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 South
Carolina Florida
From the 12th
Century: Give a Man a Fish, and
You Feed Him for a Day. Teach a Man To Fish, and You Feed Him for a Lifetime.
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?
Professionals aren’t cost effective: https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373
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
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
30.4% Windsor
29.0% Windsor
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.
Buy only what you need: https://www.amazon.com/Drop-Your-Insurance-Only-What/dp/1448623391
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 https://apps.irs.gov/app/freeFile/.
Another site has no income/forms restrictions: https://www.creditkarma.com/tax. 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.
Plan now for a Tax FREE retirement: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300
**********ACCOUNTABILITY**************
Like 1776, this period
is a test
of democracy—do we really want ‘low-IQ’
Mobster?
“…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.”
Even Barr says: Trump
is obstructing justice with his tweets
Trump: F***You, Barr.
I have “the legal right” to intervene.
How Govt wastes our money: Congress spends another 1.7 Trillion we don’t have!
We
pay Trump $650 a night to ‘guard’ his clubs plus $
millions for kids who could
pay own SS.
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
going after the current and future SS disabled to pay for new space wars.
SCAMS/SPINS:
Lobbyists
were dining the Trump mob so much they could not do their jobs: sloppy law-
writing.
Trump
missed his morning elixir so he rehired Hope Hicks as the ‘prince’s
liaison.
Dr Trump: coronavirus
just ‘miraculously’ go away—sure, when
deficit’s vanish.
BEWARE: Info at ‘local-looking
websites’ offer fake news: ‘Trust
but verify’
Tesla
recalls 15,000 Model X SUVs for power steering failures
E-cigarette Juul bought
adverts on Nickelodeon, Cartoon Network: MA sues to stop.
United Healthcare: limit
seniors’ access to less expensive versions of Medicare drugs
Criterion Wealth
Management Insurance Services caught
taking hidden kickbacks
MO
state wants to protect bad product owners from suits after they kill/injure
people.
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.
Company
secretly collecting billions of pictures of children/women in name of
protecting them.
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.
Jobs
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.
Aflac
moved to Belfast: 150 jobs
Who owns your account now?
Best movies since
1976: Only
time can tell which ones are YOUR best.
Which
insurer is best at taking care of your car body when it gets hurt?
T-Mobile
edged closer to a takeover of Sprint: judge approved
Fountain
Financial Associates to Captrust Financial Advisors
Miracle:
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.
IAN
41 Watchung Plaza,
B242
973.746.2014
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