Friday, September 27, 2019

Are you being scammed?

Best evidence you are being scammed
A cold call, unsolicited letter or email! Think of it. You have been ‘chosen’ out of billions of people to receive an offer that sounds too good to be true. If the offer requires you to send money to get money or if it is heavily charged with emotion, you can’t possibly make a rational decision by yourself. You need help—any friend or advisor can help. The money strategy is complicated but scammer sounds like they know what they are talking about. Even Harvard endowment fund is fooled by bad direct investments. Scammer has your detailed personal info so they must be authentic agent of govt agency. You find a charge on your credit card you don’t recognize. Credit card charge is small $1 and you ignore it. Check out how much info you can find on yourself on the internet—just type your full name. You will be shocked to see a lot more than you want floating out there. Most of it can be used to rob you. You should go after every firm that offers to sell your data. It is said that scammers can buy your whole profile for less than $100.

Will you have enough?
How do you know whether your investments will provide enough money for retirement? Your advisor may not be a financial planner or have access to the calculators that can make an estimate. You should do a little homework just to make sure you know how you are doing since your advisor is unlikely to be around in 25 years. Retirement calculators like Vanguard’s Retirement Income Calculator and Vanguard’s Nest Egg Calculator can give you a feel for your accumulation progress. The value of these kinds of calculators is that they include the Time Value of Money. For instance, if you are due to have a pension of $1,000 a month when you retire in 20 years, it is sobering to know that it will be worth about HALF or $500 a month in purchasing power. Inflation of 3% is assumed in Vanguard’s projections so you understand that if you use bonds or CDs paying 3% a year as your investments, you will have NO real gains in 20 years. Only stocks with 10-12% total return can overcome inflation. Compounding is the name of ‘money earning money on itself’ when invested in companies like those in a low-cost market index fund. Compounding is how you can reach a $1,000,000 nest egg by investing $250 a month for 35 years. It is TIME, not stock-picking that wins according to Warren Buffett. When you avoid high-cost advisors, you earn 11% not 3.79% the average for ‘managed’ money.

What you own in your 401k stock fund
Many 401k participants make their contributions to low-cost stock index funds or Target-Date index funds. What do you really own? You own shares of a fund that owns stocks that make up the market. You own them through your share of parts of these firms:
1          Microsoft Corp.
2          Apple Inc.
3 Inc.
4          Alphabet Inc.
5          Facebook Inc.
6          Berkshire Hathaway Inc.
7          JPMorgan Chase & Co.
8          Johnson & Johnson
9          Exxon Mobil Corp.
10        Visa Inc.
Over time, you receive gains and dividends that provide a total return of 10-12%. In this manner, you can accumulate $1,000,000 with as little as $16,000. All it takes from you is patience. As Buffett proved in his win over 5 hedge funds, no person or computer can foretell the future. Buffett used John Bogle’s invention to win: “Don’t look for the needle in the haystack. Buy the whole haystack!” And the haystack gives you more!

Are you willing to wait for your $1 million?
You can accumulate $1,000,000 with as little as $16,000. All it takes from you is patience. But most of us have no more patience. Three quarters of those surveyed said they believe the dominance of digital technology, such as smartphones and on-demand TVs, are to blame for this ever growing lack of patience. Respondents reported becoming frustrated after just 25 seconds of waiting for a traffic light to change. Life moves at such a fast pace, we just don’t believe that it is TIME, not stock-picking that beats expensive money managers. Very few of us believe that just by avoiding high fees and trading, you can earn 11% not 3.79%. The facts and actual results don’t make an impact on most investors. We don’t learn about compounding in school so we assume saving in a high-interest bank account is the only way to become rich. Actually, the rich keep 60% of their assets in stocks compared to only 18% for US. Fidelity studied their most successful investor accounts: Best were forgotten—never traded, hedged, rotated, or churned. If you were running a business, you would NOT sell (trade) it every 6 months or year. You would keep working it to be rewarded over time. Like Buffett, just buy and buy more:

Is a Health Savings Account right for you?
First, you must buy a high-deductible health care policy from your employer: Deductible must be over $1,350 for individuals and $2,700 for families. Second, you need to have the money to establish and maintain a special savings account for your medical expenses. It is tax-advantaged so to help you, you must have sufficient income to need a tax deduction. Your employer can make the contributions for you. While your 401(k) contributions are subject to Social Security and Medicare taxes, contributions to your HSA are not. If you have HAS money left over you can let it grow year after year. After age 65 there is no penalty on non-medical withdrawals. Third, your HSA institution may charge fees. Fourth, depending on your medical expenses, you may pay more for health care coverage than using a traditional plan.

