Your Unbiased Advisor: April 2021

Friday, April 30, 2021

Do you really need an advisor?

In the 12 months through Friday, the S&P 500 stock market index returned more than 50%, including dividends. From the market’s low point in March 2020 through Friday, it returned more than 80%. Between March 18, 2020, and April 12, 2021, the collective wealth of American billionaires increased from $2.95 trillion to $4.56 trillion, a 55% leap. This increase was NOT from savvy trading by financial advisors. Warren Buffett, one of the most successful investors, gives credit to compounding: “My wealth has come from a combination of living in America, some lucky genes, and compound interest.” Compounding is money earning money on its earnings over time. We can reach $1,000,000 by investing our money in businesses sharing profits with us over time. A special IRS account, available to most working Americans, makes our money tax-FREE. Tax-FREE is like a $300,000 bonus—We avoid paying taxes— federal and state income taxes on our earnings when we take them. Buffett shows us how to invest fee-FREE too. Set up your tax- and fee-FREE accounts in 1 hour. He recommends holding a low-cost S&P stock fund: 9% a year 1971-2020 and 12.36% per year if you compound reinvested dividends.

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

Estimate how much income you will have in the future

Many of us start to worry about having enough income in retirement to see us through the final 30-40 years. A financial planner can run an analysis for a one-time fee so you have a better idea of your income and expenses once you hit pre-retirement years. In the analysis, an advisor uses software that takes into account how much you will earn on your money and how much inflation will reduce your buying power. You can do this analysis yourself with an online calculator called Monte Carlo simulation. So for instance, Vanguard’s Nest Egg Calc can let you adjust income, expenses and portfolio to target: https://retirementplans.vanguard.com/VGApp/pe/pubeducation/calculators/ RetirementNestEggCalc.jsf. By playing with the level of stocks, bonds, and cash you can optimize your chances of having enough money for 30 to 50 years of income. Thus we found that over 65% stocks provided us with 91% probability of having enough income for 30 years. Usually, advisors tell us to sell stocks and buy bonds in retirement. When you do this in 100,000 simulations, you only have 58% chance of having enough for 30 years. That is because over time, bonds lose to inflation and we are living longer.

Plan to have enough: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793

Can Biden’s capital gains tax increase hurt you?

Biden wants to actually pay for his spending for infrastructure needs, something republicans did not do for their 2017-18 tax breaks for the wealthy: “Tax reform that rewards work and not wealth.” He would raise the corporate tax rate from 21 percent to 28 percent, implement a minimum corporate tax, nearly double taxes on investment gains for the wealthiest and tweak inheritance laws. Most corporations pay no taxes now. Many receive our taxes as refunds. When the wealthy sell their investment gains, they pay a rate HALF the rate we pay on our wages. Trump’s inheritance tax rate allows families to create tax-FREE family dynasties of $23 millions. Biden’s tax increases are targeted at the top 0.3 percent of taxpayers. Those folks have increased their wealth by 55% during the pandemic when many lost their jobs. When the wealthy sell their assets, they pay only 20% tax while we pay 33% total tax on wages. Thus billionaires like Warren Buffett pay only 17% of their income versus 33% for his staff. Many billionaires agree this is not a fair system. Since the wealthy and corporations have more than enough capital to increase production, Biden’s tax increases will not hurt our economy. The increases will fix our failing bridges and roads; thus allowing business to expand in the future. Is it not better for those who can afford it to pay for improvements than those who need the jobs from the structural improvements? His plan may actually help us pay our tax bills.

Tax shelter for workers: https://www.amazon.com/Tax-Shelter-Young-Americans/dp/1500426520

Now that I can trade at little cost; should I?

