Why annuities are hot again
Trump cancelled the Fiduciary Rule
which protected us from the worst abuses of the high-octane industry sellers.
Sellers can collect 6-10% of your annuity purchase price so every high-net
worth customer needs an annuity. This is one of the highest payouts for most
sellers. The Rule made certain demands on sellers to prove their annuity with
up to 15 years of surrender charges was your best deal for retirement income.
Yes some contracts allow you to participate in market upswings and limit your
loss, but your gains are cut off by contract limits and the ongoing costs.
These can go up to 3.35%
depending on your choice of options. Since the alternatives, which may be
better for you, provide much less income for the seller, you can understand why
Obama’s Fiduciary Rule was abolished. Yet, you can have income and growth at
lower cost and maintain control.
Consider the options first: https://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573
Your portfolio could have beat
Yale’s investment gurus without the cost
David Swensen, the longtime
investing chief at Yale University
Use the Buffett strategy: https://www.amazon.com/Warren-Buffetts-Investment-Secret-Steeple/dp/1484189809
Financial regulators ID 61 firms
as high risk for cheating clients
FINRA
proposes to watch rogue firms for irregularities. They attract sales people
with questionable histories. Regulators
allow sellers to move from firm to firm despite client- abuse patterns. "The
most critical is a pattern of disclosures," he said. "For example, a
broker could have an unauthorized trading complaint that is recent but seems
benign. But when you look at the broker and the movements he has had, say four
or five different firms, and he has faced similar allegations at those firms
but in a different time frame with different customers, the pattern seems to be
emerging, so we are going to take a closer look." FINRA does not try to weed
out the violators—violators are found by us when we complain. Regulators have a
list of high-risk brokers using industry and disclosure data, and then begins
its analysis. The list is not available to us. All we can do is check FINRA BrokerCheck and the list of barred brokers.
We are the victims but most perps just move on to new firm.
Buffett says we are better off on
our own: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963
Is ‘factor-investing’ right for
you?
New name but old gimmick to try to
predict the future. Brokers/analysts claim they are customizing your portfolio
using whatever you need—“higher
returns or lower risk, such as momentum, value or size.” They say they
use factor analysis to find a fund “less expensive versions of your current
portfolio.” I am a little skeptical since brokers or advisors are hired to
‘earn’ money from your money. Others claim they use it to find a fund “to
reduce investment risk.” And you thought that was what your advisor did all the
time for their 1-3% fees and charges. "If we get risk right, the returns
will take care of themselves over a long period of time, and we know that
staying in the market is the important part." ‘IF’. Assumptions work in a
strong market and an advisor can show the ‘factor analysis’ to keep us in the
market. But this new name and fees for choosing value, size, momentum, quality,
price, dividend yield and volatility cannot make the future predictable. The
average managed-account investor is still earning less for every period: only 3.79%
over time instead of the market index rate of 10-12%.
Forget the fad, take 10-12%: https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373
Where do your broker-advisor fees
go?
The first thing I learned working
in a brokerage firms is that senior management must get rich from your advisor
or broker. Don’t kid yourself (or let them try to), they are after a big chunk
of your money. You may be investing for the benefit of you and your family but
so are they but they’re taking theirs from yours. Are you surprised by how much
you
are paying annually for James P. Gorman, Morgan Stanley taking: $28,168,639;
Jim Cracchiolo, Ameriprise Financial: $22,310,000; Timothy Sloan, Wells Fargo:
$18,400,000; Terrence P. Laughlin, Merrill Lynch: $17,796,226; Walter W.
Bettinger II, Charles Schwab: $15,627,607; Paul Reilly, Raymond James: $12,453,375;
Ruediger Adolf, Focus Financial Partners: $11,637,251; Dan H. Arnold, LPL
Financial: $7,128,351; Ronald J. Kruszewski, Stifel Financial: $5,287,305; Judson
Bergman, Envestnet: $4,200,366; Thomas A. Nally, TD Ameritrade Institutional:
$3,521,305; Richard J. Lampen, Ladenburg Thalmann: $3,115,271; Robert D. Oros,
H.D. Vest: $1,464,473. Fidelity is owned by the Johnson’s so we
don’t know how much CEO takes. Half
of investors now in low-cost indexes: https://www.amazon.com/Pimps-Wall-Street-money-middlemen/dp/151525254X
Seventh biggest mortgage lender in
the country is us
We are ‘giving’ our kids over
$39,000 for a home. The average U.S.
Save on home purchase process: https://www.amazon.com/Insiders-Guides-Discount-Financial-Services/dp/143480593X
Is the American middle class
doomed?
If you think you are middle class,
you are, according to some writers.
