Your Wealth Reserve: wealth reserve

Showing posts with label wealth reserve. Show all posts

Friday, August 16, 2019

How much does retirement cost?

How do average working people afford to live in retirement? Two-salaried clients— school teacher and office manager—making on average $60,000 during their whole careers, earned enough to have a $1.2 million retirement fund--$40,000/year. How did they do it? Bought 2 used cars every 4-5 years. They invested 5-8% of their checks in stock index funds inside tax-deferred accounts at work and their own deductible IRAs. Bought house 40 years ago $200,000; now worth $700,000. Camping/hiking vacations. Eat out once a month. Did their own home cleaning, repair or maintenance. Bought food, clothes, toys, etc on sale or house brand. Paid for 2 master’s degrees (no scholarship) and a child’s private college degree. Covered 3 lay off periods; bankrupt once. Saved $3-4,000 a year on securities and insurance. One took SS benes at 62; one at 70. Gross income now: $90,000—SS, pension, investments.

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

Supremes give wealthy another way to avoid our taxes

Progressive tax rates at federal and state levels are meant to reduce the gap between us and the tax-shelter class that evades taxes. Taxes were meant to avoid another Robber Baron period. Now the Supreme Court has decided the wealthy were paying too much state tax. Now we will be forced to pay more to make up for the shortfall created because states can’t tax income from wealthy trusts. The rich can now move their trusts and avoid income tax for beneficiaries’ trust. The Supreme Court has essentially opened the door to trust planning that could ‘avoid state taxation altogether.’ Plus they can now avoid an audit when they move to a low-tax state. We, who are left, pay more state taxes.

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

DIY Financial Independence: Freedom Workbook

Put your money to work so you don’t have to.

Use your IRS-approved tax shelter—Pay 0% on asset gains.

Accumulate $250,000, $500,000 even $1,000,000 tax-FREE. You achieve Financial Independence by having enough money to do what you want. When you don't have to rely on work to survive, you are financially independent. Playing it safe won't achieve it. You don't have to be super wealthy to become free of money worries. Financially independent people have one thing in common: they put their money to work so they don't have to. If you don't put your money to work, you will never be free. 'Compound interest' is the name of the process by which money makes money. You don't need to do a thing besides sending $250 to work every month. You earn money every time you buy things. You own part of the businesses. Compounding is what Warren Buffett counts on for success.

“My wealth has come from a combination of living in

America

, some lucky genes, and

compound interest.”

How much can your money earn for you? It depends on how long it works and where you put it to work. The best strategy is to use your Wealth Reserve to shield your money while it works in places you shop. You can use a special IRS-approved Tax-FREE account to avoid all tax on investment dividends, earnings and interest. You can also avoid the fees and commissions on this account. Your $250 a month investment may grow to $1,000,000 or more and it is all tax FREE. That $3,000 a year for 33 years ($99,000) compounds to $1 million if you put it to work: capitalism.

Put money to work: https://www.amazon.com/DIY-Financial-Independence-Freedom-Workbook/dp/1088908500

Trump’s medical price stability promise is dead

The health care companies have killed any chance for giving US a break. It is impossible to shop and compare prices even for a simple standard item. There are hidden costs in every procedure even if you knew the contract price between you doctor and the hospital. Those who argue that when we have ‘transparency’ we will shop and save are overlooking the conflict of interest of the sellers. I can’t tell my doctor to use the hospital or center where I found the lowest cost. I don’t trust the doctors who work at that center and vice versa. The doctor and the center are NOT on my side in this deal. Doctors make special deals with centers in their best interest, NOT mine. Like sales people, doctors make more by doing more volume with this center vs that center. Like my broker, they get paid more by selling one firm’s product over another. Or take a simple blood test. The median retail price in one place is $20 while the same test costs $443 in another. And what about life-saving insulin, up 1,700%? I can’t shop in

India

China

for insulin!

All these people make more than I do: https://www.amazon.com/Americas-Socialism-for-Rich-not-little-people/dp/1535218584

What can an annuity do for your retirement?

Congress wants to let the financial industry make a killing on annuity sales to retirees. Is this good for US as we retire at 10,000 per day? An annuity is a steady income for your lifetime. Insurers buy bonds with your money and dole it out to you monthly over time. You will receive less in buying power over time. Inflation takes HALF the value in 20 years. Insurers earn 1-3% depending on the type you buy. You receive a good deal if you live to be over 90. If you die before age 85, you lose. However, if you don’t feel comfortable using a 0.23% balanced (stock/bond) fund and having the fund firm send you a monthly check, this may be your best deal. A balanced fund earning over 8% a year can beat inflation over time. You keep your buying power and have a legacy too.

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

What are the options to save for college?

A tax-advantaged account called ‘529’ is available through any financial firm. What are the alternatives to a 2% savings account? Investment options range from all stock to all bonds. The middle road, overweighted to bonds, seems to work best for the 15-20 year average time to accumulate. Some plans offer age-based options. Some states provide a tax deduction. Some plans are sold direct without commissions and some cost you more. Many states allow anyone to use their plan. Some states offer low-cost management. Usually you can invest whatever amount you like but $100 a month for 15 years could provide over $40,000 for school for young and old—any educational purpose.

Learn more: https://www.savingforcollege.com/college-savings-101

Give your child a leg up with money

Make sure you teach your kids how to create wealth the easy way. At my first job, I had no clue which investment option to use for my 401k contribution and company match. The HR person told me to put it into the 'safe' stable value fund. That was the worst choice at my age I learned later when I got my securities licenses. If I had followed their advice I would have ended up with $150,000 instead of a Wealth Reserve of $877,233 about 33 years later. We have used this 'Wealth Reserve' as I call it to have funds to buy low-cost insurance, two homes and 5 cars with higher down payments or cash. Now we receive $2,500 a monthly in retirement supplement.

I found the advice of the smartest money manager of our time--Warren Buffett--is the best. It turns out his simple investing plan is best. Buffett: Panic is buy signal.

https://www.amazon.com/Give-your-child-leg-manage/dp/1096505355/’

**********

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

Half the opioid pills were purchased by just 15% of the drugstores: 15 killing fields!

Trump confirms his ‘socialism for rich’: paying farmers more than if they produce soy!

Background checks are useless: OH shooter had 10,000 rounds to kill ½ Dayton

GOP McConnell helps USSR buy KY industry: ‘Moscow Mitch’ & ‘Mad Max’ Mnuchin

"He Has Gone Mad": Danish MPs On Trump's Reported Plan To Buy Greenland

SCAMS/SPINS:

Trump’s own construction crew are guys without papers: ICE doesn’t dare touch them.

Trump comments on FoxNews’ fake news comes true because USSR TV paid for it!

Trump says Clinton killed Trump’s buddy Epstein in prison of all places: Demented!

Trump: I saved steel industry with tariffs: “Steel was dead. Your business was dead,” now business is thriving.”

Trump plans to eliminate endangered animals: oil gas coal producers have won!

Trump:“Prices not up, no inflation. Farmers getting more than China would be spending”

Melania actually took home that El Paso survivor? Sick to use baby as photo prop

IRS lets advisors pull fees from the cash value of your annuity without you paying taxes.

Crypto currency scams on all social media: get-rich-quick is offer—get poor quick results

“We are worried,” Bank of America Merrill Lynch chief economist said. Panic buy signal

Steve Baptist caught taking commissions on trades in dead client accounts. New B-D.

Richard Duncan MA caught making Turkish scam on his clients: 100% return

Dawson James FL caught soliciting DoNotCall list: $20,000 fine but not ‘guilty’ plea.

Antonio Bravata started his second scam before he finished sentence for his first fraud Andy Gamber Voyager Financial caught fraud on disabled veterans: fine no firing squad

Craig Rumbaugh caught promising ‘safe’ real estate-backed returns Werth’s Ponzi

CA bans pesticide Trump defends: developmental neurological damage in humans.

Court: Trump must provide food, water, beds, toothbrush, soap just like Stalag 13.

Police Chiefs demand assault weapon ban: Congress & Trump in clutches of NRA!

Jobs

Civilian Spy: MicroSoft has employees and vendors listening in to your Skype, Cortana

Retire early? You are likely to experience bouts of anxiety and self-doubt.

Physicists found new state of matter: increase storage quantum computer. Stream movie?

Physicists: temperature is property of quantum entanglements of ultracold atoms: Save E.

Who owns your account now?

Your old debt (past limit) can haunt you if you or collector makes a payment later.

SEC video about your advisor or broker: how to pick and how they get paid

Miracle:

Takes a miracle: Despite the news, even Pope’s letter, priests still abusing children. Jail?

Take a Miracle? Police lead black man on rope by horseback through town like past.

Save this spaceship: Troops with heatstroke double from 2008: EPA kills Bristol Bay life.

Angry neighbors turned nice: “Kindness goes such a long way. Gratitude goes such a long way.”

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts

Friday, April 27, 2018

We have 15 years to make up for 25% cut in SS benefits

We have just 15 years to prepare for 25% cut in Social Security

The SS Trust Fund will be depleted in 2034 according to the 2017 Report: https://www.ssa.gov/OACT/TRSUM/tr17summary.pdf. “The Trustees recommend that lawmakers take action sooner rather than later to address these shortfalls, so that a broader range of solutions can be considered and more time will be available to phase in changes while giving the public adequate time to prepare.” We should not wait for our reps to do something since none of them need SS benefits. Most are millionaires. Our SS benefits are already taxed, depending on our incomes so the tax will be increased. The current FICA tax will likely be increased too so we will have less take-home pay. Our reps did not ‘reform’ the tax code that allows those earning above $127,200 to avoid FICA. So the Trust Fund deficit could be fixed by taxing everyone but this is not likely after they just cut taxes on their rich and donor class. We have 15 years to invest.

Make up for the 25% cut in your benefits: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

Low-cost meds under attack: we need single payer system

Generics cost little to make so profits are low. Good for us if we had a single payer system which bought huge quantities in bulk at cost. However, the current system works on high margins for a few drugs that are featured 24/7 on TV. Also large makers bribe doctors to push new drugs to patients. Largest generic drug maker has laid off 14,000 workers, closed 40 plants and others are folding. Four middlemen orgs buy as coop and jack up prices for additional profits. This is where a single payer would keep prices low by replacing the ‘middlemen’ to buy direct. EpiPen price increase to $300 gives the opposite impression to us. Single payer systems around the world buy direct and pay 40-50% less for same drugs. Medicare, the largest buyer of drugs, was outlawed by drug lobbyists in Washington from negotiating bulk rates. Contrary to drug maker propaganda, US patients DO NOT receive better care thus living longer than single payer countries.

Buy low-cost health care: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

Help your graduate get started on their Wealth Reserve

The number one regret that I hear from clients is “Why didn’t I start investing earlier.” Perhaps it was because no one learned about compounding in high school so they blew their first good paycheck on cars or wild parties. Why didn’t we learn this chart in school: http://www.saferchild.org/power/. By investing $2,000 a year for 8 years before age 26, we transform $16,000 into $1,000,000. And now a young person can have $1 million tax-FREE thanks to an IRS trust. How does it work? Each year you earn an average of 10% on all your contributions and earnings from previous years. So by age 30, you would have over $36,000; by age 40 $95,000; by age 50 $247,000; by age 60 $707,000; and by retirement $1,000,000. Actually if you kept it going by withdrawing $100,000 a year you would still have about $1 million. Of course, in 40 years, your $1,000,000 would have the purchasing power of about $250,000 due to inflation. However, you and your employer may be funding a 401k or IRA also.

Give them the miracle of COMPOUNDING: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

Is ‘factor based investing’ right for you?

Our industry has come up with another way to excite the sales force to sell a new concept in order to move your money (more fees) to something new—almost anything new. This term has become popular with the advent of ETF or an index that can be traded daily to increase fees. Factors are the underlying exposures that explain and influence an investment’s risk. For example, the underlying factor affecting the risk of a broad market-cap-weighted stock portfolio is the market factor, also called equity risk. That is, we can consider market exposure as a factor. Instead of holding the largest company stocks in an index over time, the idea is to customize a portfolio so your advisor convinces you that they can control more or less risk of declines. A cool idea but no one has proved this can work over time. Advisors like to compare their new ‘power’ to control risk by claiming it is like your genetic predisposition to specific diseases. Factors that they think they can use to customize your investment outcome are “Market, Value, Size, Momentum, Low volatility, Term Credit.” I would call these items ‘influences’. Most of this is common sense but the identification allows advisors to sell you on the idea that they know which ETF is best for you. They don’t because no one knows the future; just the past.

Keep it simple for best results: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

“How much do I have to invest” is the most common question

Many people ask me this question. As you might imagine, “It depends” is the answer. It depends on your goal and your age. If you want to accumulate the most you can and you are in your 20s, 10% of your gross income will provide an adequate sum. Assuming average income of $30,000, $3000 a year for 40 years may provide $1.6 million or $400,000 in today’s purchasing power. If we start later, we need higher amounts to hit this goal because it takes time for compounding to work and create wealth. It takes $5,000 for 30 years to hit $1 million or $400,000 (inflation-adjusted). If we only have 20 years for compounding to work, we need $15,000 a year to hit $1 million inflation-adjusted $600,000. Assumes inflation 3%; stock market index 11%.

Add 25% bonus with Tax-FREE wealth: https://www.amazon.com/Tax-FREE-Wealth-How-laws-free/dp/1475089236

Has your advisor been preaching an “Advice-centric” experience?

Advice-centric experience is not what clients are looking for. Rather we want what might be called client-centric exploration. Advisors should take the time to find out what you are thinking and feeling before they start rolling advice at you. My industry is finally acknowledging that people don’t want just things: transactions—securities, insurance, annuities, package products, etc—thrown at them. Forget the lingo and the ‘sizzle’ wow talk. What people want are solutions that are “best for them” in their situations, now and later. Our industry has harmed a lot of people with its business model. It is a sales ‘killer’ culture. Most security sales people wouldn’t know what is “best for the customer” even if they were their own customer! Most don’t use direct-to-consumer manufacturers so they don’t know “the best” “low-cost” products. Financial firms are sales firms and the sale is what makes the “world go round” for them. This is why the “Fiduciary Rule” was killed at their request by Trump. The rule goes back to English Chancery law when a prominent person (trustee) had to act for another’s benefit with no conflict of interest. Most advisors can’t ‘put themselves in your shoes’ but at least they could explain their conflicts and all the costs of the product. But that would require a non-sales culture.

Use the best firms that follow the Rule: https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275

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

Make

~~America~~

, “The Don” Great Again

The Path to Dictatorship

“I have absolute right to do what I want with the Justice Department”

‘I’m the only one that matters’ Mob Boss, Nov 3, 2017

Loyalty to The Don above country. Treason? Above the Law?

Trump to refuse to answer special prosecutor’s questions: Above the law?

FBI finds answers in ‘The Don’s’ consigliere’s office/home/hotel

“I have nothing to do with his [Cohen] business”