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.
Let Buffett help
you: https://www.amazon.com/Warren-Buffetts-Investment-Strategy-Forget/dp/1484822900
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.
Keep your buying power: https://www.amazon.com/Just-Takes-Time-make-money-fashioned-way/dp/1979380945
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
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 New York New York New York
Fiduciary Rule protects US: https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275
Rich would need to pay their fair share under Warren
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.
Take your credits now: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382
**********
How Govt wastes our money: Congress spends another 1.7 Trillion we don’t have!
Taking
money away from real military projects: ‘Nobody better at the military than
me’
Trump
weakens protections for new financial products by giving ‘blank check’ to
firms.
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!
SCAMS/SPINS:
Certified Forensic
Loan Auditors caught
misleading US: loan modifications: fine, no jail
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: Scammers use fake news
sites to sell fake products: check address line.
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’!
Jobs
Social
Security cost-of-living adjustment (COLA)
to be 1.6% for 2020.
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. https://tello.com/rates/pay_as_you_go/United%20States
Bargain hunters: If
you love a great deal, check these Amazon retailers: shipping is killer.
Miracle:
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.
Can we do this too? https://twitter.com/ABC/status/1171149276812075011/
IAN
41 Watchung Plaza,
B242
973.746.2014
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