Converting IRA to tax-free Roth IRA?
You can amass a sizable tax-free income later in retirement by paying the tax due on your IRA, moving the money to a Roth IRA so that future earnings are tax FREE. There is no withdrawal penalty if you begin after age 59.5. However, after age 70.5 you must take certain annual amounts from your IRA so Uncle Sam gets the income tax you didn’t pay during all those accumulation years. It is called your RMD and it amounts to 3-4% of your overall IRA total. If you take it as monthly income, according to the IRS formula, be aware that the RMD must be recognized BEFORE the IRA conversion can take place. The RMD amount is first out in any given year. So if you take $2,000 a month as your $24,000 RMD, you can’t take $10,000 to convert to a Roth in the middle of the year.

Can you really save with ‘behavior’ car insurance?
Since everyone is different, we can’t tell without trying it. The app down-loaded to your phone records HOW you drive for 2-3 weeks. Hard turns and quick stop and go driving will dissuade from the low-cost rates. A quiz sets up the coverage you want. You get a quote: usually if you are an infrequent careful driver, you win. You must live in a state where it is available. Most large insurers offer some form of behavior-driven coverage. Savings depend on a host of other policy options.

This period is a test of democracy—do we really want it or not?
Queen and PM unlawfully shut Parliament on crucial issue: Democracy challenged in UK too.

Trump gives Saudis our forces: we already gave them planes and missiles—let them fight

American’s income is growing farther apart: Average worker’s income has not grown!
More welfare to Trump’s people: $28 Billion plus wasted in global competitive market!
Each state wastes $ millions: claims it ‘created’ jobs: NJ shows how Christie did it.

What happened to Trump’s Taliban ‘deal’: $2 TRILLION wasted so far
Trump's wall is 'totally absurd': Congressman climbs over to show how easy to scale.

We can’t avoid tax on retirement funds just by not cashing check: ‘Dog ate it’ not excuse
Moscow Mitch plays both sides: give states money to ‘fix’ election machines for USSR.
Trump rolled back legal clock to the 1860s: Destroy 13th, 14th, 15th, Roe, Voting Rights

Six annuity sellers caught replacing deferred annuity with immediate: cost $1.8 million

BEWARE: Brokers pushing ‘calendar risk reversal’ options—bet only what you can lose
Hidden costs of ETFs: these index funds are not always cheaper than the traditional.
Chris Kubiak caught stealing from elderly clients in Ponzi-type scheme: 2 yrs jail time.

Sprint caught taking subsidies for low-income Lifeline service not being used
Chrysler Fiat caught lying about emissions AFTER gov indicted VW

Boeing 737 inspectors were NOT really qualified to test pilots: led to 346 deaths

BEWARE: your ETF could disappear: 25% have folded; 7% lost big; fees hurt
Joseph Pratt caught insider trading on clinical trial info w/o notice to Wells
Trump to cancel $235,000 Duke grant: not enough emphasis on his fav religions!

Community College for the 1st year to get used to the routine of costs, class, study, work.

Who owns your account now?
ME to let customers decide which cable channels to buy: industry horrified by choice
Trump to end CA IRA: employers want to help workers save but broker fees left out.
Review: Vanguard new robo investing service is low-cost automatic investing

IRS is looking for your amended tax return: virtual currency needs new reporting.
Trump: broker/advisors beat you in any dispute: you can’t sue if you are mistreated
But Trump sues NYState—no mandatory arbitration for him! No rights for us!

Another 16 year old picks up VW for life: "I just thank God for putting me in the position and giving me the strength to do that."
Teach kindness: mindfulness and kindness actually alter the behavior of genes: mind therapy?

41 Watchung Plaza, B242
MontclairNJ   07042

Friday, September 20, 2019

Is your advisor asking the right questions?

