How much does retirement cost?
How do average working people afford to live in retirement?
Two-salaried clients— school teacher and office manager—making on average $60,000
during their whole careers, earned enough to have a $1.2 million retirement
fund--$40,000/year. How did they do it? Bought 2 used cars every 4-5 years.
They invested 5-8% of their checks in stock index funds inside tax-deferred
accounts at work and their own deductible IRAs. Bought house 40 years ago
$200,000; now worth $700,000. Camping/hiking vacations. Eat out once a month.
Did their own home cleaning, repair or maintenance. Bought food, clothes, toys,
etc on sale or house brand. Paid for 2 master’s degrees (no scholarship) and a
child’s private college degree. Covered 3 lay off periods; bankrupt once. Saved
$3-4,000 a year on securities and insurance. One took SS benes at 62; one at
70. Gross income now: $90,000—SS, pension, investments.
Supremes give
wealthy another way to avoid our taxes
Progressive tax
rates at federal and state levels are meant to reduce the gap between us and
the tax-shelter class that evades taxes. Taxes were meant to avoid another Robber Baron
period. Now the Supreme Court has decided the wealthy
were paying too much state tax. Now we will be forced to pay more to
make up for the shortfall created because states can’t tax income from wealthy
trusts. The rich can now move their trusts and avoid income tax for
beneficiaries’ trust. The Supreme Court has essentially opened the door to
trust planning that could ‘avoid state taxation altogether.’ Plus they can now avoid
an audit when they move to a low-tax state. We, who are left, pay more
state taxes.
Use your double tax
shelter: https://www.amazon.com/Pay-No-Taxes-in-Retirement-legally/dp/1507527977
DIY Financial Independence
Put your money to
work so you don’t have to.
Use your
IRS-approved tax shelter—Pay 0% on asset gains.
Accumulate $250,000,
$500,000 even $1,000,000
tax-FREE. You achieve Financial
Independence by having enough
money to do what you want. When you don't have to rely on work to survive, you
are financially independent. Playing it safe won't achieve it. You don't have to be super wealthy to become free of
money worries. Financially independent people have one thing in common: they put
their money to work so they don't have to. If you don't put your money to work,
you will never be free. 'Compound interest' is the name of the process
by which money makes money. You don't need to do a thing besides sending $250 to work every month. You earn money every time you buy things. You
own part of the businesses.
Compounding is what Warren Buffett counts on for success.
“My wealth has come
from a combination of living in America
compound interest.”
How much can your
money earn for you? It depends on how long it works and where you put it to
work. The best strategy is to use your Wealth Reserve to shield your money while it works in
places you shop. You can use a special IRS-approved Tax-FREE account to avoid
all tax on investment dividends, earnings and interest. You can also avoid the
fees and commissions on this account. Your $250 a month investment may grow to
$1,000,000 or more and it is all tax FREE. That $3,000 a year for 33 years
($99,000) compounds to $1 million if you put it to work: capitalism.
Trump’s medical
price stability promise is dead
The health care
companies have killed any chance for giving US a break. It is impossible to
shop and compare prices even for a simple standard item. There are hidden costs
in every procedure even if you knew the contract price between you doctor and
the hospital. Those who argue that when we have ‘transparency’ we will shop and
save are overlooking the conflict of interest of the sellers. I can’t tell my
doctor to use the hospital or center where I found the lowest cost. I don’t
trust the doctors who work at that center and vice versa. The doctor and the
center are NOT on my side in this deal. Doctors make special deals with centers
in their best interest, NOT
mine. Like sales people, doctors make more by doing more volume with this
center vs that center. Like my broker, they get paid more by selling one firm’s
product over another. Or take a simple blood test. The median retail price in one
place is $20 while the same test costs $443 in another. And what about life-saving
insulin, up 1,700%? I can’t shop in India China
All these people
make more than I do: https://www.amazon.com/Americas-Socialism-for-Rich-not-little-people/dp/1535218584
What can an annuity
do for your retirement?
Congress
wants to let the financial industry make a killing on annuity sales to retirees.
Is this good for US as we retire at 10,000
per day? An annuity is a steady income for your lifetime. Insurers buy
bonds with your money and dole it out to you monthly over time. You will
receive less in buying power over time. Inflation takes HALF the value in 20
years. Insurers earn 1-3% depending on the type you buy. You receive a good
deal if you live to be over 90. If you die before age 85, you lose. However, if
you don’t feel comfortable using a 0.23% balanced (stock/bond) fund and having the
fund firm send you a monthly check, this may be your best deal. A balanced fund
earning over 8% a year can beat inflation over time. You keep your buying
power and have a legacy too.
