Reduce taxes: IRA contributions made by July 15
Since the filing deadline was extended to July 15, so was
the 2019 IRA contribution deadline. We
have more time to buy stocks on sale: $6,000 plus $1,000 for those over age 50
means less taxable income; less tax. Since stocks and funds are down 20% or
more, we have a great way to add thousands of dollars to our LONG-TERM fund.
Remember, only this asset class can beat inflation over time. Inflation can
take up to HALF the purchasing power of our retirement dollars in 25 years. You
may even increase your Savers
Credit—a reduction in the actual tax owed. Another smart move: convert
depressed IRA funds to Roth IRA funds. There is no longer any income
limitations on Roth IRA conversions.
Also this year your income may be lower since you are not forced to take RMDs.
With smaller taxable incomes, you can convert more reduced IRA money and pay
tax on a lower amount of income. We were able to slip into the 12% bracket from
the 22% bracket this year and thus pay less for 2020 income. Also NJ does not
tax SS benefits so we even saved on state taxes. A Roth IRA provides tax-FREE
income later when taxes go up to pay for this $2 Trillion bailout.
Avoid future tax
increases: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300
Billionaires push unproven malaria drug that has killed
Job Creators Network is urging Trump to “CUT RED TAPE” and
make an anti-malarial drug called hydroxychloroquine available for treating
those sickened with the virus even though it has killed healthy people.
Scientists have not tested it on virus patients. Despite this Trump
endorsed the use of it and people have died. In Arizona, a couple who heard
the president tout the drug ingested chloroquine phosphate — a chemical they’d
used to treat their koi fish — mistakenly believing it would prevent COVID-19.
The man died and his wife was hospitalized, according to NBC
News. Several politicians have voiced the view that seniors
should be sacrificed in order to get people back to work and save
businesses. One
thought leader volunteers ‘grandmas’ to die. Now ventilators are too
expensive to make/buy Trump decides. In history, panic has caused mistakes that
killed people by providing bad ‘cures.’ Because society elites have good health
and access to superior medical care, they advocate their solutions for every
person without thinking through the ‘collateral
damage.’ If ‘back to work’ senior virus carriers handle your ‘Home Depot’ purchases,
you are exposed. Trump ignores Italian-style deaths by promoting April 12 as
deadline for back-to-work no matter the risk to actual people. Airlines
have filed bankruptcies and kept working before. CEOs always got paid their
bonuses. Now Trump
and his Treasurer can pick the businesses they like to get a bailout.
This is socialism for
the rich: https://www.amazon.com/Americas-Socialism-Rich-little-people-pay/dp/1535218584
Bad time to take money from your already depressed account
Under new Care Act, rules on 401(k) loans would also be
relaxed, and some retirees would avoid so-called required minimum distribution,
or RMD, rules that might have been onerous. One provision in the bill would let
investors
of any age take as much as $100,000 from retirement accounts this year
without paying an early withdrawal penalty. They also could avoid taxes on the
withdrawal if the money is put back in the account within three years. If it
can’t be returned, taxes could be paid over three years. People diagnosed with
the virus are eligible, along with anyone who “experiences adverse financial
consequences” as a result of the pandemic, including an inability to find work
or child care. Retirement plan sponsors are told to rely on employees’ word
that they’re eligible. Taking money
from your future is a hard decision. You not only sell shares at the worst
time in 20 years but it will take twice as long—maybe another 20 years—to
recoup that money. Besides you will lose the compound earnings during that loan
time. Better to trade down your car or borrow from your bank. Like the Great
Depression, these are the times that try our soils.
Don’t sell your future short: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793
How Trump and tax-credit class hit Corona
The stimulus bill
removes limits on the amount of losses that wealthy investors can use to offset
taxes, by writing down the gradual depreciation of assets like real estate.
Trump, Kushner and friends will have NO income taxes for years. Plus their accountants
can go back to previous years and receive tax refunds. We will be paying
Trump and friends for their losses. “There's a huge tax giveaway for people
like him and his family in the stimulus package," said the nonprofit legal
aid group Citizens for Responsibility and Ethics in Washington
Avoid paying their refunds: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382
Are target-date funds the safest place for my retirement
funds?
