Friday, October 28, 2022

What does spending look like in retirement?

 

What to buy in a bear market

If you are holding a broad-market balanced set of assets, like Vanguard’s Wellesley Income Fund, you have seen the results of a bear market before. Living through economic hard times makes you appreciate owning a little of everything because you learned your lesson before. Market timing and stock speculation don’t work. Very few ‘professional’ investors have been successful. Patient investors always are better off in the long run. No segment or sector will save you all the time. Even those that have fallen far Apple, Microsoft, Amazon, Alphabet, Meta and Nvidia—have not given up their special value proposition. Everyone I know is still using their products and services. So it is unlikely that a bear will eat the next bull. What some investors lack is patience. Warren’s maxim: The stock market is a device for transferring money from the impatient to the patient. 1/3rd of the assets of millionaires are held in either cash or bonds: 53% are stock assets. Remember, you got through the 2007-8 chaos and still earned 12.49% a year. Your holding period could be forever.

https://www.amazon.com/Patience-profitable-passive-investments-Street/dp/1986843777

 

 

What does spending look like in retirement?

As you face retirement, what will you buy in retirement? Only 4% of retirees are debt free: most carry credit card debt, mortgage, and car loans. 25% of workers over age 40 have no savings. Most people don’t change their habits much—housing, food, transport, health care, utilities, fun. Most retirees average $52,141 a year. By comparison, the average across all households is $66,928. You won’t need work clothes or commutation to work. You won’t need to keep up your tax-deferred savings/investing plan at work. Health care may take more as you get older. Counting your retirement income sources may help you define the limits of retirement spending. There are expensive loans from the equity in your home. Taking a smaller place in a cheaper town may be another option. Planning in advance can make your retirement much more pleasant. That’s how folks create a comfortable retirement.

https://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

 

Congress to increase the amount we can save tax-advantaged

Congress may increase the catch-up contribution amounts since many workers stopped investing for retirement during the pandemic. New legislation would increase the catch-up contribution limit to $10,000 for older workers contributing to 401(k), 403(b), and governmental 457(b) plans and up to $5,000 to SIMPLE IRA or SIMPLE 401(k) plans. As Americans work and live longer, they need more options for when they begin drawing down retirement savings. This reform gives retirees flexibility and choice by raising the required minimum distribution age from 72 to 75. This change will help many Americans address concerns that they will outlive their retirement savings. The SECURE Act 2.0 would increase the start-up cost tax credit for small businesses to establish retirement plans for employees — and the House-passed version of SECURE 2.0 provides a meaningful new credit for small-employer contributions up to $1,000 per employee. You can save tax-deferred or tax-free.

https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938

 

Are online automated advisor search programs right for you?

There are no-cost online services that make it “easier than ever to find trustworthy financial advisers in your area.” SmartAsset is an example. After filling out a short questionnaire, you are provided with the names of local financial advisers. Some are working for a brokerage firm and some for an insurance company. The questions include how much “investable assets” you have. This is a clue as to the kind of advisor you are likely to be presented with. Some require you to have over $1 million in assets. Most can provide you with sound money management help. ‘Fiduciaries’ are advertised as providing products in your ‘best interest.’ However, if your goal is an unbiased financial plan, you must find a fee-only advisor. Look for one that has a CFP® after their name. They charge a fixed fee because they don’t live on commissions and ongoing fees as advisors do. The list is at their site: https://www.napfa.org/. If you are facing a divorce or change in asset structure, look for a specialist CDFA https://institutedfa.com/find-a-cdfa/. Make sure you know what you want from an advisor since there are many specialists in the field. And be sure to check out their ‘rap sheet’ before you give them your money.

Learn before you commit: https://www.amazon.com/Yourself-Personal-Finance-commissions-charges-ebook/dp/B009VGYWEE

 

Why are TDF the right choice for most savers/investors?

