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.


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.

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.

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.


“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%.

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.


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

Make America, “The Don” Great Again



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


(Dictators often have delusion they themselves ARE their country)

Treason is ‘giving them aid and comfort within the United States


Putin controls US power utilities and 21 state voting files, Trump slush fund, etc
Trump lied about time making ‘pee’ tape. “My head never hit a pillow” he admits.

The election is going to be rigged—I’m going to be ‘honest’” 
GOP voter suppression a success: Dems lost because poor don’t have new ID.


Could Trump postpone Nov 2018 election using excuse of Putin meddling needs fixing?


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Trump’s EPA told to ignore science for clean air and water

SCAMS:
Airline reg about full pricing to be cancelled so we won’t know full price till booked.

Jobs:
Online computer science degree GA Tech $7,000 gives you a chance at $70,000.
Ford exits car business: Crossover, Mustang only so needs only HALF US workforce.

Who owns your account now?
Amazon can deliver to your car with encrypted authentication process to open it? Steal?


Can we trust Ari Melber to explain the legal case against POTUS?

Miracle:
Afgan vet gets first ever operation restoring his privates

IAN
41 Watchung Plaza, B242
MontclairNJ 07042
973.746.2014
Alerts 

Friday, April 20, 2018

Use new tax bracket to improve your nest egg


Your new tax bracket is 22% down from 25% in 2017
If your total combined income is $100,000, you may get a break come April 2019. That assumes you don’t have property tax over $10,000 and don’t have kids. We are losing the SALT benefit and our personal exemptions of $4,050 each. That may be offset by the $24,000 standard deduction. What can you do with this change? If you are near or in retirement, you could convert IRA money to Roth IRA money. Our rates goes back up in 2026. Convert $10,000 of IRA money, pay an extra $2,200 April 2019, then spend an extra $30,000 tax-FREE in about 10 years from stock funds. So for each year you convert $10,000 and invest it in a stock index fund, you could end up with much more. Plus, you will have reduced your RMD each year because your $10,000’s growth is outside the IRA in a tax-Free account. Bonus: with an extra $1 Trillion debt, our taxes will have to go up soon.  

Do you know where your retirement assets are?
Forbes estimates up to 30% of pension accounts may be missing. You can get help finding your money from the Labor Department or nonprofit pension counseling centers funded by the Department of Health and Human Services. Check the databases of bankrupt corporations to track down your retirement plans. First, email the firm if it is still around. Second, ask the investment company who held the 401(k). If your old 401(k) was at Fidelity or Vanguard, your IRA is likely at the same company. Third, try the DOL: https://www.askebsa.dol.gov/AbandonedPlanSearch/ and the https://www.pbgc.gov/workers-retirees. Get help from special regional organizations: http://www.pensionrights.org/find-help. You can try http://www.missingmoney.com/.
I followed a lead from a Google search of the bankruptcy story of my old employer. Turns out they had hired John Hancock to pass out the money as monthly annuity checks.

Will you have enough money in retirement?
Do you plan to live to be age 100? Check your life expectancy here https://www.bankrate.com/calculators/retirement/life-age-expectancy-calculator.aspx
Since your number assumes half the folks will die before and half after this age, shouldn’t you prepare to live longer? Most people don’t want to think or plan for life longer than 1-2 years from now, but in financial terms, we must plan because saving and investing for the future assumes we will have the time to make a change. It is time that allows assets to grow so we have enough money to last as long as we live. Retired clients are concerned they will not be able to afford life. Planning helps deal with the worry yet few want to face death so they don’t plan. First, check your Social Security benefits at https://www.ssa.gov/benefits/retirement/estimator.html. You have started your Plan. I show clients what they can do with $100,000 invested in a diversified portfolio for 10, 15 and 20 years. I ask if they can afford NOT to plan.

GOP refuses to protect Russian election-meddling investigation by DOJ
McConnell refuses to put bill on defending investigation to vote. Trump has tweeted he won’t attack DOJ deputy and investigator. GOP understands that Trump has always been truthful and could never be guilty of conspiracy against America, just like Manafort and Flynn. This is a vote of confidence in prez and GOP wants to impede the investigation as much as possible because they assume Trump has something to hide. That is why he fired FBI director Comey and FBI deputies McCabe and Yates. It will be too late to take action once Trump fires Rosenstein and Mueller. But Mueller handed off money laundering, bank fraud, wire fraud, and other charges to another GOP—NY Fed prosecutor. Trump and his mob will not escape by firing DOJ investigators. Pardons may not work in NY.
Our Reps need Mueller report to act against Trump unless he postpones election 2018.

