So how does your advisor broker survive on $0 commissions?

Happy Holiday

So how does your advisor broker survive on $0 commissions?

There is no FREE lunch especially in financial services. Schwab paid its chief executive, Walt Bettinger, an 8.9% compensation hike in 2018 to $15.6 million (down from 2016 of  $19.54 million), about 150 times the firm’s median employee pay of $104,281. Charles gave himself $6.05 million, up 9.6% from 2017. Like others, Schwab had a profit margin of 45%. So how do we give them so much money if not in commissions? Firms execute others’ trades: Selling order flow. Firms earn interest on your cash. Earn from loans: margin trading and options trading. Earn from money management accounts: quarterly fee for ‘holding’ your money. Securities lending: covers shorts. Remember, most firms have such huge economies of scale that trading millions of shares a day at only 10 cents each is worth $ millions for senior management. Some firms are market makers and so have a virtual monopoly on certain markets. For instance, two former Deutsche Bank traders were found guilty of trying to rig a key lending benchmark (LIBOR) that was considered one of the most important barometers of the world’s financial health. Some brokerage firms are also capital creators selling IPOs: the stocks of new companies for big fees. There is no need to pay for advisors. Amateur traders usually lose money. Most smaller active stock managers may become history since beating an index is too hard.

Avoid making Wall Street richer: https://www.amazon.com/Pimps-Wall-Street-money-middlemen/dp/151525254X

Congress just gave insurers and salespeople a big bonus

They passed the SECURE Act, "The SECURE Act will make it easier for employers to offer as part of their retirement plans annuities that provide a guaranteed stream of lifetime income," says an insurance lobbyist. Employers and their retirement plan person can entice us into high-cost plans that lock up our retirement dollars into an insurer’s vaults. Using industry trick-phrases like “guaranteed income you can’t outlive” and misleading charts with best possible outcomes, employers can wash their hands of any future responsibility for the inevitable low payouts down the line. For instance, when we chose an annuity of $1000 a month in 2020, we will have no recourse when it buys only $500 a month benefits later on. Currently, a retiree can shop and buy the best annuity deal out there with their money. Under SECURE, employers will be able to escape any future lawsuit when an annuity ‘guarantee’ goes wrong. We are NOT secure with SECURE.

Learn the annuity facts: https://www.amazon.com/Annuity-Decision-Tree-questions-answers/dp/1546454497

How much IRA money should you convert to Roth IRA?

If you have a good idea how much income and thus tax you will pay for 2019, you can calculate how much IRA money to convert. If you file jointly, your $100,000 earned income puts you in the 22% bracket. With the standard deduction of $24,400, you can estimate the amount of IRA income to be taxed on for the year. You can convert to a Roth IRA as much as you can afford since the $7,000 limit on contributions does not apply. Example: $100,000 - $24,400 = $75,600. With $5,000 added income (SS, pension, interest, dividends, gains, etc) you can convert up to $88,000 without hitting the 24% bracket. Of course you will owe an extra $19,360 tax on top of the $17,600 AGI income tax. Pace it out over time. Use the FREE efile software to calculate: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free: now open: https://www.freetaxusa.com/ .

Pay no tax in retirement: https://www.amazon.com/Pay-No-Taxes-Retirement-legally/dp/1507527977

How much will you be required to withdrawal from your IRA 2020?

IRS expects those over 70 ½ years old with a traditional IRA to take a certain amount out and pay tax on the taxable amount. Your IRA trustee or custodian reports your year end IRA account balances to the IRS and if you allow, calculates your RMD for the year. IRS tables tell us the divisor based on your assumed longevity. RMD is the ‘minimum’ you need to acknowledge and pay tax on. You can take more and pay more tax now. The IRS leaves it up to you to report how much of the RMD is taxable each year. Some people added already taxed money to their IRA (before the Roth IRA) so no need to be taxed again. You can adjust that RMD by removing money from your IRA and paying more tax before year-end. You might do that if you have no income other than SS benefits or you had to meet an emergency. Reducing the IRA balance by year-end will lower the RMD for the rest of your life. Thus if you have a $100,000 in your IRA your RMD is $3,773.58 because you are expected to live 26.5 years more when you are 71. If you took out $20,000 the year before the calculation, your RMD would be $3,018.87 the following year.

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

How to fight health care overcharges by your providers

Recently I got a bill from my colonoscopy provider. I thought all screening procedures are FREE since my expensive health care plan is usually excellent. My employer told me on my W-2 box 12a that my shared cost was $26,920.68. I did some research and printed out the FREE screening protocols for ACA ObamaCare compliant health plans. The ACA Preventive health initiative by Obama is meant to reduce long-term costs by catching problems early. I assumed my provider knew this when I confirmed that all the costs of my procedure would be covered. So I sent a copy of the ACA regs to the provider’s billing address with a note that I was covered. They just sent more bills and emails for months. The doctor’s office ignored me. Like in the movie Rainmaker, we pay premiums and the insurer-doctor complex assumes we will give up fighting. Since I knew they were wrong, I wrote a letter to the CEO of my insurance company asking him to pay the bill and set the provider’s billing clerk straight. They called the provider group HD and told me I would not get another bill. Most people would just give up and be sued and perhaps be thrown into bankruptcy. It happens a lot since we have no power against the insurer-doctor complex.

