Your advisor is costing you $8,800 or more
Do you know how much your advisor is costing you in terms of long-term accumulation? Most folks do not know because their advisor does not publish the benchmark returns that compare their returns to published statistics. Folks who use index funds automatically see how they are doing with their ultimate goals. So far this year, their account has grown by about 19%. Over the last 10 years, they have advanced over 16% per year. If they have been contributing their tax refund—about $3,000 a year—they have accumulated another $75,500. The average advisor costs run 1-2% a year between annual expenses, trading fees and bad market timing. Depending on your situation, you may have lost $8,800. Because of compounding over time, you may end up with only $569,000 instead of $882,000 using advisor cost averages. That is a lot to give your advisor: your $313,000 pays for their children’s education. But then who pays for yours?
Earn more automatically: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957
Is auto-home ‘bundling’ right for you?
Sounds good but most folks find it is not right for them. Why? Bundle benefits go to the insurer not to you. Buying both auto and home insurance from the same company assumes one insurer can provide the best deals for you. That just doesn’t happen. Insurers price their products differently depending on their financial needs. You can save $ thousands over time by taking advantage of their shifting marketing strategies and also changes in your needs. For instance, insurers in CA and WA have had to raise rates as more fires got worse in recent years. If you have the same insurer in AZ your rates have also gone up. On the other hand, driving and commuting have been reduced so your rates are now found in the ‘leisure’ category. If your credit score has improved, your rate could be lower but only if you shop your vehicles to other carriers. Insurance agents don’t have an incentive to call you when your rates could be lower. Or they don’t know that you now have a minor on your policy or that you now have a dangerous dog. You can’t know you could be paying less for 10-20 years unless you compare rates often. Each insurer has their own set of discounts so you may qualify for more with a new insurer.
Drop the extras: https://www.amazon.com/Industry-Insiders-Guides-Buying-Insurance/dp/1466435712
Is your family member a scam target?
Certain folks are more likely to be scammed than others.
Consider how the
results of this study may impact your family members. The scam target is
not likely to ask questions of an offer or product or agent. Researchers
propose that mental frames governing compliance, opportunity, intelligence, and
order may have affected the way that interviewees interpreted what scammers told
them. Individuals were more likely to lose money if they believed that:
- Authority
should not be challenged.
- Financial
opportunities are a zero-sum game with clear winners and losers.
- The
world is organized in a way that rewards good people.
- Asking
too many questions can make a person seem ignorant.
Study participants explained how scammers reached out with promises of easy money or lucrative investments. Others described receiving phone calls from fraudsters posing as IRS agents and demanding payment of back taxes. Some scammers pose as eager lovers who promise to pay you back. Natural disaster victims are especially vulnerable to scammers since desperation makes us perfect prey.
Educate your family: https://www.amazon.com/Money-Scams-2014-insurance-financial/dp/1505437962
Is prepaying your funeral right for you?
Covid deaths—now over 700,000 and counting—have some folks thinking about the future. What is new is paying for your departure in advance to a lay-a-way company with no track record. Funeral homes have had their own ‘pre-need’ accounts for centuries. Of course your prepaid account may not last long enough: there are business failures. However, like buying life insurance for final expenses, paying for a funeral on a lay-a-way basis is not the best solution for this expense. Some plans offer a price ‘guarantee’ but how do you know they will provide the expected services. Some new ones offer affordable monthly payments in advance. Some claim they will hold the money in a bank and move the money to a funeral anywhere in their system. A better way is to designate some of your legacy for your final appearance. Since you don’t know about costs in advance, you may want to leave a note with your will explaining what kind of show you want and how much to spend. You need to designate a trusted executor to follow thru on your plan. My plan is cremation by the medical school when they are done with me. God knows what is on my tombstone. Relatives may want to give a toast at the final dinner.
Your plan or their plan: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793
Why is the boring target-date fund right for you?
Tests and surveys have consistently shown that steady contributions—the same amount each month—to these low-cost index funds provides the best chance of reaching the maximum accumulations over time. This boring investment strategy beats any advisor or computer-run strategy because the market swings are unpredictable. Most investors and their advisors think they can do better than the market index funds. Hubris was identified early in human history as being the cause of one’s downfall. Morningstar, the investing analyst, ran some extra simulations and DCA (dollar cost average) does possibly account for some of the gap in returns, but a perfectly-steady DCA investor still outperformed the real-world investor in 6 out of 7 fund categories. DCA can’t be helped if you are simply investing what you can, when you can, but there is still extra trading in and out that appears to only make things worse. Market timing, the effect of using ANY investing strategy, has no benefits for you except maybe in the short term. Warren Buffett advocates this “dumb” way of investing because it succeeds.
Go with Buffett: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963
Help your child or grandchild learn to manage money
Instead of buying your child or grandchild life insurance to make sure they have coverage in the future, buy them financial literacy. Give them a leg up with money making skills. The old advice still works: Give a person a fish, you feed them for a day. Teach them to fish and you feed them for life. Make sure you teach your kids how to create wealth the easy way. My parents were not investors. At my first job, I had no clue which investment option to use for my 401k contribution and company match. The HR person told me to put it into the 'safe' stable value fund. That was the worst choice at my age I learned later when I got my securities licenses. If I had followed their advice I would have ended up with $150,000 instead of a Wealth Reserve of $877,233 about 33 years later. We have used this 'Wealth Reserve' as I call it to have funds to use low-cost high-deductible insurance, to buy two homes and 5 cars with higher down payments or cash, and now to receive $2,500 a monthly in retirement supplement. Advisor fees take HALF your funds.
Follow 3 steps: https://www.amazon.com/Give-your-child-leg-manage/dp/1096505355
**********ACCOUNTABILITY**************
Like 1776, this
period is a test
of democracy—We
rejected an "American
fascist" once
Our Jan 6 ‘Truth and
Reconciliation Commission’
Subpoenas
for Trump’s failed government overthrow
Domestic
terror double foreign terror
Another
terrorist of failed Coup guilty
Trump’s overthrow
plan in 6 steps
How Govt wastes our money:
Longest war is over
so why
give Pentagon $24 B more? Peace
dividend for more bombs?
GOP
to let America default on debt to show Dems who’s the boss: win at any
cost!
Domestic
terrorists, real threat, evade our $52.6 Billion intelligence and legal systems
Debt ceiling acting
out: how can we take these squabbling
kids in Congress seriously?
Why
the national debt keeps going up: some Americans
don’t pay their fair share
Manchin not support
infrastructure bill since coal-use
rules to reduce climate change
SCAMS/SPINS:
GOP confirms Biden
win: $6
million AZ recount found more votes for Biden
62 ships but no
trucks: transport
costs rising and we pay higher prices for items
Car warranty scam: third-party
warranties not worth it: don’t cover many repairs
Caught: Never
give your kids work files: they might save evidence of your fraud
TX taxpayers to fund Trump request to see if he really won in 2020: Biden
won TX?
CA
allows every voter to mail-in ballot from now on just
like Trump does, not like TX
Federal bankers caught:
insider trading: bankers bought what they voted Fed to buy
“Brand ambassador”
scam: you get promo exposure if you buy
product but it’s broken
Fake
media is so easy to make we have to check with other sources.
Employers are
embracing software that allows them to track workers online.
Colonoscopy center
charged ‘facility’
fee $345 despite Medicare’s FREE screening.
$54,000 TX Covid
tests: America’s
health system will bring socialism eventually
OK is tops in death
by police: 84%
of police killings since 1980 were unreported
Get out your guns: Murder rose
by almost 30% in 2020: if
everyone packs, no murder?
Supremes
claim not political: decisions to reverse
Roe v Wade, gun control, vote rights!
Jobs
High-paying jobs that don’t
require long experience record: $56-66,000 a year
Police
and fire in LA spread Covid to public: LAPD ‘freedom’ beats your
safety/service
State
workers would rather quit than take vax: brain washing complete!
NC
hospitals need vax ready med staff: fired 175 Monday: more have warning
13
Home-based jobs certain careers: high pay
United
Airlines Prepares to Fire Employees Who Refuse Covid-19 Vaccinations
Who owns your account now?
Where is your long-term and short-term money?
Phone companies required to block any incoming traffic on list: will they bother?
Miracles:
Permian mass
extinction: rapidly rising CO^2 from volcanic eruptions in
Ugly buildings: contest
to see how bad it can be
Berlin’s
first female mayor Fran after historic electoral gains for her center-left
party.
Let’s talk about courage:
Zion knows: when you
feel frustrated to continue.
Retirement
fund build up: Stones back on the road working for more cash
Custodian Chris, no
car, walks
miles to work so teachers bought him used Chevy`
Biden
finally reverses Trump: penalties for killing birds confirmed
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/
Wisdom
comes only thru suffering Aeschylus
IAN
41 Watchung Plaza,
B242
973.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available
at http://dankeppel.blogspot.com/
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