Friday, March 27, 2020

Retirees NOT forced to sell shares for IRS

Retirees may NOT be forced to sell shares for IRS
Congress passed the $2 Trillion bailout bill that may allow retirees to stop selling shares to fulfill the RMD requirements of their retirement accounts. While this measure and others would allow savers to keep more of their savings, waiving the RMD for 2020, the House bill would work in favor of those who don’t need to live off of their IRA or 401(k) retirement funds. This would benefit those who are not living off their retirement nest eggs at the present time. The RMD is calculated on the previous December account balances for all those over 70.5 years of age. We must pay taxes on the gains that have been cut drastically by the C-19 market sell off. To reach the amount specified by our RMD, we would need to sell more shares than we would have had to a month ago. Waiving the RMD requirement for 2020 would reduce the tax revenue this year. Taxes will need to be increased in coming years to pay for the additional $2 Trillion spent by Congress.  

My shares of stock and mutual funds are hanging on
I have increased my shares by NOT selling. The dividends I receive are adding more shares because the share price has fallen. Shares are on SALE. This is why Buffett is buying not selling. Buffett’s companies like Geico are still in business and collecting $ millions in premiums so he has $ billions to buy shares of Kroger, Delta, etc when the price is low for growing firms. Like Buffett I am buying stocks and shares of quality firms while they are on sale. They are on sale because of panic and the fact that some active mutual fund managers don’t want to end the quarter with a big loss. They will say they only lost 15% when the market index is down 25%. So they are selling at a loss which they can offset with some gains. I am not worried about my investment return number for the quarter. I am investing for future income and so when the price goes up, my shares will be worth more. And I will pay no taxes which will surely go up.

GOP uses the virus to give their “friends and family” more of our tax dollars
Did they forget the last time: Big and reckless businesses got bailed out, with no one going to jail, while ordinary Americans lost their homes and jobs? The virus is just an excuse. Some on the right are calling it an act of God--the better to justify their support of massive government spending. One White House official said Trump “doesn’t give a [expletive]” about the plan’s impact on the federal debt. “It’s all about the markets and the economy for him. It’s all about the jobs numbers.” Re-election is the prime driver. The Senate Republican plan to send every household $1,200 for each adult and $500 for every child is an inefficient and ineffective way to stabilize the economy. It’s also a cynical ploy by Mob Boss Trump and the GOP to buy the next election. The better strategy is to get money into the hands of cash-strapped businesses that promise to use it to keep workers on their payrolls. A better effort would be to make sure states can pay all the laid off workers who will need the essentials. Unemployment insurance can’t cover the estimated 80 million workers out of a full-time job. The last time we had millions of unemployed we did something about it: we made work for them. We built buildings, schools, dams and bridges. Dams not coal make electricity.

It took 4 years for the stock market index to recover from 2008 lows
Depending on your portfolio profile, it will take time to recover from this stock market correction. If you use the stock market as your checking or savings account, you will suffer when you sell. If however, you are a long-term investor, just turn your head from the daily gyrations and BUY like Buffett. Last year the stock market gained 31%. The long-term average is still 11%. If you pay your advisor 2% you will have to wait a longer time. If you think of your money in terms of short- and long-term reserves, this correction has no impact on your ultimate goals. John Bogle, founder of Vanguard, said that you can control what you pay for advice not control the market. Giving away 2% of your long-term money will decrease your final accumulation by up to 63%. “Over a 50-year investing lifetime, that little 2 percent fee will erode 63 percent of what you would have had. As Bogle puts it, “the tyranny of compounding costs” is overwhelming.”


Who got rich from the last bailout?
Your tax dollars are going to make many rich people richer. During the last bailout crisis, even the foreign banks and profitable firms got money they did not need. None of them said no. This time Boeing, which killed a lot of people from bad management, got BILLIONS of our money. The whole leisure class industry wants $ BILLIONS including The Boss’s hotels, golf resorts, and global properties. Most of those crying for bailouts had large surpluses from huge profits during the last 12-year bull market. They spent it on themselves—buybacks, CEO bonuses, more jets, etc. Remember, many of these firms have paid no taxes for years. Like The Boss, they have used every trick in the book to avoid paying their fair share. An unbiased analysis of this situation would be that America is a socialist country for the rich. We pay subsidies to profitable firms and have been doing so for decades. Subsidies to the elites is what American is all about. Even our Reps use info illegally. Lobbyists tell our Reps what to subsidize in return for election money. Why are we still providing oil, coal and gas subsidies to profitable companies? Trump pays farm/oil/gas companies when the market price falls. He promises agribusiness price guarantees and support payments to keep that group voting for him. The national debt has surged from $20 trillion to $23 trillion since Trump started. He promised to pay it all off. Instead he has made our tax yoke heavier in the future.