Wall Street has always been the lure of quick get rich strategies. But do they work? Insiders are usually the most successful at fast trades since they have information we don’t have. The most famous are Congress people who do it legally and Martha Stewart who got caught and went to jail. Congress people use info from secret meetings to get away with insider trading legally. Most amateurs who trade lose money. Despite free trades, most will still lose money since they must be right twice—buying and selling on time. To be successful, you must know enough about the stocks you buy that your purchase can still overcome the hurdle of random price movements. Recently, Gamestop price rose quickly because bloggers promoted it to offset large investors who bet on its decline. So unless you have access to secret insider information, fast trading is a myth. Warren Buffett, one of the most successful company analysts, advises the opposite: "Our Favorite Holding Period Is Forever." Trading stocks may kill the powerful effect of compounding. He recommends holding a low-cost S&P stock fund: 9% a year 1971-2020 and 12.36% per year if you compound dividends by reinvesting them. Check the years you have invested: http://www.moneychimp.com/features/market_cagr.htm.

Listen to Buffett not your advisor: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

Is it time to fear the effects of inflation?

Advisors are trying to look smart about inflation. Sure gas prices have risen but we are not commuting as much. Sure some food/staples prices have risen. However, just because the gov is printing more money to keep people alive who still have no work, that is no reason to panic. Besides, advisors don’t have the answer. Alternative investment vehicles have their downsides. Bonds are not a good choice at this time. Gambling on cyber that have no fundamental value is OK for the wealthy but we can’t buy groceries or pay the rent/mortgage. Inflation is often a valid risk when everyone has extra money and is chasing fewer goods. Most working people don’t have extra cash to pay for stuff they don’t need. Keep an eye on mortgage rates to learn when inflation becomes a worry. Most investors maintain a broad comprehensive portfolio since no one knows what will happen in the future. It is hard to prepare if you don’t know what to prepare for.

Use wise advisors: https://www.amazon.com/Buffett-Bogle-Holy-Bible-Investment/dp/1523693045/

Make your retirement income tax-FREE

Working people can save and invest in an IRS-approved Tax Haven. Deposit up to $7,000 per year in your choice of investment options so that when you retire or need emergency funds, you pay no state or federal income tax. Almost all financial firms offer this account so you have your choice of the fee structure and type of securities. Compare the Best firm choice for your tax-FREE Roth IRA. If your employer does not offer a Roth 401k, you can set up automatic contributions from your account. Since you pay no tax on this income, you may reduce your income tax from other retirement income sources like Social Security. SS benefits can be taxed up to 85% when you begin taking withdrawals.

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

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.

Stimulus 3? https://www.irs.gov/coronavirus/third-economic-impact-payment

Estimated tax payments are still due April 15. If you are self-employed or do not have enough withheld from a paycheck, pension or Social Security, you may have to send quarterly payments to the IRS. Tax returns for 2020 are due May 17 not April 15 but the estimated tax payments are still required on schedule.

IRS will redo your taxes and send refund if you paid tax on Unemployment 2020 or you paid ObamaCare’s excess advance premium tax credit repayment.

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. If you already filed and paid tax on your unemployment income, IRS says it will send you a refund of the tax automatically. DO NOT FILE an amended return to obtain a refund on this tax. 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. You can deduct as medical expense all Covid prevention supplies. 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

What to do if you can’t pay by May 17?

Avoid the penalty for not paying estimated tax. Ask for an automatic extension to file till October. If that does not work for you, you can apply for a payment plan. An individual can setup an IRS installment plan if you owe $50,000 or less and can pay back the amount owed in 3 years. If you are a business owner, you can setup an installment plan if you owe $25,000 or less. The IRS will charge a one-time fee of $105.

If you own less than $25,000 and can pay the amount owed within six years, ask the IRS for a streamlined payment agreement. The IRS will charge a one-time fee of $102.

Request an Offer in Compromise if you cannot pay the total amount owed. This allows you to settle your tax debt for less than the total amount owed if you will be unable to pay back the total amount owed within 10 years. The IRS will charge a one-time fee of $150. Given the pandemic economic hardship, apply for the extension to file now: https://www.irs.gov/pub/irs-pdf/f4868.pdf

Special circumstances help: call the IRS Taxpayer Advocate Service 1-877-777-4778 for free assistance.

