Which insurance can you drop to save for retirement?

 

Which insurance can you drop to save for retirement?

Insurance salespeople don’t always explain the probability of using their products. For instance, the reason term insurance is cheap enough for your employer to provide it is that few die early. The same applies to life cover for children. Insurance sold as an investment is a waste of money. Insuring your travel is risky—check the exclusions for ways they don’t pay. If you have collision on your old car, you will be surprised when you end up paying the bill not the insurer. It is the same with home warranties—look for events no covered. You have coverage on misuse of your credit card too. Most dental insurance does not cover the big expenses. You don’t need coverage on a rental car if your regular cover is comprehensive. Plus most credit cards provide cover. Insuring your pet is usually limited—check this guide. Finally, shop for the car coverage you need—not the policy your agent sells. Most contain duplicate coverage you already have.

Save $3,000 a year: https://www.amazon.com/Industry-Insiders-Guides-Buying-Insurance/dp/1466435712

 

401k, 403b, IRA, Roth IRA which is best?

Savings for retirement are turbo-charged by avoiding taxes and by compounding your earnings. The earlier you start your account, the more you will have later. First find out whether your employer will match your contributions to a plan at work. This is free money so you need to take it. If there is no match, you can start monthly contributions to an account that will grow tax-FREE for the rest of your life. The Roth 401k or 403b at work or Roth IRA at a low-cost mutual fund provider like Vanguard will avoid taxes on the earnings in your account and never be taxed in retirement. By investing $250 a month in a stock index, you could have over $1,000,000 tax-FREE to provide retirement income. You invest $250 a month for 33 years or $99,000 for $1 million. If you keep HALF in a stock fund, you can spend $70-80,000 a year without income taxes of 12-22%. You may be able to avoid taxes on your Social Security benefits too.  

Buffett recommendations: https://www.amazon.com/Warren-Buffett-can-make-millionaire/dp/1530555981

 

Can you afford to be sued?

If you are sued, an umbrella liability policy can pay your lawyer and legal costs. This policy protects you and your family from huge court judgments if you are the unlucky victim of an accident. If you are involved in any accident—car crash or trip and fall on your property—the lawyers will go after the person or company with the deepest pockets. So if you own any property or assets, you may become the target. You may recall how doctors now refuse to help anyone injured on the street or in a building. In the past, victims went after the Good Samaritan because they had assets and their help was faulted. The most common events are your guest ‘falls’ in your home, your dog ‘bites’ a passerby, a serious car crash, a neighbor’s kid falls while playing in your yard. Any event on your rental property or any suit from something you did or said to someone else. For instance, President Clinton used an ‘umbrella’ to cover his legal defense expenses. If you have normal car insurance, it has limits for paying others’ medical expenses. This policy will cover the rest. These policies are usually written by your car insurer. For the average homeowner, the cost is less than $300 a year for $1,000,000 cover.

Lawyers are expensive: https://www.amazon.com/Lawsuit-Insurance-need-right-policy/dp/1480061123

 

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.

Estimated tax payments are still due April 15. If you are self-employed or do not have enough withheld from a paycheck, pension or Social Security, you may have to send quarterly payments to the IRS. Tax returns for 2020 are due May 17 not April 15 but the estimated tax payments are still on schedule.

IRS will redo your taxes and send refund if you paid tax on Unemployment 2020.

 

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. If you already filed and paid tax on your unemployment income, IRS says it will send you a refund of the tax automatically. DO NOT FILE an amended return to obtain a refund on this tax. 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. You can deduct as medical expense all Covid prevention supplies. 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

 

What to do if you can’t pay by May 17?

Avoid the penalty for not paying estimated tax. Ask for an automatic extension to file till October. If that does not work for you, you can apply for a payment plan. An individual can setup an IRS installment plan if you owe $50,000 or less and can pay back the amount owed in 3 years. If you are a business owner, you can setup an installment plan if you owe $25,000 or less. The IRS will charge a one-time fee of $105.

If you own less than $25,000 and can pay the amount owed within six years, ask the IRS for a streamlined payment agreement. The IRS will charge a one-time fee of $102.

