How can you double the value of your investment dollars?
How do working people earning average salaries prepare for retirement by building a $1 million fund? For most of us, there are three simple steps: tax-deductible paycheck automatic savings, employer matching funds, and compounding interest. Compounding happens when you leave your money alone in a low-cost S&P 500 stock fund to make money on itself. You can earn 11% a year. Many employers offer to match your retirement fund contributions. It is free money so take it. Using a 401k, 403b or other tax-deferred plan including an IRA allows your money to grow without current taxation. Thus contributing $250 a month—$125 per pay period—can easily grow your fund to over a million dollars by the time you retire.
Never too late to start: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513
Only self-employed can deduct expenses of a home office
That is the federal rule but 7 states allow some deductions for work from home. You may deduct some expenses from a home office if you are a rideshare driver or an online retailer. If this is a new category of work for you—Uber, Lyft, delivery driver—you should rely on an experienced tax preparer for your return this year. If you started any type of non-paycheck job this year after being laid off, you may be able to claim many expenses in pursuit of income. Likewise your online retail store expenses including the space you use to manage your store may be deducted. You may not make a profit this year. Your business loss may offset some of your other income like unemployment compensation and Covid related sick time pay. Many businesses received loans that may not have to be paid back. However, the paperwork is complicated. Unfortunately, you can’t avoid all income taxes like our former president.
https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300
Is a credit monitoring service right for you?
Most of us are not victims of ID theft because we know not
to give out info to thieves who send us fake emails, calls, and texts tricking
us to give them our personal data. The most popular currently is the fake IRS
message asking to confirm our information. It takes months to clear up the
results of a stolen ID: fake purchases, fake bank debits, etc. So a profitable
industry has worked on our fears to take our money in the form of promises of
protection. Some even claim they provide a $1 million in protection—for a
price. However no paid service can stop an ID theft—we only know AFTER
the event. There are free monitoring services: CNBC Select ranked the top credit
monitoring services and top
identity theft protection services. CreditWise® from
Capital One ranked as the best overall free service for credit
monitoring because it offers dark web scanning and social security number
tracking, plus a credit score simulator tool. Identityforce.com ranked as the best
overall identity theft services for offering the most extensive security
features that monitor your information on the dark web, court records and social
media. While freezing
your credit can protect you, the simplest way to learn about fraudulent
activity in your name is to sign up for a credit monitoring service. It immediately
alerts you of any potential danger. Then you can take action
before the ID thieves can hurt you. You can get help at https://identitytheft.gov/.
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
Where are the great financial advisors?
No where and every where. It depends on what we expect from them. Some of us pay a lot of money for advice—over 63% our potential lifetime earnings in costs, according to John Bogle, founder of Vanguard. Others feel that they would have lost all their savings if it were not for their advisor. Others went to a financial planner and paid a one time fee (like buying a will). They have a complete plan for their future financial needs. Most advisors are not brilliant product analysts so they rely on their firms’ ‘select securities and products.’ That is what marketing is for—products are “sold not bought.” Most advisors are sales people by necessity. Firms need profits and advisors DRIVE our money into their firms. If advisors bring in a lot of money, they stay. Maybe you don’t need an advisor who takes your earnings every quarter. You may need an unbiased advisor that works for a fee, not commission. Like a good car mechanic, they don’t try to sell you on a transmission flush when all you need is an oil change. Car makers don’t recommend flushes. As a former sales manager, I paid a financial planner for a check up for a single fee. I have a plan for the next 50 years with all the contingencies. All advisors rely on standard software so your portfolio and plan follow universal guidelines. There is no need to give up over HALF your money anymore. The best advisors don’t need clients.
Get value for your money: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957
Know the SS benefit rules for the greatest benefits
Before you sign up for Social Security benefits either
online or at a local office, know the ABCs of your account. Set up an account so you can make
sure SS has the correct information about your work history. Your benefit is based on your 35
highest-earning years. Your benefits may be taxed up to 85%. You can start
benefits at age 62. However, if you do start early, that reduces your amount by
about 25% for the rest of your life. Your full benefits are paid by age 67.
Every year you wait—till age 70—increases your benefits by 8% a year for the
rest of your life. If your spouse or ‘ex’ earned more than you did in SS
records, it may be better to claim spousal benefits. Spouses without their own long
work history can claim benefits in this way. Survivor’s benefits let
a widow or widower collect up to 100% of the late spouse’s Social Security
benefit amount.
https://www.amazon.com/Your-Retirement-Income-Checklist/dp/1544703260
What can we do with a big auto loan and no job?
According to Edmunds.com nearly 70% of new car loans in the first
quarter of 2020 were longer than 60 months with many either 72 or 84 months.
The trend over the last decade is longer and longer loans. We all know someone
with this problem: Bob bought a big luxury car used but he still owes over
$25,000—payments at $840 a
month. Bob lost his job. Bob has no 2nd car and is single. The
car is worth less than $15,000 now. Bob could try to trade down but there would
still be a large balance. Bob can’t roll the balance into a new loan since he
has no job. Bob can try selling this car and paying off part of a loan with
smaller monthly payments. If Bob can get a ride to shopping or work if he finds
a new one, this would be best. Bob does not like that alternative so he begins
to work as an Uber driver. There are expenses
that are deductible including use of his car. Bob decides this is his best
option for now. He decides he will never buy another used luxury car with a
loan. Bob has to buy new coverage so he shops around to save.
Shop and save on
insurance: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634
How do you know
when to get out?
Gamestop stock went
up and then went back down to $40 where it was January 19. At 347 per
share, did you sell on time? How did you know when to sell? Did your broker or
advisor tell you so? If you bought at 200 expecting it to rise further, did you
get caught in the fall on February 2? I hope you did not see your account show
a negative
balance of $730,000 like the young man who couldn’t get through on the
phone to verify. Playing stocks can kill your savings or worse. Yes, direct
online trading is possible but is it worth it? Like playing lottery someone
could win but the chances
are sometime 300 million to one. Don’t we have an obligation to show our
young how to invest like Warren Buffett, a real wise investor?
https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963
**********ACCOUNTABILITY**************
Like 1776, this
period is a test
of democracy—We
rejected an "American
fascist"
Trump cult members beware:
Trump
didn’t stop cult who wanted to “hang Pence” for disloyalty
Dictator
can incite overthrow of our government again
Most GOP want
Dictator back: “Trump party” in all but name
What
if it had been Obama and BLM Jan 6?
So
much for justice in America!
Our ‘Truth
and Reconciliation Commission’?
How Govt wastes our money:
Opioid pushers get tax refunds for settling claims for 450,000 deaths: profit from killing!
Stockpile masks while nurses receive only 1: Biden’s people waiting Senate GOP OK
Wasted on 57 Trump fake vote-count lawsuits in each state: we pay for state courts!
US
making $100 billion missile 20 times
Taxes to make robots that kill automatically: hackers will love our cyborgs: kill us?
IRS fails to update: you pay tax yet collection letters on auto: Seize your account HELP!
IRS still hadn’t processed 6.7 million returns for the 2019 tax year: Amended takes years!
$ Billions to send rover to Mars: we did this already in 1997: internet for rural US yet?
SCAMS/SPINS:
Republicans
"worried that if they vote to convict … people
would come after them."
Trumpists
have defeated the GOP: Most Americans know GOP
is not viable anymore.
Dictator
did nothing even after hearing followers vow to HANG his VP Pence.
McConnell
avoids responsibility: up to prosecutors to charge Dictator with crimes.
House sues
Trump/Giuliani/terrorists using 1871 law for Capitol attack: Mitch testify?
When
a coup fails, media calls it a ‘riot’: winners always re-write
the history we read.
FBI recognized many
Capitol terrorists from their Terrorist
Watch List on videos.
Ivanka
not going for Rubio Senate seat: only interested in top job: another Trump
WH?
Child
abusers in Boy Scouts go free $ billions insurance money to lawyers, mostly
the-most-common-lies-people-tell-about-money-60324.html
Global
warming means more ‘too hot and too cold’ on new
climate maps: FL floods.
Mercedes recalls
1.29 million 2016-2021: software may fail correct crash location.
Texas
tells residents to fend for themselves: car
in garage kills family
Fake tax preparers: Check:
they must have a valid Preparer Tax Identification Number.
Stefan Qin caught
stealing $90 million Ponzi using fake algorithm for cryptocurrency
Virus spreaders: No-Maskers
fake US marshal pass: 1/3
military decline vaccine
No-Maskers push death
toll past 500,000:
ExGov Perry: OK
to freeze in TX cold so that oil/gas firms
receive socialist tax subsidies
The
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
Check Social
Security: https://blog.ssa.gov/
Safeguard data:
ConsumerReports help: https://securityplanner.consumerreports.org/
Jobs
Another job search
tool: https://www.glassdoor.com/blog/guide/how-to-use-glassdoor/
Visa Ban lifted?: Unemployed
workers weren’t interested in jobs held by foreign hires
Another
Trump tower falls: thousands
laid off in 6 bankrupt biz
Who owns your account now?
Verizon’s proposed acquisition of Tracfone: no more ‘pay as you go’?
Looking for service: $15 mo keep own number and phone https://www.mintmobile.com/
Miracles:
A
nursing home that tried to protect its own: after a year of lockdown,
vaccines
HealthCare.gov reopens to
provide much needed coverage for laid off workers.
Hundreds
volunteering to escort
elderly Asian Americans to stop beatings by terrorists
Holy
War: cast GUILTY vote: now can’t go home: Family turns: “disappointment
to God”
CA
gives extra $600 for virus relief: waiting for Congress means hunger or
eviction
Flooded
giraffe habitat takes special rescue: soon
Miami will need a rescue from floods
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
973.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available at http://dankeppel.blogspot.com/
