Evade taxes like corporation?

Can you evade taxes like corporations do?

It is difficult to claim you live outside the US when you commute from your home to work for a paycheck in your American town. Not many working Americans have found the secret yet. Congress people like Ms Bachmann (R-MN) and Mr Berman (D-CA) have given us some clues in their election disclosures. First, you take Federal government subsidies to NOT grow crops on your farm. You offset your earned income with “farm” expenses. Second, you park your money outside US. Third, you can expense all your travel and entertainment through your non-profit PAC or campaign organization. Fourth, your investments are sitting in trusts, REITS, Roth IRAs, IRAs and low-tax capital gain vehicles outside the US. Fifth, you receive gifts of the luxury items and travel you desire from admirers via PACs. Corporations use more complicated strategies to pay ZERO.  They use a PO Box only not a real physical office for their dummy front corps.

Pay your fair share of tax—NOT their share—use an IRS-OK tax shelter: http://www.amazon.com/The-Tax-Shelter-Americans/dp/1500426520

Is the Vanguard Energy Fund right for you?

Any successful portfolio must own some stocks of energy companies to capture growing global demand. As populations grow in Asia, energy demand will grow. With returns averaging over 12% since 1984, this global fund may offset poor US returns. Take one of our clients’ favorites: the Vanguard Energy Fund. This fund has expenses of only 0.38%--less than 70% that of similar funds. This fund is one of their Vanguard Top Ten: http://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

Is the vehicle insurance “pay-as-you-drive” right for you?
If you have noticed, vehicle insurance is now a commodity. Insurers pick their group to insure and price the product to fit the niche’s needs. Driver loyalty means little. GEICO has put many dollars into making it a household name. If you do not want to subsidize TV adverts and poor drivers, pay-as-you-drive could be your future. Metromile says it can save average drivers $500 or more but it is only available in limited markets. You must install their tracker. If you are paying $2000 a year, this might be tempting. The insurer is “excellent” by AMBest but Metromile is new. Progressive and others have similar plans. Use all your discounts to save every two years: http://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

What is the hard part of investing?

Funny, it is doing … NOTHING—just leaving your money alone, allowing it to work for YOU. Use the Buffett strategy—buy and hold. He holds some securities for 40 years. Find out HOW to keep your money working and turn $250 a month into $6,666 per month later. Set it and forget it. Don’t let your money go on unemployment.

http://www.amazon.com/Hard-Part-Investing-Allow-money/dp/1500941425

Is an IRS-approved trust right for you?

Families who don’t consider themselves wealthy are discovering the benefits of trusts. A trust can convert your investments into tax-FREE income, unlike a 401k account. It can provide a tax-FREE legacy for your heirs without a will or probate fees. An IRS-approved trust can be simple and free to establish. It is so simple you can manage it from your computer for the rest of your life. All the income is tax-FREE from federal and local taxes. It can protect your assets from creditors. http://www.amazon.com/The-Tax-Shelter-Americans/dp/1500426520

GOP crazies

Rick Perry thinks the ISIS terrorists are walking into his backyard. The Defense Department on Friday pushed back against Texas Gov. Rick Perry's claim that fighters from the Islamic State in Iraq and Syria (ISIS) might have entered “a ranch in far west Texas.” Perry faulted Obama on border security and for not providing arms to Syrian rebels battling forces loyal to President Bashar Assad.

GUN crazies

Arizona gun range instructor accidentally shot dead showing girl, 9, how to fire Uzi assault rifle. http://www.nydailynews.com/news/national/9-year-old-girl-accidentally-shoots-dead-gun-instructor-uzi-police-article-1.1917858#ixzz3Bb4myosd

What kind of human being would want a child to learn how to operate an assault weapon? Can this gun fetish be reversed?

What are we teaching kids today—Death is entertainment? The girl may never recover.

Have Americans gone completely mad?

Vehicle customer satisfaction scores lower

With fewer buying incentives these days, buyers are less satisfied with their purchase than in the past, according to this survey. Top marks went to Mercedes, Subaru and Lexus. Shopping is easier with the Internet but buyers are looking for incentives on their model and equipment. It may not be there since the depression ended. Buyers save up to 40% on used luxury with a guarantee from the dealer. Careful shopping and bidding wins especially when you look further from home.

SCAMS           Why are we still paying $700 Billion a year for WWII deployments?

We are paying for 164,253 of our active-duty armed personnel to be in 150 countries around the world. We have about 50,000 in Japan and 50,000 in Germany.

Are we preparing for WWII again? There are 1,208,083^[1] armed personnel in the United States. Our taxes pay for about HALF of the WORLD’s military expenditures every year. We have wasted $398.6 billion so far on the F-35 program—they can’t fly safely.

We just can’t afford to pay for everyone else’s defenses anymore.

Japan, Germany and S. Korea can pay for their own defenses.

Will Bank America fine of $16 Billion stop the next banker from crime?

