Friday, March 26, 2021

Reader’s choice investment for 2021

 

Do you feel you should be doing something with your investments now?

All the things I hear and read say our economy is bursting out of a depression from millions of folks being out of work and out of money. The Fed controls the money supply and they don't see inflation. It is still supporting business by buying their bonds--giving them money to survive and expand. When you begin flying again, so will everyone else. The hospitality biz will explode with all that pent up demand from lockdowns. Authors are selling books on the fear of a bubble. No one knows the future. Readers expect the market will go down and up in the next few years, but unless you plan on taking out all your money now so you can go live on an island in the Pacific, what do you care? Let's say it goes down by 10% for a couple of years. You will need your money for another 20 years. So it will grow back and give you even more for the 10 years hence. Don't worry about the market. Look at the big picture: click 'max'

https://www.google.com/search?q=vanguard+500+index+fund+graph&rlz=1C1CHBF_enUS899US899&oq=vanguard+500+in&aqs=chrome.8.0j69i57j0l8.23884j0j15&sourceid=chrome&ie=UTF-8 If you are age 65-85 I would suggest you still keep 50% in stocks because you don't know how long you will live and still need more money. IF inflation was 7%+, then you might be better off in CDs paying 8% but that won't happen anytime soon. When you start to worry about a market ‘bubble’, go back to the chart above and think what you would do if you sold at the bottom of the 'V' of Mar-Apr last year. By Sept you are back on track. If you had sold then, you would have kicked yourself from missing a jump of 50%--212 to 320 by Sept. 

Ignore the fortune tellers: https://www.amazon.com/Money-Ball-Investing-Winning-unfair-market/dp/1548831409

 

How much do you have to save/invest for solid retirement income?

Myth: you only need to save “10 times your income” to retire. This is a true and a false statement. When you start investing, type of investments and how long you let your money grow are the important factors. Readers have started investing with $250 a month by age 25 ($99,000 total) and end up with $ millions in retirement. It is possible to invest only 10 times your income but that assumes you invest in stocks early in life. Saving for retirement with bank CDs will cost you a lot more than 10 times income. Folks who start at age 55 will need to invest much more than 10 times income. Use this calculator to see how much you will accumulate in 20 or 30 years at 2% from CDs vs 10% from stocks: http://www.moneychimp.com/calculator/compound_interest_calculator.htm. $99,000 grows to $600,000. It is compound interest that makes you rich. And don’t forget taxes. Saving in your employer plan is tax-deferred not tax-FREE so you may pay 12% or 22% on your money along with up to 85% of your SS benefits.

Invest tax-FREE: https://www.amazon.com/Millionaire-Mutual-Funds-Save-taxes/dp/1534939490/

 

Reader’s choice investment for 2021

As we climb out of this economic and social malaise, our readers are eager to get on with their money goals. Managing money goals has been difficult. Some have had to take money out of their savings to live on. Some have had to stop saving entirely—there was no money left after expenses. Some employers stopped matching savings or paying a bonus that went to savings. Now readers are more cautious and need to make sure that their saving/investing Dollar will be effective. It is time to go back to basics: a broad mutual fund with both stocks and bonds provides growth and protection from market correction. And because taxes are likely to go up, a low-cost tax FREE account provides another layer of protection. An employer Roth 401k or personal Roth IRA with a low-cost “balanced” fund fills the need. Your best deal may be the Vanguard Roth IRA with Target Date 2055 fund. With 0.15% expenses and $1,000 minimum, you keep more of your earnings than if you paid someone 1-2% each year. You would earn over 11% over time instead of 9% from an advisor. You don’t need a money manager to rebalance your portfolio from stocks to bonds for retirement income. Start income anytime.

It is automatic… and tax FREE: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

 

Is living on your investment income right for you?

