Raise your net pay

You can raise your net pay

Yes, it is possible to counteract the hike in payroll taxes. If you normally receive a tax refund each year, you have been paying for a $3.2 billion refund to GE in 2010. You can pay only what you owe each paycheck by raising your exemptions by one or two points. Use form W4: http://www.irs.gov/pub/irs-pdf/fw4.pdf. You can recalculate your exemptions with p501:

http://www.irs.gov/pub/irs-pdf/p501.pdf

Are you using these tax breaks? Use them before the GOP takes them away

There are 35,000 wealthy families who did NOT pay any income taxes. Isn't it your turn?

Employer contributions toward workers' medical insurance premiums and medical care are not taxed: $181 billion.

Retirement plan contributions and earnings are not taxed: $165 billion.

Mortgage interest deduction: $101 billion.

Lower tax rates on long-term capital gains and qualified dividends: $84 billion.

Deduction for state and local taxes: $69 billion.

Deduction for charitable contributions: $46 billion.

Social Security and veterans' benefits are not taxed for lower-income filers: $45 billion.

Interest on tax-exempt state and local government bonds is not taxed: $26 billion.

When someone dies, the capital gains on their investments are not taxed: $24 billion.

Income from some life insurance products is not taxed: $23 billion.

The largest of all tax breaks: owning a business. For instance, GE paid no income taxes in 2010 and actually got a tax benefit of $3.2 BILLION. 

Put the code to use for yourself: http://www.amazon.com/Only-little-people-pay-taxes/dp/1478222441/

Can you qualify for any of these tax credits?

Most of what we had in 2011 remains. Only high incomes had a change and most pay the AMT anyway. eFile starting January 30 using IRS approved sites. Take your credits:

http://www.marketwatch.com/story/cracking-the-2013-tax-code-2013-01-03

Did you get a break on your insurance premiums?

Thirty-seven percent of Americans spent more on insurance over the past year while only 7% spent less, according to Bankrate.com. The only way to reduce your costs is to shop around. Members obtain 3 quotes on policies every 2-3 years because insurers don’t voluntarily cut your rates—We have to ask:http://www.amazon.com/Drop-Your-Insurance-Only-What/dp/1448623391/

Do you work from your home? Deduct $1,500 with no form!

The Internal Revenue Service decided that people who work from home or run a small business from home and have a “qualifying home office” can deduct up to $1,500 a year. That's based on an allowance of $5 per square foot of home office space on up to 300 square feet. This option — easier than filling out the current 43-line Form 8829 that requires burdensome estimates of allocated expenses, depreciation and carryovers of deductions not taken in previous years — will be available beginning in the 2013 tax year. About 3.4 million taxpayers claimed the home office deduction in 2010.

Regulators warn investors chasing yield and using leverage

FINRA has sent a letter to brokers warning them that customers can be hurt by these activities in the markets. A study of what happens to winning stocks after they climb shows that the winners lose money and the losers become winners. Buying winners is a loser’s game. Use a better way: http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137

Safe public-employment jobs now at risk

Sixty-one key cities across America have emerged from the Great Recession with a gap of more than $217 billion between what they had promised their workers in pensions and retiree health care and what they had saved to pay that bill. Don’t rely on the government completely. Make your own tax-FREE Pension in a Box: http://www.amazon.com/Your-Pension-Box-tax-FREE-employer/dp/1481945157/

Flood insurance rates will rise on coast—no more free rides for water properties!

Many Coast residents will be paying higher flood insurance premiums soon. The increases, the result of the Biggert-Waters Flood Insurance Reform Act of 2012, will be based on individual circumstances, By August, subsidized flood insurance policies around the nation will be eliminated and rates based on risk will be implemented. FEMA plans to phase out grandfathering of insurance policies beginning in January 2014.

A policy's rates will then be based on a property's elevation and risk factors according to the flood zone maps for their areas.

