Target-date funds right for you?

Target-date funds are millennial’s choice investment

Many millennials are turning to target-date funds (TDFs) as a set-it-and-forget-it investing method. Although TDFs are gaining popularity with millennials and company-sponsored retirement plans, it’s important to know the benefits and risks associated with them. Almost all workplace plans offer TDFs as an option. This option may sound ideal as they will not have to choose which stocks and bonds to invest in, nor the percentage of each. TDFs are also set up to automatically adjust to a more conservative allocation of assets as the target date approaches. There is no research done to determine if the allocation is divided appropriately between stocks and bonds, based on the individual’s risk tolerance. Actually, the research is not conclusive on this anyway. This seems OK since retirement is far off. TDFs do not take into account an individual’s years until retirement, any inheritance income or lifestyle changes over time. This ‘average person plan’ may carry risks but most folks don’t have the knowledge to make a specific plan, especially at a young age. To their benefit, TDFs don’t take market conditions into account. Over time, market timing does not work anyway. TDFs are not for those who can afford to ‘plan for retirement.’ Since the average ‘managed’ plan reduces returns to 3.79% vs 11%, most retirement savers are better off with a low-cost TDF especially since advisors cannot know when the next 2008-type crash will occur.

Let Buffett help you: https://www.amazon.com/Warren-Buffetts-Investment-Strategy-Forget/dp/1484822900

Never rollover when transferring money from a retirement account

So says IRA guru Ed Slott: "When you do a rollover, three things happen and they're ALL bad!" The only safe method of moving tax-advantaged money is by direct transfer or trustee-to-trustee transfer also known as direct rollovers. You don’t touch the money. The funds go directly from one plan to another without anyone touching the money in between, as opposed to indirect rollovers, where a check is made out to the IRA owner or employee personally. Once your employer or plan cuts a check to you, it is too late. They have already coded the transfer as taxable to the IRS and taken out 20% tax. That means you pay taxes on the money and you may pay a penalty. It does not matter that you did not intend this to happen. Many plan clerks do NOT even know you can avoid the 20%. They don’t know about trustee-to-trustee transfers. Many swear you must withhold 20% when you move your qualified funds. Ask to speak to the supervisor FAST. Make sure your transfer is coded ‘G’ Direct rollover and direct payment on form 1099-R. If it is miscoded, ask for a ‘corrected 1099’ from your plan administrator.

https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/147505793 

If you hate to lose money, try looking away for a while

People ask me, where can I put my money that is ‘safe’? I say, is this money you need in a year or 5 years? Time determines the safety of money not the type of vault. I explain to them that earning 1-2% from a bank is ‘safe’ for 1 year but is ‘unsafe’ for 5+ years. Why? Money represents buying power and over time money loses buying power. You could buy a gallon of gas for $1.70 in 2016 but now it is $2.74. It costs $40 or more to fill up now. It was not long ago that you only needed $20. Food costs have risen. Warren Buffett, star investment advisor, says: “We continue to make more money when snoring than when active." Money grows faster when you put it to work and DO NOT watch it. Buffett won his $1 million bet over a Wall Street guru by ‘looking away’ from a simple market index fund which does not change companies over time. No trading, no quitting. In 2014, there were 72,197 Americans aged 100 or older. That’s up 44% from 2000. You will need buying power if you become a centenarian.

Keep your buying power: https://www.amazon.com/Just-Takes-Time-make-money-fashioned-way/dp/1979380945

Put your money to work—so you don’t have to.

Accumulate $250,000, $500,000 even $1,000,000.

Compounding is what Warren Buffett counts on for success.

“My wealth has come from a combination of living in America, some lucky genes, and

compound interest.”

How much can your money earn for you? $1 million from your $99,000 investment.

Your $250 a month investment may grow to $1,000,000 or more and it can be tax FREE. That $3,000 a year for 33 years ($99,000) compounds to $1 million if you put it to work: Low-cost stock index funds earn 11% per year after fees over time. Advisor-managed funds earn 3.79% over time. Compounding does not work as well if your advisor is trading, market-timing, rebalancing or rotating sectors.

