Give your child a leg up: Make
sure they can make and manage money
Only
17 states require your child to learn how to determine which investment
pays the highest return on their money. Most think it is a savings account.
This could be one reason most of us are going to be broke in retirement and the
amount of credit card debt has doubled to over $8,000 per household. Children
are moving back home after racking up huge student loan debts. Most parents
have no clue about the fundamentals of personal finance—investing, interest
rates, compound interest, why the rich get richer, and avoiding debt by
creating your own ‘bank’ of tax-FREE accounts. Unbiased
advice is easily available. For instance, if I loaned $250 a month to big
companies we use every day, over time, with interest on my money left with
them, would grow to be $63,000 in 10 years, $245,000 in 20 years, and $790,000
in 30 years. The Miracle of Compounding: I loaned them $90,000 ($3,000 X 30 yrs)
and now I have $790,000. If I use a tax-FREE account, the amount is not
taxed—now or later. I learned from John Bogle that you
give up 63% of your total potential nest egg if you pay someone 2% a year
to handle your money. Warren Buffett’s advice is so simple, anyone can follow
it.
Use Unbiased Advice: https://www.amazon.com/Wealth-every-school-graduate-century/dp/1466427906
Is financial
planning really like Netflix?
Instead of a 0.28% fee
on your assets every year, Schwab will charge $300 financial planning fee once
and a $30 flat monthly subscription that will
not increase with assets. $360 a year sounds great compared with the $350
($125,000 portfolio) that rises each year. You get investment management, a
financial plan and unlimited guidance from a certified financial planner,
whether you have $100,000 invested or $2 million. Of course, the details
matter. We did a complete evaluation and plan with analysis for $750 from a CFP
on less than a $1 million. If your situation is complex and changing, Schwab is
a good deal especially if you have a good planner on over $1 million. If you
have a smaller simpler nest egg, you may be overpaying. $30 a month for 30
years is over $10,000 and no extra benefit. If you believe in market timing with
the right advisor, you may have a bargain here. Schwab makes their profits on
the 8%
cash you are required to keep instead of securities. However, most investors
with active management earn just 3.79% vs 11% with an index fund. If you
are a Warren Buffett investor, Schwab is not worth it.
Is your advisor becoming your ‘therapist’?
Is your advisor ‘helping
you change your behavior’ when it comes to money? This is their new role: “guide
the client’s behavior so they can live their best life possible with the money
they have.” But how can advisors do this—inputting your data in planning
and trading software? Some think that advisors need to evolve to the more
emotional aspects of money. Some brokers are told they must help us align our money
with our values. They are told to find out our purpose in life. They are told
to ask: “I’d
love to get a sense for what gets you up in the morning.” Brokers must know
our goals in order to plan the uses of our money. This requires that they “help
us dream a bit and add real value to our lives.” Vanguard has studied this
added value since they use paid staff not commissioned brokers. They
use a ‘service-centric’ model not a ‘beat the market’ model. Brokers are told
to raise their value to us by “positioning themselves as a truth tellers.” But brokers can’t tell us the truth—“my
firm overcharges you because we only use high-fee products.” Problem is, most
brokers don’t have
time for counseling us. They must make enough sales daily to meet their
firm’s revenue target. If we have less than a $1 million, therapy is too costly
to perform on us. Unbiased fee-only planners are the best advisors.
Where is FREE tax preparation?
The free AARP
tax-aide sites are filling up quickly: aarp.org/money/taxes/aarp_taxaide/.
Before spending $200-400 for a paid preparer, try filling in the screens using
the IRS partners at irs.gov https://apps.irs.gov/app/freeFile/.
The instructions are easy to follow especially if you have last year’s return
to compare what forms you need. I have found https://www.freetaxusa.com very easy to
negotiate and respond to email questions. This one charges only $15 for your
state return: Fed is free. It is still $15 when as complicated like mine.
Basically, you must pay tax on all your taxable income—wages, pensions, etc.
This year you have less to deduct because the standard deduction was doubled.
