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.
The BIG Con: Earn up to 7% with NO MARKET RISK
Looking for the Highest Guaranteed Return?
This is the current misleading ad from an annuity marketing firm. The
insurer is not mentioned—for good reason. The best REAL rate is
4.3% but you must keep your money locked up for 10 years or pay the
surrender charge. See the disclaimers: * Effective yield displayed. First year
rate is higher than subsequent years.** Rate may be lower in certain states. Only a gimmick or trick from a carrier
could show a pretend rate of 7%. But this is the only way salespeople
can get your attention. Unbiased information is not easily available because
most annuity contracts are complicated. 7% may be the ‘potential’ return for a
SINGLE period like monthly indexed annuities. However you need to be an actuary
to figure out how the terms of the contract will produce your real return. When I was in the business, we only
cared about the commission to us and how brokers/advisors could push the sale
to clients. None of us understood the actual calculations. But people will buy
anything when the alternative is a 3% CD and a volatile market.
Liberty Mutual claims it customizes Mr Landry’s special needs coverage: https://www.youtube.com/watch?v=qQnbL_5ZgbY
Every insurer claims “you only pay
for what you need” and then they go on to include in their ‘standard policy’ a
bundle that includes life, disability, accidental death, funeral, extraordinary
medical, income loss, medical payments coverage, and medical insurance. But
most people already pay for these coverages. Your premium is not usually itemized
so you
don’t see they add charges for towing and rental car loan and insurance
as well as accident forgiveness, waiver of depreciation, full replacement if
totaled, uninsured /underinsured motorist coverage, family protection coverage,
mechanical breakdown coverage, gap insurance, ‘stacking’ and many other
things. For instance, if you are insuring an older car you may not need
comprehensive coverage. You also may NOT be told about all of your insurer’s
discounts or their complaint
history. Remember, the commissions and profits are determined by the
premium you will be paying for the next 20-30 years. Every insurance company can ‘customize’ your coverage to pay less if you know their discounts and your
‘needs.’ Cancel double coverage you don’t need.
Bull market took 10 years to recover but what could you do about 2007-8?
Jeff Sommer writer of ‘Strategies’ in the Times, noted that it took a rise of 100%
after a 50% decline and so we should learn that “avoiding big losses was
probably more important than reaping big market gains.” YES, but how Mr Sommer?
He didn’t tell readers in
Nov 2007 that the market would drop and so get out. No
one did. Sommer advises us to look at longer periods to understand what the
stock market can do for our expectations. We don’t have to use the ‘artificial’
calendar cut offs to gauge performance. I don’t think any of us or our advisors
can predict the future so I refer him to the graphic
by Richard Bernstein or the chart
by DALBAR showing that our best
deal is a low-cost index
tracking the S&P 500. Yes there are ups and downs but I will take
10.98% a year since 1976. No other asset can claim that record: Govt bond 7%
since 1980; Corporate bonds
8% since 1973; Commercial real
estate 10.23% since 1996; Gold
5.5% since 1993; Commodities
4.2% since 1993. Owning the 500 Index is what Warren Buffett advises.
Is this socialism?
Trump is giving $15 billions MORE to farm corporations so they make
their profit goals.
Farm subsidies
go to 5 crops mostly. Large agribusiness corporations not family farmers
capture most of the $ billions. It is the marginal
family farm that will be hurt by Trump’s tariff war with China
Another type of socialism is the Export-Import Bank where our largest
corporations receive taxpayer-backed cheap loans they don’t need to make
more for shareholders.
Another type of
socialism is the price fixing that Congress allows to go on in the drug
industry. We allow the drug companies to collude
to raise prices on even the generic drug business the government established
in 1984. Most new drugs are actually created by the National Institutes of
Health (NIH). U.S.-based foundations
have increased their investments in discovery and development for new drugs
specific to their diseases of interest. After we pay for the research, the drug
companies pay for testing and distribution (nightly TV advertising too). The
government gives companies the legal right to make $ billions on each drug.
After 20 years the drugs are supposed to be supplied by the generic industry at
lower cost. This isn’t what happens. Congress
allows Pharma to manipulate the process. Studies looking at cancer
treatments have shown no
correlation between the price of cancer drugs and the benefits they provide. We
pay more for drugs—even 8,281%
more for generics—than the rest of the world. Our
government won’t bargain with Pharma on price so they are free to gouge us.
