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."
Go with the Best: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X
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.
Use the Buffett strategy: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963
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
Save with your insurance discounts:
https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634
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.
Do you need one? https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793
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.
Fix your mistakes: https://www.amazon.com/What-did-wrong-financial-mistakes/dp/1491095946
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.
Avoid paying for this bailout: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976
**********ACCOUNTABILITY**************
Like 1776, this period
is a test
of democracy—do we really want ‘low-IQ’
Mobster?
Mobster
took revenge on his relatives: cancelled policy on ill child
Mobster gets China
to hack Nov election results
How Govt wastes our money: Congress
gives 3.7 Trillion to the wealthy!
Socialism for the Rich: Can we
afford to bailout so many companies and wealthy people?
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
Jared
buys $7.3 million tiny soda bottles instead of test tubes: FEMA accepts
them.
SCAMS/SPINS:
Garrison Courtney
DEA caught
scam to give gov contracts to firms he worked for
Trump
cancels Obama’s LGBTQ & DACA protections: Supremes say NO NO.
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?
FoxNews
uses altered/misleading pictures of protesters: appear violent/dangerous
Secret
Service now admits it used pepper spray and bullets to make path for photo
op
GOP
makes sure voting becomes 7 hour ordeal: GA is the model for Nov?
TX
white man shot 8 because bar refused drinks: white guy gets away.
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
Who are these Boogaloo
terrorists in Hawaiian shirts and carrying military
rifles?
Virus
scammers’ psych tricks: fake voice, fake creds, fake charity, fake fears,
fake ‘now’
Trump:
Stopping
C-19 Tests Would Result In Fewer Cases: Yes Don, so
would wearing masks!
Probiotics
don't do much for most people's gut health, review finds: costly hype!
Fake
gov grants to seniors: scammers use virus fears
Fake
Robinhood account balance: Teen panicked at $ 730,000 loss on trading.
Frederick Stow TN caught
stealing a total of $933,500 in client funds by forging names.
Jobs
Like abusive
priests, bad
cops get work in towns that want aggressive lawmen
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:
Biden for prez? : “I’m beginning to
get bored by my own talk here”
Human
compassion saves lives: human discussion brings him back to life
Those without rights are saving
us and risking themselves: gov should be on their side
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
973.746.2014
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