How can you know whether to trust your advisor?

What to do if Trump really did cancel SS funding?

At his NJ golf club, Trump promised his wealthy members: “I plan to forgive these [postponed] taxes and make permanent cuts to the payroll tax,” adding “I’m going to make them all permanent.” So all his members clapped (clap signs flashed) and will vote to end SS, Medicare, income and other taxes. Later they learned he will also cut capital gains taxes so they will owe nothing on the gains in their assets. However, in January Trump tweeted “Democrats are going to destroy your Social Security.” Members of his club and the wealthy are already avoiding most of those taxes since they are not taxed on most of their wealth. However, most will vote to end ‘payroll’ taxes since it sounds better than Biden’s promise to deal with the huge deficits Trump has created with tax cuts.

Make sure your have income later: https://www.amazon.com/Forget-Social-Security-Medicare-Lifestyle-income/dp/1466394285

How can you know whether to trust your advisor?

Does every financial advisor have a basic conflict of interest? Advisors can make money from you in many ways. Do you really know how they make money? Are they on salary or commission or fee for service? Many advisors get paid based on much money you have not on how much they earn for you. So if your account went up because the market went up, you will pay more even if they had nothing to do with it. Some advisors charge an hourly fee like a lawyer. You pay $750 for a written financial plan that shows you a high probability of reaching your goals. Some charge for a specific task. You pay $500 for a re-balancing of your whole portfolio. Some are paid a bonus if they sell certain products and not others. They receive a year-end bonus of $5,000 for selling $500,000 of the mutual funds managed by their firm. How do you know the product they recommend is the best for you? You don’t know if the funds they sold you are better than an index fund until a year after you have paid their fees. Are they working on all of these income streams? Are you given a clear explanation of why your total balance has gone down yet you paid $1,700 already? Trump ended the fiduciary duty of financial professionals on February 3, 2017—one of his first acts in office. You can avoid their conflict of interest.

Buy the best for YOU: https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275

Is a gold asset right for you?

In the wake of gold breaking above the $2,000 level, enthusiasm for the yellow metal has reached a fever pitch. Earlier this week, for example, MarketWatch reported that a fund manager forecasted that gold could double to to $4,000 an ounce. But gold highs are not usually a good sign for real investors. The fundamental justification for a higher gold price that is most often mentioned is inflation. But we don’t have inflation. History tells a different story. “In 1980, some were concerned about… high inflation… From January 1980 to January 1985, the real price of gold fell 65%. People owned CDs paying 12% not gold. Perhaps new gold ETFs are pushing the price higher. Gold has been a speculator’s tool in the past—“I buy because another fool will pay more when I sell.” The gambler knows it is difficult to know when to fold.

Don’t play their game: https://www.amazon.com/Americas-Socialism-Rich-little-people-pay/dp/1535218584

How to stay focused on your long-term goals

With all the craziness of this time—work/no work, school/no school, mask/no mask, bull market/unemployment, deficit spending/recession—it is difficult to know what to do with your future income assets. Many have lost ground with 401k matching suspensions or layoffs. Many have ignored their portfolio since it is not clear what to do now. Many more have left their account in Target-Date Funds. Others have joined the Wall Street frenzy to trade ETF. The number of these index funds has exploded—over 5,000—with only a few making money for owners. During this time it has been helpful to some to just keep in mind Warren Buffett’s advice: “The stock market is a device for transferring money from the impatient to the patient.”

Wait, it gets better: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

Is your advisor’s move to a new firm right for you?

Unfortunately, moving all your assets to their new firm is not as simple and easy as they claim. It is the right move for them—more control, more income, more career choice. But you are going to have to deal with all the hassle—even your advisor doesn’t know the half of it—I was a firm manager. You will experience new account documents, lengthy processing delays and, frequently, significant incremental costs. Besides the paperwork and delays, you have new costs, including ticket charges, account level fees and annual maintenance fees for retirement accounts. If you were with a low-cost provider like Vanguard, Fidelity or Schwab, your 0.2% costs may become 2% a year. This increase may rob you of 63% of your total accumulation over time. You may lose asset compounding—the miracle of compounding. You are forced to make complicated decisions about how trades are made, which custodians, clearing firms, product sponsors and other institutions will be used. You will have to sign away your right to sue if they make a mistake. The benefits of one statement or greater compliance are marketing hype. Most firms are required to provide top compliance now. Plus, with larger firms, you usually have more, not less, choice of the product/service and benefits/costs balance. Some even have salaried advisors so you obtain more unbiased advice when you need it.

Do you need an advisor? https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

Is a ‘cash out’ refinance right for you?

