Friday, July 31, 2015

Do you know these people you made really really rich from your savings?

Did any of these people increase your net worth?
You have increased theirs from your 401k, mutual funds and brokerage fees every year.
You put up the money, take all the risks and these middlemen take up to 63%:

Abigail Johnson, owner, Fidelity, net worth is $13 billions.
Stephen Schwarzman, Chairman, Blackstone $12 b
Steve Cohen, Point72 Asset Management, $11 b
John Paulson, Paulson & Co., $11 b
David Tepper, Appaloosa Management, $10 b
Ken Griffin, Citadel LLC, $7 b
Charles Schwab, Charles Schwab, $7 b
Edward Johnson, III, Fidelity, $7 b
Rupert Johnson, Jr., Franklin Resources, $6 b
George Roberts, KKR, $5 b
Henry Kravis, KKR, $5 b
Bruce Kovner, Caxton Associates LP, $5 b
Leon Black, Apollo Global Management, $5 b
Lloyd Blankfein, Goldman Sachs, $1 b
Jamie Dimon, JPMorgan Chase, $1 b

You don’t need to pay for it anymore: 

Even Harvard economists make mistakes with money—learn and move on
This “smart” person did not learn the fundamentals of the Buffett strategy so she made a couple of mistakes that cost her. Growing a nest egg takes TIME. It is hard to make up for TIME. And using an advisor does not always save you from timely errors. For example, she gave up her very low-cost well-run retirement account when she left one job and spent the money. Only TIME can cure money mistakes. As Buffett said, “My wealth has come from … compound interest.” And you only get compound interest if you leave your money alone to work. 

Which investment earns 11% over time?
It is also the one that Warren Buffett stipulates in his Last Will for his family. The average investor with an advisor earned just 3.79% while this simple non-advisor mutual fund earned 11% over time. Dalbar.com QAIB Advisors with 50% margins can take up to 63% of your nest egg over time. You time the market with your broker’s hot tip and they take HALF your earnings. Instead , this investment is diversified, controls taxes, has low fees, and does not require trading. This investment can be Tax-FREE when protected in our IRS tax haven.

How much are your investment fees taking from your total nest egg?
When you use an advisor and high cost mutual funds or stock trading, you are reducing the total amount you could have earned on your money. Studies show that even though we pay advisors to provide superior returns, they can not do that over time. Since they are paid to help us, we should balance that help with the cost. If we pay total costs of 2% of our account value every year, we may be giving up 63% of the possible accumulations we need in retirement. So if we invest $3,000 a year for 30 years, we earn $460,000 not $700,000. That is 9% vs market 11% as produced by the Vanguard Top Ten.

What is the most important determinant of investment success?
What makes a successful investment—GARP: growth at a reasonable price? GARP is what makes you rich. Yale’s brilliant endowment manager, David Swenson said, “Ultimately, a passive index fund managed by a not for-profit investment management organization represents the combination most likely to satisfy investor aspirations.”
This is becoming the norm but financial “professionals” cringe—cutting into their 50% profit margins hurts. There are only 3 not for profit mutual fund firms:  http://www.amazon.com/Pay-less-Get-more-investment/dp/1500598321


2016: America’s real reality TV show—but it is not fake?

GOP to use budget bill to kill American’s health coverage—last gasp?
After more than 50 votes in Congress and two attempts before the U.S. Supreme Court to mothball the ACA and public exchange marketplace, some Republicans are now seeing the budget reconciliation process as yet another avenue for achieving this long-time goal. 

Trump:  “Folks, will you please put me in first place [Iowa] so I feel better?” (He makes himself feel better by lying: Turns out his net worth is really about $3 b not $10 b)
Perry got Texas appeals court to dismiss one of two charges he used politics to force a Dem from office. Really!?
Perry says movie-goers should have shot back in LA. Really!?
Cruz calls GOP leader a liar. GOP gets upset. Really!?
Jeb is surprised by reaction to his comment to end Medicare as we know it. Really!?
GOP head McConnell wants to eliminate last control on election spending. Really!?
GOP got another (#17) president to be. Really?
            Christie Stalling Probe of Pension Fees Paid To Wall Street
NJ Pension Chief says Christie has blocked the probe and there is no independent auditor in NJ to disprove rumors that the fees went to election fund raisers. Christie’s office rejected repeated open records requests for documents that would show how it calculated the performance figures. Christie’s staff go on trial for “traffic problems” soon.

Hillary to answer Obama Justice probe on server emails. Really!?
Bernie got 100,000 supporters to attend 3,500 organizing meetings in all fifty states Wed.

