Friday, September 28, 2018

Expecting negative returns in 2018?

Are you expecting negative returns?
This year is on track to deliver the lowest share of positive returns adjusted for inflation across 17 major asset classes since 2008, according to Morgan Stanley. Too bad. Our clients have stayed with their balanced portfolios because we can’t predict the future of the markets. This is a snapshot of their returns so far:

Total Return Fund Long-term Return Longevity
YTD 2018*                              2017
10.2%                                      21.7% 500 Index                     11.1%* since 1976
 7.9                                           3.2% Energy                            10.7% since 1984
10.4                                          17.9% Extended Market          10.9% since 1987
13.2                                          19.6% Health                           16.5% since 1984
 3.5                                           42.9% International Growth     10.8% since 1981
14.3                                          29.5% PRIMECAP                 13.9% since 1984
10.5                                          16.1% Small Cap Index           10.7% since 1960
 0.1                                           10.2% Wellesley Income          9.9% since 1970
 3.1                                           19.1% Windsor                       11.5% since 1958
 6.3                                           16.8% Windsor II                    10.8% since 1985
 8.0%                                       19.7%                         Average 11.7%
*9/26/18                                   Average Annual Returns as of 12/31/17.

Is ‘interactive’ life insurance right for you?
Your annual physical is no longer enough for one insurer. Now they want your ‘lifestyle’ data on a continuous basis or you can’t be insured. Hancock says. The Hook: policy holders are incentivized to adopt healthy habits and pay fewer premiums. On the other hand, insurers may eventually use data to select the most profitable customers, while hiking rates for those who do not participate. And can we trust them to provide the discounts or even pay benefits? MetLife and other insurers stopped looking for beneficiaries so they could keep the death benefits. If the beneficiary does not keep in touch with the insurer, they lose. Life insurance is NOT an investment anymore.

Are you overpaying for car insurance?
This graphic shows the average costs per state for min and max coverage. Are you where you want to be? You may be paying for benefits you don’t need, like life insurance, towing, or full replacement. You may not have claimed all the discounts you deserve. Unfortunately, insurers don’t ask about the items you can qualify for since it reduces their commission. You have to ask to have life and health care insurance removed. If you have this coverage already, you’re wasting your money with a car insurer. Some add accidental death and disability insurance to your premium. Do you know when NOT to make a claim? If you don’t shop around, you never have the benefit of new client discount. Securing your discount adds up year after year.

Which Medigap plan is right for you?
Look closely at your supplement plan. Plan F will cease in 2019. The existing Plan G may be a better deal for you. Consult with your doctor and your records to see what you really need. Plan G provides the most benefits but at higher prices than others. For instance, you get limited foreign travel medical assistance included. Frequent co-pays get expensive. Can you switch to generic drugs? One agent says: “You save about $350 a year on premiums, so it makes no sense to buy F to cover the $183 deductible.”

 Is your Medicare Advantage plan denying service you’re due?
Auditors have found “widespread and persistent problems related to denials of care and payment in Medicare Advantage,” the report said. The fixed per-patient rates the government pays may give plans “an incentive to deny preauthorization of services for beneficiaries, and payments to providers, in order to increase profits,” the report said. Enrollment doubled over the past decade. One-third of Medicare patients are now covered by the private plans. In 2016, the plans denied 4% of requests to approve treatment before it was provided, known as prior authorization, and 8% of requests for payment after treatment. Only 1% of patients disputed the insurers’ denials. Most disputes changed denials to approve. Most plans provide additional coverage, such as vision, dental care, and prescription drugs.
Always dispute a denial: some plans reverse 98% of the time.

Who is this Mueller guy anyway?
He never speaks but his pen speaks for him. 35 so far. ‘Witch hunt’ has 191 criminal charges by this duly-authorized former FBI chief of the investigation. What happened to get Trump elected will require a simplified 2 hour movie to explain all that went down with this ‘Russia’r Trump’ thing. This investigation may be more important than the Nixon termination event. As happened then, our democratic principles are at stake. After all the voter suppression, can the people of America vote to put us back on track? Are our votes counted fairly? Can our Reps govern? Can the FBI do its job? Does donor money control every election? Do we outlaw all the money? How much power should the president have?
Will the middle class survive?

