Your Unbiased Advisor: advisor can't

Showing posts with label advisor can't. Show all posts

Friday, February 3, 2023

“Safe Retirement Income” email I received is wrong and misleading

Advisors/brokers say they can beat the market but they can’t

Wall Street must tell us they can beat the market because they only make money when we give them money. But they don’t know the future. Most unbiased information from Buffett, financial expert studies, and long-term financial institutions know that one-year wonders cannot provide accurate predictions or long-term returns ABOVE market returns. After a losing year for almost everyone, the market provided a 59% return over the past 5 years. That is 9.5% per year using the Vanguard 500 Index Fund. Few if any advisor provided market beating returns because their fees reduce our returns. They take their fees, charges, losses from our account. Over time, advisors can never overcome their own costs to provide market-beating returns. With the current fascination with AI, even AI says it cannot find a better security to beat the market. AI says market is too unpredictable to design a fund that beats the market index. Only a delusional financial firm would claim they can predict the stocks that could beat the market index in one year let alone consistently. It is only our greed that makes us fall for the promise of more.

https://www.amazon.com/One-Decision-Investing-Buffetts-strategy/dp/1723529176

“Safe Retirement Income” email I received is wrong and misleading

Annuity sellers are making promises that leave us with a misleading claim. Annuities are not “safe retirement income” because the companies that sell them won’t be around for us to sue when we learn the pitfalls of annuities. In the coming years, your promised benefits will be wiped out by inflation and reduced to the actual benefits stated in our contract—2-3%. The sales literature is wrong—“7% Returns with NO Market Risk”—because it is assumed the economy will stay the same. We know change happens. Insurers can become bankrupt, sell our contract, reduce the payouts, and sell on “financial illustrations” using bad assumptions to entice us to buy. Just the fact of inflation makes the word “Safe” income a lie. Over time normal inflation of 3% will reduce the VALUE of our monthly payouts by HALF. So at the beginning of the payout, age 70, we might receive $710 a month for life from a $100,000 deposit, by age 90, $710 may buy only $350 in goods. If we die at age 80, the insurer keeps the balance of our account.

Better option: https://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573

Which assets provide the best chance of reaching your goals?

Stock mutual funds with low costs provide 11% return over time. One advisor a year wins the top spot every year except IT ISN’T THE SAME ONE. That is the difference between an investor and a gambler. Look at the most recent past.

Now look at the DALBAR measures over time: https://www.dalbar.com/Portals/dalbar/cache/News/PressReleases/DALBAR%20Pinpoints%20Investor%20Pain%202015.pdf

If your advisor is taking their fees, charges, and market-timing losses out of your accumulations, you may be giving up 63% of your potential earnings over time. The best performing stock mutual funds in 2022 are not the same as 2021 or 2020 or any other year. Which is best for the long-term investor? Warren Buffett, one of the greatest investors, says Vanguard 500 Index is the best for beating Wall Street “professionals.” Buffett: “a virtually cost-free investment in an unmanaged S&P 500 index fund - would, over time, deliver better results than those achieved by most investment professionals, however well-regarded and incentivized those "helpers" may be.”

https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373

?**********ACCOUNTABILITY**************?

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

The Path to Dictatorship: 2010-2030

Parallels of this era in the past may hint at our future: democracy breaks apart legally

Jan 21 2010 Corporations’ election-spending unlimited

Billionaires paid $881 million for votes in 2022 midterm elections

Nov 2020 Wealthy discredit election process

Nov 21 2020 Trump’s Plans for a Coup: criminal

Nov 21 2020: Trump plan: US Marshals seize voting machines

Jan 6 2021 Direct assault failed: guns & bombs ready

Trump engaged in a "criminal conspiracy" to stop Biden

“I don’t f—ing care that they have weapons”

Trump was “detached from reality”

Trump used mafia-style intimidation on the defenseless

Trump still terrorizing election woman

Parscale: “a sitting president asking for civil war.”

