How much does it really cost to invest?

How much does it really cost to invest?

Warren Buffett suggests we invest in two low-cost funds at Vanguard for life. He thinks John Bogle, Vanguard founder, was right—low-cost investing beats Wall Street advisors over the long term. Trading securities does not pay unless you have insider information (which is illegal, except for Congress). Bogle calculated that, over our investing lifetime, that little 2% broker/advisor fee will erode 63 percent of what you would have had. As Bogle puts it, “the tyranny of compounding costs” is overwhelming. Do the facts back up these claims? Buffett bet $1 million on the Vanguard 500 Index and beat 5 hedge fund strategies from 2008-2017. DALBAR tracks investments over time. They found that a simple S&P 500 index fund earned 11% a year over time while the average equity investor using a manager earned just 3.79%. “Cost matters” as Bogle used to say.

Pay less; earn more: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

Trump tax returns may not reveal his hidden tax avoidance schemes

Since the 70s, Trump has been paying accountants and lawyers to hide his income and net worth for tax and negotiating reasons. With over 500 subsidiaries and entities, his situation may be difficult to understand from tax returns. He has been involved with foreign entities and shady characters for many years. Trump uses the alternate American tax system—the one designed for the wealthy. Tricks and perhaps illegal financial practices have stumped his bankers and auditors. His specialty is real estate which is one of the best methods of avoiding income taxes. When you buy a building with a loan, you can deduct from rents all the expenses and maintenance and ‘depreciation’—the full cost the building can be used for years to provide tax-free cash. For instance, in 1995, Trump paid no tax on his income of $10,846,076 because he had ‘paper losses’ of $915,729,293. That $ BILLION ‘paper loss’ would enable him to avoid taxes for up to 18 years. Each entity can have ‘paper losses’ for years. Plus Trump wrote off his loans for his bankrupt casinos, resorts, and buildings. And Mr Christie, Gov of NJ, even cut his casino taxes from $30 million to $5 million. Even his profitable golf firm in Westchester worth $50 million on some of his statements pays taxes on only $1.4 million tax assessor’s value. Jared has his own little tax avoidance gig going on too. He’s in on Dad’s new tax scam.

We pay Trump’s taxes: https://www.amazon.com/Americas-Socialism-Only-little-people-pay/dp/1535218584

Is it too late to file taxes?

Before spending $200-400 for a paid preparer, try filling in the screens using the IRS partners at irs.gov https://apps.irs.gov/app/freeFile/. The instructions are easy to follow especially if you have last year’s return to compare what forms you need. I have found https://www.freetaxusa.com very easy to negotiate and respond to email questions. This one charges only $15 for your state return: Fed is free. It is still $15 when as complicated like mine. Basically, you must pay tax on all your taxable income—wages, pensions, etc. This year you have less to deduct because the standard deduction was doubled. Beware some software glitches. However, you lost the personal exemption of $4,050 for yourself, your spouse and each of your dependents. For each child under age 17 you receive $2,000. In high property tax states—NY, NJ, CA, CT, etc you will probably owe this year. The deduction cap is now $10,000 and the average homeowners in these states pay about $20,000 property tax. The law was written by a Rep from a Red state.

Try software at irs.gov https://apps.irs.gov/app/freeFile/ before you go to paid preparers. Penalty for underpayment modified this year. Get extension: https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return. Check the status of your fed refund: https://www.irs.gov/refunds

Use your tax refund to create a $1 million retirement fund

Michele had trouble saving. She seemed to always be waiting for her next paycheck. She never had enough to save for a rainy day like her Mom did. She used to make about $35,000 as a shop manager but with federal, social security, Medicare and state taxes, unemployment, disability, and health insurance, she was not able to put anything away for retirement. Years ago, her local tax preparer suggested she use her tax refund to create a retirement fund. Usually Michele would use her refund to pay bills or buy something special. The tax preparer said that if she agreed to start an IRA with $2,000 of her refund, she would be able to increase her refund--Uncle Sam would help her save. The amount she invested would reduce her income and make her refund larger. Each $2,000 would grow over time if she left it in stock mutual funds in her IRA account. Over time, it can grow large enough that she will have enough for retirement. 

A Plan for those who have NO 401k at work: https://www.amazon.com/Tax-Refund-Millionaires-Let-Uncle-Help/dp/149595644X

Are you driving the best car for under $30,000?