Is a ‘Retirement’ bond right for you?
The retirement bond would not pay back the principal; instead, after 20 years, it would become more like a deferred annuity paying a stable, secure income—but investors would get more bang for their buck. Martellini says the retirement bonds could be offered as transparent, low-cost products that are easier to get out of than a typical income annuity. Someone five years from retirement today, a 61-year-old, would be buying 2023 retirement bonds. The bonds would start paying cash in 2023, and continue paying for 20 years. If launched, the new retirement bonds could be offered in lieu of bonds or annuities to investors. “Annuities are opaque, costly and mostly irreversible unless you’re willing to pay high surrender charges,” says Martellini. Most retirement investors want security and a guaranteed stream of income, but they also want the flexibility to adjust their investments and their potential income stream over time. But most bonds lose value over time so buying a bond locks in low income payments.

How much emergency cash is enough?
Savings, CD, MM, credit cards or bond fund. Which is best for you? Some propose an employer plan with paycheck deduction like a 401k but with no penalties. Actually some can do this now with a Roth 401k. You get tax-free growth for life and you can take your contributions out anytime without penalty. A short-term corporate bond fund like VFSTX will rise with rates. CDs are tricky since rates are rising so keep away. Or perhaps your best alternative is a HELOC. If you have equity in your home, you can obtain a line of credit for rainy day. Home worth 300,000 and you owe 150,000 you may obtain 50,000. With no closing costs and interest charged (current 5%) only when you use the line, this a perfect ‘emergency’ fund. You can leave your retirement money alone to grow. As long as you don’t misuse this money, you won’t lose your home—HELOC is a 2nd mortgage.
Don’t fall for your broker/advisor illiquid products:

Do we go backward or forward with wages?
Most Americans say they are NOT benefiting from the $4,000 Trump promised. Most feel that Trump helped his class—giving us higher tax bills in the future to pay for all the cuts in revenue in the next 10 years. Corporations got to keep all their subsidies, grants and special financial deals. Average homeowners in CA, NY and NJ are not able to deduct their property tax so anyone with a single family home will pay more. Those who own the mansions have put the property in a legal entity to keep the deductions like The Don’s home in Trump Tower—all deductible. Because half of workers are not skilled they earn what they earned in the 1970s-80s adjusted for inflation. Plus health care costs rise and Obama subsidies were cut so many will go bankrupt with illness. We have no infrastructure works program that could employ those workers. Is going backward right for America?
Last time unskilled workers were left stranded, America did not abandon them. They got work building many village halls, dams, bridges, etc. We had hope because we were moving forward with a little help from the feds. 8.5 million of our fellow Americans had work and it paid off. Now most of the subsidy money goes to the wealthy class.

Another way the wealthy avoid their fair share
Trump’s new tax law changed the AMT—alternative minimum tax—so that many rich people will not have to pay it. Treasury gave us this tax after it was determined that 155 rich people paid no tax in 1966. Americans were outraged and Congress added a tax. AMT was born in 1979. Millions of rich people had to start paying their fair share under Reagan. Now Trump and his tax-credit class have got CPAs maximizing retirement contributions, funding a health savings account and making investment account adjustments where it makes sense to take the losses for use against gains. “After that, we go for increasing charitable contributions,” an observer added. You don’t need a CPA.

Homeowners in Dem states plan property tax limit workaround
New Jersey has set the rules for how residents can make an end run around the $10,000 federal limit on state and local tax deductions. Unfair treatment compared with other states is at stake. The average home in NJ is assessed $18,000 tax. Each jurisdiction can establish non-profits to collect taxes for education, fire, police, libraries, trash pick-up, road repair and other local services making them a charitable deduction. “If and when the IRS finalizes its rules, we’ll see them in court,” Attorney General Gurbir Grewal said.


Make America, “The Don”, Great Again

Two Americas: A Banana Republic? Do we really want an infant king? Daddy Putin!


Is Medicare for All the answer? Obama & Trump could NOT stop the rise in health care.
House on vacation again: no work no pay! Save $ millions—half are already millionaires.

Trump tax cuts went to the wealthy—some middle class actually pay more: voters wise.
Drug prices manipulated due to shortage and shortage created by drug firms: addiction.