Mortgage rates keep hitting historic lows. If you are tempted to take some of your home equity for bill payment or in anticipation of job insecurity, think hard about all the possible outcomes first before signing. We were in such a situation recently, and opted for the line of credit (home equity line of credit or HELOC) instead. We already had a lower mortgage rate on a 15-year loan so there was no need to refi for a lower rate. We used the equity to reduce our overall mortgage costs—less interest. We live in a high property-tax state so we could not reduce our monthly payments much more with a new refi. Plus we did not want to extend our mortgage payments for another 15 years. The line of credit is a way to get cash out for home remodeling and emergency without the cost and risk of a new 1^st mortgage. Interest is deductible for home improvements like a new kitchen. The rate is lower than many credit cards. We did not have large credit card debt so we did not need the cash from a ‘cash out’ refi. Our only big monthly expense is the property tax bill and we are applying for a reduction now. We shopped around for a no-cost HELOC.  We avoided all the closing costs of a ‘cash out’ refinance. We avoided prolonging our mortgage payments.

Hope for the best; plan for the worst: https://www.amazon.com/Your-Hell-Fund-goes-hell/dp/1492325627

 

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

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

Philly DA: we have an “authoritarian dictator."

Dictator on Harris: Make America WHITE Again

Dictator’s advisors fear “he may start a war”

Dictator eliminates Congress: ‘benefits’ for all by exec order?

Dictator to stop citizens from re-entering America

Dictator: “I’ve kept us out of war” with UAE?

Dictator cuts PO so we can’t mail-in vote

How Govt wastes our money: Congress gives 3.7 Trillion to the wealthy! 

Congress on vacation: failure is THE option: they leave—we are stuck w/o job or money!

20 GOP senators reluctant to spend more money: spent $3 Trillion on rich: re-election locked

Congress gets $174,000 for not doing job: Wealthy reps think $600 keeps us from work.

“permanent cuts to the payroll tax” Trump handlers: he didn’t mean end Social Security tax

Trump to give wealthy another tax break: lower taxes when they trade or sell assets: “more jobs”?

SCAMS/SPINS:

Facebook takes political sides: Employee fired after collecting proofs?

NRA execs accused of stealing $ millions from dues-paying gun owners

Which foreign government will buy election: Russia for Don; China for Joe?

Despite Trump, kids are NOT immune from virus: 97,000 children positive in 2 weeks

How we are informed: 7 million lies about virus posted on Facebook: can we survive?

FL sheriff bans use of masks by his people and in office as FL cases/deaths zoom.

Jack Brewer sold shares of company he consulted for knowing the stock price would fall.

Advisors don’t get laid off: they get paid whether they make us money or not: overcharge

Robert Jesenik Aequitas caught Ponzi promised returns from notes and funds

Morrie Tobin caught pump-and-dump schemes defraud “innocent investors” $15 million

Pyramid schemes hit struggling workers: promises of huge profits from tiny start-up cash

Jared huddles Kanye secretly in CO: conspire to railroad Black voters

Trump’s postmaster is removing mail sorting machines to slow the mails: suppress vote

Zoom invitation may be phishing scam: hackers using virtual com tools

Packages you never ordered scam: get seller to take it back—they stole your info to use

Are alternative energy firms a scam? Get a lawyer’s read first before you sign.

Is it a scam?  Check AARP scamline 877.908.3360. Check IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams

https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers

Jobs

GA school kids will reignite virus shut downs: quarantine high school kids at home?

Israel learned best way to reopen schools/jobs: protection protocols

Re-opening no masks increases virus cases and deaths: 1,500 dead a DAY record!

IRS tax return center: help open paper returns: check is sitting there: You get IRS notice?  

Post office workers replace machine sorters:  $18.47 to $33.82/hour plus benefits

Who owns your account now?

Our regrets: 50 account/purchases we always regret: sleep on it before you buy

Bargains in home buying: foreclosures are cheaper but not for the novice buyer

Divorce rate for older folks is rising: know your rights, plan your future

Miracle:

Michelle Obama for VP: Biden is too weak without energetic non-political woman

Dems need a “very very nasty” and “disrespectful” VP to overthrow a dictator and mob.

White religious power still favors a dictator who put children in cages; brags about sins

40% people with virus have no symptoms: do they have the cure? Virus never dies?

FL no longer requires test for restaurant workers before serve you: Virus free w/ meal!

I believe the president of the United States: everyone else is a liar or traitor

Tens of thousands acres for oil and gas drilling was to be auctioned: we stopped Trump

Dogs may use Earth’s magnetic field to take shortcuts

Canada's last intact ice shelf collapses due to warming: FL gives sandbags to residents

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Why are target-date funds so popular?

Is putting off retirement right for you?

A quarter of Baby Boomers plan to postpone their retirement. The virus pandemic has changed a lot of lives and plans. If you start Social Security benefits you cannot go back. Previously this was allowed. This makes your decision all the more important. Many will wait because they do not wish to begin taking retirement money from an IRA or pension now. Studies have shown that doing so can hurt you in later years if you have a big reduction in your nest egg immediately. If you have 30 years in retirement, you don’t want to begin with a bad 1^st year. Also, this is one of the worst times to buy an annuity since future benefits are calculated on the current very low interest rate. You could only receive $437 a month for life in return for your $100,000 if you were male age 60. On the other hand, if you had to retire due to job shut down, you could receive $896 a month for 10 years in the hope you would be better situated later. Delaying SS benefits to age 70 provides a much larger monthly income: $3,790 maximum for someone who files at age 70 compared to $2,265 maximum for someone who files at age 62. Maximum benefits require higher incomes for your final 35 years of work. The average benefit is $1,503. Also remember taxes are due on up to 85% of SS benefits if your total income is higher unless you have tax-FREE Roth IRA income.

