How much is your tax refund worth if you invested it?
I know it is hard to save for retirement with all the calls on your
paycheck. The only way to do it successfully is to use the most powerful
investing tool—compounding. The average
tax return was about $3,000. If we invest it in the fund Warren Buffett
recommends, year after year, we can end up with $1,000,000 for retirement. That
would produce about $60-70,000 a year in income. So each $3,000 that we invest
each year is worth about $29,000 later on. (1000000/35 years) Your refund is
money that you lend to the government interest free. You pay about $125 a pay
period to the Fed via your employer. It is forced savings—a
socialist idea started during WWII. Most people had a hard time saving for
their annual tax bill. We still do. So they made us pay from the job.
Use the easy way to save: https://www.amazon.com/Tax-Refund-Millionaires-Let-Uncle-Help/dp/149595644X
Not too late to cut taxes and build retirement income
You may owe the IRS this year or receive a smaller refund. You can change
that by increasing
your deductions by $12,000 for a joint return; $6,000 for single. Open and
fund a traditional IRA at your bank, mutual fund or broker by April 15, and you
can reduce your income, thus lowering your tax obligations. A traditional IRA
will also grow tax deferred so you pay taxes on the income and its
accumulations when you retire. Hopefully you tax bracket will be lower then. If
building retirement income sounds like a great idea, how about using your
refund to create a nest egg of as much as $1 million. The average refund is
about $2,900. Investing in a low-cost
broad market index like the Vanguard S&P 500 for about 34 years will
provide about $1,000,000. This is the perfect way to have the money when you
need it even if your employer does not offer a 401k account. You can set up
automatic investing from your checking so you never miss a market rise. You
just keep investing year after year—no trading, no broker fees, nothing! Your
future $1 million is in your refund: https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938
How do we deal with captains of industry who kill people?
OxyContin
kills people—over 70,000 in 2017 alone. The maker, Purdue, gave physicians
misleading information and never corrected it. Richard S. Sackler, and his family, got
rich from spreading this addiction. MA sued them--accusing him and other
Sacklers of “illegal deceit” in the promotion of OxyContin. Also, journalists
at ProPublica
and STAT recently published records from a 2015 Kentucky
What will it take to stop Purdue and the Sacklers from killing more of us?
Bankruptcy?
12 Reasons to Roll Your 401(k) into an IRA
When you move to another job, you may have the option to leave your
retirement money with your old employer. Don’t. First, you may find better
investment options in a low-cost mutual fund provider like Vanguard, Schwab, or
others. Low-cost bond funds offer better yields than stable value or guaranteed
funds over time. Second, almost all large fund companies are fiduciaries. You
have no idea what could happen to your old employer. Third, a low-cost IRA fund
may cost
much less than your employer’s plan—0.04 vs 1.4%. In fact, many employers’
plans are being sued for overcharging employees. Fourth, when you pay less,
you earn more—up
to 63% more. Fifth, unbiased advisors are available for your funds at funds
like Vanguard—no commissions are allowed. Sixth, employer 401k plan advisors
are conflicted by their arrangements with plan administrators. Small employer
plans are often serviced by insurance agents with high costs. Seventh, every
large fund complex allows small balance transfers. High-end advisors/brokers
have high balance minimums. Luckily, Warren
Buffett proved we don’t need them to beat high-cost advisor returns. A
simple low-cost index fund returned 7.1% vs 2.2% for advisor picks over 10
years. Eighth, there are no transaction costs to move funds from one fund to
another. However, trading is discouraged since trading causes losses. Ninth,
IRA funds are protected from creditors just like 401k funds. Tenth, you can
borrow from your 401k and not from your IRA but retirement savings is your
future. There are NO loans for income when retirement comes. Eleventh, an
emergency fund is the place to borrow for a current crisis. Many 401k loans are
not repaid so you give up your future. Twelfth, moving your money to a new
employer is tricky. Having your IRA trustee move
your money for you is easy and safer. You are starting a new job and you
don’t need the hassle of lost money. Besides, you must rollover to an IRA
account eventually. You should have all your funds in one place when you
retire. After 30 years of changing jobs, many
retirees have forgotten or lost their 401k balances when they retire. Most
smaller employers don’t want to hold your 401k. If you leave it with your old
plan you will have to deal with the old plan administrator not your old
employer.
