New Year smart money moves

No more money mistakes: New Year smart money moves

Since you don’t want to make any more mistakes, you first need to know the score—your credit score and report. Go tohttps://www.annualcreditreport.com/index.action for your truly free report. You can obtain your FICA credit score FREE fromhttp://www.freeficoscore.com/ during the 10-day FREE trial but you must call to cancel in two weeks. Get score and then cancel immediately or it will cost you more than it’s worth. Check your reports for accuracy (80% are wrong) and correct them. Learn how to avoid the mistakes that lead to financial disaster: http://www.amazon.com/10-Worst-Money-Mistakes-them/dp/1494401223/

Most married couples will need income to age 90

According to Social Security, at least one member will make it to age 90. One in four seniors will hit 90 and one in 10 will break 95. Are you ready? Make your income tax-FREE so it will last longer: http://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976/

Our readers’ choice funds maintain long-term average 10-12% return

2013 total return was over 30%. It raised their average to 12% again. Some of our readers never sell. They are rewarded for long-term growth and diversification. Retirees move assets to Wellesley Income fund for safety. Most readers pay less than 0.40% for high returns in index and managed Vanguard funds. It is possible to have enough for a retirement of 30 years. Most advisors, charging 1-3%, have promised single-digit returns from now on. Do-it-yourselfers do better. Simple: high costs reduce your returns.

2013 Total Return       Fund                Long-term Return*       Longevity

32.3%                          500 Index        11.0%*                        since 1976

18.4%                          Energy             13.2%                          since 1984

38.4%              Extended Market         11.2%                          since 1987

43.2%                          Health              17.1%                          since 1984

23.0%              International Growth   11.2%                          since 1981

39.7%                          PRIMECAP     13.7%                          since 1984

37.6%              Small Cap Index          10.9%                          since 1960

  9.2%              Wellesley Income        10.1%                          since 1970

36.1%                          Windsor          11.6%                          since 1958

30.7%                          Windsor II       11.1%                          since 1985

30.9%                          Average           12.1%

*Average Annual Returns as of 12/31/13.

Wealthy people don’t pay their fair share of taxes—and Congress allows tax trick

Rent-a-tax-shelter “address.” In the past four years, the amount of money administered by South Dakota trust companies like these has tripled to $121 billion, almost all of it from out of state. The families needn’t actually move to South Dakota, or deposit their money at a local bank, or even touch down in the private jet. Little more than renting an address in Sioux Falls is required to take advantage of South Dakota’s tax-friendly trust laws.
States like South Dakota are “creating laws that are conducive to a massive exploitation of a federal tax loophole,” said Edward McCaffery, a professor at the University of Southern California’s Gould School of Law. Bankers estimate that one-quarter of their business comes from special vehicles known as “dynasty trusts,” which are designed to avoid the federal estate tax forever. Thatdefies the spirit of the estate tax, enacted almost 100 years ago to discourage the perpetuation of dynastic wealth.

Still others are drawn to South Dakota’s iron-clad secrecy and protections of trust assets from creditors and ex-wives. Obama has called for closing the dynasty trust loophole in annual budget proposals but Congress has not.

Study says we are not prepared for next financial crisis—Why?
Turf wars and big money lobbyists make preparation difficult. America runs on business exuberance and boom-bust is part of business system.

http://www.reuters.com/article/2013/12/22/us-financial-regulation-ofr-insight-idUSBRE9BL04Y20131222

Most GOP reject evolution science—House "science" committee rejects science

33 percent of Americans reject the idea of evolution, saying that "humans and other living things have existed in their present form since the beginning of time," a new study says. "The gap is coming from the Republicans, where fewer are now saying that humans have evolved over time," said Cary Funk, a Pew senior researcher who conducted the analysis. The poll showed 43 percent of Republicans and 67 percent of Democrats say humans have evolved over time, compared with 54 percent and 64 percent respectively four years ago.

America split in two over facts? Is world flat? Did aliens build pyramids? Most aren't sure!

Apple says it never helped NSA bug our phones

Apple said in an email to AFP that it "has never worked with the NSA to create a backdoor in any of our products, including iPhone. Sure.

