Your Wealth Reserve: Where can your child invest those graduation gifts?

Where can your child invest those graduation gifts?

Make sure you teach your kids how to create wealth the easy way. My parents were not investors. At my first job, I had no clue which investment option to use for my 401k contribution and company match. The HR person told me to put it into the 'safe' stable value fund. That was the worst choice at my age I learned later when I got my securities licenses. If I had followed their advice I would have ended up with $150,000 instead of a Wealth Reserve of $877,233 about 33 years later. We have used this 'Wealth Reserve' as I call it to have funds to buy low-cost high-deductible insurance, to buy two homes and 5 cars with higher down payments or cash, and now to receive $2,500 a monthly in retirement supplement. Investing requires patience not fast trading.

Time not trading: https://www.amazon.com/Give-your-child-leg-manage/dp/1096505355

Do you need long-term care insurance?

Many will need day to day help in living and our long-term care facilities can be a life-saver for many families who cannot care for loved ones at home. America has not done a great job to identify facilities that fall short of the care standards required of every one of our nation’s nursing homes. In such facilities, some residents have experienced outright neglect, such as going without proper nutrition or languishing in filthy conditions. Some older adults and people with disabilities have even experienced physical abuse, sexual assault and premature death. Two Senator’s name some bad actors: POOR CARE IN AMERICA’S NURSING HOMES. We know care is expensive so the question is how to do we deal with this situation. Long-term care insurance can help cut out-of-pocket costs if you find an acceptable facility or at-home compromise. But does it make sense to invest in this product with so many exclusions, exceptions and caveats? Consider all the options before signing up—there is no refund. Remember, insurers are for-profit entities.

https://www.amazon.com/Long-term-Care-Insurance-Updated-2013/dp/148274001X

Advisor checklist: sales people you should fire

Most advisors/brokers/financial consultants are sales people. They are trained to sell the products their employer picks for profit. Rather, your advisor should be a fiduciary—give unbiased advice—for a stated price. They shouldn’t have a rap sheet—BrokerCheck. Work with a specialist who understands what you need. Avoid advisors who advertise or do ‘free’ meals or who serve family members. Learn about what you need before you interview. I have found that fee-only planners give more honest answers than financial salespeople. Planners have a reputation to protect.

It is your money: https://www.amazon.com/Lies-Financial-Advisors-Told-alternatives/dp/1478281545

Investing is not hard unless you ask a ‘professional’ to do it

Ever find out after an expensive plumber visit that you could have done the same thing for almost nothing? I recently had a stopped up tub drain and called the guy used by my neighbor which cost me $400. After running his cable auger for 20 minutes and checking that he hit the bottom of the soil stack, he asked me to provide a bottle of dish-washing liquid. I got my $5 blue Dawn from the kitchen and watched him squeeze a stream into the drain with running water. Wham! In minutes the drain was clear and running fast. This professional collected my $400 and said, yes, soap builds up a grease blockage. Now I clear it once a week with my dish-washing liquid for fifty cents. According to Warren Buffett successful investing is about letting compounding work its miracle automatically in time. Investing is a habit—just keep adding to your fund and it will flow.

https://www.amazon.com/Building-Wealth-Like-Brushing-Teeth/dp/1470141469

Is it worthwhile to learn personal finance?

Have you taught your child how to handle money? More high schools are promising to offer personal finance classes but are they really helpful? In the past, surveys show kids forget more than they learn about personal finance. In short, most courses provide too much info at a time when your child is not ready to learn. There is no immediate use for learning the difference between stocks, bonds and municipal bonds. And most of the content is sourced from the industry so you never learn that Warren Buffett recommends low-cost Vanguard fund. Courses perpetuate the myth that only paid professionals can provide sound advice. After running programs in security firms and banks, I concluded that the folks who needed the help the most were not going to get it from the industry. My colleagues and I put together how-to books for every separate topic. When you need to know which insurance to buy, you learn it then. When you need to know which 401k or IRA investment option to pick your first day at work, you learn which is best for you. No one will remember what they learned in high school. Plus when you learn on your own, you learn about more UNBIASED alternatives.

Get them started: https://www.amazon.com/Give-your-child-leg-manage/dp/1096505355

Patience makes you rich, Warren Buffett says

From 1985 to 2014, the average stock fund returned 10.7%, but the average stock fund investor got just 3.8%. Why? They tried to time the market, jumping in and out and invariably getting it wrong. During the same period, the average bond fund returned 6.9%, but the average bond investor earned just 0.7%. As one member aptly put it, “Seems hard for people to just buy and hold for the long term.” They get greedy and try buy low and sell high. That means being a stock market genius TWICE. It may seem counterintuitive, but over the long term you really do make money sitting on your hands. Warren Buffett: “The stock market is a device for transferring money from the impatient to the patient.”

Try patience: https://www.amazon.com/Millennials-Investment-Strategy-BEST-journey/dp/1533079242

Is rental real estate a good investment?

The market value of Single Family Rental assets totals more than $2.3 trillion. This analyst offers the first systematic analysis of total returns to Single Family Rentals over a long time period. They find that total nominal returns are approximately equalized across US cities, at about 8.5%, the same order of magnitude as equity returns. On average, net rental yields and house price appreciation have each contributed around half of the 8.5% total return. However, these two components are negatively correlated. High price tier cities accrued more capital gains, while low price tier cities had higher net rental yields. Within cities, they show that lower-price-tier zip codes have higher total returns as a result of both higher yields and higher house price appreciation. You can imagine how much work it is to be a landlord so the better deal is to invest in a real estate investment trust (REIT). You can earn 10% over time using a low-cost fund like Vanguard’s VGSLX. Low-cost funds beat high-cost funds every period.

https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

Give your graduate the best gift you can give them: tax-FREE money

High school and college graduates need the best gift you can give them: a future of tax-FREE income. Get them started now since your gift can grow many times its value over time. For instance, $50 invested now can provide them with $20,000 when they need it later. Since you have started your grad off with this special IRS-approved tax shelter they will find it easier to keep saving/investing the right way. They will end up with a tax-FREE retirement. They can create a $500,000 tax-FREE account. Some young people have grown their accounts to over $1 million by investing $167 a month while they work. They will pay NO taxes on their wealth. They can avoid future tax increases. They can boost their savings by 30% with just the fed/state tax savings alone. And if they need a home down payment or business start up fund, they can use the contributions tax and penalty FREE.

Perfect gift: https://www.amazon.com/Tax-Shelter-Young-Americans/dp/1500426520

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

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

Coup: “We are here to take over the Capitol, we are here to hang Mike Pence”

Dictator spied on own counsel and Dems

‘I didn’t take an oath to defend Donald Trump’

Will we reject American fascism again?

How Govt wastes our money:

Biden Justice Dept still protecting its lawyers and Trump spying on Americans: swamp

IRS almost never audits private equity firms: illegal tax avoidance made legal for rich.

SCAMS/SPINS:

YouTube stops GOP from spreading lies about covid cure: Hydroxychloroquine or Ivermectin