Is putting off retirement right for you?
A quarter of Baby
Boomers plan to postpone their retirement. The virus pandemic has changed a
lot of lives and plans. If you start Social Security benefits you cannot go
back. Previously this was allowed. This makes your decision all the more
important. Many will wait because they do not wish to begin taking retirement
money from an IRA or pension now. Studies have shown that doing so can hurt you
in later years if you have a big reduction in your nest egg immediately. If you
have 30 years in retirement, you don’t want to begin with a bad 1st
year. Also, this is one of the worst times to buy an annuity since future benefits
are calculated on the current very low interest rate. You
could only receive $437 a month for life in return for your $100,000 if you were male age
60. On the other hand, if you had to
retire due to job shut down, you could receive $896 a month for 10 years in
the hope you would be better situated later. Delaying
SS benefits to age 70 provides a much larger monthly income: $3,790 maximum for someone who files at age 70
compared to $2,265 maximum for someone who files at age 62. Maximum benefits
require higher incomes for your final 35 years of
work. The average
benefit is $1,503. Also remember taxes are due on up to 85% of SS
benefits if your total income is higher unless you have tax-FREE Roth IRA income.
Create tax-FREE income: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976
With the virus
passing 4 million, what can you do to save your nest egg?
If there's anything you should expect out of 2020, it's volatility
and unpleasant surprises. Most people are checking their account more often and
that is a recipe for disaster. Panic selling is what happened in 2007-8. The stock market fell
37%. Some investors think they can avoid the market drop by selling. But
your advisor doesn’t know when the market will come back as in 2009-10 with 27%
and 15% growth. We can’t control the virus or the market so we must focus on
our nest egg end time. A stock market index fund is the only asset class that
has proven
11% returns over time. Wealthy investors in hedge
funds etc have a really bad record of losses. They can afford to take a
chance on alternative assets; we can’t. Warren Buffett, one of the most
successful investors, says holding a low-cost stock index fund so we take
advantage of compounding earnings is the best way to protect our nest egg, rain
or shine. Costs are all we can control.
Is buying the ‘hot’ fund now right for you?
Advisors and young investors try
to pick the ETF funds that are rising or will rise during the current
conditions. They want to ride the wave to the top. Problem is: momentum
trading does not work. Over time, picking
the hot security usually results in disappointment. Why? No trend lasts for
long. With index funds of all types, the past trends have been changed—watered
down. Be wary: past
performance is no guarantee of the future; only the hype. The owners of Wall
Street firms are great at the hype. What else do they have? They don’t have a
predictable product nor a person who has golden hands nor a crystal ball nor a
way to control the underlying factors nor a magic wand. All they have to make
the sale to you is the B.S., the “story” as my firm’s FCs used to call it.
Why are target-date funds so popular?
Short answer: they use the three best investment strategies
available to working people. First, they are usually low cost. This means that
over time, you
don’t give up over 60% of your earnings
to sellers. Second, they use compounding—the miracle
of compounding—earning money on money by itself. Third, they usually hold
index funds which
can provide 11% earnings from many profitable companies—you are
diversified. The added bonus is that as you get closer to retirement, your assets and
contributions become less volatile—from 90% stock
to 30% stock balance. Unless you are wealthy enough to loose 1/3 of your wealth
in a derivative or leveraged hedge fund, this one fund decision is all you need
to be a successful investor. It just takes time. Warren Buffett recommends it.
Perfect time to convert part of your IRA to a Roth IRA
If your income and thus taxes will be lower during this
pandemic, converting taxable future income to tax-FREE future income may make
sense now. If you are over age 59 ½, you can take out IRA money with
no penalty—just extra taxes—at lower rates than future years. If your
income and tax burden allow it, taking any amount--$10,000, $20,000 even
$30,000 from your future retirement account is a smart move now since all the
earnings in the future will be tax-FREE. Even if you are in retirement now when
you do NOT have to take your 2020 RMD—forced IRA distributions—your tax
liability will be less this year so you can afford to take and pay tax on a
chunk of your IRA. Because the stock market is
still positive, you can convert your stock IRA money to future positive
income with no tax in the future. Many advisors see higher taxes in the future
(to pay for the Trump tax cuts to the wealthy and virus expenses). You
benefit two ways: take advantage of lower current taxes and avoid
paying the increase later. You will pay less tax later as you take out smaller
traditional IRA distributions AND your future taxable income will be less. Roth
IRA balances can accumulate for your whole life without distributions or tax
payments. You may be able to avoid income tax on your Social Security benefits
too.