Create tax-FREE income: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

With the virus passing 4 million, what can you do to save your nest egg?

If there's anything you should expect out of 2020, it's volatility and unpleasant surprises. Most people are checking their account more often and that is a recipe for disaster. Panic selling is what happened in 2007-8. The stock market fell 37%. Some investors think they can avoid the market drop by selling. But your advisor doesn’t know when the market will come back as in 2009-10 with 27% and 15% growth. We can’t control the virus or the market so we must focus on our nest egg end time. A stock market index fund is the only asset class that has proven 11% returns over time. Wealthy investors in hedge funds etc have a really bad record of losses. They can afford to take a chance on alternative assets; we can’t. Warren Buffett, one of the most successful investors, says holding a low-cost stock index fund so we take advantage of compounding earnings is the best way to protect our nest egg, rain or shine. Costs are all we can control.

https://www.amazon.com/MasterClass-Buffetts-SIMPLE-Strategy/dp/1983485268

Is buying the ‘hot’ fund now right for you?

Advisors and young investors try to pick the ETF funds that are rising or will rise during the current conditions. They want to ride the wave to the top. Problem is: momentum trading does not work. Over time, picking the hot security usually results in disappointment. Why? No trend lasts for long. With index funds of all types, the past trends have been changed—watered down. Be wary: past performance is no guarantee of the future; only the hype. The owners of Wall Street firms are great at the hype. What else do they have? They don’t have a predictable product nor a person who has golden hands nor a crystal ball nor a way to control the underlying factors nor a magic wand. All they have to make the sale to you is the B.S., the “story” as my firm’s FCs used to call it.

Ride the market: https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373

Why are target-date funds so popular?

Short answer: they use the three best investment strategies available to working people. First, they are usually low cost. This means that over time, you don’t give up over 60% of  your earnings to sellers. Second, they use compounding—the miracle of compounding—earning money on money by itself. Third, they usually hold index funds which can provide 11% earnings from many profitable companies—you are diversified. The added bonus is that as you get closer to retirement, your assets and contributions become less volatile—from 90% stock to 30% stock balance. Unless you are wealthy enough to loose 1/3 of your wealth in a derivative or leveraged hedge fund, this one fund decision is all you need to be a successful investor. It just takes time. Warren Buffett recommends it.

https://www.amazon.com/Millionaire-Mutual-Funds-Save-taxes/dp/1534939490

Perfect time to convert part of your IRA to a Roth IRA

If your income and thus taxes will be lower during this pandemic, converting taxable future income to tax-FREE future income may make sense now. If you are over age 59 ½, you can take out IRA money with no penalty—just extra taxes—at lower rates than future years. If your income and tax burden allow it, taking any amount--$10,000, $20,000 even $30,000 from your future retirement account is a smart move now since all the earnings in the future will be tax-FREE. Even if you are in retirement now when you do NOT have to take your 2020 RMD—forced IRA distributions—your tax liability will be less this year so you can afford to take and pay tax on a chunk of your IRA. Because the stock market is still positive, you can convert your stock IRA money to future positive income with no tax in the future. Many advisors see higher taxes in the future (to pay for the Trump tax cuts to the wealthy and virus expenses). You benefit two ways: take advantage of lower current taxes and avoid paying the increase later. You will pay less tax later as you take out smaller traditional IRA distributions AND your future taxable income will be less. Roth IRA balances can accumulate for your whole life without distributions or tax payments. You may be able to avoid income tax on your Social Security benefits too.

https://www.amazon.com/How-Retire-Tax-FREE-Income-increases/dp/1484156951

How the super wealthy—$100 billion—avoid income tax

Zuckerberg’s net worth just passed $100 billion. Can you write $1,000,000,000 one hundred times? He joins Jeff Bezos and Bill Gates in the clouds. Zuckerberg’s net worth is largely derived from his 13% stake in Facebook. Since these guys and other uber gelt holders do not have to take a salary, they have no taxable income. Think of that! Like the old Robber Baron times, they can sit in their home offices and clip coupons/dividends. Yes it is possible to pay no taxes. Our president claimed that he pays no income taxes too. However, we know he owes a lot so that may be how the wealthy buy things—they live on loans. So Zuck, Jeff, Bill and Don can just text their bank and get a loan every year to pay for maintaining their lifestyles. You don’t pay income taxes on a loan. They also don’t pay for the public services they use—airports, roads, courts, army navy air force. We pay for those on their behalf. Because their companies pay for most of their ‘overhead’ private planes, health insurance, gym, body guards, meals, etc, they don’t need to pay much “out-of-pocket” expense either. We pay for that when we buy stuff.

What a life: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO-taxes/dp/1539462382

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

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

Philly DA: we have an “authoritarian dictator."

Dictator: Supremes picked to delay/overturn election like Hong Kong

Dictator: no press at GOP meeting

How Govt wastes our money: Congress gives 3.7 Trillion to the wealthy! 

