Most
employers are charging you too much for their 401k
Nearly
one-third of investors believe they do
not pay any fees or expenses at all for their investment accounts or they
don’t know how much they are paying. Thirty-seven
percent of people with a 401k told TD Ameritrade they didn’t think they paid any
fees at all. My former industry has been hiding financial advice and
product fees from us all our lives. Since employers should be helping us reach
our retirement goals (since they don’t provide pensions anymore), they should
be charging us zero. Instead they have not
made it easy to decipher 401k 403b plan documents. They are written by
legal scholars to protect employers, not help us understand how much we are
losing over time. Paying 2% in investment, plan and services fees “will
erode 63 percent of what you would have had.” Even worse, if you are using
a variable annuity, you
may be charged 7%. Small employers often use variable annuities from an
insurance agent since this costs your boss nothing. Consider low-cost
alternatives: https://www.amazon.com/Your-Pension-Box-tax-FREE-employer/dp/1481945157
How
assets build your Wealth Reserve
Over
time, using a low-cost stock mutual fund, you can create your retirement nest
egg. And if you use your IRS-approved investment account, you can spend it all without federal and state income
taxes. We call this account a Wealth Reserve because after accumulating your
assets for a number of years, you can use your reserves to save on insurance
premiums and credit card interest. Debt is the biggest wealth killer. Mortgage
debt works because it is tax-advantaged for a large asset that “grows by
itself.” We use a low-cost stock
mutual fund because we can overcome advisor fees and inflation. The Miracle
of Compounding helps us convert $250 a month, $3000 a year, into $1,000,000
in about 33 years. After 15, years you can borrow from your Wealth Reserve to
buy a used luxury car. If you make the payments back to your Wealth Reserve
instead of paying a car loan interest, you can fund a business start-up. The
sooner you begin the sooner you can accomplish all your financial goals. dalbar.com/Portals/dalbar/cache/News/PressReleases/DALBAR%20
Pinpoints%20Investor%20Pain%202015.pdf
Start your Wealth Reserve today: https://www.amazon.com/New-American-Retirement-System-Wealth-ReserveTM/dp/1461030072
Is a “direct indexing” product right for you?
A direct indexing product is a ‘low-cost’, highly
customizable, separately managed account. Your advisor personalizes your
portfolio of stocks. It attempts to replicate the performance of an index by purchasing the underlying individual equities instead of using an ETF or mutual fund.
So you are paying for each trade (500 index, for instance) instead of just
buying the low-cost no commission alternative. There are thousands of index
funds already; having your advisor re-create the wheel seems stupid and
expensive. One of the benefits, according to one money manager, is that “you
can buy part of a share that costs a lot, like Google or Amazon.” But you
can do that already via any online broker, even at Vanguard. It is difficult to
see how buying and maintaining 500 stocks individually commissioned can be
cheaper than using a mutual fund costing
0.04% like the 500 Index. One broker claims that "This concept was developed when the research showed that the active manager fails to beat the market the vast majority of the time, so
investors have a higher probability of success if they just own the index,"
according to one advocate. Tax harvesting, ethical stocks and reduced risk are
the benefits, he says. Sounds like Wall Street has come up with another trick
marketing scheme to sell managed portfolio management for a fee to ‘compete’
with simple low-cost index funds.
Use real indexing: https://www.amazon.com/Millennials-Investment-Strategy-BEST-journey/dp/1533079242
Can the stock market continue to hit new highs?
When the market produces average annual gains of 15.59%
since 2009, you must ask how much longer can this continue? The long-term
average is 10-12% depending on the period. Every honest advisor and
economist (not on TV) will admit they don’t know what will happen. So we all
face the same dilemma: hold or try to time the market. Option 1: hold
your assets where they are. This requires patience when the market goes down
and up. And ‘patience’ is what Warren Buffett advises: "The market is a way to transfer money
from the impatient to the patient." Over most periods of
time, compounding works best when you don’t trade or re-balance your
portfolio. Option 2: Trading requires that you know when the market is at a
“Know thyself:” https://www.amazon.com/Meek-Patient-Shall-Inherit-Earth/dp/1492869538
**********ACCOUNTABILITY**************
Like 1776, this
period is a test
of democracy—We
rejected an "American
fascist" once
Our Jan 6 ‘Truth
and Reconciliation Commission’
Terrorist
gets 8 months for coup attempt
GOP
big lie: Trump ‘won’: repeat repeat repeat: new “TRUTH”
How Govt wastes our money:
Gov
spyware for terrorists put on phones of reporters, human rights, execs, pols,
officers
“From a dozen
countries, you can spy on the rest of the world.” Gov
buys info on anyone.
Millionaire
GOP drops IRS audit funding bill: wealthy
free to hide income; we pay more
Jeff uses his tax
avoidance for $5.5
Billion ride: Amazon
pays 0% tax; we pay 32.9%
How
a society treats its elderly tells you all you need to know about its human
values
Biden
lets Trumpist Wilbur Ross escape after lying to Congress: Biden’s wrong
message
Judge
halts Arkansas ban on abortions: “imminent threat” to women constitutional
rights
SCAMS/SPINS:
We
train assassins for the world: we
help nations kill people
Terrorists
go to the game; to
the fire; Some
terrorists named heroes.
Texas
stops teaching that Ku Klux Klan was morally wrong: racist culture in TX
Jeff
could have paid a bonus for every unvax person to get the vax: we all live
longer
Trump told America
Covid was hoax but got
vax himself: now
½ of us on death watch
Covid cases
rose 140% in the past two weeks: our health going in wrong direction
Year late, McConnell
urges vax after watches 610,000 die: too little too late Mr Hannity
Covid
carrier boards plane as woman in ni·qab so he can fly: easier to get vax?
LA: On Wednesday,
2,551 new infections were recorded among non-vac people
Crypto market Binance
has no complaint center so buyer beware: FTC can’t help you
Same price but get less:
downsizing raises
profits/CEO pay or just raise
prices for CEO $
Scammers keep our
scam money: Supremes
vote against recovery: where is Congress?
Rental car scams:
demand high; supply low: prices rise. Beware low price
scammers.
MoneyGram
scam refunds: 300,000 complaints to FTC.
Food
package dates: we waste more food than the world combined.
UBS caught
selling inappropriate funds: ETP linked to short-term market
volatility: fine
BlackRock
managers take $4.82 billion from higher fees from 15% market gain: no sweat
Joy and Brent Kovar caught
stealing from 277 clients: offering “massive returns” crypto
Jobs
Fake job scams have skyrocketed: check
sent to set up is fake so they can empty account
Since July 2009, when the $7.25
minimum went into effect, it has lost 18% of its value
NFL
requires vax so some players may quit: $ millions at stake: hurting teammates?
Who owns your account now?
Your iphone is vulnerable despite Apple claims: “hacked multiple times with Pegasus”
Retirement plan business of Prudential Financial to Empower Retirement
Medicare cost and payment problems: report shows areas of concern
Miracles:
Court
rules kids in US can buy and use guns: “teens used to serve in militias in
1791”
Fire
so overwhelming it’s creating its own weather: OR burns area larger than LA
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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