Know what you are buying: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

Vanguard cut fees AGAIN

Vanguard has cut some fees 20% for funds and ETFs. Why is that important? Over time you will earn and KEEP substantially more of your hard-earned money. If you are investing for the long term, you could give up $143,000 on $10,000 deposit with that 20% extra fee. Compounding the extra fees works for your advisor just as well as it can work for you. This fact never comes to mind for most of us because our employer’s HR person never tells us exactly and completely what our 401k or 403b investments cost. Some of them don’t know. Most of us have no idea which options are best for us when we start our plan. Some employers don’t even look at fees when giving the plan advisor the annual check up. Even if they know what the fees are, they don’t care because WE are ones paying them. It comes out of our earnings even before our earnings are credited to our accounts. We don’t see them. Our employer has the fiduciary responsibility for choosing the best options for US not the advisor. However, most employers don’t take their duty seriously and this has led to many lawsuits. Over time, this can cost you over $100,00 in lost earnings on your invested money.

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

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

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

GOP losing members and identity

GOP already drank the Kool-aid: no evidence necessary:

Mob boss never has live witnesses!

Letter by 700 impeachment experts

Trump’s desperate ‘jailhouse’ letter

Trump personal attacks on dead Congress member’s family: “look up” from hell

How Govt wastes our money: Congress spends another 1.7 Trillion we don’t have! 

35% charter schools funded by federal Charter School Program never opened or shut.

$ Trillions: Afghan army incompetent, poorly trained, corrupt, riddled with infiltrators.

Trump fights for his useless WALL instead of lower drug prices from drug companies

Can Congress do something worthwhile? 54.6 billion spam phone calls placed.

Why can’t Trump negotiate lower drug prices or buy from foreign countries?

Trump will reduce SS benefits for the disabled: cuts to pay for tax break for wealthy

Medical fraud is easy: scammers have taken gov (us) for $ millions.

SCAMS/SPINS:

McConnell GOP bending down to Giuliani’s ass for impeachment: Judge Roy Bean

Supremes help Trump hide his Russia money-laundering till 2020 and beyond.

Truth is the greatest victim of this fight to the death for GOP view of ‘democracy’

Putin has Trump’s back: Russian dictator echoes GOP “made up reasons” Ukraine did it

GOP compares Trump to Jesus: Trump treated worse, GA rep says. Lincoln shot.

Voting machine makers can’t account for security of our voting tabulations

WI removes 234,000 DEM voters from rolls to assure WI goes to Trump again.

GA takes aim at eliminating 309,000 DEM voters: voter suppression for 2020

KY went Dem and removed Medicaid work restrictions placed by GOP recently

Jeffrey Friedland promoted weed investment w/o disclosing he got paid fined $4.2million

Windhaven Insurance FL insolvent taken over by the state for lack of surplus funds

Mormon Church caught using the tax-exempt donations to prop up a pair of businesses.

MetLife caught cheating annuity beneficiaries out of $ millions: Fine, no jail time.

Robinhood broker order flow failed to guarantee receive best prices: cheap but not best

Samuel Lek caught manipulative trading for foreign traders using master-sub account

Ryan Skinner caught using scheme to have seniors liquidate securities to buy annuities

BEWARE: Advisor sells annuity promising LTC benefits: pay extra 1% for no coverage.

QBI ends in 2025: Roth may be better tax-advantage later than 20% cut now

Harvey Weinstein accused sex criminal has his insurance pay 30 victims $47 million 

Hype of 5G: different types may not match your phone, coverage areas, speeds-too early.

Antidepressant use by children jumps more than 20 percent after a school shooting

Who owns your account?

Don’t take your phone to do your crime: Govt will find you using Google data.

Govt will take your legacy if your heirs don’t withdraw and pay taxes in 10 years.

Fiat Chrysler and Peugeot merge: Fiat family run with French twist

Jobs

Retirement isn’t for everyone: some people just have to work—it’s their joy.

Employers tricked by health insurance brokers so we pay more

Miracle:

Oceans getting more acidic: CA waters double the global rate. Australia hits 105.6.

Impeachment rallies: #NotAboveTheLaw rallies

Pope finally turning over criminal child abuser files to the police only IF requested.

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Make sure all your tax documents come before you file

Make sure all your tax documents come before you file

Since there is no enforcement of tax document mailings by mutual funds, banks, brokerage and advisors as well as employers, check last year’s filing to make sure you have everything to file BEFORE you go to your preparer. Few keep the deadline of January 31. Call IRS if not by February 28. If you have a kid in college, make sure they do NOT take your dependent exemption themselves. They don’t need it to get their job withholding tax refund. You need it to claim deductions and an extra $500. Kids should check the box “Someone can claim you as a dependent.” https://www.irs.gov/pub/irs-pdf/f1040.pdf. When you are ready, IRS has efile partners that have easy software programs that may allow you file for FREE. Some charge depending on your state and level of income. Most will cost less than the advertised brands ($50+$30) unless you must use a paid preparer. Trump has doubled the number of forms required to file many middle-income returns so the average price will be higher. And you won’t pay a penalty if you paid 85% of what you owe. Many of us will pay MORE than Trump promised since the wealthy and corporations pay less. January 28 is the first day of FREE ‘human’ preparation by AARP tax-aides. Make sure you have all of your docs: https://www.irs.com/articles/tax-form-checklist. Sign up at locations near you: https://secure.aarp.org/applications/VMISLocator/searchTaxAideLocations.action.