Request an Offer in Compromise if you cannot pay the total amount owed. This allows you to settle your tax debt for less than the total amount owed if you will be unable to pay back the total amount owed within 10 years. The IRS will charge a one-time fee of $150. Given the pandemic economic hardship, apply for the extension to file now: https://www.irs.gov/pub/irs-pdf/f4868.pdf

Special circumstances help: call the IRS Taxpayer Advocate Service 1-877-777-4778 for free assistance.

 

IRS has $1.3 billion refunds for 2017 tax returns

Unclaimed income tax refunds worth more than $1.3 billion await an estimated 1.3 million taxpayers who did not file a 2017 return, according to the IRS. “Time is quickly running out for these taxpayers. There’s only a three-year window to claim these refunds, and the window closes on May 17.” If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. Filing instructions are available on the IRS.gov Forms and Publications page or 800-829-3676.

You have 45 days to collect your cash!

 

 

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

 

 

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

 

 

Americans killing Americans: New gun sales at record level

 

Supreme Court justices are primarily political officials rather than jurists.

 

Doctor: Floyd killed by Chauvin’s weight on neck

 

Our ‘Truth and Reconciliation Commission’? 

 

 

How Govt wastes our money:

55 major companies paid NO tax in 2020: average American paid 33% of income

Treasury Secretary Janet Yellen called for a global minimum corporate tax rate

 

Most companies have 10 lobbyist for each Representative: Most of us have none.

Biden spends $3,750 a week per child in TX camps: someone getting really rich!

SCAMS/SPINS:

Trump’s Roger Stone coordinates Oath Keepers’ ‘Whip’ attempted coup Jan 6 Coup

 

Trump holds court of Trumpists near FL palace: plan for future overthrow of democracy

 

Qanon hidden in plain sight: Ron is son of Jim, owner of imageboard website A Big con!

 

Atlanta loses MLB All-Star game: GOP bars Dems from voting rout win by suppression

Corporations fund our anti-democracy vote suppression Representatives: say but not do!

 

GOP AR sets up separate health care laws for one group: GOP decides care; not doctors

GOP using auto deductions from donors without permission: Trump taking money: Con

 

George Blankenbaker IN stole $11 million fraud money laundering Ponzi scheme

Yorba Capital Management caught coercing clients: exaggerating consequences of wait.

Zachary Horwitz CA caught running Ponzi scheme fake movie sales: 35% returns

Gaetz asked Trump for pardon for affair with underage girl: guilty seeks pardon

 

$20-$60 for fake Covid vaccine card: real shot card is FREE

Hospital charges $3,358 for Covid test: usually $135: ask ‘total costs’: Medicare for all!

Wireless ‘unlimited’ and other cons for your attorney to read: ‘one-time’ fee every year

Did your Facebook data in the hands of hackers? 533 million Facebook accounts leaked 

 

BEWARE: it is easy to mislead & change the facts to fit ideology: get confirmation

 

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

Business owners can deduct 100% of biz meals for 2021-2022 if restaurant hasn’t closed

No chip; no truck: US grinds to halt since US can’t make compute chips anymore?

 

Who owns your account now?

Half million Americans have taken Biden’s special health insurance offer

3 of 700,000 vaccinated OR folks die: must wear masks, 6 ft rest of life

Biden looks to restore Utah monuments slashed by Trump

 

Miracles:

SpaceX rocket debris falls in WA farm: cows OK but scared

‘Double mutant’ COVID-19 strain emerges in California: evolution makes 2 mutants

Only 222 died Sunday: airlines to pack ‘em in as before: wear mask for 5 hours?

 

HALF new Covid: Spring Break?: New York, Michigan, Florida, Pennsylvania, New Jersey

Miracle: world’s first self-chilling beverage can? still requires fridge

Basic laws of mass-energy particles/fields E=mc² don’t act as expected: stones are alive!

 

 

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 Warren Buffett's Investment Strategy right for you?

 

Is Warren Buffett's Investment Strategy right for you?

His strategy is to Set it and Forget it. "… Our favorite holding period is FOREVER.” We manage our account only once a year! We contribute $9 a day, $250 a month:  Accumulate $55,000, $200,000, $1,000,000 over time. Also our readers use a special IRS account for Tax-FREE income. We use only low-cost high-return mutual funds. Warren Buffett's Investing Strategy is buy and hold FOREVER high earning companies. This allows compounding to work. Compounding is money earning money on its earnings when it is invested. Invest your money in businesses sharing profits with you and over time you can reach $1,000,000. A special account makes it tax-FREE. Tax-FREE is like a $300,000 bonus. When we invest in successful businesses, we can earn 10% to 12% a year. After 10 years, we can have $55,000 because the businesses paid dividends and we reinvested them. After 20 years, we could have $200,000 and after 33 years, perhaps $1,000,000. Over time, stocks are safer than bank CDs because we earn more than inflation subtracts. We have more buying power. Compounding works best when we put our money to work in successful businesses paying us dividends and stock splits. When we use a low-cost AND tax-FREE account, we avoid fees and taxes so we keep more of our money to compound. This chart gives us some idea of how fast our investment can grow if we invest it in businesses like the ones we use every day.

https://www.amazon.com/Warren-Buffetts-Investment-Strategy-Forget/dp/1484822900

 

 

What securities do you own for the economic recovery?

Of course no advisor or fortune teller can predict the markets in the short-term. However, it makes sense that as we recover from the pandemic layoffs, businesses will rehire and expand. Usually the stocks of companies have risen after a downturn. Looking at the big picture, we note that equities have done well over the last 10 years. The index of 500 large firms has increased since 1995. Our interest rates have remained low. It would be hard to imagine a reversal of the trend at this time. Our best strategy might be to take Warren Buffett’s advice to invest our long-term money in America’s best firms and our short-term money in government bonds. Some readers invest in a S&P 500 index for retirement and a bond index fund for the short-term. Some use a Target Date fund which automatically moves money from stocks to bonds as you get closer to retirement. Every study shows that low-cost funds beat high-cost funds in every period.

Make Buffett your advisor: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

 

 

 

How to stop paying the taxes the wealthy avoid?

A new study shows the super rich are not disclosing their income and so avoid paying their fair share of taxes. Because Congress is dependent on them to fund their elections, our representatives don’t provide strong auditing people to the IRS. “The IRS needs a lot more resources from Congress,” said Daniel Reck, a lead author of the study, via email. He said the agency should “invest in more comprehensive examination strategies, involving audits of individuals, pass-through businesses, and other private entities (charities, trusts, etc.). It needs to hire and train large numbers of experts to conduct those more comprehensive examinations.” Congress gave most of the tax breaks to the wealthy in 2018. “Ninety of the Fortune 500 companies making billions of dollars not paying a cent in taxes.” A working person has a greater chance of being audited for $500 than the wealthy who hide $ billions overseas. In total, nearly $1 out of every $12 earned in the United States is sheltered from federal income taxes because of the sophisticated evasion techniques of people earning more than $200,000 a year. We have only one legal way to avoid paying the taxes the wealthy are avoiding. Use the IRS code to help yourself. Contribute up to $7,000 to tax-FREE account by May 17: less tax later.

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

 

The simple but powerful investment strategy

John Bogle, founder of Vanguard Group, had only 4 investment rules that became the standard of long-term investors. 1. don’t rebalance your portfolio. 2. use US market funds. 3. diversify: low-cost stock and low-cost bond funds are all you need. 4. relax: long-term investors have time to accumulate enough for retirement. Time and compounding stock returns of 10% a year create wealth. Warren Buffett recommends Vanguard funds for investors who have confidence in American companies. “My wealth has come from a combination of living in America, some lucky genes, and compound interest.”

Living well: https://www.amazon.com/Buffett-Bogle-Holy-Bible-Investment/dp/1523693045

 

 

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. If you already filed and paid tax on your unemployment income, IRS says it will send you a refund of the tax automatically. DO NOT FILE an amended return to obtain a refund on this tax. 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. You can deduct as medical expense all Covid prevention supplies. 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

 

What to do if you can’t pay by May 17?