10 Most Comfortable Cars Under $30,000: Volkswagen Passat has one of the roomiest back seats in its class. Kia Optima added a suite of driver assists as standard equipment. Hyundai Sonata offers a wide range of models and powertrains to match your budget. Buick Regal Sportback has liftback body in addition to its upscale feel. Chevy Malibu has exterior style to go along with its comfortable interior. Subaru Legacy Outback offers the rugged good looks in a useful wagon body style and dependable all-wheel drive. Nissan has answered critics of bland styling with an all-new Altima. Toyota Camry’s great resale and dependability make this comfortable 4-door sedan a contender. Solid handling, low ownership costs and high resale value all add up to a winning formula in the Honda Accord. Chevy Impala has plenty of room front and rear and stellar infotainment. Save up to 40% on a 3-year old model: quality and VALUE.  

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

Is Medicare for All right for you?

Medicare is not socialized medicine. Socialized medicine is where the government owns the hospitals, owns the labs, owns the MRI and CT machines, and all the doctors and support staff are on the government payroll. That’s not what Medicare is. In our current political fight, some GOP are using old fears of Russian-style ‘socialism’ to discredit the discussion of finding a more effective system of medical car and payment in America. Medicare pays for the high-cost end-of-life expenses and high-cost chronic conditions. Yet, users pay only $135.50 a month from their SS benefits. For-profit plans cost over $400 a month if you can find one in your state. Medicare is national: You pay $185 per year in 2019 for your Part B deductible. After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services. Some buy an Supplement for these. Your hospital coverage (Part A) is usually free. If you have not paid for Part A during your working life and you buy Part A, you'll pay up to $437 each month. Part C pays for drugs and costs vary depending on your needs. Congress could change the law and negotiate the costs for all of us so our costs are in line with all the other countries in the world. Some pay 50% less than we do for US drugs. The reason we do not have Medicare for All now is simply money. The clerk at my for-profit health insurer decides which procedures and care I receive. The company CEO makes more bonus if the clerk excludes some treatments and procedures. My doctor and I have little to say in it. Lobbyists get $160 Million to tell Congress: “NO MedicareForAll”

Medicare for All is worth a try!

Did you know your mutual funds make money even when the fees are ZERO?

When you invest in a fund, the manager buys your share of the stocks in your fund. For the Vanguard 500 Index Warren Buffett recommends, it owns shares of the top 500 companies. Because most investors are earning 11% a year over time, the stocks in your fund are held a long time. Your fund then loans the stocks out to other institutions that need them temporarily for a rental fee. This fee is what allows most funds to charge 0.04% or less. If your fund has millions of shares, they can make a lot more than your fees. So fees are falling and some are charging ZERO. However, depending on your agreement, you may be giving up your information and perhaps good service. So you may find ‘free’ is not really true. Some firms could start charging you after they get your money. Some could start using your information or selling it to target you for sales of other expensive products. Best Robo-Advisor is low-cost and unbiased advisor.

NO FREE LUNCH: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

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

Make America, “The Don”, Great Again

Senile Psychosis or Parkinson’s delusions? quetiapine and clozapine

Truth isn’t truth, his lawyer says

“The campaign -- for him -- was always a marketing opportunity.”

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

Will voters who need ObamaCare vote for it?

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

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

Trump having a hard time finding the kids he wrenched from families: Cost $1 Billion

Trump told border agents to stop entry; close border: supervisors said ‘no’, follow law!

Violates own oath of office to uphold constitution and laws of US. Dictator orders illegal

SCAMS/SPINS:

Scott Klor caught involved in life insurance scheme not reported to firm. Fine no jail.

Law about Trump’s taxes is ignored by GOP, DOJ, Treasury, IRS. Trump above the law?

Wall funding reduces armed forces readiness: Pentagon shifts from regular needs.

Trump projects his USSR involvement on Dems: “Treason” when disagree on WALL?

Advertising agency Publicis employee sues Fidelity for 401k overcharging/kickbacks.

Financial crisis from corporate leveraged loans: Trump gutted regs learned 2007-8.

Richard Booy IL caught Ponzi $2 million from seniors promised guaranteed returns.

Senior Safe Act: Money advisors can help stop scammers by reporting abnormal acts.