Target Date Funds allow us to do the job of money management at the least cost. And cost is the BEST predictor of success in investing. Many TDF providers increased growth asset exposure to help address shortfall and longevity risk. This follows a similar trend displayed over the last 10 years, a time period that saw low expected returns from other asset classes such as fixed income. For example, the allocation to growth assets at age 25 increased from 89% in 2012 to 93% in 2021, and subsequently to 94% in 2022. Because of the low interest rates of years past, providers have increase credit risk within the fixed income allocation at these stages. Some providers have increased exposure to inflation-sensitive assets, most notably late in the glidepath years. TDF providers have responded to the changes in rates and growth factors to manage our money responsibly.

Cost is more important than market timing: https://www.amazon.com/Best-Predictor-Investment-Success-Cost/dp/1502524082

 

What can you control in retirement if you plan ahead?

Don’t switch to fixed income assets too quickly. You might live another 30 years and bonds or an annuity just won’t cut it. Fixed income assets lose income value over time. Your tax-deferred accounts (IRA and pension) require you to take a fixed amount out each year so you can’t stop that income tax. You can hold stocks and bonds longer since you control when asset gains get taxed. Social Security benefits can be delayed indefinitely if you are still working but your benefits stop growing by age 70. When you reach age 70, your monthly benefit stops increasing even if you continue to delay taking benefits. Securing enough health insurance is in your control since there are many plans that fill in the gaps in Medicare. Depending on where you live and get care, Medicare Advantage or Supplements can cover many needs. Finally, if you have saved enough for a long retirement, you can control your expenses so life is good. 4/5 of us have no written financial plan for retirement so when things go wrong, it’s a disaster.

Plan a great future: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072

 

How to keep your nest egg producing income

There is one proven method of making sure you have enough income throughout your WHOLE retirement. Instead of spending down your $500,000 nest egg—creating an income of $16,666 a year for 30 years—spend only your earnings. $500,000 invested in a low-cost balanced portfolio can provide $30,000 plus COLA a year for as long as you live. As you get older you can spend more than $30,000 a year as you spend some of your principal. How can that work? https://investor.vanguard.com/tools-calculators/retirement-income-calculator This calculator can estimate your retirement income from a nest egg of $500,000 earning 6% and a SS benefit of $1,544 a month or $18,528 in your first year (at current SS levels). Annuity income is usually fixed for 30 years so your allotment will be more at the beginning $3,198 but falls in buying power over time. Since you give up the principal to the insurance company, you may lose money if you die early. Many folks like to have their money for final expenses, emergencies and a legacy.

https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

 

Is direct indexing right for you?

The hot topic for fund managers is “direct indexing.” “Direct indexing, which allows investors to replicate an index by selecting and buying its components, is still a novel concept for many wealth managers.” Not really! This is a putting stock picking into an ‘indexing’ wrap account. More FEES should be the real name. Financial CEOs are averaging $23.2 million in 2021, a 29.4% increase from the previous year. Some money managers call this “Custom Separately Managed Accounts (SMAs), available now for select wealth management firms and institutions.” Firms will “build and manage equity portfolios customized to investors’ needs and preferences.” In other words, you tell them which stocks to pick for you for a FEE. You can have them “tailor” it or “overlay” it to incorporate personal values.” Sounds like trick name ‘indexing’ but stock picking at a higher cost. You pay for the $23.2 million, plus your advisor fees, charge, etc.

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

 

Regrets from retirees

When you are finally retired, the major complaints come down to lack of planning with a professional planner. You may plan to invest aggressively. You may not realize the full cost of housing—rents or maintenance. Retirees overestimate their SS benefits. You don’t bother to nail down your income amounts. Ignoring health care costs not covered by Medicare. You plan to earn more on your investments than actually happens. Some folks are too conservative in the way they invest during retirement. You don’t realize how long you will need income. Inflation of just 3% will reduce your money buying power by HALF. You have to pay taxes on tax-deferred accounts (RMD), pensions, and even SS benefits.

https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

 

 

 

 

?**********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

 

