We have just 15 years to prepare
for 25% cut in Social Security
The SS Trust Fund will be
depleted in 2034 according to the 2017 Report: https://www.ssa.gov/OACT/TRSUM/tr17summary.pdf.
“The Trustees recommend that lawmakers take action sooner rather than later to
address these shortfalls, so that a broader range of solutions can be
considered and more time will be available to phase in changes while giving the
public adequate time to prepare.” We should not wait for our reps to do
something since none of them need SS benefits. Most are millionaires. Our SS
benefits are already taxed, depending on our incomes so the tax will be
increased. The current FICA tax will likely
be increased too so we will have less take-home pay. Our reps
did not ‘reform’ the tax code that allows those earning above $127,200 to
avoid FICA. So the Trust Fund deficit could be fixed by taxing everyone but
this is not likely after they just cut taxes on their rich and donor class. We
have 15 years to invest.
Make up for the 25% cut in your
benefits: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300
Low-cost meds under attack: we need
single payer system
Generics cost little to make so
profits are low. Good for us if we had a single payer system which bought huge
quantities in bulk at cost. However, the current system works on high margins
for a few drugs that are featured 24/7 on TV. Also large makers bribe
doctors to push new drugs to patients. Largest
generic drug maker has laid off 14,000 workers, closed 40 plants and others are
folding. Four middlemen orgs buy as coop and jack up prices for additional
profits. This is where a single
payer would keep prices low by replacing the ‘middlemen’ to buy direct. EpiPen
price increase to $300 gives the opposite impression to us. Single
payer systems around the world buy direct and pay 40-50% less for same drugs.
Medicare, the largest buyer of drugs, was outlawed
by drug lobbyists in Washington from negotiating bulk rates. Contrary to
drug maker propaganda, US
patients DO NOT receive better care thus living longer than single payer
countries.
Buy low-cost health care: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083
Help your graduate get started on
their Wealth Reserve
The number one regret that I hear
from clients is “Why didn’t I start investing earlier.” Perhaps it was because
no one learned about compounding in high school so they blew their first good
paycheck on cars or wild parties. Why didn’t we learn this chart in school: http://www.saferchild.org/power/.
By investing $2,000 a year for 8 years before age 26, we transform $16,000 into
$1,000,000. And now a young person can have $1 million tax-FREE thanks to an
IRS trust. How does it work? Each year you earn an average of 10% on all your contributions
and earnings from previous years. So by age 30, you would have over $36,000; by
age 40 $95,000; by age 50 $247,000; by age 60 $707,000; and by retirement
$1,000,000. Actually if you kept it going by withdrawing $100,000 a year you
would still have about $1 million. Of course, in 40 years, your $1,000,000
would have the purchasing power of about $250,000 due to inflation. However,
you and your employer may be funding a 401k or IRA also.
Give them the miracle of COMPOUNDING:
https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957
Is ‘factor based investing’ right
for you?
Our industry has come up with
another way to excite the sales force to sell a new concept in order to move your
money (more fees) to something new—almost anything new. This term has become
popular with the advent of ETF or an index that can be traded daily to increase
fees. Factors
are the underlying exposures that explain and influence an investment’s risk.
For example, the underlying factor affecting the risk of a broad
market-cap-weighted stock portfolio is the market factor, also called equity
risk. That is, we can consider market exposure as a factor. Instead of holding the
largest company stocks in an index over time, the idea is to customize a
portfolio so your advisor convinces you that they can control more or less risk
of declines. A cool idea but no one has proved this can work over time.
Advisors like to compare their new ‘power’ to control risk by claiming it is
like your genetic predisposition to specific diseases. Factors that they think
they can use to customize your investment outcome are “Market, Value, Size,
Momentum, Low volatility, Term Credit.” I would call these items ‘influences’. Most
of this is common sense but the identification allows advisors to sell you on
the idea that they know which ETF is best for you. They don’t because no one
knows the future; just the past.
