Your Unbiased Advisor: Are Target Date funds right for you?

Why are Target Date funds popular with young and mature investors?

For some investors using these funds takes the guesswork out of trying to find the next big thing, next star manager, next momentum sector, next favored country or next favored capitalization stocks. Since most people and computers cannot forecast the future growth areas in the world, it makes sense to NOT try to guess. There are many TV pitches and guru managers who have to prove their huge paychecks every quarter but realistically, most people just can’t follow along. Some folks are just tired of worrying about their portfolio but don’t trust their broker, advisor or brother in law. Many of these funds use index funds with a balance between stocks and bonds depending how far away you are from the retirement date you set. Thus a TDF 2025 might have 65% stocks and 35% bonds with 10% return for 1 year and 7% since 2003. Contrast that with TDF 2065 with 90% stocks with 12% return for 1 year and 8.7% since 7/2017.

Simple strategies often win: https://www.amazon.com/Money-Ball-Investing-Winning-unfair/dp/1548831409

GOP cuts food stamps not corporate subsidies

Again GOP shows why it is not the conservative Grand Old Party. They are the rich helping the rich and their corporations. GOP cutting food stamps that feed people who can’t make it on $7.25 an hour—same as 2009. Could you? Instead of paying for the new tax breaks with cuts in corporate subsidies, they cut food stamps. Six parent companies have received $1 billion or more; 21 have received $500 million or more; and 98 have received $100 million or more. Spanish electric utility Iberdrola got $2.2 billion.

Boeing, Ford Motor, General Electric, General Motors and JPMorgan Chase are the largest recipients of state subsidies; federal grants and tax credits; and federal loans, loan guarantees and bailout assistance. Boeing alone has received $13 billion in subsidies. Intel and Alcoa each received nearly $6 billion. General Motors scored $3.7 billion and Ford secured $2.5 billion. All told, 19 large corporations have received at least $1 billion. None of these 1,800 firms are needs corporate welfare but our so-called ‘representatives’ gave and have given them ‘food stamps’ since WWII. Some claim offshore residency to avoid any taxes. Some are owned by foreigners. Big subsidies go to corporate ‘farms’ some of which are paid to NOT grow anything. Remember, we are paying to subsidize milk and other foods. Agriculture is one of the most regulated industries, yet Trump has not bothered to de-regulate it. Farmers in New Zealand prosper without subsidies. Their lobbyists are not as powerful as ours.

Is Trump your lobbyist?: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

Another way the new Trump GOP tax helps the wealthy

‘Living’ and working in income tax-free states offers an obvious tax edge since local taxes are no all deductible. Signing bonuses, royalty distributions and advances will be taxed at the domiciliary state tax rate of zero. One state domicile for taxes; one for working; one for vacations. Mitt Romney claimed Utah (no tax) as home. Set up a ‘loan-out’ corporation. A loan-out is a business entity separate tax-wise from the individual for whom it was created. A rich person establishes the loan-out and then becomes its ‘employee.’ Their corp deducts the employee expenses not the taxpayer since the new law outlaws the Form 2106. This also gives them asset protection and retirement benefit programs. Working for your own foundation offers other benefits.

Take advantage of the tax law too: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

What to do with your RMD: How much will you spend?

Your RMD or required minimum distribution is the amount the IRS calculates for income tax purposes from your retirement accounts annually after your turn age 70½. You may want to invest part of it for the future or cut the amount in your IRA that you will pay tax on in coming years or contribute to legitimate charities. I help you answer these questions now: Will you have enough? How will you invest? How much will you spend? Explore 17 alternative uses of your RMD. Create tax-FREE income from your IRA while reducing future RMD. Take advantage of the miracle of compounding: $100,000 may become $500,000 in 15 years. Create an investment plan for 30+ retirement years. Self-insure and self-fund all your financial needs. Social Security to cut benefits in 2034 so you may need more income later. You have time to do something about the future.

The chickens have come home to roost: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

Audits are down—IRS has no money

The number of IRS audits fell in recent years to the lowest levels in almost two decades. However, certain red flags such as excessive deductions (especially non-cash contributions to charities) can often trigger audits. Other triggers include large deductions in general, in comparison to income; large business expenses; an audit of a related return, such as of a business partner; certain kinds of activity in rental property; excessive losses on rentals; or, on a Schedule C for the self-employed, unusual expenses for depreciation, travel or offices.

Also sales of non-public stock, rental expenses on a Schedule E and miscellaneous deductions related to the 2-percent limit on AGI. The IRS compares your return with statistical norms. Returns with anomalies can then be reviewed by up to three layers of IRS personnel before a decision is made to audit. They also use random audits to bolster validity to their computerized norms. They also use a computer automated process to kick out returns that appear abnormally out of range of a peer norm. More red flags or higher potential ‘adjustments’ trigger audits. IRS does NOT call—a letter starts the process. Most audits are completed by mail. Most ask for back up to your numbers.

Avoid audits with NO taxes: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

How did Buffett’s index beat Wall Street?

Buffett’s index pick returned more than the Wall Street geniuses. In 2007, Warren Buffett bet a million dollars that an index fund would outperform a collection of hedge funds over the course of 10 years. This week he won that bet and gave $2.2 million to his charity called Girls Inc. Over the course of the bet the S&P 500 index fund returned 7.1% compounded annually, significantly more than the average of 2.2% for the experts. Buffett has advocated putting the bulk of our investments in a low-cost index (he said Vanguard’s 500 index). For those who follow his advice, this bet confirmed his statement that “a very low-cost index is going to beat a majority of the amateur-managed money or professionally-managed money.” Why don’t more smart people follow this advice? He thinks it is because they think they are smarter than everyone else. Instead, low-cost beats high-cost every time studies show.

Double your money every 8-10 years: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

Can you really earn a second job income by trading?

You may have heard an advert that you can make another income from trading if you take a course at places like https://www.tradingacademy.com. They say they break down the concepts of trading into easily digestible pieces and provide an overabundance of online trading resources in addition to classroom training. You get a free class too. I am sure the OTA management does earn a second job income but you are not likely to learn anything more than ‘how to lose at day trading.’ For $60,000 tuition, they are laughing all the way to the bank. You know that if they really knew anything about investing, they would NOT be wasting time with this marketing firm. Read the reviews: https://daytradereview.com/online-trading-academy-review/. I made over 13% in my NON-trading account in one year. That’s $78,800 just from NOT trading.

Earn 11% per year over time: https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373

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Make

~~America~~

, “The Don” Great Again

The Path to Dictatorship

“I have absolute right to do what I want with the Justice Department”

“I could shoot someone on 5^th Ave and not lose voters.”

Trump’s Gestapo ICE troops break into house in front of kids

Immigrants not human, but "animals" Hitler/Stalin agree.

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

Loyalty to The Don above country. Treason? Above the Law?