Combat inflation: save $3,000 a year on financials you use now!

 

Combat inflation: save $3,000 a year on financials you use

A positive way to fight inflation is to stop wasting $3,000 or more on fees, commissions, and charges for overpriced financial products and services. One of the greatest amounts we waste is paying someone to manage our investments. We can lose 63% of our earnings to Wall Street. It is a fact that no manager has been able to beat the market returns (11%) over time. Most of us don’t realize that the other areas of wasted income are in recurring charges. If we pay the minimum interest on our $10,050 average credit card debt, it actually costs us over $56,000 over time for that $10,050. If the minimum payment is $160 a month, we pay $25,080 over time at 25% interest. Plus, because we are wasting $160 a month for the debt, we are giving up about $37,000 in investment earnings during those 10 years. If we are overpaying $300 for insurance (auto home life etc) every year, we are wasting at least $216,974 over time. Using an annuity to create a stream of income payments in return for a lump sum costs 12-15% of our hard-earned nest egg. There are many more ways to stop throwing money away.

https://www.amazon.com/Tricks-Trade-Mutual-Insurance-Annuities/dp/1535497289/

 

 

What is your spending plan now?

With inflation running 8.6%, gasoline over $5 and rents up 15-20%, we need to rely on our spending plan more than ever. For those of us who are on a fixed income or cannot find a higher-paying job just now, rising prices will gut our budget this year. Some of us have already cut out the cable sports and streaming packages, the regular monthly outing, and our annual vacation trip. We have delayed all major purchases even though we need a new fence and roof. We are looking at our regular food buying list for stuff we can do without. We now pay attention to sales. We were shocked to read that our Social Security benefits will be cut 2034. However, one Senator has introduced a bill to shore up the SS Trust Fund for our future. The Social Security 2100 bill, which applies the payroll tax to earnings above $400,000, could be debated soon. I did not know that those who earn over $147,000 pay nothing to SS Trust on their higher earnings. The wealthy that live on dividends and capital gains pay nothing on those either. Even small business owners get a big break on taxes. We need to plan how to divert our current spending back into investing in case the do-nothing Congress decides to cut, not raise taxes.

https://www.amazon.com/Your-Spending-Plan-insurance-investments/dp/1482723123

 

Help your child, grandchild get started on a $1 million fund

They will need a million dollars since inflation can reduce the buying power by 50% in just 20 years. Since common stocks have the best history of keeping ahead of inflation, a broad portfolio has the best chance of delivering steady returns. Since 1871 a basket of stocks (dividends reinvested) has provided 11% returns. Ordinary inflation is 3% not 8.6%, so right now stocks are cheap. If you show your family that an 11% long-term return can turn $250 a month into $1,000,000 in about 34 years, they will not be try to beat the market with fast trades through a $0 commission broker. Show them the math: $250 per month for 34 years costs $102,000 in contributions. They earn $898,000 in dividends and capital gains. If they use their special IRS tax-FREE account, they avoid about $225,000 in taxes when they take their money out to live on. Remind them that Warren Buffett bet a million dollars on a low-cost market index fund to beat 5 super stock pickers. Buffett recommends you use the Vanguard 500 Index Fund. Why? You can give up 63% of your returns when you use a broker. And if they trade to beat the market they may end up with the historical broker account average of 3.79% not 11% a year. That’s $208,865 instead of $1,021,768 after 34 years.

https://www.amazon.com/Give-your-child-leg-up-manage/dp/1096505355

 

Panic selling is NOT a strategy to deal with market drops

Warren Buffett is famous for advising NOT to sell when others panic: be “fearful when others are greedy, and greedy when others are fearful.” His advice is buy when others sell. That assumes we have extra cash to buy. If we don’t then we should hold on to what we have. Selling usually means taking a loss since the average price of an S&P 500 stock is now down 21%. Most investors miss the big gains in the market while trying to jump out and in at the right time. It is hard to be right twice. Looking back over the 20-year period from Jan. 1, 1999, to Dec. 31, 2018, if you missed the top 10 best days in the stock market, your overall return was cut in half. That's a significant difference for only 10 days over two decades! According to the J.P. Morgan study, six of the 10 best days occurred within two weeks of the 10 worst days. Example: The best day was Aug. 26, 2015 just two days after the worst day in the stock market that year. Most of us have a tendency to wait after a down day for a great day that exceeds the amount we lost. By waiting for your ‘bounce back’, you lose the gain. Every analyst that studies the market gyrations has found that market timing never works—even for experts. Just stay in: since 1871 the market’s rise/fall has been more positive than negative by 11%.

