Your Unbiased Advisor: Claim ALL your SS benefits?

Did you claim ALL your SS benefits?

Even though changes were made in 2015, spouses can still receive benefits based on the primary earner’s work history. The spouse must be 62 years of age and the primary earner must be receiving Social Security benefits, according to the Social Security Administration. The spouse is entitled to half of the amount the primary earner is receiving. In general, both the primary earner and the spouse receive more money from Social Security the longer they wait to receive benefits. Social Security benefits grow each month that the recipient delays taking the benefits. A person waiting until the maximum age of 70 to claim benefits will receive approximately 8 percent more for each year he or she delays payments after the age of 62. That can make a difference later on especially if your family genes point to a longer life. One person in a close family took benefits at age 62 and one at age 70. Big difference for life: $1514 vs 2854 per month. Since both of them are still working after age 70 ½, they pay more taxes now than they did before because SS benefits are taxable to 85% AND they both must take out IRA withdrawals, called RMDs. RMDs are taxable too since IRA money was never taxed.

https://www.amazon.com/What-do-with-your-RMD-much-spend/dp/1718946716

Can large companies create affordable health care?

As Comcast, Amazon, JPMorgan and Berkshire Hathaway redesign care for their employees, can they save us all from for-profit insurers? No one is happy with current escalating costs and poor services and lack of essential cost information. Insurers don’t want to share data or even our own ongoing medical history. For most people, it is impossible to decipher their companies’ own care options—small co-pay, high deductible, lower premium, HMO, PPO etc. It takes a MBA and insurance consultant to find the plan that is best for our family. Comcast created their own financial wellness firm to assist employees to make smart choices. This is more important now that Trump promotes junk insurance that can bankrupt us for lack of comprehensive coverage. Some Dems think Medicare for All is the answer.

Buy only comprehensive care: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

Trump gives brokers more fees from us; wealthy get another tax cut

Trump wants to give advisors more fees for IRA and 401k accounts. Our deficit will balloon even more since the wealthy will be allowed to avoid paying taxes on their tax- deferred retirement money longer. Retirement savers must start withdrawing funds from these accounts when they turn 70-and-a-half. Allowing them to stay invested longer also preserves the assets under management advisors manage and AUM fees they charge. Some advisors report that their clients pay the tax due and reinvest the cash they don’t need now. However, if you are still working at age 70 ½ you can leave your 401k or other pension alone. You don’t need to pay tax until you retire. “Often times, these clients would prefer not to get taxed either because their income is very high or they would prefer to keep this money tax deferred for the next generation.” Trump’s rule change would mean less govt revenue, higher deficits, greater interest owed by those left to pay taxes. This creates an even larger cliff that most Americans will face in 10 years.

Avoid taxes like the wealthy: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

How can you avoid SCAMS in financial services?

Wall Street is a ‘war’ zone! We must enter this war zone with the protection of knowledge. We could lose all our lifelong savings in one trade. Brokers and advisors have weapons that can 'kill' us financially. They are hidden behind lies, exaggerations, obfuscations and straight-out fraud like faking our signature. Half-truths and our assumptions and greed are also at play. These are our 'soft' underbelly targets. There are warning signs but most SCAM situations require us to be knowledgeable and to check every move. My first day as a manager at a security firm I was told: ‘brokers are [car] salesman.’ Our future life is at stake and yet we give strangers our money so easily.

Take Buffett’s advice: https://www.amazon.com/Avoid-Scams-Brokers-Advisors-Sender-ebook/dp/B07GZ1WSP1/

Old ways the wealthy avoid taxes that we have to pay for them

The wealthy can make their wealth last with ‘creative’ planning so that the kids and grandkids get richer without taxes ever being paid. We have to pay for the courts, police, military, roads, airports, etc. the rich use but don’t pay for. We taxpayers help pay for their kids and grand kids yachts and properties. By way of a simple example, let’s look at a hypothetical $100-million estate. Let’s say that the investment returns for this estate, whether due to superior management or luck, are 8 percent, rather than the 7 percent market return. That extra 1 percent of return adds up to $1 million before taxes in any given year. Even if the estate doubles the market’s 7 percent return, it’s only earned $7 million in alpha. In contrast, if the family plans their estate effectively and avoids transfer tax, the savings will leave the family more than $30 million ahead. Try earning $30 million through excess performance is almost impossible. The best estate planning advisors use tools like recapitalization of businesses, freezes, discounts, and transfers into generation-skipping trusts to help protect family wealth. Effective planning can lead to an exponential advantage in family wealth over time.

Avoid paying for their estate taxes: https://www.amazon.com/Pay-No-Taxes-Retirement-legally/dp/1507527977

Are the ‘new’ fixed indexed annuities right for you?

Sales of fixed ‘indexed’ annuities hit a record $17.6 billion up 17% over 2016. Just like legalizing sports betting in New Jersey, getting rid of the rule to "do what is best for the client" lowers the barriers to exploiting the folks who can least afford it. Essentially, New Jersey just raised taxes on citizens who can least afford them. Advisors say "guaranteed income for life” and “your principal will never decline even when the stock market does." But you know those statements are false. There are caps, participation rates and other contract limits so insurers don't lose money. And those limits don't go away when interest rates go up and CDs start paying 5-6% again.

