What every high
school student knows for money success
Only 13 states
require high school students to take a personal-finance class to graduate. Among
16- to 18-year-olds, 86 percent said they would rather learn about money
management in the classroom than make financial
mistakes in the real world. When young people enter the working world
and have to make it on their own, they should have learned these six simple
lessons. As soon as they start working, they will be asked or challenged to
start saving/investing. Of course employers can’t help them make the right
decision about investment options. They would be liable. Most financial
products are a waste of money. Unless you are running your own business, the
best strategy is to follow Warren Buffett’s advice. He said buy a low-cost
market index like Vanguard 500 Index monthly and don’t stop. He
just proved it by beating 6 hedge funds.
The six lessons:
The six lessons:
You don’t get rich
by saving in the bank.
You don’t get rich
by spending more than you earn.
You don’t get rich
by ignoring investment costs.
You don’t get rich
by ‘playing’ the market.
You don’t get rich
by paying taxes on your investment earnings.
You don’t get rich
by destroying the miracle of compounding. Compound earnings is a miracle: $3,000 a year;
33 years or $99,000 in; $1,000,000 out.
Bogle explains why market
timing does not work
Emotions will always
give you the wrong money signals. We need to control them or pay someone to
help us control them. Why? Because the record of being in ‘it to win’ for the
long haul provides our best chance of a having enough money. We
can earn 10-12% per year over time. Bogle insisted we don’t need to pay a
person to control us once we understand how the market works and how costs
matter—fees hurt us badly. Over time, our all-in 2%
fees/trades will take up to 63% of our long-term potential total accumulation.
WOW. We give up over HALF of what our money can make for us. We pay for Wall
Street’s wealth. Watch Bogle’s last interview:
https://www.cnbc.com/video/2019/01/17/
jack-bogle-in-his-last-cnbc-interview-on-why-timing-markets-never-works.html.
John Bogle was ridiculed by the
industry for saving us $ millions. He was an industry disruptor—and now
index funds—ETFs are its choice product.
Pay less; earn more: https://www.amazon.com/Disruptors-Three-Innovators-increase-WEALTH/dp/1720857563
Watch your 401k fees
and charges go up
Plan administrators
and employers are worried that all the big money leaving for retirement
(rollovers to IRAs) will cause them to lose profits. Younger
workers have smaller balances. If you find yourself in this situation, rethink
your asset allocation so you are using the low-cost funds. If your plan has
little or no matching funds from your company, it may be time to reconsider.
Moving out of your 401k to a self-directed IRA may seem a good value since the
same assets you invest in now will likely be available in an IRA trust account.
You can move your assets without a penalty by using an IRA trustee to manage
the rollover transfer—you don’t touch the money. Trustees like Vanguard and
other funds have Target Date offerings inside an IRA. You still can deduct
contributions and grow earnings tax-deferred, but you are not paying a plan
administrator a $7 figure bonanza. You need the amount you pay in fees more
than they do.
Consider the
alternatives: https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938
New standard
deduction may make these deductions/credits irrelevant
In 2018, you can
still deduct some expenses IF they total more than the new standard
of $12,000 single; $24,000 joint; 18,000 head household. Deduct $5,500 ($6,500
over age 50) for IRA; student loan interest; alimony; health savings account;
self-employment tax; self pension; self health plan; special occupation; health
plan premium; mortgage interest; property tax; charity; education
credit; child care credit;
energy credit; premium tax credit; foreign tax credit. Confirm the info: https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
Use all your tax credits: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382
Social Security and
Medicare changes
The average SS benefit
with COLA increase is $1,461 per month. Medicare’s 60 million beneficiaries
will pay $135.50 per month, up $1.50 from last year. High earners will pay
more for both Medicare Part B and Part D. However, they will only be taxed for
SS on $132,900 of their earned income. Most wealthy also pay less in the
new GOP tax rates—plus the 20% profits deduction for small business owners. In
2019, retirees younger than 66 can earn up to $17,640 before losing any SS benefits.
