Get to know your financial biases for a more secure future
What are the Fundamentals
of behavioral finance? First: overconfidence bias. New investors make a
killing on one of their first trades and now they feel like Masters of the
universe. Self-deception means we miss information vital to making informed
decisions.
Second: Over-simplification
means we think “investing is simple—just do what we did before.” Some people
try to mirror an action they read about like buying Coke because Warren Buffett
owns Coke. Third: Emotional decisions. Some folks hear about a fantastic
money-making scheme and avoid doing their own research. Internet chats tell
them to buy Vietnamese
Dong and check the site for the signal to sell. Fourth: Social pressure
means you hear that the “smart money is selling health care stocks short.” That
advice may have been accurate last month but not now. Learn
more about your biases here. Remember, the
middlemen only make money when you
buy or sell. It is your money!
https://www.amazon.com/Fact-based-Investing-first-million-hardest/dp/1977574270
Is a health savings account right for you?
When health care needs are NOT great—you both are in good
health—this kind of account lets you save
money in a tax free account. You may accumulate funds until you need them
year after year—even later in retirement. This account may be set up IF you can
buy or your firm offers a high deductible health care policy. By using untaxed dollars in a Health
Savings Account (HSA) to pay for deductibles, copayments, coinsurance, and
some other expenses, you may be able to lower your overall health care costs.
HSA funds generally may not be used to pay premiums. While you can use
the funds in an HSA at any time to pay for qualified medical expenses, you may
contribute to an HSA only if you have a High Deductible
Health Plan (HDHP) — generally a health plan (including a Marketplace plan)
that only covers preventive services before the deductible.
https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083
Many wealthy people want to copy Trump’s $750 tax bill
“Why can’t I do that?” Less than 0.5% of very high-income
households paid as little tax as President Trump in 2016. Few of us of any
income can match Trump’s avoidance methods. With median incomes (AGI of about
$50,000 to $75,000), only about one
in 10 paid $750 or less. 45% of those middle-income households paid between
$5,000 and $10,000 in federal income tax. People who know about taxes think
that Trump took questionable deductions. Trump has special legal entities to
avoid taxes. Real estate development is especially ripe for cheating—almost
anything can be considered an expense in the real estate biz plus depreciation
on buildings provides extra large deductions. Also Trump has turned his
business failures into huge tax benefits. Most of us cannot deduct the huge
real estate loans he used to develop properties that failed. If we go bankrupt,
we can’t deduct the loans like he did. His accountants have used questionable
techniques in that area according to some experts. For instance, Trump
used special appraiser friends in inflating the value of his ‘woods’ to produce
a tax avoidance of $21 million. Trump has left a low-cost method of tax
avoidance for us in current IRS rules.
Use
the IRS approved tax-FREE account for working people: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300
Are
you ready? Social Security will cut benefits in 10 years
Social
Security Trust Funds are expected to see shortfalls starting in 2031,
three years earlier than expected, according
to a new forecast from the Congressional Budget Office (CBO). Without
Congressional intervention to shore up the funds, the SSA will need to cut
benefits to retirees and beneficiaries as much as 25%, CBO said. With the loss
of revenue from GOP tax breaks to the rich, Covid pandemic economic effects,
and low interest rates, most smart investors are expecting less retirement
income. For those who have at least 10 years before retirement, savvy
investment moves could offset the loss of SS benefits. We don’t know what will
happen to the market in the future, but we do know fixed income CD rates of
under 2% won’t help us. The only inflation killer is a portfolio of stocks.
Despite the fall in prices in 2007-8, those who held on did great—earning 13.58%
per year over 10 years; 11% per year since 1976. If you start now, you will
have enough for retirement since no one takes ALL their money out of stocks
when retirement begins.
Avoid
the cuts: https://www.amazon.com/Your-Retirement-Spending-Plan-have-enough/dp/1461084016
Need to save money? Save over $3,500 a year
When returns on investments are low, paying your advisor’s fees can rob you of over $100,000. If your investments are earning 6% but your fees, commissions and expense ratios total 2%, your account will grow HALF as much as it could have over time. Example: You invest $250 a month for 35 years with costs of 2% per year. You end up with only $229,194. If your 6% a year on average only cost you 0.07%, you would end up with $352,216. That is $123,022 more—HALF again than with advisor fees. You can always hire an advisor when you have a problem. Your advisor pockets the $123,022. Most of us are correct in assuming advisors are a luxury item. We can’t afford to give away that much of our nest egg. Plus it could be tax-FREE, adding ¼ more.
https://www.amazon.com/Tricks-Trade-Save-Mutual-Funds-Insurance-Annuities/dp/1535497289
**********ACCOUNTABILITY**************
Like 1776, this
period is a test
of democracy—do we really want a Dictator?
Supremes
decide election … again?
Dictator to terrorists: “Stand
by” We
will see [if I leave WH]
Dictator: I’m
not inciting terrorists, just “having
fun”
Dictator: “I
just start kissing them” 19 women
Dictator: Plan
to eliminate FBI, jail opposition
How Govt wastes our money: Our
Representatives gave 3.7 Trillion to the wealthy!
