Kareem Abdul-Jabbar says, I Hired an Idiot to Manage My Money
Do you ask your family/friends for advice? Watch out!
“I chose my financial manager, who I later discovered had no financial training, because a number of other athletes I knew were using him,” he wrote. “That’s typical athlete mentality in that we’re used to trusting each other as a team, so we extend that trust to those associated with teammates.” This type of thinking extends into everyday advice, when friends and family offer well-meaning tips on subjects they may not be particularly informed on, or recommend an unqualified financial planner who has duped them into trusting them. “Consequently, I neglected to investigate his background or what qualified him to be a financial manager,” Abdul-Jabbar continued. “He placed us in some real estate investments that went belly up and I came close to losing some serious coin.”
Friends recommended Madoff too.
Members rely on their own common sense: http://www.amazon.com/Do-Yourself-Personal-Finance-commissions/dp/1480156493
IRS ignores $400 billion tax evaders--goes after the poor instead!
The IRS's data-detection tools come nowhere close to collecting the $400 billion in tax dodges estimated to take place each year. The area in which its robo-audits have had the most impact is on tax returns for low-income taxpayers, especially the EITC.
Starting this year, the IRS will track all credit card transactions. The agency has also instructed agents on using online sources such as social media and e-commerce sites including eBay, as well as the rich data generated by mobile devices. Your profile will likely include shopping records, travel, social interactions and information not available to the public, such as health records and files from other government investigators.
Unfortunately, the IRS ignores questionable euro debt swaps (unlisted derivatives) with no clear economic purpose beyond tax avoidance. Even if it is detected, agents face a team of lawyers in a Liechtenstein bank. Often, the IRS ignores this $5 million tax loss because of the low odds of collecting.http://finance.yahoo.com/news/irs-data-snares-mostly-low-171239433.html
By the way, the IRS thinks it is doing a great job: “… we continue to make our mark as the finest financial investigators in the world,” CI head Weber said. Remember, 2/3rds of corporations pay no tax because they have lobbyists in Washington .
Isn’t time you took advantage of tax laws and paid your fair share? http://www.amazon.com/Only-little-people-pay-taxes/dp/1478222441/
Need a graduation gift?
The Simple Financial Life consists of five actions. You don't have to be wealthy or a genius to become financially independent. This book will show you how to live the Simple Financial Life: Use only 3 mutual funds to reach ALL your financial goals.
Buy the best tax shelter. No taxes ever and it's FREE. Start them out right.
Protect your family and assets with your Wealth Reserve. Borrow from your own 'bank' to pay for large purchases. Stop wasting $3,000 or more on the financial products you now own. Manage your investments in 15 minutes. Buy whatever you need at a discount. Practice the FIVE actions for financial freedom:
http://www.amazon.com/Simple-Financial-Life-paycheck-paycheck/dp/1441499326
Buy the best tax shelter. No taxes ever and it's FREE. Start them out right.
Protect your family and assets with your Wealth Reserve. Borrow from your own 'bank' to pay for large purchases. Stop wasting $3,000 or more on the financial products you now own. Manage your investments in 15 minutes. Buy whatever you need at a discount. Practice the FIVE actions for financial freedom:
http://www.amazon.com/Simple-Financial-Life-paycheck-paycheck/dp/1441499326
Best performing college savings plans
You can use the best 529 plan for your child or grandchild even if you do not live in that state, especially if your state gives no tax deduction for your contributions. The best for over 10 years is Alaska ’s plan. Direct purchase plans avoid broker fees so ALL your money compounds for you—up to 40% larger account.
Do you need monthly income from your nest egg? The annuity alternative!
Ever wish you could put all your money in one fund for your retirement income and growth. In the last 30 years, this mutual fund had negative returns only 4 times compared with the overall market’s 6 drops. The worst year was 2008 with a downturn of 9.8% compared with the market’s drop of 39%. The overall average was a gain of 10.2% per year. Not bad since the market’s average was just 10.7%. This fund has averaged over 10% since 1970. It holds 60% in bonds for income, 40% stocks for growth. It costs just $25 vs $100 per $10,000 invested in comparable funds. The Vanguard Wellesley Income fund can provide your checking account with a fixed monthly income just like an annuity, which usually costs TEN times more. Annuities lose value over time due to inflation—your $1000 a month buys $500 worth of food in 20 years. Wellesley ’s stocks keep your account growing so you can increase your monthly income without paying for another annuity.http://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573/
What will your next hospital visit cost?
The data provided here include hospital-specific charges for the more than 3,000 U.S. hospitals that receive Medicare payments for the top 100 most frequently billed discharges for Fiscal Year (FY) 2011. “Fun” to read and avoid a visit: http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/Medicare-Provider-Charge-Data/index.html
Check your credit reports for your parent’s old problems
I just got my annual credit reports from https://www.annualcreditreport.com/cra/index.jsp
NOT the misleading one: http://www.youtube.com/watch?v=xZ0xsF5XWfo. I found that Experian had added two old credit problems my parents had fixed years ago to MY credit report. Since they were negative reports, I just got turned down for credit. Since our “representatives” in Washington won’t make the bureaus check the misreported data BEFORE they put it on our reports, we must spend hours trying to fix it. I had to get my parent’s old lawyer involved to motivate the government agency that sent in the mistake to withdraw the error from the bureaus.
On second thought, maybe you don’t want to check your reports. I really dislike spending my time fixing their mistakes.
Penn Treaty long-term care insurer under PA plan
Pennsylvania Insurance Commissioner Michael F. Consedine has filed rehabilitation plans in Commonwealth Court for long-term care insurer Penn Treaty and its subsidiary, American Network Insurance. The rehabilitation plans attempt to address Penn Treaty and ANIC’s liabilities through benefit modifications on a temporary basis, possible premium rate increases, and several other measures. Should the companies’ assets and future revenues become more than adequate to meet future policy obligations, the Rehabilitator may begin restoring those benefit modifications. Before you buy, consider alternatives:http://www.amazon.com/Long-term-Care-Insurance-better-alternatives/dp/147006877X
SCAMS “Deficits don’t matter” GOP grandfather, Dick Cheney, 2002
Mutual fund misled buyers
Regulators have charged Northern Lights with misleading shareholders about their decisions on hiring investment advisers for the funds. For instance, the board told shareholders that advisers' fees were competitive with those of similar advisers when, in fact, they were twice as high. Fees are not clearly shown on quarterly statements so there is no way to know how much you are paying.
Billionaires’ new tax dodge—insurance!
The latest tax loophole exploited by hedge funds involves the reinsurance business. A whole host of billionaire hedge fund managers have started Bermuda-based reinsurance companies since 2011, according to Bloomberg. By sending money through these companies, the hedge funds recycle it and reduce personal income taxes and delay the eventual tax bill. Normally the managers would be paying either ordinary income taxes (39.6%) or long-term capital gains taxes (20%). Other favorites are incorporating and partnerships. These help wealthy get around the millionaire tax (AMT) that is supposed to collect 39.6%.http://news.yahoo.com/7-secrets-wealthy-people-know-133755925.html
Who owns your account now?
Aviva USA ’s life insurance business to Commonwealth Annuity and Life Insurance.
IAN
41 Watchung Plaza, B242
973.746.2014
No comments:
Post a Comment