Friday, October 4, 2019

Social media frauds


How we become victims of scams
The most successful types of fraud were via social media: 91% of study participants were engaged and 53% lost money. Similarly, 81% of consumers who were exposed to a fraud via a website said they engaged and 50% lost money. Phone and email scams had fewer successes. We are more likely to be victimized if we do not have anyone to discuss the offer with. Victims are more likely to be widowed or divorced. Generally, those who engaged, and those who lost money, reported significantly higher feelings of loneliness. Social isolation appears to play a significant role in fraud victimization. Those under financial strain, younger or have low levels of financial literacy are likely victims. 51% of people who reported a third-party intervention were able to avoid losing money. Cashiers, bank tellers, employees of wire transfer services and other financial services companies where consumers were about to send money to a scammer, served as an important, effective last line of defense. Nearly half of those surveyed said the news media was their primary source of information about scams. Prior knowledge of fraud helps decrease the chances of victimization, the survey found. One-third of consumers who were targeted by a scammer, but did not engage, said they already knew about the specific type of scam. In addition, consumers who understood the tactics and behaviors of scammers did not engage with the fraudsters. Approximately one in ten U.S. adults are victims of fraud each year and self-reported fraud loss complaints increased by about 34% from 2017 to 2018. In fact, the FTC received more than 372,000 fraud complaints with more than $1.5 billion in direct losses in 2018, and another 1.1 million fraud complaints with no reported losses, the agency reported earlier this year.

Best evidence you are being scammed?
A cold call, unsolicited letter or email! Think of it. You have been ‘chosen’ out of billions of people to receive an offer that sounds too good to be true. If the offer requires you to send money to get money or if it is heavily charged with emotion, you can’t possibly make a rational decision by yourself. You need help—any friend or advisor can help. The money strategy is complicated but scammer sounds like they know what they are talking about. Even Harvard endowment fund is fooled by bad direct investments. Scammer has your detailed personal info so they must be authentic agent of govt agency. You find a charge on your credit card you don’t recognize. Credit card charge is small $1 and you ignore it. Check out how much info you can find on yourself on the internet—just type your full name. You will be shocked to see a lot more than you want floating out there. Most of it can be used to rob you. You should go after every firm that offers to sell your data. It is said that scammers can buy your whole profile for less than $100.


The new rules for selling annuities
New York is in the midst of implementing a "best interest" standard for agents licensed to sell annuities and life insurance products—the first state in the country to do so. There are no federal standards for annuities and life insurance sales, raising the bar for annuities sales falls to the states. The new regulation states that “only the interests of the consumer shall be considered in making the recommendation.” Annuities and life insurance were targeted in the state because the typical customers interested in those products are often “vulnerable buyers.” Annuities offer huge commissions compared with other products. Many insurers have withdrawn from NY since Trump cancelled the more consumer-friendly standard of The Fiduciary Rule. Most states do not require the complete disclosure of conflicts of interest and compensation to customers so many older buyers may continue to be mislead. For instance, some sellers offer only complicated deferred annuities with the highest commission. They do not disclose their relationship to the insurer. Contracts are written only for lawyers so sellers explain only the positive.


This is how the wealthy avoid taxes we must pay
This advisor is explaining to rich celebs and athletes how to avoid taxes and lawsuits just like he does for wealthy families. Setting up a defined benefit plan: Entertainers with loan out corporations, for example, can put away assets while taking significant tax deductions, such as $1 million or more annually by using particular defined benefit plans. Because of the business endeavors of many successful celebrities, they can use defined benefit plans to lower their income taxes while growing money tax-free. Superior risk management plus significant tax savings: Various wealth planning structures and products with major income tax deductions and the ability to address various business risks can be used with celebrities’ business interests. Some of these wealth management solutions can also be used directly by entertainers, such as when they go on tour. Eliminating taxes on investment portfolios: For celebrities with meaningful investment portfolios, it is possible to use a structure that eliminates income and capital gains taxes. This wealth management solution can be used with traditional investments such as equities and fixed incomes or with alternative investments such as hedge funds and private equity funds. Wealth planning cross-border arbitrage strategies: With many successful celebrities generating money throughout the world, it is often possible to leverage different tax jurisdictions to minimize taxes. This is not at all about secrecy. It is simply about understanding the various tax treaties between jurisdictions and benefiting from them. Asset protection planning: Relatively few hyper-successful celebrities have structured their wealth in ways that insulate it well. Very successful athletes and entertainers can protect their wealth from unfounded or frivolous lawsuits with strategies that can address their control needs and wants.

Is a private placement right for you?
This is an investment that most of us can’t buy. There is no gov check up, due diligence by analysts, or registration with the SEC. Usually you must be an ‘accredited investor’ under Reg D. However, some advisors have been banned/fined for offering PP to clients. Recently a Boca firm was censored/fined $225,000 for offering a suspect PP to clients. The firm offering PP is raising capital without the expense and delay of an IPO or public offering on the exchanges. Usually there are few buyers. Because of the additional risk of not obtaining a credit rating, a private placement buyer may not buy a bond unless the bond is secured by specific collateral. A private placement stock investor may demand a higher percentage of ownership in the business or a fixed dividend payment per share of stock. An example is Lightspeed, a cloud-based point-of-sale software solution for independent retailers and restaurateurs. Investors become part owners. You can earn 11% over time without the risks of a PP.