More ways: https://www.irs.gov/newsroom/heres-how-people-can-pay-their-federal-taxes

IRS has $1.3 billion refunds for 2017 tax returns

Unclaimed income tax refunds worth more than $1.3 billion await an estimated 1.3 million taxpayers who did not file a 2017 return, according to the IRS. “Time is quickly running out for these taxpayers. There’s only a three-year window to claim these refunds, and the window closes on May 17.” If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. Filing instructions are available on the IRS.gov Forms and Publications page or 800-829-3676.

You have 17 days to collect your cash!

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

Like 1776, this period is a test of democracy—We rejected an "American fascist"

First Trump terrorist found guilty

Where ‘Truth and Reconciliation Commission’?

How Govt wastes our money:

Dick Cheney insisted 20 years ago, “Ronald Reagan proved deficits don’t matter.”

GOP concerned about spending on working people: Trump tax breaks were no sweat

GOP still trying to lock people they don’t like out of voting opportunities

GOP still suing to overturn election in AZ: voter audit firm unknown Ninjas

$5 billion two new Air Force One jetliners: bigger fridge costs extra?

SCAMS/SPINS:

Catholic Church bans Biden from taking Host: public political ‘excommunication’?

Pope sets indulgence limit: 2-yr report tax havens, money-laundering, tax evasion

GOP: no ‘easy’ voting. Only rich who can afford to take weekday off can vote

Masks forever? GOP questions getting vax for all: pandemics kill 675,000

Giuliani search for proof illegally lobbied Trump for Ukraine’s wealthiest

NY Post fires reporter for fake GOP story on VP’s kids book: immigrants suffer again

FoxNews asks public to call cops on parents who’s kids wear masks in park ??

AL bans certain athletes because of sex: GOP not ban abuse of minors

Supremes give scammers green light: “keep money scammed” FTC can’t order refunds

Fake check scam: check must clear before it is real: mystery shopper scam

Fake vax cards: FBI warns sellers it’s illegal: FL won’t accept any card

Phone scam: fake gov official hits 90 year old for $32 million on bum rap

Supremes decide if you can carry loaded gun anywhere in America: shootings easier?

Judge hides vid of cops killing of unarmed NC Black person: shot in back of head

Fake claim by GOP: Biden to ban red meat in US: Fox admits it lied

TX adds 2 more House Reps: Immigration has its upside for GOP!

Fake: Antifascists blamed for MN church fire: easy to stir hate

Fake study: No, masks do not cause deaths: No, vax not cause disease or alter DNA.

Avoid cars with the worst crash outcomes: small cars killed by large cars

Debt collectors can’t do that to you: fight with your rights: family debt isn’t yours

Nationstar Mortgage d/b/a Mr. Cooper caught double debit for mortgage payments

Nationwide Equities caught misled consumers about reverse mortgage, fees and costs

Advisors use ‘client’? testimonials to boost sales: ‘I loved her annuity, you will too’

Peter Quartararo Paul Casella NY caught stealing $436,000 promised pre-IPO Peloton

Eric Meiggs MA caught stealing $530,000 in cryptocurrency by hacking phones

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

New Supreme Barrett already has $2 million book advance and job for life: Sweet!

Ford, GM still have no chips to make cars: thousands out of work made in America?

26 well-paying jobs; work from anywhere

Part-time jobs till you find work

Hybrid remote employers are hiring in these professions

Who owns your account now?

CR tests of TV quality vs price: size matters

Earth has shifted on its axis Michael Caine movie enactment of future?

Lowest cost car insurance firms for experienced drivers: Ask for discounts

Miracles:

Grow your produce on your house’s outside walls? Vertical farm kits not yet ready.

