Where is your portfolio so far in ’21?
Some of our readers have shared their wise decisions to stick with the
indexes and low-cost mutual funds. Most use Vanguard funds and don’t trade.
They follow the 3 Bs—“Buffett, Bogle and Bible” strategy. Ask your advisor how
you did so far in 2021.
2021 Total Return Fund Long-term
Return Longevity
15.2% 500 Index 11.3%
since 1976
17.3% Energy 8.8% since 1984
15.5% Extended
Market 10.7%
since 1987
10.4% Health 16.2%
since 1984
6.3% International Growth 11.6% since 1981
17.7% PRIMECAP 14.2%
since 1984
16.4% Small Cap
Index 10.6%
since 1960
5.1%
19.6%
19.0%
14.3% Average 11.6%
*
*Average Annual Returns as of
Investing just $250 a month in the 500 Index alone can compound
(Buffett’s secret formula) to $1,000,000
in 33 years. That’s $99,000
in and $999,999 out.
https://www.amazon.com/Buffett-Bogle-Holy-Bible-Investment/dp/1523693045
How do we know our advisor is taking advantage of us?
Even the wealthiest
get taken by their “trusted” advisor. We are subject to the same bad
treatment. I follow the abuse of those who put their hard-won assets with a
paid “professional” money handler. If you don’t understand the cool-sounding
products you own or how much you paid for them, you are being abused. If you
don’t get consistent logical communication from your advisor, you are being
abused. I once told my broker to sell my investment in a fund and he ignored my
request, advising me to transfer the money to an annuity. My complaint to his
boss was ignored. I took my money elsewhere. Wall Street makes it almost
impossible to learn about the bad actors. It
is easy to get their ‘rap’ sheet of complaints wiped off the record at https://brokercheck.finra.org/. Arbitrators
in the Finra-administered forum are “rubber
stamping” expungement (delete) requests. Many brokers or their firms settle
before the hearing, thus erasing it. If you feel pushed into transactions, you
are being abused. The people who get ripped off by financial advisors are those
who do not pay attention. Ignoring the details of what you own leads to
abuse. Advisors must generate revenue to stay employed so they will interpret
your goals differently than you do. You can’t just tell them to “make money.”
https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963
Can our employer help us accumulate enough to retire?
Large employers have the ability to help us with low-cost high-return
investment options. A small biz may use an insurance agent to set up high-cost
annuities for each person. Both employers can help us grow our nest egg without
current taxes but poor and expensive options from an insurer can kill long-term
accumulation. Example: Big firms offer us 401k plans with low-cost index funds
(0.04%) that can compound
our contributions at 11% per year. After having $125 invested in a stock
index fund every 2 weeks, we can build a $1-2,000,000 retirement. Our $250 a
month goes into a tax-deferred plan so our income tax is less each year. Small
firms put us in plans with overall long-term costs of 1-2%
which can take 63% of our possible accumulation. There are better solutions
for those stuck in these plans but we must pursue them ourselves.
Use this guide: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072
Do you over think your investments?
Who are these new Wall Street gamblers? The typical soldier in the army
of retail traders upending Wall Street is a 31-year old who grabs
their smartphone seven times a day to check the assets in their first-ever
brokerage account, which may well hold a good chunk of cryptocurrencies in
addition to stocks. It is the excitement of the chase, the thrill of beating
the paid “professionals” and the fun of doing the opposite of what investment
wise men and women profess from experience. When the general stock and crypto
markets are booming, neophytes will jump at anything with a good story. Hey why
not put down some money since everyone else is. When the ‘other shoe’ drops and
markets go against these new players, who will they blame? Will these new
gamblers stay pat or run for the hills when their accounts fall. New gamblers
are not your typical ‘buy and hold’ investors so new BDs may not survive when
buying stops. Gamblers usually don’t know the time-honored “regression to the
mean” so they may be financially crippled.
Switch to the long view: https://www.amazon.com/Money-Ball-Investing-Winning-unfair-market/dp/1548831409
**********ACCOUNTABILITY**************
Like 1776, this
period is a test
of democracy—We
rejected an "American
fascist" once
Our Jan 6 ‘Truth
and Reconciliation Commission’
Trump’s Attorney
General: “Trump
bullsh*t”
Finally, Biden
fighting for voters
Too late: Supremes
decide we can’t vote anymore
How Govt wastes our money:
Pentagon tells us again “there are no UFOs”: just dirt on windshield or space garbage?
