The simple but powerful investment strategy

 

Is Warren Buffett's Investment Strategy right for you?

His strategy is to Set it and Forget it. "… Our favorite holding period is FOREVER.” We manage our account only once a year! We contribute $9 a day, $250 a month:  Accumulate $55,000, $200,000, $1,000,000 over time. Also our readers use a special IRS account for Tax-FREE income. We 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. This chart gives us some idea of 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

 

 

What securities do you own for the economic recovery?

Of course no advisor or fortune teller can predict the markets in the short-term. However, it makes sense that as we recover from the pandemic layoffs, businesses will rehire and expand. Usually the stocks of companies have risen after a downturn. Looking at the big picture, we note that equities have done well over the last 10 years. The index of 500 large firms has increased since 1995. Our interest rates have remained low. It would be hard to imagine a reversal of the trend at this time. Our best strategy might be to take Warren Buffett’s advice to invest our long-term money in America’s best firms and our short-term money in government bonds. Some readers invest in a S&P 500 index for retirement and a bond index fund for the short-term. Some use a Target Date fund which automatically moves money from stocks to bonds as you get closer to retirement. Every study shows that low-cost funds beat high-cost funds in every period.

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

 

 

 

How to stop paying the taxes the wealthy avoid?

A new study shows the super rich are not disclosing their income and so avoid paying their fair share of taxes. Because Congress is dependent on them to fund their elections, our representatives don’t provide strong auditing people to the IRS. “The IRS needs a lot more resources from Congress,” said Daniel Reck, a lead author of the study, via email. He said the agency should “invest in more comprehensive examination strategies, involving audits of individuals, pass-through businesses, and other private entities (charities, trusts, etc.). It needs to hire and train large numbers of experts to conduct those more comprehensive examinations.” Congress gave most of the tax breaks to the wealthy in 2018. “Ninety of the Fortune 500 companies making billions of dollars not paying a cent in taxes.” A working person has a greater chance of being audited for $500 than the wealthy who hide $ billions overseas. In total, nearly $1 out of every $12 earned in the United States is sheltered from federal income taxes because of the sophisticated evasion techniques of people earning more than $200,000 a year. We have only one legal way to avoid paying the taxes the wealthy are avoiding. Use the IRS code to help yourself. Contribute up to $7,000 to tax-FREE account by May 17: less tax later.

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

 

The simple but powerful investment strategy

John Bogle, founder of Vanguard Group, had only 4 investment rules that became the standard of long-term investors. 1. don’t rebalance your portfolio. 2. use US market funds. 3. diversify: low-cost stock and low-cost bond funds are all you need. 4. relax: long-term investors have time to accumulate enough for retirement. Time and compounding stock returns of 10% a year create wealth. Warren Buffett recommends Vanguard funds for investors who have confidence in American companies. “My wealth has come from a combination of living in America, some lucky genes, and compound interest.”

Living well: https://www.amazon.com/Buffett-Bogle-Holy-Bible-Investment/dp/1523693045

 

 

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. 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.

 

 

 

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

 

 

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

 

 

Americans killing Americans: New gun sales at record level

 

 

Our ‘Truth and Reconciliation Commission’? 

 

 

How Govt wastes our money:

Congress cuts IRS auditors so wealthy keep $ billions we need tax for debt they made.

Biden’s $2.3 T infrastructure cost less than Trump’s $3.9 T tax cuts for the wealthy

 

91 Fortune 500 companies paid $0 taxes: average corporation paid just 8% in taxes

HALF seniors pay tax on Social Security benefits: up from 10%: rich pay less; we pay more         

 

States lifting Covid bans: cases and deaths rise 555,000+

Hospitals, even nonprofits took pandemic money for profit and dumped 1200 workers

 

SCAMS/SPINS:

Trump’s SS head refuses to let IRS send $1,400 to 30 million SS beneficiaries

Trump’s post office admin still holding up mail: Biden on the fence?

Trumpist ‘scientists’ fired from EPA: 40 industry lobbyists go back to pay to play roles

Trump sued by 2 Capitol police for causing their injuries from his domestic terrorists

 

RoboCalls rising: how to stop some unknown callers: pay to stop others using our phone

Fake IRS logo phishing scam asks all your info for “Tax Refund Payment” etc.

 

GOP to jail good Samaritans: give water to folks online is a crime: Trump got to GA gov

GOP legalizes discrimination: states make sure no Dems win ever again: Trumpist win

FL GOP copies GA voter suppression: no water within 150 feet voting. No voter fraud!

 

GA suppression laws are unconstitutional and violate the Voting Rights Act. 

China’s new law will drastically restrict the right of Hong Kongers to stand for election

 

MO to legalize vigilantes whose guns ‘belong to state’ so no registration, limits, blame

GA makes it easier to kill people in GA: Killings in spa had no effect on GOP

 

Man not guilty of rape in MN if woman has a drink: NY has same law: men made laws

Man kicks 65 year-old Asian female in street outside Brodsky condo: everyone watches

 

Toxic chemicals we use everyday: Strawberry pesticide residue

UV disinfectant wands claim more than can be proved: use wipes instead

FL bans suits against business for Covid-related deaths/infections/damage/harm: blame self

 

Wall Street shaken by collapse of hedge fund: risking more than they could afford to lose

Michael Carter VA caught making $ 6 million unauthorized transfers from clients: 5 yrs

Anthony Diaz PA caught selling $3.5 mil “low-risk guaranteed” alternatives: 17 yrs

Tom Girardi CA caught misappropriating millions in client funds, dishonesty 

Douglas Elstun MO caught overcharging clients in high-risk leveraged and inverse ETFs

 

Being evicted?: what you can do to stay off the street: ban extended to June

 

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

Reagan’s 1986 pathway to citizenship for undocumented revived: TX CA need workers

916,000 new jobs in March; manufacturing up to new high

 

Who owns your account now?

The medical gods are sometimes wrong: always get a 2^nd opinion on everything

Vaccines only good for 6 months: most of us will need booster/masks years?

 

Miracles:

Asteroid Apophis won't hit Earth for at least 100 years: Congress has time to think of fix

The Louvre just put its entire art collection online https://collections.louvre.fr/en/page/apropos

U.K.report says there’s no institutional racism  but “overt and outright racism persists in the UK” ER

 

 

 

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

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www.InsuranceAdvisorsNetwork.com

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