If you have the chance to make $528 million, will you stop yourself from going along with other bankers in faking a deal especially when you know your employer (and the government) will pay the fine for you? If you know that you won’t go to jail (even after you admit in email you were committing fraud), would you do it again? Ask Countrywide’s CEO Mozillo.  “I have no regrets.”

This is the perfect crime!

Why does AMTRAK buy its fast trains from German Siemens?
Caterpillar’s bid was higher. Caterpillar had closed an Electro-Motive assembly plant in Canada in 2012 in favor of a new plant in Muncie, Ind. The move positioned Electro-Motive to comply with the made-in-America mandate for federally funded equipment for Amtrak. Now Siemens will buy engines from Cummins IN and assemble in CA. Profits go to Germany. Jobs to US.

Citibank still lets traders play with $ billion losses—another taxpayer bailout?

Citi has reinstated the lady who lost $ billions of subprime mortgages in the financial disaster that cost taxpayers $45 billions. Bankers have no incentive to retire these gamblers since they get bonuses and never go to jail. “I would have expected Citi to take a different path,” said Cliff Rossi, who left in 2009. “It’s unacceptable for regulators to turn a blind eye as a big bank tries to get back into the risky –- and now prohibited –- gambling that brought down our economy just a few years ago,” said Jeff Merkley, Senate Banking Committee. “Congress passed the Volcker Rule firewall to prevent exactly this type of reckless behavior. Now it’s time for regulators to step up and enforce the law.” Regulators are blinded by future golden payday? 

Citi caught stiffing clients … again

Citigroup will pay a $1.85 million fine and return more than $638,000 to customers after its securities unit failed to get the best prices for clients in about 22,000 trades over more than three years, the Financial Industry Regulatory Authority said. Lucky one complained.

First Command advisor was caught forging signatures of dead clients in 2012 to empty their accounts. First Command focuses on military service members and federal employees. Redonda Russell, 66, of Fort Worth, pleaded guilty to felony wire fraud. Russell worked for First Command for 22 years before leaving the company in 2013.

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Avoid Wealth Killers

Avoid ALL the Wealth Killers. Accumulate $1,000,000 free of fees and taxes.
Use a tax-FREE account—tax-FREE—forever.
Buy low-cost mutual funds averaging 10-12%. Skip the fees!
Accumulating wealth requires that we avoid the advisor fees, commissions, charges, loads and ... taxes—theWealth Killers. 
We avoid fees by buying ONLY the financial services we need at a discount. We avoid taxes by using an IRS-approved account. Tax-FREE low-cost growth can provide 50% more to spend for the rest of our lives.

Warren Buffett pays only 17% total tax, Mitt Romney only 14%, and John Kerry only 13%. What is your total rate? 25%, 30%?
Start today in one hour. Don't let fees sink your ship.

http://www.amazon.com/Wealth-Killers-commissions-expenses-Tax-FREE/dp/1489573828/

Will you work part-time in retirement?

Even millionaires will have a hard time making ends meet. Standard advice is to take 4% of your bond-filled nest egg. However, at current low interest rates, there is a “72 percent probability that they will run through their bond portfolio before they die.” Many retirees refuse to count on stocks, even for part of their account so they are sure to have problems. http://www.nytimes.com/2013/06/09/your-money/why-many-retirees-could-outlive-a-1-million-nest-egg.html? 

Since the average family has a net worth of only about $11,000, it would seem that working in retirement is inevitable. That is the way it used to be before Social Security, which will be reduced in 20 years. Working longer before taking benefits can provide an extra 8% per year over your standard retirement age. Waiting to age 70 might give you 32% more than at age 66. Working also allows you to invest in stocks longer since you would have time for your portfolio to recover if it hit a snag. Investing your tax refund for 20 years could yield $225,000 tax-FREE. http://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976/

Did your financial advisor recommend products because they had to?

A former J.P. Morgan broker alleges that the bank encouraged sales of proprietary funds by withholding commissions on trades of outside funds. The broker said that the trades were done to make his clients' portfolios more consistent with their objectives, but that his supervisors did not believe him and “implied he would be terminated.” The bank is not operating as a fiduciary—in the client’s best interests. You don’t need to get stuck with expensive products: http://www.amazon.com/Buy-Value-financial-services-groceries/dp/1489513078/

Can Facebook updates kill you?

A new study says that the most advanced hands free auto systems actually create a different, and worse, safety risk, by taking a driver’s mind, if not eyes, off the road. These systems let drivers use voice commands to dictate a text, send an e-mail and even update a Facebook page. Automakers say the systems not only address safety concerns, but also cater to consumers who increasingly want to stay connected on the Internet while driving. More than half of all new cars will integrate some type of voice recognition by 2019. New cars lose 40% of their value and can kill.

Health insurance price break?

Florida Blue, Florida's Blue Cross and Blue Shield, has filed to organize under a policyholder-owned, not-for-profit mutual insurance. In theory, this may reduce the price of plans because profit and bonuses usually cost an extra 20%. Buy only what you need: http://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083/

When will you become a millionaire?