Unless you have millions of dollars or a Wall Street guru
with a perfect record, you are safer in TDF than with a person who makes a
living handling your money. An advisor, broker, agent, or money manager are
those we traditionally look to when the markets crash. Most don’t save us from
disaster. You may be a lucky person to have a sales person who sold your stocks
before they went down. Only one or two actually predicted and executed a ‘safe’
sell-all strategy. TDF have the explicit strategy of investing for the long
term. The good part is they don’t go down as far as some actively traded
securities. They also don’t go up like the active traders claim their choices
have. About 21% of retirement money is in TDF. 60%
of new money went into TDF. Unless you have a crystal ball, there is no
safer vehicle for your long term money. It is the simple and correct solution
for most people saving for retirement. As Vanguard founder John Bogle said, you can't control
the market, but you can
control your investment
fees. Paying just 2%
a year to your salesperson mean you are giving HALF of your long-term
accumulation away. And your salesperson is not always right!
Why did your ETF close and return money to you
72 ETFs with $1.4
billion in assets shut down and returned their money to investors in the
first quarter. Many ETFs are really leveraged market-timing active funds which
must act quickly to get out of the super-heated loans. Some use derivatives to
amplify returns or losses of the securities they track. Since leveraged
ETFs are specially created products designed for speculators,
individuals who buy or trade them without understanding how they work should be
extra cautious. Many leveraged ETFs are not structured like ordinary
ETFs. And unless
you know your ETF intimately you will get burned in volatile times. These ETF's
shares are destined to lose money over time, a reality that is exacerbated by
the fact that the portfolio rebalances daily. Due to compounding,
leveraged ETFs held over the long term can see strikingly different returns
than the fund's target. Because these funds reset each day, you can see
significant losses—even if the fund itself appears to be showing a gain. These
are a way to gamble without risking the dangers of directly employing margin
debt. You can take the long side (bet that it will increase) or the
short side (bet that it will decrease) as both
have their own respective ticker symbols.
Stick with the best: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X
This is why rebalancing is not necessary
Markets have corrections, recessions and bad times. Selling
and re-buying is not the best LONG-TERM strategy. New research by Campbell
Harvey, Duke U, found that “investors need to understand that rote re-balancing
is an active investment decision that increases risk. In an up market, you are
selling soaring stocks; “all of a sudden your portfolio has done worse than if
you had just let it run.” Re-balancing kills compounding. Almost every
broker/advisor tells you to sell when your stocks are soaring and buy something
else in order to maintain your 60/30/10 or 80/20 asset allocation. Transactions
are their life. But Warren Buffett says: We continue to make more money when
snoring than when active. Over time your portfolio of 50/50 stocks/bonds will
maintain the growth and income you need to provide a sound lifelong return. For
example: Vanguard
Wellesley Income Fund has provided 9.5% annual returns since 1970. Corrections
(rebalancing) were automatic and limited
losses. Since
1970, 7 down markets have still produced over 10% for the S&P500. The
market is now where
it was Jan 2019.
Re-balancing is bad: https://www.amazon.com/Dont-Re-balance-Your-Portfolio-Research/dp/1508802386
File your taxes for free
TurboTax and other for-profit tax prep firms are due to raise prices soon.
If you have your documents, use your favorite software now and file your tax
now for refund. The payment, if any, can be in July; the filing should not. Rumors
confirmed: filing delayed to July 15. Check your
state for deadline. The federal and state filing can cost you nothing at https://apps.irs.gov/app/freeFile/.
Another site has no cost or restrictions: https://www.creditkarma.com/tax. And
remember you can usually reduce income and thus tax by making a deductible
contribution to your IRA. File
now for refund: 90 day interest-free extension if you owe. https://www.irs.gov/pub/irs-drop/n-20-18.pdf
Filed already: refund status: https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
Save for a long life: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793
**********ACCOUNTABILITY**************
Like 1776, this period
is a test
of democracy—do we really want ‘low-IQ’
Mobster?
