Friday, June 26, 2020

Does ‘free’ trading platform really help you?


Holding a stock and bond index: pros & cons
In times of unknowns and unknowables, trust the common basket of securities to see you through. Hey, you never know what will happen so your low-cost index funds will provide the ONLY sure thing: low costs beat high costs in every survey and period. Remember, with a broad index fund like the Vanguard Total Stock and Total Bond, you own a bit of everything—Apple, Amazon, new drugs, new tech, toilet paper, etc. All your costs and expenses can rob you of 63% of your total accumulations. In times of trouble, it is best to stay with the group. Yes, the leader or scout may be the hero but often they just fall by the side. Unless you have insider information like those in Congress, you should follow Warren Buffett’s advice.

How 5 one-liners offered by financial advisors work
There are tricks of the trade by financial sales people who need to keep selling without you knowing you are being sold. There are no actual get-rich-quick advisors out there. Sales people are natural confidence people because without your confidence in them, they would go hungry. There is an art to getting you involved so they can build confidence. The goal is to create a congregation of followers much like a mega-church. Think of Madoff’s Ponzi followers. They sought his financial ‘genius’ con thru his followers. To get you on board, sellers use soft sell: “if things change, call me.” Low teaser rate: “3% interest” gets attention. The “unbiased problem-solver.” The stock market “problem fixer.” The “self-helper” similar situation. No sales person can survive by waiting in the shop for buyers to buy. Sellers must evangelize to build a congregation so they can receive your ‘gifts’ quarter after quarter.

Does ‘free’ trading platform really help you?
For those seeking high rewards from fast trading of securities—gambling—broker-dealers have opened the gates to ‘free’ trades. Because people, usually young men, believe they are “masters of the universe,” B-Ds now have blood on their hands. Alexander Kearns, 20, killed himself after his Robinhood account showed a negative balance of more than $700,000. He used ‘borrowed’ money on options trading. Robinhood reacted by claiming they will now change how money is ‘displayed.’ They will NOT be guiding young users. They want to “innovate, lead, and go beyond the status quo.” Meaning: “where everything is seen as one big casino.” Action, whether vid games or online trading or online casino betting, is now entrepreneur heaven. There is no reason to learn a trade or play amateur sports, when the action is inside your wallet. There can be electronic cautions built into every ‘blood’ sport before your family learns the hard way.

Taxes in retirement: a necessary evil?
The virus has made some reconsider retirement now or later. Some will not be back to work since work needs fewer people—at least for a while. Others know now that they need to work a few more years since the virus has disrupted their plans. Perhaps the virus struck hard in your family and a big change is necessary. Most people are not better off as a result of the Trump tax changes. And now with the $3-4 Trillion spending increase, we all have to consider that taxes must go up. Wealthy folks have already found ways to pay less and have found ways to move their income overseas. Most working people have not seen an increase in inflation-adjusted wages for decades. There is greater concern for taxes now than before the virus recession. Luckily we don’t need offshore tax shelters or high-cost accountants to shield our future income from taxes.

Why costs matter
When your favorite securities are yielding record lows, costs—trading and annual fees—can kill your investment portfolio. Thus Vanguard S&P 500 ETF (VOO) pulled in more than $16 billion in the first six months to push its asset base above $140 billion. Some of the new money likely stemmed from outflows from SPDR S&P 500 ETF (SPY). SPY had $21 billion of redemptions, as investors sought a cheaper alternative to SPY’s 0.09% expense ratio. VOO’s 0.03% expense ratio generates more interest from cost-conscious retail investors for asset allocation purposes, while the high liquidity that stems from SPY’s daily volume of approximately 100 million shares appeals to institutional investors. Low-cost bond index funds had inflows too. If the yield on your intermediate-term bond fund is 1.73% and you are paying 0.70%, you net less than if paying 0.20%. 40% of your earnings are going to your advisor. Over time, that cuts your total income in half due to the “the tyranny of compounding costs.” For fixed income investors, costs matter more than equities since historically, equities provide inflation-beating returns. Unfortunately, 70% of savers are not aware that they were paying any fees at all.






