Friday, February 23, 2018

Did you lose money by selling?

Did you lose money by selling into the down market?
Most Vanguard mutual fund owners did not follow Wall Street’s advice to sell to avoid losses. Amid concerns that passive index fund investors would sell out of their positions at the first sign of a correction, clients at Vanguard showed little response to the stock market volatility of the past few weeks. Long-term investors (not speculators) don’t panic. They don’t do brokerage program trading. Vanguard announced that it had passed $1 trillion in 401k plan assets as of the end of 2017. Vanguard’s advice: Stay diversified.
      Tune out the noise.
      Control what you can—costs.
      Revisit your asset allocation.
      Set realistic expectations.
Maybe we all should listen. Stocks are on sale:

Why did Trump claim his wealthy friends hate him for the new tax law?
Most tax analysts say he lied about this claim. In fact, some project that Trump saved himself over $11 million with the stroke of his pen. The new bill allows people to deduct up to 20% of the income they get from pass-through businesses. Real estate investors like Trump obtain special benefits from the law. Most of Trump’s friends will benefit greatly from the elimination of the AMT and estate tax. Using estimates from his 2005 return, Trump would save $31 million each year. Plus his wife and kids get to spend all of the $3-10 billions he leaves instead of just 60% of his net worth. Wow, that is huge for most of his friends. We must conclude that Trump’s statement was ‘fake news’—he and his friends will pay less for years and run up our debt so much that we will need to pay more taxes after 2026. His plan gives permanent breaks to friends but ours would end in 2025.
Protect your future income using an IRS Tax Shelter:

Many corporations close US locations even with $millions in subsidies/incentives
Trump promised to bring back or save jobs for those with skills of the old America. But even after receiving tax-breaks, perks, subsidies and incentives of over $10 millions, Harley-Davidson will close its Kansas plan despite pleas from Congress. Why? Sales are down. 1000 of people will be affected. This was their American Dream—work for a great American company and enjoy the community built over the last 20 years. Even with foreign sales growth, net income plummeted by more than 80-percent in the fiscal fourth quarter of 2017. The Kansas output will move to York PA’s plant. Trump can do nothing about the changing demographics of customers. Take Intel chips. Why expand $5 billion plant in Israel? Disruptive change continues to benefit a relatively small group of mega-cap companies with dominant technology platforms. Robert Reich has pointed out that those who have lost their jobs to foreign outsourcing or labor-replacing technologies are unlikely ever to get them back. One study find that trade with China and the rise of robots are to blame for millions of the missing jobs. Other popular scapegoats, such as immigration, food stamps and Obamacare, did not even move the needle.
For those who found new jobs, the pay is awful. For instance, Ford will add 1,200 jobs in Chicago at HALF the pay current workers made when they started. Many people will lack the money needed to buy all the goods and services the economy can produce. The economy will slow and the Trump tax revenue will not meet his promises. Our taxes will need to go up to pay for the wealthy tax cuts.

Buffett’s SIMPLE investment strategy beats Wall Street’s best traders
He beat Wall Street ‘professionals’ with his strategy of just owning the market. Buffett's index fund gained 94% over 10 years. Protégé's selected funds gained 24%. His strategy provided over 11% since 1976. Your money doubles every 7 years. The Master of investing, Warren Buffett, proved it, again. You do NOT need Wall Street 'professionals' to reach your financial goals. In fact, if you use them, you may give up 63% of your potential accumulations because of trading, charges, commissions and fees. Buffett’s SIMPLE strategy earns over 11% per yearDALBAR keeps track of returns and found that the average managed-account equity investor earned just 3.79% a year over 30 years. The benchmark returned 11.06%. You and I can start beating Wall Street with one phone call. Earnings are tax-FREE after age 59 ½ in special account too.
Earn 11% a year with Buffett’s SIMPLE strategy:

Will your 401k provide enough income in retirement?
Trump promised everyone would have more money from his new tax law. Will this help you have enough later on? Since our lower tax rates will be eliminated by 2026, you need to use your extra income to boost retirement savings now. Most Americans will NOT end up with enough to continue their present lifestyle after they stop working. Even now we see more workers re-entering the labor market because they need money. Surveys say 55 to 64-year-olds have an average of $104,000 and those 65 to 74 have $148,000 in savings. If that money were turned into a lifetime annuity, it would only amount to $310 and $649 respectively per month. Adding SS benefits of $1,342 a month would mean about $2,000 a month. Can you live on that?
The folks that have enough retirement income are those that put their investing on automatic: They had their pension, 401k, or IRA trustee debit their paycheck so that they were not aware of saving/investing monthly. Some employers even give them money. Our government lets us deduct these contributions during our lifetime so we avoid tax as we save. These folks have $5,000 a month not $2,000 a month to spend using automatic.
Have enough:

Is it time to claim Trump’s 20% free profit with rental real estate?
The Trump tax law offers a unique opportunity to participate in tax-free earnings from real estate investments. Home values are climbing in most places but 2018 is not 2008 and you need to know the new rules. Smaller lenders want to lend if you have a 740+ credit score and over 20% down. Owner financing and HELOC loans are alternatives. Shop for foreclosure bargains. Make sure the rents cover ALL your expenses. Line up handymen for help. Hands-on owners usually have greater success. Use LLCs to protect your assets and collect your 20% tax-free profits. You may not benefit from the end to the AMT or estate tax like Trump, but rental real estate is one of the favorites of working millionaires. You can create a stream of income that can keep pace with inflation.

Best last minute tax saving move
Tax filing began Jan 29 even though all the forms are late in arriving. If you find you owe tax instead of hitting the refund button this year, you may still be able to claim your refund. You can reduce your 2017 income and receive a tax credit. Credits reduce your taxes dollar for dollar. In effect, Uncle Sam can help you reduce taxes AND save for retirement at the same time. On line 32, Form 1040 or line 17, Form 1040a, you can enter up to $5,500 ($6,500 over age 50) as IRA contribution to reduce your income. If you meet the qualification, a credit will show up on Line 51, Form 1040 or Line 34, 1040a. You subtract this credit from your tax. EG: Income $66,000: tax refund is $3,335, without IRA contribution. With the contribution, the refund is $4,392 or $5,553 if you both make the contribution. Credit against tax is $400. IRS checks to see you have IRA.

Why some Americans can’t file … yet
Congress had second thoughts about their “well-crafted” tax law and so on Feb 9 they passed a 2019 budget with some extra “extenders” which expired in 2016-17 but were made retroactive in 2018 for 2017. Yes, they can do that. Anyway, if you have three of the ‘outlawed’ deductions, you will have to wait to file or file an amendment. The IRS was baffled saying, the IRS is “reviewing the legislation signed Feb. 9” and will provide information when they can. Meanwhile, if you bought storm windows and doors like I did, you wait for a new 1040 form. Currently, that line says "Reserved for future use." The IRS will have to destroy millions of forms and instructions to get it right. 18 million tax returns have been received and processed. GOP seems eager to waste as much tax money as possible given The Don’s tank parade and tax forms that could have been avoided. The parts that most likely impact us include extensions for:
  • exclusion from gross income of discharge of qualified principal residence indebtedness [mortgage modified/forgiven]
  • mortgage insurance premiums treated as qualified residence interest
  • above-the-line deduction for qualified tuition and related expenses
  • credit for nonbusiness energy property
  • credit for residential energy property
  • credit for new qualified fuel cell motor vehicles
  • credit for alternative fuel vehicle refueling property
  • credit for 2-wheeled plug-in electric vehicles [Zero’s “massive torque”]
If you own horses or a mine, there are goodies just for you here.
If there is a bigger refund or a cut in your bill, you can ask your preparer to fix it with a 1040X. You need to recalculate your old return and tell the IRS the changes only.
Congress was so busy last year repealing our health care, they didn’t have time for these.
I will file late for a couple of $ hundred extra. Congress ran up debt further to $21T. I used to be a Young Republican but they changed their beliefs, morals, ethics, standards.