BEWARE: 95% Of Bitcoin Trading Volume Is Fake—‘pump and dump’ is it’s normal

First Command financial may have illegal firing problem from an Air Force vet.

Anthem Health caught overcharging employees 401k records and funds. Fine, no jail.

Hedge fund has large returns but doesn’t pay taxes: how the other half lives

America’s attorney does what Trump tells him: FBI spies on USSR into Trump Towers

Insulin makers’ CEOs double price: Gov does nothing about life-saving drug prices.

Elder joint brace scammers caught stealing $1 Billion from our Medicare fund

TX wants to kill a woman if she has an abortion: Nazis go legal in TX.

Most of us will live longer: Your-Plan-Live-Age-100/dp/1548180793

Famous Black Hole in universe where nothing can escape except radiation around it.

Trump blames Obama for putting kids in cages: he claims he stopped it! INSANITY

Mueller ignores Mob Boss family Russia deals: OK to conspire with enemy & obstruct!

1. “Russia, find Hill’s emails” 2. Don’s Mob made Russian deals 3. Russia intel tricked voters 4. Polling data payoff 5. Special Russia deals 6. Fire FBI 7. Refuse give testimony

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:

Why people don’t vote: Reps get to Wash--subsidize largest corporations Boeing GM etc

Is your child ready to tackle life’s financial obstacles to happiness?

ADM grain trader layoffs in American

Retailers close more stores as online buying shows vitality

Ex-Pope blames society for child abuse: ‘seminaries filled with “homosexual cliques.”’

Who owns your account now?

Ameriprise Financial Auto & Home to American Family

Centurian retirement plans to Marsh McLennan

Blue Prairie Group to Cerity Partners

FiduciaryVest to Captrust

Wells Fargo’s retirement plan services to Principal Financial Group 

First time home buyers: Look before you leap to be successful at BIGGEST buy! 

Foresters Financial to Cetera

Miracle:

Opioid antidote can save addicts from death: tests continue.

United says, if they overbook, they won’t break your nose, drag you off plane anymore!

Woman has bees living in her EYE: Miracle they were alive and so is woman.

7-11 store owner caught teen stealing food: not arrested—Mr Singh fed the hungry.

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Expecting negative returns in 2018?

Are you expecting negative returns?

This year is on track to deliver the lowest share of positive returns adjusted for inflation across 17 major asset classes since 2008, according to Morgan Stanley. Too bad. Our clients have stayed with their balanced portfolios because we can’t predict the future of the markets. This is a snapshot of their returns so far:

Total Return Fund Long-term Return Longevity

YTD 2018*                              2017

10.2%                                      21.7% 500 Index                     11.1%* since 1976

 7.9                                           3.2% Energy                            10.7% since 1984

10.4                                          17.9% Extended Market          10.9% since 1987

13.2                                          19.6% Health                           16.5% since 1984

 3.5                                           42.9% International Growth     10.8% since 1981

14.3                                          29.5% PRIMECAP                 13.9% since 1984

10.5                                          16.1% Small Cap Index           10.7% since 1960

 0.1                                           10.2% Wellesley Income          9.9% since 1970

 3.1                                           19.1% Windsor                       11.5% since 1958

 6.3                                           16.8% Windsor II                    10.8% since 1985

 8.0%                                       19.7%                         Average 11.7%

*9/26/18                                   Average Annual Returns as of 12/31/17.

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

Is ‘interactive’ life insurance right for you?

Your annual physical is no longer enough for one insurer. Now they want your ‘lifestyle’ data on a continuous basis or you can’t be insured. Hancock says. The Hook: policy holders are incentivized to adopt healthy habits and pay fewer premiums. On the other hand, insurers may eventually use data to select the most profitable customers, while hiking rates for those who do not participate. And can we trust them to provide the discounts or even pay benefits? MetLife and other insurers stopped looking for beneficiaries so they could keep the death benefits. If the beneficiary does not keep in touch with the insurer, they lose. Life insurance is NOT an investment anymore.

Make sure you need insurance first: https://www.amazon.com/Life-Insurance-Need-Save-right/dp/1480002178

Are you overpaying for car insurance?

