Why do actual investors earn less than their benchmarks?

 

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

 

Biden lawyers against chokehold/knee on neck UNLESS cop “feels threatened” they do!

 

Plan to lower drug prices was defeated in Dem committee: Lobbyists paid 3 Dems

 

SCAMS/SPINS:

GOP will reach 675,000, the 1918 flu pandemic death rate: Govs fight Prez mandate

Fox: If mandatory polio vaccine is OK, why not COVID-19? Drive, hunt, visit England

All of a sudden police/public service workers get religion: religion exemption kills folks

 

Trump on Pence, his chosen VP: insults 5-year old kids: This is your new GOP ?

Supremes not "a bunch of partisan hacks": just liars: each pledged Roe was “settled law”

Abortion pills for TX market booming: Mexico lightens up just in time: employers help?

 

FL court: Gov can continue to let Covid kill kids—no masks in schools is law

FL airport dogs ID the Covid killers: sniff employees’ masks despite Gov ban

FL refuses to total Covid deaths: must be extreme not to tell. GOP going for record!

WV highest rate of new Covid cases per day: low vax rate; closing schools

Fake vax cards are readily available: masks may still be prudent indoors

Fake mask tests in TX go viral: confirm sources before you believe internet

TX women beat up NYC restaurant hostess over valid vax cards:

 

San Diego healthcare workers seek religious vaccine exemptions: Bible saves you?

 

243,000 Covid cases in kids 1 week 500,000 in 2weeks: Do it for the kids: GET VAX

 

CA Vax mandates keep Trumpist out of power: Covid case reduction continues

 

FL 13 & 14 year olds with gun planned mass shooting at middle school: peers heard talk

mass-shootings-increased-in-pandemic/index.html

 

 

FBI caught allowing sex abuse by USA Gymnastics to continue w/o proper probe:

 

Larry Nassar in jail: why aren’t his bosses at USAG and USOPC? Cardinals never jailed

 

Felix Gorovodsky caught forged gift letter stole $253,000 promised to advise w/o license

Stephen C Peters caught selling bogus 9% notes stole $15 million: 40 yrs; lost appeal

Trumpists Lindell, Gen Flynn caught at 10,000 KY rally with only 300 showing up

American Airlines caught changing refund rules: you may be stranded

3 military caught helping foreign gov hack US companies for profit: fine, no firing squad

 

Drank the Kool-Aid: Most Republicans: It’s Important to Believe Trump Won Election

FL Gov guest claims Covid changes DNA but Gov did NOT disclaim lie: more FL deaths

 

Jobs

Hospital staff loses benefits when refuse vax: Covid staff kill babies “unable to staff”

Tech job pay by state: $123,000 in WA to $70K in SD

Renewed tax credit can help employers hire workers

 

Most promising jobs in ’21: Amazon wage increase; college

More Ford electric truck jobs in MI: chip shortage weighs cars/trucks down

 

Who owns your account now?

Reports suggest that seniors in poorer health may be better served by Original Medicare.

Average credit scores by age: Many errors in credit reports: fix for free

Most reliable appliances: CR reviews show most expensive not the most reliable.

 

Miracles:

Lutheran church installs 1st transgender bishop: SF Grace Cathedral where else?

A widow, doctor, mother of three running for president of Somalia: yes, Somalia

Bangladesh has reopened schools: 97% teachers and staff vaccinated

 

Miami football fans save cat falling from upper level with flag not masks

CA wildfires closing in on world’s largest oldest trees: Sequoia National Park

NYC vaccinated 6 million for smallpox in 1 MONTH to save lives: no mandate

3 million more obtain health care during special Covid enrollment

 

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/

 

 

Financial revolution offers more for less

Financial revolution offers more for less

Low-cost index investing. Single fund investing. Advisor-free management. Realistic income projections. Automatic 401k enrollment. Robo-advisor. Tax-free account.