Trump: “Just say the election was corrupt and leave the rest to me”

GOP fascism: “RINO hunt armed; no bagging limit” J6 comm threat

January 6, 2021 “A date which will live in infamy”

Trump’s Supremes END personal rights & state laws except for weapons WMDs

Fascism: GOP to stop women leaving state for abortion

It’s not a court. It’s a junta: Two Americas

Trump: President Biden is 'enemy of the state'

Christian Nationalist Party (CNP) replaces GOP

Nov 8 2022 Trump’s “national revolution” failed

Nov 15 2022 Trump announces for 2024 to avoid lawsuits

Dec 3 2022 Trump: cancel Constitution rules so ‘I win’

Jan 2025 Dictator pardons himself: his Supremes agree

How Govt wastes our money:

Why Your Tax Refund May Be Lower This Year

IRS reminder to get refund on time: efile quick and easy: discounted price

We still subsidize oil companies that post record-smashing profits Congress paid off

Shell profit more than doubles to $40 bln: tax on windfall profits can cut deficit

Military budget talks: Air Force general: prepare for war with China in just two years

Wealthy avoid taxes using expensive trusts: ‘save’ $ millions so we pay for deficits

SCAMS/SPINS:

school-librarians-vilified-as-the-“arm-of-satan”-in-book-banning-hate-wars

FL schools tell teachers: hide your books to avoid felony charges

FL diversity programs at Florida’s colleges/universities to be dismantled: whites only!

It is so easy to get a fool into Congress: we get what we deserve?: he quits committees

GOP will not consider 2.3 $Trillion Trump tax breaks for the wealthy in debt debate

GOP crazies: Biden’s former assistant is actually working for the Chinese Communists

Jan6 terrorist who pepper sprayed police got 80 mo.

deSantos puts Russian in charge of anti-Woke indoctrination at New College

TX stops enforcing handgun age limit: anyone can carry a gun

People under domestic violence orders can own guns -U.S. appeals court rules

CA Asians buying more guns to feel safe: everyone will carry a gun soon

Police body-cam NOT deterrent to excessive force on Blacks: don’t stop beating to death

NJ mother and GOP borough councilwoman executed outside home: just elected

EzriCare Artificial Tears recall: 1 dead; 5 blinded by bacteria from India

Fake twitter info on Presley and rocks: you can tweet anything now

Anthony Liddle WI caught misrepresented bond risk; stole clients' $1.9 million

Todd A Cirella NY Edward S Short caught churning for commissions: short suspensions

Windshield trim panels fly off Ford Explorers while traveling at highway speeds: Elmer’s

When you book with Expedia, most of your money is going to CEO pay $296 million

Doctors out-of-network take over care of baby w/o permission: send bill for collection

Water for Desert golf, artificial lakes from Colorado River but not for people

Jobs

5 Jobs That Didn’t Exist 5 Years Ago

Who owns your account now?

Edmunds’ 2023 top picks: EVs: CR reports EV problems: buyer beware

Employers must now comply with new regs on employee health insurance

41 percent of millennials say a parent or parents pay their rent or mortgage

ETFs with the Worst Returns over the Past Five Years

First NFT ETF Is Closing as Once-Hot Crypto Trend Fizzles

Your advisor using model portfolios but charging you for “personal” money management

Social Security benefits unknown to most people in need of help

Miracles:

Earth’s solid inner core might rotate at a different rate than the rest of the planet: slows

Trump told McCarthy: Republicans 'Won't Touch' Medicare Or Social Security

Iceberg size of Greater London breaks away from Antarctica ice shelf “naturally”

Finland is the only country where homelessness is declining: they built houses

L.A. residents must now put food waste in their green bin: compost law

Monarch butterflies wintering in California rebound: 2^nd year growing flock

Our Universe is Mind-Blowing

Light is both a particle and a wave depending on how we look at the light.

I don’t think that there is any such thing as a position or a velocity of a particle.

Everything (galaxies to stones) in universe made of subatomic energy ‘vibrations’

A subatomic ‘particle’ is the smallest possible vibration (quantum) of a quantum field.