IRS free filing sites avoid $300+ cost of filing taxes
Commercial tax prep sites offer expensive loans as advances on your refund but you can keep your whole refund using the IRS free filing partners. Refunds can be in your account within 2-3 weeks. Remember: IRS does NOT call you. The average refund is over $3,000. Check your refund:
You can create a tax-free retirement fund of $500,000 with that amount each year. If you need free tax preparer service for your 1040, use AARP Tax Aides near you. Bring last year’s return and ID:
Use your refund to fund your tax-FREE IRS approved account:

New cars lose 40% of value—are new cars worth it?
Many cars just last longer. Some claim 70% of their cars are still on the street. Used luxury cars have a history of reliability and safety. The first cars with disc brakes and all around airbags were luxury brands. New cars have more problems because of innovation and technology that may attract new buyers. Without a warranty, the consideration must be: how much time can you afford to spend without your ride? If we can spend or finance $16,000 for transportation, we have great choices. Shopping could not be easier. You don’t need to be good at haggling since all the information you need is online. Thus you get an idea of what your trade-in is worth at and then look at the JK Power dependability stats at Look up the best values in your area at and You can test drive anywhere but you may want to travel 60 miles to pick up a bargain. Is gas mileage or comfort your important criterion?

Why some people ‘buy back’ a state pension
A client worked in a state agency for years and left to take another job. 14 years later she got back into the state public education system. After another 14 years, she was about to retire but her pension would not have been as great as if she had stayed in the very lucrative state pension system. She was offered a chance to buy back the years she missed so her pension amount would be greater. At age 65 she had to pay $95,000 to get back those 14 years worth of pension credits. How did she do it? She used her one asset—mortgage-free home valued at over $250,000—to obtain a HELOC with no closing costs. Now her pension monthly income covers the HELOC and she may receive over $300,000 extra during her lifetime payout. Plus, the home equity loan interest is deductible.

Make “The Don” Great Again

Jr didn’t so NOT ‘collusion;’ … but treason!

Trump Is 'Doing Putin's Job for Him' by Attacking our FBI: McCain
Mueller indicts 14 more conspirators for illegally helping Trump win election
How many other people can Trump blame for Putin’s meddling?

GOP House will never impeach their ‘Savior’

“I have absolute right to do what I want to do with the Justice Department,”

Bannon and I wish to “destroy the state”–our government: “I want to destroy
FBI doing its job following Kremlin ‘advisor’, Page, a suspected Putin spy

Trump can’t be a racist: he had a TV show”
“Why are we having all these people from ‘shithole’ countries come here?

‘I’m the only one that matters’ Mob Boss, Nov 3, 2017
The Don’s enforcers lie re: contacts to Putin and list longer: Why all the lies if innocent?

GOP suppresses vote: can voters make America normal again?

‘I was elected President.’ (to destroy ‘the state’)
Dictator’s greatest weapon is fear: Dems are evil (TV ad)

How Govt wastes our money:
Cutting regs means we pay for Black Lung treatment rising in miners again.
Trump gives military more than they asked for to prepare for nuclear war!
            Total US government discretionary spending in 2018=$1 Trillion.
This is how big companies bend our govt reps to give them a better deal: fake testimony,            staged events, fake publisher, revolving govt service, fake supporters, etc.

            Intruder fires 15-20 bullets a second but it takes over 2 seconds to shoot back.

Digital Altitude/Aspire caught stealing $14 million from victims of MLM scam.
Apollo Mental Clarity endorsed by Ben Carson Trump’s Housing Sec. is snake oil.
RXBar & NatureMade Omega-3 Xtra Blend may make false claims about power.
SS is underpaying widows and widowers by $224M: they can claim survivor benefits

Many in the White House have been unable to gain full security clearance. Putin payoffs?

School safety money slashed in Trump budget--$25 million cut ends guard jobs.
Gun makers of AR 15 $361 hiring to make teacher guns to ‘protect’ schools.
VW to raise the wages of around 120,000 workers in Germany by 4.3 percent.

Who owns your account now?
MetLife has failed to pay pensions to retirees: MetLife got money to pay $86 billion but kept the money.

Buy your next car at Costco? Yes, they offer fixed prices from a local dealer. No haggle.

Unless Americans use absentee ballots, Putin will change votes in elections again.


Acts of kindness from police: 2 troopers pay for flight of Parkland mourner.

Aaron Feis gave his life so that others might live.

Prevent school children’s deaths. Hunters kill innocent animals instead.

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