Is it possible to save $3,000 a year?
You can save $250 a month by spending a few minutes reviewing the financial products and services you currently own. The top money waster is broker-sold securities & funds. Your advisor may be charging 1-2% for fees, loads, 12b-1, transactions, custody, etc. Total costs are never shown so you must inquire and add them up. Over time, you could be paying HALF your possible accumulations to the middle persons. Other ongoing accounts try to bundle non-essential charges so you don’t notice. When you discover you are paying for life and disability insurance as part of your auto policy you can see how the savings can mount up. You have been paying for this duplicate coverage for 10, 20 maybe 30 years. Consider that in 30 years, you have paid out $99,000 for services and products you did not even know about, you may be shocked. Turn that $3,000 a year into extra retirement income for later by using a tax-FREE account from the IRS.
Avoid future taxes: https://www.amazon.com/Your-Tax-FREE-Account-IRS-approved-shelter/dp/153735292X
Drivers rate car satisfaction/reliability
Many factors go into the choice of our vehicles. Car selection depends on what you are looking for and how much you can spend. Most of us purchase another of the same brand but when things change, we can get more of what we want by comparison shopping. Thus Tesla heads the list of high satisfaction. Some brands have fallen from higher ratings: a few brands—such as Cadillac and Mercedes-Benz—are toward the bottom for both. Drivers have different expectations now: Ram trucks have scored high in comfort and electronics. The most expensive brands have less appeal: Volvo, Jaguar, Land Rover.
Make sure coverage is reliable too: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634
What is your portfolio’s Total Return?
For long-term investors, the important number is the Total Return. For equities, this number includes interest, gains and dividends which you do not need now and can reinvest. This is the number that creates the Miracle of Compounding cited by famous investors like Warren Buffett. Compounding is just your money making money on itself because you let it alone. Consider this chart of Total Return during the past 10 years: https://www.chartoftheday.com/total-return-by-asset-class. Over the past 30 years, DALBAR’s Quantitative Analysis of Investor Behavior (QAIB) shows 11% return for the S&P 500. If your advisor is managing your portfolio, the news is not great: 3.79% for the average managed equity funds. You would do better in a low-cost bond index fund with 7.36% returns. Again you need to think long-term for the money you will need in 15 or more years. For other periods of time, a low-cost 500 index fund may still put you way ahead. However, a stock index fund can go down temporarily. The smart investor uses asset matching to avoid quick decisions about what their money can do for them. A balanced fund can provide steady 7-9% total return for shorter-term needs. You avoid buying high; selling low—loses from guessing the market and excessive fees.
Take 11% not 3.79%: https://www.amazon.com/Win-Investment-War-Earn-11/dp/1522916369
Is refinancing your student loans right for you?
Rates for personal loans are low right now so you might consider this
alternative a smart move. However, the Biden
proposals to change the terms of student loans may make that a bad
decision. With the job market a challenge for any graduate and the pandemic lay
offs continuing, it may be wise to ask for a forbearance
until the decisions are made. One of the proposals would allow some students to
file bankruptcy to eliminate their student loans. Currently, this is not
allowed for most petitioners. Credit cards and other non-secured debt can be
discharged by court order depending on your ability to pay. Student loans were
more difficult to eliminate. Most are backed by a federal guarantee and
Congress did not want to encourage fraud. Some loans have already been sold to
collectors so new legislation may not solve these problem loans.
Find out where your loan stands: https://studentaid.gov/
Is a real estate index fund right for you?
This market has been depressed recently due to the pandemic. Businesses and renters have had a hard time paying the rent. The current investment returns are negative. However, with time, this situation will change and returns may revive to previous levels. Real estate offers portfolio diversification. REITs have often performed differently than stocks and bonds, so this fund may offer some diversification to a portfolio already made up of stocks and bonds. Buy this fund in a tax-deferred account. The fund may distribute dividend income higher than other funds, but it is not without risk. One of the fund’s primary risks is its narrow scope, since it invests solely within the real estate industry and may be more volatile than more broadly diversified stock funds. On the other hand, an index with low annual expense ratio could provide long term growth when stocks are depressed. A REIT strategy can help you win as a counter balance to a flat market.
Win in unfair markets: https://www.amazon.com/Money-Ball-Investing-Winning-unfair/dp/1548831409
Two big tax breaks that may be right for you
The CARES Act allowed people affected by the pandemic to withdraw up to $100,000 from their retirement accounts, including IRAs, 401(k)s, 403(b)s and others, in 2020. It also suspended the normal 10% penalty for early distributions. You pay tax on distributions as earnings over 3 years, starting this year. See rules: https://www.irs.gov/.
If you put the money back within three years of taking it, you will not owe tax on this distribution. Second: for retirees, the CARES Act also suspended required minimum distributions RMDs for 2020. You may have a larger refund since your income is reduced. And don’t forget to report your virtual currency transactions. Stimulus money is tax free and you can claim it as a refund if you didn’t get all you were owed.
Plan for larger RMD: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716
Prepare to live to age 100
More and more folks are living longer. Health and family
genes seem to determine your best guess. It is overwhelmingly
women who live to age 100. 82.5% of centenarians were white, versus 72.4%
of the total population. The majority of the oldest citizens live with others. "As
age increases, the percentage living in urban areas also increases." "There
are more resources, and there is better transportation." The Northeast
and
Make a plan: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793
Have tax forms; will file … for FREE
W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. If you have all your forms, file for FREE online. Usually filing your state return costs as little as $15 unless you buy the Pro helpline. Avoid $300-400 paid preparer fees—new IRS forms mean higher fees. Unemployment insurance is TAXABLE on the Federal income tax return; not on some state returns. Some states do not tax your SS and pension benefits. Retirees did not have to take their RMDs in 2020 so taxes may be less: it was a good time to convert IRA to Roth IRA for tax-FREE future. Unless you were self-employed, you can’t deduct home office expenses of working from home. Some states continue the health insurance mandate and penalty unless you have an exemption. Since the IRA contribution deduction has no age limit now, you may reduce your income/taxes by making a contribution of up to $7,000. The standard deduction went up to $12,400 single; $24,800 joint. Jan 15 last day to make 2020 estimated payments. You have to report your April/May and December/January stimulus payments even though they are not taxable. Some of us receive a bank credit; some a debit card; some a check. Even if you don’t have to file, you should file so scammers can’t use your SS number to mess up your IRS file. Tested E file software ratings. Efile Jan 15; IRS processing Feb 12.
E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
Which filing mistakes have you made?
Check your work before filing on the 12th, IRS first day for tax refunds. Names and SS numbers must match cards. Pick the best filing status for greatest refund. Complex math calculations can’t be done by hand since many items are interconnected. Tax credits like missed stimulus checks are paid in your refund. Your refund comes faster with direct deposit but only if you use correct routing/account numbers: First 9-digits/next group. Omit the check number. Married filers must both sign unless one spouse has a power of attorney form. ITIN must be renewed to claim credits. If your SS number has been hacked, use the IP PIN that the IRS sends you to confirm you are who you are. Your refund will be delayed if you don’t use that PIN on your return. Watch your refund credit process: https://www.irs.gov/refunds
Beware: scammers imitate IRS site to steal your data. Go through https://www.irs.gov/.
**********ACCOUNTABILITY**************
Like 1776, this
period is a test
of democracy—We
rejected an "American
fascist"
Our ‘Truth
and Reconciliation Commission’?
Most
Americans know dictator is responsible for insurrection
Dictator can incite
overthrow of government
What if it had been Obama
and BLM Jan 6?
So
much for justice in America!
How Govt wastes our money:
Many profitable corporations pay little tax: GOP tax breaks have sent our taxes overseas
We pay $519 million to restore order after dictator’s failed attempted coup: perps not pay
$1,339,079 for hospital covid treatment. How long can private health care last?
SCAMS/SPINS:
Domestic terrorist buys Mexico vacation instead of paying for Capitol damage she caused
Why the excuse “I answered the call of my president." does not work: Nuremberg Trials
Brainwashing: I
ONLY BELIEVE SOME OF QANON: DEMS BEING SATANIC PEDOPHILE CANNIBALS
Video
of insurrection in case QAnon starts claiming deep state Dems made up the
violence later
Trumpist party does not
accept 50 valid state elections: Trump
‘re-elected’ on twitter count?
Brainwashing still goes on: misleading tricks on social media, lies, false quotes, all here
Southern Baptists fear women with power: “Jezebel: amoral, wantonly sexual woman”
Do
domestic terrorists ever change their ideology? Most
think a god is on their side.
Christian
nationalist share beliefs with white nationalists: racist, bigots,
misogynists
Does
Trump acquittal mean the end of GOP or just a martyr to the sedition cult?
Trump bro Graham: 'a
place in history' “incitement
of insurrection” Pre-trial brief: 5 died
What
‘high crimes and misdemeanors’ needed for GOP to convict a GOP president?
Our domestic
terrorists called ‘militia’ but militia is
“supplement to regular army”
Our domestic
terrorists wanted to stop Biden vote and shoot
Pelosi and hang
Pence.
Our terrorists wanted
to overthrow government at the prompting of a dictator: a coup
GOP
exclude Dem voters with 160 state laws to restrict voting: plan rigged 2022
vote
Palm Beach not want Trump living there: hotel OK; home No: ‘gives beach bad name’
Rudy
Giuliani friends defrauding $2 million; fake product never sold; money
laundering
Bruce Cameron caught putting seniors at risk $30 million in energy; no RBC guidance
Robert Stewart stole $34.5 million our money promising masks: super confidence man
Stephen Moleski David Michael stole $ from clients promised investment never made
Isaiah Goodman MN caught stealing $2.25 million in Ponzi-like fraud: fake screenshots
Scam: Googling
brand-name site that is fake link eg: fake homedepot is malware link,
Scam: internet sale
of goods, romance, fake checks top list;
increased 2020
Hackers
can make water supply poisonous at keystroke: nobody watching computer
BEWARE: Trading
stocks can be dangerous: low cost means no human help
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
Employer’s tax
credit for self-employed Covid sick and family leave: file Form 7202
2 police
cracked skull pushing 75 y o protestor to ground; left bleeding and jury said
OK
Who owns your account now?
If you missed a commercial during the SuperBowl, watch here www.ispot.tv/events/
Voya
Financial Advisors to Cetera Financial
Miracles:
Your pharmacy may
have vaccine for you: cdc.gov/vaccines/covid-19/retail-pharmacy-
You
can do your taxes yourself with new software: answer questions, copy
numbers
Watching creation of
a new
political party to replace old GOP
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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