Advisors caught charging extra fees for virus
Advisors and brokers may be charging excessive fees,
offering conflicted advice and even engaging in fraud to make up for revenue
lost during the Covid shutdown, according to a new, wide-ranging
risk alert the Securities and Exchange Commission issued for both the industry
and investors. SEC noted three areas of concern: Advisory fee calculation
errors, including valuation issues that result in over-billing of advisory
fees. Inaccurate calculations of tiered fees, including failure to provide
breakpoints and aggregate household accounts. Failures to refund prepaid fees
for terminated accounts. Firm owners are squeezing salespeople due to the
virus. Regulators see advisors making questionable rollover recommendations,
transfers to advised accounts and investments in products that pay the firm or
advisor more. Some advisors are taking loans from investors and clients.
Supervisors are not stopping some advisors pushing more volatile securities.
Advisors working from home have delayed responses.
Avoid fee overcharging completely: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957
IRS collection letter—IRS never opened their mail
If you mailed your tax return and or check in March or
later, you may receive a default notice from the IRS. The IRS
stopped opening their mail in March
and hasn’t caught up yet. So if you get a letter saying you owe taxes and
interest and penalties, don’t panic. Someone at the IRS knows they goofed and
did not stop the automatic collection letters from going out. Usually there are
3 letters over months. You can try to call the IRS and ask that they place a
hold on further collection actions to give them time to find your
check. Generally, the hold can be for eight weeks. The phone number
to call is in the top right-hand corner of the letter you received. Anticipate
lengthy hold times; they are receiving lots of calls at this time. Congress has
been cutting IRS staff for many years. Our Washington
Wish you had bought Apple, Amazon, Microsoft, Google,
Facebook?
These
stocks have raced ahead during the pandemic. People needed phones, stuff, internet,
cloud and information to work at home. Amazon
stock has doubled in a year. Many people own these market leaders. In fact
they have owned them for years and their accounts have soared—31% in 2019 alone.
Many of my fellow investors did not pay commissions or extra fees to buy these
stocks. Some have paid as little as 0.04%. We did not use an expensive advisor
who could have taken over
50% of our earnings over time. We know that brokers, advisors and analysts
cannot predict which stocks will double. We followed Warren Buffett’s advice.
We use his strategy to own the winners. Over time we
have earned about 11%. Our
money doubles every 7 years.
Buy and hold the winners: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X
Congress allows Trump to remove mail-sorting machines to
delay citizen votes
Trump
admits it—smoking gun. Post office will NOT be able to process our mail-in
votes and so the vote count will be delayed. Delayed
vote is a Trump vote as USPS told 46 states recently. Only one
Congress person took action on this! Sorting machines
are still off line and mail piling up. Mail-in votes will miss deadlines. Once
the vote count is delayed, Trump will get a decision from Supremes just like Bush got from
Scalia. Our votes will not be counted—GOP’s judges will decide for a GOP
win, again. Right-wing
dictators have done this many times. Once they have placed many biased judges
and Supremes in the judiciary system, there is no higher authority in our society.
Voting, dominated by misinformation and actual suppression (late ballots never
get counted), becomes
an exercise in propaganda—just for show like Belarus
Socialism for the rich: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584
Is a 401k loan right for you?
Folks with an alternative are NOT using their retirement
money for a temporary infusion of cash during the virus downturn. An
emergency fund became a real life saver for most. According to recent
research, few are taking advantage of the special penalty waiver: The CARES Act
allows qualified individuals to borrow up to $100,000 from qualified plans such
as 401(k)s, 403(b)s and IRAs without
penalty. Borrowers, however, would be required to pay taxes on these
distributions ratably over three years. As a last resort, participants (29%)
said they would dip into their retirement account. 27% said they would stop contributions
to their retirement savings, 26% said they would borrow from a friend or family
and 26% said they would max out their credit cards. The research found that
only 8% have taken money out of their workplace retirement savings accounts and
10% stopped contributions to their accounts. Workers
in the airline, entertainment and manufacturing industries were the most likely
borrowers. Unfortunately, retirement accounts provide the best way to use
the miracle of compounding to assure we have enough retirement income. It takes
3-5 times the cash to make up for the compounding effect over time, depending
on age.