Long term care policies benefits and prices vary by 243%

If you are wealthy you may not need a policy. If you are NOT wealthy you may not be able to afford this coverage. You can buy from a new insurer with better understanding of the cost profile. Most advisors say buy at a younger age and change the benefits to meet your needs. Great for them but how to cope with increasing prices for what may be a very long time—age 55-85 means 30 years at $3-4,000 a year. AND you may not need coverage. That’s $100,000 wasted cash vs. $500,000 invested at 8%. Unless you know you will need it soon, you may be better off paying cash when the time comes. $4,750 to $2,500 per year LTC policy prices vary greatly.

Shop around: https://www.amazon.com/Long-term-Care-Insurance-Updated/dp/148274001X

A pathway to health care for all

CA new gov proposing extending ACA ObamaCare to insure more residents. This incremental move may light the way for other states concerned for its citizens. Newsom uses state funds to fill in the gaps for those without coverage and ignores the mandate. More carrot and less stick may help CA do what others haven’t up till now. About 10% of its non-elderly population lacks coverage. A study last year projected a steady rise, finding that Republicans' Obamacare sabotage and other factors would increase the un-insurance rate to 13% by 2023, with about 1 million more uninsured Californians, barring a policy shift. Massachusetts has its own mandate and subsidy program, and it has the lowest uninsured rate in the nation. Families are working hard to pay medical bills but still need help even with 4 part-time jobs and working mom.

Buy only what you need: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

Are ‘Target Date’ funds right for you?

A recent survey of employees enrolled in TDF shows they are misunderstood. The industry does its best to keep those with low pension balances in the dark. The industry is a for-profit one and has no interest in explaining this low-cost high-return strategy for retirement funding. Instead of showing how this option gives employees the best shot at a successful pension fund, working folks have the idea that this strategy will assure a safe retirement income, will never go down, is guaranteed by the government and becomes a cash asset in retirement. Workers do know TDF asset allocations shift from stocks to bonds over time. Most employees have had no investing experience and so if their 401k default is TDF, they never learn what they really own. Employers are not in a position to teach investing and the fund complex they use has no responsibility to provide this service. Employers have all but abandoned paid worker pensions. And no one has stepped up to provide the basic financial education all of us need at our first job. https://www.amazon.com/Financial-Literacy-Steps-Success-Money/dp/1491044616

Avoid double taxation when you inherit an IRA

When you inherit an IRA from someone, you need to know the amount they contributed over the years as after-tax non-deductions. Since IRA accounts have been around, contributors who wanted to keep on investing even without current tax deductions because of their incomes, were able to keep building their retirement nest egg. If they started taking distributions mandated by the IRS as RMDs at age 70 1/2, they had to calculate the amount to exclude from taxation as regular income since they had already paid tax on the contributions. They should have filed a form every year (Form 8606) keeping track of this so called ‘basis’—the amount they already paid tax on. The financial trustee for this account never had to keep this information so you as the beneficiary must go back into the tax records to compute the excluded ratio. Otherwise the IRS will treat the whole distribution to you as taxable at your rate. The last tax return should have the Form 8606 so you and your tax preparer can take it from there. Of course, now we have the Roth IRA which shields all the growth in your IRA contributions from taxation. Use the Roth for your current investing or convert your old IRA to the Roth for totally FREE distributions when you take them. You do not have to take them so they are the perfect working-person’s estate plan. Heirs pay no tax.

Use the best for your heirs:  https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938

What did John Bogle give us?

John Bogle died Thursday. John Bogle created The Vanguard Group—the mutual funds owned by us—the investors—at cost, so we could keep more of what we earned. At work in a financial firm one day, he responded to the fall of his clients’ accounts by noting that speculation was not in the best interest of the firm’s clients. Bogle fixed on the role of a firm as steward of the clients’ funds. In 1976, his new firm introduced the index fund to individuals. Indexing was run by banks for some large investors. In 1977, Bogle stopped selling funds through brokers. The company eliminated sales charges and became a pure no-load mutual fund complex—a move that would save shareholders $ billions in sales commissions and fees—increasing their gains. Stewardship is the attitude of salaried workers at Vanguard which is now the largest provider of funds to investors. Noted economist, Paul Samuelson ranked "this Bogle invention along with the invention of the wheel, the alphabet, Gutenberg printing." Jack Bogle’s legacy is rooted in the concept that investing should be conducted solely in the interest of investors. Bogle’s single mindedness on fiduciary stewardship finds its meaning in the company he founded, the (low cost and simple) product strategies and corporate governance reforms he champions, and the nine books he wrote. The industry has followed Bogle’s lead—almost every investor is now paying less and earning more because of this industry disruptor.  See attached.

Industry disruptor--Pay less; earn more: https://www.amazon.com/Disruptors-Three-Innovators-increase-WEALTH/dp/1720857563

Real estate moguls lick their chops at Trump’s ‘opportunity zones’

Trump did Jared and friends a big favor. Moguls who develop real estate or fund businesses in these areas are able to defer capital gains on profits earned elsewhere and completely eliminate them on new investments in 8,700 low-income census tracts. The goal is to reinvigorate these areas. But the question is whether the 2017 tax law will, as Mogul Mnuchin predicts, pump $100 billion into places that need it most, or if investors will play it safe by funding projects in a few zones already on the upswing. But like most deals, there are hidden terms. Investing in a relatively illiquid partnership or corporation with the intent of holding the investment for as many as 10 years in order to maximize the available tax benefits requires a strong conviction regarding the merits of the investment itself. Some areas are just not ready for money without people. And state tax codes may not help. The Federal tax benefits don’t exist until the property is sold—no gains; no deduction. And be careful about rolling over their eligible gains into a QOF within 180 days. The rules are complicated.

