Friday, October 25, 2013

Your advisor taking 63% of your net worth

Your advisor may take 63% of your net worth!
Your prestigious investment banker may be using hedge funds that charge more but deliver less. In a study of the hedge funds used by Rhode Island’s pension money, they found that returns trailed a simple index fund.
“That little 2 percent fee will erode 63 percent of what you would have had,” John Bogle found.
Don’t be fooled by the hype of Wall Street’s marketing, no matter what “badges” they have: “We don’t need no stinkin’ badges.” Or fees, charges, commissions, etc. http://www.amazon.com/dont-need-stinkin-badges-commissions/dp/1492943363/


Wall Street takes $50 billion of your money
Wall Street wirehouses destroy close to $50 billion of portfolio value each year with "unnecessary fees and depressed performance based on poor product choices, or both." That is the conclusion one Wall Street watcher found. LPL advisors will charge another 15-20 bp in January. It is the third straight year that LPL's 13,000 reps and advisers are facing some type of fee increase. You need the money more than they do: http://www.amazon.com/Nothing-Way-Seems-Wall-Street/dp/1492752916/

 Do you really need LTC insurance?
The long-term care insurance industry did not have many carriers to begin with. And now the industry is shrinking, prices are rising and carriers are limiting their coverage. Contrary to sales hype, a large percentage of elderly people are in nursing homes for 90 days or less. Most policies have a 90 day waiting period. Today more than 85% of care is received outside of nursing homes, says Deb Newman, chairman of the Life Foundation. And people may not need as much long-term care insurance if they are being cared for at home. Alternatives may be right for you: http://www.amazon.com/Long-term-Care-Insurance-better-alternatives/dp/147006877X/

MA now allows insurance commissions AND fees on sales
Regulators have decided to let agents charge extra fees above the commissions on insurance sales in MA. Shop for discounts and ask about extra fees on all insurance every 2 years: http://www.amazon.com/Customize-Your-Insurance-Save-every/dp/1490936440

Our “representatives” who voted to destroy U.S. credit (raise rates)
The world used to think the “faith and credit of the United States” was more valuable than gold. Now we aren’t sure we will receive the SS benefits we paid for years ago:
Coburn (R-OK) Cornyn (R-TX) Crapo (R-ID) Cruz (R-TX) Enzi (R-WY) Grassley (R-IA) Heller (R-NV) Johnson (R-WI) Lee (R-UT) Paul (R-KY) Risch (R-ID) Roberts (R-KS) Rubio (R-FL) Scott (R-SC) Sessions (R-AL) Shelby (R-AL) Toomey (R-PA) Vitter (R-LA)
There were 144 in the House that voted to ignore their debts after they already charged them: http://www.washingtonpost.com/wp-srv/special/politics/congress-votes-to-end-shutdown/house.html
Was your “representative” one of them? Why are they bringing America down?

National debt has risen the greatest under GOP!
Deficits don’t matter” Republican Godfather, Dick Cheney, 2002
Reagan raised it 92%, Bush 1 raised 26%, Clinton up 1%, Bush 2 up 45%, Obama 36%. http://www.businessweek.com/articles/2013-10-17/how-u-dot-s-dot-debt-per-capita-has-changed-under-every-president-since-jfk

ObamaCare exchanges working
Obama administration officials say about 476,000 health insurance applications have been filed through new "Obamacare" exchanges. From smoking-cessation programs to discounts on gym memberships and subsidized weight-loss plans, employers are increasingly making employee health their business. Systems link data from IRS, Social Security, Food Stamps, Medicaid, 10-20 insurers, plus state medical providers. No wonder it does not work right the first time.

“Inasmuch as ye have done it unto one of the least of these my brethren, ye have done it unto me.”
About 5.2 million Americans will be left without health coverage because of the decision by 26 GOP-run states that reject expanded Medicaid insurance programs for the poor with money provided under Obamacare. The Supremes ruled the states don’t have to follow the law. Will the uninsured move to states that offer insurance?

Health Exchanges: We only hear about the failures—never the successes
Elizabeth Watts of Kentucky had her application accepted at 12:04 a.m. on Oct. 1, making her one of the first to start the enrollment process. Because of a rare disorder, she has already had a heart attack and a stent put in place. She makes $220 a week working at a gas station. Previously, the only insurance she could find was for $300 a month, which was too much for her to afford. Using the exchange site, Watts learned she was eligible for Medicaid, the state-federal program for the poor that was expanded under the law and will cover most of her costs.
“It’s been such a relief,” said Watts, 31. The last time she saw her heart doctor, “it took 15 minutes and cost $160.”

Two Americas?
Will there be a civil war led by the gun-play rally at the Alamo:  "Come and Take It San Antonio!" Local police declined to enforce the law against the vigilantes waving guns in public. More kids bring guns and ammo to school and kill.

The Meek [Patient] Shall Inherit the Earth
Warren Buffett is patient. He compounded $6,000 from his paper route into $60 billion in his 60 years of investing. He credits compound interest for his success not “playing the market.” “My wealth has come from a combination of living in America, some lucky genes, and compound interest.” He said "The market is a way to transfer money from the impatient to the patient." It is hard to be patient and humble but it’s true—“The Meek [Patient] Shall Inherit the Earth”: http://www.amazon.com/Meek-Patient-Shall-Inherit-Earth/dp/1492869538/


SCAMS           “Deficits don’t matter” Republican Godfather, Dick Cheney, 2002
Bush wars increased the debt by $4-6 trillion to $16 trillion. 1985 debt $3 T, same as 1945.

Our “representatives” avoid taxes on their slush fund incomes
60 Minutes shows how Congress people use campaign funds for tax-FREE lifestyles: http://politix.topix.com/news/8530-60-minutes-exposes-political-slush-fund-for-members-of-congress

According to the National Employment Law Project's (NELP) newest report, because the fast-food industry pays its workers less than a living wage, U.S. taxpayers must foot the bill in the form of the public assistance programs these workers must use to get by. McDonald’s alone, according to the group, cost taxpayers $1.2 billion last year. Based on NELP’s estimates, 24/7 Wall St. reviewed the annual costs of providing public assistance to low wage employees working at the seven largest publicly traded fast-food companies.

IAN
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