Your Wealth Reserve: fake cures

Showing posts with label fake cures. Show all posts

Friday, October 16, 2020

This is why you can’t afford to ignore fees

When returns on investments are low, paying your advisors fees can kill your account growth. If your investments are earning 6% but your fees, commissions and expense ratios total 2%, your account will grow HALF as much as it could have over time. Example: You invest $250 a month for 35 years with costs of 2% per year. You end up with only $229,194. If your 6% a year on average only cost you 0.07%, you would end up with $352,216. That is $123,022 more—HALF again than with advisor fees. You can always hire an advisor when you have a problem. Your advisor pockets the $123,022. Most of us are correct in assuming advisors are a luxury item. We can’t afford to give away that much of our nest egg. Plus it could be tax-FREE.

https://www.amazon.com/You-Can-Afford-Retirement-TAX-FREE/dp/1517738253

Is your employer’s 401k right for you?

There are situations where you are better off NOT using your employer’s pension plan. Your employer may have picked the wrong fund options or they do not match your contributions. If the only options are expensive funds and there are many extra plan expenses, you can gain the same tax advantage with lower costs elsewhere. Your total accumulations will be greater. If there is no match, there is no advantage to using a 401k or 403b. In fact, some types of employer plans may end up losing your money. Single-employer pension plans are better protected than multiemployer plans by using available pension insurance. Use Brightscope to assess your plan. If you are paying more than 0.15% total costs (fees, charges, expense ratio, bookkeeping, annual statement fee, etc) and you do not receive a match to your contribution, you will be worse off in retirement. A Target Date fund may be the right choice. And you can avoid retirement income taxes too by using a special IRS account available at the largest fund firms.

Consider the better options: https://www.amazon.com/Robbing-You-Blind-401k-fees/dp/1493588966

Is a robo right for you?

A robo-adviser is a computer algorithm that invests your money based on your answers to a few questions, such as when you need the money, your tolerance for risk and how much you have to invest. You pay for the website process and you pay for the funds the robo puts your money into. So you must decide your risk tolerance (how much market volatility you want) and when you need the money (when you will retire or buy your dream vacation). You must also decide how much to invest even though this is one of the hardest decisions to make. You can pay extra for “tax-loss harvesting” although mutual funds pass on gains and losses every year without much control over your taxes. You can pay up to 1% a year for a robo account. An easier alternative is a Target Date fund which does the same things for 0.14%. Save yourself $ thousands over time.

https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

Another way the wealthy avoid paying their fair share

Trump caught inflating value of his woods: tax avoidance of $21 million. Did you obtain a tax break when you bought your home simply by claiming you would not build in your back yard? No of course you didn’t. The wealthy use these kinds of tricks and politicians don’t fight it. Usually because the wealthy help the pols get what they want too and nobody goes to jail. First, you have your company buy the property. Then you hire an appraiser who makes a report that IF a new owner were to develop the land, it would be worth double current values. The appraiser who also does deals with you makes up “unsupported assertions and misleading conclusions that boost the value of [your] charitable gift — and [your] tax break.” Another example is the private museum of Peter Brant in CT. Operated by a nonprofit charitable foundation created and controlled by Mr. Brant, this cozy museum with old bicycles is tax-exempt. Wealthy collectors save $ millions in federal taxes by donating art and money to museums and foundations. But for Mr. Brant’s center and a growing number of private tax-exempt exhibition spaces like it is that their founders can deduct the full market value of any art, cash and stocks they donate, even when the museums are just a quick stroll from their living rooms. The museum is not open to the public however. So you could set up a museum of your old baseball cards in your shed but the lawyer set up will cost you. Or you could just use your legal tax shelter which costs nothing to establish.

Start now: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

Why is compounding the key to your investing success?

Warren Buffett credits compounding as key to his success in accumulating over $80 billions. “My wealth has come from a combination of living in America, some lucky genes, and compound interest.” Without compounding Buffett’s securities could not propel his assets to that level. We can only achieve our long-term goals by using compounding. Compound interest of 1% at a bank provides $125,762 after investing $250 a month for 35 years. Since inflation runs about 3%, we are losing money! Only compounding securities’ dividends/interests can we accumulate $1,243,368 in 35 years. Since we don’t have Buffett’s genes, buying a low-cost stock index fund is our best and easiest way to take advantage of compounding.

Use Buffett’s strategy: https://www.amazon.com/MasterClass-Buffetts-SIMPLE-Strategy/dp/1983485268

Is “professional” money management right for you?

