Friday, February 28, 2020

Sell your stock or home without gains tax!

You can sell your long-held stock or home without gains tax!
If you have stocks that have gained a lot and now you fear selling because of the capital gains tax, one solution is to wait till your income is under $80,000 (MFJ). At that stage, the tax is 0%. To avoid future tax on this money, put up to $6,000 a year into a Roth IRA for each of you ($7,000 over age 50). If you have owned your home for a long time and now wish to sell, you can avoid the tax on $500,000 capital gains for joint owners. In most cases you don’t even have to report the sale and gain unless your real estate person files an unnecessary form. If your gain is over $½ million you can’t avoid the gain by doing a 1035 asset exchange. However, you can use the exclusion more than once.

Is a charitable remainder trust a viable alternative to the Stretch IRA?
First name a charitable remainder trust as the beneficiary of your IRA to avoid the taxes due on your tax-deferred account. Second, name the trust beneficiaries, such as children or grandchildren, so they will collect the fixed payouts for life or for a set number of years. Third, name the charity to get what’s left (a minimum of 10% of the initial value of trust must be donated). Do the heirs have taxes to pay each fixed payout? Yes, just like inheriting an IRA except the tax can be paid out over a longer period of time. Make sure your trust is legal in your state.

Insurers win again
Lobbyists for the insurance companies are most responsible for the end of the estate plan of leaving your kids your retirement fund, IRA and Roth IRA. Employers will ‘encourage’ their employees to buy an insurance product (annuity) to pay income to heirs over time. Insurers will be given $ trillions by retirees on the promise of ‘guaranteed funds for life.’ This ‘guarantee’ is what most people say they want. Trouble comes when inflation cuts the value of each monthly payment by HALF. Annuity benefits are set at purchase even when interest rates are low. Insurers will have our money whether we live for 30 years or 5 years. Some insurers will ‘pass away’ before their annuitants do: some heirs will get little. Employers receive a benefit too. They will not be liable if something goes wrong with the plan. We will be fighting an insurance conglomerate not our employer for the rest of our payout. We give up our principal even if we die in a year after purchase. Most annuities have no refund option.

Vanguard or Fidelity?
Study: Vanguard was able to run their funds in a more tax-efficient manner. The research clearly found that Fidelity was the winner on expense ratios. This was true across the board. The result is perhaps surprising given Vanguard’s record of historical cost leadership within the industry. Still it’s clear in the data that Fidelity holds the lead on fees. The researchers found that Vanguard funds were, on average, slightly more diversified. Generally, either Fidelity or Vanguard funds appear reasonable picks for most investors, with the investment strategy being perhaps the more important question. But the Johnson family still makes money from its clients.

Taxes: from you’all to the tax-credit class
Look at the effect of the tax breaks of 2017 and 2019: US increased the deficit to $1 TRILLION for the 1st time. Billionaires and corporation pay less than we do: 17%-21% vs 32.9% for us. The social safety net for us is being cut: SS disability, food stamps, SS benefit reduction, loss of national free space, loss of clean air and water, loss of independent justice, loss of voting opportunities, loss of credibility in world. Subsidies to corporations going up with OpZone Zero tax plan, coal/gas/mining subsidies, bank subsidies, corn/farm/tariff subsidies, Boeing subsidies, ExIm bank subsidies, hedge fund subsidies. ZERO tax US corporations include Netflix, Amazon, Chevron, Delta Airlines, Eli Lilly, General Motors, Gannett, Goodyear, Halliburton, IBM, Jetblue Airways, Principal Financial,, US Steel, and Whirlpool. There were 60 in 2018, Trump is the US authoritarian ‘socialist’ like Putin. All the tax benefits go to the top elite class just like in Russia. Like the USSR oligarchs, US oligarchs move their money offshore to avoid taxes. We already have socialism: those who have more pay least for American society. Working people pay 32.9% while rich pay 17% or less.