Put money to work: https://www.amazon.com/DIY-Financial-Independence-Freedom-Workbook/dp/1088908500

NY best-interest rule keeps annuities that mislead out

More insurers are deciding to pull products like annuities and life insurance from the New York market as the state's best-interest rule takes hold. Lincoln Financial suspended sales of fee-based annuities in New York on Aug. 1 in response to a particular consumer disclosure required by the new rule, Insurance Regulation 187.​ The rule prevents acts or practices that are unfair or deceptive. It ensures that a transaction is in the best interest of the consumer and appropriately addresses the insurance needs and financial objectives of the consumer. New York's best-interest rule is part of a movement by some states to raise sales standards for brokers and financial advisers following Trump overturning the Obama regulation that aimed to increase the standards for retirement accounts like 401(k)s and IRAs. The New York rule is on par with and may even be tougher than the DOL fiduciary rule, which the insurance and brokerage industries lobbied hard to kill.

Fiduciary Rule protects US: https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275

Rich would need to pay their fair share under Warren’s policy

The top 15 richest Americans would have seen their net worth decline by more than half to $433.9 billion had Elizabeth Warren’s plan been in place since 1982, according to a recent study. But that assumes their legion of lawyers and accountants did nothing—most unlikely. Plus, our representatives would receive countless $ millions in election gifts to make sure there are plenty of loopholes and subsidies to keep the wealthy, wealthy. You know they will never give up their tax-credit class status without a fight.

Take your credits now: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

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

Taking money away from real military projects: ‘Nobody better at the military than me’

Why Congress does not stop opioid pandemic: we must pay for treatment, 70,000 dead.

Trump weakens protections for new financial products by giving ‘blank check’ to firms.

Trump allows our water to be polluted again: reverses another Obama reg

IRS goes after small $ cheats not the large $ evaders: wastes resources; we pay the taxes

Congress ponders 401k annuities: insurers’ lobby hard to capture huge profits. Danger! 

SCAMS/SPINS:

Certified Forensic Loan Auditors caught misleading US: loan modifications: fine, no jail 

Trump like Captain Queeg on Dorian path to AL: ‘I was with you all the way Alabama'

GOP scared to hold primaries: Trump challenge?: No need to vote: Democracy Trumped

Cruz threatens Trump: gun background checks ‘de-moralizes’ base; already no morals.

Anthem caught overcharging workers in 401k plan: $17 million reinstates pension dollars

NY state tax demand for immediate payment is fake: no passport, drivers license revoked

Hacker uses your credit card to open ApplePay account. Credit card bank cancelled card.  

Clayton Wertz caught making up security statements to help friend obtain bank loan

Beware: Scammers use fake news sites to sell fake products: check address line.

Beware: Advisors using ‘Christian’ labels: claim “biblically wise advice” for your money

Democracy Trumped: GOP cancels primaries: why bother voting for dictator Trump.

TX representative to Beto O'Rourke that his AR-15 "is ready for you": TX Death threats

CA to limit you to 1 AR per month: you can still buy 30 mags: some call this progress

Dems vote to keep oil drillers out of Artic land and oceans: Moscow Mitch says “Nyet.”

Courts lean right for the next generation: Money decides democracy fate.

Do any Sackler family go to jail for killing 10-50,000 a year? ‘None admit wrongdoing’!

Jobs

Social Security cost-of-living adjustment (COLA) to be 1.6% for 2020.

Warren will raise Social Security benefits from high income earners tax: Boomer voters!

Who owns your account now?

Cars that lose value fast: Don’t expect much for your trade.

Never use your cell? 1 cent/min if you do. https://tello.com/rates/pay_as_you_go/United%20States

Bargain hunters: If you love a great deal, check these Amazon retailers: shipping is killer.

Miracle:

It takes miracle to return to science: Dictator now dictates the weather: Science self-censorship can kill US. 

One woman saved 97 dogs from Dorian on Bahamas island Kind strangers helped.

When on a plane next to autistic child, use your airsickness bag to reach out and touch.

Can we do this too? https://twitter.com/ABC/status/1171149276812075011/

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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Put your money to work so you don’t have to

DIY Financial Independence: Freedom Workbook

Put your money to work so you don’t have to.