I pay $15 for one Januvia
pill here and $4 in Canada
The end result is socialism for the rich: https://www.amazon.com/Americas-Socialism-Rich-little-people-pay/dp/1535218584
Do you see a pattern investment strategy here?
This is the new Callan Periodic Table: https://www.callan.com/wp-content/uploads/2019/03/Classic-Periodic-Table-2019.pdf.
I hope you can see a pattern but I sure can’t. If you knew what was on top in
2019, you could put all your chips there. But most of us don’t know. Others
guess. Others read lines and charts and say they know. But they are paid to say
they know. And even the most successful investors don’t know. So what can we
do? Warren Buffett and John Bogle say, don’t try to find the needle, buy the
haystack. But it can’t be that simple since a whole industry is devoted to
finding that next big thing. And some of us pay them to do it even when they
fail.
How do you judge your broker/advisor?
Are they providing the best advice possible or just OK? How do you know? How
do you measure your success?
Which benchmark do they use to show you how well they are doing? You know they
must be paid but how are you paying them? Like every vendor you hire, you don’t
want to get cheated. Unfortunately, only
now is the industry starting to identify the bad brokers/advisors that move
from firm to firm. John Bogle, founder, Vanguard has created low-cost investing
so that we
don’t need to give up 63% of our total possible accumulations because we
pay too much. The actual returns of managed equity accounts have been tracked
over time. DALBAR’s annual study shows we average
investors earn only 3.79% on their money compared with the 11% from an
index. You can end up with $854,000 or $220,000 for retirement. This is why the
industry has changed. People need to hire a financial specialist like they
hire a lawyer NOT like a cable firm’s monthly retainer. When we have a problem
and need advice, we get it in a couple of meetings. Most
of us do not need to pay 1-2% of our portfolio every quarter so that our
advisor can tell us how we are doing. We can see it ourselves in our statements
and strategies. Learn how to judge. Pay less; earn more: 1% or 0.04%?
**************
Truth isn’t truth, his
lawyer says
Two Americas
***********************
How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!
Rubio
enlightens Trump on China trade: CEOs make deals not Trump: Follow the $s.
Senator
tells witness to violate the law: GOP backs Mob Boss to defy Congress.
Broker regulators just now propose warning
investors about bad brokers & firms???
Trump use war to win 2020 election? GOP
leaders never heard of Iran & war ships.
SCAMS/SPINS:
Trump
celebrating HIS birthday this 4th—it’s all about the Boss like Kim
in N Korea
Trump
tells Boeing just to rename the 737 Max: “consumers have very short
memory”!
Trump goes on attack
(best
defense is offense) against law enforcement: FBI,
CIA, Spys
FL
counties 2016 votes in doubt now: will Russia decide 2020
election? Trump win again
Trump
let’s banks charge $35 for accidental overdraft: reversing Obama
Trump
cutting Pell Grants for college education: sending money to the moon.
Melting
global ice pack allows more trade opportunities for Trump’s Mob, he says.
Coal industry changing
our species and habitats forever thanks to Trump’s Mob
Boeing ignored pilot
warning about 737: killed
189 and then 157 and claims safe
Trump
decides which products/firms he wants to win: he gives his tariff breaks to
them.
Debt
collectors want no restriction on calls/week or emails/texts intimidation. Trumpism.
TurboTax,
Block, others in IRS FreeFileAlliance hid
the free option so we pay more.
Roundup weedkiller jury asked to give
cancer victims $1 billion: Bayer hid health risks.
Child
abuse inside Scouts sends BSA into bankruptcy? 5,000
perversion files ignored?
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:
Insider attacks were
responsible for most healthcare
data breaches: Dr have BIG loans.
Boarding
homes for singles are back: Earn helping others in need!
23 apply for President: too
many so Trump wins again?
Who owns your account now?
Why
we return so many electronics: can’t get started to use: no user help, etc.
Can Trump stop
surprise medical billing? Some
Dr you never met bills you. $17,850!
WA first state give
residents public
option health care plan but run by insurers: 1st in US
United
Capital Financial Partners to Goldman Sachs Group
Miracle:
Habitat
for humanity owners get financial help from real planners in NJ
AL
has turned back time to 1960s when no abortions even if raped by a relative.
Move.
IAN
41 Watchung Plaza,
B242
Montclair, NJ
07042
973.746.2014
Alerts
No comments:
Post a Comment