2021 better than 2020?

 

Hope your 2020 was as successful as some of our readers

Our readers use Vanguard mutual funds because they are low cost and well diversified. As you can see, even though oil ‘tanked’, growth around the world more than made up for the loss. Readers maintained their long-term average of over 11% for stocks and thus this year of pain didn’t hurt them financially. Most readers did not panic and sell in the March market collapse. International Growth benefited by its top 5 holdings: Tesla, ASML Holding, Tencent Holdings, Alibaba, and MercadoLibre. Some readers held only Target Retirement funds and still earned about 15%. This confirms this new investment strategy of holding just one low-cost diversified balanced fund during our working years. This is a simple but effective strategy. We avoid paying a broker and thus avoid giving up 63% of our potential long-term nest egg. We keep more by paying less.

 

2020 Total Return Fund                    Long-term Return      Longevity

18.4% 500 Index                                             11.3% since 1976

-30.8% Energy                                                   8.5% since 1984

32.2% Extended Market                                  10.7% since 1987

12.6% Health                                                   16.1% since 1984

59.6% International Growth                              11.6% since 1981

17.3% PRIMECAP                                         13.8% since 1984

19.1% Small Cap Index                                    10.6% since 1960

 8.5% Wellesley Income                                     9.7% since 1970

 7.4% Windsor                                                 11.2% since 1958

14.5% Windsor II                                            10.8% since 1985

15.9% Average                                                11.4% *

            *Average Annual Returns as of 12/31/20.

 

Avoid broker charges: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

 

Two Americas: separate and unequal

Rich got richer in 2020; poor got poorer: Two Americas grew farther apart. Another 800,000 filed for unemployment last week. Some have stopped collecting but there are still 11-12 million collecting unemployment. The extra federal benefits will run out this week. The other America—the one that owns stocks or profitable companies got richer last year. The wealth of those with stocks went up by over 16%. Some of our readers met their goals for retirement income by NOT selling in March when the pandemic hit. Our government made sure by propping up big business with borrowed money the rest of us will have to pay for later in higher taxes. 60% of Trump tax cuts went to the top 20%; the corporate tax rate is slashed by 40%. There are TWO Americas and they are going in different directions. Wages for most workers have not kept pace with inflation. With more money in the election system, can there ever be ONE America again? We have a system that rewards the elites with subsidies and we have to pay for their wealth. Plus the health care system spares no expense to help the elites while the poor suffer longer.

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

 

You can continue to subsidize your child’s life

Several readers needed to know what the options are for making sure their kids will continue to have an income even after they, the parents pass. Today the standard option is to pay a lawyer to make a trust of some kind and pay to update it every year and pay federal taxes every year. Some of us are not willing to spend big bucks so we need to consider all the options. Most people have a will that leaves their property to heirs. Many readers used to plan to leave the money they don’t need from their IRAs to heirs outside their wills to beneficiaries. A primary would be a spouse and the secondary or contingent bene would be your offspring. This was our plan until Trump’s party changed the law in 2019 to eliminate the ‘stretch IRA’ as it was called. Some readers have chosen an annuity to keep paying their kids after they are gone. However, the annuitant, as the kids are called, can then cash it in—taking all the money out at once. This causes a big tax bill plus there will be no more monthly benefits to live on. Some of us in retirement are thus exploring a special low-cost immediate annuity that does not allow full ‘surrender’ as it is called. Some or all of the benefit each month will be taxable after you, the owner, dies but at least your heir cannot waste a lifetime income. You could convert the IRA to a Roth IRA, paying all the taxes up to that time and leave the future monthly income with smaller taxes. This may solve your problem of providing your heirs with a monthly income for life. Annuities are priced by current interest rates. Example: $500,000 from a Roth IRA invested in an immediate annuity will pay a 40 year old $1550 a month for life.

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

 

Social Security benefits are taxable: delay as long as you can

If you file an individual tax return and your total income is between $25,000 and $34,000, you may owe income taxes on up to 50% of your Social Security benefits. Earn more than that, and up to 85% of your benefits could be subject to taxes. If you file a joint return and your combined income is between $32,000 and $44,000, you may owe taxes on up to 50% of your benefits. Earn more than that, and up to 85% could be taxable. Even municipal bond tax-free interest is used in the calculation. The easiest way to avoid paying taxes on your SS benefits is to delay taking benefits while they grow at up to 8% a year. After age 70 they stop growing. You can also stop being employed. Others have found that they can self-employ and use their business expenses to offset their income. This is the method our president uses to take $ millions of income yet pay little or no taxes. His businesses show a loss that offsets his income of all types. For instance, he “gave” away the forest near his New York mansion and claims a deduction because he said the land could have been worth $ millions if it was developed. You may not have a forest to deduct but you can lower taxes in retirement using a legal tax shelter.  

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

 

Is buying stock in the next Apple directly right for you?