The financial revolution is the work of John Bogle, Warren Buffett, and William Roth. Bogle gave us low-cost index investing, greatest accumulations and robo-advisor. Buffett gave us advisor-free management, single fund investing and realistic income projections. Roth gave us tax-free accounts. We can now avoid being ripped off by the industry. We can earn more by paying less, with greater diversification, less volatility and more predictable earnings over time. We don’t need to worry about picking the right stocks or time to buy them. Most working people can accumulate $1 million for retirement with just one fund automatically from their paycheck. It is so simple: it’s like brushing your teeth—once you start it becomes a habit you do ‘automatically.’

https://www.amazon.com/Millionaire-Mutual-Funds-Save-taxes/dp/1534939490

Financial industry pushing annuities on women/younger caretakers

Women and younger parental caregivers are being targeted for annuity purchase because they have less income and live longer. The National Institute on Retirement Security found that the average income of women 65 and older was 25% lower than that of men. In addition, women live longer, so their savings have to last longer. And fewer employers today offer traditional lifetime pensions. Annuity sellers are appealing to women by highlighting the need for more income from fixed annuities compared with low-interest CDs. Sellers say economists recommend putting up to 80% of assets into annuities. That’s B.S. Great for insurers but women then carry all the risk of reduced purchasing power over time. This is not ‘worry-free’ retirement because 1. how much annuity to buy, 2. when to buy, 3. what about inflation: it reduces by HALF the buying power of the benefit in 20 years, 4. not much for a legacy, 5. there is no upside potential and no large asset in case of emergency needs, 6. annuities are non-refundable, 7. you forgo the total return of a stock portfolio—no dividends and no capital appreciation. Yes, annuities last for your lifetime but spending power and assets decline over time.

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

Can you afford an adult child moving back?

More families are becoming depression-era extended families. The question you need to discuss is ‘how this changes your plan for retirement’? If your child cannot afford to pay for some of their costs, are you willing to cut your retirement expenses short? More than 15% of 25-to-35-year-olds lived at home in 2016, according to The Pew Research Center, 5 percentage points higher than the previous generation. Sure, you can plan to work longer but not everyone has that opportunity. Ask for rent so they know you have limits. Let them know all their regular expenses like cell phone are theirs alone. Make the rules BEFORE they move back so there are no misunderstandings. For instance, they can do their own laundry—you’re lending them your machine and water. Remind them that you paid for their college education—running over $10,000 a year. The purpose of moving back is to give them money to finance their own independence eventually. Set a time limit so they don’t take over your home. It’s too easy to become dependent.

They need independence: https://www.amazon.com/DIY-Financial-Independence-Freedom-Workbook/dp/1088908500

New tax rates are issued but what about the $31 million watch?

This is a perfect example of what is wrong with our tax rates. How many dams could we repair with $31 million? Instead, someone spends $31 million for a watch? Something is wrong with our tax system. How can our society afford to buy a watch for $31 million but can’t fix the places where we spend most of our lives? Are the tax rates and code created for the rich so they keep more money for themselves? The rich get richer and the poor get poor—pretty soon there won’t be anyone left to pay the taxes. Example: Warren Buffett pays only 17.7% total taxes; all his employees pay 32.9%: HALF. Expert tax avoiders like President Trump, Mitt Romney and John Kerry pay less than 15%. Most corporations like GM Apple and Google hide income in corporate shells and pay 10% or less. Taxes fall much more heavily on labor income than on capital income. $31 million watch! How fair is a system designed to tax us DOUBLE what the rich pay.

Average people pay 33% in taxes: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

Another way the wealthy avoid their fair share of taxes

IRS says they are going to crack down on conservation easement transactions. Basically you get to deduct the reduction in the value of your property if you donate property for the public good. The reason the IRS is cracking down is because wealthy people overstate the amount of the reduction in value. IRS says there are billions of dollars of potentially inflated deductions as well as hundreds of partnerships and thousands of investors. Apparently there are people who promote this activity for profit. We are talking lawyers, appraisers, tax return preparers and others. President Trump used this trick to ‘donate’ unusable land (now an unused state park) and claim a huge income tax deduction. He said the land was worth $26.1 million: he paid $2.75 million. Syndicated conservation easements are included on the IRS's 2019 "Dirty Dozen" list of tax scams to avoid. There are easier ways to avoid income taxes.

