Friday, October 25, 2019

Are Warren Buffett’s Vanguard funds right for you?

Are Warren Buffett’s Vanguard funds right for you?
Warren Buffett, one of the greatest investors, recommends we invest in only 2 funds: Vanguard funds. There are over 9,000 mutual funds and over 5,000 ETFs (index funds) to buy. Why did he pick just 2? He beat 5 Wall Street guru strategies with Vanguard’s 500 Index. It is low cost and diversified across many industries. The Vanguard 500 Index has returned about 11% per year since 1976. Buffett notes that compounding has made him wealthy. He recommends Vanguard because it provides high returns at low cost. His holding period is “forever.” His mantra is “we make more money when snoring than when active.” Why don’t all investors follow his advice: hubris and greed! People think they or their advisor can beat the market even though they can’t year after year. The average investor’s managed account earns just 3.79%. Trading reduces the benefits of compounding. Market timing is never perfect. Buffett says just ignore market gyrations.

Social Security benefits rise in 2020
Wealthy people receive even higher benefits in 2020: $3,011 per month. That extra $1,800 a year comes from higher pay but a cap on their tax: incomes over $137,700 are not taxed at all! Those who need SS benefits the least don’t have to pay 6.2% of their income like we do. This is ‘Socialism for the Rich’: From the poor by law to the very rich by design. The wealthy folks’ benefits rise but they stop paying the 6.2% tax when their income rises above $137,700. We always pay 6.2%--they stop at the cap. The average benefit is $1,485: an increase of $24. Most of us fear GOP will reduce benefits to pay for their tax breaks. SS trustees estimate a benefit CUT in 2034. GOP has called SS benefits “socialism;” yes, Socialism for the Rich. Plan for the cuts now!

Is equity rebalancing right for you?
Rebalancing means buying and selling securities to maintain the proportion you feel comfortable with. Example: you want to keep 60% of your money in equities for the foreseeable future. Equities grow to 70% of your total portfolio in a year so you sell 10% and buy the other securities to maintain the ‘balance’ overall. But if you do this, you may have higher taxes and a lower return over time. The tradeoff is you can sleep at night despite the market volatility. However, it you don’t look at your account, you can ignore the market gyrations and earn a higher return. Vanguard has provided an analysis of different rebalancing strategies (timing and portfolios) to illustrate the relationships. However, John Bogle, the founder of Vanguard, advises: “I don't think you need to do it. And sometimes rebalancing improves your returns. Sometimes it makes them worse.” “There is a comfort level …. So it's a behavioral problem.” If it makes you feel better, rebalance. However, don’t expect the market returns of 11% over time: $250 a month compounded at 11% provides about $1 million in 34 years vs $500,000 at 8%. Big deal!

Is a balanced fund right for you?
Instead of rebalancing (selling and buying for fees) on your advisor’s orders, maybe a better plan is keeping a balanced fund fully funded. Take the Wellesley Income Fund. This 40 year-old, income-oriented balanced fund offers exposure to stocks and investment-grade bonds. This fund is unique in allocating about one-third to stocks and two-thirds to bonds. The fund’s stock holdings are focused on companies that have historically paid a larger-than-average dividend or that have expectations of increasing dividends. This focus may provide a higher quarterly income distribution. As a result, you earn a consistent 8-10% return over time without wild market swings.

Why compounding your earnings is considered a ‘miracle’
Compounding is a miracle because you can accumulate over $1 million by investing just $3,000 during your working years. You can expect to earn the market returns of 11% over time: $250 a month compounded at 11% provides about $1 million in 34 years vs $500,000 at 8%. That is a quite a difference! Of course you must invest in a low-cost stock market index fund and avoid trading and advisor fees. Actually, this is exactly what Warren Buffett, a successful investor, recommends: "A very low-cost index is going to beat a majority of the amateur-managed money or professionally-managed money." He says: "My wealth has come from a combination of living in America, some lucky genes, and compound interest." Every $20 invested in stocks is worth $770 in 35 years.

