Which financial advisor is best for you?

 

Which financial advisor is best for you?

Settling on an advisor or actually putting your hard-earned money in their hands is a difficult decision. A personal analogy might help you decide. My personal physician diagnosed my condition and prescribed a drug called Januvia. I went to the drugstore and found out that even with my expensive insurance, the drug would cost over $500 for 30 pills. I came home and searched the internet for an alternative that was recommended for the same condition. I confirmed with my doctor that I can try glipizide as a substitute. It worked. Glip costs only $3.19 not $523.18. Turns out many doctors get paid to make scripts for certain drugs and not the generics or low-cost alternatives. Financial advisors get paid extra for using certain ways to invest your money. As a former sales manager at financial firms, I made contracts based on these extras. We did not tell clients about Vanguard’s low-cost alternatives. If clients had done research they would have found that paying for brokerage extras over time would have robbed them of over 50% of their potential accumulations. The analogy fits: avoid paying for advisor’s ‘select portfolios’.

Pay less: keep more: https://www.amazon.com/Avoid-Scams-Brokers-Advisors-Sender/dp/1726328023

 

Lower your tax: We can continue to contribute to deductible IRAs

Previously, we were not allowed to continue making contributions to Traditional IRAs once we reached age 70½. But the SECURE Act removes this age limit, effective this year. This could be beneficial for the growing number of people who are working past age 70 since they can now continue making IRA contributions indefinitely, thus enhancing their long-term retirement financial security. They can also make non-deductible contributions to their Roth IRA which is never taxes later. On the other hand, distributions from traditional IRAs must begin when we reach 72 up from age 70 1/2. However, the new rule does not apply to those already older than 70 ½ or turned 70 ½ in 2019 (born on or before June 30, 1949). Those individuals must continue or begin taking RMDs under the old rule. The SECURE Act effectively eliminated stretch IRAs as an estate planning tool. Effective for deaths occurring after December 31, 2019, funds from inherited IRAs must now be fully withdrawn by beneficiaries within 10 years of the account owner’s death. Exceptions for spouse and disabled. See a professional. Make sure your preparer is not a scammer: https://www.irs.gov/tax-professionals/choosing-a-tax-professional. Use your refund to build a tax-FREE retirement fund.

https://www.amazon.com/Pay-No-Taxes-Retirement-legally/dp/1507527977

 

Playing the hot stocks

One reader recently asked me about buying a stock that was being pushed by an online blog. He was referring to an advert to invest $1,000 in a company associated with the 5G telecom rollout. Citing the previous run-ups by Amazon, Apple et al, this stock picker promised the secret with a subscription to their periodical. First, this sounds like a pump and dump scheme. Second, the subscription may cost more than it is worth since there are no ‘sure things.’ Third, just because 5G is in the news does not mean that this one stock will rise in the future. Or maybe I should say, rise in the foreseeable future. Most large company stocks rise with time. This secret stock was probably not an ATT, Verizon or TMobile so we just don’t know. What is the answer: If you can afford to wager a $1,000, there is no reason not to bet this way. However, I think it is safe to say that you should not watch this ‘bet’ immediately like you would at the casino. After all, loaning your money to a company in hopes it will grow is not happening overnight. If you come back in a month or two and it has risen to YOUR price target, you should sell it. Gambling is fun as we see with those who made a fortune on GameStop. But remember, there are those who lost a fortune too.

Invest for growth long-term: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

 

Is using home equity for your emergency fund right for you?
Several readers have told us that they were prepared for the pandemic money shortfall by having a HELOC. Home Equity Line Of Credit is a low-interest alternative to running up a 27.49% credit card balance. The problem with a HELOC is that if the balance is not paid back, a lien may be placed against their home. On the other hand, HELOC loan amounts are never large amounts. Their bank will limit the loan to value percentage including the 1^st mortgage. Usually this is 80% so they may be able to afford $100,000 on a $700,000 home. Some loans have no closing costs with rates as low as 3.24%, depending on their credit score. Some lenders cut rates for existing customers who put their payments on automatic debit. Readers appreciate the fact that their emergency fund costs nothing and they do not have to maintain a savings balance earning less than 1%.