File your taxes for free
TurboTax and other for-profit tax prep firms are due to raise prices soon. If you have your documents, use your favorite software now and file your tax now for refund. The payment, if any, can be in July; the filing should not. Rumors confirmed: filing delayed to July 15. Check your state for deadline. The federal and state filing can cost you nothing at https://apps.irs.gov/app/freeFile/. Another site has no cost or restrictions: https://www.creditkarma.com/tax. And remember you can usually reduce income and thus tax by making a deductible contribution to your IRA. File now for refund: 90 day interest-free extension if you owe. https://www.irs.gov/pub/irs-drop/n-20-18.pdf


**********ACCOUNTABILITY**************

Like 1776, this period is a test of democracy—do we really want ‘low-IQMobster?


Mob Boss does not care what we learned from the last bailout.


Recurrence likely: Trump promises END restrictions in 15 days to get jobs/economy back.

Leisure industry the last to get help: Unemployed, hospitals, food chain, medical workers first
GOP bill “bad news”: “bailing out the biggest corporations.” GOP: stock “futures down 5%”
Doctors nurses plead for medical supplies equipment: 1 mask must last 5 days!

Same companies that binged on buybacks are in line to receive taxpayer-funded bailouts.

Trump will be “oversight” person: bailout biz friends: ‘fox guarding hen house’

TX using health emergency to force women to have kids they don’t want
TX 2nd gov would rather seniors die than let Wall Street go down. He has ObamaCare!

Who gets our tax money: $2 Trillion is borrowed from our future children/others.
OH gets just $2.1 billion to fight pandemic: Boeing $17 billion to bailout bad managers

SCAMS/SPINS:

4 anti-worker GOP Senators try to kill unemployment funds in the $2 Trillion subsidies law.

Guns and ammo sales up 1,000% in some states: people are scared and may kill you in fear.

Census questionnaire and virus bailout checks are NOT linked: Fake Facebook posts.
Supremes: mental illness not allowed as defense anymore: no one can claim insanity.

Corey Eastman Devon Ortiz Julia Montgomery caught ‘grandparent scam’ on dozens.
Mychal Kendricks NFL caught insider trading on tips from banker jail time
SEC allows failing funds to borrow money from sources not usually allowed.

Insurers retain huge premium bonus as few accidents near zero claims from C-19.
Alexa recording lawyer/client info as more work at home: We can’t delete later.

E-skimming is type of card fraud: hackers plant code in online store takes your cc inputs.



I got Trump’s C-19 postcard telling me to stay out of work at home and no contacts.
Treasury Secretary: 3 million record unemployment claims are “not relevant”: he has job!

Fauci, virus scientist, says “many more weeks” and has been sent away like other experts.
More die from TrumpCure chloroquine poisoning around the world
Trump’s friends get tested while those at risk go without test and told to go back to work.

Jobs
NY, IL, NJ State to shut like CA: non-essential workers stay home
Which colleges actually are worth the cost: few produce income high enough for costs


Work from home computer hygiene: keep hackers out of your life line.

Who owns your account now?
Insurers are looking to protect themselves as financial ground cracks: they buy more insurance
CA: Wells Fargo, US Bank, USB, Citi and JPM Chase defer mortgage payments for three months

Miracle:
How our hands evolved from fish fin! Amazing thing creation!
When we are really alone: survival is being human

Don’t see sickness in CA: Shelter in place means hunkering down at beach/boardwalks.
Streets are empty: we can walk without dodging cars/SUVs: save gas/no pollution!
States are tracking cells to verify social distancing: Big Brother watches for good or evil?

IAN
41 Watchung Plaza, B242
MontclairNJ   07042
973.746.2014
Alerts available at http://dankeppel.blogspot.com/


Friday, March 20, 2020

JPMorgan counting on us buyandhold investors to save them


Turn off your RMD auto-distribution: don’t sell shares now
Those of us with automatic RMD distributions may want to suspend this service temporarily. We have until December 31 each year (unless this is your 1st year) to take the amount required from qualified accounts in order to pay tax on the gains. Taking your RMD at the bottom of the market will cost you more precious shares than previous years. Don’t LOCK-IN your losses! I put an alarm in my cell to tell me to switch RMD distributions back on in July, Aug, Sept, Oct, Nov or December just in case I forget. We must take our full calculated RMD by December 31. Our past schedule is void. Hopefully the market will regain some of its 25% losses by then. You can do this on Vanguard’s account summary page with the link in right column:
Required minimum distribution”

