Panic or calm strategy until
Whatever we expect to happen, history shows we will be wrong. So do we panic and sell as some of my readers have done. Or calmly wait for markets to find a new path? History is no predictor of the future but last time we had an upheaval, most investors who held on were rewarded. We had +31% and -32% recently. The story since 2000 is an annual return of 7.6%. Over most 10 year periods, we have earned more than investing in cash equivalents. Investing in a low-cost stock index fund returns 11% annually. American capitalism has consistently provided dividends and value gains. Fixed income and bond securities cannot match stocks for any 10 year period. So some of my readers have divided their pre-and post-retirement portfolio in HALF: 1/2 in a stock fund like Vanguard 500 Index to earn 11% for 10 to 30 years for future income. 1/2 in a balanced fund like Vanguard Wellesley Income to earn 5-6% for 1-9 years for current needs.
2020 15% so far
2019 31.10
2018 -4.41
2017 21.94
2016 11.93
2015 1.31
2014 13.81
2013 32.43
2012 15.88
2011 2.07
2010 14.87
2009 27.11
2008 -37.22
2007 5.46
2006 15.74
2005 4.79
2004 10.82
2003 28.72
2002 -22.27
2001 -11.98
2000 -9.11
Low cost beats high cost for any period so no matter what happens, avoid fees.
Pay less; get more: https://www.amazon.com/Pay-less-Get-more-investment/dp/1500598321
What is financial freedom?
The last 9 months has shown us what real financial freedom means. With 30 million of our fellow Americans out of work or in reduced-earnings work, we see why many are angry. Since real wages have lagged way behind the economic growth of the past 40 years, fewer of us have experienced “financial freedom”—the ability to weather a job loss or health care crisis. Those who had an emergency fund, a large retirement fund or a home equity line of credit are near the maximum withdrawal point. Many of the social security network programs created in the Big Depression are ripping apart. According to many who study the history of wealth creation, those who used “compound interest” have been able to survive this test of financial health.
Help your child get started: https://www.amazon.com/Give-your-child-leg-manage/dp/1096505355
Hate paying taxes? Cut taxes with a deductible IRA
The year we turn 72, we must begin paying tax on our tax-deferred accounts like IRA and pensions. We are told how much to take out in the form of the IRS table of required minimum distributions (RMD). When we are earning wages and pulling out RMDs, the tax consequences can result in higher tax rates and an increased percentage of our Social Security benefits being subjected to taxes. Now we can make deductible IRA contributions after age 70½. In the past, RMDs began at age 70½, but following the passage of the SECURE Act in 2019, it was raised to age 72. Similarly, the law used to put the lid on traditional IRA contributions after age 70½, but the new law does not have an age cutoff and allows additional contributions as long as you are still working. Even a part-time or self-employment job like Lyft Uber will qualify. We can deduct up to $7,000 each depending on income. On the other hand, if we would rather create a tax-FREE retirement, we can contribute to a Roth IRA from our wages. If we have a smaller tax bill this year, we may choose to convert over $7,000 to the Roth from our traditional IRA. Many readers are planning on having tax-FREE and taxable income in retirement. They feel this is a good time to take advantage of an expanding stock market and save more.
Make a plan: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716
Are the new ETF risks worth it?
Today securities regulator approved a controversial new rule that will allow ETFs’ to double their use of leverage and derivatives, while ignoring sales practices constraints that had originally been proposed. Leveraged and inverse ETFs appeal to investors and have brought in more fees, but not without significant risks and sometimes losses to investors. The SEC removed new sales practices regulation from the proposal that would have created higher standards of care and disclosure for reps and advisors who sell geared funds, or exchange-traded funds (ETFs) and mutual funds that track a variety of benchmarks. “Evidence suggests that retail investors buy these products without understanding risk and or objectives,” SEC Crenshaw said. “Just this morning, [SEC] Chairman [Jay] Clayton issued a statement that said Reg Best Interest will do nothing to protect these investors who buy these products through self-directed brokerage accounts." Most disappointing is the SEC’s failure to advance proposed sales practice rules that were designed to address the investor harm rising from sales of leverage and inverse ETFs. Enforcement cases from the SEC and Finra show that even investment professionals often lack a basic understanding of these complex products, member Lee added. “Indeed, other types of complex products not addressed by rule may cause similar harm to unsophisticated retail investors," Lee said. "But that does not justify why we fail to act now to protect retail investors in inverse and leveraged ETFs.” A new Fiduciary Rule will protect investors and Manhattan’s former top prosecutor may lead SEC.
https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275
Which retirement strategy is best for you?