Why stocks are the best long-term investment even with market corrections
Warren Buffett has to be one of the all time successful investors. His company (Berkshire Hathaway) owns many other companies and the returns from owning its stocks are 20% double that of the market overall at 10%. Mr Buffett explains how he is successful in his letter to shareholders. It is worth reading because it is written in high-school level English not broker-speak. Most of his shareholders are not finance people. He explains how wealth is created by using compounded earnings. He explains why he is a ‘buy and hold’ investor. DALBAR, the firm that keeps score, shows that active trading investors earn just 3.79% whereas buy and hold index investors earn 10-11%. This is why the largest money managers have attracted more index investors from the brokerage business. Study after study shows that over time index investors who don’t trade earn more even in downturns. Sure, there are hedge funds that have done well during certain times but we don’t know which ones and when it will happen. Buffett put his $1 million bet behind his advice and beat 5 popular hedge funds from 2008 to 2017.

File your taxes for free
TurboTax and other for-profit tax prep firms are due to raise prices soon. If you have your documents, use your favorite software now and pay your tax due on April 15. The payment, if any, can be in April; the filing should not. The federal and state can cost you nothing at Another site has no cost or restrictions: And remember you can usually reduce income and thus tax by making a deductible contribution to your IRA. 


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

How a bully out bullies a Mobster: Manipulation that puts Putin to shame.
Trump to cut disabled person’s $1,258 a month to pay for tax cuts to wealthy

Trump says HE knows corona virus is “going to go away” by itself. CDC say spreading
Pence is now in charge of corona: he prayed during the HIV crisis in as Gov IN: asskisser
Trump explains why corona virus is another win for him: how he did it all.

Orlando police zip-tie 6 year old: tantrum passes in school: Teaching anti-police early.
$100 million to listen in on our phones: 2 terrorist leads found—no terrorists.

Where your Walgreen dollar goes: absentee owners avoid taxes like our prez: overseas.
Bloomberg: I “bought” all the new House members: $100 million to fund campaigns.

ICE National Police (Gestapo) watching all MD drivers w/o warrant: your state next?
Nazis go after churches, journalists: waffen founder Brandon Russell was arrested

Voters are desperate for a change from Mobster rule: what is democratic socialism?
IA still does not know who won in first primary caucus: premonition of convention?

What happens when you have TrumpCare: Hospital corona test $3,270 out of pocket.
Pedestrian deaths up because SUVs, drug/alcohol use, weather, cell phones. 

Avoid a loss the Buffett way: don’t sell your shares—‘buy and hold’ not speculate!
Dionne Van Zyl GA caught defrauding members of his Atlanta church: he is elder.
Face mask sellers push fears not stats on effectiveness: manufacturers’ material shortage

Bank scam: imposter bank message to confirm a purchase and we move money to them.
ETF managers still get paid when ‘official’ commissions are ZERO.

Catholic charity founder engaged in “manipulative sexual relationships” with 6 women
Victims list expands: University sat on complaints from many athletes.

Focus on the right stuff: magic is not enough these days
Trump’s staffer Mulvaney admits ‘we need more immigrants’ yet Trump wants less!
51% of employers still judge Job Applicants based on appearance: look the part!

Who owns your account now?

Earth bacteria turns space station water: bring your own water and face mask.
Corona found in CA patient with unknown origin: not travel not family unknown
Baseball finally promotes black chief umpire: it has only taken 181 years!

41 Watchung Plaza, B242
MontclairNJ   07042

Friday, February 21, 2020

Where is your serious money?

Where is your serious money?
There are 3 kinds of money. What you use to pay your bills is one. Another is the money you add to your 401k, 403b, pension, IRA, Roth IRA etc for future use. Finally, there is the money you can afford to lose—Fun Money—$50 on bets/lottery every month, $1000 on that “category killer” your broker/friend tips you to. There is a thrill to losing $1000 that you never tell your family about. Very few talk about the THRILL of having saved $1,000,000 in their retirement account. We are all afraid of the consequences of people making assumptions about us from knowing that about us. We could be targets of a scam like the lady who lost $300,000 to a fake romantic liaison. We could become the mark for every legit charity in the world. We could find we have all these relatives we never met. We could lose almost all of it to one of the most ‘respected’ money managers on Wall Street. Actually, financial fees can take 63% of your potential nest egg legally.

Why ‘snoring’ is the best way to create wealth?
Warren Buffett’s favorite statement is about his strategy to grow wealth. He was commenting on his style of investing in his annual report to the shareholders of Bershire Hathaway. He says active investors earn less than passive investors. The investor return tracking-firm DALBAR found active investors earn 3.79% vs 11% for those who just buy and hold. ‘Snoring’ through market gyrations is hard to do but Buffett proves patience pays. “Low-cost funds beat high-cost funds in every single time period and data point tested” says rating firm Morningstar. Warren Buffett, world's greatest investor, says, “Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees.... Paradoxically, when ‘dumb’ money acknowledges its limitations, it ceases to be dumb.” Fight your market anxiety and let your money ride as Buffett does.

Which car insurer provides best crash claim settlement?
According to body shops that deal with insurers, Chubb and Erie Insurance both received A- marks. Insurers were ranked highest for getting the job done right and fast. Travelers, USAA Group, Nationwide and State Farm received C+grades. Farmers, Progressive Group, American Family, Geico, Liberty Mutual and Allstate received a C-.
On the bottom of the scale, Loya, The General and Direct General received D grades. No carriers got an F. Body shop owners gave higher marks to the insurer they had direct repair agreements with. Avoid vehicles with low crash safety ratings.

Is HSA good substitute for stretch IRA estate plan?
Not quite. It is useful to pay for an heir’s MEDICAL expenses but cannot replace living expenses as the STRETCH did. Anyone can make contributions into an eligible account holder’s HSA on their behalf. The individual making the contribution doesn’t have to be HSA-eligible himself; all that matters is that the account holder is. That means a parent could fund their child’s HSA annually, giving the child a tax-free resource that could be used to pay for current medical expenses or invested for the future. And, the parent’s HSA contributions are tax-deductible for their child, even if they don’t itemize their deductions. By contributing to their child’s HSA over time and letting compound interest and investment returns do their work, parents can provide a safety net for their child against any unexpected medical expenses. And since HSAs don’t have required minimum distributions, those funds can keep growing until they’re needed.

File your taxes for free
TurboTax and other for-profit tax prep firms are due to raise prices soon. If you have your documents, use your favorite software now and pay your tax due on April 15. The payment, if any, can be in April; the filing should not. The federal and state can cost you nothing at Another site has no cost or restrictions: And remember you can always reduce income and thus tax by making a deductible contribution to your IRA.  


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

Mobster pardons another felon: “he has done so much in NFL football."
Another felon is released by our new ‘judge/jury’: “ridiculous sentence in my opinion”
More felons pardoned: lying and tax cheating OK now

Trump approves use of antipersonnel mines that 150 countries banned 30 years ago.
Trump makes immigrant asylum impossible: Guatemala becomes entry point.

Trump to allow mercury poisoning: “not need to limit harmful pollutants” in air.

“I am chief law enforcement officer of the country.” Nothing can stop him now!
We don’t need judges/juries anymore: Mob Boss will decide for US

Recall 300,000 Mercedes-Benz cars because of fire hazards of E-Class and CLS diesels 
Only 6% of US provide most of tweet fire-storms: modern gossips have too much time on hands

Medical industry ripping US off and Congress enables them: medical lobby  dominates Washington.
Census by internet: Same firm the destroyed IA creds may need to redo census?

Mark Pyatt ND caught fraud promised futures contracts trading fake docs; bought RV, jewelry
EquiAlt, Davison, Rybicki FL stole $170 million promised real estate; bought luxury for self.
Richard Cody FL caught concealing client losses he caused; faked statements
Brian Cige NJ attorney lied about fees: promised no charge unless he wins; then $271,000 bill.
Kern-Fuller, Sutter Upstate Law caught enabling high-interest credit to disabled veterans: unfair.

BEWARE: “copay accumulator” policy which raises deductibles and out-of-pocket max.

Romance scams most devastating and US can do nothing:

VA Senate supports sale of assault-style weapons and hi-cap mags: cause 4 Dems NRA cash.
Will you get to vote this year? GOP suppression hits a rut in FL
WOW: 50% of US report we have been targeted by money scams perpetuated by impostors

Ft Lauderdale closed for Spring Break: “You’re sh***ing me?” Even fish don’t go anymore.

IRS may visit you at home for taxes if you are wealthy enough.
Trump wants to decide the Oscar winners from now on: doesn’t like what not understand.

America split in half: Places with $2.5 million ‘starter’ homes heighten our inequality.

Who owns your account now?
Bloomberg winning FL Dems: even a sexist, who can beat Trump, leads pack
E*Trade Financial to Morgan Stanley: Every investor is now private bank client—fees!

Trump makes deal with Taliban: Afghan troops may come home after 18 years!
Trump lands in Daytona in 2004 plane: Time traveler in chief or more lies.
Parents save child from CA mountain lion with fierce punch and shouts
Sure, play violin while we take out your brain tumor: great idea IF it works

41 Watchung Plaza, B242
MontclairNJ   07042

Friday, February 14, 2020

Does your child know enough to invest for their future?

Does your child know enough to invest for their future?
High school students in 21 states must now take a personal finance course in order to graduate. Five states — Iowa, Kentucky, Mississippi, Ohio and South Carolina — added the prerequisite. One state, Florida, dropped its requirement. One in five American 15-year-olds doesn’t understand basic financial concepts like budgeting, borrowing costs, saving and compounding. Without some educational help, poor students had far less access to financial education, compared to wealthier students. “If you teach the kids,” one educator said, “you teach the parents.” Remember, SS benefits will be cut by 20% in 15 years. Kids must start SS benefit supplement TODAY.

How to double your savings over time
The most important fact about saving money is compounding. Only the rich have learned this concept because they see how it works in their lives. Most of us don’t see it in our lives because we don’t think in terms of the outcome over time. Most of us experience the opposite of compound interest: debt. We don’t realize that we will have to pay about FOUR times the amount of a credit card debt IF we pay only the minimum required. If we pay the minimum on the average debt of $8,398, it will take us 20 years to pay it off. We will have spent about $30,000: $23,000 in interest. But if we invested that same minimum payment in a simple index fund and earned compounded interest over time, we would have $115,000. We could easily buy more stuff for that same $8,398. Long-term investing: put $250 per month ($3,000 a year) in a low-cost stock market index fund. It would grow to about $65,000 in 11 years: $33,000 + interest $32,000. Our savings can double in about 12 years IF we invest it--compounding the earnings every year. This is how the rich stay rich. Show your child how to double their savings.

Why did your advisor provide you with less than 31.5%?
Yes. You know why. In fact your fees resulted in 5 managers taking over $1 BILLION of your dollars last year. These unconscionable fees are especially notable, especially given only a third of the 15 managers on the top manager list beat the S&P 500 Index. And the same one does NOT do it every year. It also comes as the hedge fund industry has been grappling with closures and mediocre returns. Very few managers can beat the index over time. Buffett put his $1,000,000 bet on the Vanguard 500 Index when a manager with 5 different funds challenged him 10 years ago. Buffett advises the hedge fund crowd to avoid the 20% fees and use index funds like the gigantic pension funds. The manager and their firm need your fees to exist. Vanguard is owned by those that invest in Vanguard funds. There is no outside owner needing profits. Since no manager can beat the index consistently, you could be earning 11% a year instead of the average equity managed account earning you 3.79% over time. Can they tell which stocks will soar nest?

Why most investors don’t need an annuity
Many investors are DIY investors—they have jettisoned their advisors since learning the John Bogle and Warren Buffett investment lessons: advisor costs detract from your earnings. Advisors and annuities can take up to HALF your earnings in fees and trading costs. Here are DIY's results for 2019. They are total return investors—selling shares equally across all 10 funds for their monthly RMD income in retirement. Some want protection from a down market and so they overweight Wellesley Income instead of buying an annuity: Wellesley’s 9.7% a year is not too bad to live on.

2019 Total Return Fund                    Long-term Return      Longevity
31.5% 500 Index                                             11.2% since 1976
13.2% Energy                                                    9.9% since 1984
28.0% Extended Market                                  10.7% since 1987
22.9% Health                                                   16.2% since 1984
31.4% International Growth                              10.6% since 1981
27.9% PRIMECAP                                         13.4% since 1984
27.4% Small Cap Index                                    10.6% since 1960
16.4% Wellesley Income                                    9.7% since 1970
30.4% Windsor                                                11.3% since 1958
29.0% Windsor II                                            10.7% since 1985
25.8% Average                                                11.4% *
            *Average Annual Returns as of 12/31/19.

Are cheap life insurance ‘upgrades’ right for you?
Your agent/broker/salesperson has 12 ways to ‘upgrade’ your policy once they have you talking. But are they just premium add-ons that cost you big dollars over time? Most premium increases are not needed: add-ons are cheap because they don’t add much value. For instance, paying more for a child rider so they can buy a policy later or cover death expenses is unnecessary. No parent wants death insurance and very few young adults are denied coverage. Do you really want to give your spouse a windfall because you die by accident? The chance of that is almost nil. You are better off buying a higher death benefit in a 10-year term policy than any rider. You may not even need life cover later.

Is life insurance a good alternative to the Stretch IRA estate plan?
Advisors are coming up with ways to get your IRA to your heirs after you’re gone. Life insurance has always been a favorite since it pays much more commissions than the previous Stretch IRA plan. But does a lump sum death benefit to your kids or grandkids really address your concerns about taxation and spendthrift beneficiaries? What are viable alternatives to the Stretch which allow a bene to take the RMDs over their lifetimes instead of at once or over 10 years? Each situation is different so you may need a more elaborate plan with an estate attorney than you had before. Perhaps time will provide additional choices. Lifetime gifting may be our best choice.

File for the quickest refund FREE
If you meet certain criteria and have your documents already, federal and state can cost you nothing at Another site has no income/forms restrictions: The software helps you avoid common mistakes before you file. Even if you make a tiny mistake, the IRS usually catches it without penalty. I have used most of these programs for years even though my income is above the limits. Most charge nothing for the federal and state. Some charge only $12.95 for the state. For 2019, six states have kept the health mandate tax if you don’t have health care cover so that state return may get complicated. Once you file your first year, your previous years’ data is there and pre-fills your forms: Saves a lot of time and money. Try it before you spend $200-300 at a for-profit preparer. No refund due? File to keep your ID from scammers. Your W-2 should be sent to you by Jan 31 according to IRS. Your refund can be in your direct deposit account in 10 days. Check mobile: IRS2Go within 24 hours after IRS receives your e-filed return for status.


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

“…all of his tormentors are being whacked.” He can’t be indicted for crimes now.

Trump—Judge and Jury: I “cannot allow this miscarriage of justice.”

Utah national monuments to be drilled by his friends for oil gas coal open grazing: sacred ground?
We pay $millions to buy phone data about our movements, activity, from spy firms.      

Trump missed his morning elixir so he rehired Hope Hicks as the ‘prince’s liaison.

Tesla recalls 15,000 Model X SUVs for power steering failures
E-cigarette Juul bought adverts on Nickelodeon, Cartoon Network: MA sues to stop.

Criterion Wealth Management Insurance Services caught taking hidden kickbacks
Elias Herbert Hafen CT caught stealing $1.6 million as promised invest in own account

Balance transfer trap: 0% rate 21 mo/ 5% fee; VIG 26.24% after. Mafia charges less!

Which cash fund will win American presidency? Election for sale to highest media spender.
Fox tells Trump’s voter: Stone is victim of Mueller probe which was Dem fantasy Putin control.
School bullies channeling Mobster attacks on Hispanic, black and Muslim people.

Too late to do any good: Credit monitoring service charges fees for notices 24 days later!
Myth: filing tax return in April avoids an audit: IRS too busy to pick yours is myth.

Biden to voter: “You’re a lying dog-faced pony soldier,” drawing laughter from crowd??
Is Uncle Joe done? I get no answer to my question about what his ‘joke’ above means.

Who owns your account now?
Which insurer is best at taking care of your car body when it gets hurt?

Fountain Financial Associates to Captrust Financial Advisors

January was hottest in 141 years of records. Takes miracle to convince deniers.
Antarctica’s Trinity Peninsula hit 65 F on Thursday: highest ever! Glaciers retreat!
Some Iraqis never saw snow: now they stare at the snow NYC used to get.
Pope is fallible: reverses course on Amazon married priests! It’s all politics.

41 Watchung Plaza, B242
MontclairNJ   07042