Friday, August 18, 2023

Why do some investors buy and hold a low-cost stock index funds?

 

Your 401k investments grow TWICE as fast without an advisor

Since there is no proof that an advisor can beat the S&P 500 over time, you are more likely to reach your retirement target without the dead weight of an advisor. Despite what you may hear, a low-cost index account can provide you with 11% per year average returns. That means you can DOUBLE your money every 7 years by not trading, no market timing, neither stock-picking nor advisor fees. You want to use the ‘mediocre’ returns of the stock market because you obtain the Miracle of Compounding by holding an index fund steadily over the years. It may not sound ‘sexy’, but it works. The most successful investor, Warren Buffett proved it with his $1 million bet against a hedge fund guru. The Vanguard 500 Index has returned 11% since 1976 and has made many an independent investor a multimillionaire. Since the fees and charges going to your employer/advisor from your 401k contributions can hurt you over time, you may be better off in your independent IRA or Roth IRA account holding the 500 Index.

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

 

Why do some investors buy and hold a low-cost stock index funds?

Some of my readers say it is because they are convinced their money DOUBLES every 7 years. They avoid paying for advice that most studies say does NOT help their fund’s growth. They don’t need advice to earn enough for a comfortable retirement income. Let’s see what they mean: according to the annual S&P 500 Index rates, a $3,000 investment for 7 years ending 2022 using the inflation-adjusted Compound Annual Growth Rate would provide $7,365—More than double! For 35 years, the total earnings would be $112,497—meeting their goal for retirement funds on just $3,000. Of course many invested $3,000 every year while working, so they will end up with much more.

DOUBLE your money: https://www.amazon.com/Money-Ball-Investing-Winning-unfair/dp/1548831409/

 

What will you do if the market corrects 10-15%?

Some of my readers hold stocks as the majority of their portfolios for life even in retirement. I asked them the question above: What will you do if the market corrects 10-15%? The majority has seen corrections before and says they will not dump their stocks/stock funds. They claim that selling AFTER the correction just puts them in a loss position and then they must decide when and where to re-invest. Since this market-timing mistake usually leaves most with a permanent loss, they have made it a rule NOT to sell if there is a correction. What will you do? Facts: miss top 10 days and lose HALF your earnings; miss top 20 days and lose ¾ your earnings. Since it is difficult to make good decisions twice—sell and buy back—few money managers have done it successfully. A few have done it for short periods and won. However, my readers say that even if they have to give up some of the 2023 14% YTD market gains, they feel better than carrying the anxiety of guessing ‘right’ twice.

Stay the course: https://www.amazon.com/Warren-Buffetts-Investment-Strategy-Forget/dp/1484822900/r

 

Is an annuity right for you?
An immediate annuity pays a monthly (periodic) amount starting now and can provide income for the rest of your life. Insurers set the premium (cost) based upon ½ of the owners dying by about age 84. You give up your contributions even if you have not used them all. The deferred annuity lets you start at a later date, paying a small interest amount until then. Some deferred annuities provide another tax-deferred vehicle if you ‘max out’ your 401k or IRA. Both provide a guaranteed income for life. Both can offer fixed interest growth—no market risk. For extra premium you can buy a guaranteed death benefit. You can pay more for a long-term health care rider. The only problem with all these benefits is that they can burn through a good chunk of your policy account. If you are earning 4-5% on your annuity balance and the costs total 6-8%, you can end up having to add more premiums after inflation has doubled your expenses over 15-20 years. A recent survey shows the average and median (half) retirement incomes are low. Most of us will have trouble living on the income amounts paid by the annuities. Many contracts can unilaterally limit the benefits each year at the discretion of the insurer. There are better ways to receive all of the annuity benefits at much lower cost and the protection of higher earnings that overcome inflation long term.

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

 

It is easy to diversify your investments

Diversity is important for obvious reasons. Even though some gurus can ‘bet the ranch’ on a small number of stocks, ‘super’ growth only last a short time. Like everything the economy changes. Unless you are radically successful like Warren Buffett, you can’t afford to loose half your investment dollars on one collapse. It is true that Buffett bets a lot on a few names over time—Coke, American Express, Procter & Gamble —he also owns many insurance companies that provide Berkshire with $ millions in reserves to invest. He recently bought Kraft and the railroad BNSF. Berkshire is diversified and still earns $ billions each year. You can DOUBLE your account every 7 years and not have to risk anything over time. That is the key to being a successful investor.