Is your advisor asking all the right questions?
If you are near retirement, you are not going to know the answer to your retirement questions. How do you know you will have enough or if you will work in retirement or where will you live or have you moved all your old jobs’ 401ks to your money hub? Will you have paid off your credit cards, loans and mortgage or are you planning on carrying debt in retirement. Can you estimate all your income source amounts? Do you want to stay past official retirement age and can you downshift to less working hours? Do you use a balanced mutual fund or annuity to provide a fixed monthly income? How much of your nest egg will you give up for a fixed annuity for life, knowing you lose HALF your purchasing power every 20 years? You may be better off waiting until you are in retirement to pay for a real full-blown financial plan. Most advisors don’t have that experience. You are the only one who knows what you need.

Where can you find reliable ‘readable’ financial information?
The average readability score of the 60 sites of asset management firms analyzed was 37, (out of 100) which is the equivalent of requiring a college degree to easily understand communications, a new study said. The average American reads at an 8th-grade level, which is a score between 60 and 70 on a scale of 100. From this we conclude that the audience for these sites is not the average person but the high net worth folks who have money. The average American has little money to invest. Most are happy to match their contributions to a 401k or other employer plan. Further, the broker/advisor industry—the actual customer—does not want their clients to educate themselves. Vanguard had the highest readability score; Black Rock the lowest.

Have enough money to live past age100?
The number of people living past age 100 is doubling. No one knows how long they will need living expenses but you need a plan. When you reach your full retirement age, you can work and earn as much as you want and still get your full Social Security benefit payment. When you reach full retirement age, SS will recalculate your benefit to give you credit for months you didn’t get a benefit because of your earnings. In addition, as long as you continue to work and receive benefits, SSA will check your record every year to see whether the extra earnings will increase your monthly benefit. SS uses your ‘highest’ earnings for 35 years so you could increase your benefits by working at higher incomes. If your benefits began at age 70 (the highest level possible) then each year the amount increases based upon the cost of living increases. ($1 coffee in 1979 costs $3.53 now.) You can invest in higher return stocks even in your 60s and 70s since you won’t need that money until your 90s or 100s.

What happens to you when your advisor’s firm gets bought out?
You may become just a number. Despite all the assurances they provide, firms with cash are buying more firm’s clients to make even more. They are buying your quarterly fees which go up in a rising market no matter what your advisor does or doesn’t do. In fact you may have to pay higher fees and/or buy more products to stay. You may get a new person to ‘handle’ your account. It may be time to reconsider if a high-cost advisory service is really what you need. Today, you can buy money management that earns more since it costs less. You can buy a full retirement and estate plan for a set one-time fee. Both of these options are being picked by those who have tested advisor management and self-management. Some have made the change for more control and more earnings. Some advisors may think they are helping you by offering more services. But if you don’t need them, you are not going to be serviced at the same level. Like every industry, bigger and better is not always better for YOU.

Notice: new cars cost more
The average car loan for both new and used cars continues to rise, to more than $32,000 for a new car and just over $20,000 for a used car, Experian found. Since I have never bought a ‘new’ car, I had no idea that the ones in my parking lot are probably over $50K. People with average incomes are going to the used car lots more often. Today, 3 year olds are usually in better shape than in the past. Car brands that have a history of 200K mileage are made better so you can find a great bargain. Car shoppers could save more than $14,000, on average, by buying a three-year-old car instead of its new equivalent. Experian said the average monthly used-car payment was $392. If your credit is poor, try using a larger down payment so you are not paying interest till 2028. I shopped for my used Camry using 3 online sellers with specific attention to the dealer’s rating. I did not want to travel 60 miles to find that the seller didn’t actually have the one advertised. I used Guru, Edmund and Kelly. Then I checked the dealer reviews.

Vanguard to offer digital financial planner
Vanguard is offering financial planning and investment management for just a couple tenths of a percentage point of assets under management. It assesses clients’ risk characteristics; it exercises discretionary management over assets (including halting trading in cases of “an undue risk of harm”); and, perhaps most importantly, it includes goal forecasting. Digital Advisor is built on long-term, goal-based investing. Goals are currently limited to saving for retirement, but in the future will include “personalized financial goals.” It will also assess the feasibility of meeting financial goals using assets or accounts that Digital Advisor does not manage—the caveat being that since it is not managing those assets, it cannot increase the likelihood of success for those goals. Investors only need $3,000 to open an account and advisory fees are set at 0.20% of assets, charged annually and calculated quarterly, for managed retail accounts. There is also a 401(k) option for Digital Advisor, with a $5 minimum to enroll if the service is supported by the investor’s plan sponsor.