Investors are questioning whether the promises of the large Wall Street firms are really fulfilled. You may remember when Yale Endowment’s use of ‘alternatives’ was the answer to every investor’s dream of “beating” market returns. Well, guess what? It was a myth. Studies have concluded: “…we find no evidence that the average endowment is able to deliver alpha (market beating returns) relative to public stock/bond benchmarks.” Another study found, “little positive evidence supports the conclusion that private equity as an asset class is able to deliver alpha.” But ultimately, they concluded, “We do not resolve the question of whether private equity and hedge funds deliver alpha.” As to other sources of alpha they flatly stated, “We find no evidence that manager selection, market timing, and tactical asset allocation generate alpha.” Even without taxes, “Non-profit endowments badly underperform market benchmarks, with median annual returns 4.46 percentage points below a 60-40 mix of U.S. equity and Treasury bond indexes, and statistically significant alphas of -1.10% per year.” In English, that means “professional” money management is not worth the $ thousands we are paying over our investing lifetime. The fees are subtracted from our account whether there is a gain or loss.

Compare Vanguard’s low-cost lineup: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

Is it ever time to buy a new car?

What is the difference between a new car and a slightly used version? You must consider that the luxury cars have dependability problems so they lose over 40% value in the first to third year of ownership. Manufacturers use owners for a FREE testers—some of us must return these expensive babies over and over to work out the kinks. If you don’t want to be their guinea pig, look to the used market to save on value. For example: BMW 7. Average new price, $109,231. One-year depreciation, 43.4 percent. Average year-old price, $61,784. Audi A6: Average new price $63,931, One-year depreciation, 41 percent. Average year-old price, $26,199. Jaguar XE: Average new price, $50,371. One-year depreciation, 40.9 percent. Average year-old price, $29,786. Compare Honda Civic hatchback: Average new price, $25,390. One-year depreciation, 11.9 percent. Expected average year-old price, $22,686. If you are still not convinced, price the Porsche SUV (contradiction in terms?) at $127,800 for the Cayenne Turbo. The used 2020 SUV is a ‘bargain’ at $106,000.

Buy right insurance for it: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

Most of us have no idea how much money we need

An overwhelming majority of us are heading into retirement without any idea of how much money we will need. New survey: 71% of adults within 20 years of retirement have not run a projection on how long their savings will last based on their life expectancy. Moreover, 53% of that group said they expect to retire with less than $100,000 in savings. But averages don’t mean a lot. We now have tools to help us get a better idea of our retirement spending levels without paying a planner to make a big printout. We can estimate how our savings/investments will grow over time and then how long they will last. Combine that with the Social Security benefits estimate using current earnings (https://www.ssa.gov/OACT/quickcalc/) and we will have a rough guess of our retirement income. If we do it now we still have time to fix it.

https://www.amazon.com/You-Can-Afford-Retirement-FEE-FREE/dp/1517738253

You could save $3,000 a year on financials

Our financial industry Insiders show you the "tricks of the trade" so you save up to $3,000 every year on banking, mortgage, education, mutual funds, securities, annuity, insurance-life, health, disability, long term care, vehicle, homeowner's, lawsuit--vehicle purchase, estate legacy, wealth transfer, retirement spending . . . almost any service. You buy the best financial services and avoid high fees and commissions. Your savings builds your Wealth Reserve over time. You buy where we Insiders buy! Our Insider's Guides help you find the savings so you can build your Wealth Reserve to protect your lifestyle, now, and into the 21st Century. Your Unbiased Advisor: "Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime." Our Insiders show you how to SAVE $3,000 every year by buying your financial services DIRECTLY--using Insider's Guides for each financial product/service.

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

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

Like 1776, this period is a test of democracy—do we really want a Dictator?

Supremes decide election … again? “Follow the money”

Dictator affirms Qnon ‘domestic terror’ threat

Dictator: I order Barr to indict Biden over the Russia ‘hoax’

Dictator: I blame veterans’ families, not ‘consort’ Hope

Dictator: “I’m immune” “I’ll kiss everybody” killed H Caine

Dictator: “virus less deadly than flu” 218,000 so far!

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

Trump’s tariffs destroying good jobs in MI: trade war caused loss of 175,000 manufacturing jobs.

Trump used his office to help over 200 businesses who secretly paid him thru his properties

GOP has "no appetite" for a $1.8 trillion bill: Senators not hungry: they still have jobs/insurance

MI sheriff speaking for terrorists plotting overthrow MI gov: out of state terrorists for Trump

Police buying every anti-personnel item: police costs tripled as crime rates fall: fear makes $

Trump’s accusations of Obama conspiracy proved false: Barr finds nothing

Trump gave PPP money to aviation firms AFTER they laid off workers: paid to owners

Trump withholds fire disaster funds from CA: political revenge

House on vacation again: no-show jobs Washington style: 898,000 file unemployment

SCAMS/SPINS:

Health insurance costs increase faster than wages: workers are losing ground to insurers

Revealed: GOP health care plan finally, we know what is in the plan: just promises!