Use your own legal tax shelter: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300/

Do you really need life insurance?

Are you single? Are you getting life insurance as an employment benefit? Does your spouse have a job? Do you have over $50,000 in all your savings/investment accounts? Do you have a HELOC or over 50% equity in your home? Do you own a business? Are you in the armed services? Do you have medical or student loan debt?

Consider the alternatives: https://www.amazon.com/Drop-Your-Insurance-Only-What-Need/dp/1448623391

Don’t forget to take your RMD by Dec 31

Every 401k, IRA and pension must be distributed annually after you reach age 70.5 otherwise you get fined by the IRS. The scheduled annual distribution amount is calculated on your balance of ALL tax-deferred funds the year before. You can rely on your fund company if ALL your accounts are held by them. The rates are determined by your age and life expectancy. Since we are all living longer, IRS will adjust the RMD rates next year. Since they will be spread out over more years, we will have to take LESS income each year. Taking less means adjusting our income requirements next year. RMD works just like an annuity—guaranteed income for life based on your assets each year. Unlike annuity, you don’t give up control and your purchase power may go up. You may leave a legacy too.

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

Why 25% of wealthy don’t use a financial advisor

Wealthy folks want an advisor with experience, with fiduciary pledge and holistic perspective. Apparently, 25% of them can’t find this advisor or they don’t need one. Those who do have a strategy rely on diversification to manage market risk. Some folks see diversification as the answer to the advisor question. They don’t need an advisor if they know they can’t beat the market with quick trading, market timing, sector rotation and other crystal ball strategies. Besides, paying advisor fees, charges, and retainers can cut their potential accumulation in half. Some might even be taking Warren Buffett’s advice. You may be better off with Warren Buffett as your advisor.

https://www.amazon.com/Warren-Buffetts-Investment-Strategy-Forget/dp/1484822900

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

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

He "stumbles, slurs, gets confused, is easily irritated, and has trouble synthesizing information."

How Govt wastes our money: Congress spends another 1.7 Trillion we don’t have! 

Ukraine gives in to Trump's pizzo extortion to nail Biden: Bloomberg-Warren2020?

GOP in Georgia, Texas Arizona keep Dems voting down using tricks: only way to win

Trump owes Scotland $290,000 in lawsuit over wind farm: long hate for wind power

Trump to just take land for WALL in TX: Family-owned land for generations not selling

Trump pays $ millions to keep taxes hidden from US: legion of lawyers at 5 courts

SCAMS/SPINS:

Morgan Stanley caught misrepresented its share-class: overcharged customers $1.5 mil

Boeing moving lawsuits abroad to save money after killing 346: CEO clueless.

Nudge caught false promises on profits from flipping houses: fake secret classes

Can broker be your executor/beneficiary and be fiduciary too: conflicts abound.

Lance Armstrong caught borrowing money from Raymond James customers: defrocked

Security Benefit Life caught misleading indexed annuity sales: doctored indexes

Google Apple vie for our checking account biz: all retail banking by phone?

Real Estate Agents Profit From 'Hidden' Commissions: house price up; fees up

Ed Sec DeVos backed Neurocore, a “brain training” company, offers fake cures

MyPillow caught claim of fake sleep study for cure sleep apnea: fine no jail

“Aleve is proven better on pain than Tylenol” is fake claim: no proof, it’s all in head.

Medicare “Free” or “low cost” back knee braces: scammers use your data for cash

Medicare Part B—doctors' fees outpatient services—increases to $144.60 per month.

BEWARE: Online low-cost low-benefit health plans misrepresent coverage: junk ins

SCAM ALERT: Facebook shut 5.4 billion fake accounts but billions likely remain!!

