Which type of financial person can actually help you?

 

Which type of financial person can actually help you?

Like doctors, financial professional have specialties. So your wire house broker can’t fix your tax situation. Most retail financial people can’t help you with a comprehensive plan. Planners usually don’t live on product sales. They charge a fixed amount for creating a plan for your specific future. We paid a planner a set fee in 2018 to assure us that our future retirement would provide all we might need. We received a plan that included annual income and expenses, a “What If Worksheet,” the likelihood of funding all our goals and a portfolio evaluation with net worth estimates. With 2 live sessions, this review helped us see the big picture even though I had a pretty good idea of our future situation. As a manager in a few financial firms, I had seen all kinds of financial professionals. To find someone who can provide the best unbiased advice for your specific situation, you need to understand your situation. If you are a good saver/investor, a stock picker can’t help you. By this I mean that most working people already have what they need: a low-cost stock/bond mutual fund inside a tax-advantaged account. A 401k with an employer match or self-directed IRA or Roth IRA is the best you can get. For most working people who want a secure retirement, the smart play is a low-cost Target Date fund. This is what Warren Buffett, a master investor, recommends. His advice is unbiased and fee free. A low-cost fund assures you that you keep more of what you earn.

Make Warren Buffett your advisor: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

 

Do you have to take money out of your retirement fund this year?

IRS reminds us to restore our Required Minimum Distributions plan this year.

Individuals who reached 70 ½ in 2019 or earlier, did not have an RMD due for 2020. For 2021, they will have an RMD due by Dec. 31, 2021. Individuals who did not reach age 70 ½ in 2019 will reach age 72 in 2021 will have their first RMD due by April 1, 2022, and their second RMD due by Dec. 31, 2022. To avoid having both amounts included in their income for the same year, the taxpayer can make the first withdrawal by Dec. 31, 2021, instead of waiting until April 1, 2022. After the first year, all RMDs must be made by Dec. 31.

Though the April 1 deadline for taking the first RMD is mandatory for all owners of traditional IRAs, participants in workplace retirement plans who are still working usually can, if their plan allows, wait until April 1 of the year after they retire to start receiving distributions from these plans. Individuals who reached age 70 ½ before 2020 and were still employed, but terminated employment in 2020, would normally have a 2020 RMD due by April 1, 2021 from their workplace retirement plan. This RMD is also waived as part of the CARES Act relief.

Employees of public schools and certain tax-exempt organizations should check with their employer, plan administrator or provider to see how to treat these accruals.

Spending plan for RMD: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

 

 

What would our pay be if it matched our productivity rise since 1970s?

$22.14 would be the hourly wage if we were paid based on what we produce. Productivity increased 239% since 1950—automation and information technology created the modern working environment. Word processors and copiers replaced typewriters and carbon paper copies and mimeo machines. During the 1970s businesses stopped raising our pay and took more profits for owners. Union membership collapsed and business processes were simplified so that almost anyone could do the job: almost anyone can make a car since the hard parts like welding are done by machine. Home repair plumbers have to make individual parts fit exactly just like a lawyer has to make the wording fit exactly so they earn $60,000 plus and have a comfortable retirement. Both can increase earnings over time based on skills. For most factory workers doing repetitive work, the top incomes hit $40,000. There is little chance of increasing earnings over time. Union workers make more than non union so Amazon is currently fighting its warehouse workers. It takes two: both of us have to work full time to secure retirement income.

We must keep more of what we earn: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072

 

Is a tax increase right for you?

If you are a working person and most of your income is reported on a W-2, you already pay over 33% in taxes. Most millionaires pay less than 18% according to billionaire Warren Buffett. GOP Mitt Romney pays 13%. John Kerry pays just 12% most years. Most wealthy people have the money to pay less by using tax havens or deducting expenses in a business. Biden has promised to pay for the pandemic and Trump tax cuts with new taxes on the wealthy earning over $400,000. Unfortunately, most middle class Americans support giving the wealthy all the financial breaks. The wealthy claim, through their representatives in Congress, that Democrats only want to ‘tax and spend’. However, Republicans passed Trump’s tax break for the rich and their corporations. They called it a “middle-class tax break” but that was a lie. The wealthy have increased their assets during the pandemic because our government has provided a safety net to the stock market. So for the rich, their stock market assets have increased over 31% in the last year; 16.8% annually over the last 5 years and 13.4% over the last 10 years. At minimum they have doubled their money every 5 years--$100 M, $200 M, $400 M. Private profits; socialized losses. Taxes are supposed to go up when incomes go up. Just the reverse.

We need a tax increase: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

 

Where is that refund?

The Internal Revenue Service today reminds taxpayers that the most convenient way to check on a tax refund is by using the “Where’s My Refund?” tool at IRS.gov or through the IRS2Go Mobile App.

Where is the stimulus 1 or 2: If you did not receive stimulus 1 or 2, start filing here: https://www.irs.gov/newsroom/recovery-rebate-credit

 

 

Have tax forms; will file … for FREE but WAIT . . .

