Friday, July 14, 2023

Retirees HATE to spend down their nest eggs … But

 

Retirees HATE to spend down their nest eggs … But

Many folks who have already accumulated large retirement asset portfolios have a hard time switching to a de-accumulation mind set. One I know was forced to change their thinking about spending instead of always saving/investing. That person found out they had cancer at age 74 so they had to change their attitude from growing their nest egg to allocating their nest egg in a structured way. A will and estate plan was re-configured to make sure his family members were able to meet their life goals. New medical expenses and final expenses were recalculated. Any long-term goals had to be revised with immediate contingencies. Family property disposal had to be re-thought. Actually, 2 new plans—short- and long-term had to be devised to match the unknown date of a cancer death possibility. This person started taking out more money from their nest egg than their RMD required in order to match current and future family needs. Their debts and prepaid expenses were part of their new plans. The family tried to cope with this new reality by sharing more of the family money roles—investor, bill payer, household expense planner, etc. They reset their income expectations with their lawyer, financial planner and accountant.

https://www.amazon.com/Reset-Your-Retirement-Income-retirement/dp/1512304344

 

Why is it important to lower your investing costs?

As John Bogle, founder Vanguard Group put it; “the tyranny of compounding costs” is overwhelming. “Over a 50-year investing lifetime, that little 2 percent fee will erode 63 percent of what you would have had.” If you invested $250 per week with your advisor, you would eventually pay more to your advisor than earn yourself: $2.9 million to advisor;  $2.6 million to you. You could have had $5.5 million if you invested in a low-cost S&P 500 index fund over time. The plain index long-term total return is 11.06% vs 3.79% for a managed fund. Cut the middle person—they get more than you do.

The choice is yours: https://www.amazon.com/Millionaire-Mutual-Funds-Save-taxes/dp/1534939490

 

Why your advisor may not be paying attention to your account

Your advisor’s firm may be choosing to serve only their wealthy customers. For instance, Schwab customers with more than $1 million are now served by Schwab Private Client Services, while those with $10 million are now enrolled in Schwab Private Wealth Services. These clients now have “access to a dedicated Schwab consultant” at no additional cost. With the move, the firm joins its rivals in carving out special service models for the wealthiest retail clients. Through June 2023, the HNW and UHNW client segments have grown to represent more than two-thirds of the firm’s total retail client assets. Schwab states that clients with more than $1 million accounts have grown at a rate of more than 10% annually over the last five years, while clients with more than $10 million at the firm are growing at a rate of nearly 20%. How much does “having access to a consultant” cost? The fees for Schwab private client are steep: First $1 million; 0.80%:

Next $1 million (more than $1M up to $2M) 0.75%: Next $3 million (more than $2M up to $5M) 0.70%: Assets over $5 million 0.30%. So if you can easily reach your advisor for less than $8000 a year, you may have found a bargain. If you can’t reach your advisor you may use a financial planner for a set fee based on usage and leave your $ millions to compound in a low-cost 0.015% index fund.

https://www.amazon.com/Personal-Finance-Online-Cut-middle-person/dp/1500522120/

 

Will you have to work after your ‘official’ retirement?

A new Nationwide study says over two-thirds (69%) of non-retired investors may work or may continue working after they retire, and more than two-fifths of these investors (44%) say they’ll have to work to supplement their retirement savings or income out of necessity. Two-fifths (40%) of non-retired investors plan to move to a different city or region after retiring – though perhaps not for the reasons some may think. Less than a quarter (22%) of these individuals cite being near family among their top three reasons for relocating. The most common incentives for relocating include lower cost of living (43%) and lower taxes (34%), which may indicate that these investors’ decisions are being influenced by macroeconomic factors. Most states don’t tax Social Security benefits, and the list of states that do is shrinking. In 2021, 13 states taxed Social Security. Now it’s down to 11. And most of the states that DO tax Social Security offer waivers and deductions to ease the burden. Other taxes to consider include property, utilities and sales of goods and services. Another reason to keep working cited by 60% said staying physically and mentally active and 41% aim to preserve a sense of purpose in their continued employment.

A little planning goes a long way: https://www.amazon.com/Are-you-ready-retirement-worst/dp/1491002662

 

Is your advisor calling their standard “model-portfolio” a “personalized” one?

You need to be alert to the fact that many advisors use these factory-made set of funds, ETFs and securities to lower their costs but keep the price high by marketing them as “personalized” just for you. Of course the larger money funds like Black Rock, Vanguard and Schwab are driving their revenue higher as their costs decline. They can duplicate “model-portfolios” at almost no cost. Your advisor’s firm drives down its costs by buying the standard kit in bulk. So you may be overcharged for very little creative ‘professional’ security selection. If you were to get to see the other client portfolios at the firm you may see how alike they all are based on your risk tolerance. You could skip this marketing step by forming your own comprehensive portfolio using the Ten Best low-cost Vanguard funds. These 10 have provided over 11% returns for 20 years.