Regulators don’t stop financial services fraud
Trump cuts our protections. Are you a victim of your sales person?
The affinity fraud exploits the trust and friendship that exists in religious communities, senior citizen groups, military service members, ethnic groups and other communities.
Fraudsters ask for an upfront payment in order to perform or execute a deal. fraudsters could use official-sounding e-mail addresses that end in .gov, .mil, or fed.us to fool us. 
Binary options contract where the buyer bets on whether an asset's price will rise or fall within a time frame. Check yours: https://www.smartcheck.gov/videos.
High-yield fraud includes an unlicensed individual convincing an investor that an unregistered investment can produce a high-yield with little to no risk.
Internet And Social Media Fraud happens when we are manipulated by criminals.
Microcap fraud is when a low-price stock is heavily promoted to carry out other schemes, like pump-and-dump. Criminals fake buys and media hype then sell leaving us with loss.
IPO: Fraudsters offer investors a false opportunity to buy initial public offering shares before the company goes public.
The pyramid scheme relies on new investors to pay old investors with bogus gains. A multilevel marketing program is where earnings are based on the amount of sales. A pyramid scheme is an illegal practice. Multilevel is just hype unless you are top recruiter.
Prime Bank and Prime World Bank investments do not exist. They are all scam fronts.
Promissory notes: Swindlers recruit independent life insurance agents, who are not licensed to sell securities, to sell the notes for a commission. Hype is high fixed rate.
More scams and frauds on Americans not protected by our government.




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

Make America, “The Don” Great Again


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



(Dictators often have delusion they themselves ARE their country)

Treason is ‘giving them aid and comfort within the United States


Putin controls US power utilities and 21 state voting files, Trump slush fund, etc


The election is going to be rigged—I’m going to be ‘honest’” 

Could Trump postpone Nov 2018 election using excuse of Putin meddling needs fixing?
(Dictators in some countries start their régimes that way!)

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

We bought EPA head a $43,000 phone booth in his OFFICE—sinking into swamp.

SCAMS:
Alcohol makers deny link to breast cancer just like cig and coal makers to lung.
Donor-class starting to switch sides? GOP backers move money to Dems. See trends.
Scott Newsholme, Farmingdale NJ caught stealing $3 million: many schemes, ID theft.
Adrian Abramovich, Miami caught making 97 million robocalls fined $120 million.
America is being advised by TV hacks: Hannity, Kudlow, Bolton, diGenova, Dobbs
Jared lied again on rent-controlled apts to avoid regs: Public record is easy to see.
The Don lied on tape regarding his wealth to improve image: Never ends!

Jobs:
Fixer to replace Cohen: political legal experience with mob, intimidation, fraud, slime, 
Alex Jones, conspiracy radio, fired after sued for $1million for lies about Sandy Hook


Who owns your account now?

Can we trust Ari Melber to explain the legal case against POTUS?

Miracle:
Livery driver shot 8 times and saved by immediate police help 

IAN
41 Watchung Plaza, B242
MontclairNJ 07042
973.746.2014
Alerts

Friday, April 13, 2018

Best gift for your graduate


Best gift for your graduate: The Gift of a Lifetime.
Your monthly gift could provide your grandchild with real ‘social security:’ their own tax-FREE money. You take advantage of the miracle of compounding. Your gift becomes a $2,000,000 tax-FREE Wealth Reserve. You could reduce your taxable estate by $500,000 for each grandchild. Your grandchild will NEVER have to pay taxes on the money either. Social Security will exhaust its funds in about 2034. Every year you delay costs your favorite kid $100,000 later. 