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

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

how democracy dies in the 21st century: death by a thousand cuts

Trump’s 200th lifetime federal judge: Make America WHITE Again


I pay no taxes Trump sent virus checks to 1 million dead people

How Govt wastes our money: Congress gives 3.7 Trillion to the wealthy! 
Trump tells ‘joke’: ‘slow the testing/reporting’ more cases coming from opening early
Trump to end federal support for testing sites even TX: no tests = no cases but hosp full


SCAMS/SPINS:

Much hype about nothing: Bolton book is bust: House’s “impeachment malpractice”
Ivanka’s 6,200 no-mask rally a bust: 6 staff catch hoax: hundreds get it in days: Jared no show

Richmond: both sides now carrying assault rifles: how many must get shot?

McConnell’s GOP tactic: 1 voting site for all Louisville: close doors on voters waiting!
Mail-in voting saved KY from melt down at polls: Nov answer to GOP vote suppression

Trump accuses Obama of treason, again: desperate after Tulsa; Arizona failures
Former GOP officials support Biden: Party regulars have no place in Trump cult.
GOP will NOT reform policy: GOP limits ‘reforms’ to more body cams; killings OK

US rate of new cases hit a new high: 36,880 new: more than 2 months after its previous record
TX gov reverses reopening ‘happy talk’: “hospitalizations were at an all-time high”

Trump tells Supremes to end ObamaCare in midst of pandemic: voters seek health care

Eviction bans ending — massive eviction crisis looms: no help from Washington!
Toxic hand sanitizers: 9 banned by FDA: Methanol can be dangerous

RoundUp cancer victim heirs get money: no jail time for killer Monsanto/Bayer execs

Harbour Portfolio caught misleading, deceptive acts on borrowers re: ‘deed’ flipping
Advisors running private equity funds caught overcharging: expenses plus 2% plus 20%
Advisor exam cheating investigated by regulators: your advisor maybe pulling con

Mary Trump: World’s Most Dangerous Man: cut off medical assistance to Fred III’s son


Jobs
Navy reversed and fires captain of aircraft carrier who warned about the spread of virus

Who owns your account now?
Trump forced to show who got bailout money: legal names hide real recipients: private jets, donors

Miracle:
Where/how you live helps living to age 100: walkability, socioeconomic, working neighbors.
Warming record: Russian town located within the Arctic Circle reached 100 degrees already
DEMs best for prez? Joe Biden is, by his own admission, a “gaffe machine.”

Cancer drug: New treatment halts tumor growth: drug stops cancer cell repair


IAN
41 Watchung Plaza, B242
MontclairNJ   07042
973.746.2014
Alerts

Friday, June 19, 2020

Having a hard time sticking with your allocations?


Having a hard time sticking with your allocations?
Market ups and downs can lead you to destroy your wealth. Actually market volatility is normal—it’s our reactions that destroy our long-term accumulations, not the allocations. How we react to news can hurt us. Usually, TV gurus and fund managers are trying to collect more assets, not manage your money for your maximum dollars. What we hear has nothing to do with our strategy. Managers get paid on how MUCH money they manage not on how WELL they manage it. These are two different but related goals. Managers get paid every quarter—we only have to worry about the final outcome. Research has shown that that small annual fee managers take from us can cost us up to 63% of our total potential accumulation. It’s the “the tyranny of compounding costs” that we don’t see until the end. Managers take our money every quarter but it adds up. Managers think they can time the market and we are happy for them to succeed. But over time, no manager can be successful all the time. They are in it for this quarter. We are in it for the long term. Warren Buffett: "The stock market is a device for transferring money from the IMPATIENT to the PATIENT."