Mass–energy equivalence: E=mc^2. At the smallest level; Everything is moving a little

Energy into matter: scientists converted light energy directly into matter in one step

Physics Nobel Prize: “entanglement” 2 particles share info instantly at a distance

“It may be that gravity and quantum mechanics are exactly the same thing,” Leonard Susskind

Gravity might induce the collapse of quantum vibrations into 1 quantum state—our world

There is no TIME at this level because of force fields come and go in all directions.

Universe expanding: events may not come together like they did before.

Inside protons, neutrons, it is the fields of the virtual particles that creates its mass.

Gold made from neutron stars: collisions produce more neutrons:79 protons,118 neutrons

The proton is so complicated science still finds new energy entities/forces every year.

“Empty space is a boiling, bubbling brew of virtual particles that pop in and out of existence in a time scale so short that you can’t even measure them.” Space expanding.

The electricity we use comes from the field around the wire not from election itself.

Scientists build 'baby' wormhole as sci-fi moves closer to fact: inside quantum computer

starts-with-a-bang/universe-expansion-not-accelerating/

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

973.746.2014

http://www.theinsidersguides.com/

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

Friday, December 9, 2022

Can you still grow a retirement fund if you start LATE?

Why Wall Street predictions are all wrong

The predictions financial gurus make are not reliable for your decisions. They are for circus “barkers” to attract your hard-earned cash to fuel the financial industry. Wall Street pundits’ predictions — like where the market will be in a month or a decade — is “mostly baloney,” one TV observer writes. Most people are terrible at predicting the future. That’s true of professional stock pickers too. Economists are really bad also. They have a terrible track record of predicting the economy, and the Federal Reserve has a terrible record of predicting the U.S. GDP a year [ahead]. “Wall Street refuses to acknowledge that stock forecasts don’t work because there’s too much money in forecasting,” Bob Pisani says. Traders say managing losses is more important than managing gains. But if you are not a trader, you need to “know your limitations.” His advice: behavioral biases are extremely powerful mentally. It’s very hard to shake them even when you understand. Pisani was asked, “Why don’t you hire a financial advisor?”

Why do you think they’re better? Why do you think they don’t have biases? His conclusion: use low-cost index fund. They don’t have personal biases and they minimize losses.

Automatic is best: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957/

Saving a million dollars

21,951,000 people in the U.S. have a net worth of $1 million or more. Among all states, New Jersey has the most millionaire households. Only 3% of American millionaires received an inheritance of $1 million or above. Real estate makes up about 40% of a typical millionaire's net worth. 79% of millionaires did not receive any inheritance from their family or relatives. 8 out of 10 millionaires come from low-income families. So it is possible for you to grow a $ million. The secret is not inheriting or inventing a better mousetrap. The secret according to Warren Buffett: compounding interest. Over time, your $250 a month becomes $1,000,000 from compounding not high salary. Only 31% of respondents surveyed had a $100,000 annual income at some time in their careers. One-third never made $100,000 a year at any point in their career. Many millionaires have a significant percentage of their wealth tied up in their primary residence. $250 a month, $3000 a year (average tax refund) becomes $1 mil in 36 years: $51,000 in 10 years, $104,000 in 15; and $191,000 in 20; $334,000 in 25; and $569,000 in 30; $957,000 in 35 years. Compounding adds $50,000 in the last year on average. Total invested: $108,000; total capital gains $952,454. You became a millionaire by earning 9 times your savings. You do it by using the only consistent market-beating mutual fund.

Start early: https://www.amazon.com/Where-can-your-child-invest/dp/1492164240

Can you still grow a retirement fund if you start LATE?

