Where to put your
money if recession talk scares you?
There is talk of
recession since people who claim they know economics get paid to scare us.
Since no one
knows for sure when and how this event will take place, we are on our own
to decide what to do. Some are already running for their money
market accounts even with low rates compared with inflation.
Clearly stock and bond markets will be unsteady. Our choice, as always, will be decided based
on our time horizon. Warren Buffett is looking for bargains at this point.
He already had tons of cash. But he isn’t selling his portfolio as if the world
will give up on capitalism. Long-term stocks will beat inflation. Our cash and
bonds may help us avoid a big plunge in current account values. However, like
Buffett, we should hold our long-term investments with a balanced approach. If
we need cash in the next year we should have been accumulating it up to now.
Many of our members have been buying the balanced fund Wellesley
Income for years since it has maintained a return of over 9% since 1970
with low expenses.
No-worry money
advisor: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957
Elder bankruptcy up
Bankruptcy
has increased to 12% from 2% in 1991 for retired persons. Weakened trade
unions, stagnated wages and the disappearance of pensions are among the factors
that contributed to rising elderly bankruptcy. Many retirees also face rising
medical costs as they live longer than expected and Medicare covers a smaller
share of their health care needs. What can pre-retirees do? Contrary to what
many people think, saving for retirement can help employees boost their ability
to pay their student loans, according to a CNBC article. That’s because pretax
contributions to traditional retirement plans can help minimize their adjusted
gross income. Since the monthly student loan payments are based on AGI, a lower
AGI could result in lower payments. “Any time you can put money into your
qualified retirement plan at work, it’s always a good thing,” according to an
adviser. The most important factor in avoiding a lack of cash later is using
the miracle of compounding as
early as possible. Compounding can double
your money in 7-10 years. Thus doubling your 401k contributions to low-cost
stock funds even at age 50 can improve your nest egg three fold. Warren
Buffett says compounding made him wealthy.
Is your advisor
helping you this year?
If you are paying
your advisor for money management—1-2% of your TOTAL nest egg—you have a right
to ask this question. What is their track record? The market has provided 9%
for the last 10 years including -37% in 2008 (2008-2018). So
far in 2019, you should have earned over 17% with
11% long
term returns. If that ‘professional’ advice you are overpaying for has not
been useful, perhaps it is time to switch to Warren Buffett’s strategy. When
you need special advice you could pay for it at the CFP’s
hourly rate like a lawyer. $750 for 3 hour review of your plan vs $7,500
over 10 years of fees. Otherwise, Buffett recommends low-cost index funds.
Morningstar has found that the most
important determinant of investment success is the cost.
DIY Financial Independence
Put your money to
work so you don’t have to.
Use your
IRS-approved tax shelter—Pay 0% on asset gains.
Accumulate $250,000,
$500,000 even $1,000,000
tax-FREE. You achieve Financial
Independence by having enough
money to do what you want. When you don't have to rely on work to survive, you
are financially independent. Playing it safe won't achieve it. You don't have to be super wealthy to become free of
money worries. Financially independent people have one thing in common: they put
their money to work so they don't have to. If you don't put your money to work,
you will never be free. 'Compound interest' is the name of the process
by which money makes money. You don't need to do a thing besides sending $250 to work every month. You earn money every time you buy things. You
own part of the businesses.
Compounding is what Warren Buffett counts on for success.
“My wealth has come
from a combination of living in America
compound interest.”
How much can your
money earn for you? It depends on how long it works and where you put it to
work. The best strategy is to use your Wealth Reserve to shield your money while it works in
places you shop. You can use a special IRS-approved Tax-FREE account to avoid
all tax on investment dividends, earnings and interest. You can also avoid the
fees and commissions on this account. Your $250 a month investment may grow to
$1,000,000 or more and it is all tax FREE. That $3,000 a year for 33 years
($99,000) compounds to $1 million if you put it to work: capitalism.
Women: Median
Retirement Income Is 42% Lower Than For Men
An average working woman
earns 21% less than an average working man. While a portion of this earnings
gap is caused by different career and lifestyle choices between men and women,
gender discrimination still sandbags women’s ability to earn an income and
thrive during their working years. The gender earnings gap has implications for
women as they age. For example, the average
woman qualifies for Social Security benefits 23% lower than the average man.
On average, women have life expectancies five years longer than men, requiring
higher levels of retirement saving. The report’s authors also found that women
face higher retirement health-care costs, needing an average of $140,000 by age
65 to have a 90% chance of covering their health care costs, versus $124,000
for men. Women have less income to accomplish higher retirement income needs
than men. So women have a greater need to make their investment dollars grow
faster than men. Warren
Buffett recommends that we are more successful investors by being patient.
Women are more successful investors because they are less likely to engage in
rapid asset transactions. Buy and hold is often the best strategy.
**********
How Govt wastes our money: Congress spends another 1.7 Trillion we don’t have!
Families
torn apart by Trump’s actions sue $ billions from US not Trump. harmed or fondled!
Trump’s 2017 tax
break for family recalled in Trump tariffs: we pay $1,000/year in tariff
Trump considers payroll
tax cut to boost failing economy: He also claims not failing!
Trump plans capital gains tax cut: why
even bother with Congress taxing authority?
Pentagon cancels ‘missile killer’ project: saves US $1.2
Billion
SCAMS/SPINS:
Bundling your car
and home insurance may not be as good for you as it is for insurer.
Trump
calls El Paso mayor a RINO to his face: Weak dictators insult grieving to
face.
NRA
tells Trump to forget background checks: blame mental ill as diversion for
votes.
Scam
to steal your Medicare ID promise screening for cancer: suffer emotional
abuse
Trump rallies are
full: participants
receive overtime pay from employers.
Trump considers cuts
to Medicare to trim deficit: Wealthy tax cuts created $1 Trillion
John Tillotson caught
impersonating clients to transfer funds to his firm
Scott Strochak Castleberry
caught
fraud promised insured real estate returns
Sheraton caught
letting legionnaires disease grow in water system: killed 1 guest
Insurance
firms pay police/prosecutor to convict customers of faking theft/damage.
IRS does not send
emails: do not
open email from them
Jobs
The war
for talent in the independent broker-dealer industry is real: Best get more
fees.
CEO pay grown 940%
since 1978, while workers’ pay only 12%. CEO’s power not skills
Execs
get the raises this year: workers get discretionary bonus for top
performers
Who owns your account now?
Low
cost places to live when you must start a new life on limited budget.
Vaping may cost you a lung:
heavy breathing can give high too.
WV
finds and returns $1.2 million in life insurance benefits people did not
know about.
Why Robo
callers can’t be stopped by government or tech or God: Window-dressing deal
Miracle:
Your lucky day: woman
survives chute failure 5,000 foot fall—hit trees at 120 MPH
Miracle
if Congress bans AR magazines: NOT for hunting; just killing: 41 in 32
seconds
Catholic teaching:
the priest’s
“racist” dog got black cleaning lady fired. He blames dog?
Trump retweet: Israelis
“love him [Trump] like he is the second
coming of God.”
IAN
41 Watchung Plaza,
B242
973.746.2014
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