What are the options
to save for college?
A tax-advantaged account called ‘529’
is available through any financial firm. What are the alternatives to a 2% savings account?
Investment options range from all stock to all bonds. The middle road,
overweighted to bonds, seems to work best for the 15-20 year average time to
accumulate. Some plans offer age-based options. Some states provide a tax
deduction. Some plans are sold direct without commissions and some cost you
more. Many states allow anyone to use their plan. Some states offer low-cost
management. Usually you can invest whatever amount you like but $100 a month
for 15 years could provide over $40,000 for school for young
and old—any educational purpose.
Give your child a leg up with money
Make sure you teach your kids how to create
wealth the easy way. At my first job, I had no clue which investment option to use for my 401k contribution and company
match. The HR person told me to put it into the 'safe' stable value
fund. That was the worst choice at my age I learned later when I got my
securities licenses. If I had followed their advice I would have ended up with
$150,000 instead of a Wealth Reserve of $877,233 about 33 years later. We have
used this 'Wealth Reserve' as I call it to have funds to buy low-cost insurance,
two homes and 5 cars with higher down payments or cash. Now we receive $2,500 a
monthly in retirement supplement.
I found the advice of the smartest
money manager of our time--Warren Buffett--is the best. It turns out his
simple investing plan is best. Buffett: Panic
is buy signal.
**********
How Govt wastes our money: Congress spends another Trillion we don’t have!
Half the opioid pills were purchased by just 15% of the
drugstores: 15
killing fields!
Trump
confirms his ‘socialism for rich’: paying farmers more than if they produce
soy!
Background checks are useless: OH
shooter had 10,000 rounds to kill ½ Dayton
"He Has Gone
Mad": Danish MPs On Trump's
Reported Plan To Buy Greenland
SCAMS/SPINS:
Trump’s
own construction crew are guys without papers: ICE doesn’t dare touch them.
Trump
comments on FoxNews’ fake news comes true because USSR TV paid for it!
Trump
says Clinton killed Trump’s buddy Epstein in prison of all places:
Demented!
Trump: I
saved steel industry with tariffs: “Steel was dead. Your
business was dead,” now
business is thriving.”
Trump
plans to eliminate endangered animals: oil gas coal producers have won!
IRS lets advisors pull
fees from the cash value of your annuity without you paying taxes.
Crypto currency
scams on all social media: get-rich-quick
is offer—get poor quick results
“We
are worried,” Bank of America Merrill Lynch chief economist said. Panic
buy signal
Steve Baptist caught
taking commissions on trades in dead client accounts. New B-D.
Richard Duncan MA caught
making Turkish scam on his clients: 100% return
Dawson James FL caught
soliciting DoNotCall list: $20,000 fine but not ‘guilty’ plea.
Antonio Bravata started
his second scam before he finished sentence for his first fraud Andy Gamber Voyager Financial caught
fraud on disabled veterans: fine no firing squad
CA
bans pesticide Trump defends: developmental neurological damage
in humans.
Court: Trump
must provide food, water, beds, toothbrush, soap just like Stalag
13.
Police
Chiefs demand assault weapon ban: Congress & Trump in clutches of NRA!
Jobs
Civilian Spy: MicroSoft
has employees and vendors listening in to your Skype, Cortana
Retire
early? You are likely to experience bouts of anxiety and self-doubt.
Physicists found new state of matter:
increase storage quantum computer. Stream movie?
Physicists: temperature
is property of quantum entanglements of ultracold
atoms: Save E.
Who owns your account now?
Your
old debt (past limit) can haunt you if you or collector makes a payment
later.
SEC video about your
advisor or broker: how to pick and how
they get paid
Miracle:
Takes a miracle: Despite the news, even Pope’s letter, priests
still abusing children. Jail?
Take a Miracle? Police
lead black man on rope by horseback through town like past.
Save
this spaceship: Troops
with heatstroke double from 2008: EPA kills Bristol Bay
life.
Angry
neighbors turned nice: “Kindness goes such a long way. Gratitude goes such a long way.”
IAN
41 Watchung Plaza,
B242
973.746.2014
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