Double the value of your investment dollars

 

How can you double the value of your investment dollars?

How do working people earning average salaries prepare for retirement by building a $1 million fund? For most of us, there are three simple steps: tax-deductible paycheck automatic savings, employer matching funds, and compounding interest. Compounding happens when you leave your money alone in a low-cost S&P 500 stock fund to make money on itself. You can earn 11% a year. Many employers offer to match your retirement fund contributions. It is free money so take it. Using a 401k, 403b or other tax-deferred plan including an IRA allows your money to grow without current taxation. Thus contributing $250 a month—$125 per pay period—can easily grow your fund to over a million dollars by the time you retire.

Never too late to start: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513

 

Only self-employed can deduct expenses of a home office

That is the federal rule but 7 states allow some deductions for work from home. You may deduct some expenses from a home office if you are a rideshare driver or an online retailer. If this is a new category of work for you—Uber, Lyft, delivery driver—you should rely on an experienced tax preparer for your return this year. If you started any type of non-paycheck job this year after being laid off, you may be able to claim many expenses in pursuit of income. Likewise your online retail store expenses including the space you use to manage your store may be deducted. You may not make a profit this year. Your business loss may offset some of your other income like unemployment compensation and Covid related sick time pay. Many businesses received loans that may not have to be paid back. However, the paperwork is complicated. Unfortunately, you can’t avoid all income taxes like our former president.

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

 

Is a credit monitoring service right for you?

Most of us are not victims of ID theft because we know not to give out info to thieves who send us fake emails, calls, and texts tricking us to give them our personal data. The most popular currently is the fake IRS message asking to confirm our information. It takes months to clear up the results of a stolen ID: fake purchases, fake bank debits, etc. So a profitable industry has worked on our fears to take our money in the form of promises of protection. Some even claim they provide a $1 million in protection—for a price. However no paid service can stop an ID theft—we only know AFTER the event. There are free monitoring services: CNBC Select ranked the top credit monitoring services and top identity theft protection services. CreditWise® from Capital One ranked as the best overall free service for credit monitoring because it offers dark web scanning and social security number tracking, plus a credit score simulator tool. Identityforce.com ranked as the best overall identity theft services for offering the most extensive security features that monitor your information on the dark web, court records and social media. While freezing your credit can protect you, the simplest way to learn about fraudulent activity in your name is to sign up for a credit monitoring service. It immediately alerts you of any potential danger. Then you can take action before the ID thieves can hurt you. You can get help at https://identitytheft.gov/. 

 

Have tax forms; will file … for FREE

W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. If you have all your forms, file for FREE online. 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

 

Where are the great financial advisors?

No where and every where. It depends on what we expect from them. Some of us pay a lot of money for advice—over 63% our potential lifetime earnings in costs, according to John Bogle, founder of Vanguard. Others feel that they would have lost all their savings if it were not for their advisor. Others went to a financial planner and paid a one time fee (like buying a will). They have a complete plan for their future financial needs. Most advisors are not brilliant product analysts so they rely on their firms’ ‘select securities and products.’ That is what marketing is for—products are “sold not bought.” Most advisors are sales people by necessity. Firms need profits and advisors DRIVE our money into their firms. If advisors bring in a lot of money, they stay. Maybe you don’t need an advisor who takes your earnings every quarter. You may need an unbiased advisor that works for a fee, not commission. Like a good car mechanic, they don’t try to sell you on a transmission flush when all you need is an oil change. Car makers don’t recommend flushes. As a former sales manager, I paid a financial planner for a check up for a single fee. I have a plan for the next 50 years with all the contingencies. All advisors rely on standard software so your portfolio and plan follow universal guidelines. There is no need to give up over HALF your money anymore. The best advisors don’t need clients.

Get value for your money: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

 

Know the SS benefit rules for the greatest benefits

Before you sign up for Social Security benefits either online or at a local office, know the ABCs of your account. Set up an account so you can make sure SS has the correct information about your work history. Your benefit is based on your 35 highest-earning years. Your benefits may be taxed up to 85%. You can start benefits at age 62. However, if you do start early, that reduces your amount by about 25% for the rest of your life. Your full benefits are paid by age 67. Every year you wait—till age 70—increases your benefits by 8% a year for the rest of your life. If your spouse or ‘ex’ earned more than you did in SS records, it may be better to claim spousal benefits. Spouses without their own long work history can claim benefits in this way. Survivor’s benefits let a widow or widower collect up to 100% of the late spouse’s Social Security benefit amount.

https://www.amazon.com/Your-Retirement-Income-Checklist/dp/1544703260

 

What can we do with a big auto loan and no job?

According to Edmunds.com nearly 70% of new car loans in the first quarter of 2020 were longer than 60 months with many either 72 or 84 months. The trend over the last decade is longer and longer loans. We all know someone with this problem: Bob bought a big luxury car used but he still owes over $25,000—payments at $840 a month. Bob lost his job. Bob has no 2^nd car and is single. The car is worth less than $15,000 now. Bob could try to trade down but there would still be a large balance. Bob can’t roll the balance into a new loan since he has no job. Bob can try selling this car and paying off part of a loan with smaller monthly payments. If Bob can get a ride to shopping or work if he finds a new one, this would be best. Bob does not like that alternative so he begins to work as an Uber driver. There are expenses that are deductible including use of his car. Bob decides this is his best option for now. He decides he will never buy another used luxury car with a loan. Bob has to buy new coverage so he shops around to save.