What happens when you retire early and live on your investment income? You can spend much of it extravagantly or try to beat the market with one “future” Apple or Amazon super stock purchase. But like most lottery winners, you might lose most of your retirement nest egg in a few years. Inexperience with money makes people think they are invincible. Readers who grew their $1 million retirement fund by investing systematically every paycheck look at money differently. They appreciate the freedom it gives them to live on their interest and dividend without worrying about tomorrow. This is what many do: most years their low-cost diversified stock and bond portfolio (balanced funds) produces over 10%. They pay all their expenses from the SS benefits and pensions they receive. That 10% or $100,000 income supplements other activities like travel, gifting, business, family. A well diversified portfolio of funds has provided many readers with over 11% per year. Readers use the annual earnings over $100,000 (11-31%) to build a Wealth Reserve. Any year they earn under $100,000, they cut spending or they sell a few securities. They use their Wealth Reserve to buy cars, vacations, whatever they want.

Build a Wealth Reserve: https://www.amazon.com/Your-Wealth-Reserve-Save-year/dp/107028288X

 

Is a non-traded REIT (real estate investment trust) right for you? 

This security is useful to folks who want to diversity their holdings into real estate over the long haul but it is not guaranteed. It comes in 2 flavors—private and public. Public shares of these securities are sold by a manager for a fee. Their value and dividend yield doesn't fluctuate daily with the stock market. Non-traded REITs typically have long holding periods. So it's much harder to cash in these non-traded ones than the traded version. The fees can add up too. Non-traded REITs have historically charged investors an upfront fee of as much as 5% of their initial investment. It may take a long time to offset the original and annual fees to the manager who get paid from the revenue BEFORE you do. If the shares you buy own poorly-run or highly-mortgaged commercial buildings, you may earn less than a bank CD. You have no control over the manager’s asset choices. Managers often boast of returns higher than the stock market index so examine the period they chose in the offer. See returns since 2001.

Pick better diversity: https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373

 

 

How insurers calculate your auto premium

Insurance companies make money two ways: earnings from your premiums and NOT paying excessive claims. Wise investing means matching their liabilities to their assets. They know how much they will pay in claims each year and invest enough in short term instruments to match. They don’t lose money if they insure only good drivers. Good drivers don’t take risks: good credit scores usually match good neighborhoods and better jobs, males have more accidents especially if they are single and older folks have more to lose than the “invincible” young. If you enjoy speeding and driving to your favorite watering hole, you might have to pay more. Some insurers think they understand some drivers better than others so they lower their premiums: GEICO, AARP, AAA is anexample. You have to shop every 5 years to learn which insurer is best for you.

Shop and save: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

 

Avoid future taxes like the wealthy are doing now

Accountants and advisors to the rich are preparing their clients for a tax increase. We can avoid taxes too. Even though we don’t have the resources to go off shore, there are ways to save on future tax liabilities that don’t cost a fortune. The 2017 Tax Cuts and Jobs Act isn’t set to expire until 2026, but lawmakers may opt to hike taxes sooner. The current political climate is forcing high-net-worth folks to hedge against rising taxes—now. For high earners, the two most common strategies are investing in Roth 401(k)s and Roth conversions and investing in managed portfolios in health savings accounts (HSAs). The wealthy are also using ‘overfunded’ life insurance. In addition to providing tax-FREE growth, policies can be structured to offer policyholders the option to buy property, cars, and other large purchases from themselves while retaining unlimited access to policy principal. You can have the best of both worlds too.

Start now: https://www.amazon.com/Tax-Advantaged-Wealth-mutual-funds-Tax-FREE/dp/1481215906

 

Is your advisor “shrinking to grow”; dropping you?

Advisors are canceling accounts and that could mean you. The best advisors make more working with their most wealthy clients ONLY. If your advisor is leaving their big firm to start their own, they many not want you with them. Unless you have a lucrative pay package for your person, you may be left with the old firm or left out in the cold. Instead of paying another unknown asset manipulator, ask yourself what you really need. You may be better off using a low touch, low cost online Robo. In the last decade, Schwab and Fidelity have slimmed down because most people don’t need a full service provider. You may be better off at Vanguard, where you can get help whenever you ask for it for 1/4th the cost. Some of my AARP tax aide clients have brand-name firm accounts that charge $ hundreds to provide nothing more than dividends and tax-advantaged mutual fund reports. Paying $200 for a broker to sell a few shares for a $20 gain is a waste of money. The client did not know why the sale took place but they had to pay tax on the transaction.