Keep compounding: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513
Is the 8.1% annuity right for you?
An annuity sales
company is promoting the “Highest
Annual Return” of over 8% with a “purchase bonus of 13%.” Most of us know this
deal is not possible in the current interest rate environment. So what’s the
story? Well, the claims are made up from some dubious assumptions and
tricks of financial accounting. Contracts are complex.
I found one insurance company that offers a deal close to the one promoted. To
get such an annuity requires
a long-term commitment on your part. You will pay a surrender charge if you
need your cash before the 10 years vesting period. You don’t earn the bonus
without waiting a number of years. You may not earn anything in some years
since the rate is determined separately each year despite locking up your cash.
You “participate in stock market gains without any downside risk.” They offer
no actual policy example on the site. You must provide your personal
information so they can put you on their call list. They offer two testimonials
which violate the NAIC
model regulations. They mislead us since they do not relate to the specific
annuity promoted.
Income & Growth
option: https://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573
Financially independent folks live the Simple Financial Life
The Simple Financial Life consists of five actions. You
don't have to be wealthy or a genius to become financially independent. This
book will show you how to live the Simple Financial Life: Use only 3 mutual
funds to reach ALL your financial goals. Use the best tax shelter: no taxes
ever and it's FREE. Protect your family and assets with your Wealth Reserve.
Borrow from your own 'bank' to pay for large purchases. Stop wasting $3,000 or
more on the financial products you now own. Manage your investments in 15
minutes per quarter. Buy whatever you need at a discount. Practice the FIVE
actions for financial freedom. It’s never too late to start.
What is this new form from my advisor?
Form CRS is a compliance
form the regulators think we should read since they expect us to do their
job. It says we should ask our advisor to disclose all of their conflicts of
interest since regulators don’t do that. Since all firms must deliver this general
form to their customers, we actually don’t learn a thing about our advisor or
firm’s practice. We don’t know how much they get paid and which and how much
their suppliers are paying them legally and under the table. Instead of the SEC
requiring firms to print all the costs of their services on our statements and
confirms they want us to dig this info out by ourselves. Many
advisors report that we are not quizzing them on the important stuff like
commissions, kickbacks, bonus pay, sales contests and vendor relationships as
the SEC planned. Unless your advisor is a fiduciary, sworn to provide the
“best” solution for your situation, your firm is not going
to divulge this information on their own. Trump killed the “fiduciary duty”
rule for salespeople as soon as he took office. Even when advisors treat us
badly, they are answerable only to their own firm’s “self-regulatory”
body—FINRA. Usually the firm can hide the misdeeds behind a process that lets
them erase the theft
or deception from the public. Even if you win the FINRA hearing, it
is hard to collect the fines. Firms can then let the advisor move to
another firm. Very few are defrocked and go to jail. We are not
allowed to sue our firm or advisor.
Use the fiduciary rule yourself: https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275/
Scammers take unemployed for $millions in MLM schemes
$79 gets you a starter kit to your ‘road to riches.’ Selling
a miracle cure or face cream or diet supplement, you can live off the profits
of the distributors you recruited. Sounds like a better job than the one you
left. The underbelly of entrepreneurship is mostly a scam. Minorities and women
are the targets for “multilevel marketing” firms. 99%
of those who try, lose money. Why? They are desperate—especially now. The
pitch comes in all flavors. Celebrities
sell the concept and the owners keep the profits. Internet social media
carries the message for pennies per sale. Doctored photos, false claims, and
unproven remedies: there is no
end to the creativity of scammers. The regulators don’t have the will or
budget to stop them. You may remember our
president tried a similar scam with his Trump University. He promised to
share his real estate secrets. Some paid $20,000. The head of our education
department, Ms DeVos, is heir to MLM
Amway. Protect yourself.