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

 

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

 

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

 

Jan 2025 Dictator pardons himself: his Supremes Agree

 

 

How Govt wastes our money:

Texas Schools Sending Parents DNA Kits To ID Kids After assault-weapon murders

Another underage teen shoots up his alma mater: kids’ emotions and guns don’t mix

Recycling plastic is impossible but gov insists we do it: we separate; they dump in dump

 

Trump trial: $21 million tax break for not selling the forest outside his NYS house

MI gov kidnappers get jail time: failure of terrorist plot to take/kill Dem to start civil war

We are spending $millions to kill people with faster rockets: US China Russia arms race

 

SCAMS/SPINS:

Trump gets subpoena to give his side of the story: he lost but make coup if says ‘stolen’

Secrets Trump stole were nuke intelligence regarding Iran and China: already sold to Putin?

Clarence protects Lindsey from subpoena re: Trump interference in GA election: Ginni happy

AZ GOP leader begs Supremes to stop investigation into role in Jan 6 coup as fake electors

 

CNP Christian Nationalist Party grabbing for power over non-‘believers

Christian Nationalist Party using traditional political rallies selling Holy War propaganda

Voters worried: threats of violence or intimidation at polling stations: armed watchers

Already 100 suits filed contesting Nov election: democracy being challenged at heart

 

Meet the 50 people who are paying for the biased election propaganda: we have 1 vote

From our wallets to their bonus: oil profits soar 3 times amount the last 20 years. Exxon

 

Steve Bannon sentenced to only 4 months for contempt: leader of US coup attempt walks

Judge reads Trump emails: they are part of "a conspiracy to defraud the United States."

GOP voters told to hold onto mail ballots until Election Day to gum up the works

 

SCAMS: cell phone specific scam tactics

Zelle scam ignored by banks: almost like banks benefit from fraud

Steven Xigoros MA caught stole client money, ID, tax fraud, a runner

Cetera caught conflicts of interest: overcharged fees and mark-ups: bribes.

Adam Belardino, Maddox, NY caught stole $313,000 promised investments

JAIME MICHAEL WESTENBARGER caught stole $260,000

 

Misleading audio falsely shows NFL crowd booing Jill Biden: Photoshop audio too

Impostor headline cites false advice for COVID-19 vaccinations, Halloween

 

RECALL: Kia recalling 71,000 older Sportage vehicles: fires parked or moving

Tesla under criminal investigation over claims electric vehicles can drive themselves

 

Microsoft leaked 2.4TB of sensitive customer data: MS mistake; no fine; no jail

 

Judge OKs firearms in NY churches or other places of worship: guns OK everywhere

Lonely child kills with AR-15 war weapon and 600 rounds: “I never had friends”

 

Jobs

Unwelcomed immigrants are rebuilding FL hit by IAN despite gov

Ye trying to gain creds with Nazis: gives up $millions from Adidas

8,100 employees producing up to 300,000 electric vehicles Savannah GA 2025

 

Fixing electric car chargers: 3 in every supermarket need fixing: outdoors, crazy drivers

New semiconductor plants: Biden’s seed money

BMW electric jobs in SC

 

Who owns your account now?

Get it now: Pfizer gouging COVID-19 vaccine: $130 per shot

Home buyers: A record 22% of home sellers had to drop their listing prices in September

Millionaire Sunak first non-white to run Britain: financial specialist but will King allow?

 

Visit Medicare.gov to Dec 7 compare plans: new coverage will start January 1.

Some memberships offer cheaper insurance but some cost more than “shopping.”

Cam Diaz wants you to drink her better wine: but what is better wine? More expensive?

 

Miracles:

Draught: you can walk across the Mississippi in places: water in Philippians

Diabetes, arthritis, and multiple sclerosis trace their roots back to the Black Death

2 drugs may help stop pancreatic cancer before it starts

 

China launched an inhalable COVID-19 vaccine: booster

First-ever female NYC fire department commissioner  

World’s new largest wind farm could power 13 million homes

 

 

 

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 a little

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

 

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.