Social Security sends email; NOT call for information—never give callers your info.
Non-bank lenders playing the same role as in 2007: could melt-down happen again?

Voya caught giving criminals passwords to 5,600 client data. Fined $1 million. Fees rise.

Half of cellphone calls scams: fake directed at most vulnerable of us. Feds do nothing.

Suicide by cop: Everyday people with guns kill co-workers and get cops to kill them.

Why is Trump surprised when the world laughs at his ridiculous narcissistic statements?
Trump: I fear #METOO Movement. “It’s happened to me many times.” “I grab p__y.”
$73,000 driving for Walmart: Congress changing law to age 18?
Are you sure you want to keep out all immigrants? She is 7 and the next generation.

Who owns your account now?
Identity theft protection is free: Freeze your account so thieves can’t buy in your name.
What to watch to avoid cyberattackhack/theft: think like hacker—what can go wrong.
Genetic test: insurers can use it for genetic discrimination : results vary by company.

Your business self-insured for health care? Cut out the middle person.
OppenheimerFunds to Invesco Ltd.

A tiny clip in your heart can save you but it costs $30,000: doctors/hospital extra?

Good Samaritan helps stranded car but then evil comes.

Two heads are NOT always better than one. Anything can happen and does.

41 Watchung Plaza, B242
MontclairNJ   07042

Friday, September 21, 2018

Deduct the full cost of your ride

Can you deduct the full cost of your ride?
The recent changes to the tax code are giving business executives a new perk: the opportunity to deduct the entirety of a corporate-jet purchase. “That is a major change. Before, buyers of new planes could generally deduct at least 50% of the cost of an aircraft in the first year. Buyers of used airplanes had to take those deductions more slowly. Marcus Adolfsson, [CEO of online tech] publisher Mobile Nations, bought a used Embraer Phenom 100 for just under $2 million at the end of December, right as the new tax law was going into effect. The rule allowing owners to deduct 100% on used equipment was retroactive to late September … Mr. Adolfsson, a CEO and licensed pilot in St. Petersburg, Fla., has used his jet to skip the hassle of commercial flights, flying to New York to meet with advertising partners and taking jaunts to Miami and Winnipeg to visit his remote employees. He lovingly compares the plane to a minivan: less sexy than some smaller planes, but a comfortable time saver. ‘It’s kind of my office on the road,’ he said, adding that he can lease it out for $1,300 an hour when he isn’t using it.”
Avoid paying the taxes these jet owners don’t pay:

Another tax from your take-home pay
Americans spend tens of billions of dollars on government-run lotteries each year. But as income inequality widens, low-earning households spend a disproportionate amount of money on lottery tickets. The lowest-income households in the U.S. on average spend $412 annually on lottery tickets, which is nearly four times the $105 a year spent by the highest-earning households, according to Americans making less than $30,000 a year are most likely to buy multiple lottery tickets each week. We are putting ourselves in debt—more bankruptcies than 10 years ago—in an effort to escape our economic crisis. Our economic situation hit a wall in the 1970s-1980s. Now the state licensed on-line gambling which can only make matters worse.

Coins with no value continue to make sure you lose your money
Crypto money has outdone the dot-com bubble burst in 2000. You are guaranteed to lose because you didn’t buy when this pretend money was 1 cent. Because crypto is just computer blip, it is easy to steal. Some exchanges may be operating illegally. Lesson: buy low sell high or just go to the casino. You would be better off in the gambling game—NOT as player but as an owner. For instance, Wynn Resorts stock returned 98% so far. At least they are real and have value to some. Gambling will always be with us but you are better off as owner than participant in a bubble. Or start your own currency for a true losing game. Alternative: own part of successful companies; leverage compounding.

Are home equity loans still deductible?
The IRS said that taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labeled. The Tax Cuts and Jobs Act of 2017, enacted Dec. 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan. Under the new law, for example, interest on a home equity loan used to build an addition to an existing home is typically deductible, while interest on the same loan used to pay personal living expenses, such as credit card debts, is not. As under prior law, the loan must be secured by the taxpayer’s main home or second home (known as a qualified residence), not exceed the cost of the home and meet other requirements. One of the criminal charges on Manafort was that he lied on mortgage loan. Many foreigners get caught because they use questionable money to buy property and then mortgage it so it is ‘clean’ money to live on. The questionable money is not taxed and using a loan for income is also not taxed.