Is a private equity 401k account right for you?
In a huge win for the asset class, your 401k money is now a target for professional con men and women. Trump’s Labor department, charged with protecting your retirement investments, has changed sides. Now, if private equity is embraced, 401k costs will skyrocket, risk will dramatically increase and transparency will plummet. The private equity industry — a massive campaign donor, by the way— wants your money. The typical private equity manager charges 2% of the fund’s assets as an annual fee, just for showing up, and takes 20% of any profits. 2% of the 401k pool is $180 billion in profits a year. Private equity managers typically borrow huge amounts of money to buy a poorly run company so they can flip it for a quick sale. The managers collect huge fees and stock segments while investors are silent partners with little control. Like hedge funds, investors can lose everything with no recourse. Private equity fund investment is for investors who can afford to have capital locked up for long periods and who can risk losing significant amounts of money. This is gambling at its extreme. As one advisor said, “You don’t really know what you’re investing in.” It is ‘private’ for a reason. And they don’t even beat the simple index fund. The final test: Warren Buffett’s investment strategy beat private funds because of high fees. 

Is this summer the time for a new vehicle?
As dealers try to catch up on sales for 2020, watch for more discounts. Keep in mind that an unreliable vehicle is NOT a great deal no matter what the price. Most notable, CR ranks Mazda and Dodge above Honda and Audi. Buick has fallen to #18 on the list. Acura and Cadillac are now at the bottom of the list with Alfa Romeo.
Avoid the 10 LEAST reliable models of 2020, according to Consumer Reports:
Chevrolet Colorado/GMC Canyon (same body style, different badging)
Chevrolet Camaro
Jeep Wrangler
Alfa Romeo Giulia
Volkswagen Atlas
Volkswagen Tiguan
Acura MDX
Tesla Model X
Chrysler Pacifica
Chevrolet Traverse

Did automation and simple options save your retirement fund?
In a period where many investors lost money, two-thirds of Vanguard’s retirement plan participants saw their account balances rise on a year-over-year basis for the 12 months ending on April 30. Vanguard found that automation and simplified investment options have led to superior investment outcomes for plan participants. The median account balance among its 401(k) participants increased 71% between April 2015 and April 2020. As founder, John Bogle said, “stay the course.” https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

Do you really need a will?
My house is owned jointly. It becomes my wife’s automatically at my death. Some of my financial accounts are held jointly. Most of my assets are in IRA accounts with beneficiaries already chosen. My business is a partnership with the partners already in control. There are very few assets that need a will to designate their new owner. If I died today, my wife gets my car and my life’s ‘junk.’ I made a will for $100 that was witnessed by a local notary for $20. My wife will consult with a lawyer to execute my will. She will pay a one-time fee to have a CFP check her financial assets once a year. My stock holdings are my ‘life insurance’: no taxes on the stepped-up basis. I have made arrangements for my cremation so no funeral/plot expenses. I don’t have ugly heirs that would contest my will and gifts. Yes, a $100 will is a necessary convenience for us.

Should you work one more year?
We are facing another year of this question. Given the discussion of another home remodeling project and another possible collapse of the stock market, this year turns out like the last one: we don’t have a clear answer. We have a CFP plan that assures us of money for the rest of our lives so no matter what, we will live comfortably. But that does not change the question—work or not work. It is just NOT about money. It is hard to say goodbye to our everyday routines. We don’t have a compelling goal of travel or other must-do ‘bucket list.’ We love what we do so it is hard to give it up. And with the market and economic upheavals, we don’t feel confident that this is the time to make a change.

Wealthy get another bailout from US taxpayers
The US gov announced it will reimburse the wealthy for their losses on companies they own if they were run poorly and lost money. The Federal Reserve (us) will buy individual company bonds. If you ran a company that borrowed more money than your revenue so that you could reward your stockholders, you would be rewarded with a big bonus. However, when you have to pay back the money, you should be bankrupt if revenue falls. These “zombie” firms would be dead if it were not for us taxpayers giving them money in the form of future tax dollars for their almost worthless bonds. If they could not run the business before, are they likely to fulfill ‘promises to pay’ later. Since the Fed can create money to buy bonds, it just adds to the national debt and makes the rich richer. We will have to pay interest later. Actually our kids will be paying long after our Social Security benefits are cut to help finance this bailout.



