Friday, July 1, 2022

Is rebalancing mutual funds really worth it?

 

Are ‘Alts’ right for you?

At this time of market insecurity in more traditional assets, alternative investments provide individual investors a way to hedge against increased volatility and generate strong returns. Such is the promoted promise of this new asset class which includes a range of private equity, private credit, hedge funds and real estate. But before you leap into a new set of risks, make sure you understand what happens with returns. These assets are available to the knowledgeable “accredited investor” only. Risk of loss is higher than stocks and bonds. Advisors can provide access to information and opportunities but making the commitment still lies in your hands. Advisors are sales people not market truth tellers. Unfortunately there are no free lunches. Bet only what you can lose.

Learn more here: https://www.cfainstitute.org/en/membership/professional-development/refresher-readings/introduction-alternative-investments

 

Learn how to stop paying the taxes left unpaid by the wealthy

You can use some of the techniques of the super rich who avoid paying their fair share of taxes. Make your retirement nest egg income tax free like Peter Thiel who has amassed a $5 billion in his tax-FREE account. Others like Jeff Bezos and Elon Musk pledge some of their $ billions in assets for loans they use for expenses. Proceeds from a loan are NOT taxable income so they own nothing or a smaller rate than your income taxes require. Then there are business owner deductions which coup-leader Trump uses to not pay taxes. After bankrupting his casinos, he declared business losses of almost $ BILLION and offset his other income for 18 years. He declared himself “smart” since his pricey accountants found loopholes in the tax code. Real estate ownership is another “negative tax” business. Like Stephen Ross, you can avoid income taxes by claiming huge paper losses ‘depreciation’ for years. Some wealthy folks use their hobby to claim tax benefits. If you are able to help a GOP candidate get elected you may find a loophole comes your way. You can use special estate-dodging trusts to reduce your whole family’s taxes now and forever. Stop paying their taxes using your tax-FREE account now.

https://www.amazon.com/Tax-FREE-Wealth-How-laws-free/dp/1475089236

 

How to pay off that 24% interest credit card

Consider a full pay-off loan using a HELOC. A home equity line of credit costs much less than a new cash-out refinance. There may be no closing costs and you may be able to deduct the interest from your taxes. If that can’t work, try a person to person loan like Lending Club. Another site like Fiona can match you with a lower-interest loan you can use to pay off every credit card balance you have. Some people open a 0% credit card so they can take a break from the crushing interest payments. However, the period ends and you still have the problem of the loan. Other folks have had enough and take a temporary job to get out of debt completely. At the same time they take a fresh look at their ongoing expenses and cut viciously. You may save a lot by changing the terms of your car, home, life and health insurance. Others have moved their mutual funds to a low-cost provider. Some have given up their cable sports package—at least for a time. Some moved their wireless service to a pay-as-you-go carrier. We have suggestions that our readers have used with success.

Try them: https://www.amazon.com/Insiders-Guides-Discount-Financial-Services-ebook/dp/B004JKMUVO

 

Is rebalancing mutual funds really worth it?

John Bogle, founder, Vanguard Group says: “on the idea of rebalancing. I don't think you need to do it.” Over your long-term investment life, rebalancing the proportion of equities and fixed income and other market segments may reduce your total potential gains. Some rebalancing plans can increase your costs and create a loss. Using the Buy and Hold strategy has shown superior returns to a regular sell and buy plan since frequent trading tends to sell winners too early. Warren Buffett, outstanding investor, says his “favorite holding period is forever.” Most of his portfolio has not changed in years. Your advisor has a vested interest in selling and buying regularly. As my old boss used to say, “We only make money on transactions.” The safest investment strategy is a balanced portfolio you can live with no matter what the market does. Markets go up and done. Accept it.

https://www.amazon.com/Dont-Re-balance-Your-Portfolio-Research/dp/1508802386

 

 

Is a Donor-advised Fund right for you?

DAF can be useful to you and your family. It is an efficient way for you to support your charities while offsetting your income tax bill. When you contribute cash, securities or other assets to a donor-advised fund sponsoring organization, you are generally eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth, while allowing you to support charities on your timetable. Organizing your charitable giving now and in the future are DAF benefits. The number and kind of giving is flexible. Your DAF cannot hold qualified accounts. You need to provide sufficient funds/securities to generate 1-2% in fees, investment management and bookkeeping charges. You can skip the paperwork required to contribute to each charity. You can skip the tax deduction/contribution timing requirement—create the deduction when you need it and tell DAF the amount and timing of your gifts separately. You can track your gifts over time in your DAF account. Your gift does not trigger multiple solicitations. No one like family/friends need find out about your gifts. DAF handles selling your securities, filing tax forms, and accounting for all household members. Your donations must go to a qualified charitable organization. Many mutual fund firms, non-profit institutions and religious organizations offer DAFs.

Use your tax credits: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

 

Use market volatility to lower your tax bill

If you sold some of your stocks to pay an unexpected bill, take the loss off of your taxes. Uncle Sam helps us speculate on winners and losers by allowing us to take a deduction for our stock losses. Each year we can deduct $3,000 if we itemize our tax deductions. Your losses can go on for years until you deduct them all. For those of us who have large health care expenses, itemizing may lower your tax liability more than the standard deduction. For some with large charity commitments, itemizing also pays off with deductions. To determine if you should itemize, you need to complete Schedule A so you can compare your deductions to the standard deduction. For 2021, the standard deduction is $12,550 for single taxpayers and $25,100 for married taxpayers filing jointly. Most tax prep software will calculate both so you can take the best deal for your situation each year. You don’t need to pay extra for most software to do this calculation—even the free ones do it. Check at https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free or get help during tax season: https://irs.treasury.gov/freetaxprep/jsp/vita.jsp

 

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

 

A “unique” portfolio designed for your needs?

Is your advisor really providing a “unique portfolio designed just for you”? Maybe not. Advisors are saving money with the Universal Wealth Management Platform. This one model is billed as “Model Serves Multiple Wealth Segments.” This cheaper sales kit is being used by different types of wealth firms - from broker-dealers to independent advisors to family offices. Advisors are outsourcing the management of your assets so they can find more clients and add more revenue. This means you are overpaying for a computer-generated asset allocation based on your answers to a standard model of risk and reward. You might be better off (pay less, earn more) if you put most of your money in a broad index fund. You pay less and earn more by using simple logic: more risk; more return. According to most unbiased analysts, cost is the best determinant of investing success.

https://www.amazon.com/Best-Predictor-Investment-Success-Cost/dp/1502524082

 

 

 

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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 Biden

 

I don’t f—ing care that they have weapons

 

Trump had become “detached from reality”

 

Trump used mafia intimidation on defenseless

 

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

 

GOP fascism: “RINO hunt armed; no bagging limit

 

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

 

 

Nov 8 2022 Trump’s “national revolution

 

 

 

How Govt wastes our money:

When abortions were illegal—and how women got them anyway: Supremes will adopt the kids?

Where abortion access is guaranteed without Roe v. Wade: HHS info helps

GOP fetish: “Millions of precious unborn lives will be saved”; then left w/o health care

 

Supremes use 1600s precedence to end personal right of choice: marital rape OK

Denial of women’s choice has heavy negative financial effect on poor for rest of life

 

Supremes end states’ right control gun packers after receiving 24/7 protection from guns

Supremes end church state separation: religion in public schools: Only Christian prayers

Supremes reinstates Louisiana voting map that discriminates against Blacks Thomas too!

 

GOP Rep. Boebert: ‘I’m tired of this separation of church and state junk’ ban tolerance?

 

Michigan Supremes give free pass for Flint poisoning to Gov. Rick Snyder: rich go free

Supremes decide to let non-EPA industry destroy the world: No regs on coal industry.

 

 

SCAMS/SPINS:

END to US rights of life liberty pursuit of happiness: only right left: gun in a militia

GOP: “control local apparatus in elections; network the country, so unbreakable control”

Christian Nationalists moving us backward to their fantasy time: white males ruled all

 

Extreme America wins: Supremes end women’s choice, end states’ controls of guns

Thomas: Void our choices: contraceptive, LGBTQ, “due process,” Miranda, sex, books, votes

Republicans used to hate activist judges: next ACA, Medicaid, SNAP, mixed marriage

 

TX school district mandates certain clothing for 15,000 students: fascist state rules begin

GOP Freedom: Christian conservatives define it: by Trump’s people for Trump’s people

Anti-choice states: crime to talk, inform, aid, abet, abortion 

 

GOP: “protect innocent lives” by allowing assault rifles for school, market, mall killings

 

Roe verdict a ‘victory for white life’ IL Republican tells Trump rally: Freedom, mine first

 

Militia expert says white terrorists will be back to try another coup for Trump

GOP voted for $Billions for new gun law so states could fix budgets not fix kid killings

Will Biden track the actual lives saved by $13 billion for states to spend from new law?

GOP refused waiting period for guns or license to purchase an assault weapon. Kills OK

 

Martin Ruiz caught stealing $8 million client funds for real estate returns: 6 years prison

Credit Suisse caught laundering Bulgarian cocaine gang money: fine, no jail

 

Putin caught defaulting on sovereign debt: sanctions working?: more interest, no jail

Putin bombs women children at mall: Finland and Sweden join NATO to surround him

 

FBI document LA Catholic clergy sex abuse while taking kids out of state: possible jail

 

Patrick Egan CA caught violating Regulation Best Interest: sold high-risk "L" Bonds

Ernst & Young caught accountant employees cheated on ethics exams

RECALL: Daily Harvest meals: sickness from mail order meal ‘kit’

 

Facebook Messenger scam: fake login takes credentials: friend clicks makes $millions

Scams circulate all over the place: truth can’t be found easily

Crypto vendors decline virtual money: not worth it. store wasn’t accepting crypto

Phoenix is epicenter of home flipping: families priced out of homes: 18.7% of all sales

 

Meadows and Giuliani, Trump’s adviser, asked for pardons for roles in attempted coup

"Our own president set us up," Capitol police Gonell. Trump sent an armed mob”

Will Cassidy ever work again? Mafia hates disloyal women

 

Oil refiners make less gas than before pandemic: Exxon profit more than doubled

 

Wealthy LA enclave gets harsher penalties for wasting water: above the law?

 

US to expand animal pox testing at labs as outbreak grows

hepatitis-of-unknown-origin-reported-in-children

 

Jobs

Secret service tells president “NO” we are not letting you lead armed coup

People are using deepfakes to apply for remote tech jobs

 

 

Who owns your account now?

Shop for health care before visit: cataract place $204; hospital outpatient $4,057

Ban women’s choice: Evangelical Christians tried to ban our choice to drink: reversed

Health insurers post every price they've negotiated with providers for health care services

Medical Debt Set to Be Wiped From Credit Reports: check credit reports FREE

 

 

Miracles:

Water-based battery makes use of other affordable, easily accessible components: no fires

"Rolls-Royce projects electric flight using its turbogenerator

Thailand feeding chickens cannabis in a bid to keep the birds off antibiotics.

 

Man who grabs genitals spoke to God: "God made the decision." He means himself.

Rio Grande will dry up this summer: scientists fear change in birds, mammals habitats

 

Supremes decide to let non-EPA industry destroy the world: No regs on coal industry.

EU factory to capture carbon dioxide from the air and deposit it underground as rock

 

Human fossils in Africa cave million years older than expected: we’re very very very old

Men rush to get vasectomies after Roe ruling: no more unwanted kids in USA

 

 

 

 

 

@

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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