Sunday, July 31, 2016

Is your employer robbing you of your retirement money?

Is your employer robbing you of your retirement money?
More large employers (who don’t need the money) are taking your future nest egg assets.
Employees of New York Life are suing for all the extra fees they were charged by their employer’s mutual fund options. Employers are supposed to do the right thing in picking your nest egg options. New York Life’s own index fund charged 35 basis points. That is seven times what Vanguard charges for the same securities. That is pure profit to NY Life since they own this plan’s option. NY Life claims they paid a consultant for the plan options. In other suits, employers were taking kickbacks from the plan administrators. Employers should act as fiduciaries and use only the best options for employees.
Stop being robbed—use your own tax-FREE account: https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938

How much does it cost for a $1 million retirement?
Most of us have no idea. Half of all Americans will not be able to live on Social Security and their savings. Yet, if we knew that we could guarantee we would have enough, would we do what is necessary with our current wages? What we don’t know that wealthy people know is that TIME is the key to converting our current spending into a million dollar nest egg. Most of us don’t shop to save on mutual funds or insurance so we pay too much to middle people. Our fees reduce the amount we could have by 63%. Instead of having $250,000, we end up with $100,000. We end up with $500 a month instead of $1,000 a month in retirement. All we need are the Tricks that savvy savers use for $1 mil.  

Are you getting shortchanged on your benefits?
Income inequality grows from your benefits package too. If the rich get richer, one way is they have better insurance, heftier 401(k) plans, and a sturdier all-around benefits package. And the trend is making America's already wide income gap even worse. Employers spend a median of 38 cents of each compensation dollar on benefits, according to a Pew study. And as compensation goes up, so do benefits. For every additional dollar of average hourly pay an employee gets, Pew finds, employers spend an additional 67 cents on benefits. Workers with smaller paychecks, who can't afford to pay out of pocket for things like extra health care expenses and child care, get less support from their employers to meet those very needs. Many benefits come in the form of non taxable income. As benefits make up a bigger chunk of compensation, this further advantages those in a higher tax bracket. Tax payers subsidize the non taxable benefits.

Why your car or home insurance is NOT renewed
After you make a legitimate claim, your policy is not renewed. It happens often and for good reason. Insurers don’t like to pay claims even for legacy customers and for legitimate claims. They price for once-in-a-lifetime catastrophic loss not frequent dings. A property damage claim means that you are not maintaining properly and will have another claim. Jewels can’t be stolen or lost if they are in a bank vault. Two events mean you are careless and will have another claim to them. This pattern is a risk that cuts insurer’s profits. Insurers take on risk based on numbers. Size and number of claims that do not fit their profile are jettisoned. It is not personal for them. The fact that you paid for 25 years has no bearing because the numbers are done each year. If all your policies are with one company, all your claims count against you. All insurers share records on CLUE so it may be difficult to re-insure. Insurers underwrite for different risk and marketing strategies over time so you must shop around just like you do for a HDTV.

Estate planning made simple
You have a sizable IRA. You want to leave it to heirs tax-FREE. You can pay for a trust but the trust pays taxes at over 39% on income over $12,400. If you make the trust your beneficiary, that is a big bite. The best option is to convert parts of your IRA to a Roth. You may convert portions of your IRA strategically over time by "filling up" lower marginal tax brackets with Roth conversion dollars. Then each year in post-70.5-retirement, take out more than your RMD, pay tax and reinvest it in a Roth IRA if you are still working. Otherwise, reinvest in a taxable account with growth stocks NOT BONDS. Growth stocks or growth stock funds pay little current interest/gains so taxes will be minor. You may have to pay tax on SS benefits and pensions so your tax bill must be managed.
At death, your Roth IRA is tax-FREE forever. The taxable account moves to your heirs on a stepped up basis. At your death, the balance is tax-FREE. As their taxable account grows, only the gains above that amount are taxable at capital gains rates. Leaving an IRA, 401K, or annuity are taxable at the heir’s income tax rate!


Trump tax plan: tax cut for the very wealthy
Since we have a deficit and Trump has promised to cut taxes for the wealthy and corporations, where will the revenue come from except from us. GOP leaders have hinted that a “consumption” tax may be used. Everything we buy will have an extra tax. This is called a “value added tax” VAT in Europe. It is a national sales tax. Some call it a flat tax. Some claim it will increase growth because wealthy people will invest and build more business with their extra money. Others say that the wealthy already pay less (17%) than the flat tax with the subsidies Congress gives. They have already invested their excess cash overseas where labor costs are a tenth of ours. Fiat Chrysler moves car making to Mexico Canada but our tax subsidies of $2 billion continue for Fiat. Most agree that the biggest tax cuts are reserved for the wealthiest. Trump will eliminate the estate tax (which currently applies to only about 5,300 of the richest families) and scrap the alternative minimum tax, which is avoided by most wealthy people.