Beware some
software glitches. However, you lost the personal exemption of $4,050
for yourself, your spouse and each of your dependents. For each child
under age 17 you receive $2,000. In high property tax states—NY, NJ, CA, CT,
etc you will probably owe this year. The deduction cap is now $10,000 and the
average homeowners in these states pay about $20,000 property tax. The law was
written by a Rep from a Red
state.
Try software at irs.gov https://apps.irs.gov/app/freeFile/
before you go to paid preparers. Penalty
for underpayment modified this year.
Check the status of your fed refund: https://www.irs.gov/refunds
Is your ride un-reliable and expensive?
Consumer Reports' annual survey: greatest risks of problems in 10 models
counting down to the least
reliable model, the Jaguar F-Pace. Climate system, steering/suspension,
power equipment are possible trouble for Volkswagen’s Atlas. Climate system,
drive system, transmission are suspect in Caddy’s CTS. Power equipment, engine,
in-car electronics may hurt Alfa Romeo Giulia. Engine cooling, emissions/fuel
system, climate system may hinder Kia Cadenza. Climate system; transmission,
minor; in-car electronics slow The Escalade. Climate system; transmission,
minor; in-car electronics may knock the $65,000 CT6. Fuel/emissions system,
drive system, steering/suspension may fade HD Silverado. Body hardware, paint
and trim, in-car electronics, noises and leaks may annoy Tesla’s X. Transmission,
minor; power equipment; noises and leaks may bother Buick Enclave. In-car
electronics, drive system, power equipment, noises and leaks irritate Jaguar’s “SUV”.
(Can sports car be an SUV too?) Is Chevy reliable?
Compare JD Power voters: https://www.jdpower.com/business/press-releases/2019-us-vehicle-dependability-studyvds
Find reliable discount coverage: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634
Health Care is the issue for 2020
People were in favor
55% to 32% of improving
the current health care system instead of replacing it with something new. When
asked whether to remove the current system and replace it with single-payer
through an expansion of Medicare to cover all citizens, 43% called it a
“good idea” while 45% said it was a “bad idea.” By political party, 69% of
Democrats and 42% of independents supported it while only 14% of Republicans
did. For many voters, assuring family members of having care when they need it
(including for pre-existing conditions) may be 2020’s 3rd rail issue.
Some
have to borrow to pay for care and some do not get treated because of the
cost. Trump
vowed to kill our coverage for 20 million new insured and destroy
the full comprehensive care guaranteed by ObamaCare. 55% of us worry a
great deal about healthcare, topping a list of 15 issues. 49% worry a great
deal about hunger and homelessness -- a new high. HALF
of us worry about hunger & homeless. Hunger and Homeless are top
concerns in America
Cover for pre-existing conditions: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083/
Is your 401k plan too small to qualify for reduced fees?
Employee 401k plans that have few participants are paying 4 to 5 times
what employees in large plans pay. The
average costs are 28 vs 7 basis points respectively. That means that over
time, you may end up with $500,000 vs $700,000. Unless you have a sizable match
to your contribution, you need to find an alternative. You can earn more by
paying less using a tax-deferred IRA. Your investment options may be more
suited to your goals also. After all, the market index is up 15% so far after
last year’s loss but you have earned 15% per year for 10 years. Think “Time is
on your side.” So if earning more by paying less sounds like a good strategy,
take Warren Buffett’s advice and put most of your investments in a simple
low-cost stock market fund. If you use a low-cost
Vanguard fund, you will earn close to the market rate of 11%
not 3.79% in a managed account. An IRA is tax-deferred just like a 401k.
The IRA trustee can debit your checking account similar to payroll deduction.
Buffett’s advice is don’t sell and lose your compounding boost.
Consider your options: https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938
Will our health care cost be over a Quarter Million Dollars?
