Money scams 2014

Money scams, 2014

Hot funds:

You are the victim when you use hot funds. Big paychecks come out of your account and your investments suffer. Take the most recent example: Bill Gross got a BONUS of $290 million in 2013—just as his Total Return Fund trailed a majority of peers and he was thinking of leaving. His co-manager, Mohamed El-Erian, received a 2013 bonus of about $230 million. By comparison, Laurence D. Fink, CEO of BlackRock, the world's biggest money manager, received $22.9 million in 2013 compensation, and Michael Diekmann, CEO of Pimco's parent Allianz SE, was paid 7.2 million euros ($8.99 million), regulatory filings show. See how you can win this game: http://www.sensibleinvesting.tv/how-to-win-the-losers-game-documentary

Low-cost funds beat high-cost funds everytime: http://www.amazon.com/The-Best-Predictor-Investment-Success/dp/1502524082

Why should you start investing TODAY?

I am asked, “Is this is a good time to invest” almost every week. Since no one knows what the stock market will do tomorrow, let’s assume the best US companies will continue to earn 10-12% for the future. We start investing $250 a month TODAY. If we keep it up for 35 years, we have about $1.6 million. If we wait, say 5 years, we end up with about HALF $0.88 million. That is why you don’t want to wait!

Don’t wait! Start today: http://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513

ObamaCare site got ½ million hits 1^st day—Americans need health care

ObamaCare had at least 100,000 people submit applications for health insurance coverage this weekend.  “I think the vast majority of people coming to the site were able to get on and do what they were intending to do,” Burwell told Chuck Todd in an interview on NBC’s "Meet the Press," noting that a total of 500,000 people had logged onto HealthCare.gov on Saturday.  

Is a donor-advised fund right for you?

Donor advised funds are charitable foundations that follow your wishes in distributing your money to charities. Benefits include managing, accounting and maintaining your legacy. Your gifts are deductible. You can involve your kids in regular giving programs. You can be an anonymous giver. Foundations are costly but can relieve you of a big tax bill if you have stock with large capital gains. Most large mutual fund firms offer plans. Make them part of your Retirement Spending Plan: http://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

GOP crazies—35 jobs that may cost us $ billions in cleanup and loss of watershed

Republicans in the U.S. House approved the Keystone XL oil pipeline the ninth time. 35 permanent jobs and we don’t even need the oil. We export oil now. Gas prices went down. There are about 8 oil spills per year in America. BP has still not paid all the Gulf fishing and tourist businesses yet. Senate rejects Keystone votes to fix bridges.

Boehner files suit against ObamaCare. It will cost US $1/2 billion. Two law firms had already turned down the case. Our suit will take 3 years to get through the courts.  

Who deports more—Bush or Obama?

This is a trick question because no one defines the terms deport and return. Since Reagan and Bush gave some relief to both groups before Obama, you have to study the issue to know who is doing who a favor—Obama or Bush.

Which company stocks does Congress own?

Now you can own the corps that Congress people own. Half of them are millionaires so this may be a great investment idea for you. Congress must disclose what they own when they run and one group, MapLight, is keeping track of them. Of course, you will not find out what the Congress scoops in committee or in lobbyists’ luncheons so that you know when to sell or buy more shares.

Perhaps you are better off just buying the Vanguard Top Ten: http://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

Waltons, getting by on $150 billions, keep workers on food stamps paid by US

The fortune of Christy Walton, the world’s wealthiest woman, topped $40 billion Thursday as Wal-Mart Stores Inc. hit an all-time high. Walton, 65, inherited a piece of the world’s largest retailer in 2005, after the homemade airplane of her husband, John T. Walton, crashed in Wyoming. The Walton family, which includes Christy Walton’s siblings-in-law Rob, Jim and Alice Walton, oversee a combined fortune of more than $150 billion. Wal-Mart value jumped more than 4 percent today. Workers scraping barrel with part-time work and food stamps that cost US $300 million a year. Come-on Christy!