Why do more investors go it alone?
You might have noticed the trend to investors going the Do It Yourself right-of-way. First, everyone thinks they are above average investors. Actually, the average investor earns only 3.79% over time while a simple market index earns 11%. Second, dealing with an advisor/broker can hurt you financially. Even top firms don’t control their Reps well: JP Morgan was caught not disclosing advisor fraud, stealing, lying, forging, etc etc. Reps are not reported quickly if at all and no one at the firm goes to jail. The industry considers bad behavior just the cost of doing business. Morgan employs 26,000 Reps. They “prevented or delayed regulators, other member firms, and the public from learning about those events and, in certain instances, prevented the regulator FINRA from pursuing potential disciplinary action.” Example: 12b-1 fees and revenue-sharing from mutual funds to advisors are often not disclosed. SEC says “investment advisers have not appropriately addressed these conflicts of interest." When I worked for a Wall Street firm and my advisor screwed up, my own compliance department dismissed my complaint. Third, industry lobbyists got Trump to cancel the Obama’s Fiduciary Rule that held Reps to a higher standard of ‘give the client the best’. Avoid industry Tricks of the Trade.


Like 1776, this period is a test of democracy—do we really want a mafia boss prez?
Trump’s lawyer says he can shoot a person and not be prosecuted; above law?

million military in 151 countries: After 60 years 55,000 are ‘defending’ Japan; 43K in HI

DNA test: where some people in world share your DNA: Not necessarily your homeland

TurboTax lobby tells our reps to keep it complicated and tax prep costs high: Reps agree
Fake celeb health miracle ads use Facebook: check internet reviews first
BEWARE: You can catch malware at the App store and not know it.

James Booth caught stealing $5 million from clients: 20 years prison
Steven Yellen caught trading without permission: fine no jail
New York’s Central Park skating rink lost $ millions so now Trump name removed.

Allina Health caught breaching fiduciary duty to employees: expensive funds
37 New Cars to Avoid: Not the best deal for your money

Admissions ethics changed: incentives bend college recruiting rules: big money made
Charity scams grow: Check them at CharityWatch, Charity Navigator or GuideStar.
J&J CEO caught: lied about baby powder with asbestos—FDA found asbestos—recalls.

EXXON Sec of State Tillerson caught: lied about costs of climate change and oil
Most states NOT giving driver data to Trump for immigration harassment: illegal

Trump’s ‘middle-class tax refund’: 2.7 million fewer people got tax refunds this year
GOP new health care plan has No Details: Election counterpunch hype

Trump’s protection racket on Ukraine: Diplomat explains Boss demands or no money
Perry flouts Congress subpoena on Ukraine involvement too: Everyone above law but us?
Trump dis-awards 2020 G-7 to is own resort: our taxes pay for resort $ million upgrades
“We’re building a wall in Colorado, beautiful wall, big one really works”: Not on border!
Trump claims Fed prosecutors can identify mass shooters BEFORE: make them see shrink?

“Lynching” people is just an “unfortunate choice of words” according to GOP.

Now computers decides if you get the job at Hilton, Unilever, Goldman Sachs. New “C”
Accountants at Ernst Young told how to walk/dress: “Don’t flaunt your body” 55 pages.

Who owns your account now?

Alaska may never be the same: dead salmon need a miracle to return
ObamaCare plans cost LESS: premiums drop 4%
Quantum computer solves problem in seconds regular computer takes 10,000 years.

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MontclairNJ   07042

Friday, October 18, 2019

Should the wealthy pay Social Security too?