‘Professional’ money managers fall behind your index fund
New study shows that the most highly paid ‘institutional’ managers are doing worse than your simple market index fund. Fees and poor trading strategies are the reason. Institutional large-cap managers underperformed their passive benchmarks 85% of the time over the same 10-year period. Looking down the market capitalization spectrum, institutional managers fared even worse. Active mid-cap managers underperformed their passive benchmark at an 88% clip during the decade, while small-cap managers underperformed more than 85% of the time, net of fees. The results suggest that even with the purported higher overall quality and lower fees of institutional funds, active managers struggle to beat their passive indexes across most fund categories, particularly in equities. This confirms the scorecard kept by Dalbar: average ‘managed’ account return was 3.79% vs 11% for your index fund.


Tariffs cost each of us $1,000: wiped out the $600 tax cut last year.
Farmer Socialism can hurt our capitalist nation: soon everyone will want free money!

Trump wants war again: he’s “locked and loaded” but never served; now wait
2 former govt aides subpoenaed: They didn't show up. No arrest No fine No jail
Govt failed to protect 400,000 of us: opioid drug overdoses since 1999: No drug arrests.

Trump condemns CA residents to more smog: ends right to set own fumes limit.

Do any Sackler family go to jail for killing 10-50,000 a year? ‘None admit wrongdoing’!
Admission of guilt: Sacklers sent $1 BILLION to CH avoid paying for their killings
Fake Apple Support calls: scam for icloud data

Now chicken linked to cancer: air, meat, chicken, water, vegs, booze: nothing healthy?
General Nutrition Centers (GNC) caught promoting “phantom markdowns” on its site.

TV show ‘deals’ pays TV to hype stuff: ‘promotional consideration’ is kickback.

Zantac may not be healthy: FDA checking cancer links AFTER approval
Hackers stole $4.2 million from pension for retired Oklahoma Highway Patrol troopers   
Your ‘weed’ may give you extra kick: toxic pesticides

SEC finds more advisors trying to rip-of customers: high cost share class and 12b-1 fees.

Safeway AonHewitt caught charging 401k employees excessive fees: ruined retirements
Mediatrix caught stealing $35 million Ponzi: high returns no loss with algorithmic trading

Kevin Merrill, Jay Ledford, Cameron Jezierski caught Ponzi scheme 230 investors: ban
MyPayrollHR caught stealing $35 million in payroll from companies: went into clouds!

Jay Daniel Seinfeld caught stealing from terminally ill and dead with lies for signature
Check consumer complaints before you give anyone your money
Bank windfall: end of protection from another 2008 bank meltdown: $40B bonus!

Navy admits there are hundreds of UFO in the sky: so what? We’ve always seen them

$240,447 average comp for your experienced CFP advisor with commissions

Who owns your account now?
Some insurers make claim payments to VISA cards for faster service. ‘Best’ insurers rank
Where are your drugs the LEAST expensive? You can save 100-200% by shopping.
Our pensions at risk after many bought assets without knowing the risks: Chasing yields!
Mortgage re-fi time: fed rate lower may make it worthwhile even with closing costs.

Shopping for funeral? Internet lets you compare prices: Few tell all—Surprise!
Hundreds of working people donated enough $1s to save a forest/falls from development
Greta Thunberg to Barack Obama: 'No one is too small to have an impact'
Colt will suspend production of AR-15 rifles: ‘too many’ in the market now

41 Watchung Plaza, B242
MontclairNJ   07042

Friday, September 13, 2019

Target-date funds right for you?

Target-date funds are millennial’s choice investment
Many millennials are turning to target-date funds (TDFs) as a set-it-and-forget-it investing method. Although TDFs are gaining popularity with millennials and company-sponsored retirement plans, it’s important to know the benefits and risks associated with them. Almost all workplace plans offer TDFs as an option. This option may sound ideal as they will not have to choose which stocks and bonds to invest in, nor the percentage of each. TDFs are also set up to automatically adjust to a more conservative allocation of assets as the target date approaches. There is no research done to determine if the allocation is divided appropriately between stocks and bonds, based on the individual’s risk tolerance. Actually, the research is not conclusive on this anyway. This seems OK since retirement is far off. TDFs do not take into account an individual’s years until retirement, any inheritance income or lifestyle changes over time. This ‘average person plan’ may carry risks but most folks don’t have the knowledge to make a specific plan, especially at a young age. To their benefit, TDFs don’t take market conditions into account. Over time, market timing does not work anyway. TDFs are not for those who can afford to ‘plan for retirement.’ Since the average ‘managed’ plan reduces returns to 3.79% vs 11%, most retirement savers are better off with a low-cost TDF especially since advisors cannot know when the next 2008-type crash will occur.