Mob Boss to MI: ‘Kiss my ass
first’
Alex
Rodriguez now Mobster’s advisor on C-19: Trump seeks praise
Mobster
wants his name on rescue checks so we remember Nov 3
Hope Hicks, consort, urged Trump to
act presidential so he
bans new health cover
Mob
Boss blocks travel in NY, NJ CT except for friends/family’s helicopters
Hungary
model tempts Mobster to follow emergency powers to jail media
Citing Mob Boss, red
states allow virus spread
How Govt wastes our money: Congress spends another 3.7 Trillion we don’t have!
Our
Reps give a Bailout check to the most profitable companies: we pay the tax
bill!
Rescue
checks/direct deposit goes out late April: tax returns or SS bank numbers
Test
centers only test those with symptoms: virus will spread by no-symptom
carriers
ICE
detention centers: are they 21st century death camps? 7,000
immigrant children
Increased
car emissions destroy air but pleases oil companies who pay election money
SCAMS/SPINS:
Trumpers
attack the most knowledgeable virus scientist we have: politics ‘trumps’
life
GOP
gives Kushner $ millions: waive mortgage repayments on Kushner properties
Trump
to send ventilators to Europe as some blue states beg for help: Red
states get 100%.
Trump
let the Fed ventilator contract expire: thousands
from stockpile don’t work
FL
GOP: unnecessary
to order stay at home: limited testing so ‘many areas have no positives’
Trumpers hate science so
threaten Fauci life: Scopes
trial 1925 about science
deniers. 100 years!
One
KY GOP House member holds up $2 trillion rescue bill: Thomas Massie says
too much debt
HR Block sued for
tricking ‘free-filers’ into paying for IRS ‘free-file’ services
Some SS
recipients who don’t file a tax return now must to receive a stimulus payment.
Medicare
out of pocket bills have not arrived yet: we are in uncharted territory for
big bills.
C-19
insurance scam: pay
premium get no coverage; fake policy cancels; fake vaccines
Scam:
Fake
letter, call, text that promises help when SS suspends our benefit. SS says
no.
12 C-19 scams
to avoid: test kits, solicitations, SS calls, bank calls, toilet
paper delivery
Purell caught
making unproven claims: FDA letter tells them to prove it.
60,000 died in
2017-18 flu season: 44 million caught & survived: Fauci:100-200K
C-19
Mark Lamkin KY caught
taking loan from client violates rules
GOP Kelly Loeffler GA
sold
$3.1 million in stock by February 14 to make virus profits.
Check your SPAM
inbox: masks,
ventilators, all
virus equipment you want at 50% off!
Money claims to know when the market hits bottom: Actually they have no clue.
Jobs
We should have
bought surveillance-software company’s stock: Big
Brother all over us.
Student
loan repayment by you & employer now pre-tax. No income tax on
$5,250/year
Trump
channeling Pelosi: infrastructure jobs now solves 2 problems: work, bridge,
road
Doctors
& nurses working long hours have salary/benefits cuts just like
everyone else!
Lose
job; lose health care: America
Who owns your account now?
$9,763
cost of health care if you have real insurance for C-19: $20,000 if you
have TrumpCare.
How
you may be helped by Cares Act: new law provisions
Hold
student loan payments at least till Oct: Employer can pay tax free.
Landlords
are evicting any tenant with symptoms/virus: homeless stigmatized.
Insurers asked to give waiver
on premium due: check state guide non-cancel,
etc
Houston
Asset Management to Allworth Financial, Hanson McClain Advisors
Nissan
recalling 250,000 2012-17 SUVs, trucks and vans: air bags
Miracle:
NYC
hotels open beds for hospital workers/non-C-19 patient: Four Seasons for
doctors
Patients
who recover from C-19 may be key to saving new victims: plasma is
anti-virus
New
5 minute test for C-19 approved FDA: make 50,000 machines a day eventually.
$100
Go2Vent ventilators ready to be made but owner wants $100 million for
plans.
Miracle: Gun
dealers are ‘essential businesses’ NRA tells Trump the election score
Retired
medical workers volunteer to help NYC cope with crisis: staff get sick too.
IAN
41 Watchung Plaza,
B242
973.746.2014
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