Every saved and invested penny counts in retirement unless you love to work. Many retirees still love to work at a reduced pace as long as they do what they love. If you are a teacher for instance, you may have had enough during the pandemic and are ready to change jobs. Some love working with kids and kids/staff are back face to face. It is never too late to start. You have decided to get serious about saving for your future. You are at a great advantage. Right now the stock market is down 17% for the year. This means you can buy a stock or mutual fund that cost 25-40% less than it did last year. For instance, Microsoft is now $244 not $334 and the stock index is at $393 not $480. Historically, important stocks and the market index have recovered in about a year. Since you are buying during a sale, the value of your account will reach a greater value so you can retire with retirement income. Using your company 401k low-cost index account gives you the advantage of growth without immediate taxes. Your fund compounds faster since your full contributions grow. If you avoid taxes and advisor fees, you could accumulate over $300,000 in 20 years adding $400 a month. If your employer matches some of your $400, you can reach $400,000. Since you are not going to take the full amount out the first day of retirement, you may be able to reach $500,000 after you stop working.

https://www.amazon.com/Robbing-You-Blind-401k-fees/dp/1493588966

Stock pickers lost your money

A new study of actively managed mutual funds by S&P Dow Jones Indices asked that question and came up with a startling result. It found that not a single mutual fund — not one — managed to beat its benchmark in either the U.S. stock or bond markets regularly and convincingly over the last five years. Why? Costs. Experts who are not hyping their own businesses agree that “an investor can expect to do better by holding a well-diversified, low-fee, passive index fund than by holding a few stocks.” Over time, no one Wall Street ‘professional’ is consistent enough NOT to cost you earnings. In fact, if you are paying them from your account, they may be taking up to 63% of what you would have had. In fact, Dalbar, the financial scorekeeper found that the index provides 11% return over 30 years while the investor using pickers’ funds earns only 3.79%. That is a huge loss to you. Especially in your 401k plan, mutual funds that pay rebates plus direct fees reduce your net gains drastically over time. Costs matter!

https://www.amazon.com/Best-Predictor-Investment-Success-Cost/dp/1502524082

Can you safely take 3% or 4% from your egg during inflation?

There are advisors who advocate different rates of spending from your nest egg. The two most popular are 3% or 4% a year. Using the historical market data and $1 million retirement fund, this analysis says “the 4% rule does work most of the time, but watch out for periods of high inflation. Don’t blindly take out 4% a year when inflation is high and your portfolio performance is low. The 4% rule may be something like 95% effective historically, but being flexible with your withdrawals will prevent complete disaster even if you are in the bad luck 5%.” I take this advice of “being flexible” as the best advice available from the analysis. Since I have a mostly qualified retirement fund, I must withdraw a mandated RMD of about 3.2% of last year’s lesser total accumulation. If I need more income, I take out some of my losing cash account stocks. Let winners run.

https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

Wealthy learn new ways to avoid taxes in MA

MA has passed a new tax on millionaires. Millionaires are paying big fees to their accountants and advisors to escape the tax before they get the bill. They tell them 1 that if your income is over $1 million, you could try to receive some before the end of 2022 instead of in 2023 when the tax goes into effect. 2 spread income over time so you don’t exceed $1 million. 3 use 1031 exchange to postpone tax on a rental property gains. 4 move out of jurisdiction. Many states are run by millionaires and billionaires and thus are unlikely to ever tax millionaires. If your $ millionaire status is because you may receive a one-time bump, your accountant may already have ways to keep the income out of your 1040. Many business people use their structure to show income in different ways. This may help them avoid taxes like our former president did.

https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

?**********ACCOUNTABILITY**************?

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

The Path to Dictatorship: 2010-2030

Parallels of this era in the past may hint at our future: democracy breaks apart legally

Jan 21 2010 Corporations’ election-spending unlimited

Billionaires paid $881 million for votes in 2022 midterm elections

Nov 2020 Wealthy discredit election process

Nov 21 2020 Trump’s Plans for a Coup: criminal

Nov 21 2020: Trump plan: US Marshals seize voting machines

Jan 6 2021 Direct assault failed: guns & bombs ready

Trump engaged in a "criminal conspiracy" to stop Biden

“I don’t f—ing care that they have weapons”

Trump was “detached from reality”

Trump used mafia-style intimidation on the defenseless

Parscale: “a sitting president asking for civil war.”

Trump: “Just say the election was corrupt and leave the rest to me”

GOP fascism: “RINO hunt armed; no bagging limit” J6 comm threat

Trump’s Supremes END personal rights & state laws except for weapons WMDs

Fascism: GOP to stop women leaving state for abortion

It’s not a court. It’s a junta: Two Americas

Trump: President Biden is 'enemy of the state'

Christian Nationalist Party (CNP) replaces GOP

Nov 8 2022 Trump’s “national revolution” failed

Nov 15 2022 Trump announces for 2024 to avoid lawsuits

Dec 3 2022 Trump: cancel Constitution rules ‘I win’

Jan 2025 Dictator pardons himself: his Supremes agree

How Govt wastes our money:

Facial recognition at the airport: gov claims not making national database

New bomber @ $750 million each: 100 ordered to kill everyone in the world.

Tax changes for 2022: avoid filing paper return do to fewer processing staff

Trump Org guilty of tax fraud: Trump signed check to evade employees taxes

Meet the people who actually make US laws so their bosses can profit more

Drop in labor costs points to private sector profits as a main driver of inflation

SCAMS/SPINS:

BEWARE: St. Louis banishes people from swaths of city: punishment for petty crimes

15 yr old canvasser for Sen. Warnock shot in Savannah: democracy on the line

Discrimination in name of free speech: Christian Nationalist web designer hates gays

VA restaurant refuses to serve Christian conservative’s event

RoboCalls: almost all our phone calls go to https://nomorobo.com/: cancel land line?

AT&T caught selectively leaking financial info to Wall Street analysts: fine no jail.

Tesla caught deceptively marketing its driver-assistance systems: more complaints.

BEWARE: Tesla Semi may not see you slowdown or passing.

Hertz caught getting renters arrested for theft due to poor tracking: fine no jail

Hackers linked to Chinese government stole $20+ millions in Covid benefits

TX bans TikTok on official work machines

MiddleMen want $30,000 to see Swift: Handel’s Messiah in a historic Cathedral $40

Eight universities partnered with online sports-betting companies: 2^nd student loan

Trump took/hid more state secrets in his storage unit West Palm: selling to pay taxes?

Another church hides sex abuse so no perp is arrested: sex in the name of God

Child abuse doctor indicted in jail: priests bishop minister abusers never indicted-run free

Rage: 40% drivers admit they carry gun while on the road: 50% knife; 45% pepper spray.

WV may have drug users sterilized for reduced sentence: “reduces drug babies”

Supremes decisions tilt toward Christian evangelicals: constitution says no favorite faith

Another Trump-style dictator coup fails: Peru Castillo tried to dissolve Congress

German terrorists seeking to overthrow the state caught: they are everywhere

US says Saudi prince beyond law: killing reporter is OK since prince of oil exporter

Jobs

On the move: 24% of U.S. homebuyers looked to relocate to new cities

Remote jobs are in demand, but positions are drying up

10 college degrees that job seekers regret obtaining

70,000 new staff members over the next five years in financial services: $50K - $130K

Chip maker Phoenix factories 13,000 high-tech jobs, 4,500 TSMC; rest by suppliers.

Warnock projected to win Georgia's Senate runoff on Tuesday

Warnock for 2024?

Who owns your account now?

First solar electric car: charge every 2 months or leave in the sun

Tesla self-drive RV semi gives you portable home that drives you there overnight

Why our family can’t afford a baseball game: $360 million pay for 1 player

Miracles:

Unemployment income exclusion: IRS sent letter 12/2/22

We’re Blessed: recent scientific research suggests that life in the universe is rare.

‘Walnut Queen’ Broke Lots of New Ground: when you think you have difficulties

First early screening test for pancreatic cancer: urine tested in dish

Trump’s Supremes consider end to voter-decided elections: state pick electors a la Trump

Zelensky: TIME 2022 person of the year: Sell mags: Trump 2016 person of the year?

Women of Iran: TIME 2022 Heroes of the year

Griner free in prisoner swap for arms dealer

Hurricane erosion reveals 1800 shipwreck on Daytona Beach

CA homeowners losing their water to growers’ wells in the Central Valley

Covid death up: Vaccines for Holiday celebrations: https://www.vaccines.gov/

Our Universe is Mind-Blowing

Light is both a particle and a wave depending on how we look at the light.

I don’t think that there is any such thing as a position or a velocity of a particle.

Everything (galaxies to stones) in universe made of subatomic energy ‘vibrations’

A subatomic ‘particle’ is the smallest possible vibration (quantum) of a quantum field.

Mass–energy equivalence: E=mc^2. At the smallest level; Everything is moving a little

Energy into matter: scientists converted light energy directly into matter in one step

Physics Nobel Prize: “entanglement” 2 particles share info instantly at a distance

“It may be that gravity and quantum mechanics are exactly the same thing,” Leonard Susskind

Gravity might induce the collapse of quantum vibrations into 1 quantum state—our world

There is no TIME at this level because of force fields come and go in all directions.

Universe expanding: events may not come together like they did before.

Inside protons, neutrons, it is the fields of the virtual particles that creates its mass.

“Empty space is a boiling, bubbling brew of virtual particles that pop in and out of existence in a time scale so short that you can’t even measure them.” Space expanding.

The electricity we use comes from the field around the wire not from election itself.

Scientists build 'baby' wormhole as sci-fi moves closer to fact: inside quantum computer

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

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

Friday, September 23, 2022

new advisor/broker rules

Your RMD will tell you how much you need in retirement

When you save for retirement in a 401k, 403b, IRA, or other deferred taxation account, you will need to pay the tax when you retire using IRS rules. The required minimum distribution (RMD) will be about 4% of your total of all your deferred account balances every year beginning at age 72. The formula recalculates each year based on your previous year’s balances and your rising age. Your mutual fund company or broker will do the calculation so you don’t get a penalty for a mistake. However, to answer the question how much do you need to save, you can use this handy AARP calculator. https://www.aarp.org/work/retirement-planning/required-minimum-distribution-calculator.html. Here is an example: If you’re 72, for example, the distribution period is 25.6 years, based on the US life expectancy. Then divide your balance by the distribution period. Let’s say you have a combined $100,000 in your tax-deferred retirement accounts. $100,000 divided by 25.6 is $3,906.25, which is the amount you must withdraw annually. If you are in the 25 percent combined state and local tax bracket, you’ll owe $976.56 in taxes on your RMD. The tables change as well as the US life expectancy, so don’t use this calculator to determine your RMD for yourself. You can take your RMD out of one account, or take bits from each one, so long as you withdraw the required minimum. You can take more.

https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

It can’t get much worse

The S&P 500 growth-leaning stocks are down 22% YTD. If you are concerned you should buy this index in a low-cost fund since over most history, this index has regained its strength within a year. The exception was 1973 when the whole banking system collapsed. We don’t have that imbalance this time. The stock market has fallen back to the level it was in March on 2021. More likely the high employment and thus consumer demand will help provide impressive future returns. The alternative is taking your losses and moving money to 3% CDs for 15 months. No one knows for sure so when your brilliant advisor suggests an alternative be sure to query their analysis. Keep in mind that low-cost index returns have been tested over time: “In every single time period and data point tested, low-cost funds beat high-cost funds.” That goes for every sector of the economy too.

It’s your money: https://www.amazon.com/Best-Predictor-Investment-Success-Cost/dp/1502524082

Ideas that wreck our investment success

“I hold on to losing stock because I must wait to recover my losses.” This means we are too emotionally attached to a fantasy. “My stock pick rose 10 days in a row. I’m a genius picker.” This means you had beginner’s luck and look out! “My pick’s success prove that my next one will also be a success.” This means your luck is derived from a growing market where all boats rise with the tide. “My picks were also chosen by the Journal. I must know something about picking winners.” This coincidence means another of the millions that follow stocks saw what you saw. “My last 3 picks have been losers so my next pick will win.” This means you are a gambler not an investor. “I got a bonus at work I did not expect so I am blowing it on this stock.” You are a gambler. Take Buffett’s advice and become an investor in great companies for the long haul.

https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963/

Ideas that ensure investment success

Investment success is defined as reaching your goals long-term. Investing is not gambling where you are looking for a short-term windfall. Investing in the companies that make things or add value to the world require commitment to putting money into expansion with the hope of gains later on. US companies as measured by the stock market price and dividends have shown compounding wealth at about 11% per year on average over time. History of annual gains are recorded here. From 1871 to 2021 the growth rate is 11%. When you compare the stock market returns to other asset returns, you find the equity index holds at 11% while the gains for different assets are much less. Equity accounts managed by ‘professionals’ earn more for all time periods. Costs matter. Over 30 years the difference is stark: 11.06% vs 3.79%. Thus the ‘safest’ investment is a stock index fund that is continuously funded in order to maximize the “miracle of compounding.” Contribute $9 a day, $250 a month and own $2,000,000 in about 40 years. Use a tax-FREE account with a low-cost stock index and pay no taxes on your gains.

https://www.amazon.com/New-American-Retirement-System-Reserve/dp/1461030072

Cut taxes in retirement

If you feel you are paying more tax now than before you retired, consider these options. First, you must pay income taxes on the money you saved in a tax-deferred account at work. You may also have to pay tax on your Social Security benefits. So you may be able to convert a portion of your IRA to a tax-FREE future by staying in your current tax bracket. Your tax preparer can help with this calculation. Second, tax on capital gains is lower than on income so take some gains. Third, consider not selling assets this year. Fourth, plan charitable giving so you maximize your deductions. Fifth, delay taking or making taxable income. Rental real estate or other self-employment is a great way to defer taxation. Sixth, switch investments to non-dividend paying securities that diversify your portfolio. Buffett’s Berkshire Hathaway is one with many different subsidiaries. Market index funds are tax efficient.

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

Employees say they don’t want traditional “retirement”

84% of employees say they want ‘financial independence’ not traditional concept of retirement. 55% say they would give their employer more personal data in return for personal financial strategies. However, employers don’t really want to provide strategies for their workers. They already have shifted the burden of ‘financial independence’ to workers by canceling paid pensions. Now some employers are not even meeting basic fiduciary requirements in their 401k plans. Workers must decide on the amount of contributions for a comfortable future income stream. They must also choose which investment options to use in their savings’ plans. However, because workers are not able or capable of making these complicated decisions, employers are essentially wiping their hands of this responsibility. Actually employers do not want ANY responsibility for their workers future financial success or failure. Workers have had to sue employers just to be fair with their savings plans. Employers sell workers the most expensive version of their company stock, the most expensive mutual funds, and the investment options most beneficial to the plan administrator or broker.

https://www.amazon.com/Robbing-You-Blind-401k-fees/dp/1493588966

Advisor/broker must follow the new communication rules

They can’t lie/misspeak to us anymore:

Includes untrue statements and omissions;
Includes unsubstantiated material statements of fact;
Includes untrue or misleading implications or inferences;
Fails to provide fair and balanced treatment of material risks or material limitations;
Fails to present specific investment advice in a fair and balanced manner;
Cherry-picks performance results or otherwise presents performance in a manner that is not fair and balanced; or
Is materially misleading.

They have to keep a record of what they communicate by any means. The modernization of archaic regulations has seen digital platforms enter the SEC’s jurisdiction, and compliance demands are about to increase drastically. They can still talk a great game so we may need to record a call.

?**********ACCOUNTABILITY**************?

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

The Path to Dictatorship: 2010-2030

Jan 21 2010 Corporations’ election-spending unlimited

Nov 2020 Wealthy discredit election process

Nov 21 2020 Trump’s Plans for a Coup: criminal

Nov 21 2020: Trump plan: US Marshals seize voting machines

Jan 6 2021 Direct assault failed: guns & bombs ready

Trump engaged in a "criminal conspiracy" to stop Biden

“I don’t f—ing care that they have weapons”

Trump was “detached from reality”

Trump used mafia-style intimidation on the defenseless