Is a low-cost stock index fund right for you?

 

Is a low-cost stock index fund right for you?

This chart shows why your investments in an S&P 500 index are solid. https://www.chartoftheday.com/total-return-by-stock-market-sector You could have picked one sector or company to thrive during the last 10 years, but you might have been wrong. If your long-term money goal was steady growth, you would have been rewarded by using a low-cost index that grew from every sector but one. Some did better than others during the period but together your portfolio increased by over 13% a year. And if you were investing for your retirement, you would be doubling your money in seven years. On the other hand if you had most of your money in fracking/oil/gas stocks, you would have been in negative territory by the end of the period. Your $10,000 in 2011 would be worth only $6,700 now. Things looked positive during the first 5 years but got worse. Unless you have insider information, you just don’t know what one company or sector will do. Bet on the whole stack, not the needle.

Take Warren Buffett’s advice: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

 

 

Is Flood Insurance right for you?

Changing climate patterns means you need to confirm you do or do not need flood insurance. Your homeowner’s policy does not cover floods.  Standard policies include some causes of loss (like fires, windstorms, and theft) but not others (earthquakes and flooding). Protect yourself from future rate hikes by NOT filing small claims. If you're not sure if your policy will cover you for some hazard like a sewer backup or rain flood, ask another insurer to provide you with an estimate on a new policy. This way your current insurer will NOT make a no-payment loss-claim note in your file. If your property is in a Flood Zone, your mortgage holder is going to want you to have this coverage. Don’t assume your inland property is safe. Check the MLS for the property you are considering before you buy. Texas has the greatest number of events so the insurance is expensive. Given the changes in climate, you may save thousands over time by choosing to buy in a higher elevation.

https://www.amazon.com/Customize-Your-Insurance-Save-every/dp/1490936440

 

 

Is a SPAC right for you?

Special purpose acquisition companies made up most of the growth in the U.S. initial public offering market last year. SPACs have also received a fair amount of bad press, with many pointing to subpar returns for investors. SPACs are an alternative to a traditional IPO. SPACs were created decades ago to be ‘blank-check’ companies. A sponsor group does an IPO to raise a pool of capital, then, tries to acquire a business. Originally, these entities were used to get rid of ‘dogs’—half of them would raise money and couldn't consummate a deal. Recently, SPAC became the preferred method of going public for high-growth, innovative industries. These companies don't have track records, and many don't have revenues or profits. They are very speculative but most investors are locked out of an IPO. On the other hand, you may not know what you are buying. Or rather you are gambling on a possible outcome.

Buyer Beware: https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373

 

 

 

Why does the IRS not audit more millionaires?

Short answer: they have the money to make it hard to audit. Like Trump, who boasted that he had paid little or no taxes for many years, the wealthy pay $ thousands to avoid paying $ millions in taxes. Since there is good money in tax avoidance, the smart folks work to confound—not to work for—the IRS. One Congress person, who doesn’t need donations, has proposed that the IRS be required to audit the wealthy and corporations. Since many do not pay their fair share, all of us are for this law and those who need election donations are against it. We are talking real money here: $1.2 Trillion. The IRS already knows it failed to collect about $381 billion in total—or about 14% of the amount due—over a three-year period through 2013. You can imagine what it doesn’t know.

 https://www.amazon.com/Most-U-S-Corporations-Pay-No-Taxes/dp/1514274116

 

Have tax forms; will file … for FREE

W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. If you have all your forms, file for FREE online. 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

 

Tax filing when a spouse passes away

If your spouse died in 2020, you should file as you normally would, noting the date of death on the top of the return. For the next 2 years, you file as widow(er) if you have a child. In the third year, you file as Head of Household with a child. This provides a higher deduction than Single. If not, you file as Single. There are other considerations for the survivor which you should discuss with a qualified preparer or executor of the will. Executors have certain duties including filing for the spouse’s estate. Your income may be reduced so you need a new financial plan.

https://www.amazon.com/Reset-Your-Retirement-Income-retirement/dp/1512304344

 

 

How to handle income taxes from unemployment insurance

If you were unemployed in 2020, you may have received the extra Fed help last spring. Congress provided $600 a week on top of state benefits. Now you may be faced with a tax bill for over a thousand dollars, according to a report released by The Century Foundation. The IRS considers unemployment compensation to be income because it comes from other sources like state funds. In some states, paying it was mandatory so you could deduct it from that year’s income. Since you deducted it then, you must pay tax on it now, like your 401k contributions. The stimulus money is not taxable but you may need the $1400 Congress is currently debating to pay for the taxes on your “income” unemployment even though you don’t have a job. Low income filers may qualify for EIC refund up to $3584. If you can’t pay your taxes, the IRS will let you pay on time: https://www.irs.gov/payments/online-payment-agreement-application.

Start a tax-FREE fund when you can: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

 

 

 

When you should NOT tell your insurance agent about a claim

There are many times when it does not pay to tell your insurer about a loss. For instance, when the electric power goes off and after a few days, your food is spoiled. Yes, you can call your agent and file a claim but don’t. Two things happen. Your deductible of $500 or $1,000 is invoked so you will receive nothing. Second, your claim file now has a no-payment “loss claim” note in it even if the insurer never pays a dime. In fact just asking an agent about filing a claim will be noted. In some states, filing just one homeowners insurance claim or no claim can hike your premiums by 20 percent for years to come. Obviously, it's not ideal to pay higher premiums over a $1,000 claim you could have paid for yourself. In some situations, keeping your record clear is actually more beneficial than filing for a payout. For example, you have a deductible of $1,000. Your toilet overflows and destroys your ceiling and walls below. The contractor says it will cost $2,500 to fix. If you submit a claim and it hikes your premiums $500 annually for three years, you're paying $1,500 to recover $1,000. Plus, your claim will register in the Comprehensive Loss Underwriting Exchange database, possibly complicating future claims and coverage. Insurers cover only catastrophic losses at a set premium.

