How can you make an
emergency fund?
My clients used many methods to have cash available when they needed it. Some strategies are just not possible for some folks. Of course, if you have a large Wealth Reserve, you already have your money for any contingency. I made mine by saving on all my insurance, mutual funds, brokerage, and banking costs. The other options: HELOC, CC, liquid 401k, brokerage stocks, CDs, IRAs, high pay job. Several obtained a Home Equity Line of Credit from their bank. They have $100,000 loan they don’t use which is backed by a 2nd mortgage on the equity in their home. It cost nothing to set up. Use it to make upgrades to your home and the amount borrowed is tax-deductible. Another group has tons of credit cards they keep in check so charging a couple of thousand is no problem. Unfortunately, a few think their 401k future nest egg can be cracked anytime. They would need to invest 5 times their withdrawal to make up for the Miracle of Compounding they gave up. Some have been playing the market and can easily cash in enough stocks to pay for an emergency. If they sell a stock that has not done well, they may take a deduction too. Most clients use CDs for their emergencies even if it costs an early penalty. It’s tax deductible too. IRAs are not like a 401k loan—whatever you take out will cost you taxes and sometimes a penalty. A loan shark’s loan would be cheaper than giving up your future. Obviously, some people make enough money that they don’t need cash sitting around earning 1% a year. They could get a bank loan with one phone call. Finally, my choice when we recently needed a new used car: $12,000 HELOC loan at 3.5% put me into a 3-year-old Camry, made right here in theUSA Georgetown , KY.
My clients used many methods to have cash available when they needed it. Some strategies are just not possible for some folks. Of course, if you have a large Wealth Reserve, you already have your money for any contingency. I made mine by saving on all my insurance, mutual funds, brokerage, and banking costs. The other options: HELOC, CC, liquid 401k, brokerage stocks, CDs, IRAs, high pay job. Several obtained a Home Equity Line of Credit from their bank. They have $100,000 loan they don’t use which is backed by a 2nd mortgage on the equity in their home. It cost nothing to set up. Use it to make upgrades to your home and the amount borrowed is tax-deductible. Another group has tons of credit cards they keep in check so charging a couple of thousand is no problem. Unfortunately, a few think their 401k future nest egg can be cracked anytime. They would need to invest 5 times their withdrawal to make up for the Miracle of Compounding they gave up. Some have been playing the market and can easily cash in enough stocks to pay for an emergency. If they sell a stock that has not done well, they may take a deduction too. Most clients use CDs for their emergencies even if it costs an early penalty. It’s tax deductible too. IRAs are not like a 401k loan—whatever you take out will cost you taxes and sometimes a penalty. A loan shark’s loan would be cheaper than giving up your future. Obviously, some people make enough money that they don’t need cash sitting around earning 1% a year. They could get a bank loan with one phone call. Finally, my choice when we recently needed a new used car: $12,000 HELOC loan at 3.5% put me into a 3-year-old Camry, made right here in the
Which annuity is
right for you?
An annuity in its simplest terms is a string of benefits. Lottery winners often have a choice: annuity or cash. Last Saturday’s $344.6 million Powerball jackpot winner was Charles Jackson. He claimed his prize: cash option of $223 million or 35% less.Jackson Jackson
An annuity in its simplest terms is a string of benefits. Lottery winners often have a choice: annuity or cash. Last Saturday’s $344.6 million Powerball jackpot winner was Charles Jackson. He claimed his prize: cash option of $223 million or 35% less.
Consider all the
payout options: https://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/B01K94403E
Value over price
Warren Buffett has maintained his rep as one of the greatest investors of
all time because he knows the difference
between price and value. His teacher at Columbia
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.
Is your advisor
giving you their ‘Best Interest’ or Fiduciary advice?
Your brokerage firm
is rejoicing with the recent decision: SEC
has downgraded the client treatment rules just for them. The issue comes
down to this: Brokerage owners need profits and you have the money. You can pay
more for their facilities over time or you can pay a planner only when you need
a full plan. My family CFP got paid for a comprehensive plan that shows how we
can pay our bills for the rest of our life using the Vanguard funds we’ve built
up for years. The SEC
terminated the Fiduciary Rule to make brokerage happy. Brokerage sells products
and if they don’t hurt you, that
is in their ‘best interest.’ Helping you reach your goals is NOT "solely
incidental" to you even though this is the exception brokerage uses to
NOT do the right thing for you. How is putting a 90
year old widow’s nest egg into an annuity the ‘right’ plan. That model is
not the best for you. Your financial picture is not helped by giving
up 63% of your total possible accumulation during your working years. That
is the effect of paying 1-2% of your nest egg as it grows over time. The DALBAR
study shows a shocking 3.79% average earnings in investor’s managed equity
accounts over time. You deserve the Fiduciary Rule which requires sellers to
put your profits ahead of
their profits.