Use your simple tax credits first: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

**************

Make America, “The Don”, Great Again

Senile Psychosis or Parkinson’s delusions? quetiapine and clozapine

Truth isn’t truth, his lawyer says

Two Americas: A Banana Republic? Do we really want an infant king? Daddy Putin!

McGahn was ‘lodestar’: Told Trump ‘NO’ - saved Mueller!

J F Kennedy was 43 when he beat Nixon

***********************

How Govt wastes our money: Congress spends $1.3 Trillion we don’t have! 

Sec. Defense, former Boeing exec, OK paying too much for Boeing tanker for AF. Graft?

Mortgage approvals delayed by gov verification on hold; IRS, VA and FHA closed.

SCAMS/SPINS:

Deming Payne caught lying about fake $800,000 client redemptions. 3 mo suspension

Robert Kahn, MO; Andrew Schade, MI; John Wheeler, FL caught misleading clients.

VanEck Vectors BDC Income ETF (BIZD), charges 9.41% a year: you lost money?

Gary Basralian NJ caught stealing victim’s accident settlement money

Idealogs Coulter/Limbaugh cost us $25+ billions as Trump’s confessors

Trump to farmers: I’ll “make it easier” for some immigrants to come into the country.

GOP supports lifting sanctions on Putin friends: Trump rewards Russia for election win.

Trump, as dictator, puts 50,000 in slavery chains—says work without pay is good thing

Trump, as dictator, takes revenge on Dems: Pelosi secure flight cancelled: ‘stay here’

Trump, as dictator, lied about how many kids were separated: still don’t know where.

Lettuce growers begs FDA to come and inspect so no more die of  E.Coli

Flight-safety systems at risk with no inspectors & fewer TSA checks.

MetLife stole pension payments to 13,500 retirees claiming they were dead. No jail time.

PA state pension fund overpaid managers $1 billion in 2017—retirees lose; cronies win.

Sterling Jewelers caught opening charge acct without consent: owns ALL jewelers

Hyundai, Kia recall 168,000 for fuel leaks and fires and software

Brokers who might owe you an arbitration settlement or award --filed bankruptcy?

“Individual 1” could be a Russian “asset”: Why FBI opened a file on The Mob Boss.

GOP can’t say “You’re fired” to The Boss because his voters will ‘kill’ them in 2020.

The Mob Boss can never go to jail: Trump has Kava as Supreme so no indictment.

‘No man is above the law’ … well up till now. Dictators nullify courts first, then votes.

Supremes protect Don’s ‘Orders’? – GOP: ‘Sure, pres can change Constitution anytime.’

----------------------------------

Jobs:

Work for free: TSA and flight controllers and Coast Guard need replacements now.

Jobs that pay in health care: leader in job growth.

Nissan lays off 700 in MS

Who owns your account now?

Trump to take TX homeowner’s property: Is land like a gun 2^nd amendment?

ATT has been selling my location data and I didn’t get a cent. Past royalties?

Save money 18 ways: https://www.stretcher.com/stories/11/11jan17e.cfm?DS0114-1

Your investments are back to where they were last April and climbing.

WA cancels NRA insurance for killing people: illegal “to insure criminal activity."

Sears bought by Lampert for $5.2 billion

Miracle:

Bishops ‘forgot’ everything they learned about sex. Cardinal: I forgot sex abuses !!

A gymnastic milestone and a ’10’ to Make America Feel Good Again: Twitter

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Tax-FREE retirement is winning the 'lottery'

Tax-FREE Roth 401k or Roth IRA?

If you are lucky enough to have the Roth 401k offered by your employer, you must understand the pros and cons of both Roth accounts. In both, you never pay tax on your retirement accumulations. So if you can aggressively fund your Roth 401k, you could easily reach $1 million tax free because your $100,000 total contributions over time can COMPOUND at 10% by age 67. If you can invest just $9 a day, $250 a month, you can still have $1 million tax free at age 67, you just have to start earlier. If you can’t do a Roth IRA because of limits, try a ‘back-door’ Roth. COMPOUNDING at the long-term stock market rate of 10% means your money doubles every 8-10 years. Look at the https://www.bankrate.com/calculators/retirement/roi-calculator.aspx. Most of your tax-free balance will be accumulated capital, not contributions: FREE MONEY.

Pay tax now or much more tax later: https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938

Winning the $1 million ‘lottery’

$1 million tax free. You can spend it all—no taxes. Usually you must pay HALF your winnings to fed and state gov. $1 million can provide over $100,000 per year for life. Everyone who plays this ‘lottery’ will win. This $1 million lottery is not awarded every week. You must wait. Each week you buy $9 worth of ‘chances.’ You don’t win every week or month but you WILL win eventually. This lottery is a sure thing eventually because you actually are buying a piece of the profits of many successful companies. Some companies make a profit every year and some make a huge profit some years. Over time the ‘chances’ you buy get more valuable. Think about all those tickets of your past losses in the drawer. They are worthless because you did not win and every week you will lose—almost guaranteed. Thank god, you have a better chance of being hit by ‘lightning’ than winning any week. This lottery is not a lottery but a sure way to own $ million worth of all the companies you buy things from—groceries, electronics, toilet paper, electricity, cars, everything. You own Apple, Google, Microsoft, J&J, Facebook, Exxon, Morgan Chase,  Disney, and more. The value of your ‘chances’ go up and the profits the companies pay buy more ‘chances’. Buy from the largest ‘chance’ seller.