Medicare covers limited time in rehab facilities but not cosmetic surgery. Fine!

Without the movie, Chauvin would have been back on the streets kicking ass.

CDC rolling back the use of masks in outdoor settings if have 2nd vax: Covid spreaders?

Biden’s wealth gains tax ‘devastate’ hedge funds: wealthy get special treatment now!

Teaching kids to ‘handle’ a gun: “fun to hold it/point it”: male bonding? Baseball?

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

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

Friday, April 23, 2021

Make Warren Buffett your investment advisor

What type of portfolio to use for retirement income?

Most retail advisors have provided us with a formula for retirement income that insists on a high percentage of bonds and fixed income products like annuities. This old story has been updated by Warren Buffett’s advice. Today we have available a special computer analysis that helps us decide for ourselves. If you are near or in retirement, you need to use a nest egg calculator (‘Monte Carlo’ simulation) like the one from Vanguard: https://retirementplans.vanguard.com/VGApp/pe/pubeducation/calculators/RetirementNestEggCalc.jsf

By playing with the level of stocks, bonds, and cash you can optimize your chances of having enough money for 30 to 50 years of income. Thus we found that over 65% stocks provided us with 91% probability of having enough income for 30 years. Usually, advisors tell us to sell stocks and buy bonds in the reverse percentages: 65-80% bonds. When you do this in 100,000 simulations, you only have 58% chance of making it for 30 years. That is because over time, bonds lose to inflation. Let your winners run.

Listen to Buffett not your advisor: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

How to avoid being fooled by your advisor

Madoff tricked thousands into giving him their life savings. To prove his worthiness, he sent new investor money to old investors. None of his investors objected. Madoff took the Ponzi concept to extremes nobody had previously thought possible: $65 Billion. The key principles that allowed him to get away with what he did for so long: Fake statements look real and speedy refunds. Long-term steady returns are not what stock markets are known for. His very consistency eventually became statistically impossible to believe, but each individual year, in itself, was perfectly plausible. His sales strategy was what conservatives wanted for their money. His service was cloaked in exclusivity and secrecy: the ‘elect’ do not complain; they feel special. His explanation of success was vague. Madoff deliberately targeted charities and his own religious groups. Many of his ‘friends’ were cheated. Madoff ran his own brokerage firm. He was chairman of Nasdaq, a self-regulating organization. Since nothing has changed legally, there are Ponzi schemes going on right now. I find them every week (see below).

Buffett recommends Vanguard: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

Make Warren Buffett your investment advisor

Warren Buffett is your investment advisor—without the fees! The greatest investor of our time with a proven record of $101 BILLIONS, Buffett has provided FREE lessons and guidance for many years. We were just NOT listening. His comments and letters to shareholders since 1977 are FREE. He has explained not only the management of his fund; he has taught us how to invest and provided guidance on the trends of the times. http://www.berkshirehathaway.com/letters/letters.html He has explained why we should NOT follow the advice of Wall Street. He has told us how to be successful investors. He has explained how to turn $9 a day into $1,000,000 over time. He told us the KEY to investment success is COMPOUNDING. “My wealth has come from a combination of living in America, some lucky genes, and compound interest.” Compounding is money earning money on its earnings when it is invested. We can reach $1,000,000 by investing our money in businesses sharing profits with us over time. A special account, available to most working Americans, makes our money tax-FREE. Tax-FREE is like a $300,000 bonus—We avoid paying taxes— federal and state income taxes on our earnings when we take them. Buffett shows us how to invest fee-FREE too. Set up your tax- and fee-FREE accounts in 1 hour.