Where have all the
increases in productivity gone?
In 1978 our boss
made 30 times our salary. Now, the average CEO pay is 271 times the nearly
$58,000 annual average pay of the typical American worker, according to a
report from the Economic
Policy Institute. We were promised that we would not have to work as much
since the value of our use of automation quadrupled our output over previous
generations. In 1981, I worked with an outside company’s computer programmers to
automate our data capture and reporting system. We saved thousands of man hours
of hand-tabulating and writing reports. But I and the 50 or so of my staff were
not rewarded. Instead I could not fill positions of retirees. Instead of
training our folks to handle the data process, management outsourced it until
the ‘systems people’ handled everything. This process has been repeated
thousands of times in America India
Use the power you have: https://www.amazon.com/Working-Millionaire-Tax-FREE-Self-insure-Self-fund/dp/1460945484/
Is your advisor
honest? Truth in financial selling
Advisors are sales
people. The firm decides the products and price you are offered. How do you
know their product recommendations are the best for you? Do you know what the
product is worth to the advisor? Is the firm licensed to sell this ‘great
deal’? What other options are available? Could you negotiate your advisor’s
charges? Do you know all the good and bad about this product? Does your advisor
share the product experiences of others? What happens to your account if your
advisor moves to another firm? Does your advisor explain the tax consequences
of this product in future years? What happened at your advisor/broker’s last
firm to make them leave? How do you know when you are overcharged? Does your
advisor speak ‘financial
jagon’? What does __ mean?
Learn the tricks
before it’s too late: https://www.amazon.com/Avoid-Scams-Brokers-Advisors-Sender/dp/1726328023
$$$$$$$$$$$$$$$$$$$
How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!
Today Trump
changes his mind about raising prices on all food, cars etc from Mexico
US to
Send 1,000 More Troops to Poland: 5,000 troops to scare Putin?
GOP
halts funds for election integrity: no voting machine
‘hacker-blocks’--paper ballots?
IRS says OK to discriminate against NJ homeowners: Trump
decides who pays taxes
Defense Dept not
allowed to protect bases from climate changes: Words actions banned!
Arming
both Israel and Saudis etc is asking for another war: Can Congress block
sales?
WA
state allows personal use of drugs: empty jails or cost more later?
SCAMS/SPINS:
GOP
pays to put ‘citizen’ on census even tho Constitution says ‘people’:
democracy??
Govt study says catastrophic
climate change unless extensive fixes started.
Catholics to discuss
their child abuse and
accountability AGAIN: dodge the law?
Religious
leaders, above the law, want to control abuse
reporting to legal authorities
SCAM: undelivered
email being held for you—don’t click link
Dollar General caught
charging more at register than shelf price list.
Insurance agents caught
rolling 401k retirement money to annuity: it’s illegal so cancel.
When
NOT to file a car or home claim: It may cost you more than it’s worth!
WalgreenBoots taking
health benefits from retirees before Medicare kicks in.
Leon Vaccarelli, CT caught
money laundering in a Ponzi scheme
Glenn Mueller
Northridge caught
selling fake promissory notes & limited partnerships
Nina Jessee, Cetera caught
doing outside business, not cooperating with its investigations
Kimberly Kitts MA caught
stealing $3 million forging signatures, fake statements –jailed
Jovannie Aquino, Windsor
Street Capital caught
churning clients' accounts—defrocked.
Brokers
can’t call themselves advisors anymore: SEC rules against this marketing
tool
Genetic testing: misleading
and misunderstood prognostication.
Balance or out of
network surprise billing: challenge
any who you did not pre-approve.
LA
state run health insurance to combat ObamaCare: ‘high risk pool’ cheaper?
Jobs:
Are you still
getting low
wages with the employment rate low? Won’t get better than this
Average employer
401(k) match reached 4.7% this year: new
high will last?
Who owns your account now?
CO
health plan may expand and lower costs of ObamaCare: model for US?
CA
to shore up Obamacare: State fills in gaps created by GOP.
Monopolies
raising health care prices throughout the systems of care: no competition.
HELOC or Home Equity
Loan: Pros
& Cons which is right for you!
Where
are your old employer 401ks? Frozen in bankruptcy? Never leave it with
others.
Amazon
owns your talk, voice print, ideas: You can’t
delete: Big
Brother is here
Miracle:
AZ law
protects seniors from financial abuse but gives advisors immunity.
Who
are these kids who saved the life of a neighbor? They’re your next door
neighbor.
IAN
41 Watchung Plaza,
B242
973.746.2014
Alerts
No comments:
Post a Comment