You know about the time value of money: a fixed annuity payment is worth HALF in 20 years when most people will need it most because their costs will have DOUBLED. Example: $100,000 in fixed annuity pays $559/mo at age 65 now. Inflation 3% for 20 years raised price of gas from $1.06 (1998) to $2.837 (AAA). Your real "guaranteed income for life" will be worth $280/mo—Half Buying Power. Also, the real VALUE of your "principal will never decline" is reduced by 40-50% because of inflation. Insurers use these false statements because they sound right to folks who have no business or finance experience. Yes, you can put your money in a savings account so you won't lose money in the market but you lose over time including the lifespan of most annuities, even ‘indexed’ ones. The index doesn’t help much. Popular with brokers doesn't mean indexed annuities are the ‘best’ for us. It just means sales people don't have to follow the Fiduciary Rules. There are just too many caveats to annuities and most sellers themselves don't even understand them. Most people are better off with a ladder of CDs for safety. Or take Mr Buffett's advice for his family: Buy two Vanguard funds for the long term. Most unbiased advisors say: If you can afford an annuity, you can afford to do without them.

https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

Are pre-retirees driven by FEAR

Interesting response from one client after they went through the retirement planning process and finding they have enough money to last to age 95: "We need to save more money." This is an example of what I hear from many retirees--they are so used to saving and running on FEAR that they will end up as 'bag lady' syndrome, they can't enjoy their money. Even with 'proof' using a Monte Carlo market risk test, that says they have done a good job for retirement, they can't shake it. Our emotions take over our rational mind.

We need 'therapy' with a financial therapist since we don't know the future and FEAR drives us. I think the financial press pushes the same message. 'You must do this because ...[a fear statement like SS runs out of money by 2034 or market correction can drop 40% of your portfolio] is all we hear on TV and from Wall Street ‘professionals.’

We need to get a retirement plan in writing: https://www.amazon.com/Financial-Future-Insurance-mutual-funds/dp/149355204X

Is Final Expense insurance right for you?

This kind of insurance does not require an exam so it is expensive. It covers those who know they are sick or terminal. One firm the does TV adverts wants $111.20 a month for $15,000 benefit (after 2 year waiting period). This policy could pay a relative for anything from funeral and last minute medical bills to a party. There are no restrictions on the beneficiary. However, consider alternatives like a pay-on-death POD savings account at your bank which probably has no insurance company expenses. $111.20 a month, $1,333.40 a year for male age 70 means that at the expected time of death, age 85; your beneficiary will have over $25,000 (3% https://www.bankrate.com/landing/cd-rates). If you have some money now, you can leave more with CD rates rising (3.53%). If you qualify for no exam term insurance of $20,000, you could pay $82.90 a month. This no exam insurance is usually for those who have no assets. Most people have an emergency fund or IRA that can take care of expenses as long as they are properly titled. IRAs go directly to the beneficially—no probate needed. Finally, you could just ignore their debts (you are not obliged to pay their debts) if they donated their body to science.

https://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

Can you take the 20% business deduction?

The Qualified Business Income Deduction is a new tax regulation that will impact small business owners. If you own a pass-through entity—sole proprietorship, partnership, limited liability company, or S corporation—you may be eligible for a new tax deduction. It is a significant tax reduction for business owners who qualify for it. But it isn’t simple because numerous limitations and acronyms come into play. Here is a brief introduction to the qualified business income deduction. As usual see your tax preparer.

The Don giveth and taketh away: 10 deductions you can’t use: Entertainment, Loss Carryback, Losses, Transport Fringe, Relocating, Certain Gains, Domestic Production, Some Settlements, High Interest.

Pay your fair share: https://www.amazon.com/Only-little-people-pay-taxes/dp/1478222441

Can you still afford your long-term care policy?

Genworth Financial announced that regulators in 22 states had approved a quarterly weighted average rate increase of 58% for some of its long-term-care insurance policies. Unfortunately, such LTC price hikes have become the norm in the industry in recent years. In fact, Genworth, which has the nation's most LTC insurance policyholders, had already raised premiums by 28% in each of the past two years—and other LTC insurance carriers have applied for similar increases. You may not be able to afford your contract. "Genworth has lost $2.9 billion cumulatively in our long-term-care insurance business on our older policies, due to higher than expected claims costs," a rep said. But why should you have to pay for their mistakes in pricing—like bait and switch. They knew disability and longevity stats and insurers have always paid for the state regulators. Many of them worked for the insurers and are sympathetic. What do you do now?

Convert or quit? https://www.amazon.com/Long-term-Care-Insurance-Updated/dp/148274001X

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Make

~~America~~

, “The Don”, Great Again

Two

Americas

: A Banana Republic? Do we really want an infant king? Daddy Putin!

Trump suggests protesting should be illegal

US democracy in crisis

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How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!