Friday, November 18, 2022

How the Miracle of Compounding can help you

 

How the Miracle of Compounding can help you

Unfortunately, most young people don’t understand or have even heard about this Miracle. It is so important to your financial life that one of the smartest investors, Warren Buffett, gives credit to this Miracle for his reaching $100 Billion net worth from his early paper route savings: “My wealth has come from a combination of living in America, some lucky genes, and compound interest.” For most working people, the Miracle is the surest way to accumulate enough during their working lives to live comfortably in retirement of 20-30 years. Compounding is simply making money on the money you already earned. You save and invest $250 per month ($102,000 total) over 34 years and you end up with $1,111,555, or $2 million in 40 years. $250 a month is $9 a day. I am using the average gains from the stock market index over time without a salesperson taking a 1-2% cut. You can turn $102,000 into $1.1 million (TEN TIMES) without doing a thing—you must do NOTHING. Warren Buffett proved you can beat most Wall Street “professionals.” The Miracle works if you are consistent and you don’t give up 63% of your gains to your advisor. You can’t raid your fund or quit investing when markets fall.

https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513

 

Here is why timing the market can’t work for you

The 14 Best Days in the Stock Market Since 1950: The S&P 500’s 5.5% surge on Thursday was its largest one-day percentage gain since April 2020 and the 15th highest since 1950. Since 1950, in fact, the market has been up a year later after 22 of the 24 biggest gains. For those trying to trade out of the market at the top and into the market at the bottom, you will miss many big swings. The ‘professionals’ who claim they can do this are lying or got lucky on one call of the markets. Timing is not the strategy of the great investors: Buffett, Bogle, Ellis, Schwab, Lynch, Neff, Templeton, Graham, etc. Timing the markets requires that you buy and sell often. This requires you have an advisor/broker and that they provide a good story. It means you are paying them out of your pocket. Buy and hold low-cost indexes have been shown over and over to provide the returns that beat traders. Looking back over the 20-year period from Jan. 1, 1999, to Dec. 31, 2018, if you missed the top 10 best days in the stock market, your overall return was cut in half. That's a significant difference for only 10 days over two decades!

https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

 

Art as an alternative or counter balance to stocks

Some investors think art (pictures) is a fantastic alternative asset class that has outperformed the S&P 500. The average annualized growth rate on the 11 Paul Allen lots with public entry prices was just 6.2%. On average, Allen held them for 18 years before selling them. By contrast, even after its fall this year, the S&P 500 still boasts a compound growth rate of 8.9% over the past 18 years. Allen would have made more money just buying a low-cost S&P 500 index fund. This index is down 17% this year but in 2009 it was up 27.11% after being down in 2008 -37.22%; it was up in 2003 28.72% after down in 2002 -22.27%; it was up in 1991 30.95% after down in 1990  -3.42% and up in 1989 by 32%. This index provides over 11% over time and reflects every sector of the market. Recently it was dominated by the tech firms since it is structured along the current market capitalizations. But also recently, the Energy index soared. The index fund you pick must be a low-cost one so that you don’t give up HALF your gains to the seller. Art may help you broaden your portfolio but it can’t match the 500 Index as your primary retirement nest egg. Paul Allen already had his HUGE $20 B nest egg.

11% is better than bank’s 3%: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072

 

Getting through a economic recession

1. Make a budget with your family and write it down. Most folks don’t know how much money they are wasting because old habits take work to change. 2. “Shit happens” so make sure you have an emergency fund of at least $1,000. This is no time to look for extra cash. 3. Know how much you are saving since these times are when people are likely to think “we can make it up later”. The stock market is down 17%. I promise you it will gain 17% when the market turns around so this is NOT the time to quit investing. You will kick yourself later. 4. Checking your spending every other month alerts you to the deficit you are creating when you spend more than you take in. 5. It is the habit of good saving-spending balance that you must get right to live through this period. You don’t know how long this will last so don’t cheat on your own successes. 6. Savings must become the top priority. Most folks fail to reach their savings goals—new car, home, appliances, furniture, college fund, etc—because they don’t prioritize savings. 7. Most budgeters underestimate all the little things they buy. We justify the $5-10 daily buys as rewards. We waste over $4,000 a year this way. That’s a $400,000 hole in your future retirement fund. 8. Did you account for taxes? The average tax bill is about $8,000. Property tax is another $6,000. 9. Be realistic in your budget about spending. Budgets don’t work if you cheat or misunderstand what your costs are. I sign up for a certain streaming and then I forget to stop. 10. Card companies have trained us to charge it without knowing we can pay for it by the end of the month. The average household credit card debt is nearly $9,000 with a total of $887 billion in Q1 2022. It's the fastest rise in more than 20 years. It takes 3 years to pay off IF we stop adding to the balance.

Use your discounts: https://www.amazon.com/Insiders-Guides-Discount-Financial-Services/dp/143480593X/

 

Advisors secrets to persuade you into buying

A recent study showed that your advisor’s positive statements about your future can get your attention. Scaring you is an amateur’s way. Advisors use ‘enjoyment’ for boomers and ‘plan retirement you deserve’ for millennials. Advisors using technical jargon is NOT for you. Advisors pushing a product are not appealing to anyone. Lazy advisors use slideshows and different images to overload and confuse us. Too many images of inactive retirement life sends the wrong message. Too many demographic diversity images instead of diverse active ages ruins the message. Images of older white men in suits leave many cold. Women and singles can have a rewarding retirement too. The best advisors get you to talk about your interests and needs first. Genuine open-ended questions from an advisor can help you define what you need. You may not need a product. Find a fee certified financial planner (CFP) to help you organize your strategy and goals.

https://www.amazon.com/Get-What-You-Want-FINANCIAL/dp/1514751151

 

 

 

 

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

 

 

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

 

 

The Path to Dictatorship: 2010-2030

 

Parallels of this era in the past may hint at our future: democracy breaks apart legally

 

 

Jan 21 2010 Corpor­a­tions’ election-spending unlim­ited

Billionaires paid $881 million for votes in 2022 midterm elections

 

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'

 

Christian Nationalist Party (CNP) replaces GOP

 

Nov 8 2022 Trump’s “national revolution” failed

 

Nov 15 2022 Trump announces for 2024 to avoid lawsuits

 

Jan 2025 Dictator pardons himself: his Supremes agree

 

 

How Govt wastes our money:

United Arab Emirates oil money changes our policy in its favor: they decide; not us

Our smartphone applications contain hidden Russian code: Army combat unit use

We spend $millions returning to moon on a joy ride: could save Earth from asterioids

 

We bail out crypto billionaires: Congressmen paid: bankruptcy makes Trump millionaire

IRA owners age 70½ or over option to transfer up to $100,000 to charity tax-free yearly.

Biden to protect MBS Khashoggi killer from suits: leverage for more oil?

 

SCAMS/SPINS:

Trumpists cancel student loan forgiveness program: only The Leader has authority

Trump to get his Supremes to cancel subpoena to testify re: Jan 6 coup instigator

Trump has support of about 80% of white evangelical Christians: Christian Nationalism

Trumpists’ first act: set up Benghazi-type witch hunt for Biden family sins

 

UVa shooter purchased 2 guns legally after prohibition to buy removed by state

37 GOP voted against law to make marriage legal: will Clarence approve?

Maryland investigation identifies 158 abusive priests, more than 600 victims: no jail-free

 

Jan 6 committee ends without action on the instigators of the only US coup: Trump walks

 

Trump needs terrorist donors: "three-time loser" tries again: “Justice never sue candidate

Lost: Every election denier who sought to become the top election official of a state lost

Lost: Lake lost AZ gov bid after Trump backing

AZ voters approve measure to crack down on ‘dark money’: who buys our elections?

Supremes allow illegal racial gerrymanders despite AL, LA, GA judges’ rulings

 

Do not accept packages to reship; refuse unexpected packages; refuse money to reship

We have to ask for inclusive BnB price to find all fees: ask in writing

dollar-stores caught overcharging: shelf and register price different

Patient debt: profit margins top 29% in patient financing industry: Congress allows it

 

Credit bureaus fail to investigate bad reports and mistaken ratings: you must fight them

Most discounts bogus because the same sale price was offered before: fake prices

Airlines caught cancel/delay air travel: $600 million reimbursement fines

 

Allen Hershberg caught selling his own products outside his firm’s list: defrocked

Goldman Sachs caught paying off executive who said toxic workplace for women: sexists  

 

Are home warranties worth the money?

 

Walmart caught killing thousands on opioids: $3.1 Billion fine: stock up: lawyers paid

 

Crypto sales like Ponzi scam: no actual value: as long as assets grow, can function

 

Jobs

Background checks filled with errors keep tenants and employees at disadvantage.

 

Who owns your account now?

Near-historic numbers of young people turning out to vote motivated by their issues

AZ Kelly, NV Masto hold their seats: Trumpists go home unsatisfied

Young women broke hard for Democrats in the midterms

 

Auto repair delays: no mechanics, no parts: shop around or do it yourself

4 college savings plans (529) you can avoid: use the best: MI, UT

How Safe is Your Hospital?

Toledo OH to pay off citizens’ medical debt with tax money

 

Prints of a mangled car crash fetched $85.4 million: end of ‘civilization’ or insanity?

 

 

Miracles:

Using the gene-editing technology CRISPR to treat cancer.

Electric vehicle battery breakthrough enables 10-minute charge time: stay cooler

Cancer vaccine has successfully triggered significant tumor regression

Blood test for Alzheimer’s? Cure?

 

CA survives on bottled water: price escalates: shower at a mansion’s sprinkler system

US to recognize our rights in law to same-sex and interracial marriage: Supremes act?

Iceberg on the loose: area equal to about twice the size of London, the largest iceberg

World’s largest floating wind farm off Norway has become operational: replace oil

Lab Grown Chicken Gets a Green Light From the FDA

 

Karen Bass first woman mayor of LA: 241-year history: won despite 11 to 1 dollars

 

 

 

 

Our Universe is Mind-Blowing

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 instantly at a distance

“It may be that gravity and quantum mechanics are exactly the same thing,” Leonard Susskind

Gravity might induce the collapse of quantum vibrations into 1 quantum state—our world

 

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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