best Practices: Compound high earnings. When the market is going up, many writers earn their living voicing fears. But before you decide to “sell all before the crash,” remember that there is no place to hide. Every market goes down and up. Business will continue. Look at the record: enter IVV at and click “all” at Zoom in the chart. Since 2000 there have been 2 serious corrections, but your overall gain is 77% as of July. Now, I ask you, where are you going to get that gain? If you sold out in 2002 or 2008, you would have missed the sharp rebounds. If you went to bonds (BND), you would have 9% since 2000. “The stock market is a device for transferring money from the impatient to the patient." Warren Buffett

Need cash? Is a home equity line right for you?
Consider credit union as your source for money when you are temporarily strapped. “You get more back than you would belonging to a bank,” an observer says. “You get better loans, you get better products and overall, we like to think better service.” Banks don’t need your loan and but credit unions do because they serve the public. If Fed rates go up as expected, you will be happy you have your rate even if you don’t need the money now. Some do not require union membership to qualify.

Do you need a reliable car?
Consumer Reports has its list of 10 but what if you can’t afford them? Many wealthy people who can afford $80,000 for a new model every year, say they prefer to buy the slightly used versions. Cars lose value over time and the rich don’t like to lose. Used luxury is a value to them. Reliable used cars are a value because they want assets that grow in value not lose value. So try used luxury or just used family transportation like the Camry or Accord. I found a bargain: 2012 Camry for $11,000 only 54,000 miles. What about a SUV under $25K? OR 2014 Acura $24K? Dangerous SUV to avoid.

Goal: Everyone knows the Trump brand around the world
Trump supporter is upset with DC and future; overlooks his sins

Putin has captured Trump’s patriotism—Don sees no collusion with enemy
Trump gives in to Putin: removes CIA from Syria leaving moderates to scatter.
Trump group places mob ties above country; it’s about money and power not US service.
Russian lobbyists guide Trump crew and GOP on business interests toward Russia.
Exxon Tillerson pays $2 mil fine for violating sanctions out of his own pocket change.

Trump is still just a mafia contractor from Queens—Fred taught him to be The Don.
Trump tells Senate to end ObamaCare—Double uninsured Americans overnight

Russian spy who met Jr and Putin lawyer says: never use email to convey secrets. Jr deaf.
Even Fox calls TrumpWorld on lies. Why would Putin insider come to NY for nothing?

TIME cover that should replace the fake ones in The Don’s clubs worldwide.
Mobsters don’t call the FBI when doing an illegal deal with fellow mobsters.

Vatican calls Bannon out on his extremism--“not too far apart” from Islamist extremism

Putin’s hackers now into our nuclear and utilities. Trump denies NSA proof.
Putin will have full access to our 2018 elections since Trump doesn’t want DEM win.
15 state voting machines have been hacked already: Putin ready. GOP does nothing.

Trump now for the Iran nuclear deal he promised to kill.

Theory: Trump got Russian funding for business so OK to help ‘lost cause’ campaign.
No one expected him to win so no harm getting Putin help. Don owes Vlad money!

TrumpWorld – using presidency to make money the old fashioned way: theft
Jr meeting of Putin lawyer includes Putin real estate ‘banker’ w/ NJ front IBC.
Ivanka using her Dad’s brand to sell you foreign goods at 89% markup.

Dictator talk time:
“When the president does it, that means it is not illegal,” Richard Nixon
Trump asked advisers: power to pardon family, even himself 
“The president can’t have a conflict of interest.” The Don above the law?

“When the president does it, that means it is not illegal,” Richard Nixon

Regulators are the only protection against corporations since we can’t sue anymore

Congress uses ObamaCare: Start your ACA applications now if you need insurance.

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?

Woman shot dead by cops after she called 911 for help about attack. Cameras off ?
Congress gives itself FREE home security system; maybe carry guns in Congress.
Cops plant evidence but caught this time; Camera on—oops “happens all the time”

Traitor Flynn wants us to pay for lawyers and defense against FBI. Ask Turkey Putin!
Traitor Page wants you to buy his “tell all” book working for Putin and Trump.

Ignoramus Award:
Global warming is real: 1942 hikers found in melting glacier – thawing out now!

Japan to dump radioactive waste in ocean—no more fish for some years. 

How our government wastes our money:
Trump publishes private info of the citizens who complained about voter-fraud fraud

Where have all the jobs gone?
Job interview will ask for your salary requirements. Answer: I will research the range.
Which job board sites are best for your job search?

Learn Spanish so you have another skill for jobs.

FDA: OK to use altered genes to cure cancer! Technology to reprogram immune cells called T cells to target and attack malignancies.

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