Millionaires have
spent years saving just like us
The study found that a majority of people who have $1
million or more in investable assets do not
consider themselves wealthy. In fact, only 13% of that group see themselves
as being rich. But 53% of millionaires said they have a specific target amount
or a rough idea of how much they need to save and invest, with 43% indicating
that they have a detailed plan. Only 4% of respondents said they do not have
any type of financial plan. Most juggle many financial goals, wants and
needs. Almost half said they handle investment decisions by
themselves. Most said “experiences are more important than
possessions” so their money goal is matched to doing things not buying
things. What makes millionaires different is that they put their money to
work as hard as they do. And they
do NOT pay others to “handle investment decisions.” That reduces their
earnings. The only way to reach their money goals is to invest in a broad array
of stocks and stock mutual funds at cost. They earn over 11%
a year not 3.79% with a ‘managed’ account.
Use Vanguard’s Best: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X
Investing books for young and old savers
John Bogle, founder of Vanguard’s low-cost mutual funds: pay
less; earn more!
Burton Malkiel, Princeton , indexing
not stock-picking makes you rich.
Stanley/Danko, study of HOW real working millionaires live
and earn their money.
Warren Buffett, successful investor, shows you how to create
financial independence.
Inflation will take HALF your nest egg in retirement
Over your retirement years, your purchasing
power will fall about 50% due to inflation. This is one reason an annuity
offered by your advisor will not be best for you—the monthly benefit buys less
every year. Your $1 million at age 65 will be worth about $500,000 by age 85.
If you plan on taking 4% a year for expenses, you need to make 6+% a year. This
is do-able if you invest at least HALF your bundle in stocks or stock funds. You must bust inflation wide open or your
future income is in jeopardy. How can you do that safely? A little risk goes a
long way. Think of it this way: part of your assets are for 2 years out, part
for 10 years out and part for 15+ years out. Don’t think that all your assets
will be needed at the same time. You can afford a little risk with those 15
year assets. Your bank CD/money market works for 1 year but won’t cut it for
later. For later, a balanced fund is best. A long-term winner is the low-cost
(0.23%) Wellesley
Income Fund. Its allocation of 60% bonds/40% stocks and has provided nearly
10% a year since 1970. Plan 2 year, 10 year and 15+ buckets. Use buckets in the
same fund family.
Kill inflation: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716
Why does stock-picking and market-timing NOT work for us?
If you watch or read about Wall Street titans, you might
think that you need an advisor to help you grow your investments. NOT TRUE. Fidelity
found that their client accounts that were most
successful were those put on automatic--left alone--forgotten. Our
greatest investor Warren Buffett said, "The stock market is a device for transferring
money from the impatient
to the patient." Buffett claims that his holding period is forever. He
advocates compounding (allow earnings on earnings to grow
exponentially): "My wealth has come from a combination of living in America ,
some lucky genes, and compound
interest." Indeed, he has owned many companies and stocks for a
long time: GEICO, Coke, and American Express. He uses the earnings to buy companies.
His strategy works because his money does NOT trade, rebalance, market time,
buy high-sell low or sector rotate—it compounds: money earning money
automatically. Keep advisors away.
Use the Best Robo: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957
How much of your
401k money goes to other people?
Many working people
think that their retirement plan at work is free because fees are not shown
in their statements. This
is another Wall Street trick. It is your money but the people your boss
hires to manage it take a large share. There is your plan administrator, the
person who sold it to your boss and the mutual fund that invests the money. Now
Fidelity
admits there are ‘secret’ fees too. All told, you could be paying over 2%
of your 9% earnings to Wall Street and your
boss. Over your working life, the costs can take up to 63%
of your possible accumulation. So instead of you retiring with $1.1
million, you
receive only $660,000. You can avoid giving away $510,000 by using your
401k only if you receive a match and only if you have a low-cost stock plan
option. Many savers have stopped
using their 401k and set up automatic investing with a low-cost mutual firm
like Vanguard, Schwab, TD Ameritrade using an IRA or Tax-FREE Roth IRA. These
trusts protect your accumulations and save you having to move your 401k when
jobs change and in retirement. The trustee debits your checking and invests
your contributions like a 401k. However, you earn the full 8-11% in a stock
fund costing as little as 0.04%. It’s your money and you take all the risks.
Keep more of your
earnings: https://www.amazon.com/Pimps-Wall-Street-money-middlemen/dp/151525254X
**********
How Govt wastes our money: Congress spends another Trillion we don’t have!
War machine gets raise: $738
B up from $611 B. 165,000
military guarding others.
GOP
endorses deficit spending and tax giveaways to the wealthy: Cut food stamps!
Trump’s
mob will start killing people they don’t like. Feds have not killed since
’03.
CA
raises air quality despite Trump—reduces auto emissions.
SCAMS/SPINS:
Swapnil Rege caught
overcharging $600,000 for investments: barred for 3 years.
Charles Kenahan, 30
yr broker caught
excessive unsuitable trades: $40 million fine
Michael Garris caught
trading in a dead man’s account for fees—barred 1 year, no jail
Douglas MacKinnon
and Mark Gray caught
inflating debtor’s debt to rob them. No jail
Tom Fallon, CA caught
money laundering, grand theft of clients' workers' comp checks.
Robert F. Montes,
Wells Fargo, defrocked
for uncooperation in misuse of funds probe.
BEWARE: Apps
on phone take data even when you don’t give permission.
AT&T,
cell carriers sell our data to location ID firms: anyone can buy for $300
for stalk?
‘Prevagen
improves memory’ continues to defy FDA denial: sued for fake study.
‘You
can see the doctor now’ BUT only by TV: Telemed cheaper for our boss!
You
can no longer go to ER: routine care costs $2,032 but family doc too busy!?
Do you get a whole
month vacation like Congress?
National problems solved: Zero.
House not Senate
passes anti-robocall bill. Can
Senate overcome lobbyists?
Jobs:
Pope
gives corrupt WV Bishop a pension instead of $2.4 M theft sentence.
Who owns your account now?
Safe
deposit box is vulnerable: banks don’t insure: renter “assumes all risks”—insure
it.
Miracle:
Trump: “I
just don’t want to kill 10 million people.” Planned to drop ‘enormous
bombs’
Police
recapture ALL couple’s retirement money from fake bank 5% CD scam
IAN
41 Watchung Plaza,
B242
973.746.2014
Alert