Inside protons, neutrons, it is the fields of the virtual particles that creates its mass.

“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 election itself.

 

 

@

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

www.InsuranceAdvisorsNetwork.com

Alerts available at http://dankeppel.blogspot.com/

 

Friday, October 21, 2022

What kind of advisor works best for you?

 

Can a couple create an equally-pleasing retirement?

Whatever you are dreaming about for your retirement needs to be discussed with your spouse. Let’s assume you have plans; so your spouse must have plans too. Do you discuss the plans? Do you plan when best to retire? If one of you wants to continue working, this may give you both experiences about your time in retirement. Perhaps waiting to collect SS benefits will up your income by 75% over early retirement benefits. If both of you start SS benefits at the same time, your income tax may increase since benefits are taxed as your income increases. Two income households can save more IF there is mutual planning. Divorce can destroy both of your futures. Spousal IRA doubles tax-advantaged savings. Written plans make them real.

Discussion is necessary: https://www.amazon.com/Maximize-Social-Security-Benefits-Retirement/dp/1495439224

 

Pay yourself or pay credit card industry?

Credit card debt is rising at its fastest clip in more than 20 years, according to the Federal Reserve Bank of New York. Overall, we owe $887 billion on credit cards, a 13% increase from a year ago. With inflation pushing rent costs and food prices higher, will we be able to save for the future or be stuck feeding the financial industry? My credit cards charge 27.24% if I don’t pay the balance monthly so I go back to buying the house brand and using coupons. I can’t afford the pay mob loan rates and still keep investing in my tax-FREE account. I want to make sure I don’t carry a balance since at 27.24% it would take me years to pay off $20,000. We had an emergency surgery charge of $20,750 this month (after insurance!). You must pay doctor and hospital in advance now. We found a new credit card that gives us 0% interest for 21 months on purchases. Some cards charge 5% on balance transfers so those aren’t good for us. Luckily we have a good rating so we qualify to put our surgery charges on a couple of these 0% interest cards. We have 21 months to pay the balance so we can continue to buy stock shares in our tax-FREE account.

Avoid interest and taxes on future income: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072/

 

What kind of advisor works best for you?

Advisors cost money—a lot of money. If you have $500,000, you may be paying $10,000 a year for that quarterly review or quick telephone message. Over a lifetime or long periods of engagement you may be giving up 63% of your potential total nest egg. Fees are guaranteed to the advisor no matter what they do for you. If you need help in making a plan for investing or retirement or whatever, a better deal is to find a professional planner fiduciary that charges one fixed fee. Like a lawyer, this fee usually covers an analysis and a couple of meetings to answer your questions. The analysis can be extensive. Ours was over 50 pages and showed us how our retirement income could last for over 30 years. The fee was $750—reasonable considering no advisor in our area would accept us since we did not have over $1,000,000 for them to “manage.” Most of our money is in stock qualified IRA funds which we don’t want to manipulate or buy products. We were happy with our 9% annual earning.

Look before you sign an advisor: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

 

As repair costs soar, reliability becomes more important.

Here are the 2022 Consumer Reports Auto Reliability Report rankings of major automotive brands:

1. Lexus

2. Mazda

3. Toyota

4. Infiniti

5. Buick

6. Honda

7. Subaru

8. Acura

9. Nissan

10. Mini

11. Hyundai

12. Chrysler

13. Porsche

14. Chevrolet

15. Audi

16. Cadillac

17. BMW

18. Ford

19. Kia

20. Volvo

21. Ram

22. GMC

23. Mercedes-Benz

24. Volkswagen (31)

25. Genesis (30)

26. Jeep (26)

27. Tesla (25)

28. Lincoln (18)

Cancel coverage you don’t need: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

 

 

 

?**********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

 

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

 

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

 

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

 

Jan 2025 Dictator pardons himself: his Supremes Agree

 

 

How Govt wastes our money:

Wealthy avoid paying taxes so they can buy our elections: $20 million buys a lot of juice

There's No Recession In Luxury With Dior, Mercedes Sales Booming

We paid for tech sold to China that helped their advance hypersonic missile program

We give our money to Intel, etc for chip making and they lay off workers: profits balloon

 

Jan 6 Findings are history: do we prefer our version of reality: 2 versions of ‘democracy’

US sliding into authoritarian government LEGALLY just like other former democracies

Will Steve Bannon ever serve a day in jail for giving the House Committee the ‘finger?