Over 20 million will lose coverage if Trump’s Supremes vote down ACA

How the ‘Hoax’ hit 15 relatives from one TX family: TX Gov OKed small groups

Trump calls Regeneron a "miracle" “cure”: Trump owns stock in maker: he pushed up price 60%

Scientists: Trump ‘cure’ remdesivir has "little or no effect on mortality" for patients hospitalized

Trump is contagious: Virus remains for 28 days: McConnell avoids WH and rally killed H Caine

Trump put 2 political hacks at CDC to bend virus information: its what dictators do

domestic terrorism threat is rising: Armed Trumpers at polls: guard him in WH after loss

Supremes halt census: Constitution: “The actual Enumeration [count] shall be made every 10 yrs

Supremes nominee indoctrinated in male authoritarian propaganda: decisions biased

Supreme Court biased by political clubs and lobbyists for the wealthy: revenge of right

Supremes’ Citizen United makes election about money: Adelson rescues Trump with $75M

Millions with low-income locked in poverty: a tiny raise can cancel benefits given for poor

Robinhood Users Say Accounts Were Looted, No One To Call: hackers cashed out stocks

Phillip Kenner AZ caught $17 million scheme: promised HI land developments: jail

Securities firms caught hiding their RR disciplinary histories from us on CRS forms

Nissan caught misleading, deceive, overcharging, holding items ransom fine $4 million

Midland Funding caught suing for loan collection late & without documents, notice, etc

Robert Smith: how tax evaders stay out of jail: lawyers and a little ‘help’ to their friends

Car fluid flush: mechanics do scams too: Find a new shop if you are hit with these scams.

5G phone on today’s networks like Ferrari on neighborhood streets: wait: maybe in 2025

Social Security benefits up 1.3% but Health care costs up 3%; rising every year

Is it a scam? Check AARP scamline 877.908.3360.

Check IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams

https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers

Check Social Security: https://blog.ssa.gov/

Jobs

Fidelity Investments To Hire 4,000 People In Next Six Months

Wages stopped growing relative to productivity in the 70s for most of us: we can’t retire

Trump still has a job: 898,000 new week unemployment claims

Who owns your account now?

BMO Harris Financial Advisors moved to LPL

Vanguard gets out of China institutional money management: focus on individuals.

Miracles:

Killers loose: MI terrorists AR weapons never get asked for license or background check

WI police never disarmed 17 yr old AR weapon: killed 2: terrorist not ‘militia’: Tombstone law?

Arizona COVID-19 cases fell 75% after mask mandates: family denial no masks 14 sick

AZ heat over 100 HALF the year: living indoors is the future in the desert and on Earth

Voting in some GOP states: It takes 11 hours in GA: Will Dems take a day off work?

Trump PO DeJoy claims reverse all the service and equipment destroyed in Apr by Nov 3

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

Friday, May 15, 2020

Will we pay higher taxes to continue subsidizing the rich?

Even Wall Street execs know that taxes will go up to cover the debt Trump created with the 2017 tax breaks. Finance billionaires benefited more than just about anyone from President Donald Trump’s massive tax cuts. “Taxes have to go up -- and it will go up at the upper end,” Leon Cooperman, the outspoken hedge fund veteran. The 2017 law slashed corporate rates to 21% from 35%. That has since helped the nation’s biggest banks churn out record profits and given a boost to rich Americans despite Trump’s promise that they “will not be gaining at all.”

Quit paying for their taxes: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

Is this socialism or capitalism?

Government subsidizes food products so big farms always have profits

Gov gives tax money every year to oil, gas and mining companies Bonus year 2020

Gov gives tax money to wealthy farmers NOT to grow food

Gov gives tax money to wealthy Congress people who claim as ‘farmers’

Gov gives cheap loans to huge companies to make profit on sales worldwide

Gov gives subsidies to banks (even foreign) to assure them of profits

Gov gives tax money to bailout financial firms that made bad gambling bets

Gov gives tax money to any industry that has lobbyists to help elect our Reps

Gov allows certain Reps to use insider information from job to profit

Gov helps the most profitable companies: they have lobbyists who guide Reps

Which Gov uses tax money to enrich the rich? Russia, China or America?

All three: https://www.amazon.com/Americas-Socialism-Rich-little-people-pay/dp/1535218584

Will Trump cut SS benefits to cover his 2017 tax break deficits?

