Friday, October 23, 2020

Are your financial biases risking your future?

 

Get to know your financial biases for a more secure future

What are the Fundamentals of behavioral finance? First: overconfidence bias. New investors make a killing on one of their first trades and now they feel like Masters of the universe. Self-deception means we miss information vital to making informed decisions.

Second: Over-simplification means we think “investing is simple—just do what we did before.” Some people try to mirror an action they read about like buying Coke because Warren Buffett owns Coke. Third: Emotional decisions. Some folks hear about a fantastic money-making scheme and avoid doing their own research. Internet chats tell them to buy Vietnamese Dong and check the site for the signal to sell. Fourth: Social pressure means you hear that the “smart money is selling health care stocks short.” That advice may have been accurate last month but not now. Learn more about your biases here. Remember, the middlemen only make money when you buy or sell. It is your money!

https://www.amazon.com/Fact-based-Investing-first-million-hardest/dp/1977574270

 

 

Is a health savings account right for you?

When health care needs are NOT great—you both are in good health—this kind of account lets you save money in a tax free account. You may accumulate funds until you need them year after year—even later in retirement. This account may be set up IF you can buy or your firm offers a high deductible health care policy. By using untaxed dollars in a Health Savings Account (HSA) to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs. HSA funds generally may not be used to pay premiums. While you can use the funds in an HSA at any time to pay for qualified medical expenses, you may contribute to an HSA only if you have a High Deductible Health Plan (HDHP) — generally a health plan (including a Marketplace plan) that only covers preventive services before the deductible.

https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

 

 

Many wealthy people want to copy Trump’s $750 tax bill

“Why can’t I do that?” Less than 0.5% of very high-income households paid as little tax as President Trump in 2016. Few of us of any income can match Trump’s avoidance methods. With median incomes (AGI of about $50,000 to $75,000), only about one in 10 paid $750 or less. 45% of those middle-income households paid between $5,000 and $10,000 in federal income tax. People who know about taxes think that Trump took questionable deductions. Trump has special legal entities to avoid taxes. Real estate development is especially ripe for cheating—almost anything can be considered an expense in the real estate biz plus depreciation on buildings provides extra large deductions. Also Trump has turned his business failures into huge tax benefits. Most of us cannot deduct the huge real estate loans he used to develop properties that failed. If we go bankrupt, we can’t deduct the loans like he did. His accountants have used questionable techniques in that area according to some experts. For instance, Trump used special appraiser friends in inflating the value of his ‘woods’ to produce a tax avoidance of $21 million. Trump has left a low-cost method of tax avoidance for us in current IRS rules.

Use the IRS approved tax-FREE account for working people:  https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

 

Are you ready? Social Security will cut benefits in 10 years

Social Security Trust Funds are expected to see shortfalls starting in 2031, three years earlier than expected, according to a new forecast from the Congressional Budget Office (CBO). Without Congressional intervention to shore up the funds, the SSA will need to cut benefits to retirees and beneficiaries as much as 25%, CBO said. With the loss of revenue from GOP tax breaks to the rich, Covid pandemic economic effects, and low interest rates, most smart investors are expecting less retirement income. For those who have at least 10 years before retirement, savvy investment moves could offset the loss of SS benefits. We don’t know what will happen to the market in the future, but we do know fixed income CD rates of under 2% won’t help us. The only inflation killer is a portfolio of stocks. Despite the fall in prices in 2007-8, those who held on did great—earning 13.58% per year over 10 years; 11% per year since 1976. If you start now, you will have enough for retirement since no one takes ALL their money out of stocks when retirement begins.

Avoid the cuts: https://www.amazon.com/Your-Retirement-Spending-Plan-have-enough/dp/1461084016

 

 

 

Need to save money? Save over $3,500 a year

When returns on investments are low, paying your advisor’s fees can rob you of over $100,000. If your investments are earning 6% but your fees, commissions and expense ratios total 2%, your account will grow HALF as much as it could have over time. Example: You invest $250 a month for 35 years with costs of 2% per year. You end up with only $229,194. If your 6% a year on average only cost you 0.07%, you would end up with $352,216. That is $123,022 more—HALF again than with advisor fees. You can always hire an advisor when you have a problem. Your advisor pockets the $123,022. Most of us are correct in assuming advisors are a luxury item. We can’t afford to give away that much of our nest egg. Plus it could be tax-FREE, adding ¼ more.

https://www.amazon.com/Tricks-Trade-Save-Mutual-Funds-Insurance-Annuities/dp/1535497289

 

 

 

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

 

Like 1776, this period is a test of democracy—do we really want a Dictator?

 

Supremes decide election … again?

Follow the money

 

Dictator to terrorists: “Stand by”  We will see [if I leave WH]

Dictator: I’m not inciting terrorists, just “having fun

Dictator: “I just start kissing them” 19 women

Dictator: Plan to eliminate FBI, jail opposition

 

How Govt wastes our money: Our Representatives gave 3.7 Trillion to the wealthy! 