Uninsured will be covered

Nearly 6 million people are newly insured -- 2.1 million privately insured and 4 million in government insurance plans -- U.S. health officials said. Buy only what you need: http://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

One Supreme says OK to keep the “pill” away from the nuns

Supreme Court Justice Sonia Sotomayor has offered a reprieve to some Catholic groups who want to opt out of the Affordable Care Act's contraceptive mandate. In her order, Sotomayor said the government is temporarily prevented from enforcing contraceptive coverage requirements against the Denver-based Little Sisters of the Poor Home for the Aged.http://www.littlesistersofthepoordenver.org/

“The president believes that no one, including the government or for-profit corporations, should be able to dictate those decisions to women,” Jay Carney, the White House press secretary, said last month. Church groups were already exempted from the mandate.

But I thought that the nuns took vows about this kind of activity?

SCAMS           “Deficits don’t matter” Republican Godfather, Dick Cheney, 2002

Bush wars increased the debt by $4-6 trillion to $16 trillion. 1985 debt $3 T, same as 1945.

Financial crimes scorecard

Only 7 of 31 corporate executives have returned their ill-gotten gains from the financial meltdown of 2007-08. Most have proved that crime pays—especially big-time crime.

If we had done what they did you would have been in jail for 25 years.

Our Taxes Wasted on a $120,000,000 Parking Center

GOP Coburn admits he and his colleagues wasted $30 Billion this year. Read and weep.

http://www.coburn.senate.gov/public//index.cfm?a=Files.Serve&File_id=d204730e-4a24-4711-b1db-99bb6c29d4b6 Yet not one red cent for the unemployed!

Our taxes saved Chrysler for FIAT to take

U.S. automaker Chrysler will become fully owned by Italy's Fiat under terms of an agreement announced Wednesday that also involves the United Auto Workers union. It cost us $1.3 Billion in taxes to dump Chrysler on FIAT.http://money.cnn.com/2011/07/21/autos/chrysler_government_exit/

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Show your child how Warren Buffett invest $100

Where can your child invest $100 now? Show your child how Warren Buffett invests

*Teach your child to invest the Buffett way.

*Success with money starts early.

*Compounding over time assures your child of security.

You have a great opportunity to teach your child how to become successful with money. They can learn to take care of themselves and even become wealthy from your guidance TODAY. Warren started with his paper route money and now has $60 billions.

      Only $9.95 by Law Steeple, author, The Miracle of Compounding

http://www.amazon.com/Where-can-your-child-invest/dp/1492164240/

 Annuity you inherited just got better!

The IRS released a Private Letter Ruling (PLR 201330016) that enables the beneficiary of an inherited annuity to use a tax-free Section 1035 exchange to move the funds to a new insurer’s annuity that better reflects the beneficiary's needs and investment objectives: Annuity Laddering: Inflation-proof Retirement Income  http://www.amazon.com/books/dp/1484849663

Obama formula working

The U.S. trade deficit shrank sharply in June as U.S. exports reached an all-time monthly record high. The gap is the smallest since October 2009. The Congressional Budget Office forecasts that the deficit could drop to 4% of GDP for the fiscal year ending 30 September. Deficit was cut in HALF from Bush high of 10% of GDP in 2009.

ObamaCare subsidies help HALF insured pay for coverage

About half the people who now buy their own health insurance — and potentially would face higher premiums next year under President Barack Obama's health care law — would qualify for federal tax credits to offset rate shock, according to a new private study. People can enroll starting Oct. 1, and coverage becomes effective Jan. 1. Most people currently covered by employer plans are not affected. Policyholders' annual out-of-pocket costs will be capped. Insurers will have to cover people with pre-existing medical conditions, whose needs are costlier to provide for. Policies must provide certain standard benefits, including prescription drugs, mental health and substance abuse treatment and rehabilitative services. Buy only what you need and save: http://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

Cell phone just got more expensive: CELL TAX 

Look for a new tax on your monthly cell phone bill to pay for a plan to put WiFi in more classrooms. What happened to the 3Rs?

