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/

 

 

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