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

 

Why is patience another key to successful investing?

Investing is not gambling. When you invest you are buying the securities of actual business firms. Business takes time to make a profit and expand to more customers. Thus when Apple sells more phones, it takes time and money to make, market and sell them. Business people understand this better then anyone else and so typically they are patient in their investing patterns. You may read about a new invention producing immediate $ millions for the inventor, new investors and company executives, but that event is not the normal way most investors make money. As Warren Buffett concluded: "The stock market is a device for transferring money from the IMPATIENT to the PATIENT." Some of my readers have become multimillionaires simply by being patient with their contributions of $250 a month to their low-cost 401k, IRA or Roth IRA. The Miracle of Compounding only works if we leave our investments alone. Proof: Fidelity found that the most successful customer accounts were those that were forgotten or those owned by a dead person.

Let the Miracle work for you: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513

 

 

 

 

 

********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 

 

Aug 1 2023 Trump indicted by the United States of America

Conspiracy to defraud the United States

Conspiracy to obstruct Congressional proceeding

Obstruction of and attempt to obstruct an official proceeding

Conspiracy against right to vote

 

 

Attempted coup d'état by any other name

 

 

Trump and His Gang Get the Mob Treatment

 

Aug 4  “IF YOU GO AFTER ME, I’M COMING AFTER YOU!”

 

 

Aug 14 2023 Trump & 18 indicted by the State of Georgia

 

VIOLATION OF THE GEORGIA RICO (RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS) ACT SOLICITATION OF VIOLATION OF OATH BY PUBLIC OFFICER.

 FALSE STATEMENTS AND WRITINGS

FALSE STATEMENTS AND WRITINGS

SOLICITATION OF VIOLATION OF OATH BY PUBLIC OFFICER

SOLICITATION OF VIOLATION OF OATH BY PUBLIC OFFICER

FALSE STATEMENTS AND WRITINGS

IMPERSONATING PUBLIC OFFICER

CONSPIRACY TO COMMIT INIPERSONATIN PUBLIC OFFICER

FORGERY IN THE FIRST DEGREE

 CONSPIRACY TO COMMIT FORGERY 1N THE FIRST DEGREE

 

FALSE STATEMENTS AND WRITINGS

CONSPIRACY TO COMMIT

FALSE STATEMENTS AND WRITINGS

ATTEMPT TO COMMIT FALSE DOCUMENTS

CONSPIRACY TO COMMIT FALSE DOCUMENTS

FORGERY IN THE FIRST DEGREE

CONSPIRACY TO COMMIT FORGERY THE FIRST DEGREE

FALSE STATEMENTS AND WRITINGS

CONSPIRACY TO COMMIT FALSE STATEMENTS AND WRITINGS

CRIMINAL ATTEMPT TO COMMIT INFLUENCING WITNESSES

CRIMINAL ATTEMPT TO COMMIT INFLUENCUYG WITNESSES

CRIMINAL ATTEMPT TO COMMIT FALSE STATEMENTS AND

SOLICITATION OF VIOLATION OF OATH BY PUBLIC OFFICER

FALSE STATENIENTS AND WRITINGS

FALSE STATEMENTS AND WRITINGS

 

FALSE STATEMENTS AND WRITINGS

FILING FALSE DOCUMENTS

SOLICITATION OF VIOLATION OF OATH BY PUBLIC OFFICER

FALSE STATEMENTS AND WRITINGS

CONSPIRACY TO COMMIT SOLICITATION OF FALSE STATEMENTS AND WRITINGS

INFLUENCING WITNESSES

 CONSPIRACY TO COMMIT ELECTION FRAUD

CONSPIRACY TO COMMIT ELECTION FRAUD

CONSPIRACY TO COMMIT COMPUTER THEFT

CONSPIRACY TO COMMIT COMPUTER TRESPASS

CONSPIRACY TO COMMIT COMPUTER INVASION OF PRIVACY

 

CONSPIRACY TO DEFRAUD THE STATE

SOLICITATION OF VIOLATION OF OATH BY PUBLIC OFFICER

FALSE STATEMENTS AND WRITINGS

FALSE STATEMENTS AND WRITINGS

PERJURY

 

 

 

Jan 2025 Dictator pardons himself: his Supremes agree

 

 

How Govt wastes our money:

Closure child care programs: force parents out of work, disruptions for businesses

schools are building housing where teachers can’t afford housing: SF, Austin

6.5 million students chronically absent during the recent return to in-person instruction

 

The Ins And Outs Of The ‘1035 Exchange’: rich pay no tax on property transfers

NASA wastes $10 Billion Mars Sample Return mission: could find healthy life here

NASA wastes $7.35 Billion on10-Year Lunar Architecture: but brains fade in space

 

SCAMS/SPINS:

Robot war underway: Kyiv drone strikes Moscow: Putin’s war felt by Russian polity

 

Russia’s new history textbooks teach Putin’s alternate reality: Civil rights are so tenuous 

Florida new textbooks teach DeSantis alternate reality! Civil rights are so tenuous 

AR warned high schools not to offer advanced placement on African American history.

 

DeSantis forces Climate-Denial Videos on school kids: dangerous propaganda

Distorted teachings used in FL’s elementary, middle, and high schools: political Right

The first public school teacher in Georgia fired by “divisive concepts” laws: reading book

IN prohibits teachers calling students by their preferred name: anti-gay bill broadened

 

GOP mobsters: DeSantis’s ‘slitting throats’; Trump’s ‘If you go after me, I'm coming after you

Trump’s mob wants blood: Grand jurors in Georgia Trump case face threats, racist attacks

 

DeSantis pays $95K to ‘nonprofit’ evangelical group which holds presidential candidate forum.

FL almost 7,000 teaching positions and more than 5,000 support staff positions vacant: few teach

 

Trump vs mobster law: Georgia's racketeering law: Trump appeared to threaten Raffensperger

 

6 Mississippi police officers tried to cover up their torture of 2 Black men

 

Recall 42 models of Chinese dehumidifiers sold under five brand names: fires

Recall: Toll House "break and bake" chocolate chip cookie dough: wood chips

Recall: 168K 2022 and 2023 Tundra and Tundra Hybrid trucks: plastic fuel tube fire

Michigan mom is charged with buying guns for son who threatened top Democrats

 

Doctors have to pay fees to insurers to get paid: smaller practices going under or sold

Financial advisors taking over 401k retirement benefits will cost more than your 401k

Scammer claims bank employee seeing fake card charges: couple gives codes; loses 22K

 

Freedom Mortgage caught: illegal incentives to real estate brokers and agents: fine no jail

 

Burglar Reveals 15 Trade Secrets

 

‘Text With Jesus’: AI experiment shows how actual election may fail


Shoddy AI guidebooks, deceptive reviews, flood Amazon: brand names best

 

Religious Crusaders Fighting for Abortion Rights: abortion access part of their faith

 

Jobs

Chip makers needed

Full-time drivers will earn close to $170,000 in annual pay and benefits 

Which U.S. Workers Are More Exposed to AI on Their Jobs?

 

10 fastest growing jobs

14 Major Employers That Offer Part-Time Jobs With Great Benefits

 

 

Who owns your account now?

96% of retirees make this mistake when claiming Social Security benefits

Lack of estate planning leads to family feuds

 

Buy sign: rise in homes going into foreclosure: take over low-rate mortgage?

12 Electric and Hybrid Vehicles That Get a $7,500 Tax Credit

Tactics To Raise Your Credit Score

 

Insureds love to list lightning as the cause of loss (no payment) when it isn't: check it

Certain acid reflux drugs linked to higher dementia risk

More you walk, the lower your risk of death, even if you walk fewer than 5,000 steps

Only 9% folks ate recommended amount vegetables; 12% ate recommended of fruit

 

Five steps for vetting a news source: AI makes finding facts more difficult

 

Miracles:

Human-contribution to heat kills hundreds of cows in Iowa

Is there a fifth force of nature: electromagnetic, 2 nuclear, gravity/dark matter 

Targeted cancer therapy soon available to certain patients advanced pancreatic cancer

 

Woodstock photos: Aug. 15, 1969 a pivotal moment in popular music history.

Sound waves destroy tumors; keeps cancer from coming back

Scientists have invented a paint that could replace air conditioning and heating

 

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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.

A ‘particle’ is an event; not an objective thing. This event is set of complex relationships.

 

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

 

Stars fueled by the self-annihilation of dark matter might have been spotted for the first time by JWST

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.

New method to study systems with long-range interactions: previously puzzling experts

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/ No AI used in these comments

 

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