The current full
retirement age of 66 is increasing for workers born after 1954. Once our
income including SS benefits tops $44,000, we pay taxes on up to 85% of our SS
benefits. (Taxes on money we paid tax on already.) Meanwhile using tax
loopholes, Jared
and the Trump Mob pay less. They actually receive our tax money as rewards
for using tax shelters.
Learn to pay your
fair share: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300
Where all your
broker/advisor commissions, fees, charges go
Everybody
gets paid very well and still the owners clear 15-25% of the revenue. A
large Wall Street firm can make $ billions from helping companies sell their
securities to the world, loan securities to other firms, buy and sell
securities to retail and wholesale customers, loan you money to buy securities,
and more. Owners like the Johnson family of Fidelity take millions of your
investment dollars each year for bigger mansions, yachts, planes for each child.
Abigail alone, the granddaughter of the founder, has a net worth of $16 billion.
The rest of the family has to be fed too. You need it more than they.
Don’t let Wall
Street take your money: https://www.amazon.com/Wall-Street-Cleans-Up-Advisors/dp/1517043255
**************
Truth isn’t truth, his new
lawyer says
Yes, he
‘coached’ Cohen for Congress, his new lawyer says
Two Americas
***********************
How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!
Mueller report costs us $ millions but we won’t get to see
it. GOP will quash it.
Wall costing a lot more than $5.7 billion—economy
lost over $5.7 billion so far!
IRS
can’t process paper returns/refunds—hundreds can’t get to work.
Smithsonian
losing $1 million a week during shutdown: young minds go wasted.
Senate
votes twice to continue the pain for American business and workers: Coulter
wins
SCAMS/SPINS:
401k
asset fees get paid back to your employer so 401k fees must be raised.
Stephen Davis, RI, caught
giving bad advice: client lost $60K, firm ignored; fine
Gary Basralian caught stealing $2 million from clients;
Royal Al. failed; jail time.
How many people does your broker/advisor
firm have to take care of?
Walgreens caught overcharging
Medicare for insulin pens: fines, no jail
Hospital, Doctor, Drug company lobbyists
prepare attack on Medicare for All
Trump’s mob can’t
understand why unpaid staff need food bank: ‘just take on more debt’
Another Trump
mobster arrested—Stone charged: obstruction and lying.
Trump’s
AG promises NOT to release the Mueller report—Hide what from Russia
Trump lawyer: he talked to Cohen about his congress
testimony! Confirms
obstruction
Mob
Boss ‘threatens’ Cohen: Cohen quits his congress statement—gives it up to
Mueller
GOP senate won’t
vote on opening gov until The Boss says they can! Wall or end USA
“Individual 1” could be a Russian “asset”: Why FBI
opened a file on The Mob Boss.
Trump has fingers
made to look longer, hair better, face slimmer, etc in media.
GOP can’t say
“You’re fired” to The Boss because his
voters will ‘kill’ them in 2020.
The Mob Boss can never go to jail: Trump
has Kava as Supreme so no indictment.
‘No man is above the
law’ … well up till now. Dictators
nullify courts first, then votes.
Supremes
protect Don’s ‘Orders’? – GOP: ‘Sure, pres
can change
Constitution anytime.’
----------------------------------
Jobs:
1,500
laid off at State Street mutual funds and stock price rose.
Our future: I got another human from my boarding house to
service my robot while I take my kid to the Make a Robot Fair. I
fear there won’t be many robots like mine to fix in the future.
What
about running for president? Field is wide open and filling fast—20
in 2020?
Airlines
have more planes so need more pilots: what
about flying?
Top
jobs for the next 5 years are obviously tech: $200,000 for best
unless you have ‘juice.’
Who owns your account now?
Sears
employees’ pension funded to 64% of promises—gov takes over paying
Thousands disabled
work through federal program but sent home; no pay
Miracle:
Graeber says FDA
approved 2 anti-cancer
drugs with 60 in preclinical and 30 in trials.
Alzheimer’s
cause: P gingivalis, the key bacteria in chronic gum disease.
Cure in trials.
IAN
41 Watchung Plaza,
B242
973.746.2014
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