Your Unbiased Advisor: Why we don’t lose money when the market crashes

Why we don’t lose money when the market crashes

We bought our stock or mutual fund shares at a certain price. When prices go down, the market is said to have fallen. BUT, and this is the point, we did not lose any of the shares we purchased (unless we sold in a panic). In most cases for our broad-market fund shares, the value of our account will go up when prices go up again. If we didn’t sell in 2007-8 when the market index fell from $150 to $69, our same shares are now worth $330. Our fund shares represent our part ownership in real producing companies. IT IS THE SHARES that have value and if we buy and hold as Buffett recommends, we won’t lose money when the market crashes. Unless we have insider information, we don’t know when an individual stock we bought for $20 will go to $1 or to $200. Speculating on a certain stock price has been shown to be a Loser’s Game. Remember when sellers give us an ‘inside tip’ they only make money when we trade: buying and selling. Even if your broker gives you bad advice, it takes years to recoup your loses (IF you can prove it). Make a killing when markets collapse: buy when share prices, NOT shares, fall—when they are ‘on sale’ as Buffett advises. Just keep buying shares in proven winners.

Vanguard’s proven Top Ten: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

What can we do now that Trump says he will cut Medicare and Social Security?

Recently, Trump told the world he will cut Medicare & Social Security by “end of the year.” The GOP may actually do it since they passed his big 2017 tax cut for the rich. His tax cut for his tax-credit class only increased the deficit to $1Trillion. Now he needs to cut our benefits to pay for making the rich richer. What can we do now to supplement the cuts in our benefits in the future? Some have already started a tax-FREE account that they can use in retirement. Others have been converting some of their IRA money to this tax-FREE account. Future accumulations will not be taxed so these folks can make up for the cuts in benefits using the growth with no taxes due. They recognized early that the GOP would take our earned Social Security and Medicare benefits to pay off the deficit. The GOP is certainly NOT going to raise taxes on those who pay for their elections.

Build your own benefits fund: https://www.amazon.com/Forget-Social-Security-Medicare-Lifestyle/dp/1466394285

Lower your tax: We can continue to contribute to deductible IRAs

Previously, we were not allowed to continue making contributions to Traditional IRAs once we reached age 70½. But the SECURE Act removes this age limit, effective this year. This could be beneficial for the growing number of people who are working past age 70 since they can now continue making IRA contributions indefinitely, thus enhancing their long-term retirement financial security. They can also make non-deductible contributions to their Roth IRA which is never taxes later. On the other hand, distributions from traditional IRAs must begin when we reach 72 up from age 70 1/2. However, the new rule does not apply to those already older than 70 ½ or turned 70 ½ in 2019 (born on or before June 30, 1949). Those individuals must continue or begin taking RMDs under the old rule. The SECURE Act effectively eliminated stretch IRAs as an estate planning tool. Effective for deaths occurring after December 31, 2019, funds from inherited IRAs must now be fully withdrawn by beneficiaries within 10 years of the account owner’s death. Exceptions for spouse and disabled. See a professional.

https://www.amazon.com/Pay-No-Taxes-Retirement-legally/dp/1507527977

Why are annuities popular despite falling interest rates?

Sales of all types of annuities rose nearly 15% in 2018 over 2017, according to the Insurance Information Institute, with fixed-annuity sales far surpassing variable annuities. It is claimed that annuities protect us against longevity risk by promising a stream of income we can’t outlive. Now more retirees will be enticed by the annuity offer because the new SECURE Act frees employers from the liability of annuity failure. Unfortunately, many retirees will be convinced that their employer’s annuity choice for their pension income is the best way to provide it. The employer is protected from liability when the annuity-income buying-power is cut in half later in life: $500 a month now will be worth $250 in 20 years. The employer will not have to worry about the possible failure of its insurance company. The employer will not be concerned about an escalating inflation rate and rising living costs. Yes, retirees will have a guaranteed income but as it’s value decreases, retirees will have no alternatives to maintain their buying power. Retirees will be stuck with today’s low interest-rate income payouts.

Consider options: https://www.amazon.com/Not-Buy-That-Annuity-Guaranteed-Low/dp/1466494573

How to negotiate when you have a dispute

Famous FBI hostage negotiator Chris Voss says don’t compromise: there isn’t a real big difference between compromising and caving. Let opponent think your solution is their own so they own it. Accommodator’s demeanor is your competitive edge. You are listening to and getting along with everyone. Listen first: opponent will share things you would never know. Commiserate with their real fears: “sounds like you have been burned in the past.” Instead of getting to ‘yes’ getting to ‘that’s right’ creates agreement. Rapport allows opponent to feel comfortable sharing. Sharing frees them from feeling judged and attacked. Say: “It seems like I haven’t earned your trust yet.” Speak quietly. Empathize. Paraphrase what they just blamed you for. Instead of ‘no’, “How can I do that.”

Negotiate with liars: https://www.amazon.com/Confess-Things-Your-Advisors-Will/dp/1463712154

Complete your tax filing for FREE

If you meet certain criteria and have your documents already, federal and state can cost you nothing at https://apps.irs.gov/app/freeFile/. Another site has no income/forms restrictions: https://www.creditkarma.com/tax. The software helps you avoid common mistakes before you file. Even if you make a tiny mistake, the IRS usually catches it without penalty. I have used most of these programs for years even though my income is above the limits. Most charge nothing for the federal and state. Some charge only $12.95 for the state. In 2019, NJ has kept the ObamaCare mandate tax if you don’t have health care cover so that state return may get complicated. Once you file your first year, your previous years’ data is there and pre-fills your forms: Saves a lot of time and money. Try it before you spend $200-300 at a for-profit preparer. No refund due? File to keep your ID from scammers. Your W-2 should be sent to you by Jan 31 according to IRS.

Plan now for a Tax FREE retirement: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

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

Like 1776, this period is a test of democracy—do we really want ‘low-IQ’ Mobster?

Claim: Impeachment not possible because anything Trump does is in the national interest

Trump tells the world he will cut Medicare & Social Security by “end of the year.”

Trump promises another tax cut before the election despite rising deficits.

Trump to suppress book proving his extortion ‘high crimes’

How Govt wastes our money: Congress spends another 1.7 Trillion we don’t have!

Trump wants to have us taxpayers pay for religious education of some kids: Constitution?

Trump allows states to undermine health coverage for poor with caps/block grants.

On this 75^th anniversary, would our soldiers defy the commander in chief if he gave an order to arrest without warrants all the people from ‘shithole’ countries?

Former Treasury Sec Summers plans to close rich loopholes/bump IRS not ‘wealth tax’.

SCAMS/SPINS:

Treasury admits reasons for tariffs were ‘trumped’ up for propaganda purposes

Jeff Carpoff CA caught wire fraud, money laundering $1 billion mobile solar generator

Alex Gierbolini caught making $2 million unsuitable sales over time to a wealthy client

Brian Simms IN caught making $1 million unsuitable sales

Edward Matthes WI caught stealing $2.4 million promised guaranteed 4% return

Jerry Szilagyi Catalyst Capital mislead investors lost $ 100 million risky deals

Kerry Wills caught ‘borrowing’ from client and taking $19,500 gift.

Citizens Bank RI caught failing to properly manage\respond to credit card disputes.

Some Americans have already voted for prez: our long process from 1800s out of date?

IPhone of Amazon CEO hacked by Saudis: Nothing safe from hackers: DO NOT OPEN