Low cost beats high cost every time: https://www.amazon.com/Lies-Financial-Advisors-Told-me-better-alternatives/dp/1478281545

 

 

Where is that refund?

The Internal Revenue Service today reminds taxpayers that the most convenient way to check on a tax refund is by using the “Where’s My Refund?” tool at IRS.gov or through the IRS2Go Mobile App.

Where is the stimulus 1 or 2? If you did not receive stimulus 1 or 2, start filing here: https://www.irs.gov/newsroom/recovery-rebate-credit

 

Have tax forms; will file … for FREE but WAIT . . .

If you have unemployment income, ObamaCare coverage you should wait to file since the IRS has not yet implemented tax-FREE provisions of the new Covid law. Taxes due MAY 17 not April 15. Input the W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. forms you have. You can file for FREE online. If you didn’t receive a correct form, file a Form 4852.  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

 

 

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

 

 

Like 1776, this period is a test of democracyWe rejected an "American fascist" 

 

Trumpists limit Black/Hispanic voting

 

Our ‘Truth and Reconciliation Commission’? 

 

 

How Govt wastes our money:

Trump avoids taxes by $21 million deduction on his NY ‘forest’: we pay 33% he pays 0

Biden’s tax planners must end deficit spending: Trumpists’ tax breaks dig deeper hole

Wealthy broke IRS audit code: rich underreport their income far beyond what is known 

 

Congress takes 2 weeks at taxpayers’ expense but they don’t ban guns of war on people

We buy more vaccine but 40% don’t want it: WHY: 550,000 dead already. Still Hoax?

State GOP building walls against American voters to assure Trumpists win 2022, 2024

 

SCAMS/SPINS:

The greatest enablers of these domestic terrorist enemies’ are within Congress

GOP allows our stimulus money to be taken by bill collectors: industry lobby pays them

AVOID TX:  FBI concern that radical ideologies are going mainstream in North Texas

 

QAnon now pushes alarming conspiracy myths targeting China and Jewish people

 

Mormon Church caught fraud: used donation to run businesses: tax exempt jeopardy

 

Ronald Stevenson Jason Wootten caught Ponzi in EquiAlt 100+ investors: class-action

UBS questioned by court: helping clients launder funds via numbered accounts/trusts?

Stein, Corey Agee caught tax fraud: over-valued land deducted as conserved; Trump tried

 

John Spiller Jakob Mears caught billion Robocalls sell fake health insurance: fine, no jail

DNA tests like palm-reading: you can read anything into what they find

TV antenna fakes caught promising cable channels: no free lunch

 

USC to pay $1.1 billion to former patients of campus gynecologist George Tyndall

Gwyneth Paltrow’s health remedies claims under attack: NOT inflammation treatments

UV Sanitizer USA NOT sanitizes and protection against the coronavirus in secords

 

Supplements do NOT “the best treatment for depression, anxiety and stress

Covid mutants may keep us in masks for years: new normal?

Good News: 70 percent of adults age 65 or older have received at least one dose

 

CA bans misleading adverts that divert us from content to sale w/o explanation

Video fakes change our perceptions: Biden not pretending to be president

CO shooter used an Automatic Rifle: kills 10 in secords: gun totters can’t draw faster

 

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

IRS tips to avoid scams: https://www.irs.gov/newsroom/tax-scams-consumer-alerts

 

Is it a scam?  Check AARP scamline 877.908.3360. BBB Scam tracker

 

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

Find tax preparer: https://www.irs.gov/tax-professionals/choosing-a-tax-professional

 

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

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

 

Jobs

Job scams: Before submitting an application, verify there is really an offer: Never SS#

 

Who owns your account now?