Fee-for-advice broker decides to push own products

Edward Jones plans to start selling proprietary investment products in a sharp break from the past. Jones use of proprietary funds is contrary to its long-stated message to its financial advisers to rely not on proprietary products but instead on a cadre of outside money managers. Independent investment advisers routinely touted the absence of proprietary products from their platforms as being in the best interests of clients. Now that competitive difference is gone. Better results with low-cost funds WITHOUT Wall Street: http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137

Insurer pays you to eat right!?

Independent Health wants you to eat more fruit and vegetables and is making it worth your while. The insurance carrier is teaming up with Tops Friendly Markets on a rewards benefit that offers its members money back every time they buy fresh produce at the supermarket chain. For every $2 that eligible Independent Health members spend, they'll earn $1 to spend later at Tops grocery stores, an incentive intended to spur people to eat more carrots and broccoli and fewer pork rinds and doughnuts. BlueCross BlueShield of Western New York doesn't have a supermarket-based, money-back program, but it does have a "robust discount program" that covers health, wellness and fitness programs.

Employers cut spouse health coverage

A growing number of companies are looking to clamp down on rising health care costs by dumping coverage for their employees' working spouses. Others are requiring their workers to pay extra money to cover a spouse who could get health insurance elsewhere. And some may even consider making employees pay the full cost of insuring their children. Denying coverage for a working spouse who has access to other health insurance is an extreme example of how companies are trying cut costs, experts said. But many others, such as PNC Bank, are imposing a surcharge on their employees' spouses. http://triblive.com/news/adminpage/4540022-74/health-spouses-costs#axzz2cne7pz2t

SCAMS           “Deficits don’t matter” Republican godfather, Dick Cheney, 2002

Welfare for the rich

Our “representatives” support their friends’ tax loopholes in secret. Taxpayers, who pay for them, are not allowed to see who supports which corporate subsidy. Loopholes are marked secret for 50 years so we can’t know who pays for whom. The real business of Washington is to stay hidden. Sen. Baucus and Hatch are assembling this list of loopholes for the Senate. This is not a democracy. How can we judge these people if we don’t know what they are doing to get elected? Who is paying them for subsidies and loopholes?

White-collar crime: Hide $6.2 billion and don’t even get charged! 

Two former JPMorgan Chase employees are facing criminal charges related to the trading scandal that cost the bank $6.2 billion last year, but the trader who earned the nickname "the London Whale" and was at first most closely tied to the scandal is not one of them. 

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Wealth: What Every Student Needs to Know iTunes $3.99

Wealth: What Every High School Student Needs to Know NOW at iTunes $3.99

Use a simple tax-FREE account called a Wealth Reserve to learn how to invest for long-term growth. This Wealth Reserve can provide $160,000 annual income for life with NO income tax.
This Wealth Reserve can provide real “lifestyle” security.

This Wealth Reserve can self-insure and self-fund financial needs saving $3,000 every year.

This Wealth Reserve takes advantage of the miracle of compounding—$250 a month becomes $2,000,000 over time.
Start today! Every year you delay costs you $100,000 later. http://itunes.apple.com/us/app/wealth-what-every-high-school/id540588535?mt=8

 

NC to reduce uninsured by 64% with ObamaCare

With the implementation of health reform, the first year of the Medicaid expansion alone is expected to reduce the number of uninsured persons in North Carolina by 64 percent, said a new report from the Budget and Tax Center a project of the North Carolina.

 

America is getting older

Baby boomers will turn age 65 at a rate of nearly 8,000 per day for the next 17 years. Most couples will need income for 30 years. IRAs must be used starting at age 70.5. If they are not needed, IRAs may be converted to Roth IRA which allows all gains to be left to heirs tax FREE like life insurance. 401k income is taxed as income. Social Security benefits (up to 85%) may be taxed if other income is high. A little planning goes a long way with our Guide:   http://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

Will you have enough? Where will you invest? How much will you spend?