>Double your money every 7-9 years over time.

>Grow your wealth with NO taxes or commissions.

>Use 10 low-cost mutual funds earning over 10%.

>Use an IRS-approved tax haven to protect gains.

“My wealth has come from a combination of living in America, some lucky genes, and compound interest.” Warren Buffett

The wealthy become wealthy by buying assets that grow quickly. As Buffett says, they compound. Compounding is money earning money on its earnings every period. The wealthy stay wealthy by paying lower fees, charges, commissions and taxes.  http://www.amazon.com/When-will-you-become-millionaire/dp/1490373241/

Health clinics will replace doctor’s office in future

The number of U.S. retail health clinics is projected to double in the next three years due to the increasing demand of newly insured patients under healthcare reform, according to a new report. Clinics in pharmacies will add capacity for 10.8 million patient visits per year, compared to 5.1 million in 2011. According to Accenture’s analysis, the number of patient visits at retail clinics is projected to account for 10 percent of non-primary care outpatient visits by the end of 2015. Members buy only what they need:http://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083/

More people afraid of being poor than dying

A study from Allianz showed that 61% of people were more afraid of outliving their money than they were of dying. 69% said they'd prefer a product that was "guaranteed not to lose value" rather than a product whose goal was "providing a high return." 80% preferred a product with 4% return and a guarantee against losing value over a product with 8% return and a vulnerability to market downturns. What people are describing is called Social Security. However, Congress is considering changing the factor of increases so benefits will lose value over time. Be prepared: Investing your tax refund for 20 years could yield $225,000 tax-FREE.http://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976/

Can we beat Wall Street?

51 advisers out of more than 200 on the Hulbert Financial Digest's list who beat the market in the decade-long period that ended April 30, 2012, as measured by the Wilshire 5000 Total Market index, including reinvested dividends. Of that group, just 11—or 22%—have outperformed the overall market since then. That's no better than the percentage that applies to all advisers, regardless of past performance. Over the past year, on average, the group has lagged the Wilshire index by 6.2 percentage points. In other words,going with a recent market beater doesn't increase your odds of future success. You can beat all paid advisors: http://www.amazon.com/Your-Hidden-Gold-Mine-right/dp/149034019X/

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

Workers’ pensions raided by company VP—why we need regulation

Pension money was used to buy and lease company property, for illegal asset transfers, as payment for “excessive fees” and for keeping participants of the plan in the dark about plan assets, the DOL said. DOL investigators are asking the court to restore any plan losses. Feds sued to restore worker’s money.http://www.dol.gov/opa/media/press/ebsa/EBSA20121735.htm

Who owns your account now?

Symetra Financial said today it intends to sell its broker-dealer to John Hancock, a unit of Manulife Financial.

First Allied Securities to REIT mogul Nicholas Schorsch

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Americans denouncing citizenship to avoid tax but still here

Wealth: What every high school student needs to know – now iTunes App $3.99

Let money work for you: Start early with $100; hit $2 million sooner!

http://itunes.apple.com/us/app/wealth-what-every-high-school/id540588535?mt=8

2,000 Americans denounce citizenship to avoid taxes; but still enjoy it here

Americans are finding more reasons than ever to take the drastic step of giving up their U.S. citizenship, and the gridlock in Washington may push even more people to run for the borders. Facebook co-founder Eduardo Saverin in Singapore since 2009. Socialite Denise Rich just moved. Of course, these folks still own property here and “party” here but just don’t want to pay for the priviledge. With all their money overseas, will they ask for the American ambassador to bail them out if they get in trouble over there? Use our: http://www.amazon.com/Tax-FREE-Wealth-How-laws-free/dp/1475089236

AL reniges on promise to pay for college

Alabama's prepaid college plan is a step closer to an agreement with the state that would cap the amount those students receive at an amount less than the full tuition they were promised when they signed up for the contracts. Alabama's prepaid college plan suffered financial trouble in 2008 and its board doesn't expect to be able to pay the remaining 37,000 participants full tuition as it increases each year. The state already has agreed to add $548 million to the program in future years, but that still won't be enough to cover full tuition in the future if it keeps rising at the current pace, according to experts. Members use low-cost 529 plans with Vanguard mutual funds. http://www.amazon.com/Insiders-Guides-Discount-Financial-Services/dp/143480593X

Study shows ETF for traders not investors

The study found that 62% of ETF shareholders exhibited buy-and-hold behavior, defined as ownership of more than one year. Though that is less than the 83% among mutual fund shareholders, Vanguard claims the difference is attributable more to the type of investor drawn to ETFs than to the products themselves. ETF investors are more likely to be male and over 60, and to check their account balances daily, according to Vanguard. Investors in each of those categories tend to trade more than the average investor. ETF traders tend to try to time the markets and usually earn less than buy-and-hold investors. There's no question that ETFs are the greatest trading innovation of the 21st century,” Mr. Bogle said at a conference in February. “But the question is 'Are they the greatest investment innovation?' and the answer is 'no.' ”

Mr. Bogle recalled seeing an ad for the S&P 500 ETF that touted the ability to trade throughout the day and thinking, “Who the hell wants to do that?”

