Your Unbiased Advisor: How much does it really cost to invest?

How much does it really cost to invest?

Warren Buffett suggests we invest in two low-cost funds at Vanguard for life. He thinks John Bogle, Vanguard founder, was right—low-cost investing beats Wall Street advisors over the long term. Trading securities does not pay unless you have insider information (which is illegal, except for Congress). Bogle calculated that, over our investing lifetime, that little 2% broker/advisor fee will erode 63 percent of what you would have had. As Bogle puts it, “the tyranny of compounding costs” is overwhelming. Do the facts back up these claims? Buffett bet $1 million on the Vanguard 500 Index and beat 5 hedge fund strategies from 2008-2017. DALBAR tracks investments over time. They found that a simple S&P 500 index fund earned 11% a year over time while the average equity investor using a manager earned just 3.79%. “Cost matters” as Bogle used to say.

Pay less; earn more: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

Trump tax returns may not reveal his hidden tax avoidance schemes

Since the 70s, Trump has been paying accountants and lawyers to hide his income and net worth for tax and negotiating reasons. With over 500 subsidiaries and entities, his situation may be difficult to understand from tax returns. He has been involved with foreign entities and shady characters for many years. Trump uses the alternate American tax system—the one designed for the wealthy. Tricks and perhaps illegal financial practices have stumped his bankers and auditors. His specialty is real estate which is one of the best methods of avoiding income taxes. When you buy a building with a loan, you can deduct from rents all the expenses and maintenance and ‘depreciation’—the full cost the building can be used for years to provide tax-free cash. For instance, in 1995, Trump paid no tax on his income of $10,846,076 because he had ‘paper losses’ of $915,729,293. That $ BILLION ‘paper loss’ would enable him to avoid taxes for up to 18 years. Each entity can have ‘paper losses’ for years. Plus Trump wrote off his loans for his bankrupt casinos, resorts, and buildings. And Mr Christie, Gov of NJ, even cut his casino taxes from $30 million to $5 million. Even his profitable golf firm in Westchester worth $50 million on some of his statements pays taxes on only $1.4 million tax assessor’s value. Jared has his own little tax avoidance gig going on too. He’s in on Dad’s new tax scam.

We pay Trump’s taxes: https://www.amazon.com/Americas-Socialism-Only-little-people-pay/dp/1535218584

Is it too late to file taxes?

Before spending $200-400 for a paid preparer, try filling in the screens using the IRS partners at irs.gov https://apps.irs.gov/app/freeFile/. The instructions are easy to follow especially if you have last year’s return to compare what forms you need. I have found https://www.freetaxusa.com very easy to negotiate and respond to email questions. This one charges only $15 for your state return: Fed is free. It is still $15 when as complicated like mine. Basically, you must pay tax on all your taxable income—wages, pensions, etc. This year you have less to deduct because the standard deduction was doubled. Beware some software glitches. However, you lost the personal exemption of $4,050 for yourself, your spouse and each of your dependents. For each child under age 17 you receive $2,000. In high property tax states—NY, NJ, CA, CT, etc you will probably owe this year. The deduction cap is now $10,000 and the average homeowners in these states pay about $20,000 property tax. The law was written by a Rep from a Red state.

Try software at irs.gov https://apps.irs.gov/app/freeFile/ before you go to paid preparers. Penalty for underpayment modified this year. Get extension: https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return. Check the status of your fed refund: https://www.irs.gov/refunds

Use your tax refund to create a $1 million retirement fund

Michele had trouble saving. She seemed to always be waiting for her next paycheck. She never had enough to save for a rainy day like her Mom did. She used to make about $35,000 as a shop manager but with federal, social security, Medicare and state taxes, unemployment, disability, and health insurance, she was not able to put anything away for retirement. Years ago, her local tax preparer suggested she use her tax refund to create a retirement fund. Usually Michele would use her refund to pay bills or buy something special. The tax preparer said that if she agreed to start an IRA with $2,000 of her refund, she would be able to increase her refund--Uncle Sam would help her save. The amount she invested would reduce her income and make her refund larger. Each $2,000 would grow over time if she left it in stock mutual funds in her IRA account. Over time, it can grow large enough that she will have enough for retirement.

A Plan for those who have NO 401k at work: https://www.amazon.com/Tax-Refund-Millionaires-Let-Uncle-Help/dp/149595644X

Are you driving the best car for under $30,000?

10 Most Comfortable Cars Under $30,000: Volkswagen Passat has one of the roomiest back seats in its class. Kia Optima added a suite of driver assists as standard equipment. Hyundai Sonata offers a wide range of models and powertrains to match your budget. Buick Regal Sportback has liftback body in addition to its upscale feel. Chevy Malibu has exterior style to go along with its comfortable interior. Subaru Legacy Outback offers the rugged good looks in a useful wagon body style and dependable all-wheel drive. Nissan has answered critics of bland styling with an all-new Altima. Toyota Camry’s great resale and dependability make this comfortable 4-door sedan a contender. Solid handling, low ownership costs and high resale value all add up to a winning formula in the Honda Accord. Chevy Impala has plenty of room front and rear and stellar infotainment. Save up to 40% on a 3-year old model: quality and VALUE.

Save with insurance discounts: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

Is Medicare for All right for you?

Medicare is not socialized medicine. Socialized medicine is where the government owns the hospitals, owns the labs, owns the MRI and CT machines, and all the doctors and support staff are on the government payroll. That’s not what Medicare is. In our current political fight, some GOP are using old fears of Russian-style ‘socialism’ to discredit the discussion of finding a more effective system of medical car and payment in America. Medicare pays for the high-cost end-of-life expenses and high-cost chronic conditions. Yet, users pay only $135.50 a month from their SS benefits. For-profit plans cost over $400 a month if you can find one in your state. Medicare is national: You pay $185 per year in 2019 for your Part B deductible. After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services. Some buy an Supplement for these. Your hospital coverage (Part A) is usually free. If you have not paid for Part A during your working life and you buy Part A, you'll pay up to $437 each month. Part C pays for drugs and costs vary depending on your needs. Congress could change the law and negotiate the costs for all of us so our costs are in line with all the other countries in the world. Some pay 50% less than we do for US drugs. The reason we do not have Medicare for All now is simply money. The clerk at my for-profit health insurer decides which procedures and care I receive. The company CEO makes more bonus if the clerk excludes some treatments and procedures. My doctor and I have little to say in it. Lobbyists get $160 Million to tell Congress: “NO MedicareForAll”

Medicare for All is worth a try!

Did you know your mutual funds make money even when the fees are ZERO?

When you invest in a fund, the manager buys your share of the stocks in your fund. For the Vanguard 500 Index Warren Buffett recommends, it owns shares of the top 500 companies. Because most investors are earning 11% a year over time, the stocks in your fund are held a long time. Your fund then loans the stocks out to other institutions that need them temporarily for a rental fee. This fee is what allows most funds to charge 0.04% or less. If your fund has millions of shares, they can make a lot more than your fees. So fees are falling and some are charging ZERO. However, depending on your agreement, you may be giving up your information and perhaps good service. So you may find ‘free’ is not really true. Some firms could start charging you after they get your money. Some could start using your information or selling it to target you for sales of other expensive products. Best Robo-Advisor is low-cost and unbiased advisor.

NO FREE LUNCH: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

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Make

~~America~~

, “The Don”, Great Again

Senile Psychosis or Parkinson’s delusions? quetiapine and clozapine

Truth isn’t truth, his lawyer says

“The campaign -- for him -- was always a marketing opportunity.”

Two

Americas

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

Will voters who need ObamaCare vote for it?