Keep it simple for best results: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X
“How much do I have to invest” is the
most common question
Many people ask me this question.
As you might imagine, “It depends” is the answer. It depends on your goal and
your age. If you want to accumulate the most you can and you are in your 20s,
10% of your gross income will provide an adequate sum. Assuming average income
of $30,000, $3000
a year for 40 years may provide $1.6 million or $400,000 in today’s
purchasing power. If we start later, we need higher amounts to hit this goal
because it takes time
for compounding to work and create wealth. It takes $5,000 for 30 years to
hit $1 million or $400,000 (inflation-adjusted). If we only have 20 years for
compounding to work, we need $15,000 a year to hit $1 million
inflation-adjusted $600,000. Assumes inflation 3%;
stock market index 11%.
Add 25% bonus with Tax-FREE
wealth: https://www.amazon.com/Tax-FREE-Wealth-How-laws-free/dp/1475089236
Has your advisor been preaching an
“Advice-centric” experience?
Advice-centric experience is not
what clients are looking for. Rather we want what might be called client-centric
exploration. Advisors should take the time to find out what you are
thinking and feeling before they start rolling advice at you. My industry
is finally acknowledging that people don’t want just things:
transactions—securities, insurance, annuities, package products, etc—thrown at
them. Forget the lingo and the ‘sizzle’ wow talk. What people want are solutions
that are “best for them” in their situations, now and later. Our industry has
harmed a lot of people with its business model. It is a sales ‘killer’ culture.
Most security sales people wouldn’t know what is “best for the customer” even
if they were their own customer! Most don’t use direct-to-consumer
manufacturers so they don’t know “the best” “low-cost” products. Financial
firms are sales firms and the sale is
what makes the “world go round” for them. This is why the “Fiduciary Rule” was
killed at
their request by Trump. The rule goes back to English Chancery law when a prominent person (trustee) had to act
for another’s benefit with no conflict
of interest. Most advisors can’t ‘put themselves in your shoes’ but at
least they could explain their conflicts and all the costs of the product. But
that would require a non-sales culture.
Use the
best firms that follow the Rule: https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275
****************
Make America, “The Don” Great
Again
FBI
finds answers in ‘The Don’s’ consigliere’s office/home/hotel
(Dictators often have delusion they themselves ARE their
country)
Putin’s influence: Manafort,
Flynn, Gates, Page, Stone, Papadopoulos, Sater, Zwaan jailed,
Prince,
Jr,
Jared,
Sessions,
Cohen, etc
Trump
lied about time making ‘pee’ tape. “My head never hit a pillow” he admits.
“The
election is going to be rigged—I’m going to be ‘honest’”
GOP
voter suppression a success: Dems lost because poor don’t have new ID.
Could Trump postpone Nov 2018
election using excuse of Putin meddling needs fixing?
************************
How Govt wastes our money: Congress
spends $1.3 Trillion we don’t have!
Trump’s EPA told to ignore
science for clean air and water
Trump
pushes global arms sales for Lockheed not global peace.
Military
losing its landing sites around the world to ocean: Trump bans report.
SCAMS:
Airline reg about full pricing to
be cancelled so we
won’t know full price till booked.
Trump
to end our access to complaint data about companies we use for loans—fraud
OK.
EPA Pruit explains why lobbyists’
money rules American government
Jobs:
Hot jobs
starting at $76,000 https://howmuch.net/articles/there-are-the-hottest-jobs-in-us-2018-lots-of-opening-and-dream-salaries
Who owns your account now?
Who
owns the land that climate change has made into the ocean--Mar Largo wash
away?
Amazon
can deliver to your car with encrypted authentication process to open it?
Steal?
Lost SS
card? Free replacement online at https://blog.ssa.gov/1-million-social-security-replacement-cards-and-counting/
Can we trust Ari
Melber to explain the legal case against POTUS?
Miracle:
Afgan vet gets first
ever operation restoring his privates
IAN
41 Watchung Plaza, B242
973.746.2014
Alerts