SCAM ALERT: Which debt collectors work for IRS? CBE ConServe Pioneer Performant

Another hospital doesn’t clean it’s equip: UCLA colon scope kills 2;

Bath power with talc being changed due to J&J asbestos talc legal history

Coast Guard rejected safety tips may have saved 34 lives in CA disaster: boat makers?

Nikki Haley fmr ambassador said Trump is truthful.

Trump: Ivanka 1^st daughter personally created 14 million jobs: 200 times US total!

Trump: rough transcript conversation Ukraine is really “recollections” of his people

Judge killed Trump’s reg allowing doctors to refuse patient care if religion objection

ObamaCare subsidies: $774 per month covers 67% of costs for family of 4: $60,000.

Mustang electric SUV? Who is marketing appeal to? An electric Mustang SUV? Uh

Would you buy Austin Martin SUV or it’s 12% bond? Can sports cars be SUVs?

New cars/trucks to avoid: 37 poor choices—quality, price, reliability, etc.

BEWARE: Self-driving Uber killed woman: not programmed to recognize people!!

NYPD bribes secure $18 million car insurance fraud scheme hospitals, docs, etc

Abou-Khatwa caught defraud CareFirst BlueCross Blue Shield & fictitious employees 

Head-injury lawyers win verdict from GM but hide the evidence of GM killing 5,000.

Jobs

Most parents admit don’t have time for kids: Most kids battling anxiety most stressed generation

80% Millennials Believe Aren’t ‘Good Enough’: constantly feel “overwhelmed” by pressure to succeed

KY Dem Gov cancels work requirement for Medicaid coverage for 95,000 in need

Apple grant for housing as 30,000 middle class leave San Francisco in shortage

Pilots who warned Boeing of 737 Max bad design in 2016 sent away in reprisals

What you should be earning if your 1980 job kept up with inflation: 30K then; 98K now.

Miracle:

Small town hero shows love by example: He could have wasted $ on homes, cars etc

Blood test detecting breast cancer up to five years before any actual clinical signs in UK

Venice under 6 ft flood: 6 times 1200 years; 4 in last 20. Climate change!

Germany ends coal mining in 20 years: currently 1/3 power from coal. US ends Paris A.

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Give your child a leg up: Make sure they can make and manage money

Give your child a leg up: Make sure they can make and manage money

Only 17 states require your child to learn how to determine which investment pays the highest return on their money. Most think it is a savings account. This could be one reason most of us are going to be broke in retirement and the amount of credit card debt has doubled to over $8,000 per household. Children are moving back home after racking up huge student loan debts. Most parents have no clue about the fundamentals of personal finance—investing, interest rates, compound interest, why the rich get richer, and avoiding debt by creating your own ‘bank’ of tax-FREE accounts. Unbiased advice is easily available. For instance, if I loaned $250 a month to big companies we use every day, over time, with interest on my money left with them, would grow to be $63,000 in 10 years, $245,000 in 20 years, and $790,000 in 30 years. The Miracle of Compounding: I loaned them $90,000 ($3,000 X 30 yrs) and now I have $790,000. If I use a tax-FREE account, the amount is not taxed—now or later. I learned from John Bogle that you give up 63% of your total potential nest egg if you pay someone 2% a year to handle your money. Warren Buffett’s advice is so simple, anyone can follow it.

Use Unbiased Advice: https://www.amazon.com/Wealth-every-school-graduate-century/dp/1466427906

Is financial planning really like Netflix?

Instead of a 0.28% fee on your assets every year, Schwab will charge $300 financial planning fee once and a $30 flat monthly subscription that will not increase with assets. $360 a year sounds great compared with the $350 ($125,000 portfolio) that rises each year. You get investment management, a financial plan and unlimited guidance from a certified financial planner, whether you have $100,000 invested or $2 million. Of course, the details matter. We did a complete evaluation and plan with analysis for $750 from a CFP on less than a $1 million. If your situation is complex and changing, Schwab is a good deal especially if you have a good planner on over $1 million. If you have a smaller simpler nest egg, you may be overpaying. $30 a month for 30 years is over $10,000 and no extra benefit. If you believe in market timing with the right advisor, you may have a bargain here. Schwab makes their profits on the 8% cash you are required to keep instead of securities. However, most investors with active management earn just 3.79% vs 11% with an index fund. If you are a Warren Buffett investor, Schwab is not worth it.

