Turn off your RMD auto-distribution: don’t sell shares now
Those of us with automatic RMD distributions may want to
suspend this service temporarily. We
have until December 31 each year (unless this is your 1st year)
to take the amount required from qualified accounts in order to pay tax on the
gains. Taking your RMD at the bottom of the market will cost you more precious
shares than previous years. Don’t LOCK-IN your losses! I put an
alarm in my cell to tell me to switch RMD distributions back on in July, Aug,
Sept, Oct, Nov or December just in case I forget. We must take our full
calculated RMD by December 31. Our past schedule is void. Hopefully the market
will regain some of its 25% losses by then. You can do this on Vanguard’s
account summary page with the link in right column:
“Required minimum distribution”
“Required minimum distribution”
Know your RMD rules: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716
It took 4 years for the stock market index to recover from
2008 lows
Depending on your portfolio profile, it will take
time to recover from this stock market correction. If you use the stock
market as your checking or savings account, you will suffer when you sell. If
however, you are a long-term investor, just turn your head from the daily
gyrations and BUY
like Buffett. Last year the stock market gained
31%. The
long-term average is still 11%. If you pay your advisor 2% you will have to
wait a longer time. If you think of your money in terms of short- and long-term
reserves, this correction has no impact on your ultimate goals. John Bogle,
founder of Vanguard, said that you can control what you pay for advice not
control the market. Giving away 2% of your long-term money will decrease your
final accumulation by up to 63%. “Over a 50-year investing lifetime, that
little 2 percent fee will erode 63 percent of what you would have had. As Bogle
puts it, “the tyranny of compounding costs” is overwhelming.”
Let the ‘Bs’ guide you: https://www.amazon.com/Buffett-Bogle-Holy-Bible-Investment-advice/dp/1523693045
Why market timing does NOT work
JPMorgan found that the
40 best days accounted for more than the entire S&P 500 return from
1993–2013. If you miss the best days trying to time the
best exit and enter days, you end up with returns just above the
inflation rate: 3.79%.
Buffett says: “The stock market is a device for transferring money from the
impatient to the patient.” We need patience while it is going up and going down.
“A very low-cost index is going to beat a majority of the amateur-managed money
or professionally-managed money.” Why? Because no professional has beaten
the market return over time. They say they have but they picked two of their
lucky days to market their hype. Research: from 1871–2016, the
5 most positive monthly returns in S&P 500 history came in the 1930s as the
U.S. came OUT of the Great Depression.
Time to BUY: smart
money moves to Vanguard.
JPMorgan counting on us buyandhold investors to save them
Speculators
who send stocks down by selling to avoid the lows in a panic like the
current one are counting on us long-term investors to bail them out according
to JPMorgan. Strategists at the bank reckon there’s a good chance that
buy-and-hold managers like pension funds, insurers, sovereign wealth funds and
the like are ready to stabilize markets with stock buying in order to
rebalance their portfolios away from bonds. Stocks have fallen so much that
many institutions will be forced to sell bonds to rebalance their holdings.
Some analysts say that rebalancing is not necessary since stocks and bonds eventually
rebound to their original ratios in the long term. Rebalancing is actually
selling winners before their time. It is a form of market timing. Tortoise not
hare wins.
How teacher 403b plan advisors get paid
Teachers
may be losing HALF their potential retirement funds to advisors and plan
sponsors. Some 403b plans are actually annuities with excessive fees—2.5% a
year plus recordkeeping fees, maintenance fees and contract fees. You might be
contributing a great amount of your salary every year—$4,400 a year—but plans
are taking $2,000. If you invested in stocks and your account grew to $500,000
by age 66, you would be paying over $12,000 a year for few services. Services
would be in the form of a telephone service center, not a live advisor. Even
though your school organization is charged by law to provide fiduciary duty
(best options for you), they contract it out to an insurer or other “third
party.” There are so many ‘mouths’ to feed that you are left with the crumbs.
401k plans at larger
organizations are now repaying their workers after many years of overcharging
for retirement fund services. Your teacher union may have already started action against your 403b plan administrator. Robbing
you blind.
Who got rich from the last bailout?
Your tax dollars are going to make many
rich people richer. During the last
bailout crisis, even the foreign banks and
profitable firms got money they did
not need. None of them said no. This time Boeing,
which killed a lot of people from bad management, wants $60 BILLIONS of our
money. The whole leisure
class industry wants $BILLIONS including The Boss’s hotels, golf resorts,
and global properties. Most of those crying for bailouts had large surpluses
from huge profits during the last 12-year bull market. They spent it on
themselves—buybacks,
CEO
bonuses, more jets,
etc. Remember, many
of these firms have paid no taxes for years. Like The
Boss, they have used
every trick in the book to avoid paying their fair share. An unbiased
analysis of this situation would be that America
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 file your tax now
for refund. The payment, if any, can be in July; the filing should not. Rumors
confirmed: filing delayed to July 15. Check your state for deadline. The
federal and state filing can cost you nothing at https://apps.irs.gov/app/freeFile/.
