How does the cost of financial services cut our nest egg in HALF?
You may have read that brokerage costs can cut your eventual retirement fund by 63%. One of the reasons John Bogle founded low-cost Vanguard Group was his insight that cost is an important factor in our long-term financial benefits. Compare your ultimate retirement income when using high cost investing. Vanguard’s 500 Index tracks the top 500 stocks at $4 per $10,000. Over time you earn the market rate of 11% not 3.79% for a managed equity account. Fidelity did a study of its accounts and found that the ones that did best were those NOT managed by Fidelity. The clients had either forgotten their money or died. Many studies have shown that low-cost beats high-cost in every period and every asset class. An index fund of a broad spectrum of stocks provides our best chance of adequate retirement needs. A typical investor funds their IRA or other tax-deferred or tax-FREE plan with $250 a month for 40 years. The 0.04% index produces $2.1 million; the 0.20% index produces $1.1 million. The average advisor-managed fund produces about $281,342. Clearly, paying less for the long-term stock market return of 11% is better than using an advisor. And no advisor has been able to beat the market over any 40 years of investing. You keep more of your money: advisors don’t need any more!
Pay less; get more: https://www.amazon.com/Pay-less-Get-more-investment/dp/1500598321
We don’t have to pay income taxes on SS benefits any more
Most people have built their retirement plan at work with a 401k or 403b or IRA account. These accounts help us by delaying taxes on the money we contribute. They assume that we will pay fewer income taxes when we retire without other taxable income. Many people have this kind of situation. Most working people receive Social Security benefits without paying income tax since their pension money supplements their benefits. However, SS benefits are taxable if we work in retirement or have funded our pension plan consistently well. Thus any couple with total income above $44,000 will pay taxes on some of the SS benefits: Up to 85% of your benefits may be taxable. Since 1997, we have been able to fund our retirement income without any taxes. It’s totally tax-FREE—no tax on retirement income; no tax on SS benefits. We avoid taxes like the rich.
Spend all your money: https://www.amazon.com/Millionaire-Mutual-Funds-Save-taxes/dp/1534939490
How can we avoid paying the taxes that the rich don’t pay?
Most wealthy people pay a lower rate of tax than we do.
Warren Buffett admitted he pays only 17.7% compared with his secretary and
staff who pay an average of 32.9%. We pay almost DOUBLE what the wealthy pay,
if they pay at all. As the GOP candidate boasted in 2016, Trump pays NOTHING—zero
income taxes. Most corporations don’t pay taxes either—many
corporations get us to pay them a tax refund due to their bad management.
Because the wealthy pay a lower income tax rate or disguise
income as corporate non-income, they have taken more of the country’s
wealth than ever before. Compared to 1983, we have lost almost 8% of the total
Avoid paying their taxes: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072
Why You Still Can’t
Trust Your Financial Adviser
Unfortunately, Biden has not re-authorized the Fiduciary Rule finalized under Obama and originally set to take effect in 2017. The Fiduciary Rule means that product sellers must provide the best choice for our interests not theirs. This rule is followed by a few financial sellers called Registered Investment Advisors and some fee-only certified financial planners (CFP). Why is this rule necessary? Researchers conducting a study sent “mystery shoppers” into 284 Boston-area financial advisers. When clients walked in with the kind of low-cost, diversified portfolio unbiased independent experts recommend, only 2.4 percent of advisers approved of it and some 85 percent recommended making a change. Financial advisers were eight times more supportive if clients had a less-than-ideal strategy of chasing returns—one that was more likely to generate commissions. Your broker/advisor and their firm rely on commissions and fees to make selling profitable. Most do not operate like a lawyer in charging a set fee for an agreed upon service. Most sellers rely on us paying an ongoing fee of 1-2% per year no matter what the outcome of their advice. It’s the perfect business—for them; not us.
https://www.amazon.com/Wall-Street-Cleans-Up-Advisors/dp/1517043255
Where to invest if you can’t contribute to an IRA?
For retirees who no longer have “earned” income, there is no way to add savings to tax-deferred or tax-FREE accounts. However, your profit from a small business qualifies for many plans including a tax-FREE Roth IRA. There may be other ways to qualify. For some of us who have extra funds to invest, there are several attractive options. We can buy individual stocks that do not increase our taxes. Stocks without dividends means there are no taxes on income or gains until we sell. Of course, we need to have a low-cost brokerage account and have some idea of the value of the company we are buying. I use my Vanguard brokerage account to buy Warren Buffett’s well-diversified company Berkshire Hathaway. I am buying a stock that owns a railroad, insurers, candy, cement, airline, credit cards, etc etc. I don’t pay income taxes when I sell. I usually pay nothing on capital gains but some may pay 15%. There are many stocks that do not pay a dividend—usually using profits to grow the business. Amazon is a good example.