Use your IRS-approved tax shelter—Pay 0% on asset gains. Accumulate $250,000, $500,000 even $1,000,000 tax-FREE. You achieve Financial Independence by having enough money to do what you want. When you don't have to rely on work to survive, you are financially independent. Playing it safe won't achieve it. You don't have to be super wealthy to become free of money worries. Financially independent people have one thing in common: they put their money to work so they don't have to. If you don't put your money to work, you will never be free.         'Compound interest' is the name of the process by which money makes money. You don't need to do a thing besides sending $250 to work every month. You earn money every time you buy things. You own part of the businesses. Compounding is what Warren Buffett counts on for success.

“My wealth has come from a combination of living in America, some lucky genes, and

compound interest.” How much can your money earn for you? It depends on how long it works and where you put it to work. The best strategy is to use your Wealth Reserve to shield your money while it works. You can use a special IRS-approved Tax-FREE account to avoid all tax on investment dividends, earnings and interest. You can also avoid the fees and commissions on this account. Your $250 a month investment may grow to $1,000,000 or more and it is all tax FREE. That $3,000 a year for 33 years ($99,000) compounds to $1 million if you put it to work.

https://www.amazon.com/gp/product/B07W6RPB24

Why do we earn so little in a managed account?

In every period of time for the last 30 years, we earn much less in our advisor-managed account. DALBAR tracks the performance of our accounts versus the market indices and finds less each period. For the last 30 years, we earned 3.79% vs 11.06% for the market. Morningstar blames costs: “In every single time period and data point tested, low-cost funds beat high-cost funds." It is a Wall Street myth that we need an advisor. Now we have research and data that tells us (for free) that we can earn more by paying less. Trading, market timing and expense ratios can reduce our total possible accumulation by 63%. Most clients claim they need an advisor for guidance but they don’t consider inherent conflict of interests. First, advisors can’t give unbiased advice: they sell what for-profit firms pick for profits. Second, advisors are trained as salespeople—they don’t know what the markets will do. They learn to win our trust so they can sell us anything. Third, most advisors do NOT know about the best products for us. The products they sell must have higher costs built in. For instance, most 401k and 403b savers/investors believe their employer does not charge for their retirement plan. Most think the plan was chosen wisely: greatest benefit possible for us. There are no price tags on the retirement stuff we buy so we end up with $104,000 instead of $151,000. Your plan costs are hidden because your employer does not want to pay for them. Ask how much you pay!

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

Are commission-FREE ETFs really free?

Schwab has just added to its platform of no commission index (ETF) funds. Fidelity and Vanguard are in the price war too. But are there no costs involved? its bid/ask spread--the difference in the lowest price a seller is willing to accept and the highest price a buyer is willing to pay as of the last trade--was wide. When the spread is wide, you can end up paying more for an ETF than it is actually worth--and this can easily add up to more than a broker’s $10 trading fee. Unlike open-end mutual funds that are bought and sold at Net Asset Value (NAV), ETFs are traded throughout the day at whatever price clears the market. At times, an ETF’s price may deviate from its NAV. When an ETF’s price is more than its NAV, the ETF is trading at a premium. When an ETF’s price is less than its NAV, the ETF is said to be trading at a discount. If you buy an ETF at a premium, you’ll be paying more than you need to and putting yourself at an immediate disadvantage. Likewise, if you sell an ETF at a significant discount to NAV, you’ll essentially shortchange yourself on some of the gains. Some ETF’s are not traded often so you may have trouble selling them. Some have fees to sell if not held long enough. Some do not perform well so you lose. In real estate trusts, some are earning 8% where others earn 5%. Unless you have insider information, regular funds have better long-term returns.

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

Trump’s ‘National Socialism’

Trump’s tax-credit party is now demanding another tax cut for the rich. Every American who pays tax on their capital gains—dividends and earning from capital—will pay less tax. National Socialism means money from every working person that pays tax on wages will be used to benefit the top 5% of the wealthy who live on their capital. Wealthy folks demand more tax cuts after receiving a huge windfall this year. That’s outrageous! TX Cruz bid for reelection is cemented by goosing the Treasury Secretary to ignore Congress and just declare the tax break on capital by an executive order dictator. Meanwhile, Trump’s new tariffs will slow sales, jobs just to pay for new tax cuts for the rich. Trump still thinks China tariffs are paid by China instead of by Americans via higher prices. Americans who struggle to make enough to help their families survive will have to pay more for most goods—‘made in China’. Trump has adopted Marx’s idea: "From each according to his ability [to be taxed on wages], to each according to his needs" [for a tax break]. The tax-credit class needs to blame the minorities to divert attention and the state propaganda machinery (Fox) does it. Dems don’t even realize what is going on.