Many young investors are choosing to take their tax free earnings later rather than immediately. With a 401k or other deferred compensation retirement plan we pay no income tax on our contributions from our pay check. We pay later. With a Roth 401k or Roth IRA we set up at one of the low-cost mutual fund firms (Vanguard, Fidelity, Schwab), we pay taxes now on our contributions but pay nothing on the gains during our lifetime. For example, we invest $250 a month in a low-cost stock fund at work for 35 years: result is $1.1 million. If we pay taxes on the $105,000 contributions, we pay nothing on the $1 million when we take it out. If we use a regular 401k with deductible contributions, we pay taxes on $1 million when we take it out (future tax rates may increase). If we are lucky, our employer matches our contributions. But fees charged by some small employer plans make the 401k/403b choice a bad one. Imagine investing in a mutual fund with stocks and bonds paying about 4-6% and having to pay 2% to the plan administrator plus surrender charges of 10% if you change jobs or move your money. This is what some of my readers had to contend with. They switched to a Roth IRA.
Consider paying less later: https://www.amazon.com/Pay-No-Taxes-Retirement-legally/dp/1507527977/
American socialism in action: vaccines for some; cost for all
Pfizer’s vaccine for the pandemic should be available by mid
’21. But did the capitalists at Pfizer really take a financial risk that must
be rewarded with huge profits? A vaccine for some
Time to ask for the subsidies back: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584
Did your new vehicle lose 50% of value?
Do you consider the trade-in value when you bought your new
car or SUV? Probably not. What about when you bought a used version of the
model you like? The loss in value is called depreciation. That is what
determines the amount you would receive if your vehicle was “totaled” in a
collision. Some of the most expensive
wheels top the list of lost value: BMW, Mercedes, Maserati lose over 60%
(up to $80,000) in 5 years. I suppose the well-heeled don’t care about that
since they can afford it. But if you care about getting your money’s worth at
trade-in time, then
Get a good deal on insurance too: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634
**********ACCOUNTABILITY**************
Like 1776, this
period is a test
of democracy—NO, we don’t want a Dictator?
Trump
defies Supreme’s decision
Can
we ever trust our government again?
Our ‘Truth
and Reconciliation Commission’
One
GOP Gov moving OH to overcome crisis
GOP
wants to “un-elect” Biden despite final score
Biden
displays conversations with world leaders like previous presidents so we
know what is going on in the world. Transition
posts its ongoing work to get ready.
How Govt wastes our money: Our
Representatives gave 3.7 Trillion to the wealthy!
Trump sickens 130 Secret Service: his rallies made people sick—too close, few masks
Seat-belt wearing law saves lives: masks save lives and personal freedom to live!
Medicare Part B premium $148.50 up 2.7%; taking some of the SS benefit rise of 1.3%.
After gov pays to develop vaccines, we will personally pay up to $250 per dose
Trump considers starting war with Iran: nuclear danger 12 times the ‘15 Obama deal.
Trump hurries to sell Alaska Wildlife Refuge to friends: bull(y) in china shop
Trump’s lawyer says it’s a “national conspiracy” by states: 80 million fake votes?
Will Trump shutdown government in final revenge act on Americans? Revenge
Trump country ND leads the world in deaths: 1 in ever 1000 dead: real not hoax
SCAMS/SPINS:
Trump installs his donors to run military: ‘It’s ‘The Twilight Zone,’’ the official said. Trump installs his meteorologist who says “carbon dioxide in atmosphere is good thing.”
Could Trump give up our gov secrets to foreign powers to cancel his debts?
Power of ideology/money to change us: Trump’s lawyer Jenna Ellis: ‘idiot’ to POTUS
Trumpism: ‘They
know it’s real and they don’t care.’ ‘People are not being cautious at all.’
“If
someone can choose abortion and end human life, then I can choose to wear a
mask or not.”
Could
Don Trump replace Alex Trebek on Jeopardy: learning the truth 1 question at
a time?
GOP: No
masks; more deaths proved ‘correct’ strategy for
winning IA, WI, ND, MT locals
Emergency nurse: patients deny virus that kills them, still: drank the Kool-Aide
Medical leaders to Trump: work with Biden or “more
people may die”: blood on hands
Voter fraud ‘proofs’ being faked to mislead us: GOP states have reported no fraud
Trump fires voter fraud watchdog for doing his job: https://www.cisa.gov/rumorcontrol
Trump lawyers giving up voter fraud suits: Giuliani, not practice in years, is it! $20K/day
Graham pressured GA official: find ways to exclude ballots from count. GOP fraud
Judge to Trump: “You are not entitled to manufacture your own law”
Lobbyists infiltrate Biden government early. Former gov employees rotate in/out.