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

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


Mobster took revenge on his relatives: cancelled policy on ill child




How Govt wastes our money: Congress gives 3.7 Trillion to the wealthy! 

TX AZ govs refuse local use of masks to save lives: they give ‘liberty’ so that more die
More time for the wealthy to avoid their fair share of taxes: another Trump gift to friends


SCAMS/SPINS:
Trump oversees ‘Pump and Dump’ stock sales by his mob after calling virus “zero cases”

Trump takes over Voice of America and our Post Office: ‘lost’ mail for election win?
Secret Service now admits it used pepper spray and bullets to make path for photo op

GA man shot in the back: police shot him while running away.
CA two Black men dead by hanging. No note, no stool, no struggle, no investigation?
NM terrorists with war weapons shoot protestor: police allow war weapons’ use

Virus scammers’ psych tricks: fake voice, fake creds, fake charity, fake fears, fake ‘now’
Re opened Texas, Florida and California recorded record numbers of new cases

Fake gov grants to seniors: scammers use virus fears
Fake Robinhood account balance: Teen panicked at $ 730,000 loss on trading.



Jobs
Tips on avoiding virus at work: https://www.cdc.daily-life-coping/activities.html
Tom Brady selling supplements: $20 millions not enough; just bored with game?


Who owns your account now?
Get forgiveness: revised EZ Paycheck Protection Program loan forgiveness application 
Eviction process put on hold for 2 months for federal-backed loans: check your servicer.

Miracle:
Human compassion saves lives: human discussion brings him back to life

Volunteers to take the virus vaccine test: possible serious illness!
60 year old generic drug helps some virus patients: don’t tell for-profit drug makers


IAN
41 Watchung Plaza, B242
MontclairNJ   07042
973.746.2014
Alerts 

Friday, June 12, 2020

Should you sign a vendor liability waiver?


Should you sign a vendor liability waiver?
Yes, as your favorite entertainment venue, a retail marketplace, restaurants and gyms open up for business, you will likely be asked to share the risk. Most businesses are asking their lawyer to draw up waivers. By signing a waiver, you are agreeing to the fact that the company wants you to assume their risk of operating. You might want to know if they have taken all precautions to keep you safe. Have they sprayed? Is staff tested on a regular basis? Are customers required to keep their distance? Do they limit the number of customers at a time? Do they require customer masks? If they don’t know or the terms of the waiver are vague, don’t sign. If they just put a sign on the door that you “enter at your own risk,” wait for another month or two, as these scientists point out.
Avoid the risk: Better safe than sorry.

Is a Roth IRA conversion right for you?
Fidelity Investments saw a 76% increase in the number of Roth IRA conversions in the first quarter of 2020. If your income has dropped due to job changes -– pushing you into a lower income tax bracket –- then it may be a good opportunity to convert to a Roth IRA. All your future gains will not be taxed. If your business lost money, the taxable loss can be used to offset other income on a personal tax return. IRA money is taxed when you convert because you did not pay tax on the contributions. You can control how much you convert so you can control how much you are taxed. You will need to do the math on your tax and probable income this year to decide on the amount to convert. If you do not have the extra cash to pay the tax next year, then converting just makes your taxes higher. However, the great benefit of a Roth is you can better manage your RMDs (required minimum distributions starting at age 72). Income in retirement can be controlled better since you have choices between taxable and non-taxable sources.