Oceans are rising. In 2012, there were at least 3,527 monthly weather records for heat, rain and snow broken by extreme weather events that hit communities throughout the U.S.

Is your insurer trying to buy back your annuity?

The National Underwriter reports cash buyouts offered by variable annuity insurers for guaranteed living benefit or guaranteed death benefit riders may not be a good deal for us, the annuitant. The value for many annuitants exceeds the cash amount offered by the company. That makes sense since the insurers would not be willing to offer the buyouts if they were not in the company's best interest. 

Just say no!

Wealthy do not let advisors tell them what to do

For the wealthiest investors, the more assets they have the less likely they are to cede control over investment decisions to advisors says a new report. Our members act like the wealthiest so they become wealth by NOT giving up 40% of their earnings to advisor fees: http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137

How much do you pay for mutual funds?

"In every single time period and data point tested, low-cost funds beat high-cost funds." Morningstar study. 

SCAMS           “Deficits don’t matter” GOP leader Dick Cheney 2002 

Banking excesses begin again with CDO derivatives and new bubble

Currently, the banks now tap into soaring demand for commercial real estate debt by selling collateralized debt obligations, securities not seen since the last boom. Sales of CDOs linked to everything from hotels to offices and shopping malls are poised to climb to as much as $10 billion this year, about 10 times the level of 2012, according to Royal Bank of Scotland Group Plc.

The rebirth of commercial property CDOs comes as investors wager on a real estate recovery and as the Federal Reserve pushes down borrowing costs, encouraging bond buyers to seek higher-yielding debt. The securities package loans such as those for buildings with high vacancy rates that are considered riskier than those found in traditional commercial-mortgage backed securities, where surging investor demand has driven spreads to the narrowest in more than five years.

“Investors are willing to go further afield in their quest for yield,” Ed Shugrue comments. “With demand rich,Wall Street is scouring the cupboards to find anything with a cash flow that can be securitized.”

MetLife caught overcharging MA drivers

MetLife will pay at least $50,000 in penalties and refund an undetermined amount of money to customers to settle allegations it imposed costly surcharges on Massachusetts drivers who were found not at fault in auto accidents.

Insurers caught overcharging MA motorcyclists

More than $2.8 million in insurance refunds have gone back to Massachusetts motorcycle owners, Attorney General Martha Coakley announced today. Since 2010, 17 insurance companies have settled with the AG's Office resulting in more than $42.8 million in refunds to Massachusetts motorcycle owners.

We are paying for bank mortgage settlement too—rewarding bad behavior!

Banks will take a tax deduction for their bad behavior in causing the recession of 2007-12. We will pay more tax to make up for their deductions for crashing the system and no one stops it.  http://www.nytimes.com/2013/01/13/business/paying-the-price-in-settlements-but-often-deducting-it.html?_r=1&

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Larrysaved $774 on auto insurance
Larry spent one hour with twoalternative insurers to find a better rate than he had for two cars—a 2005 and1998. He found out he was paying for services he did not need, like PIP health
insurance. He has adequate health insurance and is covered by the policy if he
and family are injured in a wreck. He went through the charges with his current
carrier to see if he could drop some other items. His ‘98 car doesn’t need
comprehensive/collision. He raised his deductible too. His new carrier gave him
their alum discount. Find out what you could save using our Guides: http://www.amazon.com/Insiders-Guides-Discount-Financial-Services/

Maybethe health care mandate is not such a bad idea
Healthinsurance premiums for California families rose 153% since 2002, more than five times the29% increase in the rate of inflation, according to a new survey released
Wednesday. The CHCFsurvey found that annual premiums were higher in California than nationally forindividual coverage ($5,970 versus $5,429) and family coverage ($15,724 versus
$15,073). 35 states have some authority to approve or reject health insurance
rate increases, while California has none.
Health care mandate was a GOP idea but it is worth a try. http://www.foxnews.com/politics/2010/03/27/republicans-hatched-idea-obamas-health-insurance-mandate/

Some to see lower health care policypremiums drop
TheFeds have determined that Trustmark Life Insurance Co. proposed unreasonable
rate increases in five states _ Alabama, Arizona, Pennsylvania, Virginia, and Wyoming. Trustmark must withdraw hikes and explain why it wants
more. This is part of the new health care law to reduce costs.