 

Is your advisor talking and showing variable annuity benefits again?
LPL and other firms are helping their advisors to push variable annuities since sales are down and commissions are up. LPL and others are using videos to help capture more clients’ dollars. The benefits are income and growth in the future during low interest times. Your advisor should also mention the costs and risks of these products. The SEC has warned that misleading claims can lock you into low benefits/rewards in the future:

 

RememberVariable annuities are designed to be long-term investments, to meet retirement and other long-range goals. Variable annuities are not suitable for meeting short-term goals because substantial taxes and insurance company charges may apply if you withdraw your money early. Variable annuities also involve investment risks, just as mutual funds do.

http://www.sec.gov/investor/pubs/sec-guide-to-variable-annuities.pdf

 

 

Book review Red Ink: Inside the High-Stakes Politics of the Federal Budget

How did we get to this point of owing $49,000 for each family member, up from $1,640 in 1966? Pulitzer-Prize-winning reporter David Wessel explains each party’s contribution to the mess. Who pays tax and who does not, how much goes to waste, how much is decided by 12,000 Washington lobbyists at $10,000 to $20,000 A MONTH retainer? How did corporations reduce their share from over 30% in the 1950’s to 6.6%? In 1980, 22% of all business profits were booked by firms that did not have to pay corporate taxes. In 2008, 73% of all business profits are booked by firms that don’t pay corporate taxes (yellow line in graph keeps going down).

Estate taxes account for less than 1% of revenue. Wage earners are paying 58 cents to state/local government for every $1 paid to the Feds. Why Reagan had to raise taxes 14 times and still couldn’t balance the budget. 

Is this socialism for the rich or what?

http://economix.blogs.nytimes.com/2009/10/20/federal-revenues-at-lowest-share-of-gdp-since-1950/

 

Accumulate $1,000,000 with NO taxes EVER.
+Take $6,600 monthly income FREE of income taxes in retirement.
+Avoid tax on up to 85% of your Social Security benefits.
+Turn your taxable pension or IRA into tax-FREE income.
+Use a special tax haven to protect all your earnings and gains.

+Twelve low-cost mutual funds that return 11% long-term.

Where is your sloop going? A retirement portfolio that flies. $12.95

Just published https://www.createspace.com/3948629

 

Insurers to raise price of UL life policies

Survey shows many insurers must raise the premium and lower their guarantees because of low interest rates and poor profit records. UL has a life insurance component which continues to cost less and savings component that can’t meet promises. Perhaps you should take your buildup and invest it while you switch to a lower cost term policy. You will have more later and still be covered. Life insurance is never a solid investment.

http://www.amazon.com/Drop-Your-Insurance-Dan-Keppel/dp/1448623391

 

 

GOP wants Romney to abolish interest deduction to lower his classes’ taxes

Republican platform drafters refused to put their party on record for preserving the mortgage- interest deduction, giving Mitt Romney more flexibility to promote his plan to lower tax rates paid by corporations and the wealthiest Americans without increasing the federal debt. Middle-class taxes would go up to pay for GOP tax breaks.

Who would vote for that outside the 1%ers?  http://www.sfgate.com/business/bloomberg/article/Republican-Platform-Won-t-Spare-Mortgage-Tax-3804350.php

 

 

Are commission-based accounts right for you?

Advisors are trying to switch our accounts into fee-based revenue accounts. Some are getting rich on 1-2% per annum but 72% of industry assets remain in commission-based accounts. Which is best for you? Like life, it depends on what you want to do. If you are a buy and hold investor, paying a low annual fee and no commission may be your best bet. If you like to pursue the hot products, a 1% fee may be great for hopping in and out of new trends. ETFs are popular but there are commissions to pay while an index fund of the same market may be cheaper. Learn from the insiders: Lies My Financial Advisor Told Me http://www.amazon.com/gp/product/1478281545/

 

Are your mutual funds really holding index funds (ETFs)?