Social Security and Medicare would be on the chopping block in a second Trump term. Pointing to rising deficits, Republican senators have all but promised to gut entitlements if Trump gets four more years. Sen. John Barrasso (R-WY) was even more optimistic. “We’ve brought it up with President Trump, who has talked about it being a second-term project,” Barrasso said. Senate Leader Mitch McConnell (R-KY) has made no secret of wanting to cut Social Security. In his 2016 campaign, Donald Trump said bluntly, “I’m not going to cut Social Security like every other Republican.” However, we know from our daily experience that Trump often says what is expedient at the time. Surprisingly, Dems are not using the issue to hold Congressional seats. The greatest irony in Republican’s “starve the beast” mentality is that Social Security does not even affect the deficit. So perhaps it’s not really about the deficit after all. Luckily, Trump can’t sign an order to cut the income for the 60% of retirees who count on SS benefits for half their retirement income.

Maximize your SS benefits: https://www.amazon.com/Maximize-Social-Security-Benefits-Retirem/ent/dp/1495439224

What can you do with your bankrupt stock?

Neiman Marcus said it is filing Chapter 11 to restructure operations. 500 employees will be gone in months. A Chapter 11 restructuring could also wipe out debt and equity, create new ownerships and let the company close its underperforming stores, all while still operating. Chapter 11 bankruptcy signals that the company is asking the court to protect it from its creditors until it files a detailed plan for how it intends to recover financially. If the court accepts the plan, the company may renegotiate its debts, drastically cut its costs, and resume doing business. Over time, it may thrive and emerge from bankruptcy (or not). Common stock shares will be practically worthless at the moment, and the shareholder won't be able to sell the shares because no one would want them. There is at least a chance that the company will indeed recover and their shares will regain some of their value. Other public companies headed to court are J Crew, JC Penney, Forever 21, Pier 1, Modell’s as well as some restaurants.

Go with Vanguard’s Best: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

Why does the stock market go up when employed goes down?

It makes no sense. In the 1930’s the Great Depression, markets and jobs fell. Now we have the opposite. Answer: anticipation: stocks have rallied aggressively off their March lows as Wall Street becomes increasingly optimistic about a reopening of the economy. Despite dismal economic data and first quarter corporate earnings reports, stocks have looked beyond the near-term turmoil caused by coronavirus. The market has moved higher—back to May 2019 level as several states—including Georgia, Florida, Texas and California—begin to reopen businesses and lift coronavirus lockdowns. The S&P 500 has bounced back more than 30% from its low in late March, now just 15% off a record high. The Nasdaq is more than 35% off its lows and on Thursday moved into positive territory for the year. Money managers don’t want to face the fact that the economy may take years to return to its old self. Wall Street optimists expected reports to be worse so they are buying back what they sold a month ago. They need to show positive activity.

Stocks for the long-term: https://www.amazon.com/Money-Ball-Investing-Winning-unfair/dp/1548831409

Which annuity is best for you?

Sinking your money into an annuity at this time is not smart. Current interest rates determine your eventual monthly payout—either now or later. Insurers offering fixed annuities are buying very low rate bonds with your money. Insurers offering variable market rate annuities are trying to find a hedge on market volatility. They structure the annuity contract so they don’t lose money and set the fees to make money. You have better alternatives to locking in your contribution forever; buying future income that will be cut in HALF by inflation; paying income taxes instead of lower capital gains on your future income and paying more in costs than you gain in tax-deferral.

Check alternatives before no-refund buy: https://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573

Advisors get paid less so changing your fee rates

Sixty-six percent of advisors said their compensation came from AUM-based (managed assets) fees. So even if you do not get any services from your advisor, they get paid less since the portfolio they “manage” is less now. Advisory firm are changing to “advice-based” fees to take more of your money. The owners need more revenue. This is justified by advisors promising to cover health care issues and family-legacy planning. Firms will “move from fixed compensation to variable compensation with profit-based bonuses, since that allows firms to easily trim compensation during a down market like this without having to reduce compensation directly or do layoffs,” one planner said. Advisors are not likely to raise security trading fees during this volatile market time, but fees will be imposed for any request that takes more effort, like review of a retirement plan. It may be time to switch to a fee-only planner so you can control your fees wisely.

Shop for planner: https://www.amazon.com/Get-What-You-Want-Simple-FINANCIAL/dp/1514751151

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

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

If it takes a village, the village idiot is in charge: “metrics up here” (his head)

Mobster declares: “We have the right to do whatever we want”

"I could stand in 5th Avenue and shoot somebody”

Supremes: US leader IS above the law?

Mobster’s felons go free

A crisis brings out the worst in would-be dictators: Easy to end democracy

Anti-democracy judges approved by Senate

Anti-voting laws enacted in GOP states

Lying kills a just world