Regulators have just announced that we can cut out Wall Street bankers and buy the next Apple directly. No more IPO stock being sold only to the elite by Wall Street bankers. Wall Street controls who is offered the next explosive stock. However, in 2018, music streaming business Spotify Technology SA was the first major company to go public via direct offering. Direct listings had also been limited to companies wanting to give early investors or management the opportunity to cash out by selling stock. Cutting out the middleman has been a strategy for many successful consumer products like Tesla cars. Is buying an untested company stock right for you? This is a read gamble since new issues often rise quickly and then crash after insiders/speculators take profits right away. This strategy also assumes that you can research the company fundamentals quickly. As we all have learned, gambling is fun IF you win.

Invest wisely: https://www.amazon.com/Buffett-Bogle-Holy-Bible-Investment/dp/1523693045

 

If you are over age 70.5 your RMD for 2020 was waived.

If you already took an RMD in 2020, can you reverse it? “Technically, the distribution can’t be reversed,” says Schwab expert Hayden Adams. “However, according to new guidance from the IRS in Notice 2020-51, you can re-contribute the amount back into your retirement account as long as you do it by August 31, 2020.” Unfortunately, you can’t reverse the tax withholding, but depending on other factors in your tax situation, the IRS could refund the withdrawal when your 2020 return is filed. Your tax preparer will need to follow new instructions to do this. It might be easier to pay the tax on the few months you took your required minimum distributions in early 2020 since you may have had taxes withheld anyway. We must resume automatic RMD in 2021. We may resume deducting IRA contributions from income if you have earned income. With the (SECURE) Act there is now NO age limit on contributions as long as we have earned income (even self-employment income). Instead you can create a tax-FREE fund for your future by using the special IRS account: a legal tax shelter.

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

 

Tax prep for 2020 income is different

RMD retirement income waived. Higher standard deductions. Higher income tax brackets. Higher contribution limits for (some) retirement accounts. Unemployment compensation is taxable. Charity deduction without itemizing. Higher cap on Social Security payroll taxes. All income above $137,700 avoids the 6.2% tax so the more you make the less you pay. All capital gains and dividends are taxed at lower rates than our earned income so the more you live on dividends and gains the less you pay. Most high income executives take most of their pay as un-taxed deferred compensation—usually at lower rates. For instance, Warren Buffett with $86.8 Billions pays only 17.7% in taxes while his staff pay over 33.9% of their compensation. So the more you make, the less you pay. Yet the millionaire Congress denies helping most Americans during their hour of need after providing one of the largest tax breaks in history to the rich just 2 years ago.

Pay only your fair share: https://www.amazon.com/Tax-Credit-Class-use-your-credits-ZERO/dp/1539462382

 

 

 

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

 

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

 

 

Our ‘Truth and Reconciliation Commission’? 

 

Healing America begins with admission: 340,000 dead

 

Dictator’s advisor: “we want them infected”

 

Dictator sitting on 55% vaccine: 3,000+ die per day

 

Dictator’s revenge hurts:

no stimulus, no unemployment, no eviction extensions

 

 

How Govt wastes our money: Our Representatives gave 3.7 Trillion to the wealthy! 

Millionaire congress ignores voters: WH does nothing; we pay for vacations; power plays  

60% of GOP/Trump tax cuts went to the top 20%; the corporate tax rate slashed by 40%.

McConnell decides not to help America’s poor/unemployed: GOP ran deficit for rich but not us

Millions go to food banks for 1st time: McConnell: Congress has provided enough pandemic aid

 

Commander vetoes own defense bill so he can sue Twitter: no raise/housing fix for troops

 

Louie (the Bull) Gohmert (R-Texas) sues Pence to nullify Biden win: waste court’s time

Sen Hawley MO Trumpist to vote to nullify our votes: Trumpists try delay for Coup

 

Seat belt mandate in every state saves lives yearly: life you save with mask may be yours

Luke Letlow, GOP Louisiana, died of covid-19 : Pelosi praised service to country

Judge orders GA GOP to stop purge of Dem voters before senator elect re-vote:

 

 

SCAMS/SPINS:

Is a pardon the same as not guilty? Gen Flynn lied a lot: FBI: will USSR clients pay him now?

Trump’s “virus is hoax” was lie: 340,000 dead: Sen Ernst, Graham ‘hoaxers’ took vaccine; Why?

Saudi ruler sent woman to prison for 6 years because she drove her car: Trump agreed

America: world’s largest death dealer: Israel, Saudi Arabia, United Arab Emirates Egypt despots

 

Domestic terrorists occupy DC hotel ready to help dictator remain in power in WH

Secret Service agent switched out due to political persuasion: Biden has old team back

 

 

Omni Financial caught violating military allotment rules: fine no jail

Snow Teeth Whitening caught claiming protect against virus as well as dark teeth

Miracle Farming caught raw apricot seeds or kernels do NOT cure cancer: B-17 is fake

Tesla owners last year cited an “alarming number of car fires”: start spontaneously.