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

 

How do you know when to get out?

Gamestop stock went up and then went back down to $40 where it was January 19. At 347 per share, did you sell on time? How did you know when to sell? Did your broker or advisor tell you so? If you bought at 200 expecting it to rise further, did you get caught in the fall on February 2? I hope you did not see your account show a negative balance of $730,000 like the young man who couldn’t get through on the phone to verify. Playing stocks can kill your savings or worse. Yes, direct online trading is possible but is it worth it? Like playing lottery someone could win but the chances are sometime 300 million to one. Don’t we have an obligation to show our young how to invest like Warren Buffett, a real wise investor?

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" 

 

 

Trump cult members beware:

Trump didn’t stop cult who wanted to “hang Pence” for disloyalty

 

Dictator can incite overthrow of our government again

 

Most GOP want Dictator back: “Trump party” in all but name

 

What if it had been Obama and BLM Jan 6?

 

So much for justice in America!

 

Our ‘Truth and Reconciliation Commission’? 

 

 

 

How Govt wastes our money:

Opioid pushers get tax refunds for settling claims for 450,000 deaths: profit from killing!

Stockpile masks while nurses receive only 1:  Biden’s people waiting Senate GOP OK

Wasted on 57 Trump fake vote-count lawsuits in each state: we pay for state courts!

 

US making $100 billion missile 20 times Hiroshima: not just kill, annihilate whole cities!

Taxes to make robots that kill automatically: hackers will love our cyborgs: kill us?

 

IRS fails to update: you pay tax yet collection letters on auto: Seize your account HELP!

IRS still hadn’t processed 6.7 million returns for the 2019 tax year: Amended takes years!

$ Billions to send rover to Mars: we did this already in 1997: internet for rural US yet?

 

SCAMS/SPINS:

Republicans "worried that if they vote to convict … people would come after them."

Trumpists have defeated the GOP: Most Americans know GOP is not viable anymore.

Dictator did nothing even after hearing followers vow to HANG his VP Pence.

McConnell avoids responsibility: up to prosecutors to charge Dictator with crimes.

 

House sues Trump/Giuliani/terrorists using 1871 law for Capitol attack: Mitch testify?

 

When a coup fails, media calls it a ‘riot’: winners always re-write the history we read.

FBI recognized many Capitol terrorists from their Terrorist Watch List on videos.

Ivanka not going for Rubio Senate seat: only interested in top job: another Trump WH?

 

Child abusers in Boy Scouts go free $ billions insurance money to lawyers, mostly

the-most-common-lies-people-tell-about-money-60324.html

Global warming means more ‘too hot and too cold’ on new climate maps: FL floods.

 

Mercedes recalls 1.29 million 2016-2021: software may fail correct crash location.

Texas tells residents to fend for themselves: car in garage kills family

Fake tax preparers: Check: they must have a valid Preparer Tax Identification Number. 

Stefan Qin caught stealing $90 million Ponzi using fake algorithm for cryptocurrency

 

Virus spreaders: No-Maskers fake US marshal pass: 1/3 military decline vaccine

No-Maskers push death toll past 500,000: 

 

ExGov Perry: OK to freeze in TX cold so that oil/gas firms receive socialist tax subsidies

The Texas way is like living on Mars: Every person is a lone star to themselves.

 

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

 

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/

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

 

Jobs

Another job search tool: https://www.glassdoor.com/blog/guide/how-to-use-glassdoor/

Visa Ban lifted?: Unemployed workers weren’t interested in jobs held by foreign hires

Another Trump tower falls: thousands laid off in 6 bankrupt biz

 

Who owns your account now?

Verizon’s proposed acquisition of Tracfone: no more ‘pay as you go’?

Looking for service: $15 mo keep own number and phone https://www.mintmobile.com/

 

 

 

Miracles:

A nursing home that tried to protect its own: after a year of lockdown, vaccines

HealthCare.gov reopens to provide much needed coverage for laid off workers.

Hundreds volunteering to escort elderly Asian Americans to stop beatings by terrorists

 

Holy War: cast GUILTY vote: now can’t go home: Family turns: “disappointment to God”

CA gives extra $600 for virus relief: waiting for Congress means hunger or eviction

Flooded giraffe habitat takes special rescue: soon Miami will need a rescue from floods

 

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/

 