But since the 1980s, the
productivity gains have all gone to the top 1% of earners (23.5% of all
income; up from 8.9% 30 years ago). It now takes two workers, usually well
educated to create the same lifestyle as the average family in the 1950s and
the 1960s. Wages
are LESS than they were in 1973! Many of our children are creating extended family
groupings like in the 1800s. Only the ‘robber barons’
could afford a home of their own. We go further in debt trying to keep up. Work
operations change very quickly—keeping up our skills requires continuous
learning—we never had to do that before this generation. Generations live in
mobile homes now. Walmart may be the best paying job in town so food
stamps are necessary. 62% of us don’t have enough for an emergency when it
comes. It feels like we are on the road to serfdom.
According
to one writer, its elements are: (i) internationally, capitalism is
restructuring and U.S. Washington
Need a graduation gift?
The greatest gift you can give is financial knowledge. No matter how much
your young graduate makes, it is up to YOU to show them the Buffett
investment strategy. Make sure they can make and manage money.
At my first job, I had no clue which investment to use for my 401k contributions
and company match. The HR person told me to put it into the 'safe' stable value
fund. That was the worst choice at my age I learned later
when I got my securities’ licenses. If I had followed their advice I would have
ended up with about $150,000 instead of a Wealth Reserve of
$877,233 about 33 years later.
**************
Truth isn’t truth, his
lawyer says
Two Americas
***********************
How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!
Now Iran
Not
invade Iran today: CIC says there is ‘no
indication anything has or will happen.’???
Trump
made up ‘threat’ from Iran to send war ships to impress base. What’s next?
Trump admits he is ‘stable
genius’: Proof—just ask his employees- Kellyanne, Larry, Sarah, Oh
My.
States
fight Trump ban on hospital workers treating patients he does not want to
help.
Senators pass 2 bills in 2 mo: lay
them off until McConnell retires—saves $10 million.
Farmers’ socialism; beer
makers lost 40,000 jobs: Trump like Putin makes
winners/losers
Trump
Mob gives tariff waivers to the firms they like: others on hold.
TX
GOP cancels disaster relief for fires, floods and hurricanes. No reason for
‘no’.
SCAMS/SPINS:
What
would GOP do if DEMs refused to provide info they requested from WH? Arrest?
Why are those who
defy subpoena NOT in jail now? Are
all GOP above the law? Trump?
Pelosi: Trump
“engaged in cover-up” so is that ‘high crimes and misdemeanors’?
EPA to ‘cook the
books’ on coal
pollution so report less than 1400 deaths per year.
If All
the President’s Men can ignore the law, are the wealthy far behind?
Biz espionage?
Wealthy
skipping IRS audits—all 5 auditors working on ‘Trump audit’?
GOP
fails to block China’s car maker in US transit: Follow the money. Buy
American???
Don Jr will tell all
in new
book even if from prison: follow the money
Ford
soon delivering pkg to your home by robots: $1,000 but no tipping needed
Coal
industry may be shut by insurers not govt to control storm damage claims
No
more low dose aspirin: bleed in skull
Trinity
Healthshare called sham ministry: deceptive
practices.
Life Partners Protective
Life caught
overcharging older investors in resale scheme.
“Credit reporting,
credit repair services” category with most
complaints at CFPB.
FCC
get carriers to block Robo calls? Lost revenue?
Morgan Stanley’s Tim
Prouty caught
using complex risky strategy: client wins $519,000
Randy Rodberg;
Andrew Costa; Claude Mosely; Marcus Bray caught
Woodbridge ponzi.
BBT caught
overcharging own employees in 401k: breach fiduciary duty.
Portfolio Advisors
Alliance, Allen, Wasserman caught
selling fraud private placement.
Daniel Pacheco, CA caught
selling speculation on ‘cryptocurrency’ pyramid
scheme.
Argyle Coin Jose
Angel Aman caught
selling Ponzi “fancy colored diamonds.”
TurboTax Uses A
“Military Discount” to Trick
Troops Into Paying to File Their Taxes
Weinstein pays $44
million for crimes but no
jail time: Moguls cost of doing business?
Trump Mob lining up pardons
for friends and partners: ‘Mobsters dream come true.’
The Mob
Boss can never go to jail: Trump
has Kava as Supreme so no contempt.
‘No man is above the
law’ … well up till now. Dictators
nullify courts first, then votes.
Supremes
protect Don’s ‘Orders’? – GOP: ‘Sure, prez
can change
Constitution anytime.’
Jobs:
Where did our
pay increases go since 1980?: the famous 1%ers took productivity gains.
Walmart next day
delivery for free
on $35 orders; Amazon $49 delivery free some ZIPs.
Ford
cuts 1200 from management; 7,000 worldwide.
Who owns your account now?
tap-to-pay
credit and debit cards issued by banks try out on NYC subways
Bezos
keeps all your transcripts of Alexa recordings even after you ‘delete’
them.
Miracle:
Another
body in space is not on same course as ours: we survive—it’s a miracle!
17
y old student set to graduate from Harvard just days after high school
diploma.
IAN
41 Watchung Plaza,
B242
973.746.2014
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