Where can you receive 2.4% yield for retirement income?
Quality bonds and steady dividend paying stocks. Isn’t that a better alternative to historically low rates from bonds and annuities? Consider a proven balanced fund like Vanguard’s Wellesley Income Fund. As of early June, the yield on 10-year Treasuries is only 0.66%, while Bloomberg Barclays Aggregate tracking index funds are yielding just over 1%. You cannot rely on bonds alone for the foreseeable future. Who knows where your stocks will end up in 2020? A low-cost balanced fund may offer you the best of both worlds in this environment. Over time, balanced funds provide the inflation hedge you will need long term. Average annual returns of 4-6% provide growth. Remember, your spending power is reduced by inflation every year—reduced 50% over 20 years. A 1st class stamp cost 32 cents in 2000. Now it’s 55 cents. Social Security may not keep up with your purchase items’ inflation. SS benefits will be cut by 2034.

Market rebound confounds all the fortune-tellers
Very few Wall Street gurus know that the stock market would bounce back so hard that their strategies would be crushed. The S&P 500 has rallied more than 40% from its March low amid central bank stimulus and better-than-expected economic data, defying warnings about elevated valuations and a collapse in profits. The Nasdaq 100 last week climbed to an all-time high, making a full recovery from this year’s bear-market decline. Timing the market is a loser’s game. At Friday’s close of 3,193.93, the S&P 500 exceeded all but four strategists’ year-end targets, based on a survey of 18 Wall Street prognosticators last month. So which strategy works? Certainly paying for bad advice only detracts from your long-term accumulation. Actually, over time, if you pay 2% for advice and trades and annual 12b-1 fees, you are giving your vendor HALF of your possible total returns.



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

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







How Govt wastes our money: Congress gives 3.7 Trillion to the wealthy! 

Hospitals with $ millions got our tax money to overpay management; still layoff staff
Jared’s $91 million mistakes: medical supplies never accounted for: donors rewarded?

SCAMS/SPINS:



Meat prices up 8%: Price-gauging protected by Trump order to stay open despite deaths.
James Nielsen CA caught 'pump-and-dump' scheme to boost profits in a biotech Arrayit
Hospitals Got Bailouts and Furloughed Thousands While Paying C.E.O.s Millions

Drug makers caught raising prices of generic drugs: hits unemployed hardest
Fruits/vegetables may be next for Trump order to work thru virus

Biden: 10 to 15 % of the people out there are just not very good people Hillary speech?
Biden had police lobbyist write his crime bill: “Never said no” to police desires.

In counties where police received military equipment, police kill more pets too
Congress gives police immunity from prosecution: GOP/Trumpers: OK continue to kill
Louisville police: Breonna Taylor incident report. It's virtually blank: killed 8 times.


Jobs
Your business may qualify for IRS tax relief through credits or deferrals.
Police and Floyd bouncer: did murderer have revenge in the killing so police stood by?

Who owns your account now?
In-ground burial spots going fast: men more likely avoid $10,000 full do: going with fire
GOP has confounded easy voting many ways: our voter account may not work Nov

Miracle:
GOP still clings to their savior who makes “a mockery of the Constitution” Going down

Scientists of contagions estimate time to return to normal: gyms are hardest




IAN
41 Watchung Plaza, B242
MontclairNJ   07042
973.746.2014
Alerts 

Friday, June 5, 2020

What are the 3 most important rules of investing?


What are the 3 most important rules of investing?
1. Invest just 10% of your income for $1,000,000 nest egg
2. Invest automatically in a stock index fund every payday
3. Use a tax-advantaged account to avoid income taxes

We pay more taxes: Congress allows wealthy to avoid paying
Congress cuts funds. The IRS is letting hundreds of thousands of high-income individuals duck their tax obligations, according to a government watchdog report. The Treasury Inspector General for Tax Administration found that 879,415 high-income individuals who didn’t file returns cumulatively failed to pay $45.7 billion in taxes from 2014 to 2016 and that the agency hasn’t tried to collect from many of those taxpayers. The IRS didn’t put 326,579 of the cases into its enforcement system, and it closed 42,601 of the cases without ever working on them. “In addition, the remaining 510,235 high-income nonfilers, totaling estimated tax due of $24.9 billion, are sitting in one of the collection function’s inventory streams and will likely not be pursued as resources decline,” said the report, released Monday. Among those who haven’t paid their taxes are approximately 1,891 individuals who owe the IRS more than $1 million, according to the report. Trump is proud he does not pay his fair share. The number of people who have been failing to file tax returns -- a crime that could come with steep penalties or as many as five years in prison -- has been increasing in recent years. The average U.S. household is paying an annual surtax of more than $3,000 to subsidize taxpayers who aren’t paying all they owe.