ONLY the fools think they can outsmart everyone else. Members invest like businesses: http://www.amazon.com/Wealth-Without-Wall-Street-Keppel/dp/1442168137

Insurers ask colleges for more safety plans for children—Act like adults!

Penn State issue highlights the need for risk management awareness and having policies in place to ensure a safe environment," said Waldorf, president of Waldorf& Associates, a broker that specializes in insuring colleges. If the whole administration ignores the rape of children, are all college kids at risk? What if the footballers rape a girl on campus? Would PSU prosecute footballers? Would they just hide it? Insurers fear future claims. It is as if there are no adults at Penn State.

Women say they are not confident about financial decisions

A Prudential survey shows that while 53% of women in a survey said they are the primary wage earners in their households, just 20% say they feel confident with financial decision-making. On the other hand, about 45% of the surveyed men expressed confidence in making financial choices. Women are better investors than men since they are more patient with their investments. Members use our Guide: http://www.amazon.com/Ensure-Your-Financial-Health-Wealth/dp/1466388293

Pru out of LTCi market

The insurer announced Wednesday afternoon that it will discontinue sales of new group LTCI policies starting in August in all states. The carrier will continue to offer the product in Indiana, Iowa, Kansas, Louisiana and South Dakota for “a period of time,” as per state law requirements. Prudential will continue accepting group LTCI enrollments until June 30. Low interest rates are blamed for the decision.

Small employer 401k plans charge THREE times the rate of large ones: Use IRA instead

Participants in 401(k) plans with less than $1 million in assets pay average fees amounting to 1.41%. Disclosures show that is more than three times the fees paid by participants in larger plans. Member use tax-FREE IRA with costs of 0.07%. http://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976/

FL takes care of poor children health but what about adults?`

Florida surpassed 2 million participants in Florida KidCare, a collection of government programs that partially or completely cover preventive and acute health care for state residents age 19 and younger. Family income dictates whether applicants' children enroll in the programs such as Medicaid, for the very poor, or Medikids or Healthy Kids, modified plans that charge a monthly premium ranging from $15 to $196 per child.

For adults, Rick Scott has rejected Fed money for Medicaid for the poor.

Hospital associations around the country have already signed off on cuts to reimbursement rates under the health care law on the assumption that the new paying customers they would gain, partly through the Medicaid expansion, would more than cover their losses. "If we're going to walk away from that coverage, we'll simply see those dollars we contributed through cuts in hospital payments go to covering people in other states," said Bruce Rueben, president of the Florida Hospital Association.

"It's a bad deal for people in Florida if it plays out that way."

GOP House votes to keep healthcare plan in retirement for themselves

"House Republicans refuse to admit they voted to give themselves taxpayer funded lifetime guaranteed health care instead of having the same health care as their constituents," said Jesse Ferguson of the Democratic Congressional Campaign Committee. "House Republicans didn't just vote to protect insurance company campaign donor profits this time, they're even helping themselves to lifetime taxpayer-funded government health care and now they need to be honest with their constituents and admit it." http://www.businessinsider.com/republican-health-care-repeal-hypocrisy-congress-2012-7

Supremes upheld ObamaCare but split country in half—1/2 get care, ½ don’t get care

Scalia not unhappy since they took away the federal government’s ability to force states to join the expanded Medicaid program. Some states are balking, potentially leaving millions to continue with no coverage.

Republicans, meanwhile, offered no healthcare relief and even threatened to eliminate existing programs.

State uninsured and hospitals expecting Medicaid funds are denied by GOP

West Virginia hospitals currently provide $740 million in charity care to the uninsured. Many of those uninsured people will be eligible for Medicaid if the state decides to expand the program.

Texas’ Gov. Rick Perry, saying “no” to the federal health care law could also mean turning away up to 1.3 million Texans, nearly half the uninsured people who could be newly eligible for coverage in his state.

New Jersey Gov. Chris Christie not only would be saying “no” to President Barack Obama, but to as many as 245,000 uninsured New Jersey residents as well.

http://www.washingtontimes.com/news/2012/jul/18/states-saying-no-to-obamacare-could-see-downside/

Alaska will not set up a program allowing residents to buy health insurance across state lines as envisioned under the Obama administration's new healthcare law

GOP Bachmann alleges Muslim spy in Sec of State Clinton’s office

Bachmann charges that a Clinton aide may be acting as the secret agent of a foreign organization. Charges were made in a letter to the State Department signed by Representative Bachmann and three other members of Congress. “Having worked for Congressman Bachmann’s campaign for president, I am fully aware that she sometimes has difficulty with her facts, but this is downright vicious and reaches the late Senator Joe McCarthy level,” wrote Mr. Rollins. Bachmann also said that the Founding Fathers eliminated slavery in 1776. She also thinks the British attacked NH not Concord MA. She is now a Swiss citizen so it doesn’t matter anymore what she thinks.