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

Is your advisor becoming your ‘therapist’?

Is your advisor ‘helping you change your behavior’ when it comes to money? This is their new role: “guide the client’s behavior so they can live their best life possible with the money they have.” But how can advisors do this—inputting your data in planning and trading software? Some think that advisors need to evolve to the more emotional aspects of money. Some brokers are told they must help us align our money with our values. They are told to find out our purpose in life. They are told to ask: “I’d love to get a sense for what gets you up in the morning.” Brokers must know our goals in order to plan the uses of our money. This requires that they “help us dream a bit and add real value to our lives.” Vanguard has studied this added value since they use paid staff not commissioned brokers. They use a ‘service-centric’ model not a ‘beat the market’ model. Brokers are told to raise their value to us by “positioning themselves as a truth tellers.” But brokers can’t tell us the truth—“my firm overcharges you because we only use high-fee products.” Problem is, most brokers don’t have time for counseling us. They must make enough sales daily to meet their firm’s revenue target. If we have less than a $1 million, therapy is too costly to perform on us. Unbiased fee-only planners are the best advisors.

https://www.amazon.com/Unbiased-Advisors-Network-helps-tax-FREE/dp/1470106841

Where is FREE tax preparation?

The free AARP tax-aide sites are filling up quickly: aarp.org/money/taxes/aarp_taxaide/. Before spending $200-400 for a paid preparer, try filling in the screens using the IRS partners at irs.gov https://apps.irs.gov/app/freeFile/. The instructions are easy to follow especially if you have last year’s return to compare what forms you need. I have found https://www.freetaxusa.com very easy to negotiate and respond to email questions. This one charges only $15 for your state return: Fed is free. It is still $15 when as complicated like mine. Basically, you must pay tax on all your taxable income—wages, pensions, etc. This year you have less to deduct because the standard deduction was doubled. Beware some software glitches. However, you lost the personal exemption of $4,050 for yourself, your spouse and each of your dependents. For each child under age 17 you receive $2,000. In high property tax states—NY, NJ, CA, CT, etc you will probably owe this year. The deduction cap is now $10,000 and the average homeowners in these states pay about $20,000 property tax. The law was written by a Rep from a Red state.

Try software at irs.gov https://apps.irs.gov/app/freeFile/ before you go to paid preparers. Penalty for underpayment modified this year.

Check the status of your fed refund: https://www.irs.gov/refunds

Is your ride un-reliable and expensive?

Consumer Reports' annual survey: greatest risks of problems in 10 models counting down to the least reliable model, the Jaguar F-Pace. Climate system, steering/suspension, power equipment are possible trouble for Volkswagen’s Atlas. Climate system, drive system, transmission are suspect in Caddy’s CTS. Power equipment, engine, in-car electronics may hurt Alfa Romeo Giulia. Engine cooling, emissions/fuel system, climate system may hinder Kia Cadenza. Climate system; transmission, minor; in-car electronics slow The Escalade. Climate system; transmission, minor; in-car electronics may knock the $65,000 CT6. Fuel/emissions system, drive system, steering/suspension may fade HD Silverado. Body hardware, paint and trim, in-car electronics, noises and leaks may annoy Tesla’s X. Transmission, minor; power equipment; noises and leaks may bother Buick Enclave. In-car electronics, drive system, power equipment, noises and leaks irritate Jaguar’s “SUV”. (Can sports car be an SUV too?) Is Chevy reliable? Compare JD Power voters: https://www.jdpower.com/business/press-releases/2019-us-vehicle-dependability-studyvds

Find reliable discount coverage: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