Trump’s DHS secret police compile secret files on journalists, reporters like Russian KGB

Supremes let Trump take money needed by military to build his WALL: contractor win $millions

Census not counting all as per Constitution: est. 37% not counted, Dems lose Congress seats?

Congress takes vacation all August while we wait for help with virus keeping us from working

$419 millions relief money went to subsidiaries of foreign firms: Trump’s PPP watchdog fired

Trump’s promised health care plan is dead: millions lose employer coverage in July

Trump tax reform benefits wealthy who hold foreign assets over US assets: we pay their taxes.

Eviction, loss of relief $600, job not re-open, virus threat, school?: government fails many.

Testing slows as deaths rise in hard hit states: will schools test every child before spread?

How the “swamp” works under Trump: DHS head gives contracts to his former lobbying clients

SCAMS/SPINS:

Trump’s new voter suppression strategy: delay mail-in ballots so invalid, not counted

Virus is making medical firms wealthy: $175 test? Plus add-ons $2,479. Medicare for all!

HALF kids at GA camp infected, most positive virus tests were 6 - 10 year olds. School?

TX does not count positive virus tests: rapid-result tests ignored: Thousands spread virus

Trump voters believe Trump handled virus pandemic ‘well’: 160,000+ dead so far!

Trumpers threaten Fauci, his family because he gives respected scientific info not B.S.

One man not sick infects 91 +: it is called pandemic for a reason: symptoms in 10 days

Trump in cognitive dissonance: changes to favor mail-in ballots: last week--against it!

Trump: Biden opposes God, Bible, religion, guns, energy, rights, everything American?

Will US election be decided by foreign influence? Adverts, fake news, bribes, hackers?

Kanye West schill for Trump to get votes from Biden: GOP paying to help West in CO.

Consumer defense agency became consumer exploitation agency: loan interest to 500%

Consumer products shrink so we get less for same price: they think we don’t notice

Brian Scroggs, VCS, Transfer Group, Real Travel failed timeshare relief: kept payments

Netflix phishing scam: steal credit card info by tricking you into updating your account.

Gov agency scam: caller ID, agent number, military romance ask for money to get grant

Victor Lee Farias Integrity Aviation stole $14 million Ponzi engine parts leasing scam

Is it a scam?  Check AARP scamline 877.908.3360. Check IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams

https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers

Jobs

Materials Handler US Treasury Philadelphia, PA $22.10 an hour https://www.indeed.com

Immigrants constitute 40 percent of home-buyers and help create new jobs.

Who owns your account now?

Check your Social Security statement for correct earnings: it determines your later benefits

Best Cars for Teens Under $20,000: CR picks safe, reliable used cars and SUVs insurable.

Best appliance brands: CR Appliance Brand Reliability Rankings: no “get what you pay for”

States Pull Back On Pension Payments: state budgets don’t allow pension build up now

Miracle:

White cop not charged in Michael Brown’s killing: shot 6 times but “no proof”?

Wisconsin governor orders masks statewide amid virus surge despite GOP objections

Billionaire pays off student loans: continues family tradition of giving

Flu, pneumonia vaccines could lower risk for Alzheimer’s 

Missouri approves Medicaid for ½ million despite 10 years GOP votes against it

Virus tests (quick version) are NOT accurate: OH gov negative then pos then neg.

No-Mask school halls: perfect infection atmosphere: almost like gov wants sickness

Germany doesn’t need us to stop Russia: We did not stop Russia in Crimea/Ukraine

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alert

Trump’s watered-down fiduciary rules hurt our nest egg

GOP against lower drug prices but supports buying profit companies

Most US drugs cost 50-100% less for families in Canada and Europe. Some in Washington want to link some U.S. drug prices to the lower prices paid overseas. However, the drug industry and many Republicans taking their ‘gifts’ see it as a price control that violates ‘free-market’ principles. These same GOP members don’t see the violation of their so called “free-market principles” in buying 30% of YRC, a struggling trucking company. GOP backed our national bank in buying the lower-rated bonds of US firms starting in May. The GOP handed $ millions in forgivable loans to private plane companies that contributed to Trump elections. GOP wants to cut unemployment help to 50 million out of work because they say it keeps them from going back to work. GOP says $600 is “too generous and provides a disincentive for returning to work.” So GOP spends our money (future taxes) on their donors’ companies, creating a socialist economy but denies the jobless a means of survival until their jobs are safe to return to work.

This is Socialism for the Rich: https://www.amazon.com/Americas-Socialism-for-Rich-little-people-pay/dp/1535218584

Can Trump’s paramilitary occupy our cities to assure a Nov win?

