Friday, May 5, 2023

Don’t Borrow Your Own 401k Money

 

Can Congress set a limit on credit card interest rates now at 29.99%?

My bill from Sears shows Citi charging 29.99% on my card balance. Of course I use other means to pay it off in full. But can’t Congress do better than let us be held captive at 30% interest? No one would ever be able to pay it off at min payment of $29 a month. Another card interest is set at 29.74% and my statement says it would take me 15 years and cost me FOUR times the balance to pay it off. I understand that our Congress people actually let the banks set these rates instead of our “representatives.” "Citibank actually drafted the legislation.'' It is no wonder that consumer debt is again overwhelming to most middle-income folks. The average rate is 24.25% and going up. New cars at $50,000 or more will take over 84 months to pay the loan off. These rates were high even before the Fed raised rates for borrowing. We consumers will never get ahead and maybe that is the intent of our Congress people.

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

 

 

Don’t Borrow Your Own 401k Money

Most people who do never get to pay it back and then they end up with less than $100,000 for 20 years of retirement. They lose one of the best savings programs available to working people. You are giving up the Miracle of Compounding on your money so that your $100,000 could have become over 700,000 over time. Even if you do pay yourself back you have lost the time it could have grown. You will never gain back the time. Most plans don’t let you increase your annual contributions so you never get ahead. Your plan will charge you interest plus the usual fee to process the loan. If you were earning 11% on your money and now you are paying 9% as loan interest you are losing the value of the plan. If you’re younger than 59 1/2, you’ll pay a 10% penalty for an early withdrawal from your 401k. You also get hit with taxes if you don’t pay off the loan in time. Some plans have complicated rules so please examine the fine print before using a loan. Finally, question the value of using up your future income. Explore other ways to find emergency funds: a HELOC, a bank loan, selling or hocking your antiques, or even getting family and friends to pitch in.

Realize what you give up: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513

 

Best advice I ever got: “Don’t use a broker/advisor”

This came from my manager at my 2nd paying job—Assistant Director of a bureau of the NYC Health Department. He shared his Fidelity statement where he had his self-directed (no advisor) IRA. He kept contributing to it for over 5 years and had a balance over $200,000. He told me his account was earning over 29% a year for some time and so he didn’t need an advisor. I started investing right away. Later when the earnings of this Fidelity account returned to ‘normal’—under 10%—I moved my money to my brokerage account when I was hired as a manager there. I was assigned a broker and his advice almost cost me my previous earnings. I learned how a brokerage firm worked and soon moved my money to Vanguard after receiving my securities licenses. An account managed by an advisor can rob you of 63% of your long-term earnings. When I need advice about a financial matter, I use Vanguard’s unbiased salaried advisors. Since they don’t sell products, they have no incentive to “sell” any strategy. Later I learned that I am following Warren Buffett’s strategy and advice. Fee-only planners can help too.

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

 

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 and MBA. 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. The stock market provides 11% a year over time: double your money every 7-9 years. Only buy and hold works; timing market is for broker fees.

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

 

Investors Not Seeing Value in Advisor Advice

A new Morningstar study found participants rated advisors “as providing similar value to investment or trading platforms and only slightly above financial media.” The only high value listed was the value of reaching investors about management risk: “advisors are personalizing the risk experience for them in a very tangible manner.” Advisors may monitor risk and reward to keep them in line with an investor’s goals and risk tolerance.” However this can mean an adjustment may not be needed for years in order to coincide with years to retirement dates and maturity. Since most investors are not gamblers, speculators or traders, paying an advisor 1-2% of total portfolio value every year seems like a very high cost to bear? One estimate of life-time advisor fees is giving up “63 percent of what you would have had.”

Rely on Buffett’s advice instead: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

 

Fidelity study of best investment strategy shows “buy and hold”

The best investment results long-term were accounts where the owner was dead or forgot they owned the account. "Fidelity had done a study as to which accounts had done the best at Fidelity. And what they found was..." Ritholtz: "They were dead." O'Shaughnessy: "...No, that's close though! They were the accounts of people who forgot they had an account at Fidelity." Despite countless studies and proofs, most investors and their brokers want to “keep on top of their money.” Our emotions are hurting us when it comes to investment decisions. Of course, it doesn’t help that brokers and advisors only make money by “managing” our account. Even master investor Warren Buffett used “buy and hold” strategy to win a $ million bet from a stock picker using 5 different strategies. His annual report stated that “We continue to make more money when snoring than when active.” (berkshirehathaway.com/letters/1996)

Follow Buffett: https://www.amazon.com/Assets-that-grow-themselves-snoring-ebook/dp/B07BDQB7BD

 

Can ChatGPT Predict How Stocks Will Perform?

Without a long-term test, some headlines are claiming this new AI ChatGPT can predict stock performance. The financial industry has claimed their formulas and research can predict stock success for over a century. That is why people pay stock pickers but few succeed. A ChatGPT study looked at headlines about companies for a year and claimed ChatGPT could predict correctly on “daily stock market returns, but it actually outperformed traditional sentiment analysis methods.” In the past when every Wall Street firm started using the same strategy, it disappeared. But unless you are a day trader with lots of cash, you are not likely to succeed with this new claim over time. Better chance of succeeding comes from Buffett: “... a virtually cost-free investment in an unmanaged S&P 500 index fund – would, over time, deliver better results than those achieved by most investment professionals...” Warren Buffett's astonishing statement comes from his recent bet. He offered $1 million to five of Wall Street's investment geniuses and he beat them with a low-cost stock market index fund from Vanguard. He cites the power of compound interest as a secret to his great returns of over 20%.
https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373


Which kind of investor are YOU?