If you have unemployment income, ObamaCare coverage you should wait to file since the IRS has not yet implemented tax-FREE provisions of the new Covid law. Taxes due MAY 17 not April 15. Input the W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. forms you have. You can file for FREE online. If you didn’t receive a correct form, file a Form 4852.  Usually filing your state return costs as little as $15 unless you buy the Pro helpline. Avoid $300-400 paid preparer fees—new IRS forms mean higher fees. Unemployment insurance is TAXABLE on the Federal income tax return; not on some state returns. Some states do not tax your SS and pension benefits. Retirees did not have to take their RMDs in 2020 so taxes may be less: it was a good time to convert IRA to Roth IRA for tax-FREE future. Unless you were self-employed, you can’t deduct home office expenses of working from home. Some states continue the health insurance mandate and penalty unless you have an exemption. Since the IRA contribution deduction has no age limit now, you may reduce your income/taxes by making a contribution of up to $7,000. The standard deduction went up to $12,400 single; $24,800 joint. Jan 15 last day to make 2020 estimated payments. You have to report your April/May and December/January stimulus payments even though they are not taxable. Some of us receive a bank credit; some a debit card; some a check. Even if you don’t have to file, you should file so scammers can’t use your SS number to mess up your IRS file. Tested E file software ratings. Efile Jan 15; IRS processing Feb 12.

E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

 

 

**********ACCOUNTABILITY**************

 

 

Like 1776, this period is a test of democracy—We rejected an "American fascist" 

 

White Supremacist admitted killing

 

Two terrorists killed Capitol policeman

 

Our ‘Truth and Reconciliation Commission’? 

 

 

How Govt wastes our money:

Credit Suisse caught again helping wealthy avoid fair share of tax: can we stop cheats?

Executives Took Huge Chunk of Trump Tax Cuts: GOP: “already done enough aid”

IRS & most tax prep software still taxing unemployment & ObamaCare paybacks

 

We paid the employer portion of unemployment comp instead of Uber, Lyft, et al. 

Trump must pay for Trump’s suits to reverse elections: Judge in AZ says: 50 states to go

40% health care workers not vaccinated: get covid from your clinic, hospital, Dr office?

 

SCAMS/SPINS:

Keep masks: Vaccination doesn’t stop every infection: you can get it & pass it to others

TX MS FL Non maskers can push deaths to 550,000: vaccines/masks stop variants spread

How did 17 yr old Kyle get an Automatic Rifle to kill people? Any kid can buy a killer?

 

Wealthy make a fortune on TX tragedy: made $100 million selling power to have-nots

 

Ford recalls 2.9 million vehicles for shrapnel in driver-side airbag.

Credit card interest rate reduction scams, new account & account takeover scam: more

Marketing inducements are fake: only 3 left; countdown clock; sale ends now; etc

 

1 Global Capital Dantins caught stealing $24 million by selling securities illegally. 

 

For-profit colleges like Corinthian, ITT Technical caught; student loans discharged

Student Loan Pro caught charging illegal upfront fees to file paperwork for debt relief

 

Facebook fake posts: so easy to be mislead: must check facts https://www.snopes.com/

Fake news by some sick twit regarding Oprah, Hopkins, ballots, etc. easily deceived?

33% of GOP will not take vaccine + 20% say not sure: no masks, no vaccine, no normal

 

GOP states cancel health benefits for poor: 1.4 million in TX could receive health care

Sen Johnson says not afraid of White terrorists: Ron, Terrorist kill white folks

 

IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.

IRS: Free special ID protection PIN goes on your return so scammers can’t take refund

IRS: Previous tax returns available online: https://www.irs.gov/individuals/get-transcript

IRS tips to avoid scams: https://www.irs.gov/newsroom/tax-scams-consumer-alerts

 

Is it a scam?  Check AARP scamline 877.908.3360. BBB Scam tracker

 

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

Find tax preparer: https://www.irs.gov/tax-professionals/choosing-a-tax-professional

 

Check Social Security: https://blog.ssa.gov/

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

 

Jobs

Before you take a job in a flood zone, check out the future: glaciers are melting

 

Who owns your account now?

Refinance: is now the time before rates move above 3%: 6% normal; 3% inflation

Customers Happier With Property Claims if Digital Process Unbroken: send pic, get $

 

 

Miracles:

There is hope for all our ailments sometime in the future: Amazing re-grow a body!

$1,400 into your bank account by April 1: checks take longer: non-filers tell IRS address

Local religious groups pay off $3 million in medical debt: insurance not enough

 

Someone paid $69 million for digital file: you can’t hold it but I guess you can sell it

Get all of your stimulus: online calculator gives a number to expect for 3^rd stimulus

 

 

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/

We can apply for health care online: https://www.healthcare.gov/

 

 

IAN

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www.InsuranceAdvisorsNetwork.com

Alerts available at http://dankeppel.blogspot.com/