Never rollover when transferring money from a retirement account
So says IRA guru Ed Slott: "When you do a rollover, three things happen and they're ALL bad!" The only safe method of moving tax-advantaged money is by direct transfer or trustee-to-trustee transfer also known as direct rollovers. You don’t touch the money. The funds go directly from one plan to another without anyone touching the money in between, as opposed to indirect rollovers, where a check is made out to the IRA owner or employee personally. Once your employer or plan cuts a check to you, it is too late. They have already coded the transfer as taxable to the IRS and taken out 20% tax. That means you pay taxes on the money and you may pay a penalty. It does not matter that you did not intend this to happen. Many plan clerks do NOT even know you can avoid the 20%. They don’t know about trustee-to-trustee transfers. Many swear you must withhold 20% when you move your qualified funds. Ask to speak to the supervisor FAST. Make sure your transfer is coded ‘G’ Direct rollover and direct payment on form 1099-R. If it is miscoded, ask for a ‘corrected 1099’ from your plan administrator.

If you hate to lose money, try looking away for a while
People ask me, where can I put my money that is ‘safe’? I say, is this money you need in a year or 5 years? Time determines the safety of money not the type of vault. I explain to them that earning 1-2% from a bank is ‘safe’ for 1 year but is ‘unsafe’ for 5+ years. Why? Money represents buying power and over time money loses buying power. You could buy a gallon of gas for $1.70 in 2016 but now it is $2.74. It costs $40 or more to fill up now. It was not long ago that you only needed $20. Food costs have risen. Warren Buffett, star investment advisor, says: “We continue to make more money when snoring than when active." Money grows faster when you put it to work and DO NOT watch it. Buffett won his $1 million bet over a Wall Street guru by ‘looking away’ from a simple market index fund which does not change companies over time. No trading, no quitting. In 2014, there were 72,197 Americans aged 100 or older. That’s up 44% from 2000. You will need buying power if you become a centenarian.

Put your money to work—so you don’t have to.
Accumulate $250,000, $500,000 even $1,000,000.
Compounding is what Warren Buffett counts on for success.
“My wealth has come from a combination of living in America, some lucky genes, and
compound interest.
How much can your money earn for you? $1 million from your $99,000 investment.
Your $250 a month investment may grow to $1,000,000 or more and it can be tax FREE. That $3,000 a year for 33 years ($99,000) compounds to $1 million if you put it to work: Low-cost stock index funds earn 11% per year after fees over time. Advisor-managed funds earn 3.79% over time. Compounding does not work as well if your advisor is trading, market-timing, rebalancing or rotating sectors.

NY best-interest rule keeps annuities that mislead out
More insurers are deciding to pull products like annuities and life insurance from the New York market as the state's best-interest rule takes hold. Lincoln Financial suspended sales of fee-based annuities in New York on Aug. 1 in response to a particular consumer disclosure required by the new rule, Insurance Regulation 187.​ The rule prevents acts or practices that are unfair or deceptive. It ensures that a transaction is in the best interest of the consumer and appropriately addresses the insurance needs and financial objectives of the consumer. New York's best-interest rule is part of a movement by some states to raise sales standards for brokers and financial advisers following Trump overturning the Obama regulation that aimed to increase the standards for retirement accounts like 401(k)s and IRAs. The New York rule is on par with and may even be tougher than the DOL fiduciary rule, which the insurance and brokerage industries lobbied hard to kill.

Rich would need to pay their fair share under Warren’s policy
The top 15 richest Americans would have seen their net worth decline by more than half to $433.9 billion had Elizabeth Warren’s plan been in place since 1982, according to a recent study. But that assumes their legion of lawyers and accountants did nothing—most unlikely. Plus, our representatives would receive countless $ millions in election gifts to make sure there are plenty of loopholes and subsidies to keep the wealthy, wealthy. You know they will never give up their tax-credit class status without a fight.