Celebrities do NOT use financial products they sell

Just because you recognize the face or voice doesn’t mean they are familiar with the product. Fred Thompson does not know anything about reverse mortgages nor the company who is paying him. This was set up by his agent and they did no due diligence on the seller, American Advisors Group: Reverse Mortgages. 

http://consumerist.com/2014/11/13/why-you-shouldnt-get-a-reverse-mortgage-just-because-fred-thompson-tells-you-to/

More scams: http://www.ftc.gov/news-events/media-resources/consumer-finance

http://www.fbi.gov/scams-safety/fraud

http://www.ncoa.org/enhance-economic-security/economic-security-Initiative/savvy-saving-seniors/top-10-scams-targeting.html

http://www.consumerreports.org/cro/money/consumer-protection/beware-of-these-scams/overview/index.htm

Kevin James, 58, a financial advisor and insurance agent, convinced his elderly clients to cash out their annuities and insurance policies and invest $1 million in a fake security. He got 10 years in jail. Clients are out $ millions.

Junk insurance plans—the pitch

“This fixed annuity with guaranteed interest rates as high as 3.50% will be ending soon. The last day to lock-in the currently available interest rates is Tuesday, December 2nd.”

“This full coverage health plan is guaranteed by an A+ insurance company and is available only through ABC agency. You may never see this complete plan at this price again. Call now to meet the Feb 15 deadline.”

“Cancer insurance pays you a lump-sum if you are diagnosed with a covered cancer.”

“Stock Tips Delivered to your Inbox! Stock Tips is the #1 stock alert service...As always membership is 100% FREE! Sign up now!”

“These abandoned dogs need loving homes. [picture of sad pup] Send cash for vet bills, crating, shipping and inspection costs.” The pet never comes.

Telephone scams:  Government grants—9000 and you don’t have to pay them back—just the cost of processing. College degree loans. Lower electric rates. Computer fix. Telephone number look up at http://whocallsme.com/Phone-Number.aspx. FTC does nothing about these scammers with long list of complaints.

Are annuities in your retirement plan right for you?

Deferred-income annuities — also known as longevity insurance — permit purchasers to buy an income stream for the future. Treasury has agreed that annuities may help workers have an income in retirement. However, annuities are expensive and the rules of use are complicated. Your money is NOT available for emergencies. It is not clear what your family receives if you die early, how much you can buy, what interest rates are used for the benefit and what you have to take out of an IRA starting at age 70.5. So far, Treasury has not made mandatory disclosure of all the questions about annuities. In the past, buyers have been misled about the annuity terms and conditions by sellers.

You might use the best annuity instead: http://www.amazon.com/The-Best-Annuity-Strategy-Income/dp/1497532019

Is your pet uninsurable on your homeowner’s policy?

There are some dogs that insurers refuse to include in your coverage because of their losses. Know where you stand. There are insurers that will cover you.

Beware false coverages and save: http://www.amazon.com/Homeowners-Insurance-Beware-Coverage-Policy/dp/1480100870

SCAMS           Why are we still paying $700 Billion a year for WWII deployments?

We are paying for 164,253 of our active-duty armed personnel to be in 150 countries around the world. We have about 50,000 in Japan and 50,000 in Germany.

Are we preparing for WWII again? There are 1,208,083^[1] armed personnel in the United States. Our taxes pay for about HALF of the WORLD’s military expenditures every year. We have wasted $398.6 billion so far on the F-35 program—they can’t fly safely.

We just can’t afford to pay for everyone else’s defenses anymore. Japan, Germany and S. Korea can pay for their own defenses.

The War on Terror requires SEALS’ attacks on top terrorists at their homes. Iraq proved converting a nation to Western-style republic doesn’t work.

US spy planes over our cities now listening to your smartphone

US Marshals fly planes with cell tower devices to capture our voice/data. The scope of the program is pretty vast, with aircraft operating from at least five metropolitan airports with a “flying range covering most of the U.S. population.” Spying in US used to be illegal without warrant.

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Avoid taxes in retirement

Avoid taxes in retirement: Give yourself the tax-FREE income you want

Advisors are wrong—we don’t need 80% of salary in retirement. A recent survey indicates that today's retirees are bringing in far less than that -- about 66% of their pre-retirement income on average. The average retired couple in this survey, before taxes, brought in $58,000 per year. Most of that money is coming from Social Security 43%, then traditional pensions 19%.

