Rebuilding our lives in 2021
We still have to wear masks since many Americans find it hard to protect themselves and others. We hope enough of our fellow Americans will take the vaccine so we can re-establish our lives. First, let’s rebuild our emergency fund. Most of us are wasting money on products/services we don’t need. I cut out my cable sports package to save $40 a month. I found the games I missed on YouTube—some were summaries of the important plays—some the full exhibition. I find tons of movies/shows on YouTube free. I buy cars with least problems. I was able to get my town to re-evaluate our property tax bill. I got on the town property records and found similar property with less assessment. I filed an appeal. The town assessor visited my home. They offered to reduce the assessment and I saved $1700 a year. I did my own federal and state tax return online for $14 instead of $550 by just filling in the same forms as last year’s tax preparer and I have 2 businesses. It worked—I got a bigger refund--$3,566. I shop groceries online: they load them in my car. I save because I can see the discounts in all aisles. For commodities like tissues, I compare buying them in bulk (free shipping) at the box stores. I buy house brands usually. I use my daughter’s Prime for free shipping and entertainment. I use a 25 cent/min cell and pay $9.99 landline to screen robos. I moved all our IRAs to Vanguard and save over $4,500 annually in fees.
Stop wasting $3,000 a year: https://www.amazon.com/Save-3000-every-year-Only/dp/1500681571
Got 2nd stimulus check?
Stimulus money is called Economic Impact Payment. Eligible individuals who did not receive an Economic Impact Payment this year – either the first or the second payment – will be able to claim it when they file their 2020 taxes in 2021. The IRS urges taxpayers who didn’t receive a payment this year to review the eligibility criteria when they file their 2020 taxes; many people, including recent college graduates, may be eligible to claim it. People will see the Economic Impact Payments (EIP) referred to as the Recovery Rebate Credit (RRC) on Form 1040 or Form 1040-SR since the EIPs are an advance payment of the RRC. Income is based on your 2019 adjusted gross income (AGI). Individuals earning under $75,000 and heads of households under $112,500 typically qualify for the full $600 stimulus payment. Those married and filing jointly or surviving spouses earning under $150,000 usually qualify for a $1,200 payment. Check the status of your payment at IRS.gov/GetMyPayment. So tell your tax preparer if you did NOT receive your money by direct deposit or check. You can receive it as a tax refund. It is not taxable as is unemployment compensation unfortunately.
Build your tax shelter: https://www.amazon.com/Your-ZERO-Tax-Account-Wealthy/dp/1482772795
Is starting SS benefits at age 62 right for you?
We thought we would receive more SS benefits each year but we found out once we started at age 62, 63, etc our benefits would never increase except for the cost of living COLA adjustment. There are many reasons to start benefits at age 62 and not wait for the highest payout at age 70. However, if you claim Social Security benefits before reaching full retirement age and also work, it can cost you. The government could reduce your Social Security checks by as much as $1 for every $2 in earnings over a certain amount, up until you reach full retirement age. Social Security uses your lifetime average for monthly income, as calculated from your 35 highest-earning years and adjusted to reflect historical wage trends, as the basis for your benefit calculation. Even if you’ve already started your benefits after reaching full-benefit age, Social Security annually recalculates this average, factoring in any new income from work. If your current earnings fall into your top 35 earning years, your monthly average will rise, and so could your benefit. Be sure to visit your local SS office before you apply for benefits so you don’t make a mistake and lose money for the rest of your life. There are many ways to maximize your benefits so an office visit is worthwhile.
Increase your retirement income: https://www.amazon.com/You-Can-Afford-Retirement-FEE-FREE/dp/1517738253
Why our readers love
Wellesley Income fund
Many of our readers
are retired or near retirement. When investors start relying on their own funds
for income instead of a paycheck, they offset possible high stock returns for
regular steady balanced returns. Most investors fear a market downturn that
will reduce their income now or later. Vanguard’s Wellesley
Income fund is a low-cost balanced fund managed for steady returns from
stocks and bonds. Most of the holdings of this fund are bonds so picking the
right securities to maintain an annual return of near 10% is important. Many
readers explain how they have overweighted their portfolio toward this fund
over the years taking more and more of their annual RMD income from this fund.
However, they still rely on other Vanguard funds to pick up high stock funds as
in ’20.
They avoid paying a
broker and thus avoid giving
up much of their potential long-term gains. No trading, no timing, no gambling.
Other popular low-cost funds are:
2020 Total Return Fund Long-term
Return Longevity
18.4% 500 Index 11.3%
since 1976
-30.8% Energy 8.5% since 1984
32.2% Extended
Market 10.7%
since 1987
12.6% Health 16.1%
since 1984
59.6% International
Growth 11.6%
since 1981
17.3% PRIMECAP 13.8%
since 1984
19.1% Small Cap
Index 10.6%
since 1960
8.5%
7.4%
14.5%
15.9% Average 11.4%
*
*Average Annual Returns as of
Pay less; earn more: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957
Pandemic tax filing made easy
Save virus exposure and money by doing your own taxes on a site
approved by the IRS. IRS Free File lets you prepare and file your federal
income tax online for free. File at an IRS partner site with the IRS
Free File Program or use Free File Fillable Forms. It's safe, easy and no cost
to you. Most of these sites file the state return for a nominal fee also.
Most sites are open Feb 1 and most guide you through the process by asking
questions. Some will try to sell you the deluxe version but legally they cannot
force you to pay for the Federal filing. Employers must file Form W-2 and other wage statements by
Save $300-400: https://www.irs.gov/individuals/steps-to-take-now-to-get-a-jump-on-this-years-taxes
Is investing in a
real estate investment trust right for you?