Taking money away from real military projects: ‘Nobody better at the military than me’

Trump allows our water to be polluted again: reverses another Obama reg
IRS goes after small $ cheats not the large $ evaders: wastes resources; we pay the taxes
Congress ponders 401k annuities: insurers’ lobby hard to capture huge profits. Danger! 

Certified Forensic Loan Auditors caught misleading US: loan modifications: fine, no jail 
Trump like Captain Queeg on Dorian path to AL: ‘I was with you all the way Alabama'
GOP scared to hold primaries: Trump challenge?: No need to vote: Democracy Trumped
Cruz threatens Trump: gun background checks ‘de-moralizes’ base; already no morals.

Anthem caught overcharging workers in 401k plan: $17 million reinstates pension dollars
NY state tax demand for immediate payment is fake: no passport, drivers license revoked
Hacker uses your credit card to open ApplePay account. Credit card bank cancelled card.  
Clayton Wertz caught making up security statements to help friend obtain bank loan

Beware: Advisors using ‘Christian’ labels: claim “biblically wise advice” for your money
Democracy Trumped: GOP cancels primaries: why bother voting for dictator Trump.

TX representative to Beto O'Rourke that his AR-15 "is ready for you": TX Death threats
CA to limit you to 1 AR per month: you can still buy 30 mags: some call this progress
Dems vote to keep oil drillers out of Artic land and oceans: Moscow Mitch says “Nyet.”
Courts lean right for the next generation: Money decides democracy fate.

Do any Sackler family go to jail for killing 10-50,000 a year? ‘None admit wrongdoing’!

Social Security cost-of-living adjustment (COLA) to be 1.6% for 2020.
Warren will raise Social Security benefits from high income earners tax: Boomer voters!

Who owns your account now?
Cars that lose value fast: Don’t expect much for your trade.
Never use your cell? 1 cent/min if you do.
Bargain hunters: If you love a great deal, check these Amazon retailers: shipping is killer.

It takes miracle to return to science: Dictator now dictates the weather: Science self-censorship can kill US. 
When on a plane next to autistic child, use your airsickness bag to reach out and touch.

41 Watchung Plaza, B242
MontclairNJ   07042

Friday, September 6, 2019

Pay off mortgage?

When to pay off your mortgage?
Unless you have a mortgage that can be paid off within 6 months, you have to consider your overall financial situation, age and resources to make this decision. Here are some of the guidelines.
1. For some in or near retirement, it would take their investment portfolio and retirement money to pay off their mortgage. If they spent it to pay off the mortgage, they would NOT have as large a portfolio to grow or provide income. Since some folks are earning about 9% on their money, they would give up adding to their nest egg. For instance, if you had $1/2 million in your stock/bond accounts like Vanguard's Wellesley Income Fund, you would be adding about $45,000 to your pile each year on average. If you used $200,000 to pay off the mortgage you would be adding only $27,000 a year. If the market went to 3%, you would add only 9,000. In that case, paying a 3-4% mortgage off may be the smarter move since you are earning less than the mortgage rate.
2. If you have a tax situation that allows you to take mortgage interest off your taxes, you would lose that every year if you paid off the mortgage. Some pay less tax with the mortgage interest deduction every year.
3. If you want to maintain a good credit rating, paying the mortgage every month like clockwork helps the rating go up. There is no benefit financially to paying it off except the peace of mind that you don't owe anyone. Some folks have the dough and can pay the mortgage off anytime if needed. In fact some have a home equity line in case of emergencies. They don't like keeping cash earning just 1-2% in a bank. 
4. Some would rather have the investment earnings now since they will probably live a long time and don't want to take a reverse mortgage if medical expenses hit later on. They want to keep assets growing. These are the folks who would never give an insurer a lump sum in order to receive a fixed income for life. Inflation cuts the buying power in half in 20 years and they expect to need more income not less in 20 years.