With Trump’s unaccountable and masked paramilitary in our cities during election, can intimidation and violence scare voters into staying away from polls. They do that in some fascist countries? There does not seem to be any law or power that can dissuade him from continuing to hold Portland. He did it in Washington DC for the bible-walk PR stunt. Shooting tear gas at peaceful demonstrators in the park did not get a rise out of any law enforcement or the Congress. His own Justice Dept ‘watchdog’ is unlikely to find fault with the Boss over the invasion of Portland last month. He is the highest law enforcement actor and Commander of all the armed forces. He can just fire the ‘watchdogs’ like he did in the past. He has the money lined up to carry on a long court fight over the election results. He is invigorated by a fight. He has the Supremes primed to name him as President like Scalia did for Bush. Biden is wrong, there is no military other than Trump’s military since he is the supreme Commander. Look what happened in DC, Portland and next Chicago. He has the generals and Defense goose-stepping with him in the park after his troops cleared it. There is no one to stop him now and there won’t be on January 20. Only one brave public person has named this action: Philly DA: we have an “authoritarian dictator."

Wealthy are buying citizenships to avoid taxes and virus

Who do you think will be around to pay the new tax hikes required to pay for the huge federal and state budget gaps? Many wealthy folks are buying a way out of the current tax and disease environment. For as little as a $1.4 million you can isolate yourself and your family in a safe haven so you avoid taxes and yet can keep US military and health protection almost anywhere in the world. Like many corporate giants, you can claim your home somewhere else for certain benefits while living and earning in more pleasant surroundings. Specialty firms such as Henley & Partners, the world’s biggest citizenship and residency advisory firm, do most of the paperwork.

You don’t have to move to pay less: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

Trump’s watered-down fiduciary rules hurt our nest egg

Trump changed the Obama fiduciary rule to allow salespeople to take advantage of us when we move our retirement money from an employer. Critics claim this gives us less choice but the purpose of the Obama rule is to make sure we understand what happens to our money after the excessive fees, costs and possibility of loss with some products. Of greatest concern, said CFA director Roper, is that “many rollover recommendations won’t be held to a fiduciary standard, including the vast majority of recommendations to roll money out of a plan to purchase non-securities investments such as annuities, bitcoin, real estate, gold or other commodities. So precisely where the risks are greatest and the compensation related conflicts are greatest and the sales practice standards are weakest, the ERISA fiduciary standard will not apply." The Trump rule will allow financial advisors to receive many payments that would have been restricted or forbidden by the Obama rule, including commissions, 12b-1 fees, trailing commissions, sales loads, mark-ups and mark-downs, and revenue-sharing payments from investment providers or third parties, even within qualified plans and IRAs. High-cost products rob us of up to 63% total accumulation due to the compounding effect over time.

Get the best for less: https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275

Is portfolio re-balancing right for you?

Has your advisor or TV guru mentioned selling some of your assets so you can buy other assets yet? This is the standard procedure for the financial sales industry. Selling and buying is how the industry creates revenue. But is this strategy good for your long-term accumulation. Many studies show that it can be good or bad depending on the performance, composition and relative size of your portfolio. Selling your winning stocks or mutual funds just because at the end of the quarter they exceeded your risk percentage only makes sense if your advisor knows they will keep growing. But advisors don’t know this. You may end up losing some valuable growth because you sold too soon. Because there is no consensus on when to sell/buy assets, most investors don’t bother. Many just use a fund that moves from stocks to bonds over a longer period. The popularity of the target-date funds show this is a practical strategy that ignores the issue. Other investors use a more intuitive strategy: designate contributions to the asset class less favored. Here you would not sell your winners; you just buy more of the losers. So when stocks soared in 2019, there has been no need to sell since stocks have returned to level ground in 2020. If you had traded stocks for bonds, you may have not been better off. For many long-term investors, stocks go up and then back down on their own. There is no need to sell to correct the balance. Stocks earn 11%; bonds earn 7% over time. Simply changing the destination of the next contribution cycle will do the job of maintaining your risk appetite. The outcome produces a delightful 8% with few bad years. The important decision is cost: Morningstar study: low-cost funds beat high-cost funds in every period.

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

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

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

Philly DA: we have an “authoritarian dictator."

Dictator: “nobody likes me”

Dictator: “I will delay Nov election”

Fascism: Paramilitary troops sent to our cities: Chicago next

US GOP judge: Trump’s paramilitary ‘guards’ CAN terrorize citizens legally

Louisville protesters bring own ARs

12,000 troops from Germany to … Cleveland, Detroit, Milwaukee

How Govt wastes our money: Congress gives 3.7 Trillion to the wealthy! 

Cashing-in on suffering of others: Corporate Insiders Pocket $1 Billions: vaccine work?

Homeland Security destined to become the secret police: vague mission used law&order

Trump’s $1 million WALL fell as ‘the environment’ said “no walls here.”

Fed chair: Worst economic downturn ‘in our lifetime’ warrants more help from Congress

Trump to build FBI hq next to his hotel: $1.75 billion for donors from virus payments

$1 Trillion GOP Virus bill: military planes, armor trucks, helos, missiles, spy planes, war

GOP Virus bill: wealthy can make PPP loan into grant and also deduct payments as expense

Now that wealthy have virus loans/free money, GOP to shut down spending for rest of us

Wealthy take virus loan/subsidy to keep employees then lay them off: on unemployment

Millionaires decide $600 unemployment too much: Congresspeople take gov subsidies

2^nd virus check: if you don’t file taxes, https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

Fed subsidizes capital so people who make money from money: bankers, hedgers, gamblers are riding high.

