Can you take out 10% of your nest egg each year?
Some baby Boomers think their advisors would recommend this amount to be withdrawn each year in retirement. “Today’s low yields on bonds and high equity valuations mean ‘retirees are unlikely to receive returns that match those of the past,’ Morningstar says.” Fidelity said that over the timeframe of about one century, a 4.5% withdrawal rate would have lasted throughout a 30-year retirement in about 90% of the periods analyzed. Because that is an average, you must consider your specific situation before assuming you can spend 4.5% each year. Low earnings, inflation, your health and your family longevity must be factored into your best case scenario. If the bulk of your retirement funds are in qualified accounts (traditional IRA), your mutual fund or brokerage firm uses the IRS RMD worksheet to do the calculation for you. Their tables use an average withdrawal rate of less than 4% of your previous year’s combined total qualified funds amount each year. Thus, if your investments shrank, your RMD amount will be lower. You need to learn the factors that change your prudent annual spending amount.
Learn more: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716
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
Quickest ways to save $3,000 a year
The Federal Reserve's 2019 Survey of Consumer
Finances (released in 2020) found that the average,
or mean, account was just over $255,000. The average cost of using an
advisor or broker was 1.5% a year or $3,825. Since most financial sales people
can NOT guarantee higher performance than the actual markets, most
of us are better off leaving our money in a low-cost index account. Managed
accounts earn only 3.79% vs 11% for an
index account. For specific money management solutions, a one-time fee-only
planner provides better advice since it is unbiased. Moving accounts is easier
since a trustee to trustee transfer is usually free and not a taxable event. Another
way to save $3,000 a year is canceling a loan to the
https://www.amazon.com/New-American-Retirement-System-Reserve/dp/1461030072
Cutting recurring costs can save you a fortune
During this period of high inflation, it is important to note how much certain expenses really cost. Just as I noted above, saving $3,000 a year on your money management can really put huge amounts into your account. One reader was paying 2% of their nest egg each year for their advisor to check their statement quarterly. They moved their money to Vanguard and accumulated an extra $350,000 during their pre-retirement years. They were not only giving away 2% a year, they were losing the gains from that money. This “tyranny of compounding costs” applies to all of our recurring costs. We used to pay extra insurance premium for collision coverage on all our vehicles. We paid $ hundreds year after year until we realized our coverage would NOT pay enough to repair our older cars. This fact led us to take our policy apart so we paid only for the liability required by law. We did not need standard mileage, collision, comprehensive, gap, towing, temporary rental, health care, disability, accidental death, dismemberment, personal injury protection (PIP) and uninsured motorist coverage (UM). We then went through all expenses—cable, internet, life insurance, periodicals, etc to find more savings.
Save big: https://www.amazon.com/Get-What-You-Pay-financial/dp/1492384100
Another way the wealthy avoid taxes we can’t
One of the easiest ways the super rich can avoid taxes is by
having the assets they donate to a tax exempt organization appraised for very
very high amounts. Today Trump’s favorite
property appraiser was asked to stop holding up the investigation by the New
York Attorney General. Trump took a $21 million tax deductions on his tax
returns by having his appraiser value the forest
in front of his mansion in upstate New York so high: it’s impossible by law.
Our Congress people let folks like themselves reduce their taxes by claiming a
deduction for their $million gifts. They
give art, land, houses that they have
appraised at future or improbable values. Trump promised he would not
develop the forest on his property in his retirement years. That development is
not possible. This is one reason Trump is under investigation. His appraiser
based the value of his property on the possibility that 24 mansions would be built
and sold. Local officials have laws against such a venture. Rich people in the
area don’t want the ‘low-life’ crowding the back roads and markets. So if the
appraisal was faked, Trump will owe
Use your tax-Free IRS account: https://www.amazon.com/Tax-FREE-Wealth-How-laws-free/dp/1475089236
?**********ACCOUNTABILITY**************?
Like 1776, this
period is a test
of democracy—We
rejected an "American
fascist" once
The
Path to Dictatorship: 2010-2030
Nov 2020 Wealthy
discredit election process
Jan
6 2021 Direct
assault failed: guns
& bombs ready
Trump
engaged in a "criminal
conspiracy" to stop Biden
“I
don’t f—ing care that they have weapons”
Trump “detached
from reality”
Trump
used mafia intimidation on the defenseless
Trump: “Just
say the election was corrupt and leave the rest to me”
GOP fascism: “RINO
hunt armed; no bagging limit” J6
comm threat
Trump’s Supremes END personal
rights & state
laws except for weapons
WMDs
Fascism: GOP
to stop women leaving state for abortion
It’s
not a court. It’s a junta
How Govt wastes our money:
Christian
Nationalism: evangelical ideology attacks our
institutions/lifestyle/politics
Alito: abortion not
in constitution: cites 1600 Hale
who burned witch, favors marital rape
Feds
threaten woman in her home for angry
tweets attacking government
States
control our personal freedoms: control guns, books, sex talk, vote, prayer,
birth, etc
FL
starts arresting educators for talking about sex preference issues: 1st
Amendment end
GOP
primary winners don’t question own elections but dispute Biden’s win:
Fascism?
Most Americans,
Across Party Lines, Say Government
'Corrupt, Rigged'
Rich
buy votes to kill their taxes: IRS manipulated to
ignore rich taxes: hurt
poor & foes
GOP: show
a birth certificate, passport, Fed ID, in order to
vote even if already on rolls
EPA
no authority to reduce emissions, global warming: only
coal-baron Manchin can
Judge: drug
pushers not responsible for opioid saturation WV: addict & doctor did
it
309 mass shootings ½
2022: gun laws not effective: all
kids can buy WMD war gun
SCAMS/SPINS:
“Slavery” in TX: “involuntary relocation”: Texas
tries to ‘brainwash’ children on history
Who Will Care for unwanted Babies? Supremes
no; evangelical Christians no; TX no ?
TX
uses 1925 law to make women have kids: no
choice with doctor: jail
likely
White
nationalist group march along Boston’s Freedom Trail : fascists use
Old Glory
Independence
Day massacre: impossible
for good guy to stop
80 rounds in a minute
Brave
staff assistant already been threatened: is John McClane available?
IRS used as weapon by Trump: FBI
heads targeted for deep audits: no fraud
Trump’s
Supremes target liberal agenda since 1960s: reverse precedence; upend
customs
Tucker,
race “replacement” mouth, says not racist: gives fascist insider info
JPMorganChase traders caught
‘spoofing’ racketeering/conspiracy manipulate markets
Joshua D Nicholas caught
crypto scam conspiracy securities fraud.
Robert Louis Cirillo CA caught steal $3 million promised
high construction loan returns
Megan Hess funeral home owner caught
selling body parts: victim’s family in dark
Insurers & advisors pressing Congress to make it easier
to tap retirement funds at work.
IRS
cracking down on charitable remainder annuity trust (CRAT) abuse.
IRS warns: Companies
who promise to eliminate tax debt may sell you out
CVS takes “opportunities to hold off generic (drug) competition.” Seniors
pay more.
Zelle caught
deceptively marketing: big fraud problem: no reimbursement
Buy Now, Pay Later plans caught
misleading loan terms: long-term burden
Jobs
Jobs disappearing: https://www.bls.gov/emp/tables/fastest-declining-occupations.htm
Half of millennials would quit
if asked to return to the office full-time
Mass murderer passed checks AR 15, ‘quiet
kid’: bring back draft; give kids a real life
Brown
shirts: Abortion
police to track down all the doctors, law breakers and taxis, etc
Who owns your account now?
Internet coming to trains, ships, and other vehicles using SpaceX's satellite internet
Benefits for seniors that are not advertised: https://benefitscheckup.org/
New car buying questions guide search for best deal: Feds push national sales standards
Cars have been made too distracting: highway deaths up
Park
short-term money in short-term bond fund: 2.4% SEC yield
Miracles:
Cancer victim now
cured after new drug: life after death
sentence
Transforming windows
into active power generators has just edged one step closer
Sand
battery' can store energy for months: sun don’t shine at night
Quantum computer completes
9,000
Years of Work in 36 Microseconds
100
people have died in extreme flooding in Bangladesh: France
Portugal
on fire
Warming: 50,000
people in Sydney told to evacuate their homes: climate shift
600
monkeypox cases confirmed in the
Vatican
shakeup: Pope names 2 women to Bishop Committee: espresso gophers?
Why
Vets waited 55 years for honor by US? Must be incontestable proof! Ask
Biden
WH reply: “We take
careful note of the suggestions, thoughts, questions, and stories”
@
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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