A hoax or warning?
NASA’s former lead climate scientist, and 16 co-authors, many of whom are considered among the top in their fields—concludes that glaciers in Greenland and Antarctica will melt 10 times faster than previous consensus estimates, resulting in sea level rise of at least 10 feet in as little as 50 years. Florida goes on sale!

Is your car on the most UN-reliable car list?
It is good practice to always buy a used car—used luxury is a better value—more quality for the money. You also don’t end up as car company guinea pig like these turned out to be—most are gadget mistakes. Top of list—FIAT:  Jeep, 4VWs, Mini, S-Class, Q50, C-Max, Dart, Cruze, Escape, Silverado, CLA, Pathfinder, RS6, Fiesta, Fiat. There is a reason Fiat bought JeepChrysler.
Most reliable: 3 year-olds, that have owners’ approval by type: http://autos.jdpower.com/ratings/dependability.htm
And CR tested and got owner reviews:

Books of interest
Part memoir, THE PATER, by Eliott Jager, is also about theology, the meaning of life without children; and about father-son relationships. Eliott provides an intimate look at life from a perspective you have never experienced before—unless you are in his shoes. Great read—heartfelt and gripping—from the Lower East Side NYC to Israel

Tax-FREE savings hits stride
Roth IRA investors are younger than traditional IRA holders and more likely to start their savings with contributions rather than rollovers, according to new study. Roth investors tend to limit withdrawals even though they can take out contributions penalty/tax free. Younger workers may not need the immediate tax deduction since their incomes are lower. An IRA deductible $3,000 contribution is worth $400 in tax reduction where as, if invested in stocks for 35 years to retirement; it is worth $135,000 in tax-FREE income. This is the enormous power of compounding high earnings in a tax-FREE account and some young people see the value in a Roth over other accounts.


Who owns your account now?
StanCorp Financial Group to Meiji Yasuda Life Insurance
HCC Insurance Holdings to Tokio Marine Holdings
Protective Life to Dai-Ichi Life Insurance

Petition to send lion killer to Africa for trial, if US can find him before headhunters do


SCAMS           Can we afford to keep paying $700 Billion a year for WWII deployments? That is 27 cents of each dollar in taxes—the largest part of our money—and we aren’t even at war. We could pay off our debts and fix our schools, roads and bridges! We are paying for 164,253 of our active-duty armed personnel to be in 150 countries around the world. We have about 50,000 in Japan and 50,000 in Germany.
We are spending $8 million per HOUR on our wars in Iraq/Afgan

The War on Terror requires special forces attacks on top terrorists at their homes like Obama’s al-Amr May14 Abu kill. Iraq proved converting a nation to Western-style republic doesn’t work. The troops we trained ran away, left our stuff. Training and more stuff for what? Former Saddam army now ISIS. We are wasting $4 billion a year on Afgan tribal rivalries; paying ransom to Al Qaeda; supporting corruption with our money.

We are building another military base for Japan at Henoko. Air Force Gen. Ronald Fogelman admitted that the Marines “serve no military function there. They don’t need to be in Okinawa to meet any time line in any war plan.”

Are we preparing for WWII again? There are 1,208,083[1] armed personnel in the United States. Our taxes pay for about HALF of the WORLD’s military expenditures every year. We have wasted $398.6 billion so far on the F-35 program—they can’t fly safely.
We just can’t afford to pay for everyone else’s defenses anymore.
Japan, Germany and S. Korea can pay to defend themselves.

We are now training Ukrainians in UkraineMission creep
Afghanistan started the same way—just training, and then guarding trainers, then supply trainers, then supply U.S.-built Stinger antiaircraft missile to the mujahideen, and eventually $200 million for fiscal year 1992 alone. $4 million/hour- $778 billions so far.

Can Fiat fix Jeeps that get hacked?
Fiat must offer to buy back more than 500,000 Ram pickup trucks and other vehicles. Steering fails without warning. Jeep gas tanks rupture on impact.

Regulators fine Paymap and LoanCare for deceiving consumers with advertisements for a mortgage payment program that promised tens of thousands of dollars in interest savings from more frequent mortgage payments. It’s just math—you save by paying extra principal each month—you can do it yourself without the fees.  

Regulators fined Residential Credit Solutions $1.5 million for blocking consumers’ attempts to save their homes from foreclosure. The mortgage servicer failed to honor modifications for loans transferred from other servicers, treated consumers as if they were in default when they weren’t, sent consumers escrow statements falsely claiming they were due a refund, and forced consumers to waive their rights in order to get a repayment plan.

Hackers use Twitter/photos to get into gov computers
Russian government-backed hackers who penetrated high-profile U.S. government and defense industry computers this year used a method combining Twitter with data hidden in seemingly benign photographs, according to experts studying the campaign.

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