Is it time to have the wealthy pay the Social Security tax too?
On our pay stubs it lists FICA—the Social Security tax we all pay. Well not all—the wealthy stop paying the tax when the tax becomes ‘serious.’ For 2019, the maximum wage base is $132,900. They pay nothing on most of their income. But now that most of us wage earners are paying a higher rate than the wealthy, isn’t it time for them to pay their fair share? Since our incomes have remained flat since the 1960s, we cannot save for retirement like we used to. We have no more employer-funded pensions. More of us are relying on Social Security for the bulk of our retirement income but few of us can live on $1,460 a month. It would only be fair for those earning over $132,000 to pay the same rate as we do. We all should pay the 6.2% we pay. The income tax is no longer a progressive tax. More of us pay 32.9% compared with less than 20% that the wealthy pay. As Buffett pointed out, he pays only 17.7% with no special tax shelter. Corporations like Apple, Google, Amazon, Boeing, and GE have overseas shelters to hide their incomes. So 2/3rds of all businesses pay $0 tax. Plus we taxpayers must subsidize many profitable businesses like oil, gas, agribusiness, air carriers, etc, etc. Many aren’t even American. It is time for the wealthy to contribute to this society like they once did. Besides, they will never miss the 6.2% of income anyway. We all need a tax shelter.

Why do car dealers make the financing so ‘sweet’-looking?
Low payments for 84 months make your dealer the highest profit--$982 on finance and insurance. The dealer’s F&I person is one of the highest paid. The salesperson is just the demonstrator since they don’t have the actual financial contract details. They don’t know your credit score so can’t make the deal. So negotiate everything with the real seller, not the salesperson. It is the person who can change your financial deal. They are the most important person in the deal. When I bought my used Camry, the salesperson failed to disclose a bad battery and damage to the backseat upholstery. When I was handed off to the F&I lady, I asked for an extra $500 off so I could live with the ‘bad’ upholstery. I had to charge my own battery to drive back so they could replace the battery. This dealer did not have bad ratings. I told them I would pay cash for the deal but they said they would redo the deal if I financed. I financed half the deal and then paid it off within 6 months using my HELOC to save money. Extras like ‘gap’ and glass coverage in a car deal are where they make their profits. Extras like health and life coverage in vehicle insurance are where insurers make profits. Decline the extras. Ask for each discount by name.

Is ‘sector rotation’ right for you?
This is a market timing strategy involving the movement of money from one industry sector to another in an attempt to beat the market. However, you know how well market timing and forecasting has done in the past. It does not work. This strategy took root in the past when some investors noticed that the ‘business cycle’ has winners and losers. Since it is impossible to predict what happens to individual equities, this strategy thinks whole industries rise and fall together. Consider the Callan Periodic Table:
Can you see the pattern? I can’t either. How about this chart of market returns? There seems to be some pattern here—at least for this 20 year period. This pattern says buy Energy, Health, Info Tech, Small Cap Value ONLY since the returns are above 10%. However, most of us are barely earning above inflation probably because we try to time the market. And lately, these 4 sectors have done poorly. So we should stop trying to time the market and listen to Buffett. He maintains that we win if we are patient. In fact he won a $million bet recently by betting on the top 500 stocks OF ALL INDUSTRIES. Forget Wall Street strategies and take the 21.5% YTD from Buffett’s favorite index fund.

Is your advisor’s firm cited for lack of controls?
Officials at FINRA the financial industry ‘self-regulatory’ body have cited a number of unnamed firms as having “nonexistent supervision” allowing salespeople to take advantage of customers who have no idea what they are buying. Firms let reps ‘run amok’ without any idea what goes on in their branches. They don’t even correct the mistakes that they find. Unfortunately, this report keeps the firm’s name secret so that the report does no one any good. We can’t avoid the firms that will let their staff steal from us and the firms can hide their misdeeds from public pressure. There is no incentive for the unscrupulous firms to get better. Obviously, the SEC authorities have done nothing to change their behavior over the years they have had the legal means to do so or we wouldn’t be in this spot after numerous reports on the same firm malfeasance. One of the FINRA staff told me they never divulge the violators. Clearly, this organization has no interest in cleaning up its own industry. Avoid the unscrupulous firms and advisors.

10 vehicles you might want to avoid
These models and perhaps they’re parts will not be available in the future. On the other hand, you may be able to pick up a bargain if you are flexible: Volkswagen Beetle and Golf-based SportWagen, Ford Taurus and Fiesta, Chevrolet Volt and Cruze, Cadillac ATS Coupe and CT5, Lincoln MKT, Buick Opel Cascada. Instead, consider the current best sellers like Hyundai Elantra:


Like 1776, this period is a test of democracy—do we really want it or not?