Save on right policy: https://www.amazon.com/Homeowners-Insurance-Beware-Coverage-Policy/dp/1480100870

 

Plan for a full retirement fund

40% of Americans plan to work, at least part time, to gain security in retirement. 40% plan to save more. Either they cut spending or cut some expenses. I found most people could save $3,000 or more every year on financial products they don’t need. For instance, many of us are paying $ thousands extra for annual mutual fund fees in our 401k, pension and IRAs. In effect we are giving up 40-63% of our potential accumulation with no appreciable benefit. The value of securities rise over time you don’t have to pay the fees.  Our banking and insurance services have tons of hidden fees we don’t need. Investing the savings, say $100 a month for 10 years means an extra $20,000 in retirement. Some of us have delayed taking our SS benefits until age 70. This provides an extra 8% a year on your benefits in retirement for the rest of your life. That may mean $3,123 vs $1,602 per month before annual COLA increases as it did for one reader. Others have paid off their mortgage early so they could save mortgage interest. Of course, you could stay in your job longer but look at the fees first. You will be surprised how much you can save by looking at each expense.

Save $3,000 every year: https://www.amazon.com/10-Ways-Save-3000-years/dp/1515387070

 

 

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

 

 

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

 

 

Terrorists still called ‘militia’: naming cancer helps end it

 

Terrorists not ‘militia’ plan to “blow up the Capitol”

 

Trumpist feared “bad optics” Jan 6 if call in Guard

 

Our ‘Truth and Reconciliation Commission’? 

 

 

 

How Govt wastes our money:

GOP tax cuts cost $1.5 Trillion, helped rich; Dem $1.9 Trillion for us, GOP: “too much”

Vaccines for Black, Latin use stolen for White wealthy use in CA:

Which Trumpist slowed calling in the Guard on Jan 6? DC police stunned by PR ‘optics’

 

510,000 deaths; 3,000/day: vaccine appointments still hard to find for some.

 

SCAMS/SPINS:

GOP state lawgivers set up barriers to Dem voters: 1 step forward; 2 steps back

GOP makes it legal to run over demonstrators with car if get on road: legalize killing?

McConnell will back Dictator who provoked terrorist attack on gov and kill his own VP

 

One GOP claims “we aren't the party of white supremacy" Jan 6 coup by Whites not BLM

GOP adopts Trumpism: ‘no election fair unless GOP wins’: Pence was terrorists’ target

GOP claims terrorists were Dems giving Trumpists bad rap: not coup; just a “show”

 

Fake news created easily: need multiple sources to verify truth: Twitter easily fooled

 

Private TX utility fails but still raises prices: $600/day so ERCOT execs can retire

TX utility board can and did RETIRE outside TX with ERCOT electric bills of $7000

VW slows Jetta production in Mexico: ongoing shortage of natural gas.

Hyundai recalls 82,000 electric cars: battery makes fire: replace whole thing

 

Fake product reviews for sale: read carefully: fake masks popular; get rich plan

Recalled used cars for sale without the fix: dangerously cheap

IRS threatens to seize bank account: IRS got tax payment but starts collection anyway

BEWARE: thousands get letter due to computer error: IRS knows but can’t stop letters

Business making refund claims from pre-2017 US production activity

 

Libre by Nexus caught overcharging for immigrant-services: traps victims into many fees

 

Scott Wayne Reed caught selling security not approved; conflict of interest; defrocked

James Booth CT caught stealing $5 million Ponzi-like scheme: 42 mos prison

Jose Anibal Linares TX defrauded investors out of about $2 million: 5 yrs prison

James Velissaris Infinity Q Capital under review; fund closed; mis-valued derivatives?

Steven Pagartanis NY caught stealing $13 million Ponzi-like scheme: 14 yrs prison

AwesomeCalls CA caught selling stock advice w/o license: trading timing tips

 

6 police bag Black man, knee his back till stops breathing: no charges; sounds like 1800s

Southern Baptists expel Christians who welcome all Christians: What would Jesus say?

Trumpist who delayed mail-in ballots still slows post office delivery

 

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

 

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

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

Disaster victims have more time to file taxes: TX, LA, MS

There are no jobs on Mars: we spend $ billions to listen and look: sound of money burnt

Degree free: NJ community college grants for low-income families give all a chance

 

Who owns your account now?

Free PDF Editor: tools to fix your work

Car dependability study: Lexus, Kia, Toyota, Buick, Cadillac: not Rover, Jag, Chrysler, VW.

Wells Fargo money management unit to GTCR and Reverence Capital Partners

 

Miracles:

Virus cases and deaths going down: more vaccine; more masks; more bad weather?

Most GOP voters have already crossed to the new Trumpist party/cult: Donate PAC

CA giving $600 stimulus when taxes filed: GOP blocks national help for poor

 

Biden to extend mortgage forbearance and foreclosure relief programs.

Seniors can defer or freeze property taxes in some states: states have various rules

 

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

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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