Which discount broker was tops forConsumer Report?
Reader score: 93
Customer service: Top
Website usability: Good
USAA is the winner. Beat other brokers in the business. This is a company run
for our armed service members. They have excellent service and low fees. We
can’t buy their AUTO but we can use all the other financial services with
confidence.
Results from online survey of 7,327 ConsumerReports.org subscribers
reporting on their experiences between Oct. 2010 and Oct. 2011. The reader
score represents overall satisfaction with the firm and is not limited to the
factors listed.

Yourbroker may be forced to change its business model
Ifa strict definition of a fiduciary standard of conduct (NO product pushing)
becomes the fate for broker-dealers owned by U.S. life insurance companies, they could be forced tocompletely revamp their sales and distribution business model. The U.S.
Securities and Exchange Commission in January 2011 recommended the standard to
Congress. It would apply to broker-dealers and investment advisers when they
provide investment advice about securities to individual investors. GE just
sold its broker-dealer so it would be free of this rule. GE can now push its
products without running into trouble with the SEC. Bank America has now outlawed Merrill broker accounts of less than$250,000 so they can collect the annual fees not just commissions.

Howdid your advisor do in 2011?
Our clients’ portfolio did not lose valuelast year. Our clients use a low-cost provider so when the market is down theypay little in fees. Fees are the best indicator of performance according to
fund tracker Morningstar.

2011 Return Fund Long-term Return* Longevity
1.97% 500 Index 10.36% since 1976
-1.74% Energy 12.71% since1984
-3.73% Extended Market 9.96% since1987
11.45% Health 16.30% since1984
-13.68% International Growth 10.50% since1981
-1.84% PRIMECAP 12.79% since 1984
-2.80% Small Cap Index 10.26% since1960
9.63% Wellesley Income 10.16% since 1970
-4.00% Windsor 11.00% since 1958
2.70% Windsor II 10.18% since 1985
__________________________________________
0.00% Average 11.42%

*AverageAnnual Returns as of 12/31/11.
Seeamazon.com/Working-Millionaire-Tax-FREE-Self-insure-Self-fund/

IsAllstate’s satisfaction guarantee right for you?
Underthe program, eligible Allstate customers who aren't happy with service they
receive on a paid auto claim can write a complaint to the company within 180
days of the incident. If a policyholder complains, Allstate will credit the
customer's account an amount that's equivalent to a six-month premium on the
car involved in the claim, said Allstate spokesman Kevin Smith. The company
tested the program in 2011 in Indiana, Ohio, Michigan and Georgia on its standard auto policies, and Allstate saw a limitednumber of requests in those states, Smith said. As of Jan. 2, the company madethe program available in 31 states, with more states planned later in the year.
Allstate’scredit is not cash. This is not a big deal. You can complain anytime. Claims
are handled by local adjuster. Working with them is the best way to obtain
fairness. If you are paying too much, you don’t get a refund for all those
years you overpaid. Safe drivers shop for the best price not guarantee of what
might not happen. Accidents are infrequent. Use our Guides: http://www.amazon.com/Insiders-Guides-Discount-Financial-Services/

Weare more likely to need extra income later in life
U.S.life expectancy climbedto a new high in 2010 as fewer people died from heart disease and cancer, andhomicide was no longer among the 15 leading causes of death. Life expectancy
increased to about 78.7 years. Now is the time to plan to have enough for
longer income needs: amazon.com/Your-Retirement-Spending-Plan-enough

Romneyis the only person who could FIRE his health insurance company
Where has this manbeen living? The rest of us could NOT fire our insurer because we did not liketheir refusal to pay for our cancer treatment or whatever. We would then be out
looking for new coverage with a “pre-existing condition” which insurers loath.
Only Romney could afford to self-insure—pay for treatments out of his $250
million pocket. The rest of us would need a health law that guaranteed
coverage with pre-existing condition. That system was what Romney put in place
in Mass and what Obama has to defend against the GOP Supremes this year. We all
need that guarantee because we could not get health care in the present system.
No insurer would sell us a policy for any price. Just ask the 50 million
without coverage.

SCAMS
Why do we havea deficit and high unemployment? Taxes go to foreign governments!
Cutting taxes tocreate jobs is a political gimmick—it does not work.

Taxesof $385 billion went unpaid in 2006, according to new estimates by the IRS. IRS
says biggest cheats are small business and corporations who hide revenue and
add expense. For instance, Exxon employed 50 lobbyists, and spent $12,450,000
to influence lawmakers, according to the Center for Responsive Politics. What
does that buy you?

Little tax AND oil subsidies of $4B.

Exxon,which last year reported a record $45.2 billion profit, paid the most taxes of
any corporation, but noneof it went to the IRS: 20 wholly owned subsidiaries domiciled in the Bahamas, Bermuda and the Cayman Islands that (legally) shelter the cash flow from operations inthe likes of Angola, Azerbaijan and Abu Dhabi. No wonder that of $15 billion in income taxes lastyear, Exxon paid none of it to Uncle Sam, and has tens of billions in earnings
permanently reinvested overseas.

Manycorporations send profits overseas so they don’t pay tax at all.

GEearned $14.2 billion in profits in 2010, but it paid not a penny in taxes
because the bulk of those profits, some $9 billion, were offshore. In fact, GE
got a $3.2 billion tax benefit. GE laidoff 21,000 American workers and closed 20 factories between 2007 and 2009.More than half of GE's workforce is now
outside the United States.

Why are people upset?
55%of US corps paid no tax some years: http://www.gao.gov/new.items/d08957.pdf
GOPdebate statements and the facts: http://news.yahoo.com/fact-checking-hampshire-debate-023952440--abc-news.html

Who owns your account NOW?
MorganKeegan to Raymond James
GenworthFinancial has agreed to sell its broker-dealer unit to Cetera Financial Group
GE want to be free to push its products. Ifa strict definition of a fiduciary standard of conduct becomes the fate forbroker-dealers owned by U.S. life insurance companies, they could be forced tocompletely revamp their sales and distribution business model. The U.S.
Securities and Exchange Commission in January 2011 recommended the standard to
Congress. It would apply to broker-dealers and investment advisers when they
provide investment advice about securities to individual investors.

Starry starry night
On average, each of the 100 billion or sostars in our galaxy hosts at least 1.6 planets, according to the study,bringing the number of likely alien worlds to more than 160 billion. "This is a major milestone on the road to finding Earth's twin,"Douglas Hudgins, Kepler program scientist at NASA headquarters in Washington,D.C., said in a statement.

Letme know what you think. Editor@TheInsidersGuides.com
IAN
41 Watchung
Plaza, B242
Montclair, NJ 07042
347.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available
at http://dankeppel.blogspot.com/