Fidelity estimates the cost of future health care at $285,000 for a
couple living to age 87 and 89. The estimate have 3 parts: (39%) -
Monthly expenses of Medicare Part B and D; (42%) – Medicare cost-sharing
including co-payments, coinsurance and deductibles (e.g., for doctors’ office
visits and outpatient services) and excluded benefits (e.g., vision and hearing
exams, eye glasses, hearing aids, etc.); (19%) – Prescription drug
out-of-pocket expenses (e.g., co-pays and amounts not covered by Medicare Part
D that individuals pay out-of-pocket for prescription drugs). Actual expenses
may be more or less depending on actual health status, area of residence, and
longevity. The estimate assumes that no employer-sponsored retiree health
coverage is available, and does not include other anticipated future health
expenses. Things that are not covered by Medicare — dental, basic vision,
over-the-counter medicines, long-term care — would be on top of that $285,000
estimate. Because we don’t have all that money available, we borrow the
money—an estimated $88 Billion. 25% of us skipped treatment because of the
cost. Nearly half
fear bankruptcy in the event of a health emergency. Still 2/3rds of GOP
think this is the best health system in the world. Most people don’t believe
the cost can be controlled—the health care industry has more lobbyists stopping
Congress from negotiating the costs. Our future income is committed to the
industry.
**************
Truth isn’t truth, his
lawyer says
Two Americas
***********************
How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!
IRS delayed penalty on tax owed this year: Estimate
your new rate: 22, 24, 32, 35%
Judge
stops Trump opening of federal Artic Atlantic waters to drillers/destroy
wilderness.
Mueller staff says Barr summary misleads: Cover
up underway by Trump/DOJ More lies.
$36
Billion for electronic health records: Death by clicks, errors; &
errors from fixes, etc
TrumpCare
in 2020 budget is block grants: your state reps pick care options for poor.
TN
cut 128,000 kids from wellness program—many end up at expensive ER.
SCAMS/SPINS:
Trump-Hannity solve
energy problem: Wind
“only blows sometimes” so use coal.
Lobbyists
not EPA decide which cancer-causing chemicals you can use in child play
area
Trump removes 78
regs on our health: more
mercury, pollutants cause more sickness.
Trump
bank Deutsche Bank kept money-laundering flowing despite knowing facts.
Wind
turbines cause cancer according to TrumpCoal propaganda machine.
Govt
receives more robo complaints but does little to stop them: Robos pay
carriers!
CA has law against unwanted
spam emails sent without our permission—fine $1,000 per.
Vision plans not
help us but push
us to buy high markup frames: kickbacks to Dr.
Fake
news online confusing aging population: society effects health, wealth,
safety.
JPMorganChase failed
to inform clients: conflicts of interest managing money. No jail.
Dennis Gibb WA caught
defrauding 15 investors of more than $3 million. Fine no jail.
Scott Capps PA stole
$2 million from
dormant accounts with stolen firm passwords.
Omar Zaki stole $1.7
mil mislead clients with fake formula claimed 80% return. Fine.
Greg Lindberg Eli
Global, GBIG caught
bribing NC public officials to regulate GBIG
ABB caught
ripping 401k employee funds: moving from Vanguard to Fidelity $55 M.
Jose Ramirez, ‘Whopper’
caught
stealing $1 million: client loans to buy bonds. Jail
Direct Lending
Investments, CA caught
overcharging $11 M on fake loan values. No jail.
GOP is NOT ‘party of
health care’: No plan to make a plan Trump
to destroy ObamaCare
Trump
again promised “Great healthcare” if he is re-elected in 2020: GOP says no
way!
GOP Senate
becomes rubber stamp for Trump judges: American law turns right.
US Stem Cell caught
blinding patients with injections of stem cells from fat. Continues
Catholic
priests are burning books again: since Inquisition 1585
More
immigrants will come from 3 countries Trump cut aid to since conditions get
worse
Mob
Boss gives in to N. Korea: lifts sanctions for NOT scrapping missiles: “I like Un”
“Individual 1” could be a Russian “asset”: Why FBI
opened a file on The Mob Boss.
1. “Russia Russia Russia
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:
Few
graduates know which investment provides the highest returns: https://www.amazon.com/Wealth-every-school-graduate-century/dp/1466427906
Why people don’t
vote: Reps get to Wash
Who owns your account now?
Miracle:
One
student shows HOW to make a difference: And it rubs off on others.
Pope
gives convicted archbishop of Lyon another abuse chance: not accept
resignation!
IAN
41 Watchung Plaza,
B242
973.746.2014
Alert
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