How to overcome fear of market volatility
You need a complete plan that is focused on the long term:
what are your goals; how are you going to get there. You need to learn how to
use compounding and a tax-free account. You need to protect your portfolio using
diversification of assets and low-cost strategies. Know your biases. If you
like to “play the market,” keep a certain amount for that purpose. Separate
your assets into short, medium and long-term piles of money. Since no
advisor or TV commentator can predict market moves, don’t listen to them. Find
an unbiased advisor—one that does not sell financials—like Warren Buffett.
Consider his advice: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963
**********ACCOUNTABILITY**************
Like 1776, this period
is a test
of democracy—do we really want ‘low-IQ’
Mobster?
Philly DA: we have an “authoritarian
dictator."
Dictator: Late
mail-in vote is invalid vote
Dictator: air pollution is
allowed again
Dictator: Drillers
can destroy Alaska beauty
Dictator got
elected with enemy help: aid
and comfort
How Govt wastes our money: Congress
gives 3.7 Trillion to the wealthy!
Trump
has PO remove mail boxes from streets 671
sorting machines to suppress vote
Trump
sends troops to Poland to prop up another dictator: costly move of Army
Corps
Fed keeps printing money to help wealthy
earn more while Main Street
When does the gov take a cut of the sale of private
property? Trump’s
Socialism
SCAMS/SPINS:
CA restores
30 round mags for more
mass shootings: “right to bear arms”= kill many of us?
Trumper’s
take Hillary
eating kids’ brains seriously: Crazy
theories grab lost souls: in
Congress
GOP
proves Trump election was a fraud: foreigners supplied chaos, money, inside
info
FBI
lied: Carter
Page, Trumper, worked for both CIA and Russia: FBI taped double
agent!
Trump:
QAnon
conspiracy theorists 'like me very much' and 'love our country': Earth flat too.
WH
propaganda: election
can’t be fair if Trump loses: trouble ahead: GOP courts decide prez
Kanye
West, Political Pawn: why does this smart Black man let himself be used by
the racists?
Our
future? Belarusan protesters are still trying to oust their leader after disputed
election results.
TD
Bank caught using
deceptive and abusive practices selling overdraft: Debit Card Advance
SCF
Investment Advisors CA caught
selling more expensive funds 12b-1 fees to SCF: fines
SCAM:
forgot to cash a check; unpaid bill; phishing
texts on everything: Call vendor first
SCAM:
phony pink slip; fake virus test result; fake
video meeting; Don’t click—call
first
Companies’
auto-renew: you
get no warning so you must cancel separately
Romance
revenge: posted
his credit card data online: change the locks too.
School
open: Children
May Carry Coronavirus at High Levels not Trump’s "virtually
immune"
Steve
Bannon caught
stealing $1 million from donation for boss’s WALL. 7th Trumper
felon
Mail still not on time: PO
head claims he stopped delaying mail but big Trump ally
Dem
Fat Cats cut demand To End Fossil Fuel Subsidies from party platform:
Lobbyists $$ win!
Is it a scam? Check AARP scamline 877.908.3360. Check
IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams
Jobs
AZ school district
teachers/staff call in sick: district
can’t open
Zillow agent
profiles represent the most
useful source of information.
Jobs fade: mortgage
delinquencies rise: worker emergency fund
CEO compensation at
top 350 firms grew 14% to $21.3 million on average: workers
wait
Who owns your account now?
Student
loan repayment options: Virus-impacted income or not, re-do terms.
Used car best
buys from CR: $5-20,000
Taxpayers can submit Form 1040-X electronically
with commercial tax-filing software.
Eviction notice? Contact county government for
advice before trying a lawyer
Miracle:
Arctic
tundra is burning: Fire Radiative Power 5 times July 2019 level.
3
men kidnapped my dog, on camera: police arrested the men and I got my dog
back safe.
A dent in Earth's
magnetic field could pose a risk to spacecraft and satellites and cell use.
IAN
41 Watchung Plaza,
B242
973.746.2014
Alerts
No comments:
Post a Comment