Buy the lottery that you WIN: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

Are songs royalty streams right for you?
For those who have a crystal ball, buying the right to receive music royalties might be the alternative investment you have been looking for. Winning bidders typically get royalty payments on a quarterly basis, with a rate of return Royalty Exchange says is often in the double digits. The longevity of the royalty rights varies. Some royalty rights are limited to 10 years, while some offers include copyright ownership, which means the payments can last for decades. Some investors think royalties can never end. Royalty Exchange, the middleperson, launches three to five new auctions every week. Songwriters have a tax incentive for selling. Under the law, the money songwriters make from selling all or parts of their catalogs is treated as capital gains, taxed at 0, 15, or 20%. Royalty revenues, meanwhile, are treated as ordinary income, taxed as high as 39.6%. "There are people whose only real assets are their royalties," he said. "Their financial security is based around how they leverage those things."

There are better ways to receive income: https://www.amazon.com/Your-Retirement-Portfolio-Tax-FREE-Income/dp/1483994090

Does your broker/advisor live in these states?

Connecticut, Nevada, New Jersey, New York, and other states have passed laws or proposed regulations that mirror some of the federal rule's requirements to treat you with respect. Even though Trump cancelled the Fiduciary Rule—you receive advice/product that is BEST for you not for the institution—these states have or will protect you from outrageous commissions and fees, inappropriate products, and misleading information. Obama said without this law, you and I could give up thousands of dollars when we moved our retirement money (401k, 403b, IRA, pensions). My industry (financial:  http://dankeppel.blogspot.com/) can’t make $millions and $millions by giving you advise without putting our own high-cost products in front of you. In fact, most advisors and their firms don’t even carry the best products for you because they must make money to survive. Everything has changed in the last decade: discount brokerage, discount mutual funds, discount insurance, etc. My friends and I have left the old industry model.

Time you started saving:  https://www.amazon.com/Tricks-Trade-Mutual-Insurance-Annuities/dp/1535497289

Vital steps to buy a house

Don’t even look for a house before you understand the process. No use frustrating your family if it can’t happen now. Offerings and loan rates change daily. First, check your credit scores at www.myfico.com and errors at www.annualcreditreport.com. Check rates on trial amounts at your bank and then shop around at www.bankrate.com and https://www.quickenloans.com. I used them—very fast and efficient. Big banks have 10 plus people handling your loan and it takes 3 times longer. Second, find out ‘how much can you borrow?’ The final answer depends on your income and the lender, but usually it is monthly costs (mortgage, insurance, and property taxes) can’t exceed 28% of your gross monthly income. Fannie Mae increased its maximum DTI ratio to 50 percent, up from 45 percent, in July 2017. Third, the standard down payment is 20% but you may find exceptions: Federal Housing Administration or the Veteran’s Administration. Fourth, your lender may want you to pay down debt or temporarily reduce spending. If your family helps with the down payment, let it ‘age’ in your account for a few months. Now you know what houses you can afford and can ‘lock in’ a rate/terms. I used www.realtor.com and found a 2 family to help me pay for the mortgage. Timing is everything. Get your loan approved BEFORE you shop so you can pounce.

Save on insurance too: https://www.amazon.com/Homeowners-Insurance-Beware-Coverage-Policy/dp/1480100870

Is tax lien investing right for you?

Risk you must understand for this kind of game of chance. When a property owner fails to pay property taxes, the municipality in which the property is located can sell its tax lien — the right to foreclose on a property when the owner has failed to pay taxes. So you can force payment plus costs plus profit by threatening to take your neighbor’s house away and sell it. Most tax liens purchased at auction are sold at rates between 3% and 7%. If the owner does not pay you, you get to foreclose which can cost over $10,000. “It’s complicated. You have to understand the details,” according to an observer. Each state is different, so buying and collecting on a lien is how amateurs fail. Compare alternative assets like owning diversified real estate funds: REITs.

Mandate to have health insurance still exists

If you have been without insurance this year because you heard Trump cancelled the mandate, surprise—the mandate penalty is subtracted from your refund unless you qualify for various exceptions. So if you are not owed a refund for 2018, there will never be any consequences for not paying the penalty tax. Trump won’t collect it now. Trump has dismissed comprehensive coverage in his special ‘short-term’ policies. He has made buying coverage without protections easier so that he can claim his plans are “cheaper and better.” Trump does not understand—he has always had it. It is not magic—his plans do NOT cover pre-existing conditions and have payout limits. You may be denied or cancelled. You may have premium increases. Most Americans like ACA now that they have it. If you are lucky, you live in a state that maintains the guarantees of ACA. Before ACA you could buy cheap policies—they were junk and didn’t cover you when you needed it. You can’t buy insurance after you get sick or have an accident. Like car and home insurance, it is a way to share the risk of a huge loss. You pay premiums all your life for a catastrophe you hope won’t happen. The alternative is bankruptcy or destitution.