GOP Allen West (FL) claims 80 House members are communists and social security is a "form of modern, 21st century slavery." http://www.businessinsider.com/allen-west-social-security-slavery-florida-rep-tea-party-2012-7#ixzz216RcXhWG

These weird claims must be in the GOP fundraising manual to help stupid voters make up their minds. West and Bachmann are US Congress who represent some voters.

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

AXA Equitable found cheating health reimbursements

Regulators exact fine from AXA Equitable Life Insurance Company after an investigation revealed that the corporation made an undisclosed change to its medical claim reimbursement policy resulting in lower reimbursements for many members.

Socialism for the rich—Farm land owners get double the rents due to subsidy to renter

One of the largest farm real estate booms in decades could be getting a boost from an unsuspecting player: the US taxpayer. The government foots the bill for a large chunk of the nation's enormous crop insurance program. Our subsidy pushes the rent higher for the actual producers so land owners, not farmers, get the benefits without the risk.  The rent on part of the land he farms in MN doubled last year to $280 an acre, up from $140 in 2010. GOP Bachmann owns a farm with subsidies but is Swiss citizen now.

http://www.newsobserver.com/2012/07/13/2195111/farmers-safety-net-is-now-a-money.html

           

Who owns your account NOW?

Presidential Life to Athene Annuity & Life

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

"No Sweat Investing" is here

Introducing Law Steeple author of No Sweat Investing
Law has been one of our Insiders who helped create the Insider’s Guides to Financial Services. He has put together his experience with clients investing in No Sweat Investing: amazon.com/No-Sweat-Investing-your-money


Managed mutual funds can’t justify the high fees anymore
Index mutual funds took in a record $76 billion last year, and exchange-traded funds, which are predominantly passive, scored another $121 billion. Actively managed funds, meanwhile, lost about $9.4 billion, according to Morningstar Inc. The outflows create “hidden” costs, such as tax consequences from forced selling or extra transaction costs. You may be paying for the shift from managed to index funds during this period of low market returns. If your advisor made $0 or lost money, you still had to pay for their salary and bonus plus the taxes created when they sold assets to reimburse clients who left. Members have decided to seek Wealth Without Wall Street. amazon.com/Wealth-Without-Wall-Street-Commissions/


Half of American households receive some government benefits
Some 48.6% of the population lived in a household receiving some type of government benefit in the second quarter of 2010, up a notch from 48.5% in the first quarter, according to Census data. In the second quarter, 34.4% lived in a household benefiting from food stamps, subsidized housing or Medicaid, among others.
This does not include House members like Bachmann’s farm subsidy and six Democrats and 17 Republicans who receive over $6 million in addition to salary and expenses. http://www.ewg.org/agmag/2011/03/farm-subsidies-paid-to-the-members-of-the-112th-congress/
This does not include Congresspeople who receive other direct subsidies (oil, gas, etc).
This does not include corporations like GE that received tax benefits of $3.2 Billions.
This does not include 66% of US corporations that pay NO tax at all. http://www.forbes.com/sites/timworstall/2011/08/16/two-thirds-of-us-corporations-dont-pay-federal-income-tax-true-but-horribly-misleading/
America’s tax system is complicated and slanted.


Obama’s State of Union gets voter’s OK
Polls show that even GOP voters favor Obama proposals. http://www.whitehouse.gov/photos-and-video/video/2012/01/25/2012-state-union-address-enhanced-version#transcript


Women short changing themselves on retirement
Only 8% of female workers believe that they’re building a large enough retirement fund for themselves, according to the Transamerica Center for Retirement Studies. Yet women live longer and thus need income for more years. Women who invest are more confident in meeting future needs. Members use our Guide to plan future: amazon.com/Leahs-Money-Book-control-money/

Romney as 1 percenter pays only 13.9%—Newt at 32%
Romney’s 2010 return shows he received $22 million—much of it is so-called carried interest, which is taxed at the preferential rate of 15% and is reported as a capital gain.
Carried interest is compensation paid to general partners at private equity firms -- such as Bain Capital, which Romney left in 1999. Venture capitalists like Romney put up a little capital and use OPM (other people’s money) to buy a company, reorganize and sell it, taking 20% of the sale price. Partners usually defer as much of their compensation as possible. They invest the rest offshore so they can control taxes. Romney gives over 10% of his income to charity so his tax rate may be less than 14%. Some analysts say his returns have been reworked since he has been running for Pres since 2004. Warren Buffett said, “He makes his money the same way I make my money.” “He makes money by moving around big bucks, not by straining his back or going to work and cleaning toilets or whatever it may be. He makes it shoving around money.”
By contrast, Newt earned $3.1 million in 2010 and paid an effective federal tax rate of about 32 percent, returns released by the candidate on Jan. 19 show. Newt sells books and steers Congress about companies he “advises.” Romney pays tax of $3 mil on $250 million in assets—about 1.2%. Most people pay over 5% of their assets in tax. Median US income is $33,048. The 2011 tax table says this person would pay 15%, just like Romney. Taxing global assets, not earned income, might be the fairest way to tax.