BEWARE: trusting media gurus or “successful” financial advisors can be dangerous

 

Miracles:

Asian woman, 75, beats back man who punched her: turn other cheek to racism?

Science: we do not know what 95% of the Universe is made of: new particles found?

Earth just missed meteor crush: we are lucky to be alive today

 

summer has increased by 17 days on average across the globe: soon, hot half a year

 

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

MontclairNJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

 

 

Friday, March 19, 2021

Is a tax increase right for you?

 

Which type of financial person can actually help you?

Like doctors, financial professional have specialties. So your wire house broker can’t fix your tax situation. Most retail financial people can’t help you with a comprehensive plan. Planners usually don’t live on product sales. They charge a fixed amount for creating a plan for your specific future. We paid a planner a set fee in 2018 to assure us that our future retirement would provide all we might need. We received a plan that included annual income and expenses, a “What If Worksheet,” the likelihood of funding all our goals and a portfolio evaluation with net worth estimates. With 2 live sessions, this review helped us see the big picture even though I had a pretty good idea of our future situation. As a manager in a few financial firms, I had seen all kinds of financial professionals. To find someone who can provide the best unbiased advice for your specific situation, you need to understand your situation. If you are a good saver/investor, a stock picker can’t help you. By this I mean that most working people already have what they need: a low-cost stock/bond mutual fund inside a tax-advantaged account. A 401k with an employer match or self-directed IRA or Roth IRA is the best you can get. For most working people who want a secure retirement, the smart play is a low-cost Target Date fund. This is what Warren Buffett, a master investor, recommends. His advice is unbiased and fee free. A low-cost fund assures you that you keep more of what you earn.

Make Warren Buffett your advisor: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

 

Do you have to take money out of your retirement fund this year?

IRS reminds us to restore our Required Minimum Distributions plan this year.

Individuals who reached 70 ½ in 2019 or earlier, did not have an RMD due for 2020. For 2021, they will have an RMD due by Dec. 31, 2021. Individuals who did not reach age 70 ½ in 2019 will reach age 72 in 2021 will have their first RMD due by April 1, 2022, and their second RMD due by Dec. 31, 2022. To avoid having both amounts included in their income for the same year, the taxpayer can make the first withdrawal by Dec. 31, 2021, instead of waiting until April 1, 2022. After the first year, all RMDs must be made by Dec. 31.

Though the April 1 deadline for taking the first RMD is mandatory for all owners of traditional IRAs, participants in workplace retirement plans who are still working usually can, if their plan allows, wait until April 1 of the year after they retire to start receiving distributions from these plans. Individuals who reached age 70 ½ before 2020 and were still employed, but terminated employment in 2020, would normally have a 2020 RMD due by April 1, 2021 from their workplace retirement plan. This RMD is also waived as part of the CARES Act relief.

Employees of public schools and certain tax-exempt organizations should check with their employer, plan administrator or provider to see how to treat these accruals.

Spending plan for RMD: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

 

 

What would our pay be if it matched our productivity rise since 1970s?

$22.14 would be the hourly wage if we were paid based on what we produce. Productivity increased 239% since 1950—automation and information technology created the modern working environment. Word processors and copiers replaced typewriters and carbon paper copies and mimeo machines. During the 1970s businesses stopped raising our pay and took more profits for owners. Union membership collapsed and business processes were simplified so that almost anyone could do the job: almost anyone can make a car since the hard parts like welding are done by machine. Home repair plumbers have to make individual parts fit exactly just like a lawyer has to make the wording fit exactly so they earn $60,000 plus and have a comfortable retirement. Both can increase earnings over time based on skills. For most factory workers doing repetitive work, the top incomes hit $40,000. There is little chance of increasing earnings over time. Union workers make more than non union so Amazon is currently fighting its warehouse workers. It takes two: both of us have to work full time to secure retirement income.