What to do when your life insurance premium balloons?
Policy owners of universal life insurance are suing insurers for raising the premium on policies sold in the 1980s and 1990s. Insurers offered an attractive guaranteed minimum interest rate to policyholders of about 4%-5%, experts said, supported by higher interest rates. But the returns on bonds have been lower. Plaintiffs claim that insurers raised costs to make up for bad bets on interest rates. Insurers claim the increases are warranted, due to things such as mortality conditions that increase the frequency of claims they have to pay. However, people are living longer not shorter and extra costs are the insurers’ responsibility. Insurers have tripled CEO pay over the past 35 years. Your options: reduce death benefit, take surrender value, pay more, and ask your carrier if your policy has other options.

Is a deductible co-pay LTC policy right for you?
Since prices have been rising and current owners of these products keep getting premium increases, you might guess that this ‘new’ coverage from NY Life is too late to the party. Yes, boomers are getting older and on paper, there is a huge unfilled need. However, this coverage has a deductible and a 20% coinsurance to lower the cost. Policy benefit caps mean that you could easily run out of benefits. To sweeten the deal, you can earn a dividend. If you don’t need it, there is no refund.

Is your 401k may be robbing you blind?
M&T Bank workers’ lawsuit challenges high fee, poor performing proprietary mutual funds in the bank’s 401(k) plan. Many other lawsuits against financial companies have accused employers of adding affiliated, high-fee, poorly performing funds in 401(k) plans at their workers’ expense. Some employers have had to settle: Deutsche Bank ($21.9 million)American Airlines Group Inc. ($22 million)Allianz SE ($12 million)TIAA ($5 million)New York Life Insurance Co. ($3 million), and Principal Life Insurance Co. ($3 million).

Should Congress force employers to offer high-cost annuities?
All the big annuity insurers are greening Congress to make it legal and easier to put their products in your retirement plans. Hoping to cash in on all the retiring workers of America, insurers are calling their products a “boost to Americans' retirement security through greater access to products that provide guaranteed lifetime income in retirement." What most of our Reps don’t know is that we could give up over 50% of our retirement dollars to fees, costs, and charges built into the contracts. Every year insurers take 2-3% of your total nest egg. That could be $3-5,000 a year. Sure, annuities are secure and can provide ‘guaranteed’ income. However, over time the purchasing power of the income is cut in half--$1,000 a month benefit becomes $500. Unlike Social Security, most plans don’t raise the income to keep up with inflation. And when interest rates go up, you will want to cancel the contract for a higher income. Then surrender charges apply.

Wealthy buying into companies directly: skip the hedge fund commissions
The superrich have invested in businesses directly for a long time. One of the oldest direct investments has been real estate. Family money built the malls, the department stores and commercial buildings directly. Many billionaires have been rewarded by purchasing shares in Warren Buffett’s firm Berkshire Hathaway 40 years ago. The wealthy are now envious of those who bought early in Uber Airbnb etc. They want the prestige of being the early investors. This requires understanding the risk/reward of direct investing. They think they are smarter and can save on the costs. And so can you with the help of industry insiders. However, if you are NOT connected to an insider, you might want to follow Warren Buffett and John Bogle advice about investing.

Who is taking our money on Wall Street
This is the AVERAGE: $422,500 up 13% in 2017. They hired only 1700 last year—keeping more for the owners like the Johnson family. Automation has eliminated most of those who actually work on ‘Wall Street.’ My job and staff in the ‘back office’ are gone. In 1988, I automated the variable annuity sales process so no need for this staff. All the profits from my and other areas went to senior management who went out and bankrupted the firm. The profits came from the fees, ‘haircuts’ and kickbacks from the money Wall Street clients give to the sales people. Sales people earn an average of $47,000. The guys you see in the pictures of the exchange make even less. If you are trading or paying 2% for your account and products, you are giving up 63% of your potential earnings to the owners. Money management is the 2nd oldest con. The top 1% own 25% of everything of value in US just like 1920s. We started losing ground in 1980.

