Friday, May 20, 2022

Warren Buffett is your best financial advisor

 

Best graduation gift you can give

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 at least $2,933 a monthly in a retirement supplement for the rest of our lives.

Start their ‘Wealth Reserve’: https://www.amazon.com/Give-your-child-leg-manage/dp/1096505355

 

Most folks in or near retirement fear outliving their money

Advisors usual solution: guaranteed income from an annuity. Because the commissions and fees can be large and are hidden, retirees usually buy these no-refund contracts. The contracts are usually thick with legal protections for the insurer and sales agent. There are more expensive provisions that may help protect you but the bottom line is that you are paying a lot of money for a stream of payments that may not overcome inflationary costs. So, for a 65 year old female with $100,000 payment, she will receive $454 a month for life. However, by age 80, her fixed $454 a month will buy about HALF the necessities it originally did. She can purchase a ‘cost-of-living’ rider like the COLA SS benefit but that reduces the amount per month. For less benefit, her heirs can get back whatever is left if she dies early (before age 86). She may need more than $227 a month for living expenses. There are better alternatives to get a regular check.

Check options: https://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573

 

Why Warren Buffett is your best financial advisor

Mr Buffett does not need your fees and commissions. He has $ Billions. He has more experience than any paid advisor or brokerage firm. Most advisors and brokerage firms provide standard advice and portfolio models pre-packed for retail customers. Unless your wealth includes special assets totaling in the $ billions, you get the regular firm products. Sellers sell only what supplies the firm with profits. When you need specific unbiased advice you can buy it from a fiduciary for a single charge. Most of us are going to accumulate less wealth over time by paying the annual fees and charges firms need. Those who pay 1-2% a year in fees and trading mistakes will give away 50 to 60% of their possible accumulation over time. Buffett credits “compound interest” for his success. Thus your $250 a month investment can become $2 million over time IF you don’t pay for advice you don’t need. Buffett’s advice is unbiased and simple to follow. Use Buffett’s advice:https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072/

 

Car insurance costs go up for some people

Age is a big contributor to costs: teens pay about $5,000; seniors pay about $1,500.  Your credit score and driving record can be controlled. Your home location can raise premiums. Your vehicle and its use can be a factor in costs. There are discounts available. Your immediate control of costs is determined by the carrier you use. Shopping every 2-3 years provides you with a chance to take advantage of the marketing plans of some insurers. They often try to find drivers which their database tells them are cheaper to insure. Each year they change and so do you. Bundling may save premium while others may not. The same goes for safe-driver courses and a driver association affinity. Each has its own set of preferred driver qualifications.

Try shopping: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

 

Is investing in real estate right for you?

Commercial real estate returns have shined during the last year despite the pandemic challenges. Like stocks, real estate investment trusts (REIT) are up 35% or more. REITs have often performed differently than stocks and bonds, so this fund may offer some diversification to a portfolio already made up of stocks and bonds. Since 2001 the Vanguard REIT has returned over 10% a year. Your contributions to a REIT inside a tax-FREE account may help you achieve a tax-FREE retirement.

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

 

Which mutual fund do my readers prefer?

Many of my retired and pre-retired readers prefer mutual funds that have been around for years and are managed by experts at low cost. Like John Bogle, they believe that “cost matter.” Bogle told Martin Smith of Frontline that a “2 percent fee will erode 63 percent of what you would have had” over time: 63%. That is big chunk of our nest egg. Bogle created low-cost funds for every portfolio. My readers like Vanguard Windsor Fund. Since its 1958 inception, this aggressive large-capitalization value fund has held fast to its distinctive strategy and provided 11.47% a year. Also Vanguard Wellesley Income Fund. This 50 year-old, income-oriented balanced fund offers exposure to dividend stocks and investment-grade bonds. It has provided 9.44% returns since 1970.

Pay less; keep more: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

 

What happens after a recession?

During a recession, stock prices typically plummet. The markets can be volatile with share prices experiencing wild swings. Investors react quickly to any hint of news—either good or bad—and the flight to safety can cause some investors to pull their money out of the stock market entirely. Since 1871, the average return has been 11% per year. You are better off betting on reversion to the mean not Bits. Fear not!

2009    27.11

2008    -37.22

2003    28.72

2002    -22.27

1995    38.02

1994      1.19

1991    30.95

1990    -3.42

1982    21.22

1981    -5.33

1975    38.46

1974    -26.95

Don’t lose your head: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

 

Advisors repackage old sales ideas with new hype

Active personalization is the new active investing,” announces analyst Morningstar.

Ask your advisor what “active personalization” really means. More tech mumbo-jumbo to sell standard “model” portfolios as ‘personalized’ just for you. Advisors will use “Morningstar portfolio risk score” to justify the portfolio they recommend. “They also have the Risk Profiler, which measures the level of a risk that a client is psychologically comfortable taking.” They will also offer the Risk Comfort Range—which connects your risk level to their product. They will measure your level of adherence to six sustainability themes. “With a click of button, this new optimizer is going to build a portfolio that matches your risk profile and your sustainability aspirations.” Sounds cool but you still won’t know how well you did until you see the results of all this button-pushing for a year or two. Advisors will still be paid by you no matter which button they push. Actually, low-cost indexes beat managed accounts.

Warren Buffett proved it: https://www.amazon.com/Warren-Buffetts-Investment-Strategy-Forget/dp/1484822900

 

How much should you invest?