Social media frauds

How we become victims of scams

The most successful types of fraud were via social media: 91% of study participants were engaged and 53% lost money. Similarly, 81% of consumers who were exposed to a fraud via a website said they engaged and 50% lost money. Phone and email scams had fewer successes. We are more likely to be victimized if we do not have anyone to discuss the offer with. Victims are more likely to be widowed or divorced. Generally, those who engaged, and those who lost money, reported significantly higher feelings of loneliness. Social isolation appears to play a significant role in fraud victimization. Those under financial strain, younger or have low levels of financial literacy are likely victims. 51% of people who reported a third-party intervention were able to avoid losing money. Cashiers, bank tellers, employees of wire transfer services and other financial services companies where consumers were about to send money to a scammer, served as an important, effective last line of defense. Nearly half of those surveyed said the news media was their primary source of information about scams. Prior knowledge of fraud helps decrease the chances of victimization, the survey found. One-third of consumers who were targeted by a scammer, but did not engage, said they already knew about the specific type of scam. In addition, consumers who understood the tactics and behaviors of scammers did not engage with the fraudsters. Approximately one in ten U.S. adults are victims of fraud each year and self-reported fraud loss complaints increased by about 34% from 2017 to 2018. In fact, the FTC received more than 372,000 fraud complaints with more than $1.5 billion in direct losses in 2018, and another 1.1 million fraud complaints with no reported losses, the agency reported earlier this year.

Popular scams: https://www.consumer.ftc.gov/features/scam-alerts

Best evidence you are being scammed?

A cold call, unsolicited letter or email! Think of it. You have been ‘chosen’ out of billions of people to receive an offer that sounds too good to be true. If the offer requires you to send money to get money or if it is heavily charged with emotion, you can’t possibly make a rational decision by yourself. You need help—any friend or advisor can help. The money strategy is complicated but scammer sounds like they know what they are talking about. Even Harvard endowment fund is fooled by bad direct investments. Scammer has your detailed personal info so they must be authentic agent of govt agency. You find a charge on your credit card you don’t recognize. Credit card charge is small $1 and you ignore it. Check out how much info you can find on yourself on the internet—just type your full name. You will be shocked to see a lot more than you want floating out there. Most of it can be used to rob you. You should go after every firm that offers to sell your data. It is said that scammers can buy your whole profile for less than $100.

Avoid money scams: https://www.amazon.com/Avoid-Scams-Brokers-Advisors-Sender/dp/1726328023

The new rules for selling annuities

New York is in the midst of implementing a "best interest" standard for agents licensed to sell annuities and life insurance products—the first state in the country to do so. There are no federal standards for annuities and life insurance sales, raising the bar for annuities sales falls to the states. The new regulation states that “only the interests of the consumer shall be considered in making the recommendation.” Annuities and life insurance were targeted in the state because the typical customers interested in those products are often “vulnerable buyers.” Annuities offer huge commissions compared with other products. Many insurers have withdrawn from NY since Trump cancelled the more consumer-friendly standard of The Fiduciary Rule. Most states do not require the complete disclosure of conflicts of interest and compensation to customers so many older buyers may continue to be mislead. For instance, some sellers offer only complicated deferred annuities with the highest commission. They do not disclose their relationship to the insurer. Contracts are written only for lawyers so sellers explain only the positive.

Use the Fiduciary Rule: https://www.amazon.com/Fiduciary-Rule-BEST-dont-waste-anymore/dp/1530980275

This is how the wealthy avoid taxes we must pay

This advisor is explaining to rich celebs and athletes how to avoid taxes and lawsuits just like he does for wealthy families. Setting up a defined benefit plan: Entertainers with loan out corporations, for example, can put away assets while taking significant tax deductions, such as $1 million or more annually by using particular defined benefit plans. Because of the business endeavors of many successful celebrities, they can use defined benefit plans to lower their income taxes while growing money tax-free. Superior risk management plus significant tax savings: Various wealth planning structures and products with major income tax deductions and the ability to address various business risks can be used with celebrities’ business interests. Some of these wealth management solutions can also be used directly by entertainers, such as when they go on tour. Eliminating taxes on investment portfolios: For celebrities with meaningful investment portfolios, it is possible to use a structure that eliminates income and capital gains taxes. This wealth management solution can be used with traditional investments such as equities and fixed incomes or with alternative investments such as hedge funds and private equity funds. Wealth planning cross-border arbitrage strategies: With many successful celebrities generating money throughout the world, it is often possible to leverage different tax jurisdictions to minimize taxes. This is not at all about secrecy. It is simply about understanding the various tax treaties between jurisdictions and benefiting from them. Asset protection planning: Relatively few hyper-successful celebrities have structured their wealth in ways that insulate it well. Very successful athletes and entertainers can protect their wealth from unfounded or frivolous lawsuits with strategies that can address their control needs and wants.

Use your tax-shelter: https://www.amazon.com/Pay-No-Taxes-Retirement-legally/dp/1507527977

Is a private placement right for you?

This is an investment that most of us can’t buy. There is no gov check up, due diligence by analysts, or registration with the SEC. Usually you must be an ‘accredited investor’ under Reg D. However, some advisors have been banned/fined for offering PP to clients. Recently a Boca firm was censored/fined $225,000 for offering a suspect PP to clients. The firm offering PP is raising capital without the expense and delay of an IPO or public offering on the exchanges. Usually there are few buyers. Because of the additional risk of not obtaining a credit rating, a private placement buyer may not buy a bond unless the bond is secured by specific collateral. A private placement stock investor may demand a higher percentage of ownership in the business or a fixed dividend payment per share of stock. An example is Lightspeed, a cloud-based point-of-sale software solution for independent retailers and restaurateurs. Investors become part owners. You can earn 11% over time without the risks of a PP.

