Friday, June 8, 2018

Another way Trump’s new tax law helps the wealthy and we pay


Another way Trump’s new tax law helps the wealthy and we pay
We taxpayers will be subsidizing the wealthy AGAIN as they avoid tax on junior’s Ivy League college fund. These investment accounts are not taxed. The gains can be used for any child, any time. Trump broadened the use of 529 education funding by allowing the funds to be used for grade school and high school costs. The rich can roll 529 assets into other kinds of plans too. This can mean significant chances for nigh-net-worth clients to help younger family members financially. Grandparents can now pay tuition directly to a school for their grandchild without limitation and without impacting their ability to make further gifts. No gift tax would be due until they exceed the lifetime estate and gift tax exemption of $5.6 million. Also many states allow an income tax deduction for contributions made to a 529. The wealthy can avoid tax on all the gains.

Are the ‘Smart Beta’ ETFs really so smart?
I am biased in that Bogle has convinced me that low-cost long-term portfolios will help me reach my goals with less anxiety than other strategies. Are ETFs that can be traded all day better for me? They encourage higher costs and market timing mistakes even though they are all the rage among industry analysts and sales people. I grant that some advisors provide strategies that may beat Vanguard market index funds over the short-term. But I am looking for long-term peace of mind. I was surprised to hear early adopters like Mr Deluard are now echoing Bogle’s analysis. Winners come and go as the market changes. If today’s strategy is fueling 67 new ETFs this year, how do the ‘pros’ know which one to jump into this month. In the past I tried timing and sector rotation and I lost to the plain vanilla index earning 11%. Since no one can predict the future, aren’t the new funds going to cancel each other out and make the lower cost indexes the winners over time.

Are Target Date funds right for your 401k?
Most employees have just one fund—a TDF—in their 401k according to a Vanguard study. This is probably because employers can now put us in a 401k automatically upon hire. Since most people are not financially literate, this is the best place for us. Warren Buffett recommends putting our long-term money in market indexes. Target Date Funds offer a mix of indexes depending on our future retirement date. So a 2050 fund might have 90% in large company stocks. As we age, our portfolio leans from stocks to bonds.  “Target-date funds have revolutionized investing for millions of Americans, providing a ready-made, diversified portfolio for retirement savers,” said Martha King, Vanguard. If everyone started saving 10 percent of salary at age 25 in a target date fund and retired at age 67, “we wouldn’t have an issue with retirement savings in America,” an analyst said.



What does it mean when your advisor does not return calls/emails?
It means they are busy. Remember that your person is a salesman or saleswoman first and foremost. If they want to keep their job they have to bring new money to the firm or they are gone. Are you one among the hundreds being served by this person or their ‘team’ and how long have you been serviced? New tech has changed the ‘trust’ business. The firm knows daily where you rank as a priority. If you don’t rate a callback it may come down to money. The firm can make more from others than from you. It is like the time you were ignored at Nordstrom because you were not dressed to the nine’s. Salespeople live on commission, fees, charges, etc and if you cost more than you provide to them, then there is reason to reconsider your relations. Some say the max number of clients is 100 simply because of the mind’s limits. The firm only wants wealthy clients. Maybe your wealth would be better served by your own diligence.


How much do you need to become financially ‘comfortable?’
$1,100,000. This is the amount of money most of us say it takes to be "financially comfortable," according to a recent survey. However, only a few of us ever get there. Why? The main reason most of us are not 'comfortable' is that we don't plan to have a million dollars ... ever. Most of us settle for a 'fantasy' $ million—playing the lottery every week. A $1 million is not hard to reach with a plan, $250 and TIME.
         Now we can create wealth for our family— $1,100,000 and more—by using new wealth-building tools from industry DISRUPTORS. We don't need expensive brokers, advisors or agents to buy the essentials of an efficient financial plan. We don't need a lot of money to start building wealth. All we need is TIME and a plan. Pay less; keep more.


SCAMS: Beware the ‘no-cost’ annuity exchange scheme
Fifth Third Securities, a bank, was fined $4 million and required to pay $2 million in restitution to customers for failure to accurately consider and describe costs and benefits of variable annuity (VA) 1035 exchanges. Brokers/advisors recommended the exchanges without a reasonable basis to believe they were suitable for customers. Licensed sellers told customers that the new VA contracts had living rider benefits guaranteeing minimum payments to customers and their beneficiary when none existed. Bank securities subsidiaries typical give their sellers a list of all the annuities that were sold in the last few years, telling them to ‘up-grade’ the contracts. Usually this results in ‘churning’ as the customer signs over the value of the contract to another annuity company for a new commission. In many cases, the seller has not explained this complicated transaction which can involve 1) loss of value via charges to leave the old contract; 2) a new set of years of high charges that make the money illiquid; and 3) additional annual fees for benefits that may not be helpful to the customer. A customer is tricked by the ‘no-cost’ pitch. The exchange is tax-free under IRS 1035 rules but other costs may become clear after the sale. Exchanges are difficult to reverse so get new ‘benefits’ in writing.

Ever wonder how certain companies win and others lose?
Chinese telecommunications firm ZTE is spending big on lobbyists as it works to save the company. For help in Washington, the company turned to firms and representation that includes ex-lawmakers, former federal regulators and individuals with ties to Trump. Trump’s family received Chinese funding for their project in Indonesia recently. First Family received special trademark rights on a their brand of handbags, books and clothing from China recently. Co-incidence is ruled out. Remember, this is the firm that the CIA, FBI and Intel warned has placed spy gear inside their phones. Presidents are not supposed to receive direct benefits from American policies. At the same time, Trump is telling the post office to stop using Amazon for delivery and he’s telling his Energy Dept to prop up coal companies and he’s telling thousands of workers in auto and appliances they need to pay more for steel and aluminum and telling farmers they will lose sales to Mexico, Canada and Europe. Presidents are not supposed to pick winners and losers.



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Make America, “The Don” Great Again



Only a criminal looks to a pardon for a defense


Constitution: no clause for ‘absolute right’ to pardon





Trump thinks the govt is ‘conspiring against him.’


Trump gives Putin control of election: eliminates U.S. cyber advisor
Treason definition: ‘giving them aid and comfort within the United States

Fake ‘Witch Hunt’ produced 5 guilty; 17 indictments.


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


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


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Defense buys fewer missiles tanks planes since tariffs raise price 25%
Opioid crisis could be ended by Trump by going to the sources: the drug makers/cartels
Trump gets his wish: nuclear bomb armed Iran and Israel is first target—Putin cheers.
Trump orders Energy Dept to adopt socialist government support for coal: we pay more!
Trump: Sessions will kill ObamaCare in TX court case. Ideology over Congress law


SCAMS/SPINS:
Benjamin Alderson, Bradley Hamilton, deVere caught misleading clients; fined $8 mil.

Insurance regulators vote for insurers and against public need for ‘best’ annuity sales rule
Worthless coin purchases skyrocket despite lack of security and normal sales rules. 

Trump will pardon you if HE thinks you were treated unfairly-jury verdict be damned.

Jobs:
Wall Street gurus move jobs & offices to FL to escape taxation
Some employers pay your student loans too


Who owns your account now?
Make sure your accounts go to the right person—unintended mistakes of a Will
John Oliver explains Guardianship and you—what to avoid or lose it all.
Wells Fargo Indiana, Michigan, Ohio and Wisconsin branches to Flagstar Bancorp


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

Miracle:
            Charles tried this in 1649: 59 republicans signed death warrant.

One man learned to love others (Muslims) after killing them in Army & joining KKK.


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