Romney gives lady money after she says God told her to follow Romney bus
And pray for him. SC treasury official pays her light bill.
"God didn't tell me to go to nobody else, He told me to pray for Romney," said Williams, when asked why she has decided to support Romney. "I listened to the Lord."


IRS on smartphones ????
The IRS offers multiple avenues for you to get tax information. If you have a smartphone, we have an app! If you like to watch videos from your phone or computer, we have dozens of helpful YouTube videos…and, of course, follow us on Twitter.
Check out how the IRS delivers the latest tax information, initiatives, products and services through social media.
1. IRS2Go The IRS recently launched a smartphone application that allows you interact with the IRS using your mobile device. Our app can help you get your refund status and tax updates. IRS2Go is available for the iPhone or iTouch and the Android.
2. YouTube The IRS offers short, informative videos on an assortment of tax-related topics through our YouTube Video channel. The videos are offered in English, American Sign Language and a variety of foreign languages.
3. Twitter IRS tweets include tax-related announcements, news for tax professionals and updates for job seekers. Follow us @IRSnews.
4. Audio files for podcasts These short audio recordings provide useful information on one tax-related topic per podcast. They are available on iTunes or through the MultimediaCenter on IRS.gov.


Tax filing FREE if income (AGI) under $57,000 and $10 if over $57,000
The internet has provided the means to efile taxes to IRS and state government for $10 or free. Using IRS list, pick a provider or search the web for software that has no income limit and files the state return too for $10. Using last year’s return most people can figure out what goes where and beat the cost of an accountant. Some of the storefront vendors charge over $50 for a simple return. Avoid online vendors who charge more than this since you are doing the work not them. Members know how to save on expenses so doing taxes can be learned too.


IAN
41 Watchung Plaza, B242
Montclair, NJ 07042
347.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available at http://dankeppel.blogspot.com/

There are two ways to buy financial services in the 21st century

There are two ways to buy financial services in the 21st century

One of my members bought life insurance from the large insurer (Mascot is a dog) before he asked me for help. Frank bought their insurance because the agent said the company is the best. She said, “It is large and will always be there to pay the benefit.” However, is it worth paying an extra $17,970 on your level term policy? There are customer-focused insurers, rated A+, the same as It, charging $384 vs. It’s $983 for the same $300,000 30-year term policy. Frank was wasting $17,970! After reading our Insider’s Guide to Life Insurance, Frank purchased the $384 policy. Investing his savings of $599 ($983-$384) in his Wealth Reserve for 30 years in a market index, Frank may have an extra $175,000 for HIS dreams not the insurers. http://www.theinsidersguides.com/lifins41.html
In the 21st century, there are two ways to buy financial services—the consumer way and the independent’s way. Financially independent people don’t let themselves be sold. They shop for value in everything. They never pay retail. They shop at Costco. They buy used luxury cars. They wait for sales on electronics. They use the Internet to research the price.
Buying vehicles is one of the largest expenses in most people’s lives. Over our lifetimes, we may spend $250,000 or more. Unfortunately, most people take the consumer way and spend 4 to 5 times what they need to for vehicles. One of our members, Denise, bought a car before I met her. Joy bought her car after she read The Insider’s Guide to Vehicle Purchase.
Consumers’ way. Denise took a loan for the full amount of the price. During the paperwork process with the F&I person (finance and insurance), she was persuaded that the gap insurance and window glass etching options were good buys. Instead of getting a lower price, Denise assumed that an extra $25 a month was no big deal. This was the deal she finally agreed to:
Total borrowing: $25,000 @ 16% for 72 months (her FICO score is 610)

Monthly payment: $542.30 Total payments: $39,045.60
Total interest: $14,045.31 Final residual value: $5,000

