Friday, June 24, 2022

Can you really secure your retirement income?

 

Another way the wealthy fail to pay their fair share

Conservation easement tax deduction is intended to keep pristine environmental beauty alive for all of us. Instead lobbyists are paid to stop Congress from killing this loophole. Congress people are paid to allow this concept for huge gains to continue. The wealth avoided $9.2 billion in taxes in 2018. Some pay nothing; others pay 3.4%. The IRS admitted it has not been able to stop the misuse of the loophole. In some cases a group of rich investors buys a useless property and gets an appraiser to up the potential value so that “easement deductions exceed 2.5 times” the amount paid. Closing this loophole would generate $12 billion in additional tax revenue through 2027 according to the OMB. A simple example of this taxpayer rip off is the one created by Trump. After he bought his mansion in Westchester, he claimed a huge tax deduction for the trees in his front yard. Trump received a tax break of $21.1 million, according to court documents. New York is now investigating this scheme. Trump claims the value of his forest will be a lot more when the next owner builds and sells 24 mansions in its place. There is no evidence of this future use for the forest. We pay the taxes that the wealthy fail to pay.

Use your tax-FREE account: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

 

 

Help your child, grandchild get started on a $1 million fund

They will need a million dollars since inflation can reduce the buying power by 50% in just 20 years. Since common stocks have the best history of keeping ahead of inflation, a broad portfolio has the best chance of delivering steady returns. Since 1871 a basket of stocks (dividends reinvested) has provided 11% returns. Ordinary inflation is 3% not 8.6%, so right now stocks are cheap. If you show your family that an 11% long-term return can turn $250 a month into $1,000,000 in about 34 years, they will not be try to beat the market with fast trades through a $0 commission broker. Show them the math: $250 per month for 34 years costs $102,000 in contributions. They earn $898,000 in dividends and capital gains. If they use their special IRS tax-FREE account, they avoid about $225,000 in taxes when they take their money out to live on. Remind them that Warren Buffett bet a million dollars on a low-cost market index fund to beat 5 super stock pickers. Buffett recommends you use the Vanguard 500 Index Fund. Why? You can give up 63% of your returns when you use a broker. And if they trade to beat the market they may end up with the historical broker account average of 3.79% not 11% a year. That’s $208,865 instead of $1,021,768 after 34 years.

https://www.amazon.com/Give-your-child-leg-up-manage/dp/1096505355

 

Why your advisor is outsourcing your investment needs

Advisors Are Outsourcing Investment Management: more time to find more fees/charges. Such is the story from your RIA sales person. Your advisor is in the sales business—attracting new assets. In our recent research, we found that more than two-thirds of advisors surveyed believe outsourcing gave them more time to spend on client relationships, client service, and business development. So your money will end up in 4,000 investment models from nearly 500 institutional asset managers. This means your advisor will charge you to pay someone else to stick your money in a set portfolio. They will ask you to fill in a long form and come up with a risk/reward ratio. That’s it. You will pay your advisor and the money manager both for life. This is why some analysts have determined that your fees can take up to 63% of your potential final net worth. This is why the average managed portfolio earns just 3.79% not the index fund rate of 11% over time. No advisor or money manager can beat a simple stock market index account. Those that do, have a lucky run for a short time.

Stop wasting your money: https://www.amazon.com/Pimps-Wall-Street-money-middlemen/dp/151525254X

 

 

Can you really secure your retirement income?

Some sales people claim you can do this by buying and holding gold and silver. But precious metals only hold value during high inflation times during some periods. Over time they earn much less than stocks. There are insurance sales folks who claim 70% of American seniors will need long-term care. This statistic is misleading since promoters are counting all the times seniors need short-term care at home and in facilities covered by Medicare. Some bankers want to give you money for your home now and let you stay in your home till you die. Of course you still need to maintain it and pay the property taxes on it. Reverse mortgage costs more than some traditional mortgages. When the reverse mortgage amount runs out, you have no home equity to tap into. Another sales proposition says you can increase your net worth 6 times by having someone else manage your money. Yet the firm that tracks money managers says your account grows at only 3.79% a year compared with leaving your money in a simple stock index fund earning 11%. Unfortunately, those who manage your money take their pay from your funds even when they lose your money. They may make the wrong trades at the wrong time, called churning. There are no refunds for bad advisor advice.