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

Another way the wealthy avoid their fair share of TAXES

You could do this tactic if you had the money but you don’t. Wealthy buy or keep art then take a loan against it. They spend the money as tax-FREE income. Living off your Rembrandt for years? The majority of art lending clients are ultra-high-net-worth individual art collectors, according to a report by the European Fine Art Fair, with dealers accounting for just under 10% of borrowers. Most lenders will lend up to 50% of the value of the artwork, so a painting appraised at $10 million will be good for a loan of up to $5 million. Lenders across the industry said default rates are typically very low, almost negligible. Some borrowers are opportunistic—when they see a good business offer, or a chance to buy a great work of art, they want access to capital, and fast. An art lender only needs to value the art and write up a contract, compared with, say, a mortgage lender, who might need extensive credit checks, salary history, and the like. “It’s a way to buy art without having to disrupt your life.” Some just want more capital to buy stuff.

Shelter your income too: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

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

States rejecting the Obamacare program has come with a cost: rural hospitals gone.

GOP plans cuts in Social Security by just refusing to consider funding options.

Trump tariff costs us on electronics, phones, digital, stuff: Apple stock

Juries nixed: Trump to free the criminals HE likes: “I thought he was treated unfairly”

TX law gives greater access/use for guns Sept 1: Tragedy incites more armament.

Trump agency warning visitors to US to ‘generational fight’ ‘public is asset to prevent’

El Paso shooter’s mom told police weeks before about AR danger: Police deny contact.

SCAMS/SPINS:

McConnell role in aiding Putin’s mob to buy factories in his state show bias.

Supreme judge can never be prosecuted for his crimes: justice? ‘I could kill someone…’

Credit card debtors buy more stuff because they owe anyway: we can’t quit addiction?

Travel insurance: a joke? List of exclusions is long: preexisting conditions

Best Hospitals USNEWS report: your state caregivers: Clean your colon scope before?

Health care costs high for only 3 illnesses, study shows. Pharma makes a killing.

Congress would rather have gun lobby MONEY than clean hands: AR mags still legal!

To win 2020, GOP removed 17 million voters from state registration since 2016

GOP states change voter laws to keep Dem voter turnout low: GOP Gorsuch/Kava group

Calls from Social Security: Know your caller—SSA does not call to ask for your number

Tanmaya Kabra caught promising 32% return on ‘cool deals’ complex Ponzi

Sales people must follow ‘best for buyer’ fiduciary standard in NY after Trump killed it.

Robert Shapiro caught real estate Ponzi: sold as ‘safe’ plots at FL hotels/restaurants: jail.

Hector May NY caught stealing $11.4 million Ponzi (buy bonds) gets 13 years

Commonwealth taking money from Preferred Portfolio Services clients: no disclosure!

Dignity Health CA caught using religion to underfund pensions

TrumpCare policies payout only 40% premiums on our medcare: 60% to admin, profits.

Insurers DOUBLE profits on Medicare Advantage plans

Jobs:

WV seals record of disability benefit case: protect your med, personal, work data

Bit coin payment through BitPay was now available to AT&T mobile customers.

Propaganda Ministry: pay armed guards at every school and mall: concentration camps?

Individual Coverage HRA: employer funds account to help buy health care vs Group care

Who owns your account now?

Your savings/investment plan made as plain as a fried egg recipe

USA Today Gannet to Japan’s SoftBank 

Taxes on my life insurance policy?—sell, surrender, drop—all have consequences

NH allows brokers to hold up withdrawal if client cannot manage accounts.

Your advisor no longer answers your calls but telephone tree does: they ‘sold and stayed’

You may be paying for your retired advisor’s nest egg for the next 20 years.

Miracle:

Save this spaceship: July hottest month ever—since the dinosaurs! Talk is cheap.

Only 2 protestant leaders are outraged: we accept Trump racism: silence is acquiescence.

Dayton police: ‘Fundamentally problematic' for civilian to have that level of weaponry

What is it going to take to end MASS murder? Reagan man Brady shot; got GOP action.

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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