Are donor advised funds right for you?
DAFs are the Internal Revenue Code Section 501(c)(3) philanthropic accounts established at a public charity. They allow donations of cash, property, appreciated assets and more—and donors receive immediate tax deductions. The DAF legally controls the money from the point of donation. Subsequently, donors can advise regarding specific charities that should receive donations. Generally, the DAF follows the donor’s advice. Plus, DAFs offer the option of completely anonymous donation. Despite fast growth and unique advantages, DAFs have recently come under increasing scrutiny and criticism. Among the concerns are a lack of transparency and potential conflicts of interest for financial institutions that offer the funds while earning fees for their investment management. Besides financial institutions, DAFs are housed at more than 700 community foundations in cities across the country.


Make America, “The Don”, Great Again

Two Americas: A Banana Republic? Do we really want an infant king? Daddy Putin!


Trump spent 33% more than he did last year: $895 billion more than brought in. 
Corporate tax receipts fell 30 percent in the past 11 months: CEO & shareholder benefit

Trump raises prices by 10% in trade war. We pay for his war and we vote in Nov.

Tamara Steele IN did not disclose 18% commissions on risky stock to clients 
Capital Analysts PA put clients in high-fee fund shares inside wrap account. 2x fees
J Laura A Sichenzio W Gil de Rubio caught fraud oil processing $3.7 million securities 

Peter Mallouk KS caught making illegal adverts; ethics violations; trades not reported
Kevin Merrill Jay Ledford Cameron Jezierski caught ponzi--returns from fake debt resale

World Tree indicted on fraud using “cherry-picking” scheme: keep good trades.

Hedge funds are raising fees as their portfolios shrink—owners still want their fees.
Florence scams: fake investment opportunities fake charity; corporate paid promoters.

Trump is finally fighting cyber war with cyber: Target Russia, N Korea, China likely.
Jobs are not hard to find; living-wage jobs are hard to find.

Who owns your account now?
The 70 yr old Beetle is killed by VW in favor of Porsche SUV? [SUV by Porsche?]
TIME mag sold to Salesforce
Hurricane strategy: those with actual cash not card can but gas and food till electricity on.

Nestlé’s Gerber Life to Western & Southern Financial (annuities)

One man drove into Florence to save 53 dogs and 11 cats and then back again next day!

Anti-Muslim mayor actually talks to Muslims and admits fear of unknown drives bigots.

41 Watchung Plaza, B242
MontclairNJ   07042

Friday, September 14, 2018

How is your 401k?

How is your 401k?
Fidelity published the average balance by age. Each of us is at different financial stages so averages don’t mean much. Most of us have SS benefits to add to our total. The average benefit today is $1,342 a month which will increase by a COLA if Congress passes an increase each year. The average monthly income that could be produced from the balance for a 65 year old ($200,000) is about $700 a month in today’s purchasing power. Unless we plan on receiving a pension of sorts or working longer, $2,000 a month from each spouse may not be enough. Plus, we all know that you can never have too much. We need to consider how we can improve our situation with tax-FREE savings. This parking lot attendant did it by following his Mom’s advice.

Why are wages the same as in 1985?
Inflation over the last 40 years has left most of us with the same Buying Power as of 1985 down from 1968. What happened? Automation and technology have left many jobs on the ‘shop floor.’ In 1985, as manager of about 40 people, I oversaw the computerization project of our entire process. My 4 assistants could make decisions immediately from weekly reports that told us what was happening (and wasn’t). Within 10 years, every change or entry made by now 20 staff since those in the field entered data once on a network computer and not reentered by my office staff. In my next job, I got the suppliers of our products to make the data entry. They streamlined the process so there were no more paper copies of customer contracts to be signed or filed. In my next job, most of the data entry was by the customer and by scanning bar codes. I no longer had a receptionist/secretary. I could run meetings and consult with direct reports by phone anytime day (or night, in a pinch). Meanwhile, my salary and bonus were doubled and my boss’ quadrupled. Today CEOs have compensation 500 times that of line workers—up 1,279%. The value we created per person using machines provided gains for senior execs and stockholders. Buying Power wages have not changed. We work 2 jobs.

