Your Wealth Reserve: TX adoptions

Showing posts with label TX adoptions. Show all posts

Friday, September 24, 2021

Is a “structured note” right for you?

The only advice you need for financial success

I managed financial sales programs in brokerage and banking firms as well as my own company. I learned that we made things complicated so that we could take commissions and fees from product buyers that were not the best for most folks. Yes, there are special circumstances for special costly products but 98% of people don’t need them. For instance, most people waste money purchasing whole or universal life insurance with a savings component. In like manner, high-cost mutual funds and packaged products are a waste of money for most folks. Advisors won’t tell you this but Mr Buffett will. He does not need your fees. Sales people only make money with products that cost you more: end result, you earn less than you would have if you followed unbiased advice. Advisors don’t sell unique financial best buys that are tailored just for you. They can’t. Their firms would be out of business. Warren Buffett gave us the simple best advice: buy and hold low-cost Vanguard funds. He proved it by betting $1 million his choice would beat the top hedge fund options. It is time and compounding that makes you rich.

Use the best: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

Buy life insurance when you don’t need it

Most of us don’t buy life insurance until we have someone to protect. This is not always the best strategy but it is reasonable. I bought life insurance with a saving component (Universal life) when my wife and I had a baby. I gave it up 10 years later as soon as I discovered I could save a huge expense by buying term and investing in a mutual fund earning over 12% per year. Instead of paying $250 a month for enough coverage to protect my family, I could buy $1million for about $21 a month. By the time our child left home, I did not need coverage at all (term gets expensive after age 55). I put the $250 a month into a broad market stock fund. If I had purchased the fund and term life 10 years earlier I would have had my $2 million retirement fund earlier. I could have retired earlier. I would never need the $250,000 life policy.

https://www.amazon.com/New-Tax-Free-American-Retirement-System-Reserve/dp/1461030072

Stock buying sale!

Do you really think that the US will default on its debt? Do you own China real estate for a loss? Will the economy collapse when our government (the Fed) stops propping up capitalism by selling the corporate bonds it bought in 2020? Wall Street selling on Monday despite economic growth seems just a fake news story to generate activity and revenue. Where else can investors go—bonds pay 1.3%? My September BUY light went on. Bits fell but if you own virtual money you already are prepared for speculative swings. The real economy is humming along very well—17+%. You have heard the line about ‘taxing the rich’ before and yet we are well on our way to the most unequal Robber Barron period in the history of the world. At this point, the Dems couldn’t pass a ham sandwich. Facts are clear: Bezos, Musk, and Icahn managed to pay virtually no federal income taxes at all while breaking no laws. Like the former reality TV star, they have discovered enough cracks in our system to leave the IRS impotent. They just moved their assets to places where the US can’t tax them. Since that won’t change soon enough, you should do the smart thing so you don’t get charged for their taxes.

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

Is a “structured note” right for you?

Up side and down side are not clear in advance. In theory you would enjoy upside potential growth with low down-side risk. However, the truth is in the details. Call risk, lack of liquidity, and inaccurate pricing are other disadvantages of structured notes. A five-year bond with an options contract is an example of one kind of structured note. Your advisor will claim a SN gives you diversification but you have better options. Check the issuer for yourself since the seller may not share the risks with you. You may have trouble unloading a SN if you need cash fast. The issuer can end your contract anytime. Remember, no one gets paid to give you a great deal.

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

Are you using your retirement funds too fast?

Without the guaranteed income stream that a pension provides, baby boomers may run a higher risk of outliving their retirement savings, known as longevity risk. In fact, according to a new survey by Siliciano and Wettstein found that retirees with pensions (defined benefits) had slower drawdown rates than those without fixed payouts. The survey compared the drawdown speed of retirees, both with and without access to DB plans, at age 70, 75 and 80. At all three ages, retirees with DB plans had slower drawdown rates. The researchers concluded that baby boomers who base their forecasts on the drawdown speeds of past generations “likely underestimate” the speed at which they’ll go through their retirement savings. On the other hand, some retirees spend more early in retirement (traveling while they still can) and assume they will need less when they are older. A one-time fee financial planner can help customize a plan for your needs.

Plan ahead: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

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

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

Our Jan 6 ‘Truth and Reconciliation Commission

Trump ideologue Bannon planned failed Coup

Generals feared Trump refusal to give up power

General regrets being used: “Trump military display”

How Govt wastes our money:

Gov admits they kill 10 Afghans not terrorists bombs: drone driver can’t ‘see’ family

GOP helps kill over 690,000 of us, beating 1918 flu record: Will your kids be next?

The $28 trillion national debt rose $7.8 trillion (40%) Trump/GOP tax breaks for the rich.