Prepare: https://www.amazon.com/Handling-Financial-Emergencies/dp/1537636707

 

 

Have tax forms; will file … for FREE

W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. If you have all your forms, file for FREE online. Usually filing your state return costs as little as $15 unless you buy the Pro helpline. Avoid $300-400 paid preparer fees—new IRS forms mean higher fees. Unemployment insurance is TAXABLE on the Federal income tax return; not on some state returns. Some states do not tax your SS and pension benefits. Retirees did not have to take their RMDs in 2020 so taxes may be less: it was a good time to convert IRA to Roth IRA for tax-FREE future. Unless you were self-employed, you can’t deduct home office expenses of working from home. Some states continue the health insurance mandate and penalty unless you have an exemption. Since the IRA contribution deduction has no age limit now, you may reduce your income/taxes by making a contribution of up to $7,000. The standard deduction went up to $12,400 single; $24,800 joint. Jan 15 last day to make 2020 estimated payments. You have to report your April/May and December/January stimulus payments even though they are not taxable. Some of us receive a bank credit; some a debit card; some a check. Even if you don’t have to file, you should file so scammers can’t use your SS number to mess up your IRS file. Tested E file software ratings. Efile Jan 15; IRS processing Feb 12.

E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

 

 

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

 

 

Like 1776, this period is a test of democracy—We rejected an "American fascist" 

 

FBI quotes Terrorists: ‘shoot Pelosi ‘in the friggin’ brain'

 

‘Incitement to insurrection’ must be ‘high crime’ for impeachment

 

Two GOP parties: Marjorie Taylor Greene vs Adam Kinzinger

 

See how the impeachment trial of dictator 1649 creates democracy

 

 

Our ‘Truth and Reconciliation Commission’? 

 

 

 

How Govt wastes our money:

Vaccines sent to drug stores to stop death toll from reaching 500,000

GOP Senators against Biden’s cabinet pick illustrates Trump party leaders

2 protesting groups in FL: “But only the Black Lives Matter protesters were cited.” 

 

Catholic Church takes $3Billion PPP virus money: small businesses denied

Congress imprisoned behind fence until domestic terrorists/GOP helpers behind bars

 

SCAMS/SPINS:

Anti-vaccers are misleading us; easy way to fake messages

Vaccine scam: list of known and alleged coronavirus scams: See list

GOP passing state laws to limit/stop mail ballots so Dems can’t win in 2022.

 

Trump won some lawsuits simply by delay: legal strategies we can’t use

Instead of paying taxes on $916 million, Trump donates $10,577 ‘earned’ from foreigners

Trump right: GOP members vote illegally: his lawyer voted in GA but lives in SC

 

Domestic terrorist gets special food in jail: on diet of “shamanic belief system”

Domestic terrorist taking vacation after gov overthrow attempt failed: need better plan

Americans load up on guns maskless: against pandemic or civil war? Using new $1400?

 

GOP is a ‘very big tent’: “Everyone's invited”: terrorists, white extremists, Nazis, racists

“Loony lies and conspiracy theories are cancer for the Republican Party” but cancer OK.

 

Rep Greene recants: blames others for past lies; claims false QAnon epiphany: raises money

Trump will not defend himself or testify at trial: denies facts; denies Constitution

 

David Gentile GPB caught stealing $1.8 billion Ponzi-like fraud promised steady 8%

LuLaRoe caught taking millions in MLM pyramid scheme; fine $4.75 million; no jail

Product recalls for January: unsafe product to send back

Baby food made with arsenic, mercury other toxic metals: makers claim follow law!

 

Ford stops making F-150: workers laid off; no computer chips for ‘driver assist’ etc

 Run away Kyle Rittenhouse accused of killing two demonstrators; terrorists put up bail

 

IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.

IRS: Free special ID protection PIN goes on your return so scammers can’t take refund

IRS: Previous tax returns available online: https://www.irs.gov/individuals/get-transcript

 

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

Check Social Security: https://blog.ssa.gov/

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

 

Jobs

Wind, nursing and solar lead “fastest-growing occupations” before pandemic: BLS

LA restaurants open for outdoor pleasures: no gathering watching TV together

How has the PPP program helped small businesses keep going?

 

Who owns your account now?

Your job gets credit for your virus paid leave

Fertilized egg loses lawsuit over who will be mom.

 

Miracles:

TWO separate Americas: millions go hungry while wealthy buy more mansions

Contract virus AFTER 2 vaccine shots: no symptoms but can spread to others

55.9 million doses distributed, only 6.7 million Americans have been fully vaccinated.

No one hurt: California is falling into the ocean as predicted years ago

 

Changes in our word usage may foretell later Alzheimer’s problems: early diagnosis?