We must keep more of what we earn: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072

 

Is a tax increase right for you?

If you are a working person and most of your income is reported on a W-2, you already pay over 33% in taxes. Most millionaires pay less than 18% according to billionaire Warren Buffett. GOP Mitt Romney pays 13%. John Kerry pays just 12% most years. Most wealthy people have the money to pay less by using tax havens or deducting expenses in a business. Biden has promised to pay for the pandemic and Trump tax cuts with new taxes on the wealthy earning over $400,000. Unfortunately, most middle class Americans support giving the wealthy all the financial breaks. The wealthy claim, through their representatives in Congress, that Democrats only want to ‘tax and spend’. However, Republicans passed Trump’s tax break for the rich and their corporations. They called it a “middle-class tax break” but that was a lie. The wealthy have increased their assets during the pandemic because our government has provided a safety net to the stock market. So for the rich, their stock market assets have increased over 31% in the last year; 16.8% annually over the last 5 years and 13.4% over the last 10 years. At minimum they have doubled their money every 5 years--$100 M, $200 M, $400 M. Private profits; socialized losses. Taxes are supposed to go up when incomes go up. Just the reverse.

We need a tax increase: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

 

Where is that refund?

The Internal Revenue Service today reminds taxpayers that the most convenient way to check on a tax refund is by using the “Where’s My Refund?” tool at IRS.gov or through the IRS2Go Mobile App.

Where is the stimulus 1 or 2: If you did not receive stimulus 1 or 2, start filing here: https://www.irs.gov/newsroom/recovery-rebate-credit

 

 

Have tax forms; will file … for FREE but WAIT . . .

If you have unemployment income, ObamaCare coverage you should wait to file since the IRS has not yet implemented tax-FREE provisions of the new Covid law. Taxes due MAY 17 not April 15. Input the W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. forms you have. You can file for FREE online. If you didn’t receive a correct form, file a Form 4852.  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

 

 

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

 

 

Like 1776, this period is a test of democracyWe rejected an "American fascist" 

 

White Supremacist admitted killing

 

Two terrorists killed Capitol policeman

 

Our ‘Truth and Reconciliation Commission’? 

 

 

How Govt wastes our money:

Credit Suisse caught again helping wealthy avoid fair share of tax: can we stop cheats?

Executives Took Huge Chunk of Trump Tax Cuts: GOP: “already done enough aid

IRS & most tax prep software still taxing unemployment & ObamaCare paybacks

 

We paid the employer portion of unemployment comp instead of Uber, Lyft, et al. 

Trump must pay for Trump’s suits to reverse elections: Judge in AZ says: 50 states to go

40% health care workers not vaccinated: get covid from your clinic, hospital, Dr office?

 

SCAMS/SPINS:

Keep masks: Vaccination doesn’t stop every infection: you can get it & pass it to others

TX MS FL Non maskers can push deaths to 550,000: vaccines/masks stop variants spread

How did 17 yr old Kyle get an Automatic Rifle to kill people? Any kid can buy a killer?

 

Wealthy make a fortune on TX tragedy: made $100 million selling power to have-nots

 

Ford recalls 2.9 million vehicles for shrapnel in driver-side airbag.

Credit card interest rate reduction scams, new account & account takeover scam: more

Marketing inducements are fake: only 3 left; countdown clock; sale ends now; etc

 

1 Global Capital Dantins caught stealing $24 million by selling securities illegally

 

For-profit colleges like Corinthian, ITT Technical caught; student loans discharged

Student Loan Pro caught charging illegal upfront fees to file paperwork for debt relief

 

Facebook fake posts: so easy to be mislead: must check facts https://www.snopes.com/

Fake news by some sick twit regarding Oprah, Hopkins, ballots, etc. easily deceived?