Use Buffett’s strategy: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

 

Fight inflation by saving on your financials

Save on your insurance, securities, mutual funds, banking, credit cards and recurring expenses. Most of us forget to review our recurring expenses to make sure we have the best deal or continuing need for products/services we bought before. I have shopped for car, home and umbrella liability insurance every two years or so. Why? Every time I shop I save. Carriers change marketing plans or I don’t need the same coverage. I am older and so are our vehicles. I have not made claims because I raised my deductibles and so I pay less. I don’t trade securities but when I buy individual issues or mutual funds, I use a no cost or low-cost firm. I moved my business bank when they raised the minimum needed for no monthly fees. I got rid of all my high-rate credit cards. I earned $600 by using new ones with a bonus. I dropped the more expensive cable package when Verizon raised the cost. I wasn’t using Netflix anymore so I cancelled. Same with data wireless plan I was not using completely. Now I pay as I go. I got my town tax assessor to lower our property taxes. I make sure I use all of my tax credits—small businesses, IRA deductions, charity, medical and educational. I am saving about $3,000 a year which I add to my IRA deduction. I still clip coupons on groceries or buy direct from honest sellers. I buy used books and electronic media. My money-back guarantee credit card saves me from fraud.

https://www.amazon.com/Financial-Bargain-Book-Save-3000/dp/1517264936

 

Retirees’ incomes get killed with inflation

Retiree households had an estimated median income of just $29,000 before taxes in 2019, according to Transamerica. Even worse, just over 1 in 4 retiree households — 27% — reported an income of less than $25,000. Retirees are sacrificing food and clothes to afford healthcare. Out-of-pocket health costs for elders in the U.S. rose 41% from 2009 to 2019. Some pawn heirlooms to survive. Waitlists of renters needing affordable housing continue to grow. Usually only Social Security benefits increase with inflation. If you will depend on bank savings, a fixed pension or annuity, the new inflation squeeze will hurt. You can estimate what your situation will be with a Monte Carlo calculator like Vanguard’s https://retirementplans.vanguard.com/VGApp/pe/pubeducation/ calculators/RetirementNestEggCalc.jsf. You can estimate your total savings accumulation using Vanguard’s Save for Retirement calculator: https://vanguard. newkirkone.com/plansavings/?cbdForceDomain=true#. If you are in a savings plan at work or are on your own with an IRA, use the Roth IRA option so you grow a nest egg that provides a tax-FREE retirement income. Despite the present stock market downturn, stocks are one of the few investment options that can out run inflation long term. Using this retirement account will boost your income by 12-22%. "Cash is not a safe investment because it will be taxed by inflation." Ray Dalio, hedge fund manager.

Tax-FREE income: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072

 

Strategies to overcome a bear market

If you believe the stock market is headed for a period of reduced returns, consider these strategies recommended by past successful gurus. Consider your investment behavior if your portfolio drops another 20%. Adjust your allocation accordingly.  Asset allocation can lean away from growth stocks to dividend stocks. Stay diversified: energy, high dividend, real estate and utilities usually offer temporary protection from the Fall. Always use “dollar cost averaging” to invest or move from one fund to another. With a fixed amount, you buy more shares when prices are lower and less when high. Keep track of fees. When earnings are low or negative, the industry does NOT stop taking their fees: double whammy. Over a lifetime of investing, “you may give up 63% of what you would have had.” Use only low-fee financial help.  Bears eventually end and usually recoup losses in a year. Most investors miss the time to jump back in: timing does not work for most. 10 best days of the stock market account for 80% of the rise. I have not looked at my statement for 6 months. I’m buying the biggest losers of the year right now.

https://www.amazon.com/Snoring-Best-Way-Create-Wealth/dp/1466408928

 

 

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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

 

Nov 21 2020: Trump plan: US Marshals seize voting machines

 

Jan 6 2021 Direct assault failed: guns & bombs ready

 

Trump engaged in a "criminal conspiracy" to stop Dems

 

Trump had become “detached from reality”

 

GOP fascism: “RINO hunt armed; no bagging limit

 

Trump used mafia intimidation on defenseless

 

Trump: “Just say the election was corrupt and leave the rest to me” 

 

Trump’s Supremes end personal rights: state laws except for weapons WMDs

 

 

Nov 8 2022 Trump’s “national revolution

 

 

 

How Govt wastes our money:

Trump’s terrorists could have killed Pence: Pence called military help from escape route

Airlines got $Billions free to keep crews employed: CEOs not crews got the money

Politics trumps justice: Jan 6 committee not sending witness statements to DOJustice

 

US Justice focus: Ukraine not Trump’s attempted coup: Garland prosecutes Russians

 

There just isn’t a lot of legislative time left.” July: Congress vac Aug then election

Supremes cancel church state separation: state tuition to religious schools constitutional!