“Let’s Do the Numbers” to Create the tax-FREE income we want:  http://www.amazon.com/Lets-Do-Numbers-Creating-Retirement/dp/1502775522

Workers will work long past age 65

A new report says that nearly three quarter of individuals delaying retirement plan to stay on the job an additional three years. And nearly one-third plan to retire at age 70 or later.

This leaves less opportunity for young people. Make every dollar count.

Use the tax system to avoid future taxes: http://www.amazon.com/Create-Your-Tax-FREE-Financial-System/dp/1466367466

Is your bank’s fixed annuity right for you?
Your bank personnel are after you to buy a fixed annuity. They tempt you with rates over 5% compared to their CDs at just over 2%. You receive a set amount for life it is true but if interest rates go up in the future, you will be stuck. With inflation at 3%, you will be getting HALF the amount of value in 20 years. If you have an emergency, you pay up to 8% to get your money back. Consider all the (non-bank) alternatives first: http://www.amazon.com/Retirement-Income-Annuity-Guaranteed-Life/dp/1497337313

Do you have a problem car?

The National High Traffic Safety Administration registers complaints drivers have with their cars and the folks at The Center for Auto Safety created an index of these complaints relative to the number of that model sold. The top cars on the list are:

• Nissan Pathfinder
• Infiniti QX60
• Hyundai Santa Fe
• Ford Focus
• Cadillac ATS

See complaints: http://www.autosafety.org/viewcomplaints/33/231/2005/all/1

Save on car insurance: http://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

Is your broker or advisor right for you?

How do you know that the product or advice is the BEST for you? What do you consider when buying? How much does the seller get paid to sell this product versus another? Is the advice free or do you pay an hourly fee? Is your advisor considering your future plans or needs? Are your plans flexible for future possibilities? Some products cost too much and can’t be cancelled. Do you have other sources of help like the Toffels? Did you pick the best of at least 3 solutions? http://www.amazon.com/Are-you-ready-retirement-worst/dp/1491002662

What are the alternatives to PIMCO’s Total Return fund?

Where do you invest now that Bill Gross’s run as bond guru is over? Wellesley Income fund has provided 10% return since 1970 with 60% bonds. Low cost (0.18%) is the key to long-term success. Gross charged 0.85% to 1.60% and so he had a hard time in this low interest rate world. Gross provided only 12% total return since 2000 where Wellesley gave you 22% vs DOW 56%. Wellesley Income is one of the Vanguard Top 10: http://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

GOP crazies

In one of the weirdest and most Floridian moments in debate history, Wednesday night's gubernatorial debate was delayed because Republican governor Rick Scott refused to take the stage with Democratic challenger Charlie Crist and his small electric fan. Crist is running as Dem after swearing off GOP after the right criticized his leadership.

Should you take the life-long pension or the lump sum from work?

This is the question many have to face as they retire. If you can’t afford to hire a planner to do the numbers for you, consider that a pension usually pays you a fixed amount until you die. If longevity is in your family, this is a plus, just like good health and your fear of the market if you self-invested. If you have other sources of income and hate to budget and like steady income, take it. If you like to control your future and create a greater retirement income, read Ian Sender’s new book: http://www.amazon.com/Lets-Do-Numbers-Creating-Retirement/dp/1502775522

Employers “Guaranteed” benefits are B.S.—don’t count on them!

Some cities and counties are taking away benefits that they had long promised workers. This has angered many retirees, and an advocacy group, ProtectOurSeniors.org, has supported a bill introduced this year in Congress that would prevent companies—public and private—from taking away earned health-care benefits. The bill would also require companies that filed for bankruptcy to pay retiree pensions for at least three years.

“Post-retirement health benefits are not entitlements, they are earned benefits that were paid for by workers and guaranteed by employers,” one advocate said.

Shifting retirees onto the exchanges means more sick people—higher costs.

“Guaranteed” benefits are no longer guaranteed. Wealth is the only guaranteed system: http://www.amazon.com/Create-Your-Tax-FREE-Financial-System/dp/1466367466

What is a “robo-advisor” and do you need one?

