Friday, March 9, 2018

Earn 8.5% a year Buffett's way

Would you rather earn 8.5% a year or 2.4%?
Buffett won his bet with 5 Wall Street ‘professionals’ that the Vanguard 500 Index fund would provide a better return than the pros. The Index fund returned 94% vs 24% over 10years. Why don’t most investors use index funds? Most think the expensive Wall Street ‘professional’ managers are smarter than the market itself. Managers take a lot of fees from investors but 95% of them fail to match the market. No manager knows the future. No manager can know all the conditions affecting the companies. Luck has role.
Bet on Buffett’s strategy not on Wall Street’s ‘experts’:

Warren Buffett provides FREE advice on how to beat the Wall Street pros
He bet a market guru on Jan 1 2008 that his SIMPLE advice would beat the professional money managers. He took a bow in his annual letter to his fund owners:
“A virtually cost-free investment in an unmanaged S&P 500 index fund would, over time, deliver better results than those achieved by most investment professionals …” And his choice did after inflation—8.5% a year vs 2.9%. “American investors pay staggering sums annually to advisors, often incurring several layers of consequential costs,” and with little to show. Buffett’s final message: “As an investor’s investment horizon lengthens, however, a diversified portfolio of U.S. equities becomes progressively less risky than bonds.” Read how a really successful investor earns over 19% a year.

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.
For help with complicated returns:

Should you sue your employer’s 401k plan?
Retirement lawsuits are on the rise so employers are taking steps to protect themselves.
Experts warn that high fees, lack of investment options or poor investment options and breach of fiduciary duty are going to cost employers. Fee lawsuits have “exponentially increased over the past two years,” says Nancy Ross, a partner Mayer Brown in Chicago. “We saw a lot of it last year and we are seeing a lot of it this year.” Employees claim they are hurt by high priced retail mutual funds rather than lower cost institutional mutual funds, she says. For employers, it is cheaper to settle than to fight. Second, employees claim investment options include funds owned by the plan sponsor making them poor performers. Third, self-dealing, kickbacks and overpaying plan advisors are alleged.

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 if you have a refund for a previous year—there is over $1 billion from 2014 alone. 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: If you have a simple return: FreeTaxUSA or FreeFile:
Use your refund to fund your tax-FREE IRS approved account:

2018 new tax deductions for wealthy people
Trump removed the income limitation on certain deductions. Medical expenses and charity remain important factors that help avoid taxes. For some, bunching together these categorical expenses will help overcome itemizing thresholds. Investment fees are no longer deductible so consider alternative advisory services. The AMT forced some to pay tax despite having substantial deductions. For example, Trump had to pay $31 million in AMT in 2005 despite owning $ millions worth of buildings with tax deductible depreciation. His new law removed the AMT so he is free to live almost tax FREE. His new tax law retains the deductibility of real estate depreciation. In his case, he paid 25% of $153 million in 2005 taxable income instead of the less than 4 percent that he would have paid without it. The Tax Credit Class will again avoid paying their fair share.

10 Best USED Luxury Cars Under $30,000
2015 Acura TLX          VA Price $20,800 37,000 mi
2015 Acura RDX         VA Price $23,700 36,000 mi
2015 Audi Q3              VA Price $26,500 36,000 mi
2015 Audi A3  Prem    VA Price $18,700 26,700 mi
2015 Mercedes CLA   VA Price $24,500 20,000 mi
2015 Mercedes GLA   VA Price $24,800 45,000 mi
2015 Cadillac ATS       VA Price $24,000 22,000 mi
2015 Lexus NX           VA Price $30,000 22,000 mi
2015 Infiniti Q50          VA Price $23,000 36,000 mi

Is a ‘Digital Annuity’ right for you?
Wall Street has come up with a new trick for the old high-cost deferred annuity. The new ‘lipstick’ on the old pig is called Blueprint underwritten by New York Life and Guardian Life. After the initial investment, buyers can increase their retirement income stream with deposits of as little as $100 a month to create what Blueprint calls “a personal pension.” We did this at Thomson McKinnon in the ‘80s, calling it IRO—Individual Retirement Opportunity. Of course these annuities are loaded with fees—1-4%. Don’t be surprised to hear about Blueprint on “The Today Show” as one of the investors is Jean Chatzky. The ‘lipstick’ is this: “For every dollar you put in, you know how much more you will have on a monthly basis when you retire.” Future projections have always been the juice in selling annuities—and also their downfall. The ‘guarantees’ are based on promises about rates of return in the future and no one knows rates for sure. Wall Street is out to capture 401k money as we invest for retirement. An annuity is an expensive way to mimic (at lower payouts) the guaranteed pensions of the past. Don’t be fooled by lipstick.

What do you do with your RMDs?
As a tax preparer, I hear about where people put their refunds and required distributions from pensions, IRAs, etc. all the time. RMDs are annual amounts the IRS requires you to pay tax on starting after age 70.5. Some use the RMD to pay bills—some are still using a mortgage for tax deductions. Some up their charity giving for the same reason. Some travel if they like that kind of thing. Some put it back into savings. Of course they can’t fund an IRA but they can use it to convert a traditional into a Roth by paying the tax due. Follow the rules: There are no income or age limits on converting any amount from a regular IRA to a Roth IRA. The earlier you do it, the more tax-FREE income you may have later. I take $10,000 a year from my IRA, pay income tax and add $10,000 to my Roth IRA so that in 10 or 20 years, I have double or triple the amount. If I don’t need it later, my heirs will have tax-FREE income too.

Make America, “The Don” Great Again

Palace intrigue: Trump’s movie will star himself and family in 2022. Putin does cameo.
(Putin has videos of the star in compromising XXX sex acts we can’t describe here)
Trump’s stage name is ‘David Dennison’ when others pay $130,000 for his sex.

A movie is the only way to understand how Putin got Trump elected. Will Putin poison him?

Jr didn’t. ‘collusion;’ … or 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

“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)

            Take the guns first, go through due process second,” dictator Trump said.

How Govt wastes our money: Naked politics at work
Trump mob thinks we are really stupid and don’t notice using rank to get special deal.
            How businesses see The Don’s little kingdom in Washington. Right on target!
Trump warns friends to dump steel stocks before he announces tariffs: Huge profits.
Congress uses tax money for personal guards but not a cent to protect school children.
Trump makes it harder for patients to get Medicare home benefits: Hospital costs up.

GOP ending controls on big banks so create another global meltdown costing homes
            Last big bank pays $500 million for destroying investor values in 2007 3/6/18
You may never collect a settlement from a bad broker since brokerages don’t enforce rule

Part- time jobs and the pay:  time to follow your passions—all expenses are deductible.
Burgers by robot—no days off, no benefits, no ‘issues’, no sick, no wage hikes.
Home health aides and managers for the thousands of seniors turning 70.
Gun-toting guards in schools: Train to kill intruders/students under Trump mandate.

Who owns your account now?
Ameriprise fined $230,000 selling very high fee mutual funds costing us $1.8 million.

Few survive AR 15 gunshot since it has 3 times the force of handgun to obliterate you!

41 Watchung Plaza, B242
MontclairNJ 07042

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