Do you know how to pay for a car/truck?
We spend $500 a month on our cars and trucks—$360,000 during our lives. That could earn us $2,000,000 over time if we invested it. One of our clients was a car salesman: the costliest errors include paying cash. Interest rates are low especially at credit unions. Lease it for business. Two: buying a very used car is expensive. Higher rate loan and poor reliability for some models mean more repairs. Three: using your home credit line is not a good idea since the interest is NOT deductible under Trump’s tax law. Fourth: paying more for new gadgets like auto pilot and more mpg or mpcharge is not good. Autopilot is still not safe. Best choice: low mileage high reliable used family car/truck. Some popular vehicles have high markups. JD Power Dependability and Consumer Reports show you WHICH to pick for your search. Use ‘game theory’ to find the best deal: FIND ‘game theory’ at http://dankeppel.blogspot.com/

Is your broker pushing an annuity?
Pitch: can’t outlive your benefits, low-cost pension substitute, simple plan, guaranteed rate, 9.6% bonus, etc.  
Before you sign up for the rest of time, consider these points: Ads are misleading and were the basis for the Fiduciary Rule “buyer comes first” protection before Trump cancelled it. This is the worst time to buy an annuity for one reason--rates. You can’t break contract when rates go up. In 20-25 years your payout is HALF what you began with. Fees can take 3% of your money each year. No refunds: your money is gone--out of your control. 75% of working-age investors polled said they want the freedom to spend their retirement savings however they choose, even if it means possibly running out of money too soon. Annuities are NOT popular with retirees. Annuities are NOT the answer. They work for certain high net worth people who paid for a well planned retirement using a CFP or fee-only planner and use the life rider for estate tax.

GOP got criticism about over spending and will cut our benefits
While on Easter break, many Congress reps were given hell for running the debt up to $21 Trillion with their gift to the rich. The CBO says budget deficit for 2020 will be $1 Trillion even with all Trump’s promises. No one thinks the tax breaks they just gave to business and the wealthy will be reversed, so who is left to pay? We will. Our tax cuts were already scheduled to be raised by 2025 as a GOP legal trick. The next on the list are our welfare, Medicare, Medicaid. Trump vowed not to cut spending on Social Security, Medicare, or Medicaid but he has trouble making wise predictions. GOP calls the cuts “entitlements we've got to reform.” In November, Dems are going to repeat our answer “we paid for these things” and they are not like the business subsidies Congress gives to agribusiness, oil and gas, drugs, cars, etc. and never asks them for the money back even when the firms don’t need it. Some pay little or no tax too. 

IRS gives tax filing extension if you are not going to make it by 4/17
You can still file on 4/17 online at the IRS Free File sites  IRS free filing partners. If you need more time, just ask: https://www.irs.gov/pub/irs-pdf/f4868.pdf. You must estimate and pay up by 4/17. Even giving them $50 holds off penalty until October 15, 2018.
Check if you have a refund for a previous year—there is over $1 billion from 2014 alone. https://www.efile.com/unclaimed-irs-tax-refund-checks-and-bank-deposits/. Need previous year return (transcript): https://www.irs.gov/individuals/get-transcript. Check your refund: https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp.
You can create a tax-free retirement fund of $500,000 with that amount each year. FreeFile: https://apps.irs.gov/app/freeFile/jsp/index.jsp.
Use your refund to fund your tax-FREE IRS approved account: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

Tax on capital gains, dividends and interest as market declines?
If you had to pay tax on assets you are holding for later, there is an important way to avoid taxes now and later when you spend the assets tax free. If you don’t have to pay taxes and fees every year, your money can grow faster. Compounding is the miracle that makes assets grow exponentially--$3,000 per year ($102,000) invested = $1million in 34 years but only in a tax-FREE account. You invest in large profitable global companies with a $250 monthly no-fee contribution. You avoid taxes on all your earnings—gains, dividends and interest. And you can leave a legacy to heirs without taxes or legal fees.