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

 

Retirement income: buy annuity or create future stream of payments?

When you are ready to receive income from your nest egg instead of buying more eggs, consider the options to replace a paycheck. First, calculate how much you will need to distribute from your tax-deferred accounts to meet IRS regulations. For new retirees, you must begin paying tax on your retirement dollars by April after age 72.  For most of us this means taking about 4% from the previous year’s balance of all our IRA, 401k, pensions, etc. Since most us must pay income tax on this amount recalculated each year, this provides the base income for our year. Add Social Security benefits to realize most people’s annual income. These amounts usually fulfill your minimum expense requirements. If you have significant other funds, you can create monthly income by giving a lump sum to an insurer. You can insure this fixed stream of money for life by paying an extra fee. For an additional fee, you can have the amount increased to match inflation’s effect on purchasing power. Under historical inflation of 3%, the annuity amount will buy about HALF the goods in about 20 years. With an annuity, you cannot cancel if you need your lump sum back. A better way to overcome inflation is to invest that lump sum in a balanced portfolio and have your mutual fund firm set up an automatic withdrawal amount to your bank. Over time your portfolio may earn an average of 11% beating inflation’s cut in purchasing power for the rest of your life.

Avoid insurer’s fees: https://www.amazon.com/Best-Annuity-Strategy-Income-Growth/dp/1497532019

 

 

 

?**********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 Dems

 

Trump had become “detached from reality”

 

Trump’s Supremes end personal rights except for weapons WMDs

 

 

Nov 8 2022 Trump’s “national revolution”

 

 

 

How Govt wastes our money:

Make sure coup instigators don’t try overthrow in 2024: dictator back

NM County's GOP commission refused to certify results of its primary: preview 2024

Coup-enablers GOP lawmakers sought presidential pardons for part in conspiracy.

Al Schmidt Philly vote count manager and family threatened by Trumpists

 

Trump lawyers broke law: Giuliani, Meadows, Gableman, Eastman, Project 65

 

Biden-Garland-committee gives Trump ‘Free Pass on crimes’: Pence not hanged by him

Special prosecutor: special crimes: treason, conspiracy to overthrow, anti-Constitution

 

GOP in position to block ’24 election certifications, change rules, litigate nullification

 

Gun “deal” does nothing about guns: Congress allows war weapons to kill kids

Gun background check liars not prosecuted: ATF not vigilant

 

Some states loosening gun regs after massacres: more guns w/o permit, training

OH machine gun solution: let teachers, not police, kill terrorists: 30 rnds in 30 sec

 

Biden: Big oil huge profits by creating shortage, charging more hurts Americans

We paid coal, oil, and natural gas firms $5.9 TRILLION in subsidies in 2020: enough?

Interest rates up cuts demand for home + new stuff; less demand, price falls, goods sit

 

SCAMS/SPINS:

Trump guilty: death threats against VP: ‘Pence “deserved” to be hanged’

Trump had a ‘seven-part plan’ to stop Biden government: 2024 plan

Former prosecutor: Trump guilty of treason by calling for attack on Congress

Trump raised $250 millions on voter fraud but spent on personal choices: illegal

 

Trump had become “detached from reality” insane? B Barr, former Trump lawyer.

 

Schwab caught false/misleading statements about the cash in robo-advisor fine millions

Western International caught selling illiquid bonds, improper for clients: fine

Christopher Burns GA caught Ponzi scheme promissory notes $12 million AWOL

 

Patrick Churchville RI caught Ponzi scheme high return fund $33 million 7yr jail

Southern Baptist caught hiding pastors/leaders accused of sex abuse: none go to trial

GEICO caught liable for car sex STD transmission: $5.2 million for ‘negligence’

 

Prevagen: caught false claims FDA: real science says 5 ways to stay “sharp”

Health care sharing ministry is not insurance: fake misleading sellers look real garbage

Golf greens caught wasting water in CA regions where no water: no fines

Teslas crash by themselves: you don’t need to drive: Autopilot shuts down before impact

 

Senior Citizens League estimates the Social Security cost-of-living adjustment: 8.6%

 

US tech firms supplying chips for Putin’s war on Ukraine: weapon chips banned

US is oil exporter: we don’t need Putin oil: companies raised prices to double profits

Bitcoin plunges below $23,000 as the crypto meltdown continues

 

Cruz trying to avoid indictment blames failed coup on FBI: Ray Epps off list for rioting

Terrorists arrested in Idaho: "They came to riot downtown" 

 

Jobs

Best time to look for another job: poll

Teachers to lose jobs in some states teaching about national holiday Juneteenth

 

Who owns your account now?