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

How do you know how much savings to use in retirement?

Fear of the future financial needs keeps us from retirement spending. A 2009 study estimated that by the time middle-income retirees are in their 80s, they still had not touched about three-fourths of their savings, and 2016 research found that retirees with substantial assets are the most reluctant spenders. Vanguard recently reported that retirees with very modest savings turn around and reinvest a third of the money they’re required to withdraw under IRS rules after age 70½. Best we can do is make a plan to spend and save a certain percentage to keep our future income growing.

Make a spending plan: https://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

Does your advisor have a ‘conflict of interest’?

By definition, every advisor, broker, agent and seller has a conflict of interest. In financial services, every product and recommendation is dependent upon what the firm has approved for sale. The firm, not the saleperson, knows the terms of the contracts for securities, funds and annuities. For a given sale, sellers receive higher pay for some transactions. You cannot tell which seller or product has higher pay unless you ask. Some sales bring more to the firm as with kickbacks or soft money and you are not likely to get the answer from your individual advisor/broker/agent. Some sales have higher fees and commissions and/or higher ‘haircuts’ than others. Some sales have higher trailing fees (12b-1, etc) than others. Some securities sales cost you more than others: called Class A, B, C, etc. Frequently, sellers mislead us into buying the more expensive class. Many of us just don’t know about these tricks so we can’t ask sellers about them. Even if you do your research into certain products, you can be mislead by the seller who is selling a product not approved for sale. Salespeople must be authorized per product per state. The CFP credentialed seller is the most likely person to do only ‘what is best for you.’

Learn the basics: https://www.amazon.com/Tricks-Trade-Mutual-Insurance-Annuities/dp/1535497289

Does $0 cost trading help you become wealthy?

Schwab led the way to ZERO cost trading for many firms: Free trades. But does FREE trading help you become wealthy? According to many studies, the answer is NO. There are Wall Street myths about traders getting rich but you would need to have insider information and be trading large dollar amounts to become rich. Day-trading schools abound but only the owners are getting rich. About 95% of the people who attempt day trading end up with a net loss. A primary reason traders lose money is the absence of a solid trading strategy. It is lack of discipline not commissions that dooms most traders. In fact most managed equity account owners are net losers over time due to buying high (stock proved winner) and selling low (sell before you lose it all). DALBAR tracks managed accounts over time: returns 3.79% but inflation 2.7%. Warren Buffett, successful investor, says: “if you invested in a very low cost index fund, you'll do better than 90% of people who start investing at the same time.”

‘Trade’ like Mr Buffett: https://www.amazon.com/Warren-Buffett-Millionaire-money-snoring/dp/1508887381

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

This period is a test of democracy—do we really want it or not?

"Never in my life did I think I would like to see a dictator but if there's going to be one I want it to be Trump."

Trump mob spending $3 million a week to fight impeachment: Can dictatorship be purchased?

Moscow Mitch: "no choice" but to take up impeachment’

Trump: Dems process is “not an impeachment, it is a COUP" 

Trump promises a Civil War if impeached

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

Fired employee Bolton says of N. Korea nuclear deal: “no basis to trust any promise”

Lobbyists win: states can allow internet site blocking/slow traffic/pricing. Neutrality?

Profiteers earned $ millions from arrest/removal of immigrants: dictators do this too.

Trump to collect ½ million immigrant’s DNA for criminal file CODIS: $50 million

SCAMS/SPINS:

Trump upstaged by Giuliani, his enforcer: “I will be the hero!” 

Rude Giuliani, mob enforcer, cancels paid trip to Putin rally

Our AG, Barr, mob enforcer, holding secret meetings with foreign leaders to get dirt

Trump’s "Do Nothing Democrat Savages" will make the case to impeach him.

Trump now asking China to give him dirt on Biden: mob boss calling in all favors

Trump’s dirt-digging on Biden: how big a hole has he dug with enforcers?

Trump orders House impeachment chair Schiff arrest for treason: dictators arrest foes.

Mr President, why would Sec State Pompeo give House Chair Schiff his jockstrap????

Pence claims he knows nothing about Trump extortion effort he was involved in.

Voting machines used in dozens of states remain vulnerable to hacks: paid hacker show

Trump uses fake Census to raise cash: MT state warns: “imitation Census survey.” 

TrumpCare health insurance $59/month is a con just like the owner: benefits limited

PrimeVest Financial & Cetera caught paying kickback to banks w/o telling us

James Flynn caught misleading 40 complaints $1 million: annuities, REITs

Newbridge caught selling private placements w/o due diligence; no supervision.

401k plan caught using insurer’s 500 index with tracking error of over 9% less.

Chicago’s Bank Montreal caught charging higher fees for own funds; failed to tell.

79 brokerage firms caught overcharging clients; failed to tell lower cost version.

Wall Street lobbyists force regulator to cut red tape for new ETFs: over 5,000 now !