Home Depot ceiling fans recalled: blades could spin off while twirling

Chase ditches Expedia for own Chase portal: book a flight completely free using points 

PPP loan forgiveness rules changed twice: tell accountant to measure twice, cut once

Review 529 plan rules change: 2017 tax reform bill and Secure Act.

Recall dog food: Sportmix pet food products cause illness/death from corn mold.

 

 

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

Jobs in high demand: IT, accounting, financial, health care, education, training

Millions out of work: unemployment up; shoplifting up; burglary down

 

Who owns your account now?

Spend your FSA dollars before they die or carry over to next year.

Time to downsize vehicles: 3 best used: reliability, safety and long-lasting value.

 

Miracles:

Science finally trying to limit our mosquito bite itch: how do they find my skin?

Kids! Math and playing Othelo can keep you healthy: Kane Tanaka, turned 118 in Japan. 

 

Good events of 2020: former teacher used yard for small group of children Wildside Academy

 

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

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

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

 

 

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

Best way to start investing

What is the best way to start investing for the future?

The best way to start and continue to invest for a lifetime is a Target-Date or ‘balanced’ fund. Because we don’t know when the market will fall, we can’t time the market to get out at the right time. People who try this strategy usually lose. In fact, over time, they usually earn just 3.79% versus 11% for the ‘keep-investing’ folks. Inflation of nearly 3% reduces their buying power even further. Why does this happen? Most of us take the short view; not the long view with our savings/investing dollar. If our quarterly statement account shows a loss, we opt out of the long-term 11% return. We can ride out a market fall by using a balanced fund like the low-cost Wellesley Income Fund. Its allocation of 60% bonds/40% stocks has provided nearly 10% a year since 1970. So even when stocks fell 37% in 2008, this fund had less of a ‘statement’ loss to overcome. Also, some folks seem to think that when the market falls 37% they actually lose 37% of their money. If you don’t sell, your fund holds the same number of shares so when the shares rose 27% and 32% as in 2009 and 2013, your account value still maintain the 10% a year over time. Stay invested for more: https://www.amazon.com/Millionaire-Mutual-Funds-Save-taxes/dp/1534939490

 

Are women better investors than men?

Studies show that women are willing to wait for their accumulations to grow. Patience pays, according to Warren Buffett. When women in one study worked with woman advisors, they held less cash and considered themselves to be more risk tolerant than men. Consequently, their returns were higher. Among the participants, those working with an advisor had a cash allocation almost 15% lower than those with no professional financial advice. However, when female investors worked with male advisors, two-thirds of this affect was offset. The data parallels the experience of master investor, Warren Buffett. Recently, he won his bet with a hedge fund manager using 5 different strategies. Buffett bet $1 million that a simple low-cost index fund (Vanguard 500 Index fund) would outperform stock-picking investing. DALBAR keeps track of investor returns and has shown that over time, a low-cost index wins: No trading, no market timing, and no chasing earnings. In each period, advisor-managed accounts earned less than ‘buy and hold’ investors: 3.79% versus 11%. Wall Street is wrong.

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

How much can your money earn without you?

Do you expect your money to work for a living? If not, you are losing the largest potential earnings available. Fidelity looked at its most successful investment accounts. Guess what? The most successful accounts were owned by people who died or who forgot they had them. Lesson: don’t pay anyone to ‘manage’ your accounts. How can this be true? Warren Buffett the greatest investor of our time says his success is from ‘compounding.’ If we leave our stock/bond account alone, it will earn money by itself. We do nothing! For example: Invest $250 a month in Buffett’s recommended account and 33 years later you have about $993,000. You invested $99,000 (3,000 x 33 years). Your money earned $894,400. You did NOTHING but allow $250/month to work!

Let compounding work: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513

When Fed rates fall, retirees need inflation-buster

If you rely on ‘high’ savings rates to float your retirement income then you better plunge into 2.5% paper now. However, with inflation running at over 2%, you are losing your purchasing power. All your costs are going up and your earnings down. What to do? The answer is having enough for expenses now and growing your assets for the future. You must bust inflation wide open or your future income is in jeopardy. How can you do that safely? A little risk goes a long way. Think of it this way: part of your assets are for 2 years out and part for 10 years out and part for 15+ years out. Don’t think that all your assets will be needed at the same time. You can afford a little risk with those 15 year assets. Your 2.5% works for now but won’t cut it for later. For later, a balanced fund is best. A long-term winner is the 40% bond/60% stock fund from Vanguard. Balanced Index shows solid a 6% return since 2000 with only 0.07% cost. Or the low-cost Wellesley Income Fund. Its allocation of 60% bonds/40% stocks has provided nearly 10% a year since 1970. Plan 2 year, 10 year and 15+ buckets.