Our ‘vacation’ homes: 49 million units at-risk areas U.S. coast: $1 trillion taxes buy out
Russia is taking over as a power broker in the Mideast. Trump’s gift for helping election.

FL will require high schools to offer Christian religion study: FL forgot constitution

Keith Wakefield IFS Securities, caught "fraud" and "placing fictitious trades" defrocked

Stephen Klinger caught traded options in his own account with client money: defrocked 

CA bans robocalls 2021: why give criminals two years to rip us off?

J&J caught selling baby powder with asbestos: lot #22318RB & pelvic mesh

Trump shooting/stabbing media organizations and some of his most prominent critics 
Middle-school bullying expert explains his problem and solutions          

Cutting immigration cuts our future jobs:  immigrants start companies at twice the rate of Americans. Almost half the companies in the Fortune 500 were started by immigrants.

Who owns your account now?
Cars under $10,000 for transport, luxury, sport: many built to last: reliability check

No US troops killed by Turkey’s attacks on US troops supporting Kurds

41 Watchung Plaza, B242
MontclairNJ   07042

Friday, October 11, 2019

How long to hold stocks?

How long do we have to hold stocks to win with stocks?
Wall Street media gives the impression that we should sell just before they go down when an analyst thinks they will. But analysts can’t see the future. So we follow someone’s ‘advice’ or the crowd and we lose. Guess what happens? Advisor-managed equity accounts earn 5.19-3.79% vs 9-11% for a simple market index fund of stocks that remain for long periods. What does one of the most successful investors say: he says hold them “forever.” He bet $1 million against a Wall Street guru to prove it. He has owned Coke since the 1980s; Geico since 1996; Amex since the 1960s; and many more. How has Buffett done so far? His average return is 20.5% per year since 1965. Not bad.

How do millionaires start their savings plan?
Unless you inherit your father’s $413 million you must start your $1,000,000 fund somehow. Survey says save 10% of income is how you begin. 80% of the self-made millionaires studied didn't get wealthy until after age 50 — but that almost all of them started the same way. They used ‘buckets’ to make their goals specific. Each bucket has a specific saving/investing vehicle. Short-term expenses are funded from savings and CDs while retirement expenses are funded with low-cost securities. The rich increased their savings as their income increased meaning that they learned to live within their means—80% of income for current expenses and 20% for the future. Millionaires understand the Miracle of Compounding. Stocks earn 11% a year: $1 million in 34-36 years; $2 million in 40. If Don had just used a stock index he would have $11 Billion by now, not $3 Bn.

Not all S&P 500 index funds give great returns
Unfortunately, not all S&P 500 index funds act the same. Some don’t follow the benchmark so they don’t produce 11% over time. DALBAR tracks the index and equity account returns over time. So we know some employers use an index fund in their 401k plan that actually doesn’t follow the benchmark they are supposed to track. Insurers in particular are providing expensive or poorly designed index funds to smaller employers. Employees are suing Community Health Systems since it uses Principal Large Cap S&P 500 index fund. This fund allegedly lagged its benchmark by an average 9.1 basis points between 2010 and 2018, while similar funds offered by BlackRock, Vanguard Group, State Street and Northern Trust lagged by roughly 1 to 2 basis points on average. This underperformance, plaintiffs claimed, led to poor performance that lost participants some of their retirement savings. Over long periods of poor tracking and or high fees, employers actually cut employee retirement packages by 63%. For some employees, it would be better to use a self-directed Roth IRA account instead of the company’s plan. A Roth IRA is tax-FREE after age 59.5. It can earn 11% over time.

