Why smart investors do NOT sell high; buy low
Every time we have a severe correction like 2007-08 or 2020,
investors have to re-learn the lesson of the sages: Don’t time the markets. Over
the past 71 years, there have been 13 bear markets, lasting an average of 13
months, with declines averaging 25.8% before markets recovered. By contrast,
the 14 bull markets since 1949 have been longer and have had disproportionate
gains, lasting an average of 48 months and gaining an average of 129.0%. A
$10,000 investment in the S&P 500 Index in 2004 would have grown to $36,418
by December 31, 2019 ,
despite the 51% downturn of 2008–2009. Returns for other periods may have been
less favorable and that other market segments may not have recovered from this
downturn. As the Putnam chart shows, if
you had timed the market and missed 30 or 40 best days, you would have lost
money. Smart investors look at similar charts when they get the itch to
sell. No
one can predict the future!
25% of us are using our future money for today’s needs
Many Americans are raiding their retirement accounts to pay for basic
necessities, including groceries
and rent. Over the last two months, the average withdrawal from retirement
accounts was $6,757. Half of Americans who were recently furloughed or let go have
saved less than $500 for retirement in the past year — and 70% have
saved less than $1,000, according to SimplyWise. Of those who have an
individual retirement account, 401(k) plan or retirement savings account, 1 in
5 now plan to tap those funds. It is difficult to find other ways to buy
food and pay rent, especially since Congress
let us take the money without penalty. But if a job loss or severe economic
trouble goes on for month after month, we could be devastated. Like the Great
Depression, we may be standing on food pantry lines sooner that we think.
We may demand a big change: https://www.amazon.com/Americas-Socialism-Rich-little-people-pay/dp/1535218584
Recover your retirement fund
The stock market has risen to the level of last August. If
you did not sell, you may be able to meet your goals and timeline. No
one can predict the future based on the past because we have never been
through this kind of condition before. Plus, no advisor can predict the future
anyway. Since nobody knows when the market will recover and refill your
retirement fund, it is best to do nothing. Warren Buffett, expert unbiased
advisor, says "The stock market is a device for transferring money from
the impatient to the patient." We make mistakes when we are in a hurry. No
advisor can tell you which investment to buy now to help you recoup your lost
ground quickly. Quick gains are for gamblers who are willing to lose or who
can’t control their emotions. We can concentrate on what we can control—cutting
expenses, building emergency funds, looking for a new job—not on conditions we
can’t control.
Wait and reassess in 2021: https://www.amazon.com/Warren-Buffetts-Investment-Strategy-Forget/dp/1484822900
Women need a Wealth Reserve
Women
generate just 83% of the retirement income men do. That’s $47,244, 17%
less than the median household income for men ($57,144). To make it worse,
women live longer than men so they need more, not less. You and your family can
solve this mismatch by creating a special tax-FREE account I call your “Wealth
Reserve.” Before and after you retire, build funds in your tax-FREE account. Only
earned income can be
contributed to this account at first. However, if you don’t work but your
spouse does work, you can still invest in this account. You can contribute up to $6,000; if you're
age 50 or over, it is $7,000. You can withdraw your
funds tax-free. In retirement, you can let your money grow tax-FREE while you
take money from your pension and other accounts. You can add to this account
even after the wage earners retire. You and your family can make sure you have
enough even as you live longer. Plus there will be no income taxes due on your
long-term accumulations. This could save you 22% in taxes.
Build a Wealth Reserve: https://www.amazon.com/Your-Hidden-Wealth-Reserve-Reduce/dp/1540435148
Is a reverse mortgage right for you?
Reverse mortgages allow you to spend down your home’s equity
even while you continue to live in it, then pay the money back when you move
out, often from the proceeds of a home sale. Last year more than 30,000 Americans borrowed
against their homes in this way. During the last recession, some borrowers
fell victim to high fees and questionable marketing tactics. Reverse
mortgages are generally structured so the homeowner gets a monthly payment for
as long as they live in the house. The loan comes due after the homeowner dies
or moves out of the house. At this point, the loan will need to be repaid —
which might mean selling the home in order to come up with the funds. The one
you’re most likely to encounter is a federally-insured home equity conversion
mortgage, or HECM. Most reverse mortgages have variable interest rates which
may cause cash problems in the future. Go to a HUD-approved housing
counseling agency and look for agencies specifically approved to provide
reverse mortgage counseling. Although reverse mortgages may help you stay
in your home longer, they aren’t cheap.
Plus all the maintenance, taxes and fees continue. As always
with mortgages, it pays to shop around, getting quotes from at least three
lenders, to make sure you get the best possible deal.
Where do retirees keep their money?
There are many advisors who tell clients to use bond
interest for retirement income. After all, fixed bond coupons paying 6-8% were
‘safe’ and guaranteed a fixed income compared to stocks. Recently, low interest
returns have dominated the economy so this may not be good advice any longer.