Go Tax-FREE: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976
Is your advisor’s advice costing you $ thousands?
Schwab reports its robo portfolio of 10% cash has costs you $1.13 billion in total earnings. Plus the management fee (.30%) would have resulted in $531 million in lost earning to you. Advisors get paid for losing you money: a great deal for advisors but not for you. Schwab has been cutting staff to gain revenue during this time of transition to absorb TD Ameritrade. Perhaps it is time to evaluate your portfolio advisor billed as a robo. There are better alternatives. You can pay less; earn more for later.
Better Robos: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957
**********ACCOUNTABILITY**************
Like 1776, this
period is a test
of democracy—We
rejected an "American
fascist" once
Our Jan 6 ‘Truth
and Reconciliation Commission’
Judge: you
“can’t replace [democracy] with the will of the mob."
Trump coup
failed: we
pay his $500 million repair bill?
How Govt wastes our money:
Biden
reverses promise to cut subsidy to coal: gives subsidy to profit Arch Resources
Biden
approving hundreds of requests to drill on federal land: not what he
promised
Biden extending the pause
on federal student loan payments Sept thru Jan
GOP
insider steals password to CO voting machines: Trump win at any cost
Only
2 Senators to repeal tax break carried interest: fund managers pay lower
tax rates
2 Dems ask Gov how
rich “legal tax loopholes avoid paying their fair share of taxes.”
Wealthy
who don’t pay their fair share of taxes are
against helping us thrive
46 GOP senators warn
that they will not lift debt ceiling: America
won’t pay its bills
Millionaire
Congress voted for all the Trump tax cuts and loopholes in 2017
SCAMS/SPINS:
Some states hide
Covid infection rates: misinformation kills 620,000: more than wars
Biden
blamed for Covid ‘explosion’ in FL: immigrants have lower rates than TX
folk
LA state officials
conflicting advice on masks:
Vaccine
for pregnant women: CDC makes it official
TX
covid patents admitted to ‘tents’ near hospitals: buy
oxygen now before Gov bans!
80
kids exposed first day school: parent child tested positive Covid test:
Freedom to kill?
Taliban is committed to their ideology like anti-vaxxers committed to theirs? Not give up
FL
hospitals do NOT require staff to get vax so get your vax BEFORE you go to
surgery
Tucker
tells employees to sue employer is vax mandate but Tucker
got his vax last year.
Pentagon orders all
military personnel to get the COVID-19 vaccine: bold step for safety
TX
bans masks to fight Covid but recruiting more health care workers worldwide
FL
bans masks to fight Covid and will cut pay if school staff allows masks
FL
requests hundreds of ventilators from feds: no mask-school kids
fills hospitals
NY AG: Cuomo
hid Covid deaths to make himself look hero: ignored deaths in hospital
TX
GOP will arrest Dem representatives to suppress voters: Fascism Texas style
Recall
2 million dehumidifiers, many brands, overheat and start fires
14 Most Deadly Car
Models: Subcompact cars and sports cars
Used
car prices have risen 45% over 12 months: new $42,000
Evarist Amah misled
clients about how their $700,000 in Grail investments fared.
Regulators
get tough with brokerage re: funds for client treated badly by brokers
Trump’s
post office head giving own biz $120 million leg up: USPS service decline
Zuck
employs religious practices to cement Facebook interactions and profits
What is shooting
yourselves in the feet? Jeopardy
execs not naming LaVar host
QAnon
ideolog kills his 2 kids bec/ they will be monsters who will destroy world
Jobs
High
pay jobs with 2 year certificate: medical specialist high pay
Target
will pay for college at certain schools: work and study to go forward
Export drugs to Mexico: we
are now selling weed not smuggling across border
This is a first: The US has 10
million job openings
Who owns your account now?
JD Power rates Rocket Mortgage top dog again: great personal experience
JD Power rates Vehicle Insurance top dogs by regions
JD Power rates Pharmacy Study top is not chain but local Good Neighbor
JD Power rates major appliances: Samsung and LG top lists
Repair or not repair; that is the question: prisoners to “authorized” monopoly repairs
Miracles:
Warming
changes Gulf Stream ocean circulation: weather changes
for EU 119.8*
Drought
makes new natural wonders in Powell: like Petra
Indiana Jones
Facebook
spawns folks who reject science of disease by germs: ultimate ‘freedom’
Siberian
fires larger than all world’s fires combined: can fear
motivate change or kill us?
Senator
Paul does not report how he made a fortune on his job’s insider information
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/
No comments:
Post a Comment