33% of GOP will not take vaccine + 20% say not sure: no masks, no vaccine, no normal

 

GOP states cancel health benefits for poor: 1.4 million in TX could receive health care

Sen Johnson says not afraid of White terrorists: Ron, Terrorist kill white folks

 

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

IRS tips to avoid scams: https://www.irs.gov/newsroom/tax-scams-consumer-alerts

 

Is it a scam?  Check AARP scamline 877.908.3360. BBB Scam tracker

 

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

Find tax preparer: https://www.irs.gov/tax-professionals/choosing-a-tax-professional

 

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

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

 

Jobs

Before you take a job in a flood zone, check out the future: glaciers are melting

 

Who owns your account now?

Refinance: is now the time before rates move above 3%: 6% normal; 3% inflation

Customers Happier With Property Claims if Digital Process Unbroken: send pic, get $

 

 

Miracles:

There is hope for all our ailments sometime in the future: Amazing re-grow a body!

$1,400 into your bank account by April 1: checks take longer: non-filers tell IRS address

Local religious groups pay off $3 million in medical debt: insurance not enough

 

Someone paid $69 million for digital file: you can’t hold it but I guess you can sell it

Get all of your stimulus: online calculator gives a number to expect for 3rd stimulus

 

 

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

MontclairNJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

 

 

Friday, March 12, 2021

How the media distorts the laws of investing

 

Is the new $1,400 stimulus right for you?

The cut-taxes for rich and cut-benefits-for poor Trumpists have limited the stimulus recipients and cut fed unemployment from $400 to $300. Manchin D-WV did not want to give his folks an extra $100. However, Dems got to eliminate some income from taxation: $10,200 unemployment NOT taxable. Some states, including Maryland, Delaware and Arkansas, have already enacted policies to exempt unemployment benefits from state income tax. The bad part of this is that some Dems want to be deficit hawks. Fearing giving people too much money to get the economy going, they limit the stimulus to earned income under $75,000 and $150,000. The Child Tax Credit was increased for 2021 but again for fewer families. Result: taxpayers with large families who earn about $150,000 ($75K per spouse) can experience a marginal tax rate in excess of 100%. Since most Congress people are millionaires or more, they can’t understand why people would need more income at a time when there are fewer jobs. As anti- and pro-Trump McConnell said, “people won’t work if they receive a one time stimulus of $1,400.” You know, when Trumpists take off their masks, they get weird ideas. McConnell’s wife, former head of Transportation was using her $50/hour office staff to do personal shopping/errands. Yet her family was against $15/hr wage. Go figure!

Stimulus law: The American Rescue Plan Act which is now going through the legislative process includes a provision to forgive any Advanced Premium Tax Credit repayments for 2020. This is the ObamaCare subsidy you may receive to help pay for health insurance. Biden promises bank credits by April 1. Checks take longer. If IRS does not have your bank account, you may have to open an IRS account.

Our form of socialism: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

 

How the media distorts the laws of investing

Headline: Elon Musk lost $27 billion last week

This fake news leads many savers to give up trying to save for retirement. Many working people don’t invest in the stock market because they read this headline and fear equity investing. Instead, they buy only bank CDs or other fixed income tools. They earn 1-2% and so their retirement money never grows to provide a reasonable retirement income. If compounding was taught in high school, more working people would invest in stocks. If students and adults saw this graph or read this chart, they would know how to build a comfortable retirement. Mr Musk did NOT lose $27 billion last week. He did not lose a cent because he did not sell his stock. It is TIME not fast trading that builds wealth. Example: one of my family members pays his advisor 1.5% a year to ‘invest’ his life savings for him. He adds: “I don’t want to lose money.” So his advisor buys fixed income products paying 1-2%. Then he complains to me that his funds never grow very much. The advisor tried to explain that even bonds can lose money. Response: I don’t want to lose money. This is all I have.” Media distorts: Today Mr Musk ‘made’ $25 billion. No he didn’t. The price of stocks fluctuates but over time total value doubles every 7-8 yrs.