Why do the most expensive cars have the most problems?
Land Rover, Mercedes-Benz, Volvo, Jaguar, Acura. These are some of the most expensive cars you can buy. So why did JD Power survey of owners find they have more than average problems? The annual J.D. Power study gauges dependability of 3-year-old vehicles over the last 12 months, meaning this year's survey assessed the 2016 model year. Let’s look at management/owners for the answer. Lexus and Toyota seem to be consistently near the top of the list of fewest problems. Who owns the bottom feeders? Fiat, the most problems, owns Alfa Romeo, Chrysler, Dodge, Ferrari, Jeep, Lancia, Maserati, and Ram. Tata owns Jaguar and Land Rover. Zhejiang Geely owns Volvo. Ford owns Lincoln. Honda has Acura which is usually high on the list. BMW owns Mini and Rolls Royce. Renault owns Nissan and Infiniti. VW owns Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT and Skoda. Management determines how well it’s built.

First time in US: $50K a year earners now pay higher tax rate than Billionaires
US is no longer a progressive tax country. Trump has given his class what they wanted. The TV celeb has reversed most progressive trends. As Warren Buffett illustrated, his assistants pay a higher rate than he does: they pay 32.9%; he pays 17.7% with no special tax shelter or overseas account like Apple, Google, Amazon, Boeing, GE, etc. 2/3rds of all businesses pay $0 tax. Plus we taxpayers must subsidize many profitable businesses like oil, gas, agribusiness, air carriers, etc, etc. Many aren’t even American.


This period is a test of democracy—do we really want it or not?

Can China and Scotland and Russia investigate Trump cos. too?

We pay for meds: 11 suspicious deaths at the Louis A. Johnson VA Medical Center
Will FBI investigate Don’s mob foreign activity: conspiracy, bribery, extortion?
Trump promised cheaper drugs AGAIN but cut $845 billion from Medicare budget.

Trump recalls troops despite GOP: what about 150 other countries with troops?

Bank fees rise as interest rates fall: bank management takes bigger bonus

Guns for protection! Two men opened fire at a bar in Kansas City: 4 died; 5 injured
When everyone has a gun: family is likely to become a victim
James Booth Ins Trends, defrauded 40 clients of $5 million promised “safe high returns”

School retirement plans accused of overcharging teachers for 403b options: poor service

GOP party AFTER Trump leaves: no stand—allowed Kurds to be kicked out.

MN police using uniforms to show Trump support: Citizens see bias not ‘to serve’
WV group prepares for ‘civil war’ Trump predicted “veneer of civilization is very thin”

Trump calls Congress’s bluff: ‘I won’t play’—what you gona do about it?
Official Impeachment Defense Task Force” gives Trump $ millions on Facebook

Meredith cuts 1,200 jobs at Sports Illustrated, TIME, Fortune, Money

Health care jobs are changing: ‘touch’ industry grows with aging

Who owns your account now?
Your driver's license needs a star at the top in order to fly: new to catch terrorists.
CO offers new state health insurance option to lower costs for individual cover.

Bear cubs escape locked van but caught using horn to get out
Mom gives up her terrorist son: plan to kill thwarted—saves lives but cost her a son

41 Watchung Plaza, B242
MontclairNJ   07042

Friday, October 4, 2019

Social media frauds

How we become victims of scams
The most successful types of fraud were via social media: 91% of study participants were engaged and 53% lost money. Similarly, 81% of consumers who were exposed to a fraud via a website said they engaged and 50% lost money. Phone and email scams had fewer successes. We are more likely to be victimized if we do not have anyone to discuss the offer with. Victims are more likely to be widowed or divorced. Generally, those who engaged, and those who lost money, reported significantly higher feelings of loneliness. Social isolation appears to play a significant role in fraud victimization. Those under financial strain, younger or have low levels of financial literacy are likely victims. 51% of people who reported a third-party intervention were able to avoid losing money. Cashiers, bank tellers, employees of wire transfer services and other financial services companies where consumers were about to send money to a scammer, served as an important, effective last line of defense. Nearly half of those surveyed said the news media was their primary source of information about scams. Prior knowledge of fraud helps decrease the chances of victimization, the survey found. One-third of consumers who were targeted by a scammer, but did not engage, said they already knew about the specific type of scam. In addition, consumers who understood the tactics and behaviors of scammers did not engage with the fraudsters. Approximately one in ten U.S. adults are victims of fraud each year and self-reported fraud loss complaints increased by about 34% from 2017 to 2018. In fact, the FTC received more than 372,000 fraud complaints with more than $1.5 billion in direct losses in 2018, and another 1.1 million fraud complaints with no reported losses, the agency reported earlier this year.

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.

The new rules for selling annuities
New York is in the midst of implementing a "best interest" standard for agents licensed to sell annuities and life insurance products—the first state in the country to do so. There are no federal standards for annuities and life insurance sales, raising the bar for annuities sales falls to the states. The new regulation states that “only the interests of the consumer shall be considered in making the recommendation.” Annuities and life insurance were targeted in the state because the typical customers interested in those products are often “vulnerable buyers.” Annuities offer huge commissions compared with other products. Many insurers have withdrawn from NY since Trump cancelled the more consumer-friendly standard of The Fiduciary Rule. Most states do not require the complete disclosure of conflicts of interest and compensation to customers so many older buyers may continue to be mislead. For instance, some sellers offer only complicated deferred annuities with the highest commission. They do not disclose their relationship to the insurer. Contracts are written only for lawyers so sellers explain only the positive.

This is how the wealthy avoid taxes we must pay
This advisor is explaining to rich celebs and athletes how to avoid taxes and lawsuits just like he does for wealthy families. Setting up a defined benefit plan: Entertainers with loan out corporations, for example, can put away assets while taking significant tax deductions, such as $1 million or more annually by using particular defined benefit plans. Because of the business endeavors of many successful celebrities, they can use defined benefit plans to lower their income taxes while growing money tax-free. Superior risk management plus significant tax savings: Various wealth planning structures and products with major income tax deductions and the ability to address various business risks can be used with celebrities’ business interests. Some of these wealth management solutions can also be used directly by entertainers, such as when they go on tour. Eliminating taxes on investment portfolios: For celebrities with meaningful investment portfolios, it is possible to use a structure that eliminates income and capital gains taxes. This wealth management solution can be used with traditional investments such as equities and fixed incomes or with alternative investments such as hedge funds and private equity funds. Wealth planning cross-border arbitrage strategies: With many successful celebrities generating money throughout the world, it is often possible to leverage different tax jurisdictions to minimize taxes. This is not at all about secrecy. It is simply about understanding the various tax treaties between jurisdictions and benefiting from them. Asset protection planning: Relatively few hyper-successful celebrities have structured their wealth in ways that insulate it well. Very successful athletes and entertainers can protect their wealth from unfounded or frivolous lawsuits with strategies that can address their control needs and wants.

Is a private placement right for you?
This is an investment that most of us can’t buy. There is no gov check up, due diligence by analysts, or registration with the SEC. Usually you must be an ‘accredited investor’ under Reg D. However, some advisors have been banned/fined for offering PP to clients. Recently a Boca firm was censored/fined $225,000 for offering a suspect PP to clients. The firm offering PP is raising capital without the expense and delay of an IPO or public offering on the exchanges. Usually there are few buyers. Because of the additional risk of not obtaining a credit rating, a private placement buyer may not buy a bond unless the bond is secured by specific collateral. A private placement stock investor may demand a higher percentage of ownership in the business or a fixed dividend payment per share of stock. An example is Lightspeed, a cloud-based point-of-sale software solution for independent retailers and restaurateurs. Investors become part owners. You can earn 11% over time without the risks of a PP.

How do you know how much savings to use in retirement?
Fear of the future financial needs keeps us from retirement spending. A 2009 study estimated that by the time middle-income retirees are in their 80s, they still had not touched about three-fourths of their savings, and 2016 research found that retirees with substantial assets are the most reluctant spenders. Vanguard recently reported that retirees with very modest savings turn around and reinvest a third of the money they’re required to withdraw under IRS rules after age 70½. Best we can do is make a plan to spend and save a certain percentage to keep our future income growing.