It took 4 years for the stock market index to recover from 2008 lows
Depending on your portfolio profile, it will take time to recover from this stock market correction. If you use the stock market as your checking or savings account, you will suffer when you sell. If however, you are a long-term investor, just turn your head from the daily gyrations and BUY like Buffett. Last year the stock market gained 31%. The long-term average is still 11%. If you pay your advisor 2% you will have to wait a longer time. If you think of your money in terms of short- and long-term reserves, this correction has no impact on your ultimate goals. John Bogle, founder of Vanguard, said that you can control what you pay for advice not control the market. Giving away 2% of your long-term money will decrease your final accumulation by up to 63%. “Over a 50-year investing lifetime, that little 2 percent fee will erode 63 percent of what you would have had. As Bogle puts it, “the tyranny of compounding costs” is overwhelming.”

Why market timing does NOT work
JPMorgan found that the 40 best days accounted for more than the entire S&P 500 return from 1993–2013. If you miss the best days trying to time the best exit and enter days, you end up with returns just above the inflation rate: 3.79%. Buffett says: “The stock market is a device for transferring money from the impatient to the patient.” We need patience while it is going up and going down. “A very low-cost index is going to beat a majority of the amateur-managed money or professionally-managed money.” Why? Because no professional has beaten the market return over time. They say they have but they picked two of their lucky days to market their hype. Research: from 1871–2016, the 5 most positive monthly returns in S&P 500 history came in the 1930s as the U.S. came OUT of the Great Depression Time to BUY: smart money moves to Vanguard.

JPMorgan counting on us buyandhold investors to save them
Speculators who send stocks down by selling to avoid the lows in a panic like the current one are counting on us long-term investors to bail them out according to JPMorgan. Strategists at the bank reckon there’s a good chance that buy-and-hold managers like pension funds, insurers, sovereign wealth funds and the like are ready to stabilize markets with stock buying in order to rebalance their portfolios away from bonds. Stocks have fallen so much that many institutions will be forced to sell bonds to rebalance their holdings. Some analysts say that rebalancing is not necessary since stocks and bonds eventually rebound to their original ratios in the long term. Rebalancing is actually selling winners before their time. It is a form of market timing. Tortoise not hare wins.

How teacher 403b plan advisors get paid
Teachers may be losing HALF their potential retirement funds to advisors and plan sponsors. Some 403b plans are actually annuities with excessive fees—2.5% a year plus recordkeeping fees, maintenance fees and contract fees. You might be contributing a great amount of your salary every year—$4,400 a year—but plans are taking $2,000. If you invested in stocks and your account grew to $500,000 by age 66, you would be paying over $12,000 a year for few services. Services would be in the form of a telephone service center, not a live advisor. Even though your school organization is charged by law to provide fiduciary duty (best options for you), they contract it out to an insurer or other “third party.” There are so many ‘mouths’ to feed that you are left with the crumbs. 401k plans at larger organizations are now repaying their workers after many years of overcharging for retirement fund services. Your teacher union may have already started action against your 403b plan administrator. Robbing you blind.

Who got rich from the last bailout?
Your tax dollars are going to make many rich people richer. During the last bailout crisis, even the foreign banks and profitable firms  got money they did not need. None of them said no. This time Boeing, which killed a lot of people from bad management, wants $60 BILLIONS of our money. The whole leisure class industry wants $BILLIONS including The Boss’s hotels, golf resorts, and global properties. Most of those crying for bailouts had large surpluses from huge profits during the last 12-year bull market. They spent it on themselves—buybacks, CEO bonuses, more jets, etc. Remember, many of these firms have paid no taxes for years. Like The Boss, they have used every trick in the book to avoid paying their fair share. An unbiased analysis of this situation would be that America is a socialist country for the rich. We pay subsidies to profitable firms and have been doing so for decades. Subsidies to the elites is what American is all about. Even our Reps use info illegally. Lobbyists tell our Reps what to subsidize in return for election money. Why are we still providing oil, coal and gas subsidies to profitable companies? Trump pays oil/gas companies when the oil/gas market price falls. He promises agribusiness price guarantees and support payments to keep that group voting for him. The national debt has surged from $20 trillion to $23 trillion since Trump started. He promised to pay it all off.