Since you are paying 1-2% for a manager to pick market beating returns, would you be surprised (and angry) to find that they have put a lot of your money into index funds? It is true. Smart Money revealed that some small cap funds are actually invested mostly in the Russell 2,000 stock index ETF. Your manager may claim that they can easily sell the ETF when you and others want to cash in, but doesn’t that defeat the purpose of paying a “professional” to make the “smart” bets? Why pay extra for ETFs when you can buy the real McCoy and save the manager’s 1-2% fee plus ETF fee. The difference can be 40% of your total nest egg long term. In the last 10 years, Vanguard Small Cap Index has moved up 9.79% annually. You need your money more than your manager! Try it “neat!”  http://www.amazon.com/Wealth-Without-Wall-Street-Avoid Commissions/dp/1442168137

 

Women dissed by advisors?

According to a Boston Consulting Group survey, 73 percent of women say that they are dissatisfied with the financial services industry. Women claim they are overlooked, excluded, receive contradictory or poor advice and get worse deal terms than men.

But women are better investors than men and most know how to shop for a bargain. Stop wasting money and get better financial performance too: http://www.amazon.com/Leahs-Money-Book-control-money/dp/1448654408

 

Woman dissed by GOP

Paul Ryan, a married Roman Catholic, would overhaul women’ s health rights, Medicare, Social Security, and the health care law. He has actively fought abortion rights, government funding of family planning and insurance coverage for contraceptives. GOP platform says no abortion for rape, incest, even the death of the woman. GOP claims the sanctity of life, but not the pregnant woman’s life? Back to the coat hanger in the alley?

 http://www.nytimes.com/2012/08/22/opinion/what-the-gop-platform-represents.html

 

College student’s stuff may be covered by homeowners’

Check your policy or agent to confirm that your policy covers most of their stuff in the dorm or off-campus housing.

 

10 investments that worry regulators

Test your knowledge of the top investing scams being investigated by local regulators.

http://www.nasaa.org/3752/top-investor-threats/

 

 

SCAMS           “Only the little people pay taxes.” Leona Helmsley

 

Life Partners accused of fraud—“Gambling on death”

Accusing Waco-based Life Partners of fraud, state officials asked a state district judge in Austin on Thursday for authority to seize the life insurance settlement broker because it may run out of cash in two months. Texas claims that Life Partners sold unregistered securities and manufactured the value of the life insurance, or viatical, settlements by artificially shortening the life expectancies of those covered by the policies.

The company bought up insurance policies from elderly people, then resold fractions of the policies to investors, often promising big returns -- saying they are safer than buying gold or stocks. But some investors discovered that they had to pay premiums to keep the policies from collapsing, as people lived far longer than Life Partners predicted. Dah.

 

Congress benefits from letting lobbyists write our laws?

You have to be a millionaire to understand how the laws are written and they are.

http://thehill.com/business-a-lobbying/243625-the-hills-2012-50-wealthiest-in-congress

 

 

Who owns your account now?

Coventry Health to Aetna

 

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Build your Reserve, not your insurer's

Buy only what you need. Build your Reserve with your savings.

Do you still need life insurance?
You may be surprised to learn that many members who were paying for life insurance they no longer needed, used our Guide to drop it—saving $20,000 or more. Some purchased life insurance years ago to provide their family with income if they were not around. Others purchased the policy later to insure that their final expenses were covered. Is the reason you purchased the policy still valid? One member had saved little for retirement but kept paying for a policy for his kids. They were all successful and didn’t need the income protection. Another member had accumulated over $500,000 by age 50 and would retire with over $1million. He won’t need the $50,000 whole life coverage to pay for his cremation. Do you still need that old policy? There are many other ways to meet your needs that your agent didn’t offer (no commission): http://www.theinsidersguides.com/lifins41.html


Load or commission funds offer less return
You always have a no load fund alternative when your broker/advisor says to buy this or that mutual fund. The average annual fee is now 1.07%. Some of the best managers work for the low-cost mutual fund families. Check out what millions of other people did with their money. Would you “settle” for a well-run low-cost fund that produced 10%-12% over time? If your broker takes 5.75% of your money upfront and over 1% each year, is the long term record worth the extra you pay? Load funds may cost $1,000 a year or $30,000 over time instead of $1,500. Try no loads—you can’t get your 5.75% back but you can stop the bleeding by switching like others have. http://www.kiplinger.com/investing/funds/big20data/