SCAMS/SPINS:

Trump: "The country is in very good shape, other than if you look South and West" 152,000 dead

Trump reverses Obama on mining in Bristol Bay salmon fishery: Army Corp goes along.

Trump mob: “kids are stoppers of disease: they don’t get it and transmit it themselves.”

Trump supporter Herman Cain at Tulsa rally, no mask: virus in 9 days, death in 30.

Trump vote-from-fear plan works: voters buy more guns – now, home tear gas launchers.

Mel’s new garden will be installed by “private” funding: virus PPP subsidy money?

Trump’s new post office head will control mail-in ballots: late votes are invalid

Reagan org asks Trump and GOP to stop using the 40th president’s name and image  

Intolerance or cancel culture: no one is listening discussing anymore; my way or highway

77 Brands of Hand Sanitizers May Be Toxic, FDA says methanol thru skin dangerous

Some biz add "COVID surcharge" to their bill: sanitize should be biz expense not mine

Coin shortage? Really, my bank won’t take coins! Some banks charge coin deposit Dah

Recall: Boeing 737 may stall in flight corroded fuel check valves been parked too long

Mark Hopkins MI stole $1.5 million promised 7% from a credit union building fake docs

AIG Variable Annuity firm stole $40 million from FL teachers steered to high-cost stuff.

Trump’s new religion/doctor: no masks, hydrochlorine, “God’s battle axe”, voo-doo

Trump will decide who gets virus vaccine first: some millions will never see it

C-19 vaccine may only slow symptoms not prevent: may only work on 50% of us.

Is it a scam?  Check AARP scamline 877.908.3360.

Jobs

Ivanka’s “find something new”: she is selling Goya beans so that job taken

Papa John’s to hire 10,000 more workers: Pizza is hot commodity

Obama to register 15 million young people for Nov

Who owns your account now?

Eviction facts: https://evictionlab.org/covid-policy-scorecard

Do other car owners hate their cars enough to change brands: Yes, Fiat Chrysler Dodge

Eight DNA Ancestry Services: The Good, Bad and Ugly

Low-cost generics from legit pharma: must pay a membership fee.

Average Age of Cars Americans Are Driving Nears 12 Years: Brand favorites

Miracle:

Baseballers kneel for BLM in opening games: Trump shocked, Fauci threw first pitch

Vaccine candidates look promising but wont’ make reality go backward to 2019.

Mom shares her good fortune and community gives back: neighbor helping neighbor

Blood test for Alzheimer’s disease nearly perfected

C-19 virus not on most mail, newspapers, packages, doorknobs, surfaces 

17 states ‘red zone’ still not following WH advice on virus case reduction

Baghdad hit its highest temperature on record: 125.2 degrees: Arctic higher too

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts

How to deal with the bankruptcy stigma

Is giving your 401k money to a hedge fund/private placement right for you?

Trump has provided wealthy money managers a great new year present. With access to our $5.6 trillions in 401k money, the super rich will earn 2-4% commission/fees. They also pay less tax since they invented the offshore tax haven and contribute nothing to our way of life. They take their money OUT of this country. For us, this ‘alternative’ wealth option earns less for us. Over time their fees rob us of up to 63% total accumulation due to the compounding effect. Some pension funds with better fee deals than we can make have already dropped these investment options after losing more than a simple index fund. The SEC has already issued a warning about these investment managers. So why do some wealthy people buy ‘alts’ as they are called. Some say they are great for diversification and high returns. However, scientists who have studied their history say they are a poor investment choice even for the super wealthy. Warren Buffett beat the returns of 6 of these funds with his recommendation for everyone.

Take Buffett’s advice: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

How to deal with the bankruptcy stigma

With 50 million Americans out of work and the end of unemployment help and eviction hiatus, many working people will need to consider this strategy for a “fresh start.” Most of us consider filing for bankruptcy an admission of failure. However, the way some have gotten through it (Recession 2007-8) was to accept the reality and move forward with the positive. One client I have was over 60 years of age and had been laid off from 3 firms that closed. Even though he had much quality experience and professional degrees, he could not find anything comparable to his former management positions. He tried sales but found that that would take years to build a customer base for a decent income.

He and his wife were forced to declare bankruptcy in 2010 after trying to live on credit cards and running up debts of $231,000. It cost them a year of anxiety, near divorce and $3,000 in legal fees. Positives: No more creditors calling at all hours, multiple letters, and fear of losing all retirement account assets, cars, home, etc. They did not share the experience with family or friends so that eliminated some feelings of shame and guilt. They were able to keep all their retirement assets, home and cars. The husband started his reduced Social Security benefits. They lived on the wife’s salary. They lived with poor credit scores for 10 years and then they had to work hard to remove it from the records. I was able to help them with advice from my books, but they had to make the tough choices. The husband tried making his own business but after spending $3,000 from credit cards, he gave up. When debt is overwhelming, you must choose the “fresh start” to be able to live your life again.

You can live again: https://www.amazon.com/Insiders-Guides-Discount-Financial-Services/dp/143480593X

Investing has been described in many ways it is not

For some folks, it is a game, a casino, a lottery, a gamble. You hear some say they ‘play’ the market, ‘bet’ the ranch, raise their ‘stakes,’ ‘hit the big one,’ make "10-baggers," and all sorts of slang. Some dream of becoming wealthy by picking an unknown stock that blossoms into a perpetual money tree. Most working people fear losing all their money in the stock market so they don’t grow their long-term savings. Others have steadily invested all their lives because their parents were regular savers too. Some people are just lucky: consider those who purchased just 10 shares in Warren Buffett’s company Berkshire Hathaway's stock in 1985. BRK is now the costliest stock in the world, with its current price at $286,899 a share. This is primarily due to CEO Warren Buffett's choice to NOT split the shares as they rise in value. He once said that keeping the share price so high drives away traders looking to make a quick buck. BRK owns many profitable companies like GEICO and stock in others like Coke, American Express, Bank of America, and Apple. Buffett’s advice for investors follows from his experience as owner NOT as a salesperson advisor/broker.

Follow the unbiased master: https://www.amazon.com/MasterClass-Buffetts-SIMPLE-Strategy/dp/1983485268

Why the Roth IRA may be the best investment option

Other than a legal offshore tax haven, the Roth IRA/Roth 401k are the best investment account for most people. All your earnings in the account can be spent with no income tax due. Unlike a regular IRA or 401k, you pay tax on just the contributions NOT the earnings. Assuming you are saving for your later spending years, this may provide an extra 25% spending power when you most need it. Later when you can’t work or can’t work harder, this tax-FREE income will lower your tax on Social Security benefits too. The Roth IRA and Roth 401k are relatively new so in my AARP tax volunteer time, I don’t see them very often. When I do, I congratulate that client for thinking ahead. Another fact: Income tax rates are lower now so paying tax on your contributions now can save you a bundle later. For instance, let’s say you invest $250 a month, $3,000 a year in a stock index fund inside a Roth IRA for 33 years ($99,000). Your nest will be worth about $980,000. You can spend every cent of $4,683 a month tax-FREE. Plus your SS benefits are probably not taxed. With a regular IRA or 401k, you pay 22-25% in tax on this income (including 60% of SS benefits). $4,683 minus tax is $3,512 a month or $1,171 a month less. Over the average retirement life, that is $351,000 less in spending.

https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

The stock market recovery reflects the inequality of Two Americas

With 50 million on unemployment and without jobs, how can wealthy Americans continue to support the same 2019 market level? Why are investors so confident? Where did positive 2^nd quarter company earnings come from? Wealth inequality. 10% of the richest folks own 70% of all assets. The middle class is shrinking so the top 20% own more assets than the other 80%. Since most of the market assets are owned and traded by the top 20%, it can keep going forever as long as there is confidence that their assets will grow in value. That confidence seems to come from the feeling that the US gov will print more money to bail out any large business. Jamie Dimon “This is not a normal recession.”

Our national bank, the Federal Reserve has been buying the stocks and bonds of struggling companies in this crisis. This means we, the taxpayers of a ‘capitalist’ country, are now the owners of these businesses (socialism) without any say in how poorly they are run. Investors have confidence because large companies are too big to fail. In the past if almost every retail firm was closed or severely limited in sales revenue, with millions of workers not working, the economy would be in recession or depression. Almost every store in my neighborhood has been closed or limited in traffic. Almost every family with kids has been home or working from home so we only go out for food. Yet Wall Street booms on concentrated wealth and more national borrowings. How much of American business can we afford to buy? Who will pay off our debts?

Avoid paying for the wealthy Socialism: https://www.amazon.com/Americas-Socialism-for-Rich-little-people-pay/dp/1535218584

Your 401k balance is what?

Where are you compared to others by age, income, gender, industry? Don’t look at the average since one wealthy person with $ millions can demoralize all the rest. That person probably owned a company and added their lifetime profits to their 401k rollover. Not a fair comparison. For instance, the median 401(k) balance is $22,217. But a better indicator of what the majority of Americans have saved for retirement is by age.

Age                              Average 401(k) balance           Median 401(k) balance

Under 25          $4,236                                                 $1,427

25 to 34           $21,970                                               $8,126

35 to 44           $61,238                                               $22,123

45 to 54           $115,497                                             $40,243

55 to 64           $171,623                                             $61,738

65 and up         $192,887                                             $58,035

            However, a 44 year old earning minimum age is probably not going to have $22,123 in their account. You must compare income and gender to take a more realistic measure of your progress. In most cases, adding an additional 2-3% of salary a year will help because of compounding. That is the factor that helps you end up with more money without more contributions. In a stock fund, that can add another 50% to your total. Another 50% can be added by choosing a low-cost stock index fund. Check your fund costs: https://www.finra.org/investors/tools-and-calculators/using-finra-fund-analyzer. Your advisor can’t control the markets. Cost is the only factor you can control after the amount of our contribution. Over time a lower annual cost can add 50% or more.

Tune up your 401k: https://www.amazon.com/Tune-your-401k-EARN-Tax-FREE/dp/1490591028

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

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

Fascism: masked paramilitary occupy Portland…USA!

Unidentified paramilitary beat Navy vet  Trump’s SS?

Fascism: Paramilitary troops sent to our cities: Chicago next

PA DA: we have an “authoritarian dictator."

Mobster: ‘I can let pandemic kill more and still win election’ 145,000 +

 Our Child Abuse: children as young as 1 held in hotels for weeks

How Govt wastes our money: Congress gives 3.7 Trillion to the wealthy! 

Wealthy got virus money as ‘loans’ and now Treasury wants them to keep tax money.

Arete Financial, Ponzi scheme in fake student loan biz gets $1 million virus money

IRS delays paper return refunds: staff cuts delay enforcement too

IRS Limits Taxation of Foreign Income: wealthy entirely defer liability on GILTI income

Now that the wealthy have virus money & huge tax breaks the GOP wants to cut relief $s

Payroll tax cut only helps employed: 50 million unemployed: Did Trump pass cognitive test?

New ways wealthy avoid taxes before taxes go up: combine investments and gifts

FL teachers sue gov to stop mandated in-school return: violates safe ed. constitution

SCAMS/SPINS:

Some states see rising infection rates due to reopening euphoria and outdoor activity spike

Eviction spike in 2 weeks feared by HALF of unemployed as support ends: Congress on vacation

Ivanka and Don don’t actually eat Goya beans but need the voters who do: crude propaganda

Trump ‘comfortable’ send son/grandchildren to school but they don’t go to DC public schools

Trump’s mob does follow science out of TV view: masks, tracing, tests: just not for Americans.

Trump cancels GOP convention: reality of death gets closer to GOP: stupid but not fools

Trump happy talk not cut it: GOP finds virus, no jobs, no healthcare, no hope—reality at home

If we “cut testing money, virus cases go away by themselves”: Trump strategy for election?

Sheriff of Jacksonville FL: we can't keep the Republican National Convention safe.

TX allows new virus spikes in religious schools: they can ignore virus containment strategy

52% of cases to date in LA County have been people under 41. Young avoid warnings.

We pay $20 for vaccine but most of us won’t receive it: wealthy and pols first

Crazy GOP blames Dems for 1965 attack on John Lewis: Dems ruled South then so elect Trump?

Trump cuts anti-segregation housing rules: towns left to segregate; Make America White Again

No medical prices to negotiate: we can’t bargain lower hospital prices if prices are hidden

Luke John Flint KY caught pre-registering for a non-existent COVID-19 vaccine $100 Bitcoin

Neiman Marcus executives seek $10 million in bonuses for bankrupting: stockholders outraged

UBS diverts best muni bonds from customers to wholesalers for profit

Michael Barry Carter stole $6 million from Morgan Stanley clients: 12 years of fake statements.

Certified Forensic Loan Auditor, Lehman caught advance fees, abuse mortgage relief services

Charles Kulch MA caught unsuitable illiquid high-risk, high-commission REIT investments.

David Hu, IIG caught Ponzi scheme selling fake trade finance loans $60 million

No hassle home buyout: scammers offer immediate cash for your home: legal but big loss

State Farm caught in suit over underpayments made to 65,000 policyholders.

NRA Must Face ‘Murder Insurance’ Regulatory Hearing: coverage if NRA member kills

Is it a scam?  Check AARP scamline 877.908.3360.

Jobs

Why not fix bridges, roads, schools, etc for 50 million need paychecks?

Winn-Dixie remains firm: No masks. Employees avoid customers or quit. Two Americas

Lowe’s requires masks for shoppers but won’t enforce it so workers don’t get hurt.

Lobbyists tell Congress to exempt biz from virus lawsuits: workers/customers be d****d.

Ann Taylor, Lane Bryant, Catherine, Justice, LouGrey close some stores: execs get $5.5 millions

After Great Depression, unemployment remained above 14% to 1940. It took New Deal & WWII

Who owns your account now?

Buying a home: research the whole deal before making the deal: virus strategy

Owe IRS but can’t pay? Ask for a plan before legal action: https://www.irs.gov/payments

How to start saving money: Make Smart Decisions: Free 4 week course Berkeley CA

Free money: your PPP loan can be forgiven—easy https://www.pppforgivenesstool.com/

Miracle:

TX schools go online only: virus pandemic serious; GA gov fights to keep masks OFF

Retail stores lead fight with mask requirement: can GA shut stores that require masks?

Positive news on the virus from scientists: will Washington listen and fund real progress?

US broke single-day record new cases at least NINE 9 times in a month: getting worse!

New treatment for Fragile X syndrome a marker for autism: reduces hyperactivity 

Heparin may decoy coronavirus and can keep it from making you sick

Asteroid hit Earth killed 75% of life: volcanic eruption may have warmed Earth for life

Kanye West is looking for empathy/sympathy for rants/running for President

Trump: $20 million ready for court fight over election results: already got Supremes set

Virginia: Robert E. Lee High School set to be renamed to John R. Lewis High School.

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alert