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

Two Americas: millions lost their jobs and billionaires’ wealth rose 55%

Between March 18, 2020, and April 12, 2021, the collective wealth of American billionaires increased from $2.95 trillion to $4.56 trillion, a 55% leap. “Billionaires have been running up the score on average Americans for decades.” All of the productivity increases of American workers have turned into extra profits for the owners. Salaries of company exec used to be 20 times average wages. Now they are 386 times the average wages. CEO compensation has grown 940% since 1978 while typical worker compensation has risen only 12% during that time. Unskilled working people have few alternatives to being pushed into poverty. Most of us don’t know how to use the tax system to succeed in this economy. However, there are steps we can take to make our lives better financially.

Use your tax credits: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

Why is there a waiting line to buy life insurance now?

Pandemic buyers were reminded of their mortality is one reason. Survivors of Covid have had their apps postponed especially older adults. But older adults also pay more for their coverage so it pays to consider your options. If you need to cover the cost of a funeral, you may be able to pre-pay with a reputable business. If you need basic coverage, there are small amounts available without medical tests. Policies that provide higher amounts for heirs or business buyouts need to be shopped since rates differ greatly. You may find it more convenient to use an aggregator selling multiple policies in your state. If you have other assets—IRAs, pensions, or endowments, you may not need more coverage. Check the current beneficiary designations to make sure your assets are left to the right loved ones. Many firms offer life insurance to retirees at high cost. This may be called group life conversions. There are other options.

Shop around: https://www.amazon.com/Life-Insurance-Need-Save-right/dp/1480002178/

What are the “safe investments” in retirement?

Some media writers boast about “safe investments” for your retirement money. Don’t be fooled. There are no investments without negative possibilities. First rule for any investor: there are no “safe” investments. 1. Municipal bonds may be tax-FREE but they can raise overall taxes. They also provide little protection from inflation. 2. Peer-to-peer lending may earn more than bank CDs but you can lose your money or earn less than advertised (as I did). 3. Annuities are useful in that the monthly amount paid is guaranteed by an insurer. However, as your expenses rise, the monthly check remains the same and your heirs get nothing if you die early. There are better ways to assure income for life. 4. Treasury inflation-protected securities provide some protection but with low payouts, you can’t live on the interest from TIPS. 5. Rental real estate is less “safe” than stocks. “You can turn any property into an investment that will provide income for years to come.” I tried this for years and you must give up income when tenants default and when repairs and maintenance are required unless you can do it all yourself. Live close! 6. Taking SS at age 70. It is tough to beat an inflation-adjusted monthly payment that is good for life and backed by the government. Few people can afford to wait to age 70 and fewer can stretch the enhanced payments to cover all expenses. Finally, you must plan out your income strategy in retirement. You will have more income by avoiding your high-cost advisor.

Plan wisely: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

How can we protect ourselves from money scams?

Scams to induce us to give our hard-earned cash to others are on the increase. Technology has made it easier and safer than holding a gun to our heads in the parking lot. So we have to learn how to protect ourselves in new ways. First, most scammers are coming to you via phone and computer. Few use a letter or personal visit. Scammers are avoided by not responding to un-initiated contacts—no matter what they say or look like. Scammers wear ‘disguises’: they fake a logo from banks, IRS, FBI, Amazon, Microsoft, your local advisor’s firm. I get offers for money and computer, tax and legal help every day. I did not initiate any of them. No govt agency calls you about arrest warrants for you or your relatives, SS benefits or taxes. Unless you gave your info to the caller, how’d they get your info except by theft. Before responding to any contact, do your Google search: Scam: ‘I can fix your computer for $300” AARP.org/aboutFWN shows real scams. Giving scammers access to computer to steal your money: watch real scam office. The most difficult scams to detect are from those we trust with our money. Most people are losing $3,000 a year to sellers who have earned our trust. Sales people win your trust so you will feel comfortable giving them your money when you don’t need to.

Beware ‘trust’ scams: https://www.amazon.com/Money-Scams-2014-insurance-financial/dp/1505437962

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.

Stimulus 3? https://www.irs.gov/coronavirus/third-economic-impact-payment

IRS will redo your taxes and send refund if you paid tax on Unemployment 2020 or you paid ObamaCare’s excess advance premium tax credit repayment.