BEWARE: Your money manager may receive favors that costs you money
The SEC head said these conflicts of interest raise your investing costs. In a recent letter to the chairmen of two congressional committees, Securities and Exchange Commission Chairman Christopher Cox said that soft-dollar arrangements “hurt investors.” They compromise a money manager’s fiduciary obligation “by inducing it to direct trades to broker-dealers offering research that the money manager wants,” rather than executing trades in the client’s best interests, he said. Mr. Cox added that the desire to build up soft-dollar credits can lead to overtrading in clients’ portfolios and that managers use one client’s commissions to buy research useful for other clients. Members prefer to use low-cost mutual funds or discount brokers. Some buy and sell at $0 cost. See our Guide: http://www.theinsidersguides.com/mufuse.html

Annuity sellers to receive more commissions
You may have heard that annuities are excellent products if you are a seller. They just got better. Insurance companies are now paying an additional 0.25% of the balance every year. In addition to the 4% to 12% commission, the sellers will receive another 1.75% to 3%, given the average time annuities are held. “The commissions are an additional loading-on of fees to EIAs [annuities] — which are already heavily laden with administrative expenses — that will ultimately come out of clients’ pockets,” one advisor said. Members consider all the alternatives in our Guide: http://www.theinsidersguides.com/ann20.html

IRA annuity—the good, the bad and the ugly
Did your advisor suggest rolling your 401(k) from your former job into an “IRA annuity”? Look before you leap! The benefits of putting your money in an annuity and then into an IRA account are just duplicated—you pay twice. Sellers make up to 17% commission on an annuity. You will pay for that expense over the years in higher fees and less earnings. If you want to continue to grow your 401K benefits tax-deferred, the rollover IRA was created for that purpose. And it costs nothing. To grow your nest egg, you need to buy low-cost mutual funds inside the IRA. That way no tax is due until you take the money out. An annuity also charges you for a death benefit so your heirs can’t lose money. However, our annuity expert of 15 years says that only one person in a million uses it. Other guarantees—GMIB, GMWB—are cheaper when you buy them later. Don’t leave your money with your former employer—Think ENRON. You can assure yourself of not losing money by picking mutual funds that match your goals. See our FREE Guide to see how members decide: http://www.theinsidersguides.com/freeguide.html

Help with decision on family care
DecisionStreet.com is helping adults make family care decisions with confidence. It is a place for people to start the thought process, engage with others who have shared experiences and create a plan to solve tough issues related to caregiving such as housing, financial planning, insurance and care provision. It is an easy to understand process for organizing information, identifying priorities and assessing choices that serve as the basis for a plan. The service provides a personal online workspace that allows people to easily find pertinent information and make connections with other community members with shared experiences. People will also have access to industry experts and professionals who can provide relevant guidance, products and services. DecisionStreet.com

Investing For Retirement: a learning module by the NASD
A quick course in investing for retirement uses this example: Investor A invests $2,000 a year for 40 years for a total investment of $80,000, starting at age 26. Investor B invests $2,000 a year for 7 years for a total investment of $14,000, starting at age 19. The table compares the results of net earnings--$1,000,000. These results assume a 10% tax-sheltered rate of return, which approximates the rate of return in the stock market for the past sixty years. If only we had seen this in high school. http://www.nasdfoundation.org/Investing%20for%20Retirement%20module.pdf

Take your financial inventory
Complete a financial worksheet to plan for college, home, retirement. Free software helps you see the BIG picture—your income and assets and debts—so you can make changes to reach your goals. Free from nonprofit insurance information institute MyFinancialHouse.org

My funeral expense fund:
A Roth IRA with $4,000 in at age 65. In 10 years it will have $10,000, at 15, $15,000, at 20, $25,000 and at 25 years, it may have $38,000 to use for these expenses. There are no taxes to pay now or later and the heirs can have a good laugh at the FREE memorial party. By the way, I left my body to science FREE at http://www.anatomicgift.com/index.cfm.

Who owns your account now?
Nuveen to Madison Dearborn Partners
Putnam Lovell to Jefferies Co