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


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1 comment:

samrich said...

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