Friday, October 7, 2022

Is a Social Security “bridge” right for you?

 

Why unionization at Amazon, Starbucks, etc scares the owners

As union membership declines, income inequality increases. It is clear that since the 1970s, people who work for a living are losing their productivity to the owners. First, it took two wage earners to live the middle class life. Then the owners bought machines to take jobs. Third, the owners sent well-paying jobs to regions/countries where labor costs were lower. Now we can’t buy a new car because the high-tech parts are not made in the US. The managers of large businesses now require over 300 times the average worker’s salary. One study found top executives, on average, received $13.1 million in total compensation, while the average employee earned $37,632. That’s a ratio of 347 to 1. The share of adults who live in middle-class households fell from 61% in 1971 to 50% in 2021. The widening of the income gap and the shrinking of the middle class has led to a steady decrease in the share of U.S. aggregate income held by middle-class households. In 1970, adults in middle-income households accounted for 62% of aggregate income, a share that fell to 42% in 2020. Instead of earning enough to buy a home, some workers have to add additional jobs to make it in the middle class. America is becoming a banana republic—elites own 90% of everything. Meanwhile, ‘only the little people pay taxes.’ The rich have found ways to avoid their fair share. The IRS has no way to catch them. Even Congress and top officials evade taxes using ‘illegal’ (for us) methods.

https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584/

 

Ranks Of Rich Americans Exploded During The 2010s

As they moved to tonier digs, they drove the middle class out of their path. They moved everywhere in the U.S., pricing up everything. The rich were buying up condos in Palm Beach and Miami, ranches in Texas and Wyoming, and houses in HawaiiWait staff in the Berkshires can’t afford to live there anymore. Even working class towns in rural New York State are suffering from new landlords. In 2020, tax filers making $200,000 or more in adjusted gross income comprised of almost 6% of all filers, up from 3% in 2010 and 2.14% in 2000. House prices will not likely fall back to pre-Covid prices. The explosion of the rich did not translate into benefits to society equally. The IRS can’t audit the wealthy anymore. How do the wealthy hide their money? Well, it turns out they don’t have to go to the international tax havens anymore. The wealthy hide their money in Wyoming. One lawyers realized that a trust can be established for a very specific beneficiary: the grantor himself. By claiming he no longer owns the assets—in a way, they belong to the trust—he is able to avoid wealth-transfer taxes such as the estate tax, and dodge creditors, too. The intention is to put the grantor’s assets in an “ownership limbo,” which obfuscates his legal responsibilities. Most lawyers claim this is a form of fraud. So this lawyer convinced Alaska it was a profit center for it. Alaska thus became the first state to authorize domestic asset protection trusts (DAPTs). Eighteen other states are now American tax havens. The Pandora Papers displayed the users. The Institute for Policy Studies report, “Billionaire Enabler States: How U.S. States Captured by the Trust Industry Help the World’s Wealthy Hide Their Fortunes,” provides the details. Is it likely that the millionaire Congress people will cut their throats to rein in this trend? You have one choice if you are not wealthy.

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

 

 

Is a Social Security “bridge” right for you?

The Covid pandemic saw an increase in the number of folks taking Social Security benefits early—age 62 is the earliest for most. But a person with a Full Retirement Age of 66 who claims at age 62 will receive a reduced benefit for the rest of their life—25% lower. Claiming at age 66 is worth 33% more in monthly income than a claim at 62, and a claim at age 70 is worth 76% more. That means a later claimant might receive over $1 million in their lifetime. However, some people can’t wait. For those who want the higher benefit but can’t work, the alternative is finding a “bridge” using other funds. Let’s say you have savings in a 401k or other tax deferred vehicle. You could activate those retirement funds early, pay the tax and still be able to meet your needs until age 68, 69, or 70. Plus, you don’t forgo the valuable annual cost-of-living adjustments (COLA) built into Social Security. The COLAs are applied to your benefit amount even if they have not yet claimed, beginning in the year that they become eligible to claim. Some advisors push a retirement annuity to bridge the gap. However, dollar for dollar, “buying” additional Social Security income through delayed claiming beats the return of commercial annuities by a substantial margin. Build a better BRIDGE.

https://www.amazon.com/Maximize-Social-Security-Benefits-Retirement/dp/1495439224

 

 

How to set up regular retirement income

Many people facing retirement want a steady monthly income that covers their basic living needs when their paycheck stops. Some employers are now pushing an annuity purchase with retirement funds (401k, 403b, etc). If you have an advisor, they may favor this alternative as well since there are high commissions involved. There are several difficulties to the annuity alternative. The annuity benefits may not keep up with inflation. A $500 a month benefit will buy about HALF the goods in 25 years. An annuity can be cancelled but you may have to surrender up to 10% of your money. Annuities are backed by the insurer you pick and they can fail. Insurers usually keep your money if you die earlier than their benefits are guaranteed. An alternative is to set up regular fixed amounts withdrawn from your funds rolled out of your employer plan to a mutual fund or broker. Because your plan funds were tax-advantaged, you usually put them in another shield called a rollover IRA trust. To maintain the growth of your funds, a balanced (stock/bond) mutual fund is preferred. Your trustee will sell shares for you and credit your checking account monthly if you prefer. Because your money was tax-deferred, the IRS has rules for timely withdrawal so the benefits are now taxed. Usually there are very few charges to accomplish your regular retirement income this way. Plus your trustee makes sure your tax situation is handled correctly. Of course you can always access your funds—no surrender charge. Over most investment years, your money will grow so your annual withdrawals can beat inflation. When you die, your named beneficiary receives the rest of your account without waiting for probate of your will.

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

 

Where is the market going?

You can probably guess that no one knows. However, super investor Warren Buffett says don’t bet against the American economy. Sure, the market goes up and down but over most periods it rises an average of 10-12% unless you are using an advisor or broker. According to score keeper Dalbar, you would have been better off in an stock index. Here is the long-term Dow adjusted for inflation: https://www.chartoftheday.com/dow-jones-chart-since-1900-inflation-adjusted. Most recently, the S&P 500 has dived 25% after rising 31%, 18%, and 28% since 2019. Over 5 years, the index is up 8% per year. If you knew this was going to happen in advance would you have moved your money from stocks to CDs paying 1-2%? Would you have moved your funds into bonds? Some may have but your long-term accumulations would be nowhere. Buffett must know something. His average is 20% annual gain (page 2). Stocks are safer over time than any other asset class—especially a well-diversified portfolio like a low-cost total stock index. If your long-term goals have not changed, no change is necessary.

Use Buffett’s strategy: https://www.amazon.com/Warren-Buffetts-Investment-Strategy-Forget/dp/1484822900

 

Ask your advisor about annuity complications

Annuities are complicated. Advisors are trained in securities. Most annuities are insurance-based. You are buying a 60+ page insurance company contract that most lawyers have trouble understanding. If the annuitant dies before contract maturity or annuitization, what happens? What if you use an annuity to pay alimony? What are tax events for gift of maturing annuity? Is there a tax when a spouse waves a survivor annuity? Is there gift tax when third-party given survivor benefits? Tax on gift to irrevocable beneficiary? Is there withholding on gain in annuity? Payments are taxed based on 3 “elements.” Which parts of annuity are taxed charitable gift annuity? Tax event for obligor in charitable annuity? Tax on annuity benefits for a corporation?

https://www.amazon.com/Best-Annuity-Strategy-Income-Growth/dp/1497532019

 

Is your 401(k) statement of “lifetime income illustration” accurate?

The SECURE Act requires 401(k) statements to show you a figure called the lifetime income illustration. It’s based on turning your accumulated balance into an annuity — an insurance product that pays out a series of regular payments — and the monthly income you’d get from that annuity. Congress got paid well by the insurers to insert this in legislation. Problems: extra costs and surrender charges reduce your nest egg. What if your situation changes? If inflation rates change, your monthly income may not cover your needs. What if the illustration is wrong? If the insurer fails? What if you die early and your nest egg goes to the insurer, not to your family? How will you pay the taxes your deferred in your 401k earlier?

Consider: https://www.amazon.com/Retirement-Income-Annuity-Guaranteed-Life/dp/1497337313/

 

Will you have enough?

Many of us have inflated retirement income expectations, setting ourselves up for disappointment in the case of forced early retirement. Overall, 70% of workers expect that they will not only have adequate income for basic expenses during retirement, but will also have discretionary income for travel and leisure activities. According to a survey by the IRI, it is highly unlikely that more than half of workers will be able to subsist on Social Security, particularly if they retire before full retirement age, as so many plan to do. Survey participants may also be unrealistic in their contingency plans if they exhaust savings. Many workers believe they can downsize and get by on Social Security if they exhaust their savings early during retirement. A third think they can return to work if they run out of money during retirement, despite the fact that many people in those straits may not possess either the marketable skills or good health necessary to return to work.

https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

 

Is Investing With ‘Factor Analysis’ Right for You?

Factor investing is a strategy that chooses securities on attributes that are associated with higher returns. There are two main types of factors that have driven returns of stocks, bonds, and other factors: macroeconomic factors and style factors. The former captures broad risks across asset classes while the latter aims to explain returns and risks within asset classes. The subscription offer: By following an actively managed rules-driven approach, factor investing allows you to leverage statistical observations and risk/return metrics to objectively judge the odds of your portfolio outperforming the general market. Since we all want higher returns, what seems clear is that someone is picking stocks that you pay to learn about. You pay for a stock picker to guess which way the market will go. I think this is great if it were true that we all could create wealth that way. Unfortunately, many have tried and few have done it. Some have picked well but only for a short time. This is not the strategy you should use for serious money. If you have the money to lose, give it a try. Otherwise, use Buffett’s recommendation.

https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963/

 

 

 

?**********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

 

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 was “detached from reality”

 

Trump used mafia-style intimidation on the defenseless

 

Parscale: “a sitting president asking for civil war.”

 

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

 

GOP fascism: “RINO hunt armed; no bagging limitJ6 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: Two Americas

 

Trump: President Biden is 'enemy of the state'

 

 

Nov 8 2022 Trump’s “national revolution

 

Jan 2025 Dictator pardons himself: his Supremes Agree

 

How Govt wastes our money:

More Americans moving into hurricane zones: higher premiums, taxes, owner losses

Supremes to cancel rights: voting, religious, LGBTQ, affirmative action, gerrymandered 

DeSantis, Gaetz own airline used transport immigrants from TX to MA: $12 mil fund.

 

Proud Boys member pleads guilty to seditious conspiracy

Seditious conspiracy: conspire to overthrow, put down, or to destroy by force US gov.

Oath Keepers Rhodes: "only regret" about that day group "should have brought rifles

 

Wealthy Congress fake farms get to delay taxes due to draught more taxpayers’ subsidies

national debt $31 trillion: $10.6 trillion Jan 2009: IRS can’t audit wealthy cheats Trump!

Institutions became addicted to free money and now the working class must be laid off

 

SCAMS/SPINS:

Trump asks judges he installed as Supremes to pervert justice in top secrets theft case

National Archives: still missing some Trump records: sold to N.Korea, Putin, China?

Secret Service doesn’t tell the truth either about a minor accident they have: who trust?

 

Biden fist bump Saudi MBS so he cuts oil flow so oil sellers & Putin make a killing again

Biden can cut arms sales to MBS so Saudis can’t kill more Yemenis

Biden quietly rescinded eligibility for student loan forgiveness: GOP OKs tax cuts

GOP CPAC, Musk and Tucker side with Russia on Ukraine invasion

Putin to reconstruct all the towns he destroyed now they are Russian towns?

Putin just killed 3 in apartment in his own [new] territory: landlord repair violation?

 

Choice Money Transfer caught excess fees, wrong rates, bad records, misleading

Jared Kushner caught excessive fees/rent units with serious problems: no fine

Kim Kardashian caught peddling crypto security EMAX: fine $1.26 Mil for $250K

Barclays caught Best Execution Failures: client trades cost more than might have

Keith Todd Ashley caught mail, bank, and wire fraud: indictment for client murder  

Hacker: BNB Chain Halts Drained Estimated $100M in Crypto: check yours

 

Congress caught making money from foreign dictators to run our government

Supremes to destroy Voting Rights Act: only white men landowners can vote 1919

 

Recall Old Europe Brie, Camembert cheeses: possible outbreak of listeria

“Best before” labels encourage us to throw away food that’s perfectly fine to eat.

Foods that may support dementia later in life: tasty sugary processed likeable stuff

 

AZ pharmacy decides 14 year old can’t have lifesaving drug: ‘might do abortions’

 

Are you being scammed by advisor? 7 ways you might be mislead

10 Ways advisors try to ‘impress’ you at social events

50 New ETFs Debuted September Alone: Brokers have trouble keeping up 50/month

Crazy: even new ETF to bet against a TV personality: one for alien visit?

 

 

10 PayPal Scams to Avoid: email order confirm; fake fraud alert; fake transfer

Sports betting made {too} simple everywhere [almost]

Scam alert: videos for fun not for real

 

DeSantis tricks not only migrants—taxpayers, religious, parents, voters, legislators, Feds,

 

Judge halts New York gun law: OK shoot up airports, houses of worship, Times Square

Death wish: 80 anti-vaccine bills have been introduced in state legislatures

Can we ever convince ‘smart’ people that Trump lost the election 2 years ago?

Another senator who voted to impeach Trump resigns early—four years left in Senate

 

Is it worth voting if Trumpists run next elections? US election farce like Putin’s?

 

Jobs

Disappearing jobs

Teachers: best and worst states for pay, benes, conditions, etc

Electricians to electrify everything to renewables: solar panels over parking lot sites

Amazon to hire 150,000 workers for holidays

 

 

Who owns your account now?

No coverage: “a dozen FL insurers went insolvent in the past two years”

FL homeowners may be under insured: estimates 60% are underinsured

Used car dealer: how to spot an Ian storm flood-damaged car

 

Annuity Great American Life Takes MassMutual Branding

What insurers pay for care may finally be revealed to the public: 1 aspirin costs $6

Carolinas Ian victims get tax relief; Oct. 17 deadline, other dates extended to Feb. 15

Your tax return filing extension runs out soon: who gets a break?

 

Miracles:

Done: Control over the growth of root systems could be revolutionary for agriculture

First: wind and solar met 10% of global electricity demand

California wells run dry as drought depletes groundwater: desert reclaims US West

 

Supertanker with sails cuts CO2 emissions

Chemists who can snap molecules together ‘like Lego’: Nobel Prize

Scientists found regularly drinking coffee or tea can provide a variety of health benefits

First fusion reactor will be open in UK by 2040: test for future clean energy

 

2 Russian reservists paddle to Alaska to avoid Putin’s war

@

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

I don’t think that there is any such thing as a position or a velocity of a particle.

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

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 a little

Physics Nobel Prize: “entanglement” 2 particles share info but no way of communicating

 

There is no TIME at this level because of force fields come and go in all directions. 

Universe expanding: events may not come together like they did before.

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.

The electricity we use comes from the field around the wire not from election itself.

 

 

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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