Do income annuities really provide a “Worry-Free
Retirement?”
Here is the claim: an
income annuity provides insurance against outliving assets and not having
sufficient spending power late in retirement. Income annuities are
actuarial bonds. They provide longevity protection that is unavailable with
traditional bonds. Retirees receive the bond yield curve plus mortality
credits. Annuities increase risk capacity because the retiree's lifestyle is
less vulnerable to a market downturn. Also, distributions from the stock
portfolio can be lessened, reducing sequence risk and helping to preserve the
investment portfolio. For those with a family history of long life, you will be
assured of having some income for the rest of your life. You benefit from other
annuitants’ short lives. However, this strategy is hardly ‘worry-free’ because
1. how much annuity to buy, 2. when to buy, 3. what about inflation: it reduces
HALF the buying power of the benefit in 20 years, 4. how much for a later
legacy, 5. there is no upside potential and no large asset in case of emergency
needs, 6. annuities are non-refundable, 7. you forgo the total return of a
stock portfolio—no dividends and no capital appreciation. Yes, annuities last
for your lifetime but spending power and assets decline over time.
Even part-time self-employment can improve your situation
IRS just gave us the new rates in 2020. The
Self-employed
use many tax benefits not available to most mortals. For example, for tax
year 1995, Trump claimed a $916
million LOSS that could have allowed him to legally avoid paying federal
income taxes for up to 18 years. He and his accountants created the $1 billion
paper loss by claiming business losses. Your business loss can offset your
other family incomes like his did. Your
business can even fund your retirement nest egg and still show a ‘loss’ on
paper. You can deduct the cost of improvements (new tools, truck), meals
for employees (family), your (QBI) rental real estate, routine maintenance,
etc like corporations do. Most
corporations pay no federal income tax. You can even claim part of your home and
its property taxes. Also you can use these elections post-year end to achieve a
desired tax result. You can pay your employees (family) as contractors and
avoid some taxes and forms too. Some
IRS changes hurt; some help.
Plan for tax increases: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300/
Our Attorney General told to find dirt for 2020 election
Trump
pushed the Australian prime minister during a recent telephone call to help
Attorney General William P. Barr gather information for a Justice Department
inquiry that Mr. Trump hopes will discredit the Mueller report. If Trump can Bribe
Ukraine for investigation of Biden then we won’t be surprised if he
encourages other countries to buy adverts in Facebook and other media to
present Fake News for the 2020 election. Trump
has Barr working Europe to dig dirt. Trump has McConnell
stocking the courts with his disciples so he will win any lawsuit against
him in the future. Trump has ‘moved’ to FL to assure safety in this GOP state.
Even the Supremes
may be asked to keep his tax returns from a legal investigation. This
sounds like a right turn in American ‘democracy.’ There is hope in a new FoxNews
poll that has voters choosing Hillary Clinton over Trump and she isn’t even
running.
Trump tax cut has cost $ Trillions with no economic
expansion
Last
quarter economic growth of 1.9% is a far cry from the “4 percent, 5
percent and even 6 percent” growth rates that Trump once promised to deliver.
Every time the GOP controls Washington
Use your own tax shelter: https://www.amazon.com/Tax-Shelter-Young-Americans/dp/1500426520
Is no-cost trading
right for you?
Many brokerage firms
are trying to get us to trade securities at no cost. But is this strategy
working for you? A simple
low-cost market index account is up over 24% so far. Even with no trading
costs, can you really do better? How many market timers and special situations
have beaten the market? Does your statement show the benchmark for comparison?
Most don’t show your YTD total return number side-by-side with index. So how do
you know how well your 1-2%
fee strategy is doing over time? Most of us don’t take the advice of one of
greatest investors, Warren Buffett: "The stock market is a device for
transferring money from
the IMPATIENT to the PATIENT."
Wait for the money
to come to you: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957
Is your broker
predicting bad returns in the future?
Morgan
Stanley sees the market returns ‘tumbling’ in the future. Goldman
sees no recession. Whose crystal ball do you believe? The analysts see the U.K. UK UK
Go with the best
low-cost funds: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X
What does one of the greatest investors recommend?