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

E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

What to do if you can’t pay by May 17?

If you own less than $25,000 and can pay the amount owed within six years, ask the IRS for a streamlined payment agreement. The IRS will charge a one-time fee of $102.

Special circumstances help: call the IRS Taxpayer Advocate Service 1-877-777-4778 for free assistance.

More ways: https://www.irs.gov/newsroom/heres-how-people-can-pay-their-federal-taxes

IRS has $1.3 billion refunds for 2017 tax returns

You have 30 days to collect your cash!

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

Like 1776, this period is a test of democracy—We rejected an "American fascist"

Do police have a license to kill?

FL drivers get OK to run over protesters

Where ‘Truth and Reconciliation Commission’?

How Govt wastes our money:

We paid the bill to clean up after polluters fouled our country: will polluters get re-bill

Congress makes sure Puerto Rico helps wealthy avoid taxes: it will never be a state

GOP raises taxes quietly in FL: if we shop online, we pay $1 billion

SCAMS/SPINS:

GOP votes against equal pay: keep women earning 82 cents per male $1.00 for same job.

Trumpists post white supremacist policy list: European ancestry values

Trump’s lieutenant Roger Stone doesn’t pay his taxes either: hide income in fake biz

Capitol police told to track anti-Trump protesters ONLY: let terrorists attack Congress

Trumpists get big rewards for denying democratic way: “only fair if GOP wins”

Trumpist Hawley OK with hate crimes: sole GOP vote NO to bill

Scam: ‘I can fix your computer for $300” AARP.org/aboutFWN shows real scams.

SCAM: Giving scammers access to computer: steal your money: watch scam office

Eddy Blizzard MD caught stealing $1 million with blank checks faked signature.

Christopher Lee Hibbard KY caught stealing barred from any financial sales activity

Douglas MacKinnon caught avoiding debts gave $1.6 million home to his wife/daughter

Mobile speed test: use FCC download tester to verify “you get what you pay for”

Mass killings: more guns than people: easy way to confirm manhood/revenge/score/hate.

Congress ignores gun killings: Supremes’ ruling protects police: shoot first, ask later

Tesla driverless will kill automatically: in TX dark, Tesla can’t ‘see’ the tree on curve?

Instead of getting protection of vaccine, some buy fake card to infect co-workers $9.49

Fake info used to create buz for certain people: it is easy to mislead us

Covid deaths 575,000; 1918 pandemic 675,000: 40% won’t get vax--we learned nothing?

Scams made just for us: 10 best ‘selling’ ways modern thieves work today

Danger: walking in front of Tesla can kill you: no driver; no sensors; no stopping

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

25 high pay jobs to reach for the future: plus machines can’t replace skilled trades!

The top 15 career fields — ranked by average national salary:

20 jobs part time any age work can do it temporarily

Who owns your account now?

Biden reverses orders that boosted fossil gas/extraction on public lands and waters

SS benefits can be reduced when you work BEFORE your “full retirement age”

Need moving expenses? Some states pay to move there for a time.

Flood insurance: private policies might be cheaper in low-risk areas: exceptions

RIA custody business of Morgan Stanley to Axos Financial

Miracles:

Older adults "prediabetes" usually DO NOT go on to develop full-blown diabetes WOW!

Vaccine can save you but masks can save others: virus requires us to care for each other

ObamaCare coverage repayments cancelled: you do not have to pay IRS back

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

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

Friday, April 16, 2021

Which type of broker/advisor is best for you?

Can I use my Roth IRA as my emergency fund?