How do you know how much savings to use in retirement?
Fear of the future financial needs keeps us from retirement spending. A 2009 study estimated that by the time middle-income retirees are in their 80s, they still had not touched about three-fourths of their savings, and 2016 research found that retirees with substantial assets are the most reluctant spenders. Vanguard recently reported that retirees with very modest savings turn around and reinvest a third of the money they’re required to withdraw under IRS rules after age 70½. Best we can do is make a plan to spend and save a certain percentage to keep our future income growing.

Does your advisor have a ‘conflict of interest’?
By definition, every advisor, broker, agent and seller has a conflict of interest. In financial services, every product and recommendation is dependent upon what the firm has approved for sale. The firm, not the saleperson, knows the terms of the contracts for securities, funds and annuities. For a given sale, sellers receive higher pay for some transactions. You cannot tell which seller or product has higher pay unless you ask. Some sales bring more to the firm as with kickbacks or soft money and you are not likely to get the answer from your individual advisor/broker/agent. Some sales have higher fees and commissions and/or higher ‘haircuts’ than others. Some sales have higher trailing fees (12b-1, etc) than others. Some securities sales cost you more than others: called Class A, B, C, etc. Frequently, sellers mislead us into buying the more expensive class. Many of us just don’t know about these tricks so we can’t ask sellers about them. Even if you do your research into certain products, you can be mislead by the seller who is selling a product not approved for sale. Salespeople must be authorized per product per state. The CFP credentialed seller is the most likely person to do only ‘what is best for you.’

Does $0 cost trading help you become wealthy?
Schwab led the way to ZERO cost trading for many firms: Free trades. But does FREE trading help you become wealthy? According to many studies, the answer is NO. There are Wall Street myths about traders getting rich but you would need to have insider information and be trading large dollar amounts to become rich. Day-trading schools abound but only the owners are getting rich. About 95% of the people who attempt day trading end up with a net loss. A primary reason traders lose money is the absence of a solid trading strategy. It is lack of discipline not commissions that dooms most traders. In fact most managed equity account owners are net losers over time due to buying high (stock proved winner) and selling low (sell before you lose it all). DALBAR tracks managed accounts over time: returns 3.79% but inflation 2.7%. Warren Buffett, successful investor, says: “if you invested in a very low cost index fund, you'll do better than 90% of people who start investing at the same time.”


**********ACCOUNTABILITY**************

This period is a test of democracy—do we really want it or not?

Trump mob spending $3 million a week to fight impeachment: Can dictatorship be purchased?


Trump: Dems process is “not an impeachment, it is a COUP


Fired employee Bolton says of N. Korea nuclear deal: “no basis to trust any promise
Profiteers earned $ millions from arrest/removal of immigrants: dictators do this too.



SCAMS/SPINS:
Trump upstaged by Giuliani, his enforcer: “I will be the hero!” 
Rude Giuliani, mob enforcer, cancels paid trip to Putin rally
Trump’s "Do Nothing Democrat Savages" will make the case to impeach him.

Trump now asking China to give him dirt on Biden: mob boss calling in all favors
Trump’s dirt-digging on Biden: how big a hole has he dug with enforcers?
Mr President, why would Sec State Pompeo give House Chair Schiff his jockstrap????

Trump uses fake Census to raise cash: MT state warns: “imitation Census survey.” 
TrumpCare health insurance $59/month is a con just like the owner: benefits limited

Newbridge caught selling private placements w/o due diligence; no supervision.

Chicago’s Bank Montreal caught charging higher fees for own funds; failed to tell.
79 brokerage firms caught overcharging clients; failed to tell lower cost version.
Your ETFs may spark more taxes not expected even if you didn’t sell.
Katharine Snyder, Performance Arbitrage caught deceiving disabled veterans high credit
James Booth, CT, caught running Ponzi $5 million promised safe high returns
Long-term care insurance: rising premiums It’s a bait and switch,” Bach said. “But it’s a legal one. That’s the problem.”


DEA allowed drug makers to increase production of opioids even as overdose deaths rose
More Trump tariffs: now on European goods: we pay the tariffs, not EU.

Trump planned to shoot immigrants crossing border: bullets cheaper than The Wall!
No count on ‘bump stock’ ban: few turned in or destroyed—sales soared on Trump tweet


Jobs
Your job as banker to friends/family is likely to end good relations
How to get into college: you DO NOT have $100,000 to buy admission.
Seniors keep traditional jobs: leather, funerals, repairs, religion, gifts, farms,


Who owns your account now?
Yahoo account breach settlement: claim your cash
ObamaCare TN policies have refunds: TN requires premium not spent must be returned
Estate planning account: 100 questions for your advisor/planner; for whole family too.

Easier to take out 401k money but many will need the compounded earnings later!
Privilege Underwriters: Pure Group to Tokio Marine

Miracle:

IAN
41 Watchung Plaza, B242
MontclairNJ   07042
973.746.2014
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