Health Care is the issue for 2020

People were in favor 55% to 32% of improving the current health care system instead of replacing it with something new. When asked whether to remove the current system and replace it with single-payer through an expansion of Medicare to cover all citizens, 43% called it a “good idea” while 45% said it was a “bad idea.” By political party, 69% of Democrats and 42% of independents supported it while only 14% of Republicans did. For many voters, assuring family members of having care when they need it (including for pre-existing conditions) may be 2020’s 3^rd rail issue. Some have to borrow to pay for care and some do not get treated because of the cost. Trump vowed to kill our coverage for 20 million new insured and destroy the full comprehensive care guaranteed by ObamaCare. 55% of us worry a great deal about healthcare, topping a list of 15 issues. 49% worry a great deal about hunger and homelessness -- a new high. HALF of us worry about hunger & homeless. Hunger and Homeless are top concerns in America despite our growing wealth. For instance, today I got my annual physical free of charge. I need a colonoscopy and endoscopy which will also be free. If I had switched to one of Trump’s association plans, I might have a $3,000 charge since my procedures must be done in a hospital. I might just skip this hospital treatment and save the $3,000. The last time I got treatment I was sent a bill from a doctor who just wandered by my room. I had pre-qualified all the doctors for my tests in advance so I refused to pay this scammer.

Cover for pre-existing conditions: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083/

Is your 401k plan too small to qualify for reduced fees?

Employee 401k plans that have few participants are paying 4 to 5 times what employees in large plans pay. The average costs are 28 vs 7 basis points respectively. That means that over time, you may end up with $500,000 vs $700,000. Unless you have a sizable match to your contribution, you need to find an alternative. You can earn more by paying less using a tax-deferred IRA. Your investment options may be more suited to your goals also. After all, the market index is up 15% so far after last year’s loss but you have earned 15% per year for 10 years. Think “Time is on your side.” So if earning more by paying less sounds like a good strategy, take Warren Buffett’s advice and put most of your investments in a simple low-cost stock market fund. If you use a low-cost Vanguard fund, you will earn close to the market rate of 11% not 3.79% in a managed account. An IRA is tax-deferred just like a 401k. The IRA trustee can debit your checking account similar to payroll deduction. Buffett’s advice is don’t sell and lose your compounding boost.

Consider your options: https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938

Will our health care cost be over a Quarter Million Dollars?

Fidelity estimates the cost of future health care at $285,000 for a couple living to age 87 and 89. The estimate have 3 parts: (39%) - Monthly expenses of Medicare Part B and D; (42%) – Medicare cost-sharing including co-payments, coinsurance and deductibles (e.g., for doctors’ office visits and outpatient services) and excluded benefits (e.g., vision and hearing exams, eye glasses, hearing aids, etc.); (19%) – Prescription drug out-of-pocket expenses (e.g., co-pays and amounts not covered by Medicare Part D that individuals pay out-of-pocket for prescription drugs). Actual expenses may be more or less depending on actual health status, area of residence, and longevity. The estimate assumes that no employer-sponsored retiree health coverage is available, and does not include other anticipated future health expenses. Things that are not covered by Medicare — dental, basic vision, over-the-counter medicines, long-term care — would be on top of that $285,000 estimate. Because we don’t have all that money available, we borrow the money—an estimated $88 Billion. 25% of us skipped treatment because of the cost. Nearly half fear bankruptcy in the event of a health emergency. Still 2/3rds of GOP think this is the best health system in the world. Most people don’t believe the cost can be controlled—the health care industry has more lobbyists stopping Congress from negotiating the costs. Our future income is committed to the industry. 

America pays more and gets less benefits: https://www.amazon.com/Americas-Socialism-Only-little-people-pay-taxes/dp/1535218584

  

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Make America, “The Don”, Great Again

Senile Psychosis or Parkinson’s delusions? quetiapine and clozapine

Truth isn’t truth, his lawyer says

“The campaign -- for him -- was always a marketing opportunity.”

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

Will voters who need ObamaCare vote for it?

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

IRS delayed penalty on tax owed this year: Estimate your new rate: 22, 24, 32, 35%

Judge stops Trump opening of federal Artic Atlantic waters to drillers/destroy wilderness.