With the advent of Target-Date
Retirement funds, some retirees have discovered balanced funds that manage
stocks and bonds over time automatically. Some retirees have relied on balanced
funds like Vanguard
Wellesley Income fund for many retirement years—providing 9% returns since
1970. Some retirees and pre-retirees are taking note of the current tax rates and
lack of forced sales for RMDs to move more IRA money to Roth IRA accounts.
Later if taxes go up to pay for this pandemic event, they
can use tax-FREE money to reduce their total tax expenses.
How Congress people make money with their ‘crystal ball’
Yes, there is a law against insider-trading, even for the wealthy and the connected.
But law
enforcement doesn’t go after Congress people who have intelligence reports we
don’t see. They get away with it. They
have their own system so they make sure few get punished. Plus, Congress
people are rich enough to have ‘third party’ people (trustee) to trade on their
behalf with the information. Take Rep. Phil Roe. He purchased stock in Zoom,
the teleconferencing company, and Moderna, a company developing a vaccine,
while dumping shares of Royal Caribbean Cruises and Disney. As markets crashed
around the globe in early March, the ‘representative’ sold nearly 100 stocks
over a two-day period. A spokesman said Roe does not personally manage his
investments. So it is just luck that Roe’s trustee makes trades on
the basis of knowing what is coming? Roe makes $ millions and so does
his trustee. We
are not fooled.
Use your legal tax shelter: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300
Another way the wealthy takes our tax money
Trump and the GOP have provided another perk for the
wealthy. Wealthy
financial advisors keep our tax money (‘loan’
for employee salaries): big
bonus. One firm, Lakeview Capital Partners, an Atlanta-based registered
investment advisor with about $3.3 billion in assets under management, was
the latest firm to disclose it received a Paycheck Protection Program loan from
US. Do financial advisory firms which are already wealthy and receive about $33
million in annual fees ($3.3 Billion at 1% fee rate) really deserve $581,000 of
our tax money? Lakeview is planning to keep the money under the ‘forgiveness’
regs. One critic: “these firms have to be in the position of dealing with bear
markets,” he said. ”they
know they don’t need the money. They know the loan was intended for small
businesses like restaurants where they need to keep employees employed. It
was not meant to be an indirect windfall for [advisors] RIAs.”
Robbing Us Blind: https://www.amazon.com/Robbing-US-Blind-fees
**********ACCOUNTABILITY**************
Like 1776, this period
is a test
of democracy—do we really want ‘low-IQ’
Mobster?
Mobster
decides who gets food and who doesn’t (hint: politics)
Mobster: I
decide which facts are real
Mobster: “Any difficulty and we
will assume control but, when the looting starts, the shooting starts."
Mobster: “This
Is So Unfair to Me”
Mobster: only
good Dem is dead Dem
The Mob: virus
is gone by Memorial Day (102,000 dead)
Congress: no
more “checks and balances”
How Govt wastes our money: Congress
gives 3.7 Trillion to the wealthy!
Trump
gives virus bailout money to your landlord: we pay twice—rent and taxes
We paid $ millions to develop remdesivir, but Gilead
Sciences owners get all the profits
Ivanka
will decide which small biz will receive our tax money: luxury
designers/jewelers
SCAMS/SPINS:
Biden:
“If you’ve got
a problem figuring out whether you’re for me or for Trump, then you ain’t black.”
?
Open
churches: “It’s
our sacred duty to meet the spiritual needs of the suffering.” Revenue too?
Private religious
schools receive bailout money: further
goal for all education money
Paul Horton Smith CA
caught
Ponzi: selling fake securities: "private annuity contracts"
Key
Credit Repair deceived pre-paying customers; did not repair credit, ignored,
lied, etc
Stifel, Nicolaus caught
selling costly early rollovers of unit investment trusts (UITs). Fine
We have had our data
stolen average 4 times: even
Microsoft just doesn’t pay for security
Supplements,
“Ingredients for Brain Health” just another
snake-oil con. Caffeine works.
Hackers
blackmail you for the sites you have visited: Fake—they don’t have your
data.
Trump fears: “people
would print fake ballots and send them in.” from his Nov playbook
Trump
threatens to close down social media platforms: doesn’t like fact checking!
BoA
customers who applied for PPP loans have data seen: bank claims not seen in
public
Some
delusional biz men outlaw masks in their bar/stores: virus deniers: 101,000
dead?
Jobs
MN
Police KKK kill black man then cover it up: vid shows truth again!
Big companies to hire
half-a-million employees in months: more risk; more money?
Who owns your account now?
Responsible health clubs refund fees during C-19 closing. Get
your refund.
Insect
repellants that work according to CR: 15-30% deet.
Antibody test: HALF
are wrong so we keep infecting others
Miracle:
First
human trial of a possible vaccine: safe and may effectively fight the
virus.
Aerobic exercise—fast
walking every day—maintains
brain power for older adults
Mobster
quits hydrox after real doctors tell him it can hurt him. But orange
remains.
Novavax
began to inject vaccine volunteers in Australia. Results in 2021.
Saint Cloud Diocese
MN pays 70
sexual abuse victims $22.5 million goes bankrupt
IAN
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