Showing posts with label Roth. Show all posts

Friday, March 24, 2023

In 2024, Roth 401(k)s will no longer impose RMDs

When to start your guaranteed stream of income

Most of us are lucky: we can start our guaranteed income stream whenever we want. We only need to decide how much we want or how much we need to live comfortably. And the bonus at no extra cost is that the benefit grows with inflation. My wife and I began receiving our guaranteed income stream at different times in our life so it is easy to compare how your decision can make a huge difference. I started my stream of income at age 62 because I could find no work. I have been getting my monthly check of $1,691 with inflation step-up for a number of years. It goes right into our checking so we can spend it right away. No wait to clear a paper check. My wife liked working so she waited to start her stream of income till she could improve her benefit no more. At age 70 she began and now she receives $3,495 a month. This is over double my benefit and my last salary was greater than hers. We pay nothing extra for the inflation increment each year and the administrative costs. Medicare costs come out of the benefits automatically so we don’t have to worry underpaying our health insurance plan. These benefits come because we paid for them every paycheck. No supplemental insurance (annuity) could have matched these benefits for life. Plus we get to keep our retirement funds growing—earning more for later. “The question isn't at what age I want to retire, it's at what income.”

https://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573

Have you taught your child how to make tax-FREE money?

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 about $150,000 instead of a Wealth Reserve of $877,233 about 33 years later. I have used this 'Wealth Reserve' as I call it to have funds to buy low-cost insurance, to buy two homes and 5 cars with higher down payments or cash, and now to receive $2,500 a month in retirement supplement. Now your child can build an account that provides tax-FREE education and retirement income too.

Time is on their side: https://www.amazon.com/Give-your-child-leg-up-manage/dp/1096505355

If you are worried about your money in a bank, move it

Most large banks can handle your money unless you keep $millions in 0% savings loosing money. Even holding Treasuries isn’t safe. Many of my readers aren’t worried because they are riding out the craziness of the gains and losses of the gamblers’ market moves. When gamblers loose at the tables, they are supposed to go home poorer. The well-connected never have to suffer it seems. Congress is happy to lower the bank regulations for their schemes. Regulators are happy to please the rich and famous, especially if they sit on the same boards. My readers are investing for the long term so they only have to keep their money spread around in profitable businesses as Buffett advises. Over time they have been rewarded with gains and dividends that will help their nest eggs grow. They don’t have to speculate on stocks or ETF during these crisis times. They are happy with most 10-year growth periods. Using low-cost mutual funds that compound over time they have found steady growth—doubling their funds every 7 years. They own shares in real profitable firms making things of value not ticks in a computer. It is TIME, not timing that builds wealth.

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

S&P 500 up 5% YTD vs 5% 1 year CD

Investing is about taking a chance—short or long-term. With your CD, you will always receive your 5% in a year. You will usually pay a penalty to withdrawal early. Your money is guaranteed up to $250,000 unless the government steps in to make you whole no matter how much you lost. This doesn’t happen often. Investing in the top 500 US corporations gives you no such guarantee but you have the chance to earn 32% or lose 18% in one year. However, over time investors have found the 11% average return annually. Average is important. There are bad years. But your funds double every 7 years if you wait. My readers have found that after some time—10 to 15 years—they have a balance that allows them to take out enough money for emergencies. They don’t need an emergency fund as a 1 year CD. They don’t pay a withdrawal penalty if they need the money. With certain tax-FREE retirement accounts they can have their cake and eat it too. They can withdrawal without penalty or tax due. More likely they just keep building a bigger retirement account because the low cost accounts maximize the Miracle of Compounding. That is the Buffett secret to wealth.

https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

In 2024, Roth 401(k)s will no longer impose RMDs

The Roth 401k will get even better in 2024. Your money—deposits and earnings—are already tax-FREE after retirement (contributions are never taxed). Starting in 2024 you are not subject to RMDs which make you take your retirement benefit out every year. This means you get to create a legacy for your family without a trust—FREE. You can use your money whenever you wish. The required minimum distributions are required for 401k and IRA accounts because you get the tax benefit at the time of contributions. This lowers your income and tax if you pay in every payday. If you also make contributions to a Roth account, you have the option of never paying income tax on the gains. Thus you could turn your Roth IRA or 401k into a tax-FREE retirement system worth $millions

https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072

GOP vision of America’s future “freedoms”: what they are doing/will do

Children’s education reduced to DeSantos Conservative ideology

WV bans health care for transgender minors

FL wants to ban the Democratic Party as revenge for toppling Confederate monuments

FL blocks League of Women Voters legal activities (rally, meetings)

FL DeSantis will have a veto-proof majority in both chambers: junta installed

Kids Carry concealed weapons without a permit back to 18

Cancel programs on diversity, equity and inclusion, and critical race theory.

TX takes over Houston Independent School District: GOP not parents will run schools

SC Republicans want death penalty for mothers after abortion: christians? kill women!

Death sentence without a unanimous jury.

Easier to sue journalists you don’t like

Further restrict abortions. TX man sues 3 women for helping his ex-wife obtain abortion

WY medication abortion providers could serve six months in prison

Near-total ban on abortions drives doctors away: ID hospital stops delivering babies

Trump: military to ‘stop’ crime: martial law replaces civilian control of cities: dictator

Couples with 10 kids would have their property taxes cancelled under TX law

Catholic group spent millions to track gay priests: Russia or America?

30 GOP states limit public health authority: next pandemic wipes out million+?

AR Gov bans child sex talk and child labor law limits: roll back child labor protections

Child abuse? kids under 16 can marry in West Virginia with parent consent

GOP repeals long-standing environmental rules: business to take ‘Freedom’ hand

FL Gov raises private army: 150,000 “brownshirts”, answer only to DeSantos

GOP Clarence questions our right to counsel in criminal actions against us

Pence: “History holds Trump accountable” but ‘I won’t help jail him NOW’: 3^rd Rail?

Wealthy avoid tax we have to pay

How do all these wealthy people avoid the taxes we need to fund our military, legal system and the airports? They use them but don’t pay. They fly their private jets from the airports we pay for, the legal system they use more than us and all the military supports around the world as they visit their global homes and businesses. Our country taxes personal income not loans on $millions in assets. This means we pay for what they use and they don’t. We can’t afford to buy legal help to use special financial tricks to reduce taxes. We can’t afford owning sports teams or real estate or “hobbies” that show paper loses to deduct from our income. We can’t afford to buy the help of Congress people who change the rules on business income like Trump did in 2017. One critic said, "Wealth managers are bragging" about the effectiveness of their "tax dodging tricks." Even when they die, they can leave $ millions to their legacy using special rules to avoid the estate tax. This is how dynasties happen and the cycle of tax avoidance continues. Wealth perpetuates itself almost automatically.

Use your tax haven: https://www.amazon.com/Your-Tax-Haven-Tax-FREE-Americans/dp/1482659441

?**********ACCOUNTABILITY**************?

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

The Path to Dictatorship: 2010-2030

Parallels of this era in the past may hint at our future: democracy breaks apart legally

Jan 21 2010 Corporations’ election-spending unlimited

Billionaires paid $881 million for votes in 2022 midterm elections

Nov 2020 Wealthy discredit election process

Nov 21 2020 Trump’s Plans for a Coup: criminal

Nov 21 2020: Trump plan: US Marshals seize voting machines

Jan 6 2021 Direct assault failed: guns & bombs ready

Trump engaged in a "criminal conspiracy" to stop Biden

“I don’t f—ing care that they have weapons”

Trump was “detached from reality”

Trump used mafia-style intimidation on the defenseless

Trump still terrorizing election woman

Parscale: “a sitting president asking for civil war.”

Trump: “Just say the election was corrupt and leave the rest to me”

GOP fascism: “RINO hunt armed; no bagging limit” J6 comm threat

January 6, 2021 “A date which will live in infamy”

Trump’s Supremes END personal rights & state laws except for weapons WMDs

Fascism: GOP to stop women leaving state for abortion

It’s not a court. It’s a junta: Two Americas

Trump: President Biden is 'enemy of the state'

Christian Nationalist Party (CNP) replaces GOP

Nov 8 2022 Trump’s “national revolution” failed

Nov 15 2022 Trump announces for 2024 to avoid lawsuits

Dec 3 2022 Trump: cancel Constitution rules so ‘I win’

Mar 11 2023 Pence straddles his place in history

Jan 2025 Dictator pardons himself: his Supremes agree

How Govt wastes our money:

Money for new Moon Rover but not for hungry US kids: priorities?

Own your own bank: capitalism without risk: CEO changed law & keeps pay packet

Farm lobby seeks more subsidies: GOP to cut Food Stamps for poor: corn for gasoline?

Fed raises rates to increase joblessness 4.5%: my credit card already at mob rate: 29.99%

NY prosecutor cancels meeting: Trump gets away with crimes again?

SCAMS/SPINS:

Trump is inciting another overthrow of our gov: “TAKE OUR NATION BACK!”

Fake images of Trump arrest show how propaganda may tear US apart

Fox silences own producers from telling about falsehoods it broadcast about election win

Tesla recalls 362,000 of its Full Self-Driving (FSD) Beta software: causes crashes

238,000 Honda Civics probe: steering can stick, increase in effort, risk of a crash.

Hyundai and Kia 571,000 SUVs and minivans park outdoors: tow hitch harnesses fires

Ford recalls 1.5 million: fix leaky brake hoses and windshield wiper arms that can break.

Media influencers (not doctors) paid to hawk drugs on TikTok

Matt Damon, Tom Brady, Reese Witherspoon caught promo crypto: fees hidden: no jail

Toxic ‘food’ brominated vegetable oil, red dye 3, potassium bromate, propylparaben and titanium dioxide?

Grover Norquist conservatives stop free tax filing service we need: gives $500+ to Turbo

IRS finds worst scammers this year

Tax refund myths: IRS warning

Trial over fake Trump real estate tax deductions halted by bomb threat: mystery caller

Darryl Matthew Cohen caught steered money to self, fund his son’s basketball league.

Nick Palky caught stole $250,000 client’s account using forged checks to steal

Joe Harding GOP FL caught fraud $150,000 in Covid Relief scheme: no jail

Portfolio Recovery Associates caught illegal debt collection practices: fine no jail

CO allows gun-toting teen to show up at school every day: what think would happen?

How US succession happens in specific areas: schools, taxes, laws, red-line, clubs, sports

baseless-claim-that-jan-6-rioter-flipped-against-the-fbi-circulates-on-twitter

false-reports-claim-bill-gates-faces-premeditated-murder-charges-over-vaccines

Countertop composter Lomi does NOT make “nutrient-rich fertilizer.”

Arrest warrant for Putin: stealing kids from Ukraine homes: Seal Team 3?

Jobs

Construction industry faces a gap of roughly half a million workers; skilled trades too. Application rate jobs like plumber, electrician dropped by 49% between 2020 and 2022.

More than 550 slots for emergency medicine residents were left unfilled this year

White Americans feel left out; even they think they don’t belong. This is not good.

25 High-Paying In-Demand Jobs: salary & requirements

Tennessee plant aims to build 500,000 electric trucks

Who owns your account now?

DJ Equity REIT Index beats Total return S&P 500: stocks up in last decade

Medicare special plans to help with expenses and coverage: do you qualify?

Millions of people could lose Medicaid next month: check now

5% one year CD for temporary money: shop bankrate.com/banking/cds/cd-rates/

what-if-i-cant-pay-my-taxes: here are your options: it costs less to deal with the IRS itself

Miracles:

'Vibrant' Roman mosaic discovered under supermarket in Olney

Some ingredients crucial for the advent of life arrived aboard rocks from space years ago

Some young Americans are turning to friends to find romantic partners: not vid strangers

Our Universe is Mind-Blowing

Light is both a particle and a wave depending on how we look at the light.

I don’t think that there is any such thing as a position or a velocity of a particle.

Everything (galaxies to stones) in universe made of subatomic energy ‘vibrations’

A subatomic ‘particle’ is the smallest possible vibration (quantum) of a quantum field.

Mass–energy equivalence: E=mc^2. At the smallest level; Everything is moving

Energy into matter: scientists converted light energy directly into matter in one step

Physics Nobel Prize: “entanglement” 2 particles share info instantly at a distance

“It may be that gravity and quantum mechanics are exactly the same thing,” Leonard Susskind

Gravity might induce the collapse of quantum vibrations into 1 quantum state—our world

There is no TIME at this level because of force fields come and go in all directions.

Universe expanding: events may not come together like they did before.

Inside protons, neutrons, it is the fields of the virtual particles that creates its mass.

Gold made from neutron stars: collisions produce more neutrons:79 protons,118 neutrons

The proton is so complicated science still finds new energy entities/forces every year.

“Empty space is a boiling, bubbling brew of virtual particles that pop in and out of existence in a time scale so short that you can’t even measure them.” Space expanding.

The electricity we use comes from the field around the wire not from electron itself.

Scientists build 'baby' wormhole as sci-fi moves closer to fact: inside quantum computer

starts-with-a-bang/universe-expansion-not-accelerating/

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

973.746.2014

http://www.theinsidersguides.com/

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

Friday, July 24, 2020

Is giving your 401k money to a hedge fund/private placement right for you?

Trump has provided wealthy money managers a great new year present. With access to our $5.6 trillions in 401k money, the super rich will earn 2-4% commission/fees. They also pay less tax since they invented the offshore tax haven and contribute nothing to our way of life. They take their money OUT of this country. For us, this ‘alternative’ wealth option earns less for us. Over time their fees rob us of up to 63% total accumulation due to the compounding effect. Some pension funds with better fee deals than we can make have already dropped these investment options after losing more than a simple index fund. The SEC has already issued a warning about these investment managers. So why do some wealthy people buy ‘alts’ as they are called. Some say they are great for diversification and high returns. However, scientists who have studied their history say they are a poor investment choice even for the super wealthy. Warren Buffett beat the returns of 6 of these funds with his recommendation for everyone.

Take Buffett’s advice: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

How to deal with the bankruptcy stigma

With 50 million Americans out of work and the end of unemployment help and eviction hiatus, many working people will need to consider this strategy for a “fresh start.” Most of us consider filing for bankruptcy an admission of failure. However, the way some have gotten through it (Recession 2007-8) was to accept the reality and move forward with the positive. One client I have was over 60 years of age and had been laid off from 3 firms that closed. Even though he had much quality experience and professional degrees, he could not find anything comparable to his former management positions. He tried sales but found that that would take years to build a customer base for a decent income.

He and his wife were forced to declare bankruptcy in 2010 after trying to live on credit cards and running up debts of $231,000. It cost them a year of anxiety, near divorce and $3,000 in legal fees. Positives: No more creditors calling at all hours, multiple letters, and fear of losing all retirement account assets, cars, home, etc. They did not share the experience with family or friends so that eliminated some feelings of shame and guilt. They were able to keep all their retirement assets, home and cars. The husband started his reduced Social Security benefits. They lived on the wife’s salary. They lived with poor credit scores for 10 years and then they had to work hard to remove it from the records. I was able to help them with advice from my books, but they had to make the tough choices. The husband tried making his own business but after spending $3,000 from credit cards, he gave up. When debt is overwhelming, you must choose the “fresh start” to be able to live your life again.

You can live again: https://www.amazon.com/Insiders-Guides-Discount-Financial-Services/dp/143480593X

Investing has been described in many ways it is not

For some folks, it is a game, a casino, a lottery, a gamble. You hear some say they ‘play’ the market, ‘bet’ the ranch, raise their ‘stakes,’ ‘hit the big one,’ make "10-baggers," and all sorts of slang. Some dream of becoming wealthy by picking an unknown stock that blossoms into a perpetual money tree. Most working people fear losing all their money in the stock market so they don’t grow their long-term savings. Others have steadily invested all their lives because their parents were regular savers too. Some people are just lucky: consider those who purchased just 10 shares in Warren Buffett’s company Berkshire Hathaway's stock in 1985. BRK is now the costliest stock in the world, with its current price at $286,899 a share. This is primarily due to CEO Warren Buffett's choice to NOT split the shares as they rise in value. He once said that keeping the share price so high drives away traders looking to make a quick buck. BRK owns many profitable companies like GEICO and stock in others like Coke, American Express, Bank of America, and Apple. Buffett’s advice for investors follows from his experience as owner NOT as a salesperson advisor/broker.

Follow the unbiased master: https://www.amazon.com/MasterClass-Buffetts-SIMPLE-Strategy/dp/1983485268

Why the Roth IRA may be the best investment option

Other than a legal offshore tax haven, the Roth IRA/Roth 401k are the best investment account for most people. All your earnings in the account can be spent with no income tax due. Unlike a regular IRA or 401k, you pay tax on just the contributions NOT the earnings. Assuming you are saving for your later spending years, this may provide an extra 25% spending power when you most need it. Later when you can’t work or can’t work harder, this tax-FREE income will lower your tax on Social Security benefits too. The Roth IRA and Roth 401k are relatively new so in my AARP tax volunteer time, I don’t see them very often. When I do, I congratulate that client for thinking ahead. Another fact: Income tax rates are lower now so paying tax on your contributions now can save you a bundle later. For instance, let’s say you invest $250 a month, $3,000 a year in a stock index fund inside a Roth IRA for 33 years ($99,000). Your nest will be worth about $980,000. You can spend every cent of $4,683 a month tax-FREE. Plus your SS benefits are probably not taxed. With a regular IRA or 401k, you pay 22-25% in tax on this income (including 60% of SS benefits). $4,683 minus tax is $3,512 a month or $1,171 a month less. Over the average retirement life, that is $351,000 less in spending.

https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

The stock market recovery reflects the inequality of Two Americas

With 50 million on unemployment and without jobs, how can wealthy Americans continue to support the same 2019 market level? Why are investors so confident? Where did positive 2^nd quarter company earnings come from? Wealth inequality. 10% of the richest folks own 70% of all assets. The middle class is shrinking so the top 20% own more assets than the other 80%. Since most of the market assets are owned and traded by the top 20%, it can keep going forever as long as there is confidence that their assets will grow in value. That confidence seems to come from the feeling that the US gov will print more money to bail out any large business. Jamie Dimon “This is not a normal recession.”

Our national bank, the Federal Reserve has been buying the stocks and bonds of struggling companies in this crisis. This means we, the taxpayers of a ‘capitalist’ country, are now the owners of these businesses (socialism) without any say in how poorly they are run. Investors have confidence because large companies are too big to fail. In the past if almost every retail firm was closed or severely limited in sales revenue, with millions of workers not working, the economy would be in recession or depression. Almost every store in my neighborhood has been closed or limited in traffic. Almost every family with kids has been home or working from home so we only go out for food. Yet Wall Street booms on concentrated wealth and more national borrowings. How much of American business can we afford to buy? Who will pay off our debts?

Avoid paying for the wealthy Socialism: https://www.amazon.com/Americas-Socialism-for-Rich-little-people-pay/dp/1535218584

Your 401k balance is what?

Where are you compared to others by age, income, gender, industry? Don’t look at the average since one wealthy person with $ millions can demoralize all the rest. That person probably owned a company and added their lifetime profits to their 401k rollover. Not a fair comparison. For instance, the median 401(k) balance is $22,217. But a better indicator of what the majority of Americans have saved for retirement is by age.

Age Average 401(k) balance Median 401(k) balance

Under 25 $4,236 $1,427

25 to 34 $21,970 $8,126

35 to 44 $61,238 $22,123

45 to 54 $115,497 $40,243

55 to 64 $171,623 $61,738

65 and up $192,887 $58,035

However, a 44 year old earning minimum age is probably not going to have $22,123 in their account. You must compare income and gender to take a more realistic measure of your progress. In most cases, adding an additional 2-3% of salary a year will help because of compounding. That is the factor that helps you end up with more money without more contributions. In a stock fund, that can add another 50% to your total. Another 50% can be added by choosing a low-cost stock index fund. Check your fund costs: https://www.finra.org/investors/tools-and-calculators/using-finra-fund-analyzer. Your advisor can’t control the markets. Cost is the only factor you can control after the amount of our contribution. Over time a lower annual cost can add 50% or more.

Tune up your 401k: https://www.amazon.com/Tune-your-401k-EARN-Tax-FREE/dp/1490591028

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

Like 1776, this period is a test of democracy—do we really want ‘low-IQ’ Mobster?

Fascism: masked paramilitary occupy Portland…

USA

Unidentified paramilitary beat Navy vet Trump’s SS?

Fascism: Paramilitary troops sent to our cities: Chicago next

PA DA: we have an “authoritarian dictator."

Mobster: ‘I can let pandemic kill more and still win election’ 145,000 +

Our Child Abuse: children as young as 1 held in hotels for weeks

How Govt wastes our money: Congress gives 3.7 Trillion to the wealthy!

Wealthy got virus money as ‘loans’ and now Treasury wants them to keep tax money.

Arete Financial, Ponzi scheme in fake student loan biz gets $1 million virus money

IRS delays paper return refunds: staff cuts delay enforcement too

IRS Limits Taxation of Foreign Income: wealthy entirely defer liability on GILTI income

Now that the wealthy have virus money & huge tax breaks the GOP wants to cut relief $s

Payroll tax cut only helps employed: 50 million unemployed: Did Trump pass cognitive test?

New ways wealthy avoid taxes before taxes go up: combine investments and gifts

FL teachers sue gov to stop mandated in-school return: violates safe ed. constitution

SCAMS/SPINS:

Some states see rising infection rates due to reopening euphoria and outdoor activity spike

Eviction spike in 2 weeks feared by HALF of unemployed as support ends: Congress on vacation

Ivanka and Don don’t actually eat Goya beans but need the voters who do: crude propaganda

Trump ‘comfortable’ send son/grandchildren to school but they don’t go to DC public schools

Trump’s mob does follow science out of TV view: masks, tracing, tests: just not for Americans.

Trump cancels GOP convention: reality of death gets closer to GOP: stupid but not fools

Trump happy talk not cut it: GOP finds virus, no jobs, no healthcare, no hope—reality at home

If we “cut testing money, virus cases go away by themselves”: Trump strategy for election?

Sheriff of Jacksonville FL: we can't keep the Republican National Convention safe.

TX allows new virus spikes in religious schools: they can ignore virus containment strategy

52% of cases to date in LA County have been people under 41. Young avoid warnings.

We pay $20 for vaccine but most of us won’t receive it: wealthy and pols first

Crazy GOP blames Dems for 1965 attack on John Lewis: Dems ruled South then so elect Trump?

Trump cuts anti-segregation housing rules: towns left to segregate; Make America White Again

No medical prices to negotiate: we can’t bargain lower hospital prices if prices are hidden

Luke John Flint KY caught pre-registering for a non-existent COVID-19 vaccine $100 Bitcoin

Neiman Marcus executives seek $10 million in bonuses for bankrupting: stockholders outraged

UBS diverts best muni bonds from customers to wholesalers for profit

Michael Barry Carter stole $6 million from Morgan Stanley clients: 12 years of fake statements.

Certified Forensic Loan Auditor, Lehman caught advance fees, abuse mortgage relief services

Charles Kulch MA caught unsuitable illiquid high-risk, high-commission REIT investments.

David Hu, IIG caught Ponzi scheme selling fake trade finance loans $60 million

No hassle home buyout: scammers offer immediate cash for your home: legal but big loss

State Farm caught in suit over underpayments made to 65,000 policyholders.

NRA Must Face ‘Murder Insurance’ Regulatory Hearing: coverage if NRA member kills

Is it a scam? Check AARP scamline 877.908.3360.

Jobs

Why not fix bridges, roads, schools, etc for 50 million need paychecks?

Winn-Dixie remains firm: No masks. Employees avoid customers or quit. Two

Americas

Lowe’s requires masks for shoppers but won’t enforce it so workers don’t get hurt.

Lobbyists tell Congress to exempt biz from virus lawsuits: workers/customers be d****d.

Ann Taylor, Lane Bryant, Catherine, Justice, LouGrey close some stores: execs get $5.5 millions

After Great Depression, unemployment remained above 14% to 1940. It took New Deal & WWII

Who owns your account now?

Buying a home: research the whole deal before making the deal: virus strategy

Owe IRS but can’t pay? Ask for a plan before legal action: https://www.irs.gov/payments

How to start saving money: Make Smart Decisions: Free 4 week course Berkeley CA

Free money: your PPP loan can be forgiven—easy https://www.pppforgivenesstool.com/

Miracle:

TX schools go online only: virus pandemic serious; GA gov fights to keep masks OFF

Retail stores lead fight with mask requirement: can GA shut stores that require masks?

Positive news on the virus from scientists: will Washington listen and fund real progress?

US broke single-day record new cases at least NINE 9 times in a month: getting worse!

New treatment for Fragile X syndrome a marker for autism: reduces hyperactivity

Heparin may decoy coronavirus and can keep it from making you sick

Asteroid hit Earth killed 75% of life: volcanic eruption may have warmed Earth for life

Kanye West is looking for empathy/sympathy for rants/running for President

Trump: $20 million ready for court fight over election results: already got Supremes set

Virginia: Robert E. Lee High School set to be renamed to John R. Lewis High School.

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts

Friday, October 26, 2018

Tax-FREE retirement is winning 'lottery'

Tax-FREE Roth 401k or Roth IRA?

If you are lucky enough to have the Roth 401k offered by your employer, you must understand the pros and cons of both Roth accounts. In both, you never pay tax on your retirement accumulations. So if you can aggressively fund your Roth 401k, you could easily reach $1 million tax free because your $100,000 total contributions over time can COMPOUND at 10% by age 67. If you can invest just $9 a day, $250 a month, you can still have $1 million tax free at age 67, you just have to start earlier. If you can’t do a Roth IRA because of limits, try a ‘back-door’ Roth. COMPOUNDING at the long-term stock market rate of 10% means your money doubles every 8-10 years. Look at the https://www.bankrate.com/calculators/retirement/roi-calculator.aspx. Most of your tax-free balance will be accumulated capital, not contributions: FREE MONEY.

Pay tax now or much more tax later: https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938

Winning the $1 million ‘lottery’

$1 million tax free. You can spend it all—no taxes. Usually you must pay HALF your winnings to fed and state gov. $1 million can provide over $100,000 per year for life. Everyone who plays this ‘lottery’ will win. This $1 million lottery is not awarded every week. You must wait. Each week you buy $9 worth of ‘chances.’ You don’t win every week or month but you WILL win eventually. This lottery is a sure thing eventually because you actually are buying a piece of the profits of many successful companies. Some companies make a profit every year and some make a huge profit some years. Over time the ‘chances’ you buy get more valuable. Think about all those tickets of your past losses in the drawer. They are worthless because you did not win and every week you will lose—almost guaranteed. Thank god, you have a better chance of being hit by ‘lightning’ than winning any week. This lottery is not a lottery but a sure way to own $ million worth of all the companies you buy things from—groceries, electronics, toilet paper, electricity, cars, everything. You own Apple, Google, Microsoft, J&J, Facebook, Exxon, Morgan Chase, Disney, and more. The value of your ‘chances’ go up and the profits the companies pay buy more ‘chances’. Buy from the largest ‘chance’ seller.

Buy the lottery that you WIN: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

Are songs royalty streams right for you?
For those who have a crystal ball, buying the right to receive music royalties might be the alternative investment you have been looking for. Winning bidders typically get royalty payments on a quarterly basis, with a rate of return Royalty Exchange says is often in the double digits. The longevity of the royalty rights varies. Some royalty rights are limited to 10 years, while some offers include copyright ownership, which means the payments can last for decades. Some investors think royalties can never end. Royalty Exchange, the middleperson, launches three to five new auctions every week. Songwriters have a tax incentive for selling. Under the law, the money songwriters make from selling all or parts of their catalogs is treated as capital gains, taxed at 0, 15, or 20%. Royalty revenues, meanwhile, are treated as ordinary income, taxed as high as 39.6%. "There are people whose only real assets are their royalties," he said. "Their financial security is based around how they leverage those things."

There are better ways to receive income: https://www.amazon.com/Your-Retirement-Portfolio-Tax-FREE-Income/dp/1483994090

Does your broker/advisor live in these states?

Connecticut, Nevada, New Jersey, New York, and other states have passed laws or proposed regulations that mirror some of the federal rule's requirements to treat you with respect. Even though Trump cancelled the Fiduciary Rule—you receive advice/product that is BEST for you not for the institution—these states have or will protect you from outrageous commissions and fees, inappropriate products, and misleading information. Obama said without this law, you and I could give up thousands of dollars when we moved our retirement money (401k, 403b, IRA, pensions). My industry (financial: http://dankeppel.blogspot.com/) can’t make $millions and $millions by giving you advise without putting our own high-cost products in front of you. In fact, most advisors and their firms don’t even carry the best products for you because they must make money to survive. Everything has changed in the last decade: discount brokerage, discount mutual funds, discount insurance, etc. My friends and I have left the old industry model.

Time you started saving: https://www.amazon.com/Tricks-Trade-Mutual-Insurance-Annuities/dp/1535497289

Vital steps to buy a house

Don’t even look for a house before you understand the process. No use frustrating your family if it can’t happen now. Offerings and loan rates change daily. First, check your credit scores at www.myfico.com and errors at www.annualcreditreport.com. Check rates on trial amounts at your bank and then shop around at www.bankrate.com and https://www.quickenloans.com. I used them—very fast and efficient. Big banks have 10 plus people handling your loan and it takes 3 times longer. Second, find out ‘how much can you borrow?’ The final answer depends on your income and the lender, but usually it is monthly costs (mortgage, insurance, and property taxes) can’t exceed 28% of your gross monthly income. Fannie Mae increased its maximum DTI ratio to 50 percent, up from 45 percent, in July 2017. Third, the standard down payment is 20% but you may find exceptions: Federal Housing Administration or the Veteran’s Administration. Fourth, your lender may want you to pay down debt or temporarily reduce spending. If your family helps with the down payment, let it ‘age’ in your account for a few months. Now you know what houses you can afford and can ‘lock in’ a rate/terms. I used www.realtor.com and found a 2 family to help me pay for the mortgage. Timing is everything. Get your loan approved BEFORE you shop so you can pounce.

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

Is tax lien investing right for you?

Risk you must understand for this kind of game of chance. When a property owner fails to pay property taxes, the municipality in which the property is located can sell its tax lien — the right to foreclose on a property when the owner has failed to pay taxes. So you can force payment plus costs plus profit by threatening to take your neighbor’s house away and sell it. Most tax liens purchased at auction are sold at rates between 3% and 7%. If the owner does not pay you, you get to foreclose which can cost over $10,000. “It’s complicated. You have to understand the details,” according to an observer. Each state is different, so buying and collecting on a lien is how amateurs fail. Compare alternative assets like owning diversified real estate funds: REITs.

Mandate to have health insurance still exists

If you have been without insurance this year because you heard Trump cancelled the mandate, surprise—the mandate penalty is subtracted from your refund unless you qualify for various exceptions. So if you are not owed a refund for 2018, there will never be any consequences for not paying the penalty tax. Trump won’t collect it now. Trump has dismissed comprehensive coverage in his special ‘short-term’ policies. He has made buying coverage without protections easier so that he can claim his plans are “cheaper and better.” Trump does not understand—he has always had it. It is not magic—his plans do NOT cover pre-existing conditions and have payout limits. You may be denied or cancelled. You may have premium increases. Most Americans like ACA now that they have it. If you are lucky, you live in a state that maintains the guarantees of ACA. Before ACA you could buy cheap policies—they were junk and didn’t cover you when you needed it. You can’t buy insurance after you get sick or have an accident. Like car and home insurance, it is a way to share the risk of a huge loss. You pay premiums all your life for a catastrophe you hope won’t happen. The alternative is bankruptcy or destitution.

You need full coverage: Trump has it, why not us?: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

Consumer Reports: Most reliable vehicles

Your vehicle ratings by brand are not unusual but look closer at all brands for the type—SUVs popular still (even Porsche has one??). Some specific models were dropped from the CR list altogether. Biggest ranking drop: Honda, Chrysler, Volvo, and Tesla. Volvo is now Greely (Chinese), Chrysler is now Fiat and Tesla is still working out the kinks. Vehicles are now mobile entertainment units not transportation. If you need quality reliable transportation not TV screen gadgets, go for a 3 year old thoroughbred like 2016 Lexus or Toyota from $12,500 to $30,000.

Save with coverage discounts too: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

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Make

~~America~~

, “The Don”, Great Again

Senile Psychosis

Two

Americas

: A Banana Republic? Do we really want an infant king? Daddy Putin!

McGahn is ‘lodestar’: Told Trump ‘NO’ - saved Mueller!

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How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!