Revlon going bankrupt: debt, competition:

Consumer Reports 2022 Kia Niro Electric as the best electric car they’ve tested so far.

Discover’s “Online Privacy Protection” helps remove personal info from 10 websites

 

Inflation hedge: credit cards give bonus $200 to start: Citi, Bank America, Chase

WOW: Fed raised rates .75% but my credit card is already at 36%: better to use mafia

 

Miracles:

For RV: portable nuclear reactor ready by 2024: 1-5 MWe: “low environmental risk”

Dems outlive GOP: more liberal policies, laws, regulations associated better health outcomes

New therapy success leads to tailor immunotherapy drugs to attack specific tumors

Push button diabetes implant may help control therapy in body

 

Baseball: family sport or elite outing?: tickets $622 -12,000

Yellowstone closed first time in 34 years snow melts, floods: no roads, houses fall

Phoenix record temperature of 114 degrees and not even summer time.

Electric vehicles charge in mere minutes: not ready for prime time

Teen form groups to help teens deal with sex after states ban sex talk from classrooms

 

 

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

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

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!

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.

 

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/

 

 

Which financial advisor is best for you?

 

Which financial advisor is best for you?

Settling on an advisor or actually putting your hard-earned money in their hands is a difficult decision. A personal analogy might help you decide. My personal physician diagnosed my condition and prescribed a drug called Januvia. I went to the drugstore and found out that even with my expensive insurance, the drug would cost over $500 for 30 pills. I came home and searched the internet for an alternative that was recommended for the same condition. I confirmed with my doctor that I can try glipizide as a substitute. It worked. Glip costs only $3.19 not $523.18. Turns out many doctors get paid to make scripts for certain drugs and not the generics or low-cost alternatives. Financial advisors get paid extra for using certain ways to invest your money. As a former sales manager at financial firms, I made contracts based on these extras. We did not tell clients about Vanguard’s low-cost alternatives. If clients had done research they would have found that paying for brokerage extras over time would have robbed them of over 50% of their potential accumulations. The analogy fits: avoid paying for advisor’s ‘select portfolios’.

Pay less: keep more: https://www.amazon.com/Avoid-Scams-Brokers-Advisors-Sender/dp/1726328023

 

Lower your tax: We can continue to contribute to deductible IRAs

Previously, we were not allowed to continue making contributions to Traditional IRAs once we reached age 70½. But the SECURE Act removes this age limit, effective this year. This could be beneficial for the growing number of people who are working past age 70 since they can now continue making IRA contributions indefinitely, thus enhancing their long-term retirement financial security. They can also make non-deductible contributions to their Roth IRA which is never taxes later. On the other hand, distributions from traditional IRAs must begin when we reach 72 up from age 70 1/2. However, the new rule does not apply to those already older than 70 ½ or turned 70 ½ in 2019 (born on or before June 30, 1949). Those individuals must continue or begin taking RMDs under the old rule. The SECURE Act effectively eliminated stretch IRAs as an estate planning tool. Effective for deaths occurring after December 31, 2019, funds from inherited IRAs must now be fully withdrawn by beneficiaries within 10 years of the account owner’s death. Exceptions for spouse and disabled. See a professional. Make sure your preparer is not a scammer: https://www.irs.gov/tax-professionals/choosing-a-tax-professional. Use your refund to build a tax-FREE retirement fund.

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

 

Playing the hot stocks

One reader recently asked me about buying a stock that was being pushed by an online blog. He was referring to an advert to invest $1,000 in a company associated with the 5G telecom rollout. Citing the previous run-ups by Amazon, Apple et al, this stock picker promised the secret with a subscription to their periodical. First, this sounds like a pump and dump scheme. Second, the subscription may cost more than it is worth since there are no ‘sure things.’ Third, just because 5G is in the news does not mean that this one stock will rise in the future. Or maybe I should say, rise in the foreseeable future. Most large company stocks rise with time. This secret stock was probably not an ATT, Verizon or TMobile so we just don’t know. What is the answer: If you can afford to wager a $1,000, there is no reason not to bet this way. However, I think it is safe to say that you should not watch this ‘bet’ immediately like you would at the casino. After all, loaning your money to a company in hopes it will grow is not happening overnight. If you come back in a month or two and it has risen to YOUR price target, you should