What is an Active Share score for a mutual fund?
Active Share—the percentage of stock holdings in a fund’s portfolio that differs from its benchmark index—would “help retail investors determine whether a higher-cost, actively managed mutual fund fits their investment goals better than another, lower-cost alternative.” So a low active share score may cause an investor to think their manager is relying too heavily on a benchmark, and thus not earning their fees, when in fact the small percentage of equities identified by the manager that differ from the index can in some cases lead to returns that far outperform the index. The score can’t be the only measure of your manager but it gives you a reason to question if they are so-called “closet benchmark” managers charging a high fee for effectively replicating an index. Since a manager could improve your return with a large position in 1 stock and match the benchmark index for the balance of the fund, you have to question how much risk is the manager taking. You could suffer if their 1 stock bet goes south.
Use a proven passive/active portfolio of the best: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

NV passes rule to protect its citizens from bad actors
NV will protect its citizens from misleading and costly financial advice to replace the Obama Fiduciary Rule cancelled by Trump. In a few states, your advisor must give you alternatives that are in your ‘best interest’ NOT their own. For instance, NV advisors must make sure you are presented with retirement products that are NOT burdened with high fees and charges. The industry follows their own lobbyist organization rules: “suitability” standard, which allows the most egregious products. The previous Labor Dept rule, your “best interest” required sellers to not mislead you into high-cost products: sell only products with your ‘best interest’ at heart. Several other states are considering their own Fiduciary Rule. The SEC is considering new standards for brokers. Brokerage firms do not want separate rules by state but have killed the national DOL rule. An Obama administration study found that middle-class families are ripped off to the tune of $17 billion annually due to ‘best for firm’ rules: backdoor payments and hidden fees.
Use firms that follow “best interest” rules: https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275

Trump’s National Socialist government
Tariffs: When the government raises prices on certain goods, companies rise or fall. 25,000 workers who make parts out of Chinese steel will be laid off. Soy bean agribusiness will have to lay off workers since China will buy less soy beans from them. Some businesses will fail. Trump attacks Amazon. GOP has made business and wealthy tax breaks permanent while workers will have their taxes raised in 2025. Corporations pay a smaller portion of our national revenue: 9% vs 33% in 1945. Trump has given oil and gas licenses to Big Oil to disrupt the Pacific and Atlantic waters except GOP-friendly Florida. He gave Big Oil/Gas some of our national treasures to mine putting local tourism out of work. His choice of judges and prosecutors will mean some receive different punishment than others (Trump U. fraud was not a bad decision by biased ‘Mexican’ judge as Trump alleges.). Trump tells Justice Dept to go after his political enemies. Trump asks FBI to overlook his friends’ crimes. FBI subpoena of his lawyer is NOT attack on America. Trump is NOT America. Trump is a man NOT above law. Free society and equal justice don’t depend on one person’s whims. Playing games with our lives is toxic. America does not need National Socialism.



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

Make America, “The Don” Great Again


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



(Dictators often have delusion they themselves ARE their country)




Putin controls US power utilities and 21 state voting files, Trump slush fund, etc


The election is going to be rigged—I’m going to be honest” 

Could Trump postpone Nov 2018 election using excuse of Putin meddling needs fixing?
(Dictators in other countries start their régimes that way!)

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

Trump to Panama prez: save my hotel contract in Panama. “I don’t have foreign deals”
Trump pulls out of TPP trade pact and now wants in. What is going on with this guy.

SCAMS:
Vitamin supplements are not effective but we spend $billions anyway. Fountain Youth?
Chase mishandled estate assets to earn fees so jury hit is $8 Billion as signal to all heirs
TX Clifton Stanley Lifepay Ponzi caught stealing $4 million from retirees promised 36%.
Protect your Facebook data from manipulation of your choices and actions. Stop THEM!
EPA deputy is coal lobbyist—forget clean air, water, oceans, power. Tax dollars to Delta!
Laurence M. Torres, Alexander Capital caught churning accounts: stole $400,000

Jobs:
Kids staying home—1880 when same 32% kids stay home: getting like Eastern Europe.
Now we know why taxes are less in Red states: teachers earn just 63 cents on the dollar.
WH needs personal aides (get McD, read memos to Don), NSA advisor, must speak B.S.


Who owns your account now?
Guggenheim to Invesco: ETF fund fees cut.
Capital One brokerage to Woodbury Financial
Russia keeps NRA alive as political force: Russia mafia money for Trump election.

Miracle:
The victims of AR 15 make it the most popular rifle as they secure a ban in new Congress
Can Trump be indicted for murder: fire victim since he banned sprinklers in skyscraper?

IAN
41 Watchung Plaza, B242
MontclairNJ 07042
973.746.2014
Alerts