Can we afford NOT to have Medicare for All?
The rate of bankruptcy has increased 204% since 1991 often because of health care costs. This 87 year old is going to be in the truck next to you in order to pay his wife’s medical bills. Is this what we want to do in retirement? There is enough money in America to pay for health care! It’s just sitting in the accounts of the top 10% fellow Americans trying to pay as little tax as possible. For instance, some of the Billionaires are paying only 17% total tax—about HALF the amount of the middle-class worker. Mitt Romney and John Kerry paid less than 15%. Most of the highest net worth Americans are paying a fortune to lawyers to reduce the amount they pay every year—using legal and illegal means. The IRS just gave the wealthy with money overseas a discount on their taxes if they declare with the Offshore Voluntary Disclosure Program. Trump and the GOP have proposed letting the wealthy delay paying the RMD tax. They allowed “junk” insurance to be sold which is cheap because it does not cover all expenses. The GOP continues to pay socialized supports to the oil gas agriculture and mining industries. So America can afford it if we chose:

How can you avoid SCAMS in financial services?
Wall Street is a ‘war’ zone! We must enter this war zone with the protection of knowledge. We could lose all our lifelong savings in one trade. Brokers and advisors have weapons that can 'kill' us financially. They are hidden behind lies, exaggerations, obfuscations and straight-out fraud like faking our signature. Half-truths and our assumptions and greed are also at play. These are our 'soft' underbelly targets. There are warning signs but most SCAM situations require us to be knowledgeable and to check every move. My first day as a manager at a security firm I was told: ‘brokers are [car] salesman.’ Our future life is at stake and yet we give strangers our money so easily.

Wealthy take a dive into CLO again: mortgage loan disaster taught us nothing!
The superrich pouring $ millions into collateralized loan obligation. CLOs means possible bank failure again. They are after the possible double-digit returns. But dissenters have raised questions about whether the frenetic pace of sales is spurring reckless behavior just as the prospect of an economic downturn looms over an increasingly leveraged corporate America. Yes, history could repeat itself when you transform riskier company loans into bonds of varying risk and reward and then promote them with “every smart rich person owns them.” One promoter says “you only have issues if … you have losses.” Yes! These sub-investment-grade rating loans are mixed with equity so they may pay better if you wait. Returns on CLO equity can range from 12% to a remarkable 20%, standing out in credit markets where corporate bonds have delivered little or negative returns this year. Banks think they understand the risks just like last time. Remember we taxpayers had to bail them out—even foreign banks—and that makes bankers ‘adventure’ capitalists for FEES.
Protect your investments in a tax-FREE trust:

We are paying an extra $14 billion a year in broker fees thanks to Trump
New report compares the fees we pay under Obama’s vs Trump’s fiduciary rules. The report examines the stock prices of 36 publicly traded brokerage, mutual fund and life insurance companies, finding they lost a total $14 billion in value as a direct result of the Obama fiduciary rule. It mandated that sellers offer the ‘best’ product to retirement account clients. “The profitability and value of investment firms is reduced by the inability to collect conflict-of-interest fees." In other words, firms did not receive $14 B in fees from us on our money during the Obama period. Obama saved us about $17 billions a year. This was mainly annuity commissions which are definitely NOT products in your BEST interest but in the firm’s best interest. Firms have plenty of costs that must be passed on to us one way or another. 

Will you owe tax penalty in 2019?
Trump’s new law is effective in 2018. If your property tax or state income tax is over $10,000, you are going to owe more because you can’t deduct these taxes anymore. If you are used to deducting employee expenses and 9 others, you may also owe. The IRS notice 182 says you may have a penalty if you owe more than $1,000 next April. Individuals, including sole proprietors, partners and S corporation shareholders, may need to pay quarterly installments of estimated tax unless you owe less than $1,000 when you file your tax return or you had no tax liability in the prior year. Other taxpayers who may need to make estimated payments include someone who:
  • has more than one job but doesn’t have each employer withhold taxes.
  • is self-employed.
  • is an independent contractor.
  • is a representative of a direct-sales or in-home-sales company.
  • participates in sharing economy activities where they are not working as employees.
Make estimated payment by Sept 17 with Form 1040-ES page 11.