The average salary is about $50,000. During our lifetime, we may earn $2.5-$3 million, depending on raises and years worked. If we invest just 6% ($3,000) in the low-cost stock market index of our 401k or IRA, we could have $2,100,000 for retirement in 40 years. If our employer matches our contribution or our spouse has a similar situation, we could have more. Given the historical rate of inflation, this amount would still allow us to spend retirement income of $45,000 (after inflation) for 30 years. We can now invest in a Tax-FREE account, approved by the IRS. We could spend all $3,750 a month!

Spend Tax-Free Income: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

 

 

?**********ACCOUNTABILITY**************?

 

 

Like 1776, this period is a test of democracyWe rejected an "American fascist" once

 

 

The Path to Dictatorship: 2010-2030

 

Jan 21 2010 Corpor­a­tions’ election-spending unlim­ited

 

Nov 2020 Wealthy discredit election process

 

Nov 21 2020 Trump’s Plans for a Coup: criminal

 

Jan 6 2021 Direct assault failed: guns & bombs ready

 

Trumpist’s Supremes end personal rights

 

Nov 8 2022 Trump’s “national revolution

 

 

 

 

 

How Govt wastes our money:

NO infant formula because milk subsidy laws keep out all other makers

More hate crimes: 2nd Amendment has no death limits but children only have 2 parents

Congress to let the lead fly: no gun or 30-rd mag control: gun purchase tripled 2000-21

 

Anti-vaxx, anti-maskers get their wish: 1 million covid disbelievers die: lack protection

 

Our Reps allow private equity firms to help wealthy (US and USSR) hide cash not yachts

Formula shortage due to socialist gov contracts monopoly firm: Abbott only supplier

414-9 9 GOP voted against helping women buy formula: Gaetz, Gohmert, Greene

 

OK bans abortion choice: $10,000 bounty on head of any helper, even religious advisor

Time for price controls? Runaway inflation and recession leads GOP to dream?

 

SCAMS/SPINS:

TX bans media firms from barring conservatives: “conspiracy to silence conservatives”

States with abortion ban and with “marriage” age 12-17 years for girls like in Hale time

State abortion limits: Abortion rights backers rally in anger over post-Roe future

 

GOP Loudermilk showed terrorists the capital layout for a coup: kill Pence

Former Trump White House chief of staff Mark Meadows committed voter fraud

Trump collects donations for 2017 AZ real estate approval: Trump WALL fails

Cruz collects donations to pay off his personal debts: financing our dictatorship

 

Scammer used cell number to gain access to social security benefits and switch them 

Mercedes owners: stop driving 292,000 vehicles: brakes can fail.

Ford recalls 350,000:  2021 Ford Expedition and Lincoln Navigator SUVs catch fire

 

Trying to time the market leads to disaster: ETF short sellers can’t exit positions.

Allianz caught Structured Alpha fund fraud: manager charged: fine, no jail

First Republic caught overcharging for certain mutual funds, cash sweep accounts no jail

 

BEWARE: WalMart trucks in KS have no drivers: Teamsters union, lawyers not happy 

 

Docs on Pharma Payroll Have Blemished Records, Limited Credentials: Ask 2nd opinion

Northshore Clinical Labs, a COVID testing laboratory caught results false: no jail

Surgeon check: always get a 2nd opinion: this guild protects its own so few lose license

 

US caught allowing auto-guns to be sold to those with limited real-world understanding

The limited haters can get auto-guns and armor vests to kill us all: 30 rd auto-guns

Our hand pistols do no good against guns of war: 30 rounds in 15 seconds: you’re dead

 

Misleading info drives fear and hate: Ex Trumpist calls GOP a threat to America

Putin instructs Russian TV to use Tucker’s propaganda instead of his own

Putin surrounded: Finland Sweden apply to NATO: Putin got his nightmare

 

Putin, like Hitler, putting seniors and mercenaries in uniform: replace higher war losses

Putin, like Hitler, now making strategic battlefield decisions: pontoon crossing daylight

Putin, like Hitler, putting spies in his own military ranks to "neutralize" dissenters

 

Putin blocks food for Africa: Ukraine can’t ship so deaths will exceed military causes

 

Jobs

Supremes offer Swag

10 most wanted jobs of 2022: Chauffeur, Road construction supervisor

$30 an hour babysitting in NY by high schoolers saving for ivy league $100,000 costs

 

 

Who owns your account now?

Stock returns for the last 20 years: Where would you rather be?

AllianzGL investment management biz to Voya

Credit score: keep your oldest card open; use once a year; make on-time payments.

 

Get paid for starting a new bank account: many rules but if you are already shopping

New infections-100,000 a day-comes as the nation heads into Memorial Day: mask?

 

Miracles:

Salt battery for long-term electric storage: capture wind sun; use: no wind, no sun

STONES: 60th year tour: Jagger 79, Richards 78, Wood 75: how to keep it up so long

Medical debt in payment plan delayed from credit reports July 1

 

Life cell secret: RNA molecules can link short chains of amino acids together: copy

 

 

 

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Everything in universe: galaxies to stones made of subatomic energy ‘vibrations’

Light is both a particle and a wave depending on how we look at the light.

A subatomic ‘particle’ is the smallest possible vibration (quantum) of a quantum field.

Mass–energy equivalence: E=mc^2.  At the smallest level; Everything is moving!

Inside protons, neutrons, it is the fields of the virtual particles that creates its mass.

“Empty space is a boiling, bubbling brew of virtual particles that pop in and out of existence in a time scale so short that you can’t even measure them.” Space expanding.

 

 

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

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

 

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