Can Don really bring good-paying jobs back to US?
One of the GOP’s major promises for 2016 is bring back factory employment from overseas. "I will bring jobs back from China. I will bring jobs back from Japan. I will bring jobs back from Mexico," he said. "I'm going to bring jobs back and I'll start bringing them back very fast." “I will be the greatest jobs president.” But during the last 3 years of Wal-Mart’s effort to create 250,000 factory jobs, it has hit two walls. Wages in China allow US makers to do more with less. Even when employees here reengineer to cut costs, the automation raises productivity with much few employees. Employers would more likely take a one-time automation cost than hire more people even at $7 or $9 an hour. Wal-Mart has created 7,000 jobs—a tiny fraction of the 5 million lost since 2000. Don must go against the trends of automation and lower wages. His record in his own industry (casino, golf, hotel) has been dismal. He is better at avoiding taxes.


GOP ‘religious freedom’ (for certain people)
PayPal founder got a cheer for being gay but the GOP law in many states says NO NO!
Congress may legalize discrimination against gays despite Convention cheers. GOP thinks the "First Amendment Defense Act" will protect the rights of religious institutions/people since same-sex marriage was legalized. But hate gay law is already in many states like Pence’s IN. “In most states, you can get married on Saturday, post photos of your wedding to Facebook on Sunday and then get fired or kicked out of your apartment on Monday just because you’re gay.” Trump said he will protect gays at his convention but he does not control GOP Congress nor the state lawyers.
The law allows anyone to claim ‘religious belief’ as excuse to bar people on the basis of any sex act OUTSIDE of traditional marriage. Violates our civil rights.   

GOP tax cut experiment failed – credit ratings fall twice
KS has given its wealthy a big tax break and now the state credit rating has dropped twice. Borrowing costs for state projects will rise. KS is now in the KY, IL and NJ class—no cash reserves. Kansas can’t balance its budget because GOP Sam Brownback lead GOP-Legislature gave tax breaks to the wealthy in 2012-13. The GOP myth is that the wealthy will create work and revenue. Instead they send their money elsewhere. Largest employer Koch expands in other states and countries. Koch spends $ billions to cut taxes nationally. All schools, infrastructure, and state pensions are degraded. "It's just the fundamental, ongoing budget crisis that's been caused by Sam Brownback's failed tax experiment," said state Senate Minority Leader. CA has raised taxes and funded all projects plus emergencies. Trump promises to work the KS ‘miracle’ for all states.


Trump children in charge of the nation?
Trump wants to fire all Obama-era workers. Will the Trump kids run State, Medicare, ICE, FBI, and Treasury? Who will run TrumpCare? Can Pence really fix the economy like he did Indiana or did Obama’s policies? Can Congress pass all those bills—closing environment, education, health, oil gas water electric regulation, and taxation as we know it? They only work 111 days per year. Who will tend the golf courses and T product sales and rental buildings if Trump kids run the nation? Trump says only he makes the decisions.
Petty dictators are all alike. Opponents are criminals, public show trials, mobs shouting “lock her up”, other reckless vows. Convention was not GOP: ‘Trump Family’ branding: “I am the only one who can save you from violence” “I can fix everything” once you give me the power. Alpha and Omega incarnate.


Which candidate is the better liar? Presidents must lie to keep power.
It is good to know that both parties act as juvenile petty-power cliques.

            Dad and I were not racists: Justice didn’t have a case but we settle anyway.
            Bachmann thinks I “recognized the humbleness that he had.” Otherworldly! Especially when I said I alone can fix it.” Where are these people?
            Did Putin really help me with the emails? Putin expects intelligence reports?
            My wife Melania didn’t lie about having a college degree. Her site got it wrong.

Hill:    I could have won without the DNC back-room dirty-tricks group


Tim:    I’m here to seal the Hispanic, white, male, religious, moderate, southern vote.  


Regulators are the only protection we have since we can’t sue anymore
            “It is nearly impossible for one individual to take on a corporation with vast resources.” (GOP bill requires impossible: every person in class action suffer “same type and scope of injury”)
               Supremes stop us from suing—State courts no longer available to sue corporations!


.Olympus scope-maker caught NOT informing US hospitals about bacteria kills 35
.Gun sales up 40% since OrlandoAR 47 with armor piercing ammo is top gun $780
.TX now lets its students carry a hidden gun on campus, in dorm, classroom, anywhere
.With email and voicemail being hacked, maybe sealed first class mail is not so bad.

We need regulation—GOP wrong—companies/cities wouldn’t fix bad products on own

When everyone has guns; your chance of being killed goes up. Police want gun control. They don’t know who to shoot. Shot a psych worker with his hands up while on ground. 


SCAMS
Pretty face cars that just don’t measure up: 10 that give you heartburn
GOP voters are actually looking up ‘Trumpence’ in the Bible. It is ‘diabolos’ in NT.

Ignoramus Award: man pulled gun on a little boy who was kicking seat at "Star Trek"


How our government wastes our money
Throw money at unknown unknowns https://www.youtube.com/watch?v=GiPe1OiKQuk
Reagan assassin released from mental hospital: 35 years of therapy costing $ millions.

Who owns your account now?
MetLife insurance and annuities to Brighthouse Financial, Charlotte, NC
Gerstein Fisher to People's United Bank
“Do You YAHOO” to Verizon
Fiat Chrysler moves car making to Mexico/Canada Subsidies of $2 billion continue

FIOS down for 2 days

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