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
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 1st 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
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
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
973.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available at http://dankeppel.blogspot.com/