Insurers want to put annuities into 401k for more fees
Pro: They argue that annuities are the “only savings vehicle that carry a guaranteed, contracted, lifetime income stream, outside of Social Security and pension benefits.” Con: 401k accounts already delay taxes on the gains. Annuities costs are high compared to the alternative—IRA which also delays taxes. The IRS already mandates a lifetime income stream. It is called an RMD calculated by your IRA trustee who doesn’t charge for this service. IRAs are protected from creditors like annuities. The guaranteed benefit misses the point of having income for life. The income is usually cut in half because of inflation. You may begin with $1,000 a month at age 65 but it will buy HALF the goods you need by age 85. 401k accounts are run by your employer meeting certain fiduciary standards. Annuities are not. To guarantee a lifetime income stream is a process best left to an experienced planner over time so you can make adjustments to your investment mix as needed. Annuities protect insurers not you.

Where is your increased income?
Census says: Middle-class income rose to the highest recorded levels in 2017 and the national poverty rate declined as the benefits of the strong economy lifted the fortunes of more Americans. The median U.S. household earned $61,372 last year, meaning half of the families in the country brought in more income than this and half earned less. But the nerds say median income last year was not statistically different from 1999 or 2007. A change in methodology in 2013 makes precise comparisons difficult. All the income figures have been adjusted for inflation and are reported in 2017 dollars. Here is the rub: “The extra pay from having another person in the home working is the largest factor contributing to the increase in income.” Our wages did not go up! We are just working more hours. Americans living in official poverty stayed at over 12%. Remember, earned income is the Gross number not cash in pocket. Our health care costs went up. Fewer people can afford a house or rent because property costs have ballooned. Young people with school loans went back home since they can’t afford the basics of family life. And the worst is yet to come: Who will pay for the $1.3 Trillion deficit this year? Not the wealthy! Most of the tax breaks mean they will pay less in the future: $21.3 Trillion.


Make America, “The Don”, Great Again

Two Americas: A Banana Republic? Do we really want an infant king? Daddy Putin!


Don’t fall asleep in class: Student got tasered for falling asleep in class in Smithville OH
Drug companies say hospitals jack up prices of drugs in hospital 500%. Hospitals say …

MyPillow told to stop making false claims for his stuff. Fine $1 million; still false claims.

How is 2,975 dead in Puerto Rico an "incredible unsung success"? Trump takes $10 mil.

SII caught failing to supervise sales of high fee illiquid real estate investment trusts. 
Barry Honig & others caught in microcap “pump-and-dump” schemes taking $27 million
Edward Daniel lost license after 41 years: unsuitable investments 2011 and 2015.

Luke Eddy MA caught impersonating client and forging her signature.

Market timing is back in vogue: Stock sellers like August trading for a change.
Emil Botvinnik Jovannie Aquino caught trading $3.6 mil client loss --$4.6 mil fees.

GPB Capital Holdings illiquid private placements investigation by MA: 4,000 at risk.
FUTURE INCOME PAYMENTS sued for claim “not a loan” when are loans hi interest
Jeffery J Kelly caught failure give docs re: unethical behavior so barred from industry

Health care scams double: low-cost Trump plans offered—premiums buy no coverage.
SS scam: fake SS official asks for info or tells you to send gift card to reopen account

TX cop kills neighbor in home—I thought I was home. Door Keys? Wrong Floor?

               police shoot owner who already shot intruder. Kids will have plastic killer guns?

Prepare for a good job: 25 jobs trending to $100,000 plus
Health care hires thousands per week as more in Medicare plus new procedures
Work at home scam or real gig? 10 jobs to try for experience and money.

Ford cancels production move from China to US: no profits on Focus built here.
Poll: 2/3 people think automation will eliminate jobs for ordinary folks soon.  
How many more decorated national security officials alienated by Trump?

Who owns your account now?
Ohio National stops selling annuities: "It's a declining market," expert says.
Home or Rent: A challenge and the duplex solution.
Retirement accounts target of cyber crime: protect your account.

ACA in WV provided health account for 189,000 uninsured: don’t know its ObamaCare

Ruby slippers located in FBI sting: $1 million insurance finder’s fee.

Uninsured for health falls again from 48.6 million to 28.3 million Americans

41 Watchung Plaza, B242
MontclairNJ   07042