Mueller staff says Barr summary misleads: Cover up underway by Trump/DOJ More lies.

$36 Billion for electronic health records: Death by clicks, errors; & errors from fixes, etc

TrumpCare in 2020 budget is block grants: your state reps pick care options for poor.

TN cut 128,000 kids from wellness program—many end up at expensive ER.

SCAMS/SPINS:

Trump-Hannity solve energy problem: Wind “only blows sometimes” so use coal.

Lobbyists not EPA decide which cancer-causing chemicals you can use in child play area

Jury decides asbestos in talcum powder does not cause your mesothelioma. 

Trump removes 78 regs on our health: more mercury, pollutants cause more sickness.

Trump bank Deutsche Bank kept money-laundering flowing despite knowing facts.

Wind turbines cause cancer according to TrumpCoal propaganda machine.

Govt receives more robo complaints but does little to stop them: Robos pay carriers!

CA has law against unwanted spam emails sent without our permission—fine $1,000 per.

Vision plans not help us but push us to buy high markup frames: kickbacks to Dr.

Fake news online confusing aging population: society effects health, wealth, safety.

JPMorganChase failed to inform clients: conflicts of interest managing money. No jail.

Dennis Gibb WA caught defrauding 15 investors of more than $3 million. Fine no jail.

Scott Capps PA stole $2 million from dormant accounts with stolen firm passwords.

Omar Zaki stole $1.7 mil mislead clients with fake formula claimed 80% return. Fine.

Greg Lindberg Eli Global, GBIG caught bribing NC public officials to regulate GBIG

ABB caught ripping 401k employee funds: moving from Vanguard to Fidelity $55 M.

Jose Ramirez, ‘Whopper’ caught stealing $1 million: client loans to buy bonds. Jail 

Direct Lending Investments, CA caught overcharging $11 M on fake loan values. No jail.

GOP to start ‘Bengazi’-type hearings to distract from Trump Troubles: Redo 2016?

GOP is NOT ‘party of health care’: No plan to make a plan Trump to destroy ObamaCare

Trump again promised “Great healthcare” if he is re-elected in 2020: GOP says no way!

GOP Senate becomes rubber stamp for Trump judges: American law turns right.

US Stem Cell caught blinding patients with injections of stem cells from fat. Continues

Catholic priests are burning books again: since Inquisition 1585

More immigrants will come from 3 countries Trump cut aid to since conditions get worse

Mob Boss gives in to N. Korea: lifts sanctions for NOT scrapping missiles: “I like Un”

“Individual 1” could be a Russian “asset”: Why FBI opened a file on The Mob Boss.

Mueller ignores Mob Boss family Russia deals: OK to conspire with enemy.

1. “Russia, find Hill’s emails” 2. Don’s Mob made Russian deals 3. Russia intel tricked voters 4. Polling data payoff 5. Special Russia deals 6. Fire FBI 7. Refuse give testimony

The Mob Boss can never go to jail: Trump has Kava as Supreme so no indictment.

‘No man is above the law’ … well up till now. Dictators nullify courts first, then votes.

Supremes protect Don’s ‘Orders’? – GOP: ‘Sure, pres can change Constitution anytime.’

Jobs:

Few graduates know which investment provides the highest returns: https://www.amazon.com/Wealth-every-school-graduate-century/dp/1466427906

Why people don’t vote: Reps get to Wash and give

Who owns your account now?

Home buying: https://www.bankrate.com/mortgages/apps-homebuyer-homeseller-best/

Get Advisor: https://www.amazon.com/Wealth-Wisdom-Questions-Wealthy-Families/dp/1119331536

Buy Driverless? https://www.insurancejournal.com/news/national/2019/04/02/522530.htm

Miracle:

One student shows HOW to make a difference: And it rubs off on others.

Pope gives convicted archbishop of Lyon another abuse chance: not accept resignation!

Most drivers are distracted while driving—miracle not more accidents.

IAN

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