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

**********

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

Planned Parenthood barred from doing family planning. GOP needs more SSI kids.

Personal Financial education wasted: need info at time of use not ahead of time.

Trumper defies Congress subpoena: respect for law ended by GOP? No jail time!

More troops to Saudi and Mexico as US ready for wars again.

EPA cancels inspections that catch polluters in the act: Koch etc donations ‘speak’

Labor secretary worked against labor for Ford, Boeing, etc to kill protections.

SCAMS/SPINS:

Government can’t stop Robo calls; can phone companies? For a price?

How many times can you cry wolf?  Any credibility left?

What happens if ObamaCare ends? Freedom to go bankrupt: unpaid costs take savings.

NJ, NY, CT sue IRS: SALT tax cap $10K discriminates against one group of people

Todd Ficeto, CA caught ‘pump and dump’ penny stock scheme: $200 M fraud—jail?

Henry Wieniewitz caught selling securities w/o license 630 customers $3 M commission 

People’s pain concentrated in certain markets: solution creates the problem

Beware: ‘Extensions’ you download may sell the info you don’t want people to have.

Beware: Financial ‘research’ is commodity like discount airline seat: cheap buys cheap?

Jobs:

Criminal contempt of Congress?: Barr and Ross are NOT arrested; business as usual.

Who owns your account now?

Summit Brokerage to Cetera Financial Group’s previous parent company, RCS Capital

USAA brokerage to Schwab

Miracle:

Racist not impeached from US presidency: Politicians fear! Few stand for America

Barefoot woman climbs Mt Rushmore: No gear/shoes--$1000 fine but not to top

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Are you Winning the Investment War?

Are you Winning the Investment War?

Are you earning less than 11% per year average on your retirement money? Is your broker/advisor taking 1.5 or 3% of your account EACH year whether they make money or not? Did they tell you how many years they have beaten the market average of 11%? Did you know that your broker/advisor has strict orders NOT to help you reach your goals using low-cost products? … even if they are right for you now? Do you understand what your advisor has in your portfolio? Why do you still pay 12-b1 fees for marketing charges if you already own the funds in your account? Did you do any research on your broker/advisor? Have they been sanctioned in other states? Did you earn 1.4% this year?

You can Win the Investment War: http://www.amazon.com/Win-Investment-War-Earn-11%25/dp/1522916369

Do you claim tax breaks for your ‘backyard’ like these folks do?

Congress made the IRS tax law that lets the rich claim a charitable deduction for their golf course (giving away the right to develop land they still own and can use). In other words, we pay for their backyard golf course with a view. 1,114 tax “evaders” took an average deduction of $872,250 based on the rule, according to the IRS, for a total of about $1 billion. If you are concerned about the national debt or your tax bill, consider that the rich will always have their golf courses and don’t need the tax break.

Pay your fair share: http://www.amazon.com/How-Retire-Tax-FREE-Income-increases/dp/1484156951

There is no reason to overpay for financial success

The record is clear: earn 3.79% with advisor managed account or 11% with a market index fund like the Vanguard 500 or Fidelity 500 Index over time. If we just held the whole market and didn’t try to time the ups and downs, we could earn 10-12% a year.

This is the record you could have:

2015    1.4%

2014    13.80%

2013    32.43

2012    15.88

2011    2.07

2010    14.87

http://www.amazon.com/The-Pimps-Wall-Street-middlemen/dp/151525254X

Is your broker/advisor fee your largest expense?

Why not fire your advisor. That is what this client did. When he found that his single largest expense was the $40,000 asset management fee on his $5 million portfolio, he switched to a planner that charges by the hour or event. No matter how big your holdings are, you can do better than pay 1-2% a year on assets advisors never touch. Just like a lawyer, you can find or negotiate a fixed fee for service--charitable giving, tax planning, paying for college and wealth transfers. After all, no advisor can see the future and guarantee your asset level for 1%, 2% or 5%. Use Vanguard’s unbiased advisors.

Don’t waste your money: http://www.amazon.com/Keep-More-What-Earn-Diversification/dp/1479293474

GOP judge defies Supremes on marriage equality

AL state court barred state judges from issuing same-sex marriage licenses, in contravention of the broadly accepted meaning of a June 2015 U.S. Supreme Court ruling. Chief Justice Roy Moore forbade probate judges in the state from issuing marriage licenses that violate the state’s laws prohibiting same-sex marriage, “until further decision by the Alabama Supreme Court.” We either have one national court or we don’t.

Civil War to be fought all over again?

Does our President need to be rational and truthful?

GOP silent on white gang grabbing Fed reserve—Silence means agree?      

Trump wants to send Cruz back to Canada—Communist Cuba background?

Trump: It’s OK to use wrong video for hoards of immigrants crossing border

Trump’s friend Putin says US is threat to our “national security” UK banned Trump

Trump: to increase price of all goods from China by 45% -- almost everything we buy!