Consider carefully: https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938
IRA expert Ed Slott’s explains what you need to know
Most of us have IRAs in retirement because we cannot keep 401k accounts
going at the old job. What we need to know is crucial because there are
penalties for not following the rules of withdrawal and inheritance. You need
to have some idea what your advisor is doing because you are ultimately
responsible for your taxes. Most advisors are not tax experts but they do move
your money and a lot of it is in IRA accounts. Ed Slott is the expert and this
is what he teaches advisors if they take his course. IRAs require
withdrawals, taxes, re-titling after death, beneficiary updates, perhaps a
trust and definitely capital preservation/income stream decisions. Since the
money has not been taxes, every decision can have tax consequences. Sometimes
date of execution is important.
Look before you leap: https://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016
Which kind of advisor do you need?
We needed a fee-only advisor to help us make a plan for the future as we
approach the time when we leave regular employment. All the advisors in our
driving area only took on new clients with more money than we had accumulated.
Most of them got paid by commission or a percentage of our assets every year. We were lucky to find a
fee-only advisor through another advisor. She agreed to meet at her local
shared office space near us. We told her what we needed and where we were
financially. She agreed to do a plan for us at a cost much less than the annual
fee of most advisors. Our portfolios were set with low-cost balanced funds and
a few stocks mostly in IRAs and pensions. We were happy with what we had
accumulated and didn’t need another broker making ‘wealth opportunity’
suggestions. After giving her our financial information and goals and
questions, she presented her plan in about a month. She provided
income/expenses for months and years for the next 30 years. Yes, we had enough
to live comfortably and keep our home with high NJ taxes. All our financial
goals were accomplished. We were happy and satisfied. We felt lucky we found
someone who gave us a written plan for the right price. Most of all, she
listened, asked the right questions and gave realistic answers. She was
really a financial therapist.
She calmed our fears that we would not have enough to do what we wanted for the
rest of our lives. Our investment advisor is Warren Buffett.
**************
Truth isn’t truth, his
lawyer says
Two Americas
***********************
How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!
Contractors paid to maintain military housing grow
mold/rats and still make $ millions
SCAMS/SPINS:
IRS says scams
continue with direct debits, etc: irs.gov/newsroom/security-summit
Car dealer’s scam: no
final financing agreement completed so ask for more money.
Cure Encapsulations caught
buying fake reviews to make fake diet herbs sell
CDC
guide on opioid use is hurting us: Opioid firms hit bonanza—255 million
scripts
FDA
approves ‘happy’ party drug for your low days: just spray in your nose, Mahn.
We
pay for sea bass and get perch or tilapia: No truth anymore--just
‘marketing’!
William Gennity, NY caught
excess trading for fees—churning—created client losses
DNA test giving
up coverage/privacy: “perpetual, royalty-free worldwide transferable
license”
BEWARE: Ask
how much before treatment: $3,000 Rabies shot billed at $48,512.
Watch
for driverless cars: AZ says Uber NOT responsible for killing
pedestrian?!??
Ellis channels
Trump: Manafort
gave election data to Russia but judge says no collusion
GOP
vote against Dems ‘condemnation’ of hate?: What about infrastructure jobs
bill?
Trump
Mob broke law and violated Constitution: business men don’t read Constitution
Trump’s ‘easy win’
trade war costs US $3
Billion a Month: few new jobs.
Trump
calls off ‘war practice’ at Kim request in return for …. Re-starting
bomb site?
“Individual 1” could be a Russian “asset”: Why FBI
opened a file on The Mob Boss.
The Mob Boss can never go to jail: Trump
has Kava as Supreme so no indictment.
‘No man is above the
law’ … well up till now. Dictators
nullify courts first, then votes.
Supremes
protect Don’s ‘Orders’? – GOP: ‘Sure, pres
can change
Constitution anytime.’
----------------------------------
Jobs:
Employers try new
benefit: student
loan payback: Give
up future nest egg to pay banks.
Who owns your account now?
Keep track of your
money: Best
personal finance software reviewed.
Own the most
reliable car/SUV you can: Consumer
Reports top ten picks
Your advisor is now
target to gain your data: Ask
for deletion of personal data.
Miracle:
School principal
reads bedtime story to her kids via Facebook if parents are too busy!
Teen
uses facts not ‘hysteria’ to protect himself and others: ‘fake
news.’ 7,575
deaths!
IAN
41 Watchung Plaza,
B242
973.746.2014
Alerts
No comments:
Post a Comment