You need full coverage: Trump has it, why not us?: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

Consumer Reports: Most reliable vehicles

Your vehicle ratings by brand are not unusual but look closer at all brands for the type—SUVs popular still (even Porsche has one??). Some specific models were dropped from the CR list altogether. Biggest ranking drop: Honda, Chrysler, Volvo, and Tesla. Volvo is now Greely (Chinese), Chrysler is now Fiat and Tesla is still working out the kinks. Vehicles are now mobile entertainment units not transportation. If you need quality reliable transportation not TV screen gadgets, go for a 3 year old thoroughbred like 2016 Lexus or Toyota from $12,500 to $30,000.

Save with coverage discounts too: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

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Make America, “The Don”, Great Again

Senile Psychosis

Two Americas: A Banana Republic? Do we really want an infant king? Daddy Putin!

McGahn is ‘lodestar’: Told Trump ‘NO’ - saved Mueller!

***********************

How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!

Trump breaks 1987 Reagan arms treaty to spend more on weapons of mass destruction.

GOP promises 2^nd tax break as teaser for midterm election of more spendthrift GOP.

Air Force buys $1,280 coffee cups that shatter automatically.

TX GOP closes voting sites-long lines and DEMs must take off work. Voting rights?

SCAMS/SPINS:

Chris R. Kubiakk, WI  stole $270,000 from clients’ accounts for personal use.

John G Schmidt OH caught stealing $1.6 million retirement funds from boomers.

Cash Express caught threatening loan collection it can’t make against consumers.

Christopher Faulkner, Breitling, stole $23.8 million promising oil/gas profits.

23andMe’s health reports are dangerously incomplete, geneticist says.

Cancer care marketing misleading—big biz budgets add spin for profits.

Why drug prices keep going up—It costs $200 million to stop Congress from acting.

Trump to close all borders, ports, tourism, trade—any non-white immigrants.

Trump teases his voters with another tax cut but GOP says no way. Con man fake news.

Trump to pardon Charlottesville Nazis?? Neo-Nazi caught trying to flee from law

GA to suppress votes of 1 million ‘non-matching’ voters: aims to erase non-whites.

Manafort, Trump’s tax evader-manager, suddenly in wheelchair before sentencing.

Saudis kill 100s every day in Yemen—Khashoggi is just a ‘fist fight’—hospital record?

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The Mob Boss can never go to jail: Trump has Kava as Supreme so no indictment.

‘No man is above the law’ … well up till now. Dictators nullify courts first, then votes.

Young lady explains what Trump means: “scary time for men.” Respect, not rape, Don.

Supremes protect Don’s mob -- Ross’s legal deposition canceled.

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Jobs:

Economy is booming but 60% of us aren’t getting the benefits: Why can’t I make it?

Income inequality factor in communities with mass killings; gun laws reduce all crime.

Who owns your account now?

Americans seem to like ObamaCare—don’t use his name. GOP still repealing 55 times.

Trump defines gender from now on: you lose free choice—no 2^nd Amendment for that.

DIY repair outlawed by GM, Deere, others: we buy it but they own circuits/algorithms.

You can’t uninstall—they own algorithms: track you after ‘uninstall’ Can’t cancel Uber.

Save $ HALF: Compare drug prices in your area: https://www.goodrx.com

Miracle:

Cancer patient gets his last pizza from …225 miles away.

Do we really want to keep immigrants out of US? We need new ‘blood’ to survive!

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts

How is your 401k?

How is your 401k?

Fidelity published the average balance by age. Each of us is at different financial stages so averages don’t mean much. Most of us have SS benefits to add to our total. The average benefit today is $1,342 a month which will increase by a COLA if Congress passes an increase each year. The average monthly income that could be produced from the balance for a 65 year old ($200,000) is about $700 a month in today’s purchasing power. Unless we plan on receiving a pension of sorts or working longer, $2,000 a month from each spouse may not be enough. Plus, we all know that you can never have too much. We need to consider how we can improve our situation with tax-FREE savings. This parking lot attendant did it by following his Mom’s advice.

Now we can create tax-FREE income: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

Why are wages the same as in 1985?

Inflation over the last 40 years has left most of us with the same Buying Power as of 1985 down from 1968. What happened? Automation and technology have left many jobs on the ‘shop floor.’ In 1985, as manager of about 40 people, I oversaw the computerization project of our entire process. My 4 assistants could make decisions immediately from weekly reports that told us what was happening (and wasn’t). Within 10 years, every change or entry made by now 20 staff since those in the field entered data once on a network computer and not reentered by my office staff. In my next job, I got the suppliers of our products to make the data entry. They streamlined the process so there were no more paper copies of customer contracts to be signed or filed. In my next job, most of the data entry was by the customer and by scanning bar codes. I no longer had a receptionist/secretary. I could run meetings and consult with direct reports by phone anytime day (or night, in a pinch). Meanwhile, my salary and bonus were doubled and my boss’ quadrupled. Today CEOs have compensation 500 times that of line workers—up 1,279%. The value we created per person using machines provided gains for senior execs and stockholders. Buying Power wages have not changed. We work 2 jobs.

I use an IRS-OK tax-shelter to keep more: https://www.amazon.com/Your-Tax-Haven-Tax-FREE-Americans/dp/1482659441

Can we afford NOT to have Medicare for All?