Your ETFs may spark more taxes not expected even if you didn’t sell.

Katharine Snyder, Performance Arbitrage caught deceiving disabled veterans high credit

James Booth, CT, caught running Ponzi $5 million promised safe high returns

UBS caught inaccuarately represented tax status of muni interest payments to clients.

Founders Financial caught overcharging clients with wrong fund class

Mercury caught overcharging drivers $27 millions: fine.

Long-term care insurance: rising premiums It’s a bait and switch,” Bach said. “But it’s a legal one. That’s the problem.”

Zantac may kill you

Paid Antivirus for Win 10 computers is not necessary now: “Win 10 does just as well.”

DEA allowed drug makers to increase production of opioids even as overdose deaths rose

More Trump tariffs: now on European goods: we pay the tariffs, not EU.

Trump planned to shoot immigrants crossing border: bullets cheaper than The Wall!

No count on ‘bump stock’ ban: few turned in or destroyed—sales soared on Trump tweet

Jobs

Your job as banker to friends/family is likely to end good relations

How to get into college: you DO NOT have $100,000 to buy admission.

Seniors keep traditional jobs: leather, funerals, repairs, religion, gifts, farms,

$72,931 average postal worker salary: local exam

Who owns your account now?

Yahoo account breach settlement: claim your cash

ObamaCare TN policies have refunds: TN requires premium not spent must be returned

Estate planning account: 100 questions for your advisor/planner; for whole family too.

Easier to take out 401k money but many will need the compounded earnings later!

Privilege Underwriters: Pure Group to Tokio Marine

Miracle:

15 year old dies saving younger sister from intruder with long history of crimes

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts

Is your advisor asking the right questions?

Is your advisor asking all the right questions?

If you are near retirement, you are not going to know the answer to your retirement questions. How do you know you will have enough or if you will work in retirement or where will you live or have you moved all your old jobs’ 401ks to your money hub? Will you have paid off your credit cards, loans and mortgage or are you planning on carrying debt in retirement. Can you estimate all your income source amounts? Do you want to stay past official retirement age and can you downshift to less working hours? Do you use a balanced mutual fund or annuity to provide a fixed monthly income? How much of your nest egg will you give up for a fixed annuity for life, knowing you lose HALF your purchasing power every 20 years? You may be better off waiting until you are in retirement to pay for a real full-blown financial plan. Most advisors don’t have that experience. You are the only one who knows what you need.

https://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

Where can you find reliable ‘readable’ financial information?

The average readability score of the 60 sites of asset management firms analyzed was 37, (out of 100) which is the equivalent of requiring a college degree to easily understand communications, a new study said. The average American reads at an 8th-grade level, which is a score between 60 and 70 on a scale of 100. From this we conclude that the audience for these sites is not the average person but the high net worth folks who have money. The average American has little money to invest. Most are happy to match their contributions to a 401k or other employer plan. Further, the broker/advisor industry—the actual customer—does not want their clients to educate themselves. Vanguard had the highest readability score; Black Rock the lowest.

Educate yourself: https://www.amazon.com/DIY-Financial-Independence-Freedom-Workbook/dp/1088908500

Have enough money to live past age100?

The number of people living past age 100 is doubling. No one knows how long they will need living expenses but you need a plan. When you reach your full retirement age, you can work and earn as much as you want and still get your full Social Security benefit payment. When you reach full retirement age, SS will recalculate your benefit to give you credit for months you didn’t get a benefit because of your earnings. In addition, as long as you continue to work and receive benefits, SSA will check your record every year to see whether the extra earnings will increase your monthly benefit. SS uses your ‘highest’ earnings for 35 years so you could increase your benefits by working at higher incomes. If your benefits began at age 70 (the highest level possible) then each year the amount increases based upon the cost of living increases. ($1 coffee in 1979 costs $3.53 now.) You can invest in higher return stocks even in your 60s and 70s since you won’t need that money until your 90s or 100s.

https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793

What happens to you when your advisor’s firm gets bought out?

You may become just a number. Despite all the assurances they provide, firms with cash are buying more firm’s clients to make even more. They are buying your quarterly fees which go up in a rising market no matter what your advisor does or doesn’t do. In fact you may have to pay higher fees and/or buy more products to stay. You may get a new person to ‘handle’ your account. It may be time to reconsider if a high-cost advisory service is really what you need. Today, you can buy money management that earns more since it costs less. You can buy a full retirement and estate plan for a set one-time fee. Both of these options are being picked by those who have tested advisor management and self-management. Some have made the change for more control and more earnings. Some advisors may think they are helping you by offering more services. But if you don’t need them, you are not going to be serviced at the same level. Like every industry, bigger and better is not always better for YOU.

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

Notice: new cars cost more

The average car loan for both new and used cars continues to rise, to more than $32,000 for a new car and just over $20,000 for a used car, Experian found. Since I have never bought a ‘new’ car, I had no idea that the ones in my parking lot are probably over $50K. People with average incomes are going to the used car lots more often. Today, 3 year olds are usually in better shape than in the past. Car brands that have a history of 200K mileage are made better so you can find a great bargain. Car shoppers could save more than $14,000, on average, by buying a three-year-old car instead of its new equivalent. Experian said the average monthly used-car payment was $392. If your credit is poor, try using a larger down payment so you are not paying interest till 2028. I shopped for my used Camry using 3 online sellers with specific attention to the dealer’s rating. I did not want to travel 60 miles to find that the seller didn’t actually have the one advertised. I used Guru, Edmund and Kelly. Then I checked the dealer reviews.

I saved on new insurance too: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

Vanguard to offer digital financial planner

Vanguard is offering financial planning and investment management for just a couple tenths of a percentage point of assets under management. It assesses clients’ risk characteristics; it exercises discretionary management over assets (including halting trading in cases of “an undue risk of harm”); and, perhaps most importantly, it includes goal forecasting. Digital Advisor is built on long-term, goal-based investing. Goals are currently limited to saving for retirement, but in the future will include “personalized financial goals.” It will also assess the feasibility of meeting financial goals using assets or accounts that Digital Advisor does not manage—the caveat being that since it is not managing those assets, it cannot increase the likelihood of success for those goals. Investors only need $3,000 to open an account and advisory fees are set at 0.20% of assets, charged annually and calculated quarterly, for managed retail accounts. There is also a 401(k) option for Digital Advisor, with a $5 minimum to enroll if the service is supported by the investor’s plan sponsor.

Time to replace your high-cost advisor? https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

‘Professional’ money managers fall behind your index fund

New study shows that the most highly paid ‘institutional’ managers are doing worse than your simple market index fund. Fees and poor trading strategies are the reason. Institutional large-cap managers underperformed their passive benchmarks 85% of the time over the same 10-year period. Looking down the market capitalization spectrum, institutional managers fared even worse. Active mid-cap managers underperformed their passive benchmark at an 88% clip during the decade, while small-cap managers underperformed more than 85% of the time, net of fees. The results suggest that even with the purported higher overall quality and lower fees of institutional funds, active managers struggle to beat their passive indexes across most fund categories, particularly in equities. This confirms the scorecard kept by Dalbar: average ‘managed’ account return was 3.79% vs 11% for your index fund.

Use Buffett’s recommended funds: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

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

Just like his ‘middle-class tax break,’ Trump’s ‘rebuilding’ community’s helps only rich

Tariffs cost each of us $1,000: wiped out the $600 tax cut last year.

Farmer Socialism can hurt our capitalist nation: soon everyone will want free money!

Trump wants war again: he’s “locked and loaded” but never served; now wait

2 former govt aides subpoenaed: They didn't show up. No arrest No fine No jail

Govt failed to protect 400,000 of us: opioid drug overdoses since 1999: No drug arrests.

Trump condemns CA residents to more smog: ends right to set own fumes limit.

How Trump can violate your 5^th Amendment rights to own land

SCAMS/SPINS:

Do any Sackler family go to jail for killing 10-50,000 a year? ‘None admit wrongdoing’!

Admission of guilt: Sacklers sent $1 BILLION to CH avoid paying for their killings

Fake Apple Support calls: scam for icloud data

Now chicken linked to cancer: air, meat, chicken, water, vegs, booze: nothing healthy?

Equifax did not prevent breach of our data but now wants us to prove we bought monitor

General Nutrition Centers (GNC) caught promoting “phantom markdowns” on its site.

Electric cars will pay MORE gas tax since use less gas

Wayfair, online home goods, caught exaggerated savings and misleading price claims

TV show ‘deals’ pays TV to hype stuff: ‘promotional consideration’ is kickback.

Zantac may not be healthy: FDA checking cancer links AFTER approval

Hackers stole $4.2 million from pension for retired Oklahoma Highway Patrol troopers   

Your ‘weed’ may give you extra kick: toxic pesticides

SEC finds more advisors trying to rip-of customers: high cost share class and 12b-1 fees.

JPMorgan caught letting advisors slide on fraud, stealing, forgery, lying, etc to customers

Dean McDermott caught defrauding: charging improper transaction costs

Morgan Stanley caught selling swaps providing no apparent economic benefit to client 

Safeway AonHewitt caught charging 401k employees excessive fees: ruined retirements

JPMorgan Chase caught running futures market racketeering conspiracy; investors hurt!

Raymond James caught advisory fees on inactive accounts; charged excess commissions

Mediatrix caught stealing $35 million Ponzi: high returns no loss with algorithmic trading

Prudential caught failed to disclose conflicts of interest and made misleading disclosures 

Kevin Merrill, Jay Ledford, Cameron Jezierski caught Ponzi scheme 230 investors: ban

MyPayrollHR caught stealing $35 million in payroll from companies: went into clouds!

Jay Daniel Seinfeld caught stealing from terminally ill and dead with lies for signature

Check consumer complaints before you give anyone your money

Bank windfall: end of protection from another 2008 bank meltdown: $40B bonus!

GOP to give $1.1 billion to military to make them ‘ready’ to fight: Already ‘ready’?!

Navy admits there are hundreds of UFO in the sky: so what? We’ve always seen them

Jobs

AZ Family farms die: corporate farms take all the water down to 1,000 feet.

TX Toyota truck plant gets boost: $391 million

$240,447 average comp for your experienced CFP advisor with commissions

Right Social Security decision gets your family $821,000 in life

Who owns your account now?

Some insurers make claim payments to VISA cards for faster service. ‘Best’ insurers rank

Where are your drugs the LEAST expensive? You can save 100-200% by shopping.

Our pensions at risk after many bought assets without knowing the risks: Chasing yields!

Mortgage re-fi time: fed rate lower may make it worthwhile even with closing costs.

Miracle:

Shopping for funeral? Internet lets you compare prices: Few tell all—Surprise!

Hundreds of working people donated enough $1s to save a forest/falls from development

Greta Thunberg to Barack Obama: 'No one is too small to have an impact'

Colt will suspend production of AR-15 rifles: ‘too many’ in the market now

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Overcome the Social Security shortfall

How to overcome the Social Security benefit reduction in 16 years

The SS trustees estimate that by 2034 the combined trust funds for Social Security — which help fund the old age and disability programs — will run dry. At that point Social Security will be able to pay only 79% in promised benefits to retirees and disabled beneficiaries. Those projections are roughly on par with last year's report, which estimated the combined Social Security trust funds would be tapped out by 2034 and would then only be able to pay out 77% of benefits. Since Congress may not be able to fix this problem, you will have to do it yourself. If you are counting on $1,461 the average benefit for a 67 year old with today’s formula, it will be modified to pay about $1,154. If you believe you will need more that $1,154 a month, plan now—TIME and the Miracle of Compounding can help close your income gap of $307 a month then. You can have $60,000 in 16 years by earning 8% on your $2,000 a year contributions. You contribute $32,000 for $60,000 when you need it to supplement reduced SS benefits.

Use low-cost funds for higher returns: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513

Where do your financial fees and commissions go?

The median amount of managed assets per advisor dropped 7% in 2018 to $99 million, while median ‘revenue’ per advisor rose 6% to $694,000 in the same time frame. Typically salespeople receive 33-40% of that in gross. They may have expenses. Big producers gross over $2 million but most take home $66,000. So most of your money goes to marketing and overhead of the firm. Most firms are not public so we don’t know the income of owners. As a clue, the current owner of Fidelity receives a nice package in the $ millions each year. It is NOT fantastic customer returns that she gets paid for. Most of the huge salary/bonus the owners receive comes from market growth NOT their smarts or hard work. The market’s 11% average increases your balance. You give Fidelity and other owners 1-2% of your account balance EVERY year (with eight fees and expenses you pay). They receive them even when they had nothing to do with earning it. In fact it is impossible for them NOT to make $ billions on all of our accounts just because of the ownership structure. Only one firm is owned by us, the shareholders.

Keep your fees and commissions: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

Should we fear investing in the stock market right now?

Most of us have little experience with investing in securities. Even if we have some of our pay directed to the employer’s 401k or 403b, we don’t have a clue which securities to buy and own. If we listen to Wall Street brokers, we often lose. If our schools had a basic money course, it would show us how to decide: are you saving for your vacation or for your retirement? It is TIME that decides. If you need your money next year, it’s a bank CD at 2%; in less than 5 years, a mutual fund of stocks and bonds earning 6-8%; in 10 years or more, it is a diverse stock fund earning 10-12%. We don’t have to learn anything about risk/reward, stocks/bonds, alpha/beta, sector rotation, buy low-sell high, trading costs, or anything else Wall Street advert’s talk about. In fact, Fidelity looked at their most successful investors and found they forgot their account or they were dead. Follow the master investor’s advice: it is simplicity itself.

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

Do Wall Street traders really make a living?

Like everything, the answer varies. Salary.com pegs the lower 10 percent of stock traders’ salaries at about $43,200 per year. Those in the middle 50 percent earn a slightly higher salary, often around $57,600 each year. The highest earners nationwide, on average, take home $66,600 per year. The average household income is $60,000. Of course, the financial press can always find someone who ‘says’ they earn $150,000 or $1 million as a professional trader. There are very few surprises in financial services. The only sure thing is what our Congress people have: a law that makes ‘insider trading’ legal only for them. They learn about a law that will benefit ABC corp and they buy zillions of shares with credit (margin account) and their family assets. They can’t lose. Trying to make a living finding and trading the next ‘hot’ stock seems more hectic than it’s worth. According to a very smart person I know, investing in the stock market is like particle physics—each particle is hard to follow but a bunch of them follows a set pattern.

As John Bogle said: forget the needle and buy the haystack. Your choice.

https://www.amazon.com/Quantum-Uncertainty-Investing-3-69-11-11/dp/1502312557

What’s your retirement plan?

46% of us don’t have enough. Some claim they will work till they drop. If so, why are so many taking SS benefits at age 62 when they could add 8% a year by waiting till they are age 70. I started benefits at age 62 because I could not find a job in my field. I receive $1,557 currently. My spouse waited and receives $2,964 or almost double. I should have waited. If you have no plan, start now. No matter how old you are, it would be better to use TIME to grow your nest egg. $250 a month automatically invested in a balanced (stocks and bonds) fund could provide you with $150,000 in 20 years. Example: Vanguard Wellesley Income Fund has provided over 9% a year for 10 years and since 1970. It has had only one bad year. It costs much less than most other ‘managed’ funds.

A simple wise plan works: https://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

Avoid taxes on retirement savings

You can’t add to your IRA or Roth IRA if you don’t have earned income after age 70.5. So if you are receiving income you don’t need and don’t want to be taxed on it as it grows for your later years, you can still avoid taxes. You can buy/hold stocks that don’t pay dividends. You need to open a brokerage account. You can move your money there and buy any number of individual stocks. Unless you sell them, there is NO capital gain and thus no tax. One client had to begin taking RMDs from his IRA account. He will owe tax next year on this IRA money. He opened a brokerage account with his IRA fund firm. The IRA trustee automatically sells the appropriate amount of IRA funds monthly (as demanded by the IRS) and places cash in a Fed MM account. At each drop in the price of Buffett’s BRK.B stock, he buys shares. Since there are no dividends and no capital gains (until he sells) this strategy will avoid taxes in his lifetime. Actually, his heirs will not have to pay his taxes either since the basis of the taxes goes back to zero upon his death.

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

  

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Make America, “The Don”, Great Again

Senile Psychosis or Parkinson’s delusions? quetiapine and clozapine

Truth isn’t truth, his lawyer says

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

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

Will voters who need ObamaCare vote for it?

Can a mob boss snub Congress’ subpoena?

***********************

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

Guantánamo Bay as Nursing Home: better deal than our own vets receive?

We are borrowing faster than we are making it: Economy grew 3.2% not 6 as promised.

Lobbyists tell Congress NOT to close tax evasion/laundering entities: Are we surprised?

Navy ships are made with defects and we have to pay for shipyard mistakes/failures.

Trump and GOP look at invading Venezuela: Congress has little power over Trump.

Trump wins: Yemen killings continue with US support for Saudi-led war.

SCAMS/SPINS:

Trump: withdrawing U.S. support for an international arms-trade treaty: threatens troops.

Last time Trump was sued by the U.S.: His marketing opportunity: “greedy and grasping”

Putin got election influence to Trump via NRA, real estate, banks, oligarchs, media, deals, etc.

Trump WH predicts Russia threat to elections but does nothing: Like an invitation to scam votes.

Lobbyists force Congress to pass bill putting annuities in retirement package: profits soar.

Chase bank tells us to stop drinking coffee to save after we gave it $25 billion.

Wells Fargo doubles lobbyists pay to get Congress off its case: Customers lose.

Ford caught “intentionally violated the law” in its emissions testing. Joins VW, Fiat, etc.

Elder abuse: family members steal from those least able to protect themselves: Ask them.

Survey: voters want lower drug costs and shield pre-existing conditions, med bill surprise

ACS Education Services caught failing to correct student loan balances so more charges

Lexington, PGX, CreditRepair caught taking prohibited upfront fees; poor service.

First drug maker/dealer found guilty of bribing doctors to push opioids. Jail time

Brokers/advisors lie: NOT required show all costs: We earn less over time. Regulators?

Christopher Dougherty CA caught Ponzi defrauding 50 of $7 mil ‘private placement’ 5%.

Francesco Puccio NY caught reselling annuities/life ins. for commissions: fine no jail

Anselmo Contreras, caught stealing customer funds: barred from securities.

Axa caught "negligently misrepresentated" bond funds: 401k customers mislead. Fine

Axa caught making unsuitable variable annuity and life insurance sales to seniors. No jail

Staff in WH:  “A normal person would have been indicted for this.” ‘obstruction stuff’

If you ignore Congress subpoena or a judge’s order: aren’t you in jail or a dictator?

What if All the President’s Men lie and refuse to respond to Congress/courts’ subpoenas?

Mueller ignores Mob Boss family Russia deals: OK to conspire with enemy & obstruct!

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

REDACTED Mueller Report here: https://thehill.com/policy/national-security/439485-read-muellers-redacted-report: tell lawyer to stop probe, stop probe, mislead public.

Trump: ‘nobody disobeys my orders’: will his border troops kill Americans?

Trump has his undocumented golf club workers work late without pay!    MAGA!

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

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

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

Jobs:

Public relations jobs increase--newer specialties that target social media grow: olivajade?

Renewable energy passes coal: 100% carbon-free energy by 2050: 23 coal plants retired.

Paying minimum wage cuts suicide rate in some areas: “deaths of despair”

Making new apps for phones may be top job for next 10 years: $100,000 for some.

Student loan repayment part of benefit package for new hires: 401k overlooked.

401k hardship withdrawal amounts have grown although number of loans has fallen.

Who owns your account now?

New bank attracting new money: Comenity pays 3%

Miracle:

Will it take a miracle to save the endangered giraffes? Penguins? Bears? Humans?

Student Riley Howell dies for his fellow Charlotte students: toppled shooter; took a bullet

8 year old saves sister from carjacking kidnapper: GrandMom left to help other woman

Families share the ultimate gifts and then chance brings them together

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alert