Does your advisor have a ‘conflict of interest’?
By definition, every advisor, broker, agent and seller has a conflict of interest. In financial services, every product and recommendation is dependent upon what the firm has approved for sale. The firm, not the saleperson, knows the terms of the contracts for securities, funds and annuities. For a given sale, sellers receive higher pay for some transactions. You cannot tell which seller or product has higher pay unless you ask. Some sales bring more to the firm as with kickbacks or soft money and you are not likely to get the answer from your individual advisor/broker/agent. Some sales have higher fees and commissions and/or higher ‘haircuts’ than others. Some sales have higher trailing fees (12b-1, etc) than others. Some securities sales cost you more than others: called Class A, B, C, etc. Frequently, sellers mislead us into buying the more expensive class. Many of us just don’t know about these tricks so we can’t ask sellers about them. Even if you do your research into certain products, you can be mislead by the seller who is selling a product not approved for sale. Salespeople must be authorized per product per state. The CFP credentialed seller is the most likely person to do only ‘what is best for you.’

Does $0 cost trading help you become wealthy?
Schwab led the way to ZERO cost trading for many firms: Free trades. But does FREE trading help you become wealthy? According to many studies, the answer is NO. There are Wall Street myths about traders getting rich but you would need to have insider information and be trading large dollar amounts to become rich. Day-trading schools abound but only the owners are getting rich. About 95% of the people who attempt day trading end up with a net loss. A primary reason traders lose money is the absence of a solid trading strategy. It is lack of discipline not commissions that dooms most traders. In fact most managed equity account owners are net losers over time due to buying high (stock proved winner) and selling low (sell before you lose it all). DALBAR tracks managed accounts over time: returns 3.79% but inflation 2.7%. Warren Buffett, successful investor, says: “if you invested in a very low cost index fund, you'll do better than 90% of people who start investing at the same time.”


This period is a test of democracy—do we really want it or not?

Trump mob spending $3 million a week to fight impeachment: Can dictatorship be purchased?

Trump: Dems process is “not an impeachment, it is a COUP

Fired employee Bolton says of N. Korea nuclear deal: “no basis to trust any promise
Profiteers earned $ millions from arrest/removal of immigrants: dictators do this too.

Trump upstaged by Giuliani, his enforcer: “I will be the hero!” 
Rude Giuliani, mob enforcer, cancels paid trip to Putin rally
Trump’s "Do Nothing Democrat Savages" will make the case to impeach him.

Trump now asking China to give him dirt on Biden: mob boss calling in all favors
Trump’s dirt-digging on Biden: how big a hole has he dug with enforcers?
Mr President, why would Sec State Pompeo give House Chair Schiff his jockstrap????

Trump uses fake Census to raise cash: MT state warns: “imitation Census survey.” 
TrumpCare health insurance $59/month is a con just like the owner: benefits limited

Newbridge caught selling private placements w/o due diligence; no supervision.

Chicago’s Bank Montreal caught charging higher fees for own funds; failed to tell.
79 brokerage firms caught overcharging clients; failed to tell lower cost version.
Your ETFs may spark more taxes not expected even if you didn’t sell.
Katharine Snyder, Performance Arbitrage caught deceiving disabled veterans high credit
James Booth, CT, caught running Ponzi $5 million promised safe high returns
Long-term care insurance: rising premiums It’s a bait and switch,” Bach said. “But it’s a legal one. That’s the problem.”

DEA allowed drug makers to increase production of opioids even as overdose deaths rose
More Trump tariffs: now on European goods: we pay the tariffs, not EU.

Trump planned to shoot immigrants crossing border: bullets cheaper than The Wall!
No count on ‘bump stock’ ban: few turned in or destroyed—sales soared on Trump tweet

Your job as banker to friends/family is likely to end good relations
How to get into college: you DO NOT have $100,000 to buy admission.
Seniors keep traditional jobs: leather, funerals, repairs, religion, gifts, farms,

Who owns your account now?
Yahoo account breach settlement: claim your cash
ObamaCare TN policies have refunds: TN requires premium not spent must be returned
Estate planning account: 100 questions for your advisor/planner; for whole family too.

Easier to take out 401k money but many will need the compounded earnings later!
Privilege Underwriters: Pure Group to Tokio Marine


41 Watchung Plaza, B242
MontclairNJ   07042