Avoid the penalty for not paying estimated tax. Ask for an automatic extension to file till October. If that does not work for you, you can apply for a payment plan. An individual can setup an IRS installment plan if you owe $50,000 or less and can pay back the amount owed in 3 years. If you are a business owner, you can setup an installment plan if you owe $25,000 or less. The IRS will charge a one-time fee of $105.

If you own less than $25,000 and can pay the amount owed within six years, ask the IRS for a streamlined payment agreement. The IRS will charge a one-time fee of $102.

Request an Offer in Compromise if you cannot pay the total amount owed. This allows you to settle your tax debt for less than the total amount owed if you will be unable to pay back the total amount owed within 10 years. The IRS will charge a one-time fee of $150. Given the pandemic economic hardship, apply for the extension to file now: https://www.irs.gov/pub/irs-pdf/f4868.pdf

Special circumstances help: call the IRS Taxpayer Advocate Service 1-877-777-4778 for free assistance.

 

 

 

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

 

 

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

 

 

Americans killing Americans: New gun sales at record level

 

 

Our ‘Truth and Reconciliation Commission’? 

 

 

How Govt wastes our money:

Congress cuts IRS auditors so wealthy keep $ billions we need tax for debt they made.

Biden’s $2.3 T infrastructure cost less than Trump’s $3.9 T tax cuts for the wealthy

 

91 Fortune 500 companies paid $0 taxes: average corporation paid just 8% in taxes

HALF seniors pay tax on Social Security benefits: up from 10%: rich pay less; we pay more         

 

States lifting Covid bans: cases and deaths rise 555,000+

Hospitals, even nonprofits took pandemic money for profit and dumped 1200 workers

 

SCAMS/SPINS:

Trump’s SS head refuses to let IRS send $1,400 to 30 million SS beneficiaries

Trump’s post office admin still holding up mail: Biden on the fence?

Trumpist ‘scientists’ fired from EPA: 40 industry lobbyists go back to pay to play roles

Trump sued by 2 Capitol police for causing their injuries from his domestic terrorists

 

RoboCalls rising: how to stop some unknown callers: pay to stop others using our phone

Fake IRS logo phishing scam asks all your info for “Tax Refund Payment” etc.

 

GOP to jail good Samaritans: give water to folks online is a crime: Trump got to GA gov

GOP legalizes discrimination: states make sure no Dems win ever again: Trumpist win

FL GOP copies GA voter suppression: no water within 150 feet voting. No voter fraud!

 

GA suppression laws are unconstitutional and violate the Voting Rights Act. 

China’s new law will drastically restrict the right of Hong Kongers to stand for election

 

MO to legalize vigilantes whose guns ‘belong to state’ so no registration, limits, blame

GA makes it easier to kill people in GA: Killings in spa had no effect on GOP

 

Man not guilty of rape in MN if woman has a drink: NY has same law: men made laws

Man kicks 65 year-old Asian female in street outside Brodsky condo: everyone watches

 

Toxic chemicals we use everyday: Strawberry pesticide residue

UV disinfectant wands claim more than can be proved: use wipes instead

FL bans suits against business for Covid-related deaths/infections/damage/harm: blame self

 

Wall Street shaken by collapse of hedge fund: risking more than they could afford to lose

Michael Carter VA caught making $ 6 million unauthorized transfers from clients: 5 yrs

Anthony Diaz PA caught selling $3.5 mil “low-risk guaranteed” alternatives: 17 yrs

Tom Girardi CA caught misappropriating millions in client funds, dishonesty 

Douglas Elstun MO caught overcharging clients in high-risk leveraged and inverse ETFs

 

Being evicted?: what you can do to stay off the street: ban extended to June

 

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

Reagan’s 1986 pathway to citizenship for undocumented revived: TX CA need workers

916,000 new jobs in March; manufacturing up to new high

 

Who owns your account now?

The medical gods are sometimes wrong: always get a 2^nd opinion on everything

Vaccines only good for 6 months: most of us will need booster/masks years?

 

Miracles:

Asteroid Apophis won't hit Earth for at least 100 years: Congress has time to think of fix

The Louvre just put its entire art collection online https://collections.louvre.fr/en/page/apropos

U.K.report says there’s no institutional racism  but “overt and outright racism persists in the UK” ER

 

 

 

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/