File your taxes for free
TurboTax and other for-profit tax prep firms are due to raise prices soon. If you have your documents, use your favorite software now and file your tax now for refund. The payment, if any, can be in July; the filing should not. Rumors confirmed: filing delayed to July 15. Check your state for deadline. The federal and state filing can cost you nothing at https://apps.irs.gov/app/freeFile/. Another site has no cost or restrictions: https://www.creditkarma.com/tax. And remember you can usually reduce income and thus tax by making a deductible contribution to your IRA. File now for refund: 90 day interest-free extension if you owe.


**********ACCOUNTABILITY**************

Like 1776, this period is a test of democracy—do we really want ‘low-IQMobster?

Mob Boss: “I don’t take responsibility at all.” ‘I quit’
Mob Boss and his lieutenants have not been tested since it is a hoax
Mobster’s mob will test everyone else but the Boss and VP
Mobster: “The markets are going to be just fine, just fine.”
Mobster’s hotels/clubs get $650/night/SecretService guards
Mobster to hide bad news on jobs: re-election in view



Opioid lawsuit lawyers to get over $3 BILLION: Prosecutors get vote $. Victims get __?

His ‘Hoax’ proves His Wall is not worth the money: businesses still hire undocumented

McConnell’s bailout to his ‘friends and family’: "industries of national importance" Socialism


SCAMS/SPINS:
Trump: My Wall will protect US from coronavirus: except sick who already fly here

GOP asking sitting judges to retire so The Boss can install his kind of ‘justice.’
GOP hinders changes in voting measures to block more Dems casting votes.




GOP conspiracy Jones pushing his products to treat corona: propaganda of worst kind.
Politicians, foreign and domestic, using pandemic to move public fears!
US leadership reached its bottom with corona: Just propaganda game to them.

You can be murdered in your bed by police: ‘The Public’ reported guns in house!
Gun and ammo sales surge in US with coronavirus fears. ‘Better safe than sorry’?

New hack strategy: I got an email from vendor with link to special document: FAKE
William & Katherine Alverson Healthient caught fraud to shareholders shares $4 mil
Stephen Peters VisionQuest caught $10 million ponzi loan notes fraud
Banks claim to help victims IF you can find branch that’s open: Still 24% interest charge
Wall Street Pros are panicking for qtr bonus: smart money moves to Vanguard to buy.

Avoid Alzheimer’s: study shows curiosity and an aversion to conformity keeps brain fit.
Health care sharing ministries policies cost this person $40,000: Saved by ObamaCare.
Hand sanitizer kills girlfriend in deadly fire.  
911 calls to police for toilet paper: OR police complain of calls—use salt-water sponge!

MSC Meraviglia Miami passengers flew home: no one tested before spreading to country
Keep track of all the FAKE virus info: eg: blacks NOT immune to virus; test NOT costly


Evangelicals’ Dead Sea Scrolls are fakes: $ millions spent--faith was not enough. Like Lost Ark

Jobs
An estimated 200,000 nursing positions to go unfilled at hospitals across the country. 
Amazon needs 100,000: corona self-quarantine drives online orders and takeout.

Doctors sleep in basements garages to protect their families. Hospitals full.

Who owns your account now?
Retailers forced to give sick leave: do you go to work sick for pay or lose job?

Miracle:
Out of blood? The “Hoax” causing shortage: BYOB bring your own? We can’t make it.

CA man provides toilet paper to those in need from those who share: Hoarders note!

IAN
41 Watchung Plaza, B242
MontclairNJ   07042
973.746.2014
Alerts 

Friday, March 13, 2020

How quickly can your account rebound from this correction?


How quickly can your account rebound from this correction?
Depending on how much of your portfolio (401k, 403b, brokerage, IRA, Roth IRA, etc) is in stock assets, you could be down 7% or more. A 500 Index fund is still up 8% over a full year while the Vanguard Wellesley Income fund (60% bonds) is up over 9% over 1 year. Your broad diversified asset account may take less than 6 months to get back on track. This is exactly why you invest in different types of assets. You don’t suffer big losses or big gains from any one shock. Over time, stocks produce better returns than bonds or cash or gold or e-bits. If you consider stock investing as gambling, you may have to wait a long time to hit another jackpot. If you consider stocks the safest investment you can make over time, you won’t have to do a thing. If you played your last chip in February, you must now double your bet to get back even. If your stock fund represents your ownership of many businesses, most will keep working through any panic. Buffett: I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.