This is the most important question to answer before you start giving your hard-earned cash to some stranger. The answer and the strategy that follows from your answer will determine whether you are successful. Why? Because your answer tells you whether to follow the market’s ups and downs or to ignore everyday changes and expect an exceptional outcome later. There are basically two kinds of investors: short-term speculators and long-term co-owners of businesses. Speculators are really gamblers who bet their money on a “sure thing” security tip from a broker/advisor or a family/friend. Gambling is fun if you are prepared to lose your entire bet. If you have the maturity to only bet a small part of your total savings, then you are paying for entertainment. On the other hand, if you are buying and holding shares in a company stock or mutual fund that owns securities, you are participating in their successes. You are guaranteed to do better than the speculators. Because you are not buying and selling, you benefit from the Miracle of Compounding. Companies’ shares grow in price AND the reinvested dividends get multiplied. A $250 a month investment ($3,000 a year) grows to about $1.6 million in 40 years. You contributed $120,000 over time and succeeded with over a million dollars. Since no broker/advisor has ever beaten a low-cost market index over time, you want to avoid giving the bulk of your money to salespeople.

https://www.amazon.com/MasterClass-Buffetts-SIMPLE-Strategy/dp/1983485268

 

 

 

 

 

?**********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:

Deficits mount as the rich avoid their fair share: Exxon had best-ever quarter profit

Trump tax cuts and de-funding IRS means only the “little people” pay taxes. $10 trillions

GOP voted THREE times to raise deficit limit for Trump: no spending cuts; no delays

Each tax cut and stimulus put the deficit beyond control: each is expensive

 

Congress allows wealthy to avoid paying fair share of public services so we pay theirs

 

We can’t afford to subsidize just about every business, even foreigners

NASA conquering Mars Jupiter projects costs more: leave “step for mankind” to private

 

SCAMS/SPINS:

TX man kills neighbors, child with AR-15 rifle because they complained of his firing noise

2 teens kill three in PA

4 dead in mass shooting in LA

GA man kills 1; injures 4 at medical center: we just can’t stop killing each other

GA man2 kills 3: self at home and McDonald’s. taking others with you?

 

Right to Life vs 2nd Amendment: surely the Founders did not mean it for killing Americans!

Two pregnant women in distress refused emergency help: state hospitals fear GOP not Feds

 

Recall: flour by Gen Mills 2, 5, 10 lb Gold Medal may have salmonella.

Recall: BMW 90,000 90,000 older vehicles: air bags might explode in a crash.

 

FAA lets Boeing kill hundreds with 737 Max after knew problems

Local gov not the “deep state” takes our property for tax lien as small as $8.41.

Millions of Americans could soon lose their health insurance: GOP dream come true

 

Yellen says we could run out of money June 1: What is your SS benefit date? Tax refund?

SS benefits and Medicare bills paid even in US debt ceiling failure: 1996 law

 

Scammer freezes your screen, asks for money to unlock, you pay, they “refund”, you send $44K

Airbnb Hosts Deceive You: misleading vids, descriptions, check reviews, Google pics, etc

AI audio video manipulation may overwhelm next elections: we have trouble tell real life

TurboTax caught steering customers into paying tax preparation even though qualified for free

 

Supremes get free trips and other perks that can’t hurt when contributors have court case

 

Merrill Lynch caught making calls to do-not-call registry and Merrill’s own do-not-call lists.

Brett Michael Bartlett 7M eGroup Dynasty Toys Caught $21 million Ponzi lied company success

WellsFargo Tyler Rigsbee CA caught stealing client ID, funds, 2nd client funds: 2 years jail

 

Stifel’s Joseph Crespi “subjected his clients to predatory sales practices” for fees: fine no jail

Ways You’re Getting Ripped Off by Outrageous Junk Fees

Brokerage account scam: thief opens account at other broker; asks ACAT transfer all your money

 

TX banned student interaction with elected officials: stop voting DEM: no civics: pre-fascism?

 

DeSantis (and other elites) can conceal travel records from FL public: no media access

FL election fraud police failing to find violators: no voter fraud pattern found in states: just BS

FL expands death penalty reach contrary to Supreme ruling: DeSantis acts GOP follows

FL bans college diversity programs; prevents students using preferred pronouns: 1st Amendment?

 

TX GOP to use paper shortage to overturn election results in Houston Dem: Gov dictate results

TX to end local prosecutor so GOP can jail anyone for any offence: state rules-pre-fascism

GOP now decides which school plays kids can perform: no choice-Board Ed fear state crime

 

Jobs

FL may have trouble getting biz after gov push religion to control what we talk about

A third of nurses considering leaving after COVID-19: overwhelmed and fatigued

Child labor hikes profits: 14-year-olds to serve alcohol in Wisconsin: GOP dreams!

McDonald’s profit higher as 10-year olds serve till 2 am: parents out?

 

I am retired: I appeared in 26 searches this week on LinkedIn: you can have them

US would have sent Seal Team 6 not a drone firecracker if it wanted Putin dead

 

Who owns your account now?

Low to no-cost solutions for getting out of debt: no loans or hidden fees: NFCC 

If you realize you need more money in retirement try some of these suggestions

 

Miracles:

Church bought up $3.3 million of medical debt belonging to 3,355 local families. Wow

High school student turned away from senior prom for wearing a suit: gets own free

 

His sickle cell disease brought agony. Gene therapy is bringing hope.

New urine test can detect cancer early 

 

Brits told to swear to follow Charles and his group for life: curious democracy

Lonely pet parrots find friendship through video chats

 

 

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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

Strange state of physics that allows energy to flow frictionlessly through a material

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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