Cruz: won’t respond to Trump attack on his Cuban religious heritage.

Obama blamed for Saudi executions—sounds like GOP: Everything is Obama’s fault

Jeb: Sorry I lied about NRA award and Charlton Heston’s gun gift! “I think I read it”

Jeb: Fed poverty programs end; give money to states  who make slush funds

Christie: Out of state most of time costs NJ taxpayers over $1 million for guards/vans!

GOP repeals ObamaCare the 61st time—still no GOP replacement plan!

Nixon doctrine: “when the president does it, that means that it is not illegal” Dictator?

(Some voters actually believe candidate’s statements like immigrant roundup.)

Regulators are the only protection we have since we can’t sue anymore

            “It is nearly impossible for one individual to take on a corporation with vast resources.”

               Supremes stop us from suing—State courts no longer available to sue corporations!

Julius Baer Ltd, Swiss to pay $547 million for helping Americans evade taxes. No Jail.

Caldwell International Securities caught churning client’s accts –$1million overcharge

Reg. recall 90,000 pounds Huisken Meat beef--wood found in Sam’s Choice.

MO says sex between lobbyists and legislators is a ‘gift’ and must be posted on forms.

Finra Securities Helpline for Seniors (1-844-574-3577) has recovered fraud and scam $

We need regulation—GOP is wrong—companies would not fix bad products on own

Best advice an investment manager ever gave me

“You’re gonna get a statement every month,

Don’t open it. Never open it. Don’t peek.” It was from Jack Bogle, Vanguard.

Compare the funds that did the best over 20 years to help you decide where to invest your serious money. If you will need money in 5-10 years, you will have it and you will have a chance to receive the highest return possible without taking undue risk. Is there an overlap between the best 1-5 year and the best 20 year funds? Well, that one may be your choice. You don’t have to move your money every time another fund advertises it has high returns. As Warren Buffett says, “my holding period is forever.” Hold ‘em and let Buffett’s investment secret work for you.

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

HOW CONGRESS WASTES OUR TAX DOLLARS

Special Inspector General John F. Sopko has spent years documenting waste, fraud and abuse in the U.S. military’s efforts to rebuild war-torn Afghanistan. We have spent $110 billion on reconstruction projects in Afghanistan.

=Afgan courts that we pay for allow men to kill innocent women. Let’s stop paying!

=Clive Bundy still has not paid his $1 million cattle fees to taxpayers and no indictment!

=Armed gunmen live in Fed building FREE—water, electric, gas we pay for!

SCAMS

Teen ringing doorbell then shot by homeowner

Gun collector kills wife over washing then two others; own son kills him. OK?

GM claims airbags not designed to protect us in head-on with trees in Bristow OK.

TX girl “everyone like” killed stopped at light in drive-by shooting.

Wheaton College to fire a professor for writing Muslims and Christians have same God. 

44 percent of lottery winners spend all their winnings in five years, study says.

Clive “refused pay fees” Bundy’s son leads sit-in over federal crime of OR rancher. Son    has $530,000 federal loan for his truck maintenance firm which he isn’t running.

            Clive has still not paid his $1million for cattle grazing. No Jail, No Justice.

IF ‘MILITIA’ was black would Police Stand By as Armed ‘Militia’ Takes Fed Building?

            What did they do to the Black Panther Party?

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Washington 'asks' Wall Street to stop ripping us off

Regulators tell Wall Street to stop “depleting our retirement savings.”

Advisers can keep their "conflicted" commissions, but it's time to stop harming clients by depleting their retirement savings, says the chairman of the Labor Department's hearings on its proposed fiduciary rule. "We are absolutely not banning commissions," he says, a day after the hearings concluded. "We just want everyone who is working on retirement accounts to be acting as fiduciaries." Fiduciaries are legally bound to put their clients' best interests before their own when providing financial advice.

   Earn 11% not 3.69% under advisor: http://www.amazon.com/Earn-11-NOT 3-On-Investments/dp/1502412187

Citi may owe you money for misleading you—no one goes to jail

Citi mislead you about a ASTA/MAT fund and the Falcon fund by claiming they were “safe,” “low-risk” and “suitable” for traditional bond investors.

Brokers/advisors should never use the words “safe” “low-risk” or “suitable” without written proof from the owners of the firm/bank/fund. Avoid the Pimps!

http://www.amazon.com/The-Pimps-Wall-Street-middlemen/dp/151525254X

Can regulators control former bosses?

The Federal Reserve Bank of Dallas has named Robert Steven Kaplan, a former Goldman Sachs executive as president.

This is a revolving door—lunch with your old buddies at our expense?

Farmers kill 500,000 cows so they can raise milk prices?