Another site has no cost or restrictions: https://www.creditkarma.com/tax. And
remember you can usually reduce income and thus tax by making a deductible
contribution to your IRA. File
now for refund: 90 day interest-free extension if you owe.
Filed already: refund status: https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
Save for a long life: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793
**********ACCOUNTABILITY**************
Like 1776, this period
is a test
of democracy—do we really want ‘low-IQ’
Mobster?
Mob Boss: “I
don’t take responsibility at all.” ‘I quit’
Mob Boss and his
lieutenants have
not been tested since it is a hoax
Mobster’s mob will test
everyone else but the Boss and VP
Mobster: “The markets
are going to be just fine, just fine.”
Mobster’s hotels/clubs get $650/night/SecretService
guards
Mobster
to hide bad news on jobs: re-election in view
How Govt wastes our money: Congress spends another 1.7 Trillion we don’t have!
Opioid
lawsuit lawyers to get over $3 BILLION: Prosecutors get vote $. Victims get
__?
Anti-robocall
law signed but no effect: still 4.7 Billion calls in Jan. Doubled
since 2017.
States
told to buy their own corona supplies but Trump out bids them for stockpiling
use later.
His
‘Hoax’ proves His Wall is not worth the money: businesses still hire
undocumented
Do
you have lobbyist to get you a bailout too? Airlines, casinos, ships, surplus
spent ‘18
McConnell’s
bailout to his ‘friends and family’: "industries of national
importance" Socialism
Congress
persons use insider info to sell their stocks before we knew corona
pandemic. Felony!
SCAMS/SPINS:
Trump: My
Wall will protect US from coronavirus: except sick who already fly here
Navy
hospital ship not available for emergency: being painted.
GOP asking sitting
judges to retire so The
Boss can install his kind of ‘justice.’
GOP
hinders changes in voting measures to block more Dems casting votes.
IRS
borrows to cover delay in tax payments and Boeing
etc bailouts. We pay interest bill!
Congress
gives virus mask makers protection from suits if masks are junk. We lose
GOP conspiracy Jones
pushing his products to treat corona: propaganda
of worst kind.
Politicians, foreign and
domestic, using
pandemic to move public fears!
US
leadership reached its bottom with corona: Just propaganda game to them.
You can be murdered
in your bed by police: ‘The Public’ reported guns in house!
Gun and ammo sales
surge in US with coronavirus fears. ‘Better
safe than sorry’?
New hack strategy: I
got an email from vendor with link to special
document: FAKE
William & Katherine
Alverson Healthient caught
fraud to shareholders shares $4 mil
Denis Sotnikov FL caught
selling $26 million fictitious high-rate CDs.
Stephen Peters
VisionQuest caught
$10 million ponzi loan notes fraud
Banks
claim to help victims IF you can find branch that’s open: Still
24% interest charge
Wall
Street Pros are panicking for qtr bonus: smart money moves to Vanguard to
buy.
Ventilators
too expensive for hospitals: we suffer
Avoid
Alzheimer’s: study shows curiosity and an aversion to conformity keeps
brain fit.
Health care sharing ministries
policies cost this person $40,000: Saved by ObamaCare.
Hand
sanitizer kills girlfriend in deadly fire.
911
calls to police for toilet paper: OR police complain of calls—use
salt-water sponge!
MSC Meraviglia Miami
passengers flew home: no
one tested before spreading to country
Keep track of all
the FAKE
virus info: eg: blacks NOT immune to virus; test NOT costly
Kushner
and brother CEO Oscar Health directing victims to Oscar’s own facilities.
Evangelicals’
Dead Sea Scrolls are fakes: $ millions spent--faith was not enough. Like Lost Ark
Jobs
An estimated 200,000 nursing positions to go unfilled at
hospitals across the country.
Amazon
needs 100,000: corona self-quarantine drives online orders and takeout.
Doctors
sleep in basements garages to protect their families. Hospitals full.
Who owns your account now?
REFI
time? Fed
rate 0% means lenders can earn all you pay on your money! WOW
Retailers
forced to give sick leave: do
you go to work sick for pay or lose job?
Miracle:
Out of blood? The
“Hoax” causing shortage: BYOB bring your own? We can’t make it.
CA man provides
toilet paper to those in need from those who share: Hoarders note!
All
NBA teams get tested but those
with symptoms do not get a test: class system?
Vaccine
discovery from stem cell research nixed by Pence: fear of election loss too
great!
IAN
41 Watchung Plaza,
B242
973.746.2014
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