GOP says Biden does not have a done infra. deal: Congress needs another vacation?
Congress to pass Voting Rights Act II after Supremes kill 1965 law: no voter fraud now
Court: Facebook can’t be a monopoly since it already bought the competition: too late!
SD sending troops to guard Texas from Mexican invasion: GOP’s private army?
Supremes decide CA can’t see private army funders: rich hide influence in elections
Jan 6 coup attempt investigation: little GOP help unlike Benghazi terrorist attack panel
SCAMS/SPINS:
B of A Merrill took higher
fees on rollovers of unit investment trusts: fine; no jail
Crown Capital
Securities caught
selling high-fee funds; not offering others; fine $1.3 mill
Crypto
sellers take big fees: at casino, the only investment winner is the house
16
Cars That Now Cost More Used Than New: did you want chips with that order?
Phillip Conley Alpax
stole
$5 mil caught fake statements with high returns; prison
Burlington
Financial caught
offering fake debt relief credit repair stole $30 mil; no refund
Robinhood caught
giving false information misled about options: fine; $12 mil refunds
Isaiah Goodman
MoneyVerbs caught
promising “safe, secure, profitable” returns: 7 years
‘My
Book Live’ data at risk: remote deletion of hard drive by hackers
83 percent of young adults fell for scams, more
than any other age group: Facebook leads
Google
Voice Scam: typically associated with Craigslist when you sell—phone public
Amazon
Echo automatically shares your internet with neighbors: we are all
connected
CA
officials won’t travel to states that discriminate: 17
states with hate LGBTQ laws
Boy
Scouts offer insurance money to sex abuse victims: sex abusers go free;
none jailed.
J&J
caught promoting opioids in NY and world: fine; no jail: lawyers
retire on $27 mil
NC
man faked his own kidnapping to get money out of grandparents to pay drug
dealer
Agora Health publications
using deceptive
health/income claims to seniors: FTC ignored
Medicare
screens: check if you are already covered: https://www.medicare.gov/coverage
Ban on “surprise”
medical bills starts NEXT Jan: doctors
I didn’t hire bill $thousands$
Only
unvaxxed admitted hospital for Covid now: half of Americans still say no
Vaxx: “if the
government says to do something, you
need to do the opposite” Moscovite
Inspectors saw erosion from years of sea
flooding in basement car park.
Warming warning: Congress
waiting for polar ice to float into NY harbor to stop CO
Tesla
recalls 300,000 3s, Ys made in China: auto driver software fix: no backseat
driving
Passenger
jumps from plane taking off after fight: mask mandate?
Gun play now
requires insurance: rights and responsibility: pay
to play Wild West is fair
When
everyone has a gun, the heroes get shot: hero had killer’s gun so police
shot him
Trump on US: “They
want law and order”; US indicts Trump org. Trump
evades the law.
Trump tax-evasion scam:
$21
mil tax deduction for not selling his mansion’s backyard
Jobs
Surfside Mayor: “We
just need to start to get a little more lucky right now.”
FL
gov wants juveniles to pay all their lives for mistakes: no jobs, housing,
educations.
Who owns your account now?
Scotland
Yard seizes millions in crypto from money laundering operation
Are
there FREE colleges: some requirements
Miracles:
Nearly
all COVID-19 deaths now in people who weren’t vaccinated: even Trump
got vax
MIT
builds computer from molecules: almost perfected
Jonathan
Bauer jumped off bridge to save toddler who fell into bay after a
vehicle crash
Virus mutates back
in LA: Masks
required indoors
West: British
Columbia reached 121: Warming
buckles roads GOP is silent
$949 cancer test: reduce
5-year cancer mortality by about 40% prevent 100,000 deaths
We can apply for
Medicare online: https://blog.ssa.gov/apply-for-medicare-online
We can apply for
Social Security online: https://www.ssa.gov/benefits/retirement/
We can apply for
health care online: https://www.healthcare.gov/
IAN
41 Watchung Plaza,
B242
973.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available
at http://dankeppel.blogspot.com/
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