FBI assisted hackers cost business schools hospitals $ millions: ransomware key withheld

Congress can’t reform police: killing beating continues with impunity shoot/taze OK

TX parks cars near river ‘steel wall’: but immigrants can walk around: state workers walk

SCAMS/SPINS:

Trump terrorists threaten reps who voted to impeach: “toxic dynamics” against family!

Capitol Police recorded 4,135 threats against Congress: domestic terror empties Capitol

McConnell: Republicans will not vote to increase the authority to borrow: bankrupt US

Thomas: Supremes’ politics ‘destroying our institutions’

Southern Baptists have hundreds sex abuse cases like Catholics: perps remain out of jail

TX adopt more babies: Birth choice shifts to Christian Nationalism’s cradle to grave care

TX doctor: 'I had a duty of care': we can’t let pre-Roe bad abortion deaths happen again

125 IU Health workers lost their jobs due to COVID-19 vaccine requirements.

27% of health care workers have not been vaccinated: carriers make patients sicker

Anti-vaxxers send kids home from schools; teachers quit; hospitalizations jump; kids hurt

Anti-vaxxers won’t be around to vote Biden out in 2024: no MISS ICU beds left

Fox: 54% favor proof of vaccination in indoor spaces like restaurants and gyms

LA getting control of Covid hospitalizations: masks and vax work

Covid victims billed for care at full hospital prices: end to gov help, insurers want profits

TX anti-mask really aggressive: kick couple out and punch hostess in NYC: Civil War II

Unruly unmasked air passengers should be given a parachute and pushed out the door

North Carolina judges cancel voter ID law: right to vote “not be denied or abridged by … State”

Daryl Bank FL caught selling unregistered securities fraud $25 million ‘safe returns’ 35 years jail

Credit Repair Cloud Daniel Rosen caught helping firms charge unlawful fees for credit repair

It is so easy to make a fake; teens learn how to tell the real thing

Fake diabetes cures and claims by drug firms: will FDA letters stop greed? Bamboo cure?

FTC Complaint Against New Balance for Misleading ‘Made in USA’ Claims

42% of Texans would vote to make Bitcoin an official currency.

Nursing homes with worst record of care: average cost semi private room $7,441 /month

Food prices jump 40-50%: 14.25oz can green beans $.50 to $.69 in one week NJ store

Boy Scouts to pay $10,000 for each sex abuse case: all adults get off free of liability/jail

CA running out of water and wealthy keep watering

Car gadgets make us dangerous: no focus even for a second may kill

How to Avoid Being Scammed on Facebook Marketplace

Avoid home buying errors: a little plan saves $ thousands

Jobs

Retiree work for love or money

Alaska needs 500 health care workers for stretched hospitals

Who owns your account now?

Chrysler had over 250 problems according to new car survey: Audi,VW,Acura over 200!

Insurer to use robot and drones to settle our big claims: can you talk robot?

Tenant screening: personal details used in secret algorithms to rate you as tenant.

Fed rate hikes in ’21-’22: credit cards, mortgages, auto loans go up: pay down this year

Miracles:

Anti-vaxxers flying on plane sitting right next to you: no vax mandate for Covid carriers

Trump sues reporters who claim he’s not self-made $billionaire: $413 million from Dad

Free media streaming: movies, ebooks, TV, etc

Columbus did NOT discover America: 22,000 years old footprints NM kids did

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/

Friday, September 17, 2021

Why do actual investors earn less than their benchmarks?

A recent study found that, while certain mutual funds and ETFs delivered a 9.4% average annual total return for the past decade, the average investor in these funds got only 7.7% due to poorly timed trading activity. This really hurts those who are investing for a big goal like house down payment or retirement or business start up. Over time, a $250 a month investment would reach $1.3 million WITHOUT the trading activity. Timing the markets would result in total accumulation of only $805,605—a loss of $494,395. In another study, Fidelity found that its accounts that did the best were those for which the owners forgot about them. Investing is simple to be successful but not easy. Gambling is hard to be successful but easy to do. Successful investors have 3 ‘pots’ of money: Patience for the long-term goals and impatience for the short-term get-rich-quick schemes. The third pot pays for living expenses.

Go simple: https://www.amazon.com/Keep-Simple-Essential-Financial-Life/dp/1492258849

What is the single most important reason for financial failure?

You are right; it is debt. If we had no debt, especially interest debt that can NOT be deducted, we could easily reach our long-term goals. We have credit card debt, mortgage debt and car debt. We borrow an average $34,635 for new vehicles and $21,438 for used vehicles. The average loan term is 70 months for new cars, 65 months for used cars and 37 months for leased vehicles. The average monthly payments for new, used and leased vehicles is $563, $397, $450. And this is an era of low interest rates. Interest is NOT deductible unless your company leases your car. So how is financial failure defined? How much do we lose with our vehicle loans? Investing $563 for 70 months could yield $59,541. Investing instead of buying on time provides enough money to buy a vehicle outright. This is why the wealthy pay cash for their rides. Their cash is special: their cash is compounded cash. They earn the money we pay on debt. We pay 9.46% they earn 9%.