Most of the food we eat is produced and controlled by just 4 “farmers.” By a 1922 law, they can band together to market products and demand “fair” prices. Agribusiness has purchased most farmland and receives $956 Billion in subsidies (our taxes) to grow or not grow depending on “incentives.” These gifts are from our “representatives” who receive cash to continue the myth of the American farmer plowing his/her 200 acres 18 hours a day. Actually many of our “reps” receive $ millions themselves.  Sweet deal!

Plague from flees at Yellowstone

A second tourist who had been visiting California’s Yosemite National Park has been diagnosed with plague. A visitor from Georgia got tested after hearing that a camp ground had been closed to spray pesticides to kill fleas that carry plague.

What is your hospital’s rank for care you need?

Mayo tops the list for many care categories. What about yours?

How can you protect someone you are taking care of?

As a caregiver, the Office for Older Americans has put out guidelines for Managing Other People’s Money. You will learn how to protect them from scams and bad financial advice. How do you maintain communication with their family members?

Who will help you when you need it?

America’s real reality TV show: 2016 election—“you just can’t make this stuff up”

Trump to end citizenship as defined in the Constitution: citizenship granted to “all persons born or naturalized in the United States.” 14^th Amndt forbids states from denying any person "life, liberty or property, without due process of law" or to "deny to any person within its jurisdiction the equal protection of the laws.” Congress has failed to end “birthright citizenship” many times. Supremes might revive racist Dred Scott for GOP!

Boston thugs say they were inspired by Trump to beat up homeless “Hispanic.” 1938?

Is Trump a citizen? Friedrich Drumpf emigrated from Germany.

Carson wants to reverse 14^th Amendment too—all people born in America to foreigners lose citizenship. Is Carson a citizen?

Rubio and Jindal were born in US to non-Americans. Cruz is Cuban born in Canada.

Guess that leaves the American Indians to reclaim their land! Ms Liberty back to Paris?

Christie pays for his campaign with PA contracts—No bid contracts to his friends

Christie deleted text messages about Bridgegate. Claimed not know what staff did.

Walker wants Congress to repeal ObamaCare again! 54 times so far; to get elected?

Kasich will close all teachers' lounges in schools across the country. De-fund schools?

GoP promises no regulations—China explosions had no regulations either.

RubioCare will reduce cost AND coverage for all but wealthy.

It’s getting hotter, despite what GOP says

July saw the highest average temperatures since record-keeping began -- globally, not just in the United States -- the National Oceanic and Atmospheric Administration reported Thursday

Is the 529 college savings plan better than credits deducted from your taxes?

If your joint income is under $160,000 you may receive a greater benefit by taking the tax credit up to $2,500 than by avoiding taxes on your 529 gains. (Tax on gain of 7% on $30,000 is only $525 in 25%-bracket.) Usually the credits are more valuable than the tax savings from a 529 distribution. Plus, 40% of the credit (up to $1,000) is refundable. When you use the 529 for any educational expense, you have to pay tax (but not penalties) on at least part of the money you withdrew from the plan in the previous tax year. Help from grandma’s 529 may hurt a child’s aid calculation in the next year.

Best plan: Obama’s proposal to skip the cost for any child going to college.  

CA valley sinking 13 inches in 1 year—infrastructure destroyed

Sucking water underground to grow crops may end growing before the usage regs slow it in 20 years in the San Joaquin Valley.

SCAMS

We are still wasting $8 million per HOUR we don’t have in Iraq/Afghan/Ukraine.

America needs to take care of American’s needs FIRST!

Rebuild America Act: a five-year plan would invest $1 trillion and create or maintain at least 13 million decent-paying jobs—Senate Budget Committee but GOP says no.

If you get a letter from the IRS, hackers may have stolen your data from IRS

“The IRS will begin mailing letters in the next few days to about 220,000 taxpayers where there were instances of possible or potential access to taxpayer information.” IRS is offering free credit monitoring services and a program that assigns them a special ID number that they must use to file their tax returns.

Edward Jones broker caught overcharging for munis—no jail time

Edward Jones has agreed to pay more than $20 million to settle SEC charges that it overpriced new issues of municipal bonds. “Because current rules do not require dealers to disclose markups on municipal bonds, investors receive very little information about their dealer’s compensation in municipal bonds.” Stina Wishman, Muni head, did not go to jail.

Steven Covey, Edwin Lichtig, and Rex Hofelter as Pension Funding, and Pension Income, caught deceiving consumers about the costs and risks of their pension advance loans. They gave lump-sum cash advances for agreeing to redirect all or part of their pension payments over a period of eight years.  NO JAIL TIME

Jacob Keith Cooper caught in fraud but no jail

Cooper, Total Wealth Management, had $90.2 million from clients and much of that money was lost. He got fees and kickbacks from the funds he was putting their money into. Regulators fined him but no jail time.

LA owes you money—overcharged for water, really?

The Los Angeles Department of Water and Power would credit or refund tens of millions of dollars to customers who were overbilled during the botched rollout of a new billing system. Not even fired supervisor.

Springstone caught! NO jail time

Springstone Financial was ordered to provide $700,000 in relief to victims of deceptive credit enrollment tactics. Many consumers who signed up for Springstone’s deferred-interest loan product at dental offices to pay for dental work were led to believe that the product was interest free. In fact, interest accrued from the date of the consumer’s purchase and was charged if the balance was not paid in full before the promotional period ended. Approximately 3,200 consumers who signed up for the product ultimately were charged and paid deferred interest.

State Farm sued for using “junkyard” parts to fix cars—no jail charge.

State Farm steered their customers to the company's preferred repair shops, which sometimes use "junkyard," "knock-off" or "after-market" parts instead of those provided by the manufacturer. The result can compromise safety, as well as aesthetics. 

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Will you inherit $11 million Tax-FREE?

Will you inherit over an $11 million estate Tax-FREE?

Are you one of the lucky families that will inherit over $11 million estate tax-FREE?

Our Congress just voted to give a BIG tax break to the 5,000 wealthiest families. Repeal of the estate tax would mean that the wealthy with over $11 million can create a family dynasty. None of these wealthy people works on a farm or would lose their farm if Obama vetoes the bill. We would lose $300 Billion in taxes and we must make up. The 5,000 would still have $ millions after state inheritance tax in some states.

If you don’t have over $11 million, use your IRS-approved Tax-FREE account: http://www.amazon.com/Working-Millionaire-Tax-FREE-Self-insure-Self-fund/dp/1460945484

You can create a legacy for your family that is NEVER taxed

Your heirs have the option to keep building your legacy for another generation. They can either roll your Roth IRA into their own Roth IRA or cash out the account without penalty regardless of their age. Your beneficiary can transfer your non-taxable Roth IRA into their own account, if they do not need the money for retirement. They can then designate the account for their beneficiary. This can be repeated for each generation. If any heir doesn’t do the transfer, your account needs to be distributed within five years of the death or paid out in equal amounts over their lifetime. 

http://www.amazon.com/Lets-Do-The-Numbers-Retirement/dp/1502775522

Wealthy avoid taxes by NOT working

If you work, you pay taxes before you can buy food, housing or anything else. Not so with the wealthy. Look back to the 2011 Romney tax return shared by the candidate. Romney reported NO earned income. He actually paid more tax than required so that he could claim he was not one of the “47% of Americans who pay no income taxes. He called us “victims” who feel entitled to government handouts.” But we pay 33% on average—more than double his 14% rate.

Congress has reversed the American progressive tax system. The wealthy pay a smaller percentage of their income than we do—14% vs 32%.

Pay your fair share: http://www.amazon.com/Tax-Shelter-Americans/dp/1500426520

Americans   

Is an HSA right for you?

A Health Savings Account is tax-FREE money when it is combined with a high-deductible health plan. The IRS defines HDHP as an annual deductible of at least $1,250 per person or $2,500 family. Your HSA is deductible even if you don't itemize deductions. The HSA is great if you don’t have high health costs but a large deductible can prevent you from getting the care you need. You can write off $3,350 ($6,650 family) in HSA contributions on your federal income tax for 2015, plus a $1,000 catch-up if you're 55 or over. HSA balances roll over year to year so you could earn interest. Unlike an HSA, you must use an FSA by yearend or lose it.

Is Free File tax prep right for you?

The number of taxpayers filing self-prepared returns increased nearly 6 percent by the end of February according to the IRS. It has authorized a number of online software firms to provide FREE tax prep help at http://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free. The cost of commercial tax prep has increased with new ACA forms added this year so you can save up to $500. And there are still organizations that can help seniors and non-computer users. AARP offers in-person FREE file: http://www.aarp.org/applications/VMISLocator/taxAideLocations.action

Will the IRS keep your refund?

You may find a hole in your bank account if you were spending your tax refund before it came. The IRS can take it for several “worthy” causes: Delinquent student loans, ObamaCare penalty and/or subsidy, past-due state income tax, past-due child support, etc. The Treasury's Bureau of Fiscal Service, which actually issues refund checks, will inform you by letter of the dirty details. If they made a mistake, dispute it. Hey, you never know.

You can turn your IRA required distribution into TAX-FREE money

Many people work after age 67—the SS retirement age—and by age 71 are receiving mandatory distributions from their IRAs, 401k, 403b rollovers, and other pensions. These retirement funds were never taxed so Uncle Sam wants to be paid. You can pay it and then never pay tax on the earnings again. If you don’t need the money right now. You can send your RMD, as it is called, to your low-cost mutual fund inside a Roth IRA. When you need the money later, it and its earnings will be TAX-FREE. This will lower the income taxes on your other taxable accounts and Social Security benefits. You pay less tax overall with Tax-FREE income.

http://www.amazon.com/How-Retire-Tax-FREE-Income-increases/dp/1484156951

GOP crazies

America’s future looks grim using the just-passed GOP budget blueprint:

Military spending increase to $612 billion so we can prop up 3 Middle East countries; and Japan, Germany and S. Korea don’t have to pay for their own defense departments.

CUT $431 billion from Medicare. Convert seniors to voucher-like program.

CUT $236 billion from the budgets of non-defense agencies—fewer people services.

CUT $1 trillion from food stamps and welfare and repeal of the Affordable Care Act.

CUT Medicaid $913 billion. Convert to state block grants to shift cost to states.

37 million people would lose health insurance, doubling the ranks of the uninsured.

Obama says “failure to invest in education, infrastructure, research and national defense.”

McCain says “not legitimate budgeting.”

Ken Buck, (R) CO says “It’s all hooey.”

 “I don’t know anyone who believes we’re going to balance the budget in 10 years.”

GOP President-to-be claims he is Hispanic to gain votes or impress Miamians?

Jeb Bush admitted Monday that he made a “mistake” in 2009 when he listed his ethnicity in a Miami-Dade County voter-registration form as “Hispanic.” The likely 2016 Republican presidential contender is, obviously, not Hispanic. How can you make a “mistake” since we answer “race/ethnicity” all the time? He did on March 6, 2009. Does Bush senior know Mrs Bush had a Hispanic son?

Can we see Jeb’s birth certificate? Is this another “oops, I forgot” GOP moment? Did he serve in the “National Guard” like W claims?

NJ Gov gives Exxon a break

Master ‘negotiator’ Chris Christie accepts only $225 M instead of $9 Billion and then uses the money to fill his budget gap and still can’t pay promised pension bill. Is this how the GOP will run the government? He is losing his shouting match in the polls.

74% of us have never calculated our monthly retirement needs

Also, 51 percent of retirees have never tried to determine if their current savings will be enough to last through retirement – though 39 percent assume what they have will not last 20 years – grim statistics indeed.

You can have more income than you think: http://www.amazon.com/Lets-Do-The-Numbers-Retirement/dp/1502775522

Do you know what you pay your broker/advisor?

A significant number of investors are in the dark about the fees they pay brokers, according to a new survey by a state regulator association. While most brokers/advisors charge annual fees to manage accounts, one-third of customers aren’t aware of the expenses, according to the survey by NASAA. The industry makes it hard to find the costs because they take as much as 63% of our retirement money in fees.

Wealth Without Wall Street: http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137

Long-term care insurance at risk

Genworth is weighing a breakup after steep losses on policies covering long- term medical care. GE is dumping its financial units so policy owners must contend with rising premiums and underwriting standards. Current owners may have some protection from state insurance funds. Future owners may be better off using alternatives.

Consider the alternatives: http://www.amazon.com/Long-term-Care-Insurance-Updated-Edition/dp/148274001X

Students lose coverage while in school

Some universities that provide health insurance to their students are stopping the practice, as they say the Affordable Care Act’s minimal essential health benefits requirements have led to unsustainable cost increases. Those that remain are turning to their brokers to determine the best way to continue offering coverage to their students.

SCAMS           Why are we still paying $700 Billion a year for WWII deployments? That is 27 cents of each dollar in taxes—the largest part of our money—and we aren’t even at war. We could pay off our debts and fix our schools, roads and bridges!

We are paying for 164,253 of our active-duty armed personnel to be in 150 countries around the world. We have about 50,000 in Japan and 50,000 in Germany.

Are we preparing for WWII again? There are 1,208,083^[1] armed personnel in the United States. Our taxes pay for about HALF of the WORLD’s military expenditures every year. We have wasted $398.6 billion so far on the F-35 program—they can’t fly safely.

We just can’t afford to pay for everyone else’s defenses anymore.

Japan, Germany and S. Korea can pay to defend themselves.

The War on Terror requires SEALS’ attacks on top terrorists at their homes. Iraq proved converting a nation to Western-style republic doesn’t work. The troops we trained ran away. We are wasting $4 billion a year on Afgan tribal rivalries; paying ransom to Al Qaeda; supporting corruption with our money.

LPL Accused Of Improper REIT Sales By NH Regulators

LPL settled a similar case with the FIRA paying $950,000 for supervisory lapses in the sale of direct investments. In December 2012, LPL paid $2.6 million to settle a Massachusetts case involving improper sale of nontraded REITs. Last year, LPL’s top executives saw their bonuses drop, due in part to the adverse impact of regulatory charges. No one was fired or jailed. Will they do it again?

Wall St Banks need bailout by US for bets on oil prices

The same ‘players’ insured the oil drillers that prices would not fall. Now they must pay $26 billion. When they claim they nave no money, we will pay because Congress lets banks gamble with our money.

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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