We are wasting $3,000 a year on financial products

"Most Americans are wasting over $3,000 per year on the financial services they own." According to a new survey, we are wasting $500 on car insurance, $500 on life insurance, and $2,500 on mutual funds/securities. That could mean an extra $250,000 in 20 years! $700,000 in 30 years!
Most people I have talked to believe that you can’t have enough insurance. They don’t understand that you should insure only what you can’t afford to lose. For instance, for car and home insurance, you are better off picking a high deductible to save up to 40% of the cost of a policy. Claims are infrequent—every 11 or 12 years—so you are more than likely to earn interest on the premiums you save year after year.
Insurance is not an item our moms taught us to buy. Who wants to spend their time comparing coverages? Who wants to meet with an insurance agent? This thinking has changed. Insurance and financial services in general have become commodities, like groceries.
With the Internet and new product pricing, you can actually find a huge difference in costs. Depending on your lifestyle profile and the insurer’s marketing plan, you could pay $3600 or $1400 for the same two-vehicle coverage. The difference—$2200—could accumulate to over $150,000 in 20 years. Both insurers are highly rated and responsive.
The differences in price are significant across almost every type of coverage—life, health, long-term care, accident, disability, and excess liability. See the amount of savings by type at TheInsiderSGuides.com.
The options you pick, but don’t need, can significantly change the price. For each type of insurance, you need the guidance of an unbiased advisor—someone who does not profit from your choices. There are 20 to 30 discounts available. To buy wisely, you must know what you need.
Money management is the area with the greatest savings. Many of us pay over $2,000 a year needlessly. When you read the advice of the most well- respected industry practitioners—Warren Buffett and Bill Gross—you learn that “money management is a gigantic rip-off.” There is little correlation between what you pay in commissions, fees, and spreads, and the after tax returns you end up with over time. A low-cost index fund is best for most investors, Buffett said. Thus, most of us are giving away 1%-2% of our pensions and mutual fund balances—3%-4% when inside annuities. That $2,000 drain on each $100,000 every year reduces your eventual spending power by up to $700,000.

Why "saving" keeps us from becoming wealthy

The savings rate has fallen to almost zero and for good reason. It doesn't work.

One successful investor once said, “Nobody ever accumulated wealth just by saving.”

You build wealth by putting some of your money to work. Yes, you have to send your money out to get a job! And not just any job. You want your money to get a good job making good money. Without a good job, your money will make only enough to cover "working expenses" and inflation. The rate of inflation has been running about 3%. $1 in 1970 is worth 19 cents now.

Where can your money find a good job?

Bank: A bank is where most money works. It earns less than the expense of sending it to work and the cost of inflation which eats 3% to 4% a year. If your money earns 3% and it pays up to 0.8% in income tax, your money earns 2.2%. Inflation of 3% takes everything. You are paying others to employ your money, like sending it to prison!

Real estate rentals: There are many systems that claim they will make you rich as Trump. However, the hard part is finding and maintaining property for a profit. Tenants must be managed. Historically, real estate has returned about 5% over time. It is hard work. It is easier to invest in a real estate investment trust (REIT) and let professionals do it for you with less risk.

Bonds: You loan your money to other people and they pay you back. If your money earns 7%, you have to pay up to 2% in income tax so your money earns 5%. However, inflation of 3% takes away money’s buying power, so you are left with 2%. Tax on the real return of 4% is over 50% of the income. You pay half in tax. Not a very good job.

Stocks: You buy part ownership of many companies. If one does poorly one year, others do well. Your money earns dividends of from 2% to 4% and it also gets a bonus if the companies do well. If you keep expenses low (don’t switch from company to company) your money earns 10% on average. It pays income tax of up to 2% on the dividends and less than 0.5% on the bonus (capital gains). Inflation of 3% leaves your money earning 4.5%. However, this job is not a government job so you might make more or less some years. Over time this job pays the best. Not everyone understands that so this job requires patience like running a business—some quit the job when times are tough.

Over time, your money can make you wealthy. Investing 10% of your family income in a stock mutual fund may earn 10% on average for 10, 20 and 30 years. Investing can allow you to accomplish your financial goals. The miracle of compounding turns your $250 a month each into $1.1 million in 30 years. Check it yourself. You paid $180,000 for that $ 1.1 million. http://www.moneychimp.com/calculator/compound_interest_calculator.htm

To avoid income tax now, use your employer’s 401K or pension plan or make your own with an IRA. Put part of that 10% in a regular account for a home down payment, cars, college funds, vacations—whatever your short-term goals are. Your retirement fund will be full by the time you need it in 30 or 40 years.

If you begin early, your Wealth Reserve can grow large enough to use it as your own bank and help you insure yourself. You spend less on credit and loans. Thus more of your income goes to buying assets that grow by themselves. This is real security: http://www.saferchild.org/power.htm

Your Unbiased Advisor does not sell products. As Editor of The Insiders Guides, I have compiled the "tricks of the trade" of the financial services industry. You can use the Guide you need to buy only what you need and skip the extra commissions and fees that insiders never pay. You buy financial services "wholesale" and use the savings to become wealthy. Our members save up to $3,000 a year.

Our FREE Guide, The Insider’s Guide to Making Your Financial Future, provides the basic information our members use to grow wealth.

12 things your agent/broker/banker/money-manager won’t tell you.

1. “We have FEES and COSTS for everything. Most are not necessary.” For instance, your life insurance policy is probably one with a higher premium than necessary. Compare the cost of $200,000 benefit for a 50 year old in good health--$356 versus $481 per year. Also, it does not cost $50 to buy 200 shares of IBM. You can buy them for $0. And why should your broker charge you $160 when your account is inactive? Why are you paying 50 cents to deposit a check? Banks should pay you to deposit checks. Is your 401k money manager really worth 1.54% of your assets each year? And looses money too? Your employer should buy a retirement plan that costs you $0.30% or less with no kickbacks.

2. “We offer products that are best for our firm, not for you. We don’t show you all the fees and commissions and financial kickbacks and perks we earn when we sell you our products. Our products are the “best” available because we sell them. We are the best in the industry because our marketing image says we are.” One pension plan provider charges 2.75% a year for their tax-deferred annuity. It has over 9 years of surrender charges so you can’t transfer your money if you change employers. It charges another $30 a year for ‘recordkeeping.’ Its mutual funds are among the poorest performers. One brokerage firm steered customers into their own funds because they have a higher broker payout. Your agent doesn’t sell SBLI, your broker doesn’t sell Vanguard, your banker does offer really free checking, and your money manager doesn’t price your funds at cost—0.1% or less.

3. “We will discuss your financial needs with half truths.” You are told you need $1,000,000 of life insurance but the policy type that your agent picks is the most expensive in the world. Even if you agree you need $1 million, you pay more for permanent, 30 year guarantee term or “return of premium” term than just term. You want a guaranteed income for the rest of your life but your broker doesn’t mention that the annuity payments loose half their value in 24 years. You want to save for college but your banker doesn’t mention that 529 plans are NOT taxed like the custodial account just opened for your child. You want to save for retirement but your broker put you in ‘hot’ funds.

4. “We don’t tell you about other alternatives. We don’t get paid to tell you there are less expensive alternative ways to solve your problems.” You can buy a FREE checking account from your credit union. The CDs pay more, the checking costs less and the loans are cheaper. You don’t need an ATM on every corner. You can defer taxation on your account earnings by buying and holding stocks or tax-managed funds. You can save on liability insurance by buying only what you need. Wealthy people buy “assets that grow by themselves” so they can self-insure and self-fund their needs. Consumer Reports reviewed 47 policies and concluded that “for most people, long-term-care insurance is too risky and too expensive.”

5. “We don’t explain how you can reach your goals in the least costly way.” Banks offer life insurance to cover your loan because you want to get the loan. They don’t explain that your existing term policy will cover the loan. Also, you can build a much larger retirement nest egg by investing in stock mutual funds costing .07% vs. 1.3%. Compounding magnifies the difference—20% more money over time. When new employees sign up for the retirement plan they are encouraged to pick the ‘safest’ option—treasury bonds. Stocks are more likely to grow in value over the long term.

6. “Our products must be ‘sold not bought. We use half-truths in order to contrive an ‘urgent financial need’ that you can solve only by buying our products.” One firm charged a 91-year-old “client” more than $35,000 for four trades over two years, at approximately $8,800 per trade. The largest annuity seller is accused of misleading policyholders regarding bonus payments promised on annuity products. Life insurance is not the foundation of every financial plan—you are more likely to run out of money than die in the 21st Century.
7. “We believe the hype of our industry: We give good financial advice that you can’t get anywhere else.” There are no classes in our high schools called Financial Health Class. You can’t easily find out the “tricks of the trade” used to sell you the products created to pay high fees to sellers. Young single people don’t need life insurance. They need to invest 10% of their income at an early age to become wealthy. Also if brokerage firms actually followed their own stock selection advice, they would have negative returns. The average return for the top 10 brokerage firms was minus 2.26% from 1997-2001! Most were negative (Investars). 88% of managed mutual funds earn less than the market.

8. “We are experts at figuring out what your “hot buttons” are and using them to get you to buy our products. We exploit the fact that everyone wants to buy the next Google stock or become a millionaire overnight buying and selling real estate or gold. We exploit the fact that seniors fear losing money and want to earn 10% on their money with a completely guaranteed investment.” Finding the next Google is like finding a dime in a football field on the first try. The average equity investor earned a paltry 2.57% annually; compared to inflation of 3.14% and the 12.22% the S & P 500 index earned annually, 1984-2002. You pay for guarantees by earning less and not keeping up with inflation. So even though you don’t lose money, inflation reduces money’s buying power. Putting your money into different investments reduces your chances of losing money and increases your chance of beating inflation.

9. “We don’t sell products from companies that don’t pay a commission—so you never obtain the least-cost product. We only sell products with commissions and fees and kickback incentives and “soft dollar” reimbursements.” When was the last time your broker offered the funds with the highest returns over a 20-year period? Vanguard Primecap--13.6% over 20 years--#1 in large company growth stock funds. Vanguard Health--17.4% over 20 years--#1 in Sector funds. Vanguard Energy--16.4% over 20 years--#2 in Sector funds. Did your agent call to tell you that life insurance rates are dropping so you should apply?

10. “We charge you fees whether we give good service, good rates, good returns, or good benefits.” One money manager charges 1.5% for the same exact fund that charges .07%. With $250,000 invested, you will give up about $700,000 (2,723,138 vs. 2,022,979 over 20 years of compounding at market rates). Only 12% of managers can beat their benchmarks over long periods of time. You don’t get a refund if your manager can’t beat the index. You can’t get a refund if your CD or annuity renews at a lower rate. You can’t get a refund if we mess up your trustee to trustee transfer. We don’t give you a “better” death benefit check for $200,000 when your loved one dies. Many banks hit customers for fees they didn’t know about.

11. “When things go wrong, we treat you like you’re the enemy.” All brokerage firms disallow you to sue for bad service—you must use their arbiter and settle for the decision. One firm has the worst call response service in the industry. Another company pressured outside engineers to prepare reports concluding that damage was caused by water rather than by wind. They just denied all of them in the same geographic area. Another insurer dropped coverage and stopped signing new policies in coastal areas of 9 states. Some long term care insurers aren’t paying claims.

12. “We don’t care if you have been a loyal customer. We buy and sell customer accounts anytime we can make more money from it.” In the last few years, hundreds of customers have had their accounts dumped on others. For instance, John Hancock’s president sold the company to Manulife [Canada], Fireman’s Fund was sold to Allianz [Germany], Household Finance went to HSBC [Hong Kong], and Sage Life went to Old Mutual [S. Africa]. Brown & Co and HarrisDirect went to E*Trade. Golden West Financial went to Wachovia. MBNA and Fleet Bank went to Bank of America. A complete list is available at http://www.theinsidersguides.com/whoowyoacno.html. More consolidation is expected: HSBC, Rydex, Gateway Investment, GAMCO Investors, Julius Baer Investment, UBS AG. Your accounts could be next. You can do it yourself and save.

"Investors should purchase stocks [financial services] like they purchase groceries—not like they purchase perfume…” Benjamin Graham