The rate of bankruptcy has increased 204% since 1991 often because of health care costs. This 87 year old is going to be in the truck next to you in order to pay his wife’s medical bills. Is this what we want to do in retirement? There is enough money in America to pay for health care! It’s just sitting in the accounts of the top 10% fellow Americans trying to pay as little tax as possible. For instance, some of the Billionaires are paying only 17% total tax—about HALF the amount of the middle-class worker. Mitt Romney and John Kerry paid less than 15%. Most of the highest net worth Americans are paying a fortune to lawyers to reduce the amount they pay every year—using legal and illegal means. The IRS just gave the wealthy with money overseas a discount on their taxes if they declare with the Offshore Voluntary Disclosure Program. Trump and the GOP have proposed letting the wealthy delay paying the RMD tax. They allowed “junk” insurance to be sold which is cheap because it does not cover all expenses. The GOP continues to pay socialized supports to the oil gas agriculture and mining industries. So America can afford it if we chose: https://www.amazon.com/Americas-Socialism-for-Rich-only-little-people-pay/dp/1535218584

How can you avoid SCAMS in financial services?

Wall Street is a ‘war’ zone! We must enter this war zone with the protection of knowledge. We could lose all our lifelong savings in one trade. Brokers and advisors have weapons that can 'kill' us financially. They are hidden behind lies, exaggerations, obfuscations and straight-out fraud like faking our signature. Half-truths and our assumptions and greed are also at play. These are our 'soft' underbelly targets. There are warning signs but most SCAM situations require us to be knowledgeable and to check every move. My first day as a manager at a security firm I was told: ‘brokers are [car] salesman.’ Our future life is at stake and yet we give strangers our money so easily.

Take Buffett’s advice: https://www.amazon.com/Avoid-Scams-Brokers-Advisors-Sender-ebook/dp/B07GZ1WSP1/

Wealthy take a dive into CLO again: mortgage loan disaster taught us nothing!

The superrich pouring $ millions into collateralized loan obligation. CLOs means possible bank failure again. They are after the possible double-digit returns. But dissenters have raised questions about whether the frenetic pace of sales is spurring reckless behavior just as the prospect of an economic downturn looms over an increasingly leveraged corporate America. Yes, history could repeat itself when you transform riskier company loans into bonds of varying risk and reward and then promote them with “every smart rich person owns them.” One promoter says “you only have issues if … you have losses.” Yes! These sub-investment-grade rating loans are mixed with equity so they may pay better if you wait. Returns on CLO equity can range from 12% to a remarkable 20%, standing out in credit markets where corporate bonds have delivered little or negative returns this year. Banks think they understand the risks just like last time. Remember we taxpayers had to bail them out—even foreign banks—and that makes bankers ‘adventure’ capitalists for FEES.

Protect your investments in a tax-FREE trust: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

We are paying an extra $14 billion a year in broker fees thanks to Trump

New report compares the fees we pay under Obama’s vs Trump’s fiduciary rules. The report examines the stock prices of 36 publicly traded brokerage, mutual fund and life insurance companies, finding they lost a total $14 billion in value as a direct result of the Obama fiduciary rule. It mandated that sellers offer the ‘best’ product to retirement account clients. “The profitability and value of investment firms is reduced by the inability to collect conflict-of-interest fees." In other words, firms did not receive $14 B in fees from us on our money during the Obama period. Obama saved us about $17 billions a year. This was mainly annuity commissions which are definitely NOT products in your BEST interest but in the firm’s best interest. Firms have plenty of costs that must be passed on to us one way or another. 

Avoid their fees: https://www.amazon.com/Pimps-Wall-Street-money-middlemen/dp/151525254X

Will you owe tax penalty in 2019?

Trump’s new law is effective in 2018. If your property tax or state income tax is over $10,000, you are going to owe more because you can’t deduct these taxes anymore. If you are used to deducting employee expenses and 9 others, you may also owe. The IRS notice 182 says you may have a penalty if you owe more than $1,000 next April. Individuals, including sole proprietors, partners and S corporation shareholders, may need to pay quarterly installments of estimated tax unless you owe less than $1,000 when you file your tax return or you had no tax liability in the prior year. Other taxpayers who may need to make estimated payments include someone who:

• has more than one job but doesn’t have each employer withhold taxes.
• is self-employed.
• is an independent contractor.
• is a representative of a direct-sales or in-home-sales company.
• participates in sharing economy activities where they are not working as employees.

Make estimated payment by Sept 17 with Form 1040-ES page 11.

Start your tax shelter now: https://www.amazon.com/Tax-Shelter-Young-Americans/dp/1500426520

Insurers want to put annuities into 401k for more fees

Pro: They argue that annuities are the “only savings vehicle that carry a guaranteed, contracted, lifetime income stream, outside of Social Security and pension benefits.” Con: 401k accounts already delay taxes on the gains. Annuities costs are high compared to the alternative—IRA which also delays taxes. The IRS already mandates a lifetime income stream. It is called an RMD calculated by your IRA trustee who doesn’t charge for this service. IRAs are protected from creditors like annuities. The guaranteed benefit misses the point of having income for life. The income is usually cut in half because of inflation. You may begin with $1,000 a month at age 65 but it will buy HALF the goods you need by age 85. 401k accounts are run by your employer meeting certain fiduciary standards. Annuities are not. To guarantee a lifetime income stream is a process best left to an experienced planner over time so you can make adjustments to your investment mix as needed. Annuities protect insurers not you.

