Your advisor may have outsourced your money management

 

What are the chances of us reaching our goals?

We have a very good chance of reaching our goal of adequate retirement income by just putting our investment contributions on automatic. First, we need to realize that stocks and stock mutual funds are the safest way to reach long-term goals. Historically, a low-cost index of the S&P 500 stocks grows at 11% a year. An example is the Vanguard 500 Index fund which has provided 11.3% annual returns since 1976. Second, TIME invested is the key to success. Over 33 years, our $250 a month, $99,000 total investment accumulates to $1 million total. Third, Compounding over time is the miracle that turns our $250 a month into $1 million. Compounding only works for us if we don’t trade in and out of the market—we “buy and hold.” Fourth, we can set our spending in retirement so we never run out of money. We can determine how long and how much we can spend later in life using a Monte Carlo simulation of 100,000 market situations.

Let money work for you not your advisor: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

 

What should we do when the stock market goes down?

This is the time when most people fail to reach their goals. But take a hint from the wealthy—don’t sell when the stock market falls. Rich people don’t sell when the ‘price’ not ‘value’ goes down. They know the ‘price’ will rise again if they have purchased ‘value’—solid business assets—either their own business or their stocks/stock mutual funds. In fact, the wealthy like Warren Buffett react to a market adjustment by buying; not selling! Stocks are on sale. Since most of us don’t have a ton of new money when the markets go down, we must just grit our teeth and “hold” on to what we have. Over time companies with value will increase in price. Check for yourself: enter 1970 to 2020 in this chart and compare the rise in value of $1. From 1970 to 2020, your $1 increased to $183.71. Some years you lost 37% but some years you gained 38%. Over time the annual increase was 12.19%--a positive increase. Don’t sell. Your $1,000 annual contribution to a tax-deferred account would be worth $3,986,886.77 or your $3,000 annual contribution would be worth $1,034,853.69 in 30 years.

Just buy and hold: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement

 

Your advisor may have outsourced your money management

Did you notice during the pandemic that your requests slowed and then speeded up? During the crisis, advisors responsiveness was taxed. Instead of making you wait longer for services or changes in your portfolio, large firms sent trading and asset change requests to others or computers using standardized models. Using new models-based products, advisors may have found an answer for more profits. By applying “pre-set investment models to investors at scale, advisors have been able to delegate less differentiated services, such as trading processes, to trusted third parties, allowing them to instead focus more directly on client service.” In doing so, not only can they save time and energy, but they can also limit vulnerability and reduce strain on the process [read costs]. Thus you may be paying for automated services/products that you can receive from a Robo at a QUARTER the cost.

Hey, you pay the fees: https://www.amazon.com/Pimps-Wall-Street-money-middlemen/dp/151525254X

 

 

“Only little people pay taxes”

Trump’s employees are now under investigation for not paying their taxes. Trump is not. Trump has made it his life’s work to not pay taxes. He boasted in the debates, “I’m smart” to not pay taxes. He believes like Mrs Helmsley that “only little people pay taxes.” Those who have money have hired the smart accountants and lawyers to design their empires in such a way that they themselves don’t pay much of their income/assets in taxes. We are the ones who pay most of the taxes because the American system was built on taxing payroll income taxes—and even taking taxes before we leave work on payday. The wealthy don’t live on normal income. They have worked the system to take revenue as loan proceeds (0% tax) or capital gains (0%, 15% or 20%). For instance, Warren Buffett, one of the wealthiest Americans, pays only 17.7% while his workers pay double: 32.9%. Trump pays less or nothing because his consultants use tax tricks to help him avoid his fair share. For instance, his return claimed a tax deduction of $21 million for promising not sell the trees in his backyard. The IRS would fine you if you tried that.

Use your tax-FREE account: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

 

Will the new taxes on the wealthy hurt us?

If your family is using a ‘dynasty trust or ‘generation-skipping’ trusts, you should worry. These vehicles that wealthy families use to benefit multiple generations of descendants are being targeted. These tools are used by the top 0.1%—trusts that can move millions, and sometimes billions, of dollars to heirs tax-free. Biden’s plans to make heirs pay more, equalize rates between investors and workers, and boost taxes on corporations and the wealthy by raising rates on low-tax offshore entities, will take time to execute. Meanwhile the wealthy have their specialists working to create new ways to avoid taxes. Those who recently moved to Puerto Rico to avoid taxes are getting letters already. Congress will no doubt try to thwart Biden’s efforts to boost capital gains taxes on the wealthy to ordinary income rates, and to tax gifts and large unrealized gains at death. The final language in any tax bill will be up to millionaires in Congress, and, assuming legislation is eventually enacted, some details might not be even settled until the IRS issues regulations. Our tax situation should not change much—unless you moved to PR.

Start saving tax-FREE: https://www.amazon.com/Pay-No-Taxes-Retirement-legally/dp/1507527977/

 

How to save on homeowners insurance

After you receive your coverage, insurers are unlikely to cancel unless you don’t pay premiums, have too many claims in 1 year, or change your liability profile. Certain dogs, pools, backyard play equipment and hidden businesses are common reasons for cancellations. Flooding is becoming more of an issue in costal areas. Even Trump a climate denier is fortifying his ‘house’. Maintaining your home saves big repairs and the possibility of insurer concerns. I got a notice from my carrier because the sidewalk is uneven. I pointed out that every sidewalk in my town is uneven. I also had to cut down the 200 year old oak in the front yard since it was losing limbs—3 in one year—unsafe future. And NO you can’t deduct your insurance premiums from your tax bill despite what 49% of us think. Only Trump can deduct his premiums and new seawall because he lives in his hotel. Save on financial services by shopping for essential coverage.

Ask for your possible discounts: https://www.amazon.com/Save-3000-every-year-Only/dp/1500681571/

 

Is a religious health care plan right for you?

You may have heard about health care sharing ministries. These are nonprofits with religious overtones that look and sound like health insurance, but rely on contributions of its members to cover fellow members' medical bills. They promote these plans as cheaper than for-profit health insurance. However, if you ask, these plans don't have to follow health insurance regulations, and thus can exclude pre-existing conditions and anything they feel is immoral or too expensive. You many be left with $thousands in unpaid bills because unforeseen things happen. HCSMs are not under a contractual obligation to pay members' medical claims. It is voluntary and you must negotiate the costs of care. Real health care insurance is obliged by law to pay all your bills for covered illness/accident. The current law prohibits health plans from putting annual or lifetime dollar limits on most benefits you receive. With ACA ObamaCare subsidies and no mandate, you are better off using a local network provider of your doctors at contract prices.

Buy what you need: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

 

How to achieve financial independence on a worker’s wages

Financially independent: the ability to reach all your financial goals. To be free to pursue what is really important to you. Warren Buffett and his partner Charlie Munger have been operating independently for over 50 years. They recently explained: “We made a lot of money. But what we really wanted was independence. And we have had the ability since pretty much a little after we met financially we could associate with people who we wanted to associate with. We’ve had that luxury now for, you know, 60 years or close to it. And, and that beats 25-room houses and, you know, six cars or that stuff is, what really is great is if you can do what you want to do.” Money helps you do that.

True freedom is the ability to control how you spend your time.

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

 

 

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

 

 

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

 

 

Our Jan 6 ‘Truth and Reconciliation Commission’

 

Pied Piper leads terrorists to jail

 

535 terrorists charged; 300 more

 

How Govt wastes our money:

Trump can still evade criminal and tax outcome: skilled at deflection to others: BIG con

Some states don’t want children to learn about institutional racism: What to fear?

Half states see rise in Covid cases: deaths only in unvaxx victims now: Proof vax works

 

Mo Brooks (R-Ala.): I can’t be sued for inciting the coup because I’m an employee.

147 GOP who voted to overturn the presidential election and fueled the insurrection

NJ to exclude more retiree pension income in 2021: $100-150K gets partial tax break

 

New state taxes July 1 for incomes and gas and sales and other: Read small print

Wealthy contributors tell Congress NOT to pay for more IRS auditors: “audit the poor”

 

 

SCAMS/SPINS:

Vatican indicts 10 for financial crimes: but NOT 1700 for sex abuse of kids  Values?

 

Tyson recalls ready-to-eat chicken products due to possible Listeria contamination

Chips are the new oil: takes years to produce more and firms reset after Covid changes

 

11 armed terrorists “who don’t acknowledge US laws” fled police ‘Moors’ captured 

SCAM: “free” genetic testing kits that allegedly screen for heart conditions or cancer. 

Marlon LaShonda Moore “Blessings In No Time” caught pyramid: said ‘8 times’ return

 

Securities America failed to stop Hector May stealing clients’ $8 million; fine no jail

Terrorists use disguise of a Bible study group to build supply of explosives to kill Pelosi

John Robert Jones Jr GA caught selling unregistered funds lost clients $2.6 million

 

Drug pusher Sackler pays $4.5B suit for killing 500,000 from opioids: lawyers win

 

Biden trying to hide windfall from son’s “art”: new way to make contributions?

Trump terrorists still plan to return him to WH by August: planning a WH ‘tour’?

TX deputizing citizens, including outsiders, to stop abortions: medical vigilantes 

 

Jobs

U.S. jobs gain largest in 10 months; employers raise wages, sweeten perks: that’ll do it

Russian ransoms earn $70 Million as companies fail to backup/secure passwords.

Slave labor for the NY wealthy: no one to do lawn, iron, comb, cook, dress them

 

Who owns your account now?

No, you don’t have to use Win 11: you won’t have to buy a new computer either

Consumer Reports: Appliance reliability ratings: fridge, dryer, washer, micro, etc

Air Force will pay 26 victims’ families in 2017 TX church killings

 

Gun maker and seller sued for teen shooter’s crime: our insurance rates up

Surprise: What Did You Earn At Your First Job?  60 years is a long time to wait

 

Miracles:

At age 12, Abhimanyu Mishra became the youngest grandmaster in chess history.

At age 3, National Anthem done right: https://www.youtube.com/watch?v=txSuj0GJT90

 

 

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/

 

 

How much do you have to save/invest for solid retirement income?

 

Do you feel you should be doing something with your investments now?

All the things I hear and read say our economy is bursting out of a depression from millions of folks being out of work and out of money. The Fed controls the money supply and they don't see inflation. It is still supporting business by buying their bonds--giving them money to survive and expand. When you begin flying again, so will everyone else. The hospitality biz will explode with all that pent up demand from lockdowns. Authors are selling books on the fear of a bubble. No one knows the future. Readers expect the market will go down and up in the next few years, but unless you plan on taking out all your money now so you can go live on an island in the Pacific, what do you care? Let's say it goes down by 10% for a couple of years. You will need your money for another 20 years. So it will grow back and give you even more for the 10 years hence. Don't worry about the market. Look at the big picture: click 'max'

https://www.google.com/search?q=vanguard+500+index+fund+graph&rlz=1C1CHBF_enUS899US899&oq=vanguard+500+in&aqs=chrome.8.0j69i57j0l8.23884j0j15&sourceid=chrome&ie=UTF-8 If you are age 65-85 I would suggest you still keep 50% in stocks because you don't know how long you will live and still need more money. IF inflation was 7%+, then you might be better off in CDs paying 8% but that won't happen anytime soon. When you start to worry about a market ‘bubble’, go back to the chart above and think what you would do if you sold at the bottom of the 'V' of Mar-Apr last year. By Sept you are back on track. If you had sold then, you would have kicked yourself from missing a jump of 50%--212 to 320 by Sept. 

Ignore the fortune tellers: https://www.amazon.com/Money-Ball-Investing-Winning-unfair-market/dp/1548831409

 

How much do you have to save/invest for solid retirement income?

Myth: you only need to save “10 times your income” to retire. This is a true and a false statement. When you start investing, type of investments and how long you let your money grow are the important factors. Readers have started investing with $250 a month by age 25 ($99,000 total) and end up with $ millions in retirement. It is possible to invest only 10 times your income but that assumes you invest in stocks early in life. Saving for retirement with bank CDs will cost you a lot more than 10 times income. Folks who start at age 55 will need to invest much more than 10 times income. Use this calculator to see how much you will accumulate in 20 or 30 years at 2% from CDs vs 10% from stocks: http://www.moneychimp.com/calculator/compound_interest_calculator.htm. $99,000 grows to $600,000. It is compound interest that makes you rich. And don’t forget taxes. Saving in your employer plan is tax-deferred not tax-FREE so you may pay 12% or 22% on your money along with up to 85% of your SS benefits.

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

 

Reader’s choice investment for 2021

As we climb out of this economic and social malaise, our readers are eager to get on with their money goals. Managing money goals has been difficult. Some have had to take money out of their savings to live on. Some have had to stop saving entirely—there was no money left after expenses. Some employers stopped matching savings or paying a bonus that went to savings. Now readers are more cautious and need to make sure that their saving/investing Dollar will be effective. It is time to go back to basics: a broad mutual fund with both stocks and bonds provides growth and protection from market correction. And because taxes are likely to go up, a low-cost tax FREE account provides another layer of protection. An employer Roth 401k or personal Roth IRA with a low-cost “balanced” fund fills the need. Your best deal may be the Vanguard Roth IRA with Target Date 2055 fund. With 0.15% expenses and $1,000 minimum, you keep more of your earnings than if you paid someone 1-2% each year. You would earn over 11% over time instead of 9% from an advisor. You don’t need a money manager to rebalance your portfolio from stocks to bonds for retirement income. Start income anytime.

It is automatic… and tax FREE: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

 

Is living on your investment income right for you?

What happens when you retire early and live on your investment income? You can spend much of it extravagantly or try to beat the market with one “future” Apple or Amazon super stock purchase. But like most lottery winners, you might lose most of your retirement nest egg in a few years. Inexperience with money makes people think they are invincible. Readers who grew their $1 million retirement fund by investing systematically every paycheck look at money differently. They appreciate the freedom it gives them to live on their interest and dividend without worrying about tomorrow. This is what many do: most years their low-cost diversified stock and bond portfolio (balanced funds) produces over 10%. They pay all their expenses from the SS benefits and pensions they receive. That 10% or $100,000 income supplements other activities like travel, gifting, business, family. A well diversified portfolio of funds has provided many readers with over 11% per year. Readers use the annual earnings over $100,000 (11-31%) to build a Wealth Reserve. Any year they earn under $100,000, they cut spending or they sell a few securities. They use their Wealth Reserve to buy cars, vacations, whatever they want.

Build a Wealth Reserve: https://www.amazon.com/Your-Wealth-Reserve-Save-year/dp/107028288X

 

Is a non-traded REIT (real estate investment trust) right for you? 

This security is useful to folks who want to diversity their holdings into real estate over the long haul but it is not guaranteed. It comes in 2 flavors—private and public. Public shares of these securities are sold by a manager for a fee. Their value and dividend yield doesn't fluctuate daily with the stock market. Non-traded REITs typically have long holding periods. So it's much harder to cash in these non-traded ones than the traded version. The fees can add up too. Non-traded REITs have historically charged investors an upfront fee of as much as 5% of their initial investment. It may take a long time to offset the original and annual fees to the manager who get paid from the revenue BEFORE you do. If the shares you buy own poorly-run or highly-mortgaged commercial buildings, you may earn less than a bank CD. You have no control over the manager’s asset choices. Managers often boast of returns higher than the stock market index so examine the period they chose in the offer. See returns since 2001.

Pick better diversity: https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373

 

 

How insurers calculate your auto premium

Insurance companies make money two ways: earnings from your premiums and NOT paying excessive claims. Wise investing means matching their liabilities to their assets. They know how much they will pay in claims each year and invest enough in short term instruments to match. They don’t lose money if they insure only good drivers. Good drivers don’t take risks: good credit scores usually match good neighborhoods and better jobs, males have more accidents especially if they are single and older folks have more to lose than the “invincible” young. If you enjoy speeding and driving to your favorite watering hole, you might have to pay more. Some insurers think they understand some drivers better than others so they lower their premiums: GEICO, AARP, AAA is anexample. You have to shop every 5 years to learn which insurer is best for you.

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

 

Avoid future taxes like the wealthy are doing now

Accountants and advisors to the rich are preparing their clients for a tax increase. We can avoid taxes too. Even though we don’t have the resources to go off shore, there are ways to save on future tax liabilities that don’t cost a fortune. The 2017 Tax Cuts and Jobs Act isn’t set to expire until 2026, but lawmakers may opt to hike taxes sooner. The current political climate is forcing high-net-worth folks to hedge against rising taxes—now. For high earners, the two most common strategies are investing in Roth 401(k)s and Roth conversions and investing in managed portfolios in health savings accounts (HSAs). The wealthy are also using ‘overfunded’ life insurance. In addition to providing tax-FREE growth, policies can be structured to offer policyholders the option to buy property, cars, and other large purchases from themselves while retaining unlimited access to policy principal. You can have the best of both worlds too.

Start now: https://www.amazon.com/Tax-Advantaged-Wealth-mutual-funds-Tax-FREE/dp/1481215906

 

Is your advisor “shrinking to grow”; dropping you?

Advisors are canceling accounts and that could mean you. The best advisors make more working with their most wealthy clients ONLY. If your advisor is leaving their big firm to start their own, they many not want you with them. Unless you have a lucrative pay package for your person, you may be left with the old firm or left out in the cold. Instead of paying another unknown asset manipulator, ask yourself what you really need. You may be better off using a low touch, low cost online Robo. In the last decade, Schwab and Fidelity have slimmed down because most people don’t need a full service provider. You may be better off at Vanguard, where you can get help whenever you ask for it for 1/4^th the cost. Some of my AARP tax aide clients have brand-name firm accounts that charge $ hundreds to provide nothing more than dividends and tax-advantaged mutual fund reports. Paying $200 for a broker to sell a few shares for a $20 gain is a waste of money. The client did not know why the sale took place but they had to pay tax on the transaction.

Low cost beats high cost every time: https://www.amazon.com/Lies-Financial-Advisors-Told-me-better-alternatives/dp/1478281545

 

 

Where is that refund?

The Internal Revenue Service today reminds taxpayers that the most convenient way to check on a tax refund is by using the “Where’s My Refund?” tool at IRS.gov or through the IRS2Go Mobile App.

Where is the stimulus 1 or 2? If you did not receive stimulus 1 or 2, start filing here: https://www.irs.gov/newsroom/recovery-rebate-credit

 

Have tax forms; will file … for FREE but WAIT . . .

If you have unemployment income, ObamaCare coverage you should wait to file since the IRS has not yet implemented tax-FREE provisions of the new Covid law. Taxes due MAY 17 not April 15. Input the W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. forms you have. You can file for FREE online. If you didn’t receive a correct form, file a Form 4852.  Usually filing your state return costs as little as $15 unless you buy the Pro helpline. Avoid $300-400 paid preparer fees—new IRS forms mean higher fees. Unemployment insurance is TAXABLE on the Federal income tax return; not on some state returns. Some states do not tax your SS and pension benefits. Retirees did not have to take their RMDs in 2020 so taxes may be less: it was a good time to convert IRA to Roth IRA for tax-FREE future. Unless you were self-employed, you can’t deduct home office expenses of working from home. Some states continue the health insurance mandate and penalty unless you have an exemption. Since the IRA contribution deduction has no age limit now, you may reduce your income/taxes by making a contribution of up to $7,000. The standard deduction went up to $12,400 single; $24,800 joint. Jan 15 last day to make 2020 estimated payments. You have to report your April/May and December/January stimulus payments even though they are not taxable. Some of us receive a bank credit; some a debit card; some a check. Even if you don’t have to file, you should file so scammers can’t use your SS number to mess up your IRS file. Tested E file software ratings. Efile Jan 15; IRS processing Feb 12.

E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

 

 

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

 

 

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

 

Trumpists limit Black/Hispanic voting

 

Our ‘Truth and Reconciliation Commission’? 

 

 

How Govt wastes our money:

Trump avoids taxes by $21 million deduction on his NY ‘forest’: we pay 33% he pays 0

Biden’s tax planners must end deficit spending: Trumpists’ tax breaks dig deeper hole

Wealthy broke IRS audit code: rich underreport their income far beyond what is known 

 

Congress takes 2 weeks at taxpayers’ expense but they don’t ban guns of war on people

We buy more vaccine but 40% don’t want it: WHY: 550,000 dead already. Still Hoax?

State GOP building walls against American voters to assure Trumpists win 2022, 2024

 

SCAMS/SPINS:

The greatest enablers of these domestic terrorist enemies’ are within Congress

GOP allows our stimulus money to be taken by bill collectors: industry lobby pays them

AVOID TX:  FBI concern that radical ideologies are going mainstream in North Texas

 

QAnon now pushes alarming conspiracy myths targeting China and Jewish people

 

Mormon Church caught fraud: used donation to run businesses: tax exempt jeopardy

 

Ronald Stevenson Jason Wootten caught Ponzi in EquiAlt 100+ investors: class-action

UBS questioned by court: helping clients launder funds via numbered accounts/trusts?

Stein, Corey Agee caught tax fraud: over-valued land deducted as conserved; Trump tried

 

John Spiller Jakob Mears caught billion Robocalls sell fake health insurance: fine, no jail

DNA tests like palm-reading: you can read anything into what they find

TV antenna fakes caught promising cable channels: no free lunch

 

USC to pay $1.1 billion to former patients of campus gynecologist George Tyndall

Gwyneth Paltrow’s health remedies claims under attack: NOT inflammation treatments

UV Sanitizer USA NOT sanitizes and protection against the coronavirus in secords

 

Supplements do NOT “the best treatment for depression, anxiety and stress”

Covid mutants may keep us in masks for years: new normal?

Good News: 70 percent of adults age 65 or older have received at least one dose

 

CA bans misleading adverts that divert us from content to sale w/o explanation

Video fakes change our perceptions: Biden not pretending to be president

CO shooter used an Automatic Rifle: kills 10 in secords: gun totters can’t draw faster

 

IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.

IRS: Free special ID protection PIN goes on your return so scammers can’t take refund

IRS: Previous tax returns available online: https://www.irs.gov/individuals/get-transcript

IRS tips to avoid scams: https://www.irs.gov/newsroom/tax-scams-consumer-alerts

 

Is it a scam?  Check AARP scamline 877.908.3360. BBB Scam tracker

 

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

Find tax preparer: https://www.irs.gov/tax-professionals/choosing-a-tax-professional

 

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

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

 

Jobs

Job scams: Before submitting an application, verify there is really an offer: Never SS#

 

Who owns your account now?

BEWARE: trusting media gurus or “successful” financial advisors can be dangerous

 

Miracles:

Asian woman, 75, beats back man who punched her: turn other cheek to racism?

Science: we do not know what 95% of the Universe is made of: new particles found?

Earth just missed meteor crush: we are lucky to be alive today

 

summer has increased by 17 days on average across the globe: soon, hot half a year

 

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/

 

 

Is avoiding the 2020 401k withdrawal tax and penalty right for you?

 Is avoiding the 2020 401k withdrawal tax and penalty right for you?

The CARES Act waived that penalty for up to $100,000 in withdrawals. Plus, the income tax on this money could be spread over a three-year period. You could put the money back (rollover) that money over a three-year period without any tax penalty. The IRS provides clear answers to questions related to this in its CARES Act FAQ. Since this could get complicated (along with other tax changes) you might want to pay the $300-$500 for someone to do it right. Be careful. Not all the kicks have been ironed yet. The IRS has not finalized the forms for these new strategies yet. You may want to take the extension and pay what you think you owe before April 15, just in case. You might need the extension but the IRS wants their money now. If they owe you, you are just losing interest for 6 months. Don’t consider the ‘file and amend’ strategy. The IRS still hasn’t opened the mail from 2019 returns.

Future income can be tax FREE: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976/

 

Is the new $1,400 stimulus right for you?

The cut-taxes for rich and cut-benefits-for poor Trumpists have limited the stimulus recipients and cut fed unemployment from $400 to $300. Manchin D-WV did not want to give his folks an extra $100. However, Dems got to eliminate some income from taxation: $10,200 unemployment NOT taxable. Some states, including Maryland, Delaware and Arkansas, have already enacted policies to exempt unemployment benefits from state income tax. The bad part of this is that some Dems want to be deficit hawks. Fearing giving people too much money to get the economy going, they limit the stimulus to earned income under $75,000 and $150,000. The Child Tax Credit was increased for 2021 but again for fewer families. Result: taxpayers with large families who earn about $150,000 ($75K per spouse) can experience a marginal tax rate in excess of 100%. Since most Congress people are millionaires or more, they can’t understand why people would need more income at a time when there are fewer jobs. As anti- and pro-Trump McConnell said, “people won’t work if they receive a one time stimulus of $1,400.” You know, when Trumpists take off their masks, they get weird ideas. McConnell’s wife, former head of Transportation was using her $50/hour office staff to do personal shopping/errands. Yet her family was against $15/hr wage. Go figure!

Stimulus law: The American Rescue Plan Act which is now going through the legislative process includes a provision to forgive any Advanced Premium Tax Credit repayments for 2020. This is the ObamaCare subsidy you may receive to help pay for health insurance. Biden promises bank credits by April 1. Checks take longer. If IRS does not have your bank account, you may have to open an IRS account.

Our form of socialism: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

 

How the media distorts the laws of investing

Headline: Elon Musk lost $27 billion last week

This fake news leads many savers to give up trying to save for retirement. Many working people don’t invest in the stock market because they read this headline and fear equity investing. Instead, they buy only bank CDs or other fixed income tools. They earn 1-2% and so their retirement money never grows to provide a reasonable retirement income. If compounding was taught in high school, more working people would invest in stocks. If students and adults saw this graph or read this chart, they would know how to build a comfortable retirement. Mr Musk did NOT lose $27 billion last week. He did not lose a cent because he did not sell his stock. It is TIME not fast trading that builds wealth. Example: one of my family members pays his advisor 1.5% a year to ‘invest’ his life savings for him. He adds: “I don’t want to lose money.” So his advisor buys fixed income products paying 1-2%. Then he complains to me that his funds never grow very much. The advisor tried to explain that even bonds can lose money. Response: I don’t want to lose money. This is all I have.” Media distorts: Today Mr Musk ‘made’ $25 billion. No he didn’t. The price of stocks fluctuates but over time total value doubles every 7-8 yrs.

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

 

Two Americas: while shops small biz close, rich get richer

40% of upper-income adults said their financial situation improved in the past year, compared to one-third of lower income counterparts who said their finances worsened. Pew Research shows the rich added to their assets since they couldn’t spend as much and they use Compound Interest. Employment losses concentrated in lower-paying, lower-skilled jobs that were non-essential and couldn’t be done from home, such as in some food services jobs and hospitality. Women have also been more likely to suffer job loss and financial hardship during the pandemic; women, adults aged 18-29 and lower-income workers were more likely than other groups to have taken unpaid time off in the last year. Of course those who need to build savings and retirement income funds have had to stop, pitching them deeper into the financial hole. Climb out with a tax-FREE account.

https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

 

 

Is taking control your own pension right for you?

Some Retirees Get Only 30% of the Pensions They Earned Despite Federal Guarantee. Shocking: Small employers typically cannot afford a separate pension plan so they band together to administer a group plan. However, smaller firms are more likely to underfund and/or go bankrupt so there are fewer funds left to pay employees who have earned their pension. Most pensions are guaranteed by the Feds but at much less than the original expected value. The COVID-19 Relief Bill May Fix That. Today, more than 10 million workers participate in multi-employer plans, with about 1.3 million in plans that are fast running out of cash. Only those plans that are in critical condition will receive cash infusions, giving managers an expected 30 years to put the plans back on solid financial footings. The Labor Department defines critical plans as those that are expected to run out of money in 20 years or less. This strategy requires the employers to reimburse the RBGC for their employees’ pensions. Some firms may decline. Workers may have to go back to work since their pensions may be less than $11,000. SS benefits are also due to be cut by Congress by 2034.

Use an IRS Tax-Free account: https://www.amazon.com/Forget-Social-Security-Medicare-Lifestyle/dp/1466394285

 

 

Have tax forms; will file … for FREE but WAIT . . .

If you have unemployment income, ObamaCare coverage you should wait to file since the IRS has not yet implemented tax-FREE provisions of the new Covid law. Input the W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. forms you have. You can file for FREE online. If you didn’t receive a correct form, file a Form 4852.  Usually filing your state return costs as little as $15 unless you buy the Pro helpline. Avoid $300-400 paid preparer fees—new IRS forms mean higher fees. Unemployment insurance is TAXABLE on the Federal income tax return; not on some state returns. Some states do not tax your SS and pension benefits. Retirees did not have to take their RMDs in 2020 so taxes may be less: it was a good time to convert IRA to Roth IRA for tax-FREE future. Unless you were self-employed, you can’t deduct home office expenses of working from home. Some states continue the health insurance mandate and penalty unless you have an exemption. Since the IRA contribution deduction has no age limit now, you may reduce your income/taxes by making a contribution of up to $7,000. The standard deduction went up to $12,400 single; $24,800 joint. Jan 15 last day to make 2020 estimated payments. You have to report your April/May and December/January stimulus payments even though they are not taxable. Some of us receive a bank credit; some a debit card; some a check. Even if you don’t have to file, you should file so scammers can’t use your SS number to mess up your IRS file. Tested E file software ratings. Efile Jan 15; IRS processing Feb 12.

E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

 

 

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

 

 

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

 

White Supremacist admitted killing

 

FBI: 2 Terrorists ID on Finnish website

 

Our ‘Truth and Reconciliation Commission’? 

 

 

How Govt wastes our money:

8 Dems think we can live on $7.25/hr: Taxpayers must subsidize folks at $7.25/hr to live

Supremes still giving Trumpists chance to overthrow our government: wasted taxes

$1.7 TRILLION for broken jets: not a dime more for job seekers: GOP votes down folks

 

All agree: kids should be in school: how safe are rooms built w/o ventilation in ‘30-40s?

 

SCAMS/SPINS:

Terrorist leading Jan 6 coup attempt claims our justice system is “not fair.”

The hunt for all the terrorists in the attempted coup: which killed Capital police?

Trump sued for Jan 6 “injury destruction”: drain wallet to stop further incitements

 

More choice: Biden Republicans: Not Trumpists not Dems: RINOs?

GOP/Trumpists trying to exclude Dem voters so they can win: GOP hates fair elections

State GOP make laws reduce voting access just like China new vote law for Hong Kong

 

GOP makes it a crime to distribute food and water to voters waiting in line: Deperate!

Trump has already requested a mail ballot: GOP make rule: Dems can’t do the same.

Trump demands Trumpists remember Trump created the Covid vaccines for Trumpists!

 

Trump cancels Republicans from his GOP: “You’re fired from GOP, you RINO”

Trump wants fees for name use: GOP can’t use name for donations; he wants the money

Old GOP party can’t make it without Trump: Trumpists will pay his debts not GOP

 

Trump is trumped by one of his trumped-up tax tricks: same law that got Al Capone

 

Mistakes in credit reports: denial of credit, housing or employment” Bureau ignores fix

LOOK OUT: Advisors/brokers get to use “testimonials” May 4: McAfee is example

John McAfee caught fraud, money laundering; promote cryptocurrencies w/o disclosure

 

Charity Fraud Telefunding closed: fake charity calls: one down; hundreds to go

Fake news is easy to make and share: check sources: remember pizzagate murder attempt

Get rich quick schemes prays on out of work: Mary K takes your money before you sell

 

Oportun a small-dollar lender caught suing borrowers w/o proper disclosures

 

What is a living wage? $7.25 requires our survival help: SNAP, CTC, EIC

 

BEWARE: Visit no Covid regs states at your own risk: Map of states to avoid

Biden disses Neanderthals: insult our ancestors in comment on TX MS

Is racism learned or are we born with it? Dr Seuss book teaches kids who is scary

 

Kyle admits killing but says not white supremacist: Supremacist lawyer sues Biden

TX MS no masks policy leads to more deaths: 570,000 by April 1?

TX power system can’t upgrade for cold weather: biggest cooperative bankrupt; owes $$

Car insurers caught withholding refunds for less driving: GEICO raised my rate instead. 

Which insurers give you the best rate: get 3 estimates since average is NOT your need.

 

Restaurants saved: Insurers fear business interruption claims must be paid: Covid closure

Finally, colonoscopy really FREE even if they remove polyp: no surprise $ 200 charge

 

IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.

IRS: Free special ID protection PIN goes on your return so scammers can’t take refund

IRS: Previous tax returns available online: https://www.irs.gov/individuals/get-transcript

IRS tips to avoid scams: https://www.irs.gov/newsroom/tax-scams-consumer-alerts

 

Is it a scam?  Check AARP scamline 877.908.3360. BBB Scam tracker

 

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

Find tax preparer: https://www.irs.gov/tax-professionals/choosing-a-tax-professional

 

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

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

 

Jobs

Graham just wants to win with or without Trumpism: say whatever you want to hear

More GOP/Trumpists quit: 20 GOP seats are up in 2022; 5 of them will be open ones.

Can Trumpists pay off The Leader’s debts: $1 Billion before back taxes: His buildings

 

H1B Lottery today, doling out immigration visas for foreign workers for 2022

Get vaccine in CA by volunteering: Stop waiting for your turn.

Computer artist sells collage for $69,346,250: cut paste digital NFT based artwork.

 

Who owns your account now?

Don’t make your family go through all this: Aretha left no will, no 2 wills, big tax bill

Toyota Land Cruiser is engineered to last at least 25 years: more 200K mile bargains

Homeowners insurance claim satisfaction ratings: MetLife down to Homesite

 

JPMorganChase will discontinue its Chase Pay digital wallet 3/31

 

Miracles:

Kane Tanaka age 118 plans to open Olympics in Japan: who said you’re too old?

20% of asymptomatic people who test positive for COVID-19 won't get ill

Alzheimer’s pill could stop disease in its tracks, human trials to start

 

63% of those who prefer crunchy peanut butter describe themselves as optimists

Too much money; too few brains: $14,000 for Britney’s bubble gum. Really!

Afghan woman minister leads the reforming of police: overcoming male rules

 

Extension of mortgage Forbearance and Foreclosure Protections 

Most parents will get checks July-Dec for $250 to $350 per child. Your tax credit

 

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

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