This graphic shows the average costs per state for min and max coverage. Are you where you want to be? You may be paying for benefits you don’t need, like life insurance, towing, or full replacement. You may not have claimed all the discounts you deserve. Unfortunately, insurers don’t ask about the items you can qualify for since it reduces their commission. You have to ask to have life and health care insurance removed. If you have this coverage already, you’re wasting your money with a car insurer. Some add accidental death and disability insurance to your premium. Do you know when NOT to make a claim? If you don’t shop around, you never have the benefit of new client discount. Securing your discount adds up year after year.

https://www.amazon.com/Industry-Insiders-Guides-Buying-Insurance/dp/1466435712

Which Medigap plan is right for you?

Look closely at your supplement plan. Plan F will cease in 2019. The existing Plan G may be a better deal for you. Consult with your doctor and your records to see what you really need. Plan G provides the most benefits but at higher prices than others. For instance, you get limited foreign travel medical assistance included. Frequent co-pays get expensive. Can you switch to generic drugs? One agent says: “You save about $350 a year on premiums, so it makes no sense to buy F to cover the $183 deductible.”

Do your research: https://www.medicare.gov/find-a-plan/questions/medigap-home.aspx

 Is your Medicare Advantage plan denying service you’re due?

Auditors have found “widespread and persistent problems related to denials of care and payment in Medicare Advantage,” the report said. The fixed per-patient rates the government pays may give plans “an incentive to deny preauthorization of services for beneficiaries, and payments to providers, in order to increase profits,” the report said. Enrollment doubled over the past decade. One-third of Medicare patients are now covered by the private plans. In 2016, the plans denied 4% of requests to approve treatment before it was provided, known as prior authorization, and 8% of requests for payment after treatment. Only 1% of patients disputed the insurers’ denials. Most disputes changed denials to approve. Most plans provide additional coverage, such as vision, dental care, and prescription drugs.

Always dispute a denial: some plans reverse 98% of the time.

Who is this Mueller guy anyway?

He never speaks but his pen speaks for him. 35 so far. ‘Witch hunt’ has 191 criminal charges by this duly-authorized former FBI chief of the investigation. What happened to get Trump elected will require a simplified 2 hour movie to explain all that went down with this ‘Russia’r Trump’ thing. This investigation may be more important than the Nixon termination event. As happened then, our democratic principles are at stake. After all the voter suppression, can the people of America vote to put us back on track? Are our votes counted fairly? Can our Reps govern? Can the FBI do its job? Does donor money control every election? Do we outlaw all the money? How much power should the president have?

Will the middle class survive? https://inequality.org/facts/income-inequality/

Is a ‘Retirement’ bond right for you?

The retirement bond would not pay back the principal; instead, after 20 years, it would become more like a deferred annuity paying a stable, secure income—but investors would get more bang for their buck. Martellini says the retirement bonds could be offered as transparent, low-cost products that are easier to get out of than a typical income annuity. Someone five years from retirement today, a 61-year-old, would be buying 2023 retirement bonds. The bonds would start paying cash in 2023, and continue paying for 20 years. If launched, the new retirement bonds could be offered in lieu of bonds or annuities to investors. “Annuities are opaque, costly and mostly irreversible unless you’re willing to pay high surrender charges,” says Martellini. Most retirement investors want security and a guaranteed stream of income, but they also want the flexibility to adjust their investments and their potential income stream over time. But most bonds lose value over time so buying a bond locks in low income payments.

Buy Income and Growth Combo: https://www.amazon.com/Combo-Annuity-Guaranteed-Income-Growth/dp/1493572237

How much emergency cash is enough?

Savings, CD, MM, credit cards or bond fund. Which is best for you? Some propose an employer plan with paycheck deduction like a 401k but with no penalties. Actually some can do this now with a Roth 401k. You get tax-free growth for life and you can take your contributions out anytime without penalty. A short-term corporate bond fund like VFSTX will rise with rates. CDs are tricky since rates are rising so keep away. Or perhaps your best alternative is a HELOC. If you have equity in your home, you can obtain a line of credit for rainy day. Home worth 300,000 and you owe 150,000 you may obtain 50,000. With no closing costs and interest charged (current 5%) only when you use the line, this a perfect ‘emergency’ fund. You can leave your retirement money alone to grow. As long as you don’t misuse this money, you won’t lose your home—HELOC is a 2^nd mortgage.

Don’t fall for your broker/advisor illiquid products: https://www.amazon.com/Avoid-Scams-Brokers-Advisors-Sender/dp/1726328023

Do we go backward or forward with wages?