We subsidize drug development; drug firm owners take the profits
We paid $ millions to develop remdesivir, but Gilead Sciences owners get all the profits. This has been the pattern for 100 years. Drug companies claim high prices are for development of new cures but we pay for the science behind new drugs. Drug companies control the manufacture, marketing and distribution and so can charge whatever they like. We have no say even though we paid $ millions for the startup. Drug prices are pushed up even if they are not new—just the marketing and packaging. Drug firms manipulate patents so that low-cost generics are kept out of our hands.

If you stayed in the market
Many long-term investors did NOT sell in the downdraft in March. Their portfolio is now at the level it was in January 30. What will happen next? No one knows despite all the high-priced fortune-tellers on radio and TV. As we have seen, if you had timed the market and missed 30 or 40 best days, you would have lost money. Over time, including recessions over the last 30 years, your stock investments have averaged 11% in a low-cost account. Timing the market—selling and buying—in any form: rebalance, single stocks to ‘sector rotation’ usually fails over time. Sure, some crystal balls do shine a light for a short time but you can’t be sure the next time. Ponzi schemes can look very impressive and confound all the critics, but not forever. Bernie Madoff’s $65 billion scam lasted longer than most because many so-called professionals went all in on the con. They were getting rich too. Remember Bogle’s favorite line: Stay the course.


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

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

Ordering the military against civilian protesters: King George

The Mob: Cotton calls for “an overwhelming show of force


Mobster: I will use "most ominous weapons" if protesters breach WH



Mobster: I decide which facts are real: Twitter: NO you don’t


Mobster: I decide who gets virus drug remdesivir first and who doesn’t



How Govt wastes our money: Congress gives 3.7 Trillion to the wealthy! 
EPA: water pollution allowed by biz: states have less control
Trump built The Wall around his bunker to keep Americans OUT: $ ½ million waste.

SCAMS/SPINS:

Trump ends police reform program: “we need to dominate the battlespace.” 
GOP second thoughts on their Leader: https://twitter.com/RVAT2020

With Eighteen conduct complaints filed against him, MN murderer allowed to kill!
White nationalist group posing as antifa called for violence on Twitter: chaos

Trump steals image of astronaut and her son: sends wrong message & it’s illegal


BoA Merrill caught overcharged us for mutual fund transactions: repay $ 2.7 millions
Fake health app, masks, sanitizer: Everest Microbial Defense, Ebay masks, Vivoo app
Approved Cash Advance, Main Street Personal Finance caught holding overpayments
Price-fixing by chicken producers: What about toilet paper, towels, disinfectants, masks?


Jobs
Small biz loans aren’t working: too short-term and lack of re-opening crowd demand.
House is out of session this week: more vacation time! Senators out of their minds?
Protesters told to ‘get a job’ by armed militia along route: intimidation speaks  

Who owns your account now?
Which debts does your executor have to pay? Surprisingly few must be paid by heirs.

Best bank mortgage deal? Reduce rate or costs; long or short term; best of 3 estimates

Miracle:
Newer drugs control cancers: lung, prostate, colon: can we afford them w/o insurance?

Christian nationalism: “It’s about identity, enforcing hierarchy, and order.” Not religion at all
Racist Rep King still got 36% of the vote!: Can IA still be 1/3 racist GOP?

IAN
41 Watchung Plaza, B242
MontclairNJ   07042
973.746.2014
Alerts