MAGA: Vegetable seeds in high demand: Make America Growers Again: the new tissues

 

We can apply for Medicare online: https://blog.ssa.gov/apply-for-medicare-online

We can apply for Social Security online: https://www.ssa.gov/benefits/retirement/

We can apply for health care online: https://www.healthcare.gov/

 

 

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

Last chance: extra $1000 refund or NO tax due

Up your refund by $1,000 before April 17

3 weeks to tax due. If you find you owe tax instead of hitting the refund button this year, you may still be able to claim your refund. You can reduce your 2017 income and receive a tax credit. Credits reduce your taxes dollar for dollar. In effect, IRS code can help you reduce taxes like The Don AND save for retirement at the same time. On line 32, Form 1040 or line 17, Form 1040a, you can enter up to $5,500 ($6,500 over age 50) as IRA contribution to reduce your income. If you meet the qualification, a credit will show up on Line 51, Form 1040 or Line 34, 1040a. You subtract this credit from your tax. EG: Income $66,000: tax refund is $3,335, without IRA contribution. With the contribution, the refund is $4,392 or $5,553 if you both make the contribution. Credit against tax is $400. IRS checks your IRA. Use: irs.gov/app/freeFile/jsp/index.jsp

For help with complicated returns: https://irs.treasury.gov/rpo/rpo.jsf

Take the deal: https://www.amazon.com/Tax-Refund-Millionaires-Let-Uncle-Help/dp/149595644X

The Trump Tax Shelter

Clearly the Trump tax plan helps businesses and the wealthy. Trump even cut the Pease limits. The Pease limitation capped the value of itemized deductions for wealthy taxpayers. There is no reason why you cannot benefit from the tax code too. Using § 408 of the IRS code, you can create an unlimited account and never pay taxes on earnings. It eliminates taxes when taken out for your needs and can pass to your heirs tax FREE. No matter what your income this helps you avoid future taxes to pay off the national debt. All of the 2018 individual tax breaks are repealed in 2026 to pay for the permanent business tax cuts. Avoid paying for their windfall—35-21% tax rate. Corporations provide only 1% of our revenue now. 20 TRILLION dollar deficits mean each taxpayer owes over $160,000. Avoid getting stuck making up their share. 

Use Trump’s Tax Shelter: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

Transfer other people's investment values to you

            “The stock market is a device for transferring money from the impatient to the patient.”     Warren Buffett

Your choice: You and your advisor can try to outsmart the market with millions of traders and likely earn 3.79% a year or let their money flow to you over time and earn 11%. The analysis of real investors showed that the average advisor- investor earned just 3.79% a year while the stock market earned 11.06% over the last 30 years. DALBAR’s

You can earn 11% by NOT letting advisors touch your money. 95% of active traders do NOT beat the market over time. The leading cause of bad returns is costs. Morningstar the rating firm found: “In every single time period and data point tested, low-cost funds beat high-cost funds.” Warren Buffett, one of the greatest investors of all time, has given us his formula. We must leave our assets alone. Riches come to those who do nothing but wait. All the things that our Wall Street advisor tells us to do are wrong. Buffett says growth comes from compound interest not trading, timing, or hedging.

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

IRS free filing sites avoid $300+ cost of filing taxes

Commercial tax prep sites offer expensive loans as advances on your refund but you can keep your whole refund using the IRS free filing partners. Refunds can be in your account within 2-3 weeks. Remember: IRS does NOT call you. The average refund is over $3,000. Check if you have a refund for a previous year—there is over $1 billion from 2014 alone. https://www.efile.com/unclaimed-irs-tax-refund-checks-and-bank-deposits/. Need previous year return (transcript): https://www.irs.gov/individuals/get-transcript. Check your refund: https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp.

You can create a tax-free retirement fund of $500,000 with that amount each year. If you need free tax preparer service for your 1040, use AARP Tax Aides near you. Bring last year’s return and ID: https://www.aarp.org/money/taxes/aarp_taxaide/. If you have a simple return: FreeTaxUSA or FreeFile: https://apps.irs.gov/app/freeFile/jsp/index.jsp.

Use your refund to fund your tax-FREE IRS approved account: https://www.amazon.com/Tax-FREE-Retirement-code-lifetime-income/dp/1475206976

Best gift for your graduate: The Gift of a Lifetime.

Your monthly gift could provide your grandchild with real ‘social security:’ their own tax-FREE money. You take advantage of the miracle of compounding. Your gift becomes a $2,000,000 tax-FREE Wealth Reserve. You could reduce your taxable estate by $500,000 for each grandchild. Your grandchild will NEVER have to pay taxes on the money either. Social Security will exhaust its funds in about 2034. Every year you delay costs your favorite kid $100,000 later. 