Make Warren Buffett your advisor: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

 

Two Americas: while shops small biz close, rich get richer

40% of upper-income adults said their financial situation improved in the past year, compared to one-third of lower income counterparts who said their finances worsened. Pew Research shows the rich added to their assets since they couldn’t spend as much and they use Compound Interest. Employment losses concentrated in lower-paying, lower-skilled jobs that were non-essential and couldn’t be done from home, such as in some food services jobs and hospitality. Women have also been more likely to suffer job loss and financial hardship during the pandemic; women, adults aged 18-29 and lower-income workers were more likely than other groups to have taken unpaid time off in the last year. Of course those who need to build savings and retirement income funds have had to stop, pitching them deeper into the financial hole. Climb out with a tax-FREE account.

https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

 

 

Is taking control your own pension right for you?

Some Retirees Get Only 30% of the Pensions They Earned Despite Federal Guarantee. Shocking: Small employers typically cannot afford a separate pension plan so they band together to administer a group plan. However, smaller firms are more likely to underfund and/or go bankrupt so there are fewer funds left to pay employees who have earned their pension. Most pensions are guaranteed by the Feds but at much less than the original expected value. The COVID-19 Relief Bill May Fix That. Today, more than 10 million workers participate in multi-employer plans, with about 1.3 million in plans that are fast running out of cash. Only those plans that are in critical condition will receive cash infusions, giving managers an expected 30 years to put the plans back on solid financial footings. The Labor Department defines critical plans as those that are expected to run out of money in 20 years or less. This strategy requires the employers to reimburse the RBGC for their employees’ pensions. Some firms may decline. Workers may have to go back to work since their pensions may be less than $11,000. SS benefits are also due to be cut by Congress by 2034.

Use an IRS Tax-Free account: https://www.amazon.com/Forget-Social-Security-Medicare-Lifestyle/dp/1466394285

 

 

Is avoiding the 2020 401k withdrawal tax and penalty right for you?

The CARES Act waived that penalty for up to $100,000 in withdrawals. Plus, the income tax on this money could be spread over a three-year period. You could put the money back (rollover) that money over a three-year period without any tax penalty. The IRS provides clear answers to questions related to this in its CARES Act FAQ. Since this could get complicated (along with other tax changes) you might want to pay the $300-$500 for someone to do it right. Be careful. Not all the kicks have been ironed yet. The IRS has not finalized the forms for these new strategies yet. You may want to take the extension and pay what you think you owe before April 15, just in case. You might need the extension but the IRS wants their money now. If they owe you, you are just losing interest for 6 months. Don’t consider the ‘file and amend’ strategy. The IRS still hasn’t opened the mail from 2019 returns.

Future income can be tax FREE: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976/

 

Have tax forms; will file … for FREE but WAIT . . .

If you have unemployment income, ObamaCare coverage you should wait to file since the IRS has not yet implemented tax-FREE provisions of the new Covid law. Input the W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. forms you have. You can file for FREE online. If you didn’t receive a correct form, file a Form 4852.  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

 

 

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

 

 

Like 1776, this period is a test of democracyWe rejected an "American fascist" 

 

White Supremacist admitted killing

 

FBI: 2 Terrorists ID on Finnish website

 

Our ‘Truth and Reconciliation Commission’? 

 

 

How Govt wastes our money:

8 Dems think we can live on $7.25/hr: Taxpayers must subsidize folks at $7.25/hr to live

Supremes still giving Trumpists chance to overthrow our government: wasted taxes

$1.7 TRILLION for broken jets: not a dime more for job seekers: GOP votes down folks

 

All agree: kids should be in school: how safe are rooms built w/o ventilation in ‘30-40s?

 

SCAMS/SPINS:

Terrorist leading Jan 6 coup attempt claims our justice system is “not fair.”

The hunt for all the terrorists in the attempted coup: which killed Capital police?

Trump sued for Jan 6 “injury destruction”: drain wallet to stop further incitements

 

More choice: Biden Republicans: Not Trumpists not Dems: RINOs?

GOP/Trumpists trying to exclude Dem voters so they can win: GOP hates fair elections

State GOP make laws reduce voting access just like China new vote law for Hong Kong

 

GOP makes it a crime to distribute food and water to voters waiting in line: Deperate!

Trump has already requested a mail ballot: GOP make rule: Dems can’t do the same.

Trump demands Trumpists remember Trump created the Covid vaccines for Trumpists!

 

Trump cancels Republicans from his GOP: “You’re fired from GOP, you RINO”

Trump wants fees for name use: GOP can’t use name for donations; he wants the money

Old GOP party can’t make it without Trump: Trumpists will pay his debts not GOP

 

Trump is trumped by one of his trumped-up tax tricks: same law that got Al Capone

 

Mistakes in credit reports: denial of credit, housing or employment” Bureau ignores fix

LOOK OUT: Advisors/brokers get to use “testimonials” May 4: McAfee is example

John McAfee caught fraud, money laundering; promote cryptocurrencies w/o disclosure

 

Charity Fraud Telefunding closed: fake charity calls: one down; hundreds to go

Fake news is easy to make and share: check sources: remember pizzagate murder attempt

Get rich quick schemes prays on out of work: Mary K takes your money before you sell

 

Oportun a small-dollar lender caught suing borrowers w/o proper disclosures

 

What is a living wage? $7.25 requires our survival help: SNAP, CTC, EIC

 

BEWARE: Visit no Covid regs states at your own risk: Map of states to avoid

Biden disses Neanderthals: insult our ancestors in comment on TX MS

Is racism learned or are we born with it? Dr Seuss book teaches kids who is scary

 

Kyle admits killing but says not white supremacist: Supremacist lawyer sues Biden

TX MS no masks policy leads to more deaths: 570,000 by April 1?

TX power system can’t upgrade for cold weather: biggest cooperative bankrupt; owes $$

Car insurers caught withholding refunds for less driving: GEICO raised my rate instead. 

Which insurers give you the best rate: get 3 estimates since average is NOT your need.

 

Restaurants saved: Insurers fear business interruption claims must be paid: Covid closure

Finally, colonoscopy really FREE even if they remove polyp: no surprise $ 200 charge

 

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

IRS tips to avoid scams: https://www.irs.gov/newsroom/tax-scams-consumer-alerts

 

Is it a scam?  Check AARP scamline 877.908.3360. BBB Scam tracker

 

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

Find tax preparer: https://www.irs.gov/tax-professionals/choosing-a-tax-professional

 

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

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

 

Jobs

Graham just wants to win with or without Trumpism: say whatever you want to hear

More GOP/Trumpists quit: 20 GOP seats are up in 2022; 5 of them will be open ones.

Can Trumpists pay off The Leader’s debts: $1 Billion before back taxes: His buildings

 

H1B Lottery today, doling out immigration visas for foreign workers for 2022

Get vaccine in CA by volunteering: Stop waiting for your turn.

Computer artist sells collage for $69,346,250: cut paste digital NFT based artwork.

 

Who owns your account now?

Don’t make your family go through all this: Aretha left no will, no 2 wills, big tax bill

Toyota Land Cruiser is engineered to last at least 25 years: more 200K mile bargains

Homeowners insurance claim satisfaction ratings: MetLife down to Homesite

 

JPMorganChase will discontinue its Chase Pay digital wallet 3/31

 

Miracles:

Kane Tanaka age 118 plans to open Olympics in Japan: who said you’re too old?

20% of asymptomatic people who test positive for COVID-19 won't get ill

Alzheimer’s pill could stop disease in its tracks, human trials to start

 

63% of those who prefer crunchy peanut butter describe themselves as optimists

Too much money; too few brains: $14,000 for Britney’s bubble gum. Really!

Afghan woman minister leads the reforming of police: overcoming male rules

 

Extension of mortgage Forbearance and Foreclosure Protections 

Most parents will get checks July-Dec for $250 to $350 per child. Your tax credit

 

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

MontclairNJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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