Most Americans say they are NOT benefiting from the $4,000 Trump promised. Most feel that Trump helped his class—giving us higher tax bills in the future to pay for all the cuts in revenue in the next 10 years. Corporations got to keep all their subsidies, grants and special financial deals. Average homeowners in CA, NY and NJ are not able to deduct their property tax so anyone with a single family home will pay more. Those who own the mansions have put the property in a legal entity to keep the deductions like The Don’s home in Trump Tower—all deductible. Because half of workers are not skilled they earn what they earned in the 1970s-80s adjusted for inflation. Plus health care costs rise and Obama subsidies were cut so many will go bankrupt with illness. We have no infrastructure works program that could employ those workers. Is going backward right for America?

Last time unskilled workers were left stranded, America did not abandon them. They got work building many village halls, dams, bridges, etc. We had hope because we were moving forward with a little help from the feds. 8.5 million of our fellow Americans had work and it paid off. Now most of the subsidy money goes to the wealthy class.

Move forward: https://www.amazon.com/Americas-Socialism-for-Rich-not-little-people/dp/1535218584

Another way the wealthy avoid their fair share

Trump’s new tax law changed the AMT—alternative minimum tax—so that many rich people will not have to pay it. Treasury gave us this tax after it was determined that 155 rich people paid no tax in 1966. Americans were outraged and Congress added a tax. AMT was born in 1979. Millions of rich people had to start paying their fair share under Reagan. Now Trump and his tax-credit class have got CPAs maximizing retirement contributions, funding a health savings account and making investment account adjustments where it makes sense to take the losses for use against gains. “After that, we go for increasing charitable contributions,” an observer added. You don’t need a CPA.

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

Homeowners in Dem states plan property tax limit workaround

New Jersey has set the rules for how residents can make an end run around the $10,000 federal limit on state and local tax deductions. Unfair treatment compared with other states is at stake. The average home in NJ is assessed $18,000 tax. Each jurisdiction can establish non-profits to collect taxes for education, fire, police, libraries, trash pick-up, road repair and other local services making them a charitable deduction. “If and when the IRS finalizes its rules, we’ll see them in court,” Attorney General Gurbir Grewal said.

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

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!

Is Medicare for All the answer? Obama Trump could NOT stop the rise in health care.

House on vacation again: no work no pay! Save $ millions—half are already millionaires.

SCAMS/SPINS:

Trump tax cuts went to the wealthy—some middle class actually pay more: voters wise.

Drug prices manipulated due to shortage and shortage created by drug firms: addiction.

Is your ride popular with thieves?

Social Security sends email; NOT call for information—never give callers your info.

Non-bank lenders playing the same role as in 2007: could melt-down happen again?

Trump raising the price of heating oil and gas with tariffs and Iran boycott.

Neil Maxwell CO caught investing funds without telling clients he did it.

Voya caught giving criminals passwords to 5,600 client data. Fined $1 million. Fees rise.

Philip Roesel caught using fake caller ID number to trick us 21 million times. No Jail.

Half of cellphone calls scams: fake directed at most vulnerable of us. Feds do nothing.

Suicide by cop: Everyday people with guns kill co-workers and get cops to kill them.

This is why Wyatt Earp in Tombstone took people’s guns when they came to town.

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

Why is Trump surprised when the world laughs at his ridiculous narcissistic statements?

Trump: I fear #METOO Movement. “It’s happened to me many times.” “I grab p__y.”

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

Jobs:

$73,000 driving for Walmart: Congress changing law to age 18?

Are you sure you want to keep out all immigrants? She is 7 and the next generation.

Who owns your account now?

Identity theft protection is free: Freeze your account so thieves can’t buy in your name.

What to watch to avoid cyberattackhack/theft: think like hacker—what can go wrong.

Genetic test: insurers can use it for genetic discrimination : results vary by company.

Your business self-insured for health care? Cut out the middle person.

OppenheimerFunds to Invesco Ltd.

Royal Bank of Scotland is changing its name to ‘Bo’ ?????

Miracle:

A tiny clip in your heart can save you but it costs $30,000: doctors/hospital extra?

Good Samaritan helps stranded car but then evil comes.

Two heads are NOT always better than one. Anything can happen and does.

IAN

41 Watchung Plaza, B242

Montclair ,  NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alert