Give your child a leg up: If you start them investing early
How much does it cost to assure your child of a $1 million nest egg? It costs only $16,000 if you start their investment account early. Use Warren Buffett’s strategy.
Warren Buffett recommends we need only one account to grow a retirement fund. He beat 5 hedge fund strategies with this one fund. Unfortunately, the investment industry does not let our schools teach high schoolers the Buffett Strategy: One Fund; $200 a month, 8 years; buy and hold. It is called the Miracle of Compounding. If you use a tax-FREE account, the amount is not taxed—now or later. I learned from John Bogle that you give up 63% of your total potential nest egg if you pay someone 2% a year to ‘handle’ your money. Handlers only beat the market over short periods, not over time.
Warren Buffett’s advice:

Put your money to work so you don’t have to.
Accumulate $250,000, $500,000 even $1,000,000.
Compounding is what Warren Buffett counts on for success.
“My wealth has come from a combination of living in America, some lucky genes, and
compound interest.
How much can your money earn for you? $1 million from your $99,000 investment.
Your $250 a month investment may grow to $1,000,000 or more and it can be tax FREE. That $3,000 a year for 33 years ($99,000) compounds to $1 million if you put it to work: Low-cost stock index fund earns 11% per year after fees over time. Advisor-managed funds earn 3.79% over time. Compounding does not work as well if your advisor is trading, market-timing, rebalancing or rotating sectors.

Is your advisor a ‘hybrid’ or RIA or dually registered BD?
It may not matter to you how your advisor is operating but you will when you have a dispute. How you pay your advisor may be determined by the products they and their employer are legally allowed to sell. You may pay a monthly fee, a commission or a combination of those. A dually registered advisor is a registered representative with a broker dealer (licensed with series 7 (stock/bond/packaged products)) who also has a series 65 license (gives planning advice). Series 65 is also known as an investment advisor representative and leverages the broker dealers corporate Registered Investment Advisor (RIA governed by the SEC). A hybrid advisor has a series 7 and has their own RIA registered with the SEC or state regulator. RIA assets are held at a custodial firm. Your advisor could act on their own (discretionary) or need your permission to buy and sell each item. You give away control of your assets in a discretionary account and you usually pay a fee on all assets. This may stop churning your assets. But do they act as a legal fiduciary—give you the best deal possible? It is hard to know without research.


How Moscow Mitch got his name: GOP waved sanctions to let Kremlin buy KY town.
Our most revered marine quit: re: El Paso killings: “on that day we were all Hispanics

TX, FL receive Fed funds to open ObamaCare to more citizens health care
Trump eliminates energy-saving light bulb standards: wastes $ millions on electricity 
127 military projects shut by Trump taking Congress-approved money for his WALL

Which drug company exec will pay for Skaggs’ death: only Jail time stops drug dealers.
‘Drug dealers’ created the ‘Pain Movement’ to sell drugs and get rich: Yet, no jail time.
Soda drinks kill us slowly: Another study says cancer, disease, early death from garbage

Before you buy ‘autopilot’ car, check if you really can let it drive you: marketing hype.
VW lied about fuel economy: no fine so just cost of business to pay lawyers and drivers.

Elias Hafen, Wells-MS caught stealing $1.6M promised 6% no risk bogus security
Cetera Advisors CO caught NOT giving clients the best deal: excessive fees/kickbacks
Social Security number stolen? Act quickly. Fraud alert to files. Buy monitor service.

Somaderm Gel: multilevel selling scheme has NO FDA creds: just B.S. afterall.
Made in America? Or just marketing gimmick: FTC info.
Foreign exchange trading as a job? Average earnings $300 not $ millions

John Thomas, Thomas Becker caught sports bet fraud: felons promised 500% returns.  
Google YouTube caught collecting & selling data on kids: Fine, no jail time.
Consumer Financial Protection Bureau now shilling for H&R Block high fee card

Supremes’ Citizens United: US is a buy-representative-democracy: USSR can buy US!

TX loosens gun laws: more killings than Wild West ever had! NRA owns US reps.
San Francisco named the National Rifle Assn. a domestic terrorist organization.

Trump: West Texas killings that left seven people dead “hasn’t changed anything.”

Learn to communicate the right way: Buffett advice for advancement
Voting GOP has shifted: White wealthy non-college rising: evangelicals

Who owns your account now?
Our town or a KKK town? NC is still fighting the Rebel cause of whiteness. Booking healthcare providers

Instead of banning mass murder guns, some are building schools with curved walls???
"It's important that we help each other out. It's better than just sitting there.” anonymous gifts.

creative use of the power of the mind” will keep Dorian away from US: Marianne Williamson

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