Wall Street’s quest for more revenue takes a twist—in order to keep profits high, they are going electronic. Your broker/advisor can now offer to do what you could do all along—use low-cost index funds at a low-cost trading website. Of course, you will still pay through the nose for this “professional” service but now it’s done by staff. Your advisor will have more time to “gather more assets” instead of processing your paperwork. The “Robo-advisor” will manage “low-cost portfolios of ETFs, “smart” rebalancing, automated tax-loss harvesting, automatic money transfers and automated dividend re-investment.” Here is the reason you are being handed off: “the platform allows advisors to scale their business, automate workflows, develop new client relationships and provide clients with a modern digital and mobile experience. An advisor dashboard allows advisors to view all relevant data at the firm level (assets under management, clients, business metrics) and at the client level (balances, allocations, performance and so on).”
Robos are also provide “paperless forms and client agreements; Web and mobile apps; bank-level security; billing software and fee collection; the generation of statements and reports; and technical support seven days a week. All client-facing materials -- including the Web site, mobile apps, client statements and e-mails -- are branded with your advisor logo.” Great for advisor—no need to call just use app!

Since your broker/advisor is going robo, you might want to go really low-cost: http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137

SCAMS           Why are we still paying $700 Billion a year for WWII deployments?

We are paying for 164,253 of our active-duty armed personnel to be in 150 countries around the world. We have about 50,000 in Japan and 50,000 in Germany.

Are we preparing for WWII again? There are 1,208,083^[1] armed personnel in the United States. Our taxes pay for about HALF of the WORLD’s military expenditures every year. We have wasted $398.6 billion so far on the F-35 program—they can’t fly safely.

We just can’t afford to pay for everyone else’s defenses anymore.

Japan, Germany and S. Korea can pay for their own defenses.

Shame the Iraq army?

A Kurdish woman fighter is leading the battle against Islamic State jihadists in the Syrian battleground town of Kobane, a monitoring group and activists said Sunday. "Those who know her say she is cultivated, intelligent and phlegmatic," said Mustefa Ebdi, a Kurdish activist from Kobane. "She cares for the mental state of the fighters and takes interest in their problems," he said.

Kick some Axx, girl!

Dutch biker gang grabs rifles, joins Kurds in fight against ISIS

Dutch govt says OK, just don’t fight against us.

Will Hell’s Angels join next?

Army lied to soldiers about chemical weapons exposure

American troops were exposed to chemical weapons multiple times in the years following the 2003 invasion of Iraq, while the Pentagon kept their discoveries of the expired or degraded weapons secret from investigators, fellow soldiers, and military doctors, according to a published report. On at least six occasions, soldiers were wounded by those weapons. In all, the NY Times reported that 17 U.S. soldiers and seven Iraqi police officers were exposed to chemical agents during the war. The U.S. government said its number was slightly higher, but did not release a specific figure. 

The Army, further, reportedly admitted to The Times that it had not followed its guidelines for treating soldiers exposed to chemical weapons in the years following the invasion.

In one case, a wounded soldier who suffered burns and blisters due to mustard gas was presented with a Purple Heart by former Secretary of the Army Peter Geren. Weeks later, he was told that he had been denied the medal because the Army had determined that his wounds had not been suffered in enemy action. 

Navy proposes new $10 million war ship because ‘cheaper’?

It is right out of James Bond movie.

New boy toys are always exciting!

Susan Walker, Ameriprise Financial adviser pleaded guilty to defrauding 24 clients of almost $1 million, according the U.S. Attorney's Office for the District of Minnesota.

She is accused of making unsuitable investment recommendations, including advising an 89-year-old client to invest over $75,000 into annuities, prior to her employment with Ameriprise. She later withdrew funds from those accounts for personal use, according to the order.

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts

Wealth Without Wall Street

Wealth Without Wall Street

“Wall Street's world turned upside down”
These were the headlines in 2009.
Wall Street financial management has proven itself worthless. Bill Gross was right. “Professional money management is a gigantic rip-off.” Only 2 advisors provided their clients with the correct advice about the total collapse of the market in 2008-9. In one year, most money management clients have seen their accounts plunge 40%, 50% even 70%. No advisor has fired him/herself. No advisor has returned their advisory fees and commissions. In fact, most advisors hid from their clients during the worst of the storm, as acknowledged by Fidelity executives in May 2009.