Earn interest; don’t pay interest: https://www.amazon.com/Compounded-Cash-Save-your-Self-Funded/dp/1515066096

Most Americans are paying more taxes than US corporations pay

In fact many large profitable companies have Negative tax rates—taking our money as a refund. Most tech companies, including Oracle, Adobe and Microsoft are still paying much less by using an accounting trick to report profits outside the US. Many large profitable firms like Wells Fargo, Salesforce, AbbVie, Duke Energy, Adobe, Broadcom, IBM, Medtronic, and GE have a negative rate—We actually give them our tax payments. The rest pay lower rates than we do: NVIDIA, NextEra Energy, Bank of America, Pfizer, and Texas Instruments pay the lowest rates. The average overall company tax rate is only 19.7%. Our average is 32.9% including Fed, state, SS, Medicare, sales and gas taxes. This does not include property tax which some of us pay. We don’t receive a state subsidy like the $3 billion state subsidy that Foxconn got in 2018. Some call government-supported corporate tax refunds and grants US socialism.

Avoid paying their taxes: https://www.amazon.com/New-American-Retirement-System-ReserveTaxFree/dp/1461030072

Insurers may be overcharging you for coverage

Insurers use our credit scores and history to set premiums for car, home and rent insurance. Other service providers (rental agent, mortgage and auto loan) may use credit scores to set their charges. The CARES Act placed a temporary hold on reporting negative credit information to bureaus that collect credit history. When the hold is lifted, you may get whacked with increases in everything if the pandemic has disrupted your life. Some insurers recognize that the pandemic has had a disproportionate impact on the credit scores of some racial and income groups. Some are making it their business model to switch to a usage-based approach. Insurer Root’s usage-based approach can define a new industry approach that ties driving risk directly to driving habits rather than proxies. Thus drivers who speed, text and cause accidents may have a lower premium than safe drivers who have filed bankruptcy due to a medical catastrophe. Thus some insurers may offer you a better deal but unless you shop every 2 years you won’t know. And don’t forget to check for excessive car repair problems before you buy again.

Shop and save: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

What is your plan for your next financial stress?

Most of us have no plan to deal with a financial emergency. A plan BEFORE a crisis while in retirement would provide us with peace of mind—one of the most important goals we have. I hear about folks that are overwhelmed by a medical expense event, a family member money request, and a huge loss in retirement savings. In a recent survey, the most common answers given by folks age 40-73 were ask family and friends, children, church/state agencies, work and downsize to live on SS benefits. These are desperation measures, not a plan. My experience with folks who made a plan shows that building an emergency fund of HALF a year’s expenses works best. These folks kept that emergency money in a balanced fund like Vanguard’s Wellesley Income not a bank: they earn 7% not 1%. First, you feel better. Second, the money gives you time to figure out what to do. Third, the crisis may be over in a year. Make a plan using the tools that are available online for FREE.

https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

How to protect your retirement funds and keep them growing

The best protection is not putting your money in bank products, money market funds, an annuity, or bonds. These are the vehicles I see folks using because their advisors told them to “protect” savings in “safe” accounts. However, as inflation rises, they will lose buying power—probably for a long time to come. Unless you know you will die in a couple of years, fixed return investments will starve you to death. All of the traditional “safe” places are providing Wall Street with great revenue. However, these places don’t help you. Over the next 30 years, you could be giving away HALF your potential nest egg. The best way to protect your funds is to grow them—the best defense is a great offense. Growth and security come from a combination of stocks, bonds and real estate holdings. Over time, your nest egg will continue to grow with stocks while bonds and real estate provide stability. A low cost balanced fund provides steady total returns of over 7%. For instance, Vanguard’s Wellesley Income Fund has provided 40 years of solid returns over 7% on average. Retirement income is thus a combination of interest and dividends. As part of the Vanguard Top Ten funds, investors shift more of their assets to this fund as they progress in retirement.

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

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

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

Our Jan 6 ‘Truth and Reconciliation Commission’

9/11 Bush warns of “domestic terrorism”

Will “domestic terrorists” install Trump Sat?

Generals planned to stop Trump from starting WWIII

How Govt wastes our money:

GOP requires gov ID to vote and drive but requires no Covid vax card to touch kids

Your freedom; their deaths: Anti-vax anti-mask Christians killing babies with Covid plague

Saudis caught helping terrorists kill us: why we still giving them weapons/intelligence?

Lindsey wants to re-invade Afghanistan but he won’t be leading the charge: sending kids