How can you determine how much your advisor gets paid?
Since there is no industry standard or database for commissions, fees, retainers, kickbacks or other forms of payment, you will never know exactly what your salesperson actually earns. They could create a loss in your account and still charge you $3,000 a year. Recently, one of the sources of information was partially closed. The CFP Board told financial planners that the compensation information was “not very specific or helpful to consumers” and that the best way for consumers to select an advisor is “to have a conversation with their prospective advisor.” But we can’t interview 10 prospects without knowing something about how they charge. “We’re trying for more transparency as an industry, and this is less transparent.” The CFP Board’s consumer website, LetsMakeAPlan.org, is part of a public awareness campaign. Some advisors think the group may have caved in to the whims of the brokerage industry, many of whose advisors also carry a CFP designation. The Board was criticized for not properly disclosing things like customer complaints and criminal or regulatory problems for thousands of CFP designation holders on its consumer website. It took me a long time to find an advisor that charged only a fee for a financial plan/advice for a client. Most charge 1-2% annually of your balances plus fees for packaged products like annuities. It’s your money.

How much government do we want?
Elections are about choices: what to do with our tax money? If you believe social benefit programs are needed to help people you vote Dems in. If you believe corporate and wealth benefit programs are needed to help business and the asset class you vote GOP. Socialism: Trump is now helping some businesses and not others. Welfare for the rich or welfare for the poor, both have succeeded in driving up our public debt and the size of government. Subsidies to the elites and to the needy have never been contracted only expanded. Why are we still providing oil, coal and gas subsidies to profitable companies? Trump pays oil/gas companies when the oil/gas market price falls. We don’t get a bailout for our fuel oil/gas bills. Why have we allowed corporations to pay such low wages (same as 1973) that full time employees must beg for food stamps to survive? Why doesn’t government protect us from unwanted robo calls, opioid drugs and nicotine e-cigarettes? We allow the wealthy to avoid taxation through expensive tricks we can’t afford. When will everyone pay their fair share for their subsidies? Only now is Washington State repealing Boeing’s subsidies. Why is a ‘capitalist’ system paying profitable companies socialist subsidies? Give bailout to taxpayers!

SEC lawyers create more obscure annuity ‘disclosure’ form
The new “reader friendly” variable annuities summary prospectus and rules were supposed to improve investors’ understanding of the complex contracts but actually prove the need for real-ife testing. This charade “illustrates why we shouldn’t leave the job of developing disclosures to securities attorneys. The model they developed based on the proposal is 16 pages of small type and legalese,” CFA Director Roper said. “Had they bothered to test it, I am confident that they would have learned that much work was needed to make these documents both more readable and more visually appealing. But they weren’t willing to do that, perhaps because they didn’t want to hear what investor testing would have told them about the need to go back to the drawing board." Insurers were thrilled with the way SEC lawyers can obscure the tricks insurers use to make sure an ordinary person could never understand how their annuities work.

File your taxes for free
TurboTax and other for-profit tax prep firms are due to raise prices soon. If you have your documents, use your favorite software now and pay your tax due on April 15. The payment, if any, can be in April; the filing should not. The federal and state can cost you nothing at https://apps.irs.gov/app/freeFile/. Another site has no cost or restrictions: https://www.creditkarma.com/tax. And remember you can usually reduce income and thus tax by making a deductible contribution to your IRA. 


**********ACCOUNTABILITY**************

Like 1776, this period is a test of democracy—do we really want ‘low-IQMobster?

Mob Boss: my employees see “I have natural ability” in medical expertise.


This is how the GOP plans to stay in power? Is 6 hour wait enough to forsake democracy

IRS to delay tax filing deadline so refunds can be used for corporate bailouts
National Emergency? House Dems act to get help to people directly


SCAMS/SPINS:
David Goldman Brook Church-Koegel Nicole Walker caught in $1.2 billion Woodbridge Ponzi
China says new corona cases falling: open Wuhan airport shortly?

Aliera Healthcare deceived buyers of health ministry plans with few benefits.
Judith Negron caught Medicare fraud $200 million from elderly set free by Mob Boss.
Michael Williams Kinetic caught raised $39 million fraud: promised high yield
Epidemics are usually not included in standard travel insurance coverage


“It [The Hoax] will go away. Just stay calm. It will go away,” Dr Trump said
Trump cancels CDC advisory to seniors: fly at your own risk of corona
"There's no good reason to use masks except you think you're doing something” 

Pence claims corona more lethal than flu: expects “thousands of more cases.”




Jobs
More jobs in 2020 before virus: Key number: 273,000 jobs in February.

Who owns your account now?


Miracle:
Older adults were 67% less likely to die of any cause if they walk 30 min a day

IAN
41 Watchung Plaza, B242
MontclairNJ   07042
973.746.2014
Alerts