The naked truth—YOU must build wealth without Wall Street.

What to do?

Look at Wall Street “turned upside down.”

First, when money managers buy and sell securities in their mutual and hedge funds, they are trying to predict the future of the market. There is no proof this can be done over time. Yesterday’s winners are usually tomorrow’s losers. The AVERAGE market return has been 12%, so a few managers will beat the average by luck—Just not the same ones every year. www.Ifa.com/12steps/Step3/Step3Page2.asp#333
Second, you must pay the costs of the manager, her/his marketing group and operations, whether or not s/he makes you a dime. It is always better to pay as little as possible for the same performance over the long term. Costs can take up to 33% of your returns, over time. Investors averaged only 2.57% annually from 1984 through 2002 despite buying the ‘winners’ at the top. www.DALBARinc.com
Third, managers are paid for increasing “ASSETS under management,” not for making you rich. Bringing in more assets is a full-time job. It is expensive to market the funds given that there are now thousands available. It is inevitable that popular funds will grow until they produce average returns with high expenses. Managers want to be rich, not right. It takes luck to pick successful stocks. You do not benefit from economies of scale. As assets grow, fees do NOT shrink.
Fourth, there is much less chance of you being treated poorly by fund management if the structure and governance are customer-oriented like Vanguard’s and TIAA-CREF’s are.
Fifth, many professional managers and Wall Street “insiders” place their core assets in index funds. As bond guru, Bill Gross, said, “professional money management is a gigantic rip-off.”
Sixth, since no manager can consistently beat the market, a mutual fund or hedge fund for that matter, must be evaluated as a commodity. Commodities are usually judged on price. As Benjamin Graham, legendary value investor, said, “Investors should purchase stocks like they purchase groceries—not like they purchase perfume.” Actually, all financial services should be purchased this way—insurance, mortgage, credit, banking.
Seventh, due to changes in access and technology, some manufacturers of financial services and products have decided to enhance their direct to customer channel. Even though Vanguard funds have not been sold by personal selling, it has grown to rival most fund complexes. Discount brokers are now considered to have better customer service than brokerage firm services, according to Consumer Reports. Even though Progressive Insurance is sold by agents, their success in the direct channel has been impressive.
Eighth, Wall Street cannot reduce the risk of investing. Most individual investors have lost 30% to 50% of their life savings in the last Wall Street bubble. Many investors now realize that Wall Street is selling snake oil. Even the promise of diversification has left many realizing that “experts” can’t control risk.
Ninth, Wall Street used to control price—raising the price of investing to grow revenue directly lowers investor returns. The advisor or fund with the highest price does NOT guarantee success: only expenses to investors.

Investors can now control the price. We can use low-cost mutual funds and brokers. Since Wall Street cannot predict the markets and we don’t know if stocks will outperform all other assets over time, we must take the Pascal wager:

Pascal’s wager: The consequences of not being in the markets are worse than being in it for the long haul. Buying the market returns at the lowest price is the best solution for long-term wealth-building. You are better off without “professional” advice.

Example: Member Ron Delaney of New York will gain $400,000 because he asked about his 401k plan. Mutual fund fees are the largest source of overcharges—$400,000—over time. Ron did not believe pension costs were as high as we said. He asked his HR person about the costs of his 401K plan. He received a packet of materials. Finally, he calculated that his annual expenses were 2.1% and his annual fee was $50. His plan offered index funds for just 0.70%. He picked which funds he needed after reading our FREE Guide*. Ron saved $2,800 ($4200-$1400) every year. By the time Ron retires, he may have added an extra $400,000 to his 401k.

Your choice is clear—avoid Wall Street. Their “advice” is just marketing hype. Their research exists to sell their products. Take the advice of unbiased advisors like master investor Warren Buffett,

By periodically investing in an index fund, for example, the know-
nothing investor can actually out-perform most investment
professionals. Paradoxically, when "dumb" money acknowledges its
limitations, it ceases to be dumb. http://www.berkshirehathaway.com/letters/1993.html


* http://www.theinsidersguides.com/index.html