Start today: https://www.amazon.com/Give-your-Grandchild-$2000000-Lifetime/dp/1456433105

Is your home equity loan deductible?

Trump’s new law for 2018 changed the rules for HELOCs. Loans for personal expenses, such as paying off student loans and credit cards are excluded. The interest on the loan is not deductible except to buy, build or substantially improve the taxpayer’s home that secures the loan. After the wealthy and corporations get their tax breaks through 2025, the interest deduction comes back. Our alternatives are to pay our HELOC down or pay it off by refinancing the primary mortgage. This is also helpful overall since mortgage rates are going up and we can lock in a lower 15 year loan now. We don’t know if the IRS is going to question every HELOC document they receive so be prepared to pay up if they send a letter. To offset the increase in tax, grab discounts on your homeowners by increasing your deductible and removing any extras like jewelry rider.

Save by cutting double coverage:  https://www.amazon.com/Homeowners-Insurance-Beware-Coverage-Policy/dp/1480100870

Is using ‘game theory’ in buying large items right for you?

In the movie “A Beautiful Mind” John Nash brought key ideas about negotiating to the table for business and the military. You don’t need to be a math major to get the core idea: know the strength and weakness of each ‘player.’ This is especially useful for you when you buy a car or house—new or used. Why? You are an amateur bargaining with a professional sales organization. They know the real price and the real needs of the sales agent and dealer. You can make a better bargain by having more information. For instance, your leverage is 1) know your ‘walk-away’ terms; 2) know the availability of your choice; 3) know the price other buyers have paid for that specific unit; 4) know what day the seller’s production month ends; 5) know the length of time this unit has been on the lot; 6) know the standard tricks of the sales trade; 7) know what the seller can part with easily or at low cost (eg: warranty); 8) know what your financing will cost in advance; 9) other specifics like seller reputation, regional market demand, etc.

Get all your insurance discounts too: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634 and https://www.amazon.com/Homeowners-Insurance-Beware-Coverage-Policy/dp/1480100870

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

Make America, “The Don” Great Again

‘I’m the only one that matters’ Mob Boss, Nov 3, 2017

Trump to refuse to answer special prosecutor’s questions: Above the law?

The Path to Dictatorship

“I have absolute right to do what I want with the Justice Department”

China has ‘leader for life’: “maybe we’ll have to give that a shot someday.”

Putin’s influence: Manafort, Flynn, Gates, Page, Stone, Papadopoulos, Sater, Zwaan  jailed, Prince, Jr, Jared, Sessions, etc 

Putin controls US power utilities and 21 state voting files, etc

“The election is going to be rigged—I’m going to be honest” 

Trump TV personality Dobbs will advise on each WH decision

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

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

Trump firing 20 year FBI veteran McCabe is going to cost us in court case.

Trump cuts IRS audit and collections of self & his friends -- $ millions revenue lost

Trump to end cap on vehicle emissions—increasing global warming to flood FL coast

Trump effort to kill ObamaCare failed: 11.8 million people got Affordable Care in 2018

Trump EPA head hires two lobbyist friends. 2 friends on staff get $60K bonus.

Tillerson’s reorg of State paid $300/hour to consultant for project not done—no refund. 

Trump EPA fires security chief so he can fly 1^st and use siren/lights to go to dinner

Nixon turning in his grave as his EPA turning back clock and ‘in bed’ with lobbyists.

Trump Budget head gives fav staff raises to $260K—more than Congress member.

Ford trucks tranny broken: moves in park

SCAMS:

Trumpism: Destroyer of democracy  Use of military illegal: Posse Comitatus Act.

DNA by mail show 40% false readings for cancer

TX white kid kills 4 gets 2 years; TX black woman votes illegally gets 5 years. Wow

Christie at ABC tells Trump to delay telling lies to Mueller Even prez not above law.

Trump kids offer bribes to Planned Parenthood to stop honoring women’s rights.

Securities and Exchange Commission: impersonators ask for info, make fake trades, etc.

Honorable veteran hounded by ICE deported after Mattis Defense gave assurance.

Jobs:

Fox analyst quits after told to not connect Trump to Russia: only Trumpism allowed.

Trump attacks Amazon and jobs at post office and warehouses: jealous of Bezo’s fortune.

Who owns your account now?

Citi gives mobile budgeting tool to everyone https://www.bankrate.com/banking/citibank-opens-mobile-budgeting-tools-to-all-customers/

Miracle:

If only Trump were everything he thinks he is: Must be nice to live in his world.

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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