Conservative lawyer hired as Biden WH Counsel: protection from GOP critics?
Catholic officials sexually abuse children: why are they exempt from jail? Citizens jailed
Pope cop out: “who am I to judge” McCarrick & officials who hurt little children for life
Boy Scouts face at least 88,500 claims of sexual abuse: Institutions hide bad guys
UCLA sex abuse of students in clinic hidden by officials: $73 million; no jail
President accused
of rape; 25 sexual assault; Biden: “no
indictments”; no jail; pay offs?
Does Hate Sell? Facebook caught NOT removing anti-Harris posts by hate groups
Scam: $1,000 payments for bogus covid clinical studies: “help scientists; make cash”
Debt collector Afni caught giving bad info to credit bureaus; fail correct bad data; dispute
Joseph Ashton United Auto Workers caught kickbacks on union watches jail postponed
PIMCO exec CA caught sex discrimination bias in pay promotions report-retaliation
Some
advisors see gold
in them there oil fields: Oil funds down 35%; Energy funds a bargain?
Keith
Ashley TX caught
stealing $750,000 Ponzi then killed client: B-D terminated him Oct 20
Wells
John Stumpf-Carrie Tolstedt caught
misleading re: mass "cross sell" unauthorized accounts
James
Booth caught
defrauding clients $5 million Ponzi promised high returns; jail 4 yrs
Five investment
firm caught
selling unsuitable exchange-traded funds linked to market volatility
Matthew
Piercey CA caught
misleading investors multiple schemes, fraud, Ponzi, steal $35 mil
Amazon
recalling 350,000 Ring
Video Doorbell (2nd Generation) starts fires
NRA
caught
misleading members on criminal defense insurance; keeping some premium
Movie
theaters eclipsed: Warner Bros releases Wonder Woman to HBO same day: 12/25
Covid
cures/treatment bracelets, drugs, fitness class, ozone, stem cell, lights,
injections SCAMS
GM recalling
68,677 Bolt
electric cars worldwide that pose a fire risk: full charge fire
Ford
recalling 2020 Explorer
and Lincoln Aviator SUVs to replace the driveshaft
Ford
recalling 15,587 2014-16 Ford
Edge, Explorer, Taurus tranny fails
Car
prices shown on Carfax do not include dealer “fees”: “great value” may not
be.
Lawsuit
Trump
has doomed us to hell is thrown out: “misleading
people, deceiving them to sin”
Scam vid seen by
thousands was joke: voter official
destroying a ballot for Trump faked.
10
internet scam techniques: “just exit screen” don’t click on anything or
else
737 Max: Same
guys who approved the first time approve it again: none have flown in it
IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.
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
Florida
passes $15 minimum wage—but you have to wait: 2026 in fight for
fair wages.
Most unemployed can find a health plan for $10 a month or less on HealthCare.gov.
Get ready for
unusual tax year: steps-to-take-now-to-get-a-jump-on-next-years-taxes
Women financial
advisors: women
with money prefer working with women advisors
Who owns your account now?
Bank
Top Medicare Advantage plans: JD Power customer satisfaction rating: Highmark,Kaiser
Amazon pharmacy: Most insurance accepted; Prime buy generic or brand discounted.
IRS offers extra time to delay paying taxes: help-those-financially-affected-by-covid-19
First Time Penalty Abatement: you may qualify for relief from penalties
Refinance
VA loan with special rates: still pay bank fees, closing costs
Miracles:
Turkish
immigrants made vaccine Pfizer is making to help us get past virus: Scientists!
North/South Dakota leading
the nation in new cases: GOP resists
mask mandates 250K
Our
immune system works if we let it grow: antibiotics early in life hurts
later life health
Covid vaccine 95%
effective but how
long are we protected from getting Covid again ???
30
min Covid-19 self-testing kit $50 at-home diagnosis: accuracy 94%: costs
vary.
Experience really foul smells of 16th
century people who never bathed, relieved in street
Make
diamonds in minutes: finally you don’t have to wait for that big ring.
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/
We can apply for
health care online: https://www.healthcare.gov/
IAN
41 Watchung Plaza,
B242
973.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available at http://dankeppel.blogspot.com/
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