Friday, November 29, 2019

Where can you invest $100 for your child now?


Where can you invest $100 for your child now?
Teach your child to invest the Buffett way. Success with money starts early. Compounding over time assures your child of security. You have a great opportunity to teach your child how to become successful with money. They can learn to take care of themselves and even become wealthy from your guidance TODAY. You can show them how to take advantage of the greatest power in finance: compound interest and the time value of money. Warren Buffett, who turned his paper route savings into $60 billion, credited compounding over time for his wealth. "My wealth has come from a combination of living in America, some lucky genes, and compound interest."

What to do with your inherited IRA?
Tricky rules can create a BIG tax bill. Consult your tax preparer or planner, NOT your broker/advisor—they do accumulations not distributions. “The worst thing to do would be to cash out the plan, put it in your account.” IRS reversals are hard to get. A spouse has many choices so get help making the decision. If you inherit from parents or other non-spouse, you may be able to pay taxes over time as you make withdrawals. If you inherit an IRA that has already been tapped, other rules apply. If you inherit with other beneficiaries, be careful. If there is a trust, hang on till a lawyer give OK.

Why your broker is pushing financial planning or dumping you?
Morgan Stanley (and other brokers) has just told its sales force that they must push financial plan sales and find higher net worth clients to earn the same next year. Management wants more income after they had a banner year of 18% increase! Wirehouse brokers have enjoyed higher incomes because everyone’s account has grown 35% on its own in the last 3 years. MS raised the payout grid tiers to force advisors to find richer clients and get rid of customers with less than $250,000 in their accounts. In fact, we will earn less on our cash if we leave it at MS. If we want a hard copy—a check or statement—we will be charged up to $25. Even support staff will be rewarded for getting our recurring deposits. MS noted that brokers earn more just because the markets grew and this new grid recognizes that. Big producers will not be hurt by the changes of course. Advisors encouraged to influence credit & spending of customers’ lives now.

Which fund is best for your retirement nest egg?
We have learned that we can trim the risk of market upheavals by using a ‘balanced’ approach—stocks for growth and bonds for ballast. Since 1970 one fund has continuously provided retirees with total returns (income plus capital return) of over 9%. Since 9% is greater than inflation of 3% over time, our nest egg can maintain our purchasing power even though we may live long and prosper. Insurers sell their annuities to offer this same ‘longevity insurance’ but at a higher cost. If we don’t take the income each year, we can actually double our money in 10 years. So if we have other income (SS plus pensions plus forced IRA distributions), we can provide a legacy and or have a large medical contingency fund at the end of life. To some of us, this beats every annuity plan that brokers offer.

Is ‘alimony’ insurance right for you?
Consider that the median age of divorce is 32 years old. If you are the spouse receiving alimony and your spouse dies, how will you live? Will your income cover your family needs for the future? Life insurance is the answer if the paying spouse keeps up the payments. Your divorce decree may contain this provision but you will not know if the premiums are being paid unless you are the owner/beneficiary.

Reliable cars from Consumer Reports
Most reliable turns out to be a sports car: Mazda MX-5 Miata. Toyota Prius, Lexus, Hyundai and various models of these nameplates make the 10 top. Shocking that an American nameplate is not on the top 10 list. On the other hand, CR found 12 car models, including the Audi A6, Ford F-150, and Honda Passport, cut from the list because of problems identified in our annual reliability survey of CR members. 20 other models actually moved up on the list including Porsche Cayenne, Tesla Model 3.

How would you feel if your investments went up 30%?
That is what is facing many index fund investors this December. Growth index funds with costs of only 0.05% are up over 30% YTD. A one-third increase is difficult to accept given that most people fear investing in the stock market. However, no one can predict the movements of the markets so the only rational answer is to stay invested in all of them. The markets go thru phases: look at this chart: 2017, 2013, 2009, 2007, 2005, 2004, 2003 all had over 30% returns BUT in different sectors. Even the most knowledgeable money managers like Warren Buffett cannot predict which one will grow your account by 30% a year. Use the ten best funds since they average 11% a year.




**********ACCOUNTABILITY**************

Like 1776, this period is a test of democracy—do we really want ‘low-IQMobster?




Trump offers bribes to Congress members: VIP perks at our Camp David: we pay!



SCAMS/SPINS:
IL McDonald’s workers sue: failure to protect from violence/managers complicit

Easy Military Travel, Edmiston caught: misled military travel clients
Samuel DelPresto MLF caught fraud 'pump-and-dump' microcap scheme fine no jail



Trump mobster: Nunes worked with Ukraine to get dirt on Biden: Nunes conspirator?
Trump challenges American constitution: GOP thinks Pelosi quits: too much Cool aide
Which money, Dems or GOPs or Putin’s will decide 2020 election?


Navy defies Trump's clemency of SEAL Gallagher to save its ‘institutional integrity
Navy vet; worked 18 years as Customs Officer; fired because born in Mexico 51 yrs ago


Compare Ukraine and Watergate: Robert Redford reviews today yesterday today.


Who owns your account?

Jobs
75,000 stores close in future: no more entry level retail jobs: showrooms only survive
Truck Job layoffs: orders of heavy-duty trucks were down by 51% from last year
Schwab taking jobs to TX from San Fran: TD moving to TX from NE too
Small town has town employees run grocery to help town folk: socialism or just practical


Miracle:
10 yr old saved from own family pit bull attack by neighbor: quick action saved her arm
Priests finally receive justice for abuse of children but not from Pope/Bishops from govt!

IAN
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MontclairNJ   07042
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1 comment:

Cameron said...

Having a child is so expensive. When you decide to have your own family, please have a family plan. Here in Cary, North Carolina