Denise spent almost $40,000 for an asset that has little value after 6 years. During those 6 years, she could have accumulated a Wealth Reserve of $57,352.04 on the $542.30 monthly payments. Thus, buying the vehicle on time actually cost her $40,000 plus $57,000 she could have had by investing the payments. The car cost almost $100,000.
The real cost of buying a new vehicle is FOUR times the price--Not a great deal.
Independents’ way. Joy had been buying “assets that grow by themselves” with $500 a month for some time. She had been growing her Wealth Reserve. She started her Wealth Reserve by using our FREE Guide at http://www.theinsidersguides.com/freeguide.html.
Independents use their Wealth Reserve balance for all their financial needs. Thus, their Wealth Reserve can earn 10% to 12% over time in stock and bond mutual funds. They can ‘borrow’ $25,000 from their own Reserve or ‘bank’ and pay themselves back by continuing to invest $500 for the 6 years. Joy pays monthly like Denise but to a different account. The $14,045 interest that Denise pays to another bank, Joy compounds in her own ‘bank.’ Joy accumulates about $53,000 during the six years—replacing the $25,000 she ‘borrowed’ to buy her vehicle. The vehicle is still worth only $5,000 but Joy has grown her Reserve by $28,000. Also, because Joy paid cash for a used luxury car, she probably got a lot more vehicle than Denise got for her borrowed $25,000.
As you guessed, the Independents’ way is how financially independent people stay wealthy. They paid their own “bank” and got the car and the extra $28,000 for the same $500 expense.
You can build your Wealth Reserve with savings from each Insider's Guides for: Vehicle Insurance . . save up to $6,000 over 10 years; Homeowner’s Insurance . . . $2,000 over 10 years; Life Insurance . . . $20,000 over 20 years; Lawsuit Insurance . . . $3,000 over 10 years; Health Insurance . . . $5,000 over 10 years; Disability Insurance . . . $5,000 over 10 years; Long Term Care . . . $40,000 over 20 years; Education Funding . . . $20,000 over 18 years; Retirement Spending . . . $1,000s over 30 years; Banking . . . $3,000 each year; Annuities . . . $20,000 in 20 years; Mutual Funds/Securities . . . $3,000 each year; Spending Plan: Reach every goal; Self-Funded 'Bank' . . . $250,000 in 15 years; Vehicle Purchase . . . $10,000 per vehicle; Mortgage Purchase . . . $3,000 per contract; Wealth Reserve . . . $1,000,000 in 25 years; Wealth Transfer . . . $20,000 in 10 years; Living Insurance . . . $120,000 over 20 years; Self-insurance . . . $20,000 over 20 years; Avoid buying 101 products that waste your money.
You can save $3,000 every year by buying the Independents’ way. Shop for financials just like you do groceries. Your agent, banker, broker, money manager and advisor do already. www.TheInsidersGuides.com

Drop your insurance: buy only what you need

This statement is not what you usually hear from an insurance person. However, a new way of buying insurance and all financial services has arrived.

Based upon the model used by businesses, this approach builds on the trend of more of us who must manage our own pensions--401k, 403b and IRA accounts. Even though many of us say we don’t want to manage our own financial futures, we will be better off in the long run.

We are being forced to self-direct all our financial products. Our agents, bankers and brokers have all moved on. Typically, we practitioners of this new “self-insurance” model use our savings to build up our own reserves. This “Wealth Reserve” as I call it is a self-insurance fund I use to cover many risks so that I don’t have to buy a policy for every risk. I built a sizable reserve by buying products “wholesale.” I invest the savings.

Businesses have been doing this for a long time. For instance, most large businesses do not buy health care like we do. They buy it “wholesale.” They pay the claims from their own account. The insurer acts as the administrator—following the employer’s plan to decide it your claim should be paid. The business funds the claim account only to the extent necessary to pay claims. The insurer makes a fee for processing.

This costs the business less because the money to pay the claims is actually part of the working capital of the business. It is not sitting in an insurer’s investment account paying interest before it is needed to pay claims. For large claims, like brain surgery or death, the business buys catastrophic insurance. Some companies have their own (captive) insurer (reserves) to save even more.

How can you use this example? Let’s take homeowner’s insurance. Did you know that many agents purchase the standard HO-3 homeowner’s policy for their own coverage, but with a $2,500 deductible? That policy takes care of 99% of the claims and saves them 20-30% a year. They understand that they need to maintain the property to prevent it from deteriorating faster than it needs to. But by investing that 30% savings each year, they build a Wealth Reserve that earns them interest and will cover the deductible if they ever need it. So, over 10 years, they save $2,000 in premiums and earn interest on the funds.

Taken together for all your risks, you can build a large Wealth Reserve. For instance, we have helped people save over $3,000 a year on financial services, including banking, mortgage, education, mutual funds, securities, annuity, insurance—life, health, disability, long term care, vehicle, homeowner’s, lawsuit, vehicle purchase, legacy, wealth transfer, retirement spending . . . almost any service. Over time, those savings will compound to a $500,000. This fund can be used to pay for your insurance, retirement, and health care needs. Some clients plan to save $120,000 on long-term care insurance this way. Others have dropped their life and disability insurance—placing the premium in investment accounts that compound at the market rate over time.

When I was just 22 and working part-time during college, I was induced to buy permanent life insurance. I later cancelled it when I could not afford the $1200 annual premiums. I was in grad school and taking out loans to finish an MDiv. The agent representing Columbus Mutual probably earned all of that $1200 in the first year. I got little back when I couldn’t make the payments.

The agent did not explain that I would be better off buying a mutual fund instead of insurance. This was probably 1970. By the end of the 1960s there were around 270 funds with $48 billion in assets. No one advised me to invest in mutual funds at that time. My high school and colleges mentioned nothing about the miracle of compounding $1200 a year in a mutual fund at the average market rate of 12% per year. I think I would have paid attention if someone had told me it would be worth $1 million by the time I was 60.

1970 0
1980 $ 23,233.91
1990 99,914.79
2000 352,991.38
2008 933,673.59

There are few financial literacy programs in high school or college even today. Consequently, even in 2006, the Jumpstart Coalition for Personal Financial Literacy found that half of high school seniors failed to answer basic money questions. Schools don’t teach basics of saving, investing, compounding, and getting what you want, so parents are expected to. This leaves the blind leading the blind. Parents teach spending but few are role models in investing with compound interest. The subject they missed the most about was investment in the market.

For Example, question 26. Kelly and Pete just had a baby. They received money as baby gifts and want to put it away for the baby's education. Which of the following tends to have the highest growth over periods of time as long as 18 years?
44.8% a) A U.S. Govt. savings bond
34.8% b) A savings account
6.3% c) A checking account
*14.2% d) Stocks
* correct answer

What a millionaire investor knows about investing that you don’t

The majority of academic research finds that the price of a stock is difficult to predict. However, as a group—the market—stocks have gone up about 10%-12% a year over the long term (12+ years). No one can predict stock levels because there are too many unknowns and too many people chasing the solutions to those unknowns. Most investors have about the same information available at any time. The market of thousands of stocks traded by millions of people is a random system. There will be some prices higher than yesterday and some lower than yesterday. Some people see patterns in the changes in prices but they have not become rich with the information. Most of what Wall Street does—analysis of the company fundamentals and timing the ups and downs of their prices—does not improve your earnings over time. Usually the opposite is true. A Random Walk by Burton G. Malkiel, p. 110-185.

Flipping a coin gives anyone a 50% chance of being right. Some people are better at finding the prices that move up. However, they can’t do it all the time. Thus they describe their talent in gambling terms: “I had a hot hand” or “all my calls went the right way.” Some have become rich from their choices. Investors give money to these people in the hope that they can get rich on their coattails. However, by the time the crowd overwhelms the lucky person, luck has moved to another person. The only people who consistently make money and get rich are the people who supply the means of playing this game. Even though shareholders in the five largest Wall Street firms have lost $74 billion of their equity in 2007, a record $38 billion in bonuses is expected to be doled out anyway. What a business!! They get paid for losing our money.

The investors who do well over time are those who buy companies or their stocks at bargain prices and hold them for a long time. Just like a sale on groceries, people like Warren Buffett defy the odds and buy basic product and service providers (like Benjamin Moore, GEICO, and Fruit of the Loom) when their prices are low. Over time, stocks pay dividends and the price goes up with the general economy. Everybody needs paint, insurance and underwear!

It seems simple. However, many investors come to believe they can beat the odds and outsmart everyone else. Some have. Any corporate officer has access to information about their firm and industry that gives them an edge. Thus people who invest in special situations have a much better chance than we do. It is still a chance. Remember Martha Stewart and her friend Sam Waksal, of ImClone infamy.

In the same vein, most wealthy people got that way by being involved in a business they control. There is nothing surprising about this. If you spend your time improving your profitable business, you will be successful. Eventually you will become wealthy. If you give up, you lose.

However, for most investors, investing in the market itself beats 70%-88% (BusinessWeek 11/03) of the people who are hired to do it. That includes pension funds and the largest mutual funds. Many studies have shown that the average investor earns a paltry 2.57% annually compared with inflation of 3.14% and 12.22% for the S & P 500 index. (1984-2002 DALBARinc.com) Investors chase the past performance of those who claim they have beaten the market. This is the business of Wall Street—selling the dream of wealth. Whether a manager makes money for you or not, you are still charged for their salary and expenses. For more information, see our Guide: http://www.theinsidersguides.com/mutsec41.html

When the market seems to be volatile—talk about recession and economy slowdown and big bubble collapse, we want to take our money and hide it in some safe harbor. We think we can wait out the chaos. We say we will get back in when the market direction is clearer. Advisors have traditionally moved money into utilities, staples and health care. A recent study by Vanguard’s IC&R shows these moves to defensive equity fail to save you. Advisors either mistake the exit signs or miss the rally marking the rebound. By selling, you lock in your loss. The portfolio with a proper mix of stocks and fixed income assets is the optimum holding strategy for chaos. You don’t sell your house when home prices rise and fall, do you?

When millionaires think of selling, they look at their funds and ask if the reason they bought them is still valid. Their long-term goals have not changed. There is nowhere else they can put their money to earn 12%. Even in retirement, moving in and out of market sectors for protection is a loser’s game. Millionaires keep their eye on the chart of stock market growth over the last 50 years. See the inset at http://www.theinsidersguides.com/sifili.html