How the super wealthy—$100 billion—avoid income tax
Zuckerberg’s
net worth just passed $100 billion. Can you write $1,000,000,000 one hundred
times? He joins Jeff Bezos and Bill Gates in the clouds. Zuckerberg’s net
worth is largely derived from his 13% stake in Facebook. Since these guys and
other uber gelt holders do not have to take a salary, they have no taxable
income. Think of that! Like the old Robber Baron times,
they can sit in their home offices and clip coupons/dividends. Yes it is
possible to pay no taxes. Our president
claimed that he pays no income taxes too. However, we know he owes a lot so
that may be how the wealthy buy things—they live on loans. So Zuck, Jeff, Bill
and Don can just text their bank and get a loan every year to pay for
maintaining their lifestyles. You don’t pay income taxes on a loan. They
also don’t pay for the public
services they use—airports, roads, courts, army navy air force. We pay for
those on their behalf. Because their companies pay for most of their ‘overhead’
private planes, health insurance, gym, body guards, meals, etc, they don’t need
to pay much “out-of-pocket” expense either. We pay for that when we buy stuff.
**********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: Supremes
picked to delay/overturn election like Hong
Kong
Dictator: no press at GOP meeting
How Govt wastes our money: Congress
gives 3.7 Trillion to the wealthy!
Census
not counting all as per Constitution: est. 37% not counted, Dems lose Congress
seats?
Congress
takes vacation all August while we wait for help with virus
keeping us from working
Trump’s
promised health care plan is dead: millions lose employer coverage in July
Trump
tax reform benefits wealthy who hold foreign assets over US assets: we pay
their taxes.
Eviction,
loss
of relief $600, job not re-open, virus threat, school?: government fails
many.
Testing slows as deaths rise
in hard hit states: will schools test
every child before spread?
SCAMS/SPINS:
Trump’s new voter
suppression strategy: delay
mail-in ballots so invalid, not counted
Virus
is making medical firms wealthy: $175 test? Plus add-ons $2,479. Medicare
for all!
HALF
kids at GA camp infected, most positive virus tests were 6 - 10 year olds. School?
TX
does not count positive virus tests: rapid-result tests ignored: Thousands
spread virus
Trumpers
threaten Fauci, his family because he gives respected scientific info not
B.S.
One
man not sick infects 91 +: it is called pandemic for a reason: symptoms in
10 days
Trump in cognitive
dissonance: changes
to favor mail-in ballots:
last week--against it!
Trump: Biden
opposes God, Bible, religion, guns, energy, rights, everything American?
Will
US election be decided by foreign influence? Adverts, fake news, bribes, hackers?
Kanye
West schill for Trump to get votes from Biden: GOP paying to help West in
CO.
Consumer
defense agency became consumer exploitation agency: loan interest to 500%
Consumer products shrink so we get less for
same price: they think we don’t notice
Brian Scroggs, VCS, Transfer
Group, Real Travel failed
timeshare relief: kept payments
Netflix phishing
scam: steal
credit card info by tricking you into updating your account.
Gov
agency scam: caller ID, agent number, military romance ask for money to get
grant
Victor Lee Farias Integrity
Aviation stole
$14 million Ponzi engine parts leasing scam
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
Immigrants
constitute 40 percent of home-buyers and help
create new jobs.
Who owns your account now?
Check
your Social Security statement for correct earnings: it determines your
later benefits
Best
Cars for Teens Under $20,000: CR picks safe, reliable used cars and SUVs
insurable.
Best appliance brands: CR Appliance
Brand Reliability Rankings: no “get what you pay for”
States
Pull Back On Pension Payments: state
budgets don’t allow pension build up now
Miracle:
White
cop not charged in Michael Brown’s killing: shot 6 times but “no proof”?
Wisconsin governor
orders masks statewide amid virus surge despite GOP objections
Billionaire pays off
student loans: continues
family tradition of giving
Flu, pneumonia vaccines
could lower risk for Alzheimer’s
Missouri approves
Medicaid for ½ million despite 10 years GOP votes against it
Virus tests (quick
version) are NOT accurate: OH gov negative then pos then neg.
No-Mask
school halls: perfect infection atmosphere: almost
like gov wants sickness
IAN
41 Watchung Plaza,
B242
973.746.2014
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