 

2022 Total Return Vanguard Fund   Long-term Return      Longevity

-19.8% 500 Index                                            10.8% since 1976

 24.0% Energy                                                   9.4% since 1984

-26.4% Extended Market                                 10.0% since 1987

 -0.8% Health                                                   15.7% since 1984

-30.1% International Growth                            10.2% since 1981

-14.9% PRIMECAP                                        13.4% since 1984

 -9.5% Small Cap Index                                   10.6% since 1960

-8.8% Wellesley Income                                     9.3% since 1970

-2.9% Windsor                                                11.3% since 1958

-12.9% Windsor II                                           10.7% since 1985

-10.2% Average                                               11.1% *

            *Average Annual Returns as of 12/30/22

 

https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

 

 

 

 

 

 

 

?**********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 govt overthrow 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 can use

 

Apr 9 Illustrated Anne Frank book removed by Florida school

 

Apr 21 Trump: “I am your justice

 

May 9 Trump guilty of sexual abuse

 

Jun 8 Trump indicted by the United States of America

Violation of the Espionage Act

Conspiracy to obstruct justice

Making false statements 

 

 

Jan 2025 Dictator pardons himself: his Supremes agree

 

 

How Govt wastes our money:

Most active tax cheat wants those who are caught to get the death penalty

NASA’s JWSTelescope $10B proven worth with images of the cosmos: really?

 

SCAMS/SPINS:

AI-generated content could account for 99% of all information on internet: what is real?

Corporate money in our elections: votes overwhelmed by money from vested interests

GOP allows anyone to challenge GA Dem voter in order to keep Dems from 2024 vote

 

H&R Block TaxAct TaxSlayer sold your tax data to Meta and Google: you got nothing

 

Johnson & Johnson misusing the bankruptcy system to avoid 40,000 cancer lawsuits

Monmouth Capital Management caught trading/disclosure misconduct: expelled 

Army counselor Caz Craffy churned Gold Star families, fallen service members accounts

Student loan firm Prehired caught: deceptive marketing and debt collection practices

 

Luke Johnson caught sold illiquid alts; inappropriate forms; forged docs. defrocked

James Yeh and Kenju Go stole $22.5 million fake crypto sites, victims from dating sites

Bank America double-charged fees, withheld credit card perks, opened accounts illegally

Raymond James overcharged clients: $75 minimum charge, regardless of commission. 

 

David Geake IL tricked client to invest in startup the rep owned: client lost $2.5 million.

Rao Garuda OH caught illegal scheme Advanced Legacy Plan or the Ultimate Tax Plan.

Alex Mashinsky Celsius defrauded thousands misleading them about his business: arrest

 

Barclay Bank NOT responsible for customer loss in fraud since payment was authorized.

Trump required income disclosure

 

Teens buying ghost guns online: manufacturers have made it easy to get armed

 

7-year-old FL killed by gang shots as watched fireworks: no suspect

87-year-old NY killed 3 hurt by scooterman: caught with large magazine gun

 

Ford Escape probe: door may inadvertently open while driving.

Tesla owners are using steering-wheel weights to drive hands-free: time to miss hitting us

Consumer Reports Scam Protection Guide

IMF shows poor track record at forecasting recessions

Farmers Insurance quits Florida auto-home coverage

 

‘Freedom’ Caucus not like ‘freedom’ to use ‘free speech’: “little bitch” Greene banned

Gal Luft, GOP witness against Hunter Biden is a Chinese agent: witch hunt goes nowhere

Trump asks for another delay in trial for violation Espionage Act : Delay delay delay

 

Supremes allow religion to fire people: religious excuse for discrimination against all?

New conservative group is taking Christian nationalist politics local: lobby school boards

 

 

Patrick Wattigny caught molesting kids: promised gain entry to heaven: 5 years

 

30 Best Films of All-Time: old new; drama digital; comedy tragedy. 100 score movies

 

Jobs

Jobs That Provide Housing may help launch career

Skilled jobs to be most impacted by AI ‘revolution’:  law, medicine, and finance

 

 

Who owns your account now?

Total Return by Asset Class

Best Interest Rates on Cash – July 2023

Fees, competition driving out money management biz: big managers buy smaller

 

Investors’ transfer of wealth—from their own wallets into those of active managers.

Home Upgrades That Rarely Help Close a Sale

Southern Wealth Management to Captrust Financial TX

 

Private 5Gs: pop-up 5G networks at festivals, sporting events and construction sites.

 

Miracles:

Texas generates more electricity from wind and solar than any other state. 

GA church for those unwelcome by traditional church: she is loved for being who she is

 

30% American households comprise a single person, a record high: estranged world?

Food and Drug Administration approved first over-the-counter birth control pill

 

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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

In place of atomic lattice, light waves used to create an optical lattice with same geometry

Physics Nobel Prize: “entanglement” 2 particles share info instantly at a distance

Quantum mechanics violates local realism: two objects behave as single system at 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

Curved SpaceTime: heavy masses and simultaneously quantum effects become visible

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.

Our planetary system: rarest system: only 1% of all systems with same number of planets

 

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/

Physicists knew black holes eventually disappear particle by particle. Now they think everything else does, too

Astronomers discover raw materials for life are present all across the Universe: methyl cation

 

 

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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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