 

9 million people and families failed to claim their IRS tax credit payments

GOP House leaders threaten cuts in SS and Medicare: But we paid in already

Supremes have another chance to undermine elections: states not voters can decide prez

 

SCAMS/SPINS:

Thousands lost hundreds of millions in crypto when scamgangs hit Coinbase acconts

Mortgage: mistakenly wire down payment to a hacker.

You may never know why you were denied that apartment: tenant screening scams

Only HALF of us are confident in fair vote counting: Trumpists think OK if win

Gen Flynn now new Billy Graham: Holy War (jihad) Politics is American’s religion

 

Catholic elites caught ignoring abuse of innocents: cardinal and bishop abuse kids

Giving a 15 year old access to a shotgun: what kind of urban society does that?

 

Genworth Life caught unfairly raising rates for 13,400 policyholders

Keith Springer caught using “deceptive marketing” push annuities high fees: defrocked

Stephen Romney Swensen, estate of, caught Ponzi after death: promised 5% guaranteed

 

American Airlines caught taking bogus bag fees: pay back $7.5M lied re credit card perk

ACTIVE Network caught tricking people into enrolling into subscription discount club

Cetera caught misleading clients share class selection/revenue sharing infractions fine

 

Credit Bureaus caught putting/keeping crap data in our credit reports: junk data abounds

 

BEWARE: Cash App Scams: learn the tricks and techniques scammers are using

7 cereals called ‘unhealthy’ by gov: too much sugar and salt

 

Social Security COLA increase may put us in next tax bracket: benefits taxable?

Teachers with emergency certifications, low-income Black neighborhoods get less again.

Twitter: like China's WeChat, a "super app" does video chats, messaging, streaming, payments 

 

Recall baby formula by Abbott who Improperly Sealed Bottles of Similac: profits soar!

 

Putin takes Ukraine kids to make them Russian just like Trump separated kids for US.

British Prime Minister Liz Truss resigns: her last appearance

 

 

Jobs

Good financial jobs expanding

Our vets, generals and admirals work for foreign powers after we pay to train

Remote jobs will get harder to find

 

Who owns your account now?

Can You Back out of a Real Estate Contract? Maybe—each state is different

Medicare options open for 2023: https://www.medicare.gov/plan-compare/

New Abortion Underground

Texas woman nearly died: infection allowed doctors could not perform legal abortion

 

Use your home’s equity wisely: big asset you can use before you sell out

Vanguard had rare month of outflows: most fund owners in for long-term

 

Miracles:

Syria ‘rare’ preserved Roman mosaic in former rebel stronghold

On-site renewable energy: a revolutionary bladeless wind energy: quiet no solar panels

Now we can buy hearing aids over the counter: do your research for $200 value

Cancer vaccines could be ready by 2030: uses mRNA nucleic acid to target intruder

 

Two bizarre blue blobs of light glimmering in our planet's atmosphere: UFO?

 

Scotland tries different way to reform women in prison

Student loan forgiveness: https://studentaid.gov/debt-relief/application

2023 tax rates offer break for middle income payers: wealthy already have breaks

 

 

 

 

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 a little

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

 

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.

Inside protons, neutrons, it is the fields of the virtual particles that creates its mass.

“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 election itself.

 

 

@

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

www.InsuranceAdvisorsNetwork.com

Alerts available at http://dankeppel.blogspot.com/