Don’t give up 3% annuity fees: https://www.amazon.com/NO-Cost-Annuity-Years-Income/dp/1508487308

Where is your increased income?

Census says: Middle-class income rose to the highest recorded levels in 2017 and the national poverty rate declined as the benefits of the strong economy lifted the fortunes of more Americans. The median U.S. household earned $61,372 last year, meaning half of the families in the country brought in more income than this and half earned less. But the nerds say median income last year was not statistically different from 1999 or 2007. A change in methodology in 2013 makes precise comparisons difficult. All the income figures have been adjusted for inflation and are reported in 2017 dollars. Here is the rub: “The extra pay from having another person in the home working is the largest factor contributing to the increase in income.” Our wages did not go up! We are just working more hours. Americans living in official poverty stayed at over 12%. Remember, earned income is the Gross number not cash in pocket. Our health care costs went up. Fewer people can afford a house or rent because property costs have ballooned. Young people with school loans went back home since they can’t afford the basics of family life. And the worst is yet to come: Who will pay for the $1.3 Trillion deficit this year? Not the wealthy! Most of the tax breaks mean they will pay less in the future: $21.3 Trillion.

Avoid their taxes legally: https://www.amazon.com/Pay-No-Taxes-in-Retirement-legally/dp/1507527977

****************

Make America, “The Don”, Great Again

Senile Psychosis

Two Americas: A Banana Republic? Do we really want an infant king? Daddy Putin!

McGahn is ‘lodestar’: Told Trump ‘NO’ - saved Mueller!

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How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!

Trump keeps 177,000 troupes in Syria, Afganistan, Korea, Germany, etc etc. $700+ B.

Trump follows Putin lead to raise retirement age—‘Save’ SS by cutting benefits-old song

Trump EPA to allow more methane to heat up the atmosphere for more hurricanes/floods.

Trump subpoenas every NC voters’ records--20 million to stop votes for Dems. NC: NO!

GOP still not reform flood insurance: Florence hits east coast. Trump to help whites more

SCAMS/SPINS:

Don’t fall asleep in class: Student got tasered for falling asleep in class in Smithville OH

Drug companies say hospitals jack up prices of drugs in hospital 500%. Hospitals say …

Paltrow ordered to stop making false claims for her Goop stuff.

GM recalling 1 million trucks/SUV for power steering faults.

MyPillow told to stop making false claims for his stuff. Fine $1 million; still false claims.

Neurolumen sued for false claim on PTSD, MS, fibromyalgia pain.

Stream’s deceptive marketing of business opportunities attacked as false.

Doctors give out opioids like candy— no diagnosis no reason—except drug firm money!

How is 2,975 dead in Puerto Rico an "incredible unsung success"? Trump takes $10 mil.

SII caught failing to supervise sales of high fee illiquid real estate investment trusts. 

Barry Honig & others caught in microcap “pump-and-dump” schemes taking $27 million

Edward Daniel lost license after 41 years: unsuitable investments 2011 and 2015.

BB&T caught hiding wrap fees--overcharging clients $635,535; not disclosing conflicts

Cadaret Grant Co caught selling leveraged oil-linked exchange traded note & annuities

Luke Eddy MA caught impersonating client and forging her signature.

Market timing is back in vogue: Stock sellers like August trading for a change.

Emil Botvinnik Jovannie Aquino caught trading $3.6 mil client loss --$4.6 mil fees.

Citi caught overcharging retirement plan and charitable organization customers.

Timothy Ayre MA caught selling HempCoin an unregistered cryptocurrency security.

GPB Capital Holdings illiquid private placements investigation by MA: 4,000 at risk.

FUTURE INCOME PAYMENTS sued for claim “not a loan” when are loans hi interest

Jeffery J Kelly caught failure give docs re: unethical behavior so barred from industry

Insulin prices doubled to pay for CEOs $ millions pay packet

Health care scams double: low-cost Trump plans offered—premiums buy no coverage.

SS scam: fake SS official asks for info or tells you to send gift card to reopen account

TX cop kills neighbor in home—I thought I was home. Door Keys? Wrong Floor?

When we all have guns for ‘protection,’ who will police shoot first? Safe in your home?

               police shoot owner who already shot intruder. Kids will have plastic killer guns?

Jobs:

Prepare for a good job: 25 jobs trending to $100,000 plus

Health care hires thousands per week as more in Medicare plus new procedures

Work at home scam or real gig? 10 jobs to try for experience and money.

Ford cancels production move from China to US: no profits on Focus built here.

Poll: 2/3 people think automation will eliminate jobs for ordinary folks soon.  

How many more decorated national security officials alienated by Trump?

Who owns your account now?

Ohio National stops selling annuities: "It's a declining market," expert says.

Home or Rent: A challenge and the duplex solution.

Retirement accounts target of cyber crime: protect your account.

ACA in WV provided health account for 189,000 uninsured: don’t know its ObamaCare

Miracle:

Ruby slippers located in FBI sting: $1 million insurance finder’s fee.

Uninsured for health falls again from 48.6 million to 28.3 million Americans

IAN

41 Watchung Plaza, B242

Montclair ,  NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts