Friday, December 9, 2022

Can you still grow a retirement fund if you start LATE?

 

Why Wall Street predictions are all wrong

The predictions financial gurus make are not reliable for your decisions. They are for circus “barkers” to attract your hard-earned cash to fuel the financial industry. Wall Street pundits’ predictions — like where the market will be in a month or a decade — is “mostly baloney,” one TV observer writes. Most people are terrible at predicting the future. That’s true of professional stock pickers too. Economists are really bad also. They have a terrible track record of predicting the economy, and the Federal Reserve has a terrible record of predicting the U.S. GDP a year [ahead]. “Wall Street refuses to acknowledge that stock forecasts don’t work because there’s too much money in forecasting,” Bob Pisani says. Traders say managing losses is more important than managing gains. But if you are not a trader, you need to “know your limitations.” His advice: behavioral biases are extremely powerful mentally. It’s very hard to shake them even when you understand. Pisani was asked, “Why don’t you hire a financial advisor?”

Why do you think they’re better? Why do you think they don’t have biases? His conclusion: use low-cost index fund. They don’t have personal biases and they minimize losses.

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

 

Saving a million dollars

21,951,000 people in the U.S. have a net worth of $1 million or more. Among all states, New Jersey has the most millionaire households. Only 3% of American millionaires received an inheritance of $1 million or above. Real estate makes up about 40% of a typical millionaire's net worth. 79% of millionaires did not receive any inheritance from their family or relatives. 8 out of 10 millionaires come from low-income families. So it is possible for you to grow a $ million. The secret is not inheriting or inventing a better mousetrap. The secret according to Warren Buffett: compounding interest. Over time, your $250 a month becomes $1,000,000 from compounding not high salary. Only 31% of respondents surveyed had a $100,000 annual income at some time in their careers. One-third never made $100,000 a year at any point in their career. Many millionaires have a significant percentage of their wealth tied up in their primary residence. $250 a month, $3000 a year (average tax refund) becomes $1 mil in 36 years: $51,000 in 10 years, $104,000 in 15; and $191,000 in 20; $334,000 in 25; and $569,000 in 30; $957,000 in 35 years. Compounding adds $50,000 in the last year on average. Total invested: $108,000; total capital gains $952,454. You became a millionaire by earning 9 times your savings. You do it by using the only consistent market-beating mutual fund.

Start early: https://www.amazon.com/Where-can-your-child-invest/dp/1492164240

 

Can you still grow a retirement fund if you start LATE?

Every saved and invested penny counts in retirement unless you love to work. Many retirees still love to work at a reduced pace as long as they do what they love. If you are a teacher for instance, you may have had enough during the pandemic and are ready to change jobs. Some love working with kids and kids/staff are back face to face. It is never too late to start. You have decided to get serious about saving for your future. You are at a great advantage. Right now the stock market is down 17% for the year. This means you can buy a stock or mutual fund that cost 25-40% less than it did last year. For instance, Microsoft is now $244 not $334 and the stock index is at $393 not $480. Historically, important stocks and the market index have recovered in about a year. Since you are buying during a sale, the value of your account will reach a greater value so you can retire with retirement income. Using your company 401k low-cost index account gives you the advantage of growth without immediate taxes. Your fund compounds faster since your full contributions grow. If you avoid taxes and advisor fees, you could accumulate over $300,000 in 20 years adding $400 a month. If your employer matches some of your $400, you can reach $400,000. Since you are not going to take the full amount out the first day of retirement, you may be able to reach $500,000 after you stop working.

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

 

Stock pickers lost your money

A new study of actively managed mutual funds by S&P Dow Jones Indices asked that question and came up with a startling result. It found that not a single mutual fund — not one — managed to beat its benchmark in either the U.S. stock or bond markets regularly and convincingly over the last five years. Why? Costs. Experts who are not hyping their own businesses agree that “an investor can expect to do better by holding a well-diversified, low-fee, passive index fund than by holding a few stocks.” Over time, no one Wall Street ‘professional’ is consistent enough NOT to cost you earnings. In fact, if you are paying them from your account, they may be taking up to 63% of what you would have had. In fact, Dalbar, the financial scorekeeper found that the index provides 11% return over 30 years while the investor using pickers’ funds earns only 3.79%. That is a huge loss to you. Especially in your 401k plan, mutual funds that pay rebates plus direct fees reduce your net gains drastically over time. Costs matter!

https://www.amazon.com/Best-Predictor-Investment-Success-Cost/dp/1502524082

 

Can you safely take 3% or 4% from your egg during inflation?

There are advisors who advocate different rates of spending from your nest egg. The two most popular are 3% or 4% a year. Using the historical market data and $1 million retirement fund, this analysis says “the 4% rule does work most of the time, but watch out for periods of high inflation. Don’t blindly take out 4% a year when inflation is high and your portfolio performance is low. The 4% rule may be something like 95% effective historically, but being flexible with your withdrawals will prevent complete disaster even if you are in the bad luck 5%.” I take this advice of “being flexible” as the best advice available from the analysis. Since I have a mostly qualified retirement fund, I must withdraw a mandated RMD of about 3.2% of last year’s lesser total accumulation. If I need more income, I take out some of my losing cash account stocks. Let winners run.

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

 

Wealthy learn new ways to avoid taxes in MA

MA has passed a new tax on millionaires. Millionaires are paying big fees to their accountants and advisors to escape the tax before they get the bill. They tell them 1 that if your income is over $1 million, you could try to receive some before the end of 2022 instead of in 2023 when the tax goes into effect. 2 spread income over time so you don’t exceed $1 million. 3 use 1031 exchange to postpone tax on a rental property gains. 4 move out of jurisdiction. Many states are run by millionaires and billionaires and thus are unlikely to ever tax millionaires. If your $ millionaire status is because you may receive a one-time bump, your accountant may already have ways to keep the income out of your 1040. Many business people use their structure to show income in different ways. This may help them avoid taxes like our former president did.

https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

 

 

 

?**********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 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” failed

 

Nov 15 2022 Trump announces for 2024 to avoid lawsuits

 

Dec 3 2022 Trump: cancel Constitution rules ‘I win

 

Jan 2025 Dictator pardons himself: his Supremes agree

 

 

How Govt wastes our money:

Facial recognition at the airport: gov claims not making national database

New bomber @ $750 million each: 100 ordered to kill everyone in the world.

Tax changes for 2022: avoid filing paper return do to fewer processing staff

 

Trump Org guilty of tax fraud: Trump signed check to evade employees taxes

Meet the people who actually make US laws so their bosses can profit more

Drop in labor costs points to private sector profits as a main driver of inflation

 

SCAMS/SPINS:

BEWARE: St. Louis banishes people from swaths of city: punishment for petty crimes

15 yr old canvasser for Sen. Warnock shot in Savannah: democracy on the line

Discrimination in name of free speech: Christian Nationalist web designer hates gays

VA restaurant refuses to serve Christian conservative’s event

 

RoboCalls: almost all our phone calls go to https://nomorobo.com/: cancel land line?

AT&T caught selectively leaking financial info to Wall Street analysts: fine no jail.

Tesla caught deceptively marketing its driver-assistance systems: more complaints.

 

BEWARE: Tesla Semi may not see you slowdown or passing.

Hertz caught getting renters arrested for theft due to poor tracking: fine no jail

Hackers linked to Chinese government stole $20+ millions in Covid benefits

 

TX bans TikTok on official work machines

MiddleMen want $30,000 to see Swift: Handel’s Messiah in a historic Cathedral $40

Eight universities partnered with online sports-betting companies: 2nd student loan

Trump took/hid more state secrets in his storage unit West Palm: selling to pay taxes? 

 

Another church hides sex abuse so no perp is arrested: sex in the name of God

Child abuse doctor indicted in jail: priests bishop minister abusers never indicted-run free

Rage: 40% drivers admit they carry gun while on the road: 50% knife; 45% pepper spray.

WV may have drug users sterilized for reduced sentence: “reduces drug babies

 

Supremes decisions tilt toward Christian evangelicals: constitution says no favorite faith

 

Another Trump-style dictator coup fails: Peru Castillo tried to dissolve Congress

German terrorists seeking to overthrow the state caught: they are everywhere

US says Saudi prince beyond law: killing reporter is OK since prince of oil exporter

 

Jobs

On the move: 24% of U.S. homebuyers looked to relocate to new cities

Remote jobs are in demand, but positions are drying up

10 college degrees that job seekers regret obtaining

 

70,000 new staff members over the next five years in financial services: $50K - $130K

 

Chip maker Phoenix factories 13,000 high-tech jobs, 4,500 TSMC; rest by suppliers.

Warnock projected to win Georgia's Senate runoff on Tuesday

Warnock for 2024?

 

Who owns your account now?

First solar electric car: charge every 2 months or leave in the sun

Tesla self-drive RV semi gives you portable home that drives you there overnight

Why our family can’t afford a baseball game: $360 million pay for 1 player

 

Miracles:

Unemployment income exclusion: IRS sent letter 12/2/22

We’re Blessed: recent scientific research suggests that life in the universe is rare

‘Walnut Queen’ Broke Lots of New Ground: when you think you have difficulties

First early screening test for pancreatic cancer: urine tested in dish

 

Trump’s Supremes consider end to voter-decided elections: state pick electors a la Trump

 

 

Zelensky: TIME 2022 person of the year: Sell mags: Trump 2016 person of the year?

Women of Iran: TIME 2022 Heroes of the year

Griner free in prisoner swap for arms dealer

 

Hurricane erosion reveals 1800 shipwreck on Daytona Beach

CA homeowners losing their water to growers’ wells in the Central Valley

Covid death up: Vaccines for Holiday celebrations: https://www.vaccines.gov/

 

 

 

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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 a little

Energy into matter: scientists converted light energy directly into matter in one step

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.

Scientists build 'baby' wormhole as sci-fi moves closer to fact: inside quantum computer

 

 

 

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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

www.InsuranceAdvisorsNetwork.com

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

 

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