Buffett bet $1 million that his recommended investment—just
one simple fund—would beat
a Wall Street guru with 5 different strategies. Active money management
does not help you more than it helps its manager. Buffett
says: “A very low-cost index is going to beat a majority of the amateur-managed
money or professionally-managed money.” So why don’t more people take his
advice: everyone thinks they are smarter than the market and can find the
needle in the haystack. Over
and over research shows you can’t. Most
investors earn just 3.79% not the market index
return of 11% over time.
Warren Buffett’s solution: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592
Looking for a trustworthy broker?
All the advice articles, including my own, suggest you do a
search of complaints at the self-regulation organization called FINRA. However,
its BrokerCheck does not
have all the bad news and troubled past of many brokers. Those who have
problems move to another firm and state and have
their records expunged. Take a recent example: First Standard Financial was a registered investment advisor recently caught
for unauthorized, unsuitable, excessive trading. It was notorious
for hiring bad brokers who joined with questionable past activity and many
customer complaints. The owner of First Standard is Carmine Anthony Berardi.
His securities record has no listings for his 11 years in the business: https://brokercheck.finra.org/individual/summary/4879362#timelineSection.
First Standard worked out of offices in New Jersey Garden
City NY New
Jersey
**********ACCOUNTABILITY**************
Like 1776, this period
is a test
of democracy—do we really want a Tzar
as prez?
How Govt wastes our money: Congress spends another 1.7 Trillion we don’t have!
Trump’s
WALL is being cut open: smugglers know no boundaries—saws made in US.
Trump
keeps collecting EVERY phone/text message we make: wouldn’t stop 2nd
9/11.
Trump
to send troops into Mexico to ‘wage war’: History
repeats US endless wars
SCAMS/SPINS:
Justin Amaral,
MorganStanley caught
churning (“rebalancing”) clients: defrocked
First Standard
Financial caught
unauthorized, unsuitable, excessive trading: bad brokers
BEWARE: ETF
‘free trading’ means you pay another way: “Wall Street not UNICEF”
Linan Abrego Merrill
caught
misappropriated client funds: defrocked.
Bolton Securities,
MA caught
overcharging fees: self-dealing 12b-1 fees
Early retirement can
accelerate the usual rate of cognitive decline: Less
interaction too
Living in especially
noisy
areas are at a 30% higher risk of stroke with increased severity
Fake
Social Security and IRS agent scammers lead the theft industry: Ask to call
back!
Financial
advisors may use ‘testimonials’ like Amazon allows fake
reviews: who to trust?
GPB Capital Holding caught
$1.8 billion Ponzi, frauds, fake co. 8%, PP etc: FBI SEC
Merrill Lynch and
Raymond James caught
overcharging 529 college plan fees: no jail
Schwab: I always “hated
commissions” but he can always go back when he needs money.
Trump undermines
“good order and discipline”; military morale: pardon
for war crimes
Trump
counting on GOP’s Supremes to keep his tax secrets from the law
Jobs
Trump
making New York City Great Again: His staff and WH staff to save
FL for GOP
Trump
at the NYC UFC fights gets “Lock him up” and booos from his ‘base.’
Trump had told the Bevin rally crowd on Monday. "You can't
let that happen to me!"
Trump
is beaten by any Dem in national
polls: KY VA suburbanites woke up for Dems
Trump’s lawyer Giuliani
lawyered up with 3 as his mob indicted: impeach details.
Trump’s ‘Deep
Throat’ tells story of madman in WH: How
to thwart mob boss.
Who owns your account now?
JPMorganChase
tests new health plan on employees in 2 states: see cost before service!
Access
to your 401k 403b got easier in hardship cases: IRS left it up to employer
401(k) contribution limit
increases to $19,500 for 2020; catch-up limit rises to $6,500
FL
Blue ObamaCare customers access to Lyft rides as part of the benefits
package!
Health
care scammers have upper hand with hospitals, etc: fail to fend off cyber attacks.
CVS
delivers first meds by drone to front yard in Cary NC. UPS to
avoid airline paths.
Rating
quality of health plans on ACA ObamaCare’s marketplaces not complete.
Mutual
fund ratings to include fees so harder for managers to get Morning’s Gold
Silver
Miracle:
Rubio
thinks Catholicism can save capitalism: “social doctrine does not get lot
of attention.”
Kansas
City rejects Martin Luther King Jr street sign in black areas.
IAN
41 Watchung Plaza,
B242
973.746.2014
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