This market is
depressed since many businesses are cannot pay their lease expenses. As the
economy improves, commercial
real estate returns will improve. Vanguard’s REIT
fund price has fallen and so it is on
sale now. Long term returns show almost 10% gains. Since the income is
mostly dividends and interest, put your dollars to work in an IRA. You defer
taxes until later when gains will be higher.
https://investor.vanguard.com/mutual-funds/profile/VGSLX
Why is it better to
take IRA tax deduction in 2021 for 2021 not 2020
Retirees who still work can now reduce taxable income by making $7,000 IRA contributions regardless of age. The age limit for IRA contributions was lifted in 2020. So our RMD for 2021 may be larger and thus a higher tax liability. For some, their IRA balance is up 17% and thus the RMD calculation will be made on a much higher balance than previous years. Retirees did not need to take an RMD in 2020, so they will have lower taxes. However, in ’21 the RMD amount may be higher causing higher taxes. These retirees will need the IRA contribution deductions to lower their taxes for tax year 2021 not 2020. So since we have a choice of 2020 or 2021, we will make sure we make deductible IRA contributions for 2021 anytime in 2021. If we don’t need the deduction at all, we will contribute to the Roth IRA which gives us tax-FREE income later when we no long have earned income. Of course you can always convert IRA money to Roth for a tax-FREE future.
https://www.amazon.com/Go-Tax-FREE-Investing-Income-Forever/dp/1482633280
**********ACCOUNTABILITY**************
Like 1776, this
period is a test
of democracy—We
rejected an "American
fascist"
President
of the United States tries to overthrow our government
Trump
incites ‘mob’: "failed
insurrection"
FBI: ‘domestic
terrorists’
25th
Amendment: “high
crime and misdemeanor”
Our ‘Truth
and Reconciliation Commission’?
How Govt wastes our money: Coup
attempt put down; Dictator
still has atomic codes
Dictators unstable after loss: do crazy things like “go out in a blaze”: Pence take over?
Who removes Trump Jan 20 if mob takes WH: took soldiers hours to drive to Capitol
Usual outcome of failed coups study: failed dictators are exiled, imprisoned or executed.
Coup attempt: Congress overrun by Trump terrorists; police lost; Dictator eggs on
Congress hides; put on gas masks: furniture block doors; 4 dead; soldiers too late
Where were Antifa-scist when fascists stormed Capitol? Dictator got his mob action
Capitol police refused FBI and Guard help twice: racism/pro-Trump bias/hubris kills 4
American intelligence agencies failed to recognize coup attempt: White privilege?
September report Homeland Security surfaced identifying white supremacists as threat
FBI:
domestic terrorism: Violent,
criminal acts committed by individuals/groups to further ideological
‘Commander in chief’ vetoes own defense bill but Congress approves 3% troop raise
McConnell
decides not to help poor/unemployed: GOP
ran up deficit for rich but not for us
McConnell: Congress
provided “enough pandemic aid” Millions
go to food banks for 1st time
Our
‘Representatives’ gave 3.7 Trillion to the wealthy already! $600 for us
Pence VP leads Trump party in sedition to overthrow duly elected government
2nd impeachment bill called for: Dictators think they can do it again if not punished
Trump lieutenants freeze Defense transition to Biden gov control: sedition
Trump
cancel Iran treaty so Iran making more bombs:
Trump: cancels bias protections. cancels bird protections: revenge on American life
Trump sells our Arctic National Wildlife Refuge: Can Biden reverse this waste?
Putin: Operation Chaos worked: Trump offered Hero of the Soviet Union + 2 hotels
SCAMS/SPINS:
Dictator to GA: “I
just want to find 11,780 votes” Loser asks GA for criminal act
Thank God: our
democracy lets our Reps make fools of selves voting for loser again!
15
million doses given out but only 4.5 million used: no plan so pandemic
gets worse
FL
woman waits 19 hours for vaccine: govt
stockpiling doses
My
government has "exaggerated" the COVID-19 death toll, dictator
says. 370,000+
Trump
doubles hotel rates for Biden inauguration guests: many boycott his
properties
SCAM: 2nd
stimulus check scammer’s calls steal our info
SCAM: pharmacist
destroys our vaccine since heard DNA affected by vaccine: untrue
Dictator law: “…When
neither the
facts or the law is on your side, pound the table.”
Before
all Cabinet resigns vote 25th
Amendment removal for incompetence.
White
terrorists allowed to go home: police open fence Black
protesters arrested and shot
Biden: terrorists
not protesters; terrorists
trample police; occupy seat of power
Trump promises ‘orderly
transition’ like he did before sedition: his lies continue
Boeing pays $2.5
billion to end
criminal charges for killing 346 people in 2 crashes
William
IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.
IRS: Free special ID
protection PIN goes on your return so scammers
can’t take refund
IRS: Previous tax
returns available online: https://www.irs.gov/individuals/get-transcript
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
Biden hiring new
Who owns your account now?
Have gun for protection? Rev McWilliams was killed with own gun: killers are faster
Ohioans can now fire a gun in ‘self-defense’ anywhere they are legally allowed to be.
Congress people now carry guns around Capitol despite DC law. Visitors stay home?
New car picks for 2021: Buy right car insurance. Avoid the poor values. Poor reliability
Miracles:
Each state has own
rules/timing of vaccine: some
stand in line; some
vials wasted
People
without symptoms spread virus in more than half of cases
We are burning up
our world: 2020
hottest year on record again
Justice: Woman
accusing Black teen of stealing phone caught in CA: phone left in taxi
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/
9549013194571004364849
IAN
41 Watchung Plaza,
B242
973.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available at http://dankeppel.blogspot.com/
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