NASA putting 4G network on moon: many kids can’t do online school here lacking 1G
Trump blocks CDC guidance on masks on all transport: Almost like he wants us to suffer
Trump blames leftists for protest violence but court docs say young adults from burbs
Trump’s Post Office mail tampering/slow down may decide our election: Swing states
Trump’s family separation operation can’t find parents of 545 children: Child abuse?
Trump’s GA immigrant prison doctor did “forced unnecessary gynological surgeries”
Trump mob to get discount on $ Billion no-bid contract for 5G network: we lose control
SCAMS/SPINS:
PA
tossed 372,000 votes because voter checked box requesting future ballot:
GOP wins
Roberts
& Supremes allow ballots post marked Nov 3 to be counted despite
slowing mail
Putin’s
hackers change election: picture says “1 million Trump event”; really
musicfest
‘60 Minutes’ too rude, biased to Trump
ego so he walks: Dictators
need positive messaging
21,000
Election Day polling places have been eliminated to help Trump win: 11
hour wait!
GOP
uses any means to stop voting even when it helps them: NO
standard for signature review
Postal
service benches its police who guard mail boxes: thieves encouraged to
ditch ballots
Company
employees threatened with job loss if Trump loses: FL GOP pressures
companies
Trump brags he
can shake-down Exxon for money: Trump
did it to casino owner for 75M
Jared
to start new Trump media outlet: Trump-branded product outlet; rebuild
brand/empire
Trump
paid $188,561 taxes to China but just $750 to US: average American
paid $3,346
Trump mob member
Broidy pleads guilty to unregistered
foreign agent for China: no jail
Another
teen Trumper caught
plotting to kill Dems: AR 15 & explosives van;
Ten
states Friday reported highest one-day cases: Trump rallies mass spreader: 224,000
Schools open then
close: virus cases up:
teachers face life or death or fired
Grace
30%
small biz run out of money by Dec: Mitch
GOP says no money for working families
OxyContin
maker guilty defrauding US; not
murder of 450,000: Sacklers
not jailed
SEC
asked firms to tell us the truth about their bad acts: Wall Street does
not: Surprise!
Mark Gelvan caught
running fake charity (vets, cancer, disabled) $56 million: spent most
Motty
Sunshine Mills announced
a recall of certain pet food: poison
mold kills
DoorDash, Grubhub,
Uber Eats caught
charging restaurant 20-40% fee to deliver plus tip
Insurers caught
taking some drugs off their coverage list: how
to buy now
Vast Tech, OMG Tech caught
tricking clients’ computer problems so buy tech support
Health Insurance
Team caught
fake state website mislead buyers with private fee plans
One-Time PIN Code
Scam: https://www.youtube.com/watch?v=j43rcSe_vik&feature=emb_title
Is your vehicle the most popular with thieves? Make sure your coverage is complete.
Trump
claims Google stifling competition and innovation: I tried others—just
garbage
Eric Trump caught
tricking voters with fake photo of Mr Cube’s hat: how low can go?
Fake product
reviews: https://www.pcmag.com/how-to/how-to-spot-a-fake-review-on-amazon
10
online shopping scams: how to tell it’s a fake: fake
copycat websites look like official
Is
your employer watching you at home? ‘You have 60 seconds to
start working again.’
Ultimate
intimidation vehicle goes electric: does the gun rack fit? The $113,000
toy.
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
https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers
Check Social
Security: https://blog.ssa.gov/
Safeguard data:
ConsumerReports help: https://securityplanner.consumerreports.org/
Jobs
NJ
hiring and training coordinated by gov: 70,000 jobs goal
No GRE required: Information
and Data Science: online UC Berkeley
CVS
Health said it will hire 15,000 employees: winter contagions
Who owns your account now?
Medicare: enrollment Change plans
from Oct. 15 https://www.medicare.gov/plan-compare/#/
NJ Health marketplace: Replaces HealthCare.gov in
Best quality/safe/reliable used vehicles for teens: CR picks start at $7,000
Charlie Brown TV specials cancelled: Apple bought Christmas and Thanksgiving specials
Avoid first-time home mortgage mistakes: get best deal for long-term loans
Miracles:
MI
bans assault weapons near/in polling places: Trump
encourages terrorists to be there
You pay less
tax if you earn over $142,800: income over $142,800 Social Security tax FREE
Trump’s
food stamp cuts for 700,000 poor outlawed Sunday: 8
million new poor since May
Top
military leaders vote Biden: 'The world no longer looks up to America'
Pope: "Homosexual
people have the right to be in a family. They are children of God,"
GOP
Supremes could derail progressive laws in 2021: 3 years for
We can apply for
Medicare online: https://blog.ssa.gov/apply-for-medicare-online
We can apply for
Social Security online: https://www.ssa.gov/benefits/retirement/
IAN
41 Watchung Plaza,
B242
973.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available at http://dankeppel.blogspot.com/
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