NASA putting 4G network on moon: many kids can’t do online school here lacking 1G

Trump blocks CDC guidance on masks on all transport: Almost like he wants us to suffer

Trump blames leftists for protest violence but court docs say young adults from burbs

 

Trump’s Post Office mail tampering/slow down may decide our election: Swing states

Trump’s family separation operation can’t find parents of 545 children: Child abuse?

Trump’s GA immigrant prison doctor did “forced unnecessary gynological surgeries

 

Trump mob to get discount on $ Billion no-bid contract for 5G network: we lose control

 

 

SCAMS/SPINS:

PA tossed 372,000 votes because voter checked box requesting future ballot: GOP wins

Roberts & Supremes allow ballots post marked Nov 3 to be counted despite slowing mail

Putin’s hackers change election: picture says “1 million Trump event”; really musicfest Zurich

60 Minutes’ too rude, biased to Trump ego so he walks: Dictators need positive messaging

 

21,000 Election Day polling places have been eliminated to help Trump win: 11 hour wait!

GOP uses any means to stop voting even when it helps them: NO standard for signature review

Postal service benches its police who guard mail boxes: thieves encouraged to ditch ballots

Company employees threatened with job loss if Trump loses: FL GOP pressures companies

Trump brags he can shake-down Exxon for money: Trump did it to casino owner for 75M

Jared to start new Trump media outlet: Trump-branded product outlet; rebuild brand/empire

 

Trump paid $188,561 taxes to China but just $750 to US: average American paid $3,346

Trump mob member Broidy pleads guilty to unregistered foreign agent for China: no jail

Another teen Trumper caught plotting to kill Dems: AR 15 & explosives van;

 

Ten states Friday reported highest one-day cases: Trump rallies mass spreader: 224,000

Schools open then close: virus cases up: teachers face life or death or fired

Grace Community Church CA no masks violation: three virus cases so far

30% small biz run out of money by Dec: Mitch GOP says no money for working families

 

OxyContin maker guilty defrauding US; not murder of 450,000: Sacklers not jailed

SEC asked firms to tell us the truth about their bad acts: Wall Street does not: Surprise!

Mark Gelvan caught running fake charity (vets, cancer, disabled) $56 million: spent most

Motty Mizrahi CA caught defrauded clients $3 million guaranteed risk-free returns

 

Sunshine Mills announced a recall of certain pet food: poison mold kills

DoorDash, Grubhub, Uber Eats caught charging restaurant 20-40% fee to deliver plus tip

Insurers caught taking some drugs off their coverage list: how to buy now

 

Vast Tech, OMG Tech caught tricking clients’ computer problems so buy tech support

Health Insurance Team caught fake state website mislead buyers with private fee plans

One-Time PIN Code Scam: https://www.youtube.com/watch?v=j43rcSe_vik&feature=emb_title

 

Is your vehicle the most popular with thieves? Make sure your coverage is complete.

New York Stock Exchange Prepares To Leave NJ: Trade Tax Threatened: NY Exchange in New Jersey

Trump claims Google stifling competition and innovation: I tried others—just garbage

Eric Trump caught tricking voters with fake photo of Mr Cube’s hat: how low can go?

 

 

Fake product reviews: https://www.pcmag.com/how-to/how-to-spot-a-fake-review-on-amazon

 

10 online shopping scams: how to tell it’s a fake: fake copycat websites look like official

Is your employer watching you at home? ‘You have 60 sec­onds to start work­ing again.’

Ultimate intimidation vehicle goes electric: does the gun rack fit? The $113,000 toy.

 

Is it a scam?  Check AARP scamline 877.908.3360.

 

Check IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams

https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers

Check Social Security: https://blog.ssa.gov/

 

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

 

Jobs

NJ hiring and training coordinated by gov: 70,000 jobs goal

No GRE required: Information and Data Science: online UC Berkeley

CVS Health said it will hire 15,000 employees: winter contagions

 

Who owns your account now?

Medicare: enrollment Change plans from Oct. 15 https://www.medicare.gov/plan-compare/#/

NJ Health marketplace: Replaces HealthCare.gov in New Jersey at getcovered.nj.gov.

Best quality/safe/reliable used vehicles for teens: CR picks start at $7,000

 

Charlie Brown TV specials cancelled: Apple bought Christmas and Thanksgiving specials

Avoid first-time home mortgage mistakes: get best deal for long-term loans

 

Miracles:

MI bans assault weapons near/in polling places: Trump encourages terrorists to be there

You pay less tax if you earn over $142,800: income over $142,800 Social Security tax FREE

Trump’s food stamp cuts for 700,000 poor outlawed Sunday: 8 million new poor since May

 

Top military leaders vote Biden: 'The world no longer looks up to America'

Pope: "Homosexual people have the right to be in a family. They are children of God,"

GOP Supremes could derail progressive laws in 2021: 3 years for Roosevelt to re-balance 

 

We can apply for Medicare online: https://blog.ssa.gov/apply-for-medicare-online

We can apply for Social Security online: https://www.ssa.gov/benefits/retirement/

 

 

IAN

41 Watchung Plaza, B242

MontclairNJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts available at http://dankeppel.blogspot.com/

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