Supremes cancel right to sue police for ignoring Miranda warnings: induced confessions

 

Supremes cancel police concern: too many guns on the street are a threat to public safety

None of Founders carried gun around city: Burr Hamilton had to leave city to shoot guns.

 

Despite $ billions in subsidies we pay them, oil refineries closing: EU uses small cars

Refunds: 21 million paper tax returns are still waiting: rich don’t overpay, no waiting

Half of Retirees Now Owe Taxes on Social Security: use a tax-FREE retirement account

 

Gun violence bill: nothing on guns: states get money to spend on ….

Uvalde lesson: teachers must shoot the terrorist to protect kids: coward’s suicide event

Most attacks over before police arrive: HALF leave scene before: 1/3 shot by cops

New body armor rules in NY miss vest worn by Buffalo killer: terrorists armor still OK

 

How will police know shooter if everyone has a gun? Of 433 attacks, only 12 good guys got him

 

SCAMS/SPINS:

Teachers leaving to avoid teaching culture war ideology: race, sex, politic are facts of life

Apple staff going to union shop: Jobs used to give stock and lunch

Uvalde police did have rifles and shields early: some cops got their kids out 

 

Supremes prove political focus: pro-Trump anti-women   Prejudiced court not American

Supremes decide to arm the rest of the US: 25 states already don’t require permit to carry

 

TX kept many slaves in irons after Juneteenth despite Civil War. Now redlining evictions

TX rejects Biden, Trump wins 2020: TX will vote to secede: rejects Fed subsidies

GOP co-conspirators in coup:  Gohmert, Gaetz, Perry, Biggs, Brooks asked for pardons!

 

TX massacre was plan of God: “God always has a plan,” the TX top lawyer replied.

MO GOP: “Join the shotgun crew. Get a RINO hunting permit. There’s no bagging limit

 

New scams: genetic tests, Apple phone, IRS call, family plea, Amazon security, shut off

Philly eviction help: mediation process requires landlord to respond

Geoffrey Palmer, CA caught failure to return rent security deposit 19,000: fine no jail

Recall: Toyota, Subaru recall EVs: wheels fall off

 

HelloFresh caught “17 free meals” scam to debit account forever

“Buy now, pay later” scams caught overcharging for long term debt

Soaring medical debt: middle class squeeze: lose job; lose coverage: hospitals sue

 

Google caught paying men more than 15,500 women: 30% of fine goes to attorneys

Crypto dealers close out withdrawals: you could lose your assets

Congress lets these companies follow your transactions/decisions/lifestyle: files on you

 

Putin is kidnapping, exiling Ukrainians to Russia after bombing them out of house/home.

 

GOP vision: no oil/gas subsidies, guns over children, no abnormals, original Constitution

2024 GOP Fake electors vs accurate popular vote: American vs Russian-style vote count

 

Jobs

Many are using this market disruption to find a new job, new start, new life

Waitlists of renters needing affordable housing continue to grow.

Newark launches search engine to help renters find housing they can afford

 

Lifeguards needed everywhere: pandemic, certification stopped, pay lags many other jobs

 

Who owns your account now?

FREE money: bonus cards up to $750 on travel, $2-300 cash

"Cash is not a safe investment because it will be taxed by inflation." Ray Dalio

Wealthy pass on wealth without taxation: all the legal accounts they need to avoid tax

 

Waiting for 8% on bank CDs: inflation times like the 80s were great for saving for home

 

Miracles:

DNA of Black Death victim 1338 shows location: Kyrgyzstan: kills 200 million 

June 17, 1972, an inept burglary (tape on lock) GOP destroyed American innocence

Our next delivery trucks/bikes: 15 mph with 440 lbs

 

Many coastal cities are sinking even faster than sea levels are rising: Miami garages

Excessive heat on the train tracks caused a BART train to derail 

Garage-sized reactor could provide limitless energy: wealthy avoid PSE

 

A laser that can stay on forever: medical, industrial, holography, bar-code scanners

Exercise pill:  “slow down osteoporosis, heart disease or other conditions.”

 

Lose weight by cutting sleep oxygen: hypoxia cuts appetite and burns more calories

Diagnose Alzheimer's disease in a single scan: therapy to control their symptoms

Supremes open up NYC subways to Wild wild West style gunfights in tunnels, platforms

 

 

 

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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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