Sure—you already paid tax on the money you contributed to a Roth IRA. However, there are a few rules to follow. When you withdrawal Roth IRA funds for an emergency or any expense, take the “contributions” first. Your custodian usually has a record of what you put in versus what that money has earned. Contributions can’t be taxed again and there is no penalty even if you are under 59.5 years old. If you are older, there is no tax either. Make sure you tell the custodian that you plan to put the money back in 60 days so they code the withdrawal properly. You are allowed only one rollover per year. Logically, you want to keep your Roth IRA emergency money in a money-market fund. However, many folks begin making contributions to a balanced (stocks and bonds) fund so they can build up the amount over time. Periodically move money to a Roth IRA MMF. When you need funds, make sure the money can be transferred to your bank account quickly. Do NOT let them take taxes out—you paid taxes on this money already. Don’t let them cut a check that you won't get for weeks—they like to hold the cash in their account as long as possible. You can even use this fund to pay no taxes later in retirement.

Build your tax-FREE account: https://www.amazon.com/Your-ZERO-Tax-Account-Wealthy/dp/1482772795

Which type of broker/advisor is best for you?

If we could know the future, this would be an easy decision. Bernie Madoff just died but his fraud is a lesson. Madoff pleaded guilty to 11 crimes: defrauded as many as 37,000 people in 136 countries over four decades. Mr Madoff was chairman of one of Wall Street’s regulators at one time. His investors gave him tons of money to invest because he promised to do his best and his creds were above many other advisors. Each week I document the many scammers in my old industry. There is no guarantee for investors. As a broker dealer manager, I saw how good well-meaning sales people can veer into trouble. Why? There are few safeguards in money-handling sales. The product is invisible. One is the designation called CFP. CERTIFIED FINANCIAL PLANNER™ Like a lawyer, they work for fees not commissions. The other way to help you avoid a Madoff type scam is to use a fee-only securities provider. Vanguard Group offers products via a unique corporate structure: We investors actually own the funds we invest in. There is no middle person/firm to take profits. Vanguard has salaried non-commission licensed “crew members” to help us. And Warren Buffett, one of the greatest investors, recommends Vanguard Funds. Use a less biased advisor without an incentive to steal.

Make Buffett be your advisor: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

We don’t have to pay off the $1 Trillion in taxes that the wealthy owe

The actual annual tax gap possibly exceeds $1 trillion per year, IRS Commissioner Charles Rettig told senators Tuesday. You and I know why the Congress does not do anything about it. Congress receives funds from the wealthy that let them hide their money from the rules that we must follow. We can’t afford to hire lawyers and accountants to set up offshore and intricate legal entities to obscure income. Remember how President Trump boasted that he doesn’t pay taxes because he is ‘smart’. Actually his staff is paid to hide his income. Since we only have one year available to see how he does it, we know one method—use the paper losses of a business to write off personal income. In the 1995 return he claims a loss of almost $1 billion: we taxpayers owed him a refund for many future years of his personal income. For the wealthy, even the ones that don’t hide income, the rules allow them to pay about HALF the rate we pay. Warren Buffett explains that he pays only 17.7%; HALF the 33% his staff pays. We have two ways to avoid paying for the national debt that the rich have run up. ONE: we start by using a business to cover some expenses and let the loss offset our income. TWO: we produce income inside a tax-FREE account. We produce tax-FREE income legally.

Start today: https://www.amazon.com/Tax-Free-Living-2012-strategies-build/dp/1477452702/

Is there a correct number of stocks to own?

Sure! Just one if you were Apple’s Steve Jobs or Microsoft’s Bill Gates or Amazon’s Jeff Bezos.

But most of us including Warren Buffett can’t know which stock will be the top grossing stocks of all time. So here is the answer as explained by Mr Buffett and his partner Mr Munger:

We like to put a lot of money in things that we feel strongly about. And that gets back to the diversification question. You know, we think diversification is - as practiced generally - makes very little sense for anyone that knows what they're doing. Diversification is a protection against ignorance. For most of us who know we do not know how to analyze businesses, we buy everything—an index of the top 500 stocks. If you know how to analyze businesses and value businesses, it's crazy to own 50 stocks or 40 stocks or 30 stocks, probably, because there aren't that many wonderful businesses that are understandable to a single human being, in all likelihood.

Charlie Munger said: The first rule of compounding: Never interrupt it unnecessarily.

If an initially very concentrated portfolio is likely to turn into an unbearably concentrated portfolio after a few years, then it's not really built with the long term in mind. So if you are clear on what you DO NOT KNOW, compound the index for 11%.

Buffett strategy: https://www.amazon.com/MasterClass-Buffetts-SIMPLE-Strategy/dp/1983485268

Which market sector will provide the best returns in the future?

Since we can’t know what is ahead and we can’t assume the future is determined by the past, which sector are you betting on? ETFs have become the broker/advisor security of choice so that they can trade every day. However, most serious investors know that fast trading prevents you from enjoying multiple-year compounding and dividends. So which one do you favor for the future? Energy is the current leader but can it return 30% in the next few years. Or will it fall out of favor like consumer staples? Unless you know your business sector well or have Mr Buffett’s talent for analyzing large companies, you may be better off skipping your broker/advisor’s recommendations and just holding a low-cost index of large or small, growth or value stocks. Actually the most popular choice is the large company stock index. John Bogle, founder of Vanguard Group, created the simple 500 index fund because his research showed it was better for us to avoid trading by expensive stock pickers. Investing does not have to be complicated.

Simple wins: https://www.amazon.com/Buffett-Bogle-Holy-Bible-Investment/dp/1523693045

How to “guarantee” a tax-FREE retirement income

Put your investing on automatic. Use Buffett's Investment Strategy: Set it and Forget it "… our favorite holding period is FOREVER.” Manage the account only once a year! Contribute $9 a day, $250 a month. Accumulate $55,000, $200,000, $1,000,000 over time. Use a special IRS account for Tax-FREE income. Use only low-cost high-return mutual funds. Warren Buffett's Investing Strategy is buy and hold FOREVER high earning companies. This allows compounding to work. Compounding is money earning money on its earnings when it is invested. Invest your money in businesses sharing profits with you and over time you can reach $1,000,000. A special account makes it tax-FREE. Tax-FREE is like a $300,000 bonus. When we invest in successful businesses, we can earn 10% to 12% a year. After 10 years, we can have $55,000 because the businesses paid dividends and we reinvested them. After 20 years, we could have $200,000 and after 33 years, perhaps $1,000,000. Over time, stocks are safer than bank CDs because we earn more than inflation subtracts. We have more buying power. Compounding works best when we put our money to work in successful businesses paying us dividends and stock splits. When we use a low-cost AND tax-FREE account, we avoid fees and taxes so we keep more of our money to compound. See how fast our investment can grow if we invest it in businesses like the ones we use every day.

https://www.amazon.com/Warren-Buffetts-Investment-Strategy-Forget/dp/1484822900

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.

IRS will redo your taxes and send refund if you paid tax on Unemployment 2020 or you paid ObamaCare’s excess advance premium tax credit repayment.

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

E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

What to do if you can’t pay by May 17?

If you own less than $25,000 and can pay the amount owed within six years, ask the IRS for a streamlined payment agreement. The IRS will charge a one-time fee of $102.

Special circumstances help: call the IRS Taxpayer Advocate Service 1-877-777-4778 for free assistance.

More ways: https://www.irs.gov/newsroom/heres-how-people-can-pay-their-federal-taxes

IRS has $1.3 billion refunds for 2017 tax returns

You have 45 days to collect your cash!

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

Like 1776, this period is a test of democracy—We rejected an "American fascist"

Swing state GOP laws limit Dem voting: “only way to win”

Will the ‘militia’ (terrorists) try another coup?

1/6/21 Coup: “quick reaction force” with weapons ready

Trump delayed helping: Capitol Police died

Where ‘Truth and Reconciliation Commission’?

How Govt wastes our money: