Friday, April 28, 2023

How to ride out short-term market dips

 

BEWARE: 401K transfers to company pension (an insurers’ annuity)

Recent changes give employees the chance to have someone else manage their money and pay a fixed monthly amount in retirement right with the same employer. You avoid having to find an advisor, pay taxes or move your money. This guaranteed benefit comes with a large cost over time: many 401k plans and pensions have hidden fees that you never see.  Also, most plans have no inflation protection so your $500 a month will buy HALF the same goods in 20 years. Once the monthly payout begins it is hard to obtain your money in an emergency. You will not be able to keep growing your money—payments are for life. Yes, the payments are also guaranteed by the government. The PBGC guarantees pension payments. The PBGC is only a factor if the employer offering the pension goes bankrupt.

Few retirees have warmed to this strategy even though it gives another benefit: that your money cannot be taken by a legal judgment, but this is also true of an IRA at less cost. Having all your old 401k accounts in one IRA means less trouble with taxes, portfolio planning and help when you need it. I use Vanguard because their advisors are non-commission unbiased guides. I can reach them immediately. Most experts agree: rolling your 401(k) balance over to an IRA account when leaving your job is often your best option. An IRA offers far more investment options than a 401(k) plan. These include a full range of exchange-traded funds (ETFs), mutual funds, individual stocks, and other options. And an IRA often costs less than a 401(k) plan pension. Large IRA custodians charge from 0.04% to 0.50% for their funds compared to 401k plan administrators, sales broker/agent and each funds’ money manager. Over time this can cost 2% each year.

https://www.amazon.com/Robbing-You-Blind-401k-fees/dp/1493588966

 

Where is your refund and Where is it going?

Where is my refund? Are you spending it, paying bills with it, or building your $500,000 retirement fund with it? I work as an AARP volunteer tax preparer and I never get the last answer option when I ask. However, our tax refunds are really just forced savings that pay no interest. I explain to some younger filers that they could be creating a retirement fund of HALF a million dollars automatically. I don’t know if they ever actually carry out this option. It is some younger folk’s strategy because it is so easy to accomplish with no pain especially if their employer provides no tax-advantaged plan (401k). I explain: when you get your refund, immediately send it to the mutual fund custodian. Custodians, which may include banks, trust companies, or any other entity approved by the IRS to act as an IRA custodian, keep your money safe. Your can contribute up to $6,500 in 2023. Each year you can add more plus that year’s earnings and grow tax-Free unlike a savings account. Then you pay tax on the portion of income you take out annually in retirement. Or you can choose to skip the tax deduction each year now and receive ALL of your $501,738 with NO income taxes in retirement. Invest $3,000 a year for 27 years ($81,000 total) and double your money every 7-9 years on average. All this can be done automatically with the custodian.

https://www.amazon.com/Tax-Refund-Millionaires-Let-Uncle-Help/dp/149595644X

 

Graduation gift that lasts a lifetime

Show your teen the easy way to be secure: a $ million tax-FREE fund. Make sure you teach your kids how to create wealth the easy way. My parents were not investors. At my first job, I had no clue which investment option to use for my 401k contribution and company match. The HR person told me to put it into the “safe” stable value fund. That was the worst choice at my age I learned later when I got my securities licenses. If I had followed their advice I would have ended up with about $150,000 instead of a Wealth Reserve of $877,233 about 33 years later. I have used this 'Wealth Reserve' as I call it to have funds to buy low-cost insurance, to help buy two homes and 5 cars with higher down payments or cash, and now to receive $2,900 a month in retirement supplement. Now your child can build an account that provides tax-FREE education and retirement income too. Market provides 11% a year over time: double your money every 7-9 years.

Time is on their side: https://www.amazon.com/Give-your-child-leg-up-manage/dp/1096505355

 

How to ride out short-term market dips

The stock market has been resilient throughout its history. Stocks routinely recovered from short-term crisis events to move higher over longer time periods. Time, not timing, is the best way to capitalize on stock market gains. By trying to predict the best time to buy and sell, you may miss the market’s biggest gains. By staying fully invested over the past 15 years, you would have earned $19,215 more than someone who missed the market’s 10 best days. It is impossible to time the market, and those who try generally end up well behind those who just remain invested. There hasn’t been any 14-year period (or longer) when the stock market lost money. You allow the Miracle of Compounding to work if you are fully invested in the market. Compounding is a powerful investing concept that involves earning returns on both your original investment and on returns you received previously. For compounding to work, you need to reinvest your returns back into your account. For example, from 2004 to 2022 you would have a return of 10.39% with dividends reinvested. Without dividends, you would have a return of just 8.2%. Over 30 years, this difference multiplies so that $3,000 invested each year would have produced $619,688. Without dividends at 8.2%, you would end up with just $390,723.

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

 

You need to know these essential financial Facts of Life

How will obtain health care in the future?
How does your 401k or pension work?

Are you overwhelmed by paperwork of benefit options?

Do you have any financial plan?

How much money will you need in retirement for health care expenses?

Most of us have little grasp of the information written by professionals so we can answer these vital Facts of Life. One survey found that only 26 percent have a one-to-four-year financial plan in place. Another seven in 10 have grossly underestimated the amount of money they think the average retirement-aged couple needs for health expenses. Nearly three-quarters admit they had no clue how any of these financial accounts worked when they got their first job. More than half the poll felt overwhelmed by the mountain of paperwork surrounding their benefit options.

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

 

80% of us earn less than 3% interest on our money

Middle class falling further behind on income and assets. First generation to rely on private savings instead of pensions to navigate the financial vortex of retirement.

                                    How can we do better?

Use compound interest—your money makes money on its own if you loan it to a bunch of profitable American companies.

YOU don’t have to do anything. Your money doubles every 7-9 years if you leave it with a low-cost mutual fund of 500 established American companies. 

                        Time is your friend, impulse is your enemy.”

Make 3 buckets of money: money you might need in 1 year, in 5 years, and in over 15 years. The last bucket money will earn 10-11% a year—doubling every 7-9 years. The first bucket is a bank CD paying 5% like the Marcus. The second bucket money is parked in longer-term CDs. Put your money to work so you don't have to.

https://www.amazon.com/DIY-Financial-Independence-Freedom-Workbook-ebook/dp/B07W6RPB24

 

 

 

 

?**********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

 

Trump still terrorizing election woman

 

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

 

January 6, 2021A date which will live in infamy

 

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

 

Dec 3 2022 Trump: cancel Constitution rules so ‘I win

 

Mar 11 2023 Pence straddles his place in history

 

Mar 31 2023 Trump indicted misusing election money

 

Apr 7 2023 One GOP guy decided which drugs we all can use

 

Apr 9 Illustrated Anne Frank book removed by Florida school

 

Apr 21 Trump: “I am your justice

 

 

 

Jan 2025 Dictator pardons himself: his Supremes agree

 

 

How Govt wastes our money:

Federal government is pulling in less tax revenue than expected: guess why?

Taxpayers pay the rich to buy certain EV cars: why not give poor students a break?

GOP to extend the debt ceiling for only a year so they fight over it during election.

We spend more on military than next 10 nations combined: protect world from itself

 

TX tells state workers what they must wear

We pay for Republic failure: 11 banks has $30 billion deposits: bad managers got paid

We paid doctors $128 million in duplicate checks for Vets care: no Medicare controls

 

SCAMS/SPINS:

60 million guns in 3 years: Wild West was never this bad: 6 gun face to face vs 30 rnd assault gun

Tougher gun laws states had lower child visits to ERs compared to more relaxed gun law states.

Another shooting of couple turning around in drive: shooter given OK by police

WA outlaws assault weapons to save lives: 170 mass shootings this year; 8 months left for more

 

9 teens shot at TX prom party: looking for "persons of interest"

 

“Trump’s Army” of terrorist fail to overthrow the government: 2nd time: Trump leading polls

Is MAGA cult the new KKK? Grifter leader, mass hysteria, brilliant speaker, racism, violence

Tucker moving in with Don: new propaganda MAGA FORCE

 

GOP “freedom” ban women’s choice, ban books, ban child labor laws, ban gun controls,

Montana House votes to censure transgender Dem lawmaker: banned from being in building

GOP MT and KY get rid of elected representatives: soon no 1 person, 1 vote Democracy here

 

Confidence in Supremes falls: "little to no confidence" in the Court : court: “F—k you” we’re set

Will Congress help Supremes learn this is a democracy: of the people, by the people, for the people

 

Members of Congress are more Christian — or say they are religious — than the American public

TX to mandate Christian beliefs/rituals in public schools: way to opt out is private or move

 

Chargebacks911 caught helps scammers stop chargeback attempts by victims hit with fraud.

Home Warranty: terrible deals for most: fine-print exclusions that can create major headaches.

https://www.robokiller.com/free trial to block spam on mobile

 

Text message scams draining accounts: job offer then buy supplies, pretend boss asks gift cards

Fraudster bleed victim’s finances in small increments is gaining ground in the crypto space.

Scam: clone a loved one’s voice so kidnapper can demand ransom.

Fabricated statements posted as reasonable ‘truth’: digitally altered storylines

Scam: lenders threatening to sue to collect on expired zombie mortgage debt is illegal.”    

 

Millennials are turning to fortune tellers for financial advice

Average Retirement Savings by Age: $51,000 35 to 44; $90,000 45 to 54; $120,000 55 to 64

 

Recall: 40,000 Silverado pickups over fire risk: brake fluid could leak make fire

No more money-losing GM Bolt EV: you will have to get the EV pickup for $39,900 base

Musk will likely testify about his Autopilot statements: trial over driver’s death on autopilot

 

VT bars teen marriage: must be 18 to marry; considered an adult but not for abortion pills

MI GOP Keep Law Barring Unwed Couples From Living Together: Why?

More book banning: 2,571 titles targeted in 2022, compared with 223 in 2020.

GOP debt bill: weapons, servicemembers pay, rental help for poor, research on cancer: cuts in SS in 2034

 

Uber Eats driver slain, dismembered by FL man who had just been delivered food

Blocked Train Crossings Force Kids to Crawl Under Trains to Get to School

 

 

Jobs

Electricians for all those EV stations and power sources: no oil means more electricity

Lying jobs: congress, car sales, home & stock brokers, lobbyists

Fewer women doctors: Abortion ban states see steep drop in OB/GYN residents

 

$3,000 per hour: lawyers run class action suit: ‘hard seltzer’ buyers get $5

Best 15 Online Tutoring Jobs of 2023

17 Worst-Paying College Majors: 2023

 

 

Who owns your account now?

Hold that home rate: 85% of homeowners have a mortgage rate “far below” 6%.

Which low-cost index are you comfortable with?

Special Needs Trusts Can Help SECURE a 'Stretch' IRA: SNT pays a lifetime

 

44 million borrowers returning to student loan payments later this summer

Best hybrid cars under $30,000:

9 used cars under $15,000:   best and 2nd best in each category

 

Stores don't want your cash: reverse ATMs, put in cash; pop out stored-value cards.

Best Value Public Colleges

Survey of lowest cost mutual fund complexes: is Vanguard the lowest still?

 

Earn Rewards For Paying Rent w/ Any Landlord: no card fee: Ll gets check, ACH

 

 

Miracles:

Congress people and ‘friends’ are exempt from ban on abortions: Elites get way always

Listening and learning to play music could prevent a decline in brain health

Biden phones-in his reelection bid via video: not important enough to do live TV?

 

Wearable patch which uses sound waves to push drugs through skin; less toxicity

Trees are moving north from global warming: Fraser firs could die out.

Pope Francis, a man, gives women right to vote in bishops’ meeting for first time

 

New ‘miracle’ gel may cure brain tumors in humans

Genome project shows how humans fit with other mammals

Cellular reprogramming could delay the onset of age-associated diseases.

 

 

 

 

 

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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

Energy into matter: scientists converted light energy directly into matter in one step

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

Bending light from extreme gravity reveals largest black hole so far

 

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: created our time.

Inside protons, neutrons, it is the fields of the virtual particles that creates its mass.

Gold made from neutron stars: collisions produce more neutrons:79 protons,118 neutrons

The proton is so complicated science still finds new energy entities/forces every year.

 

“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 electron itself.

Scientists build 'baby' wormhole as sci-fi moves closer to fact: inside quantum computer

starts-with-a-bang/universe-expansion-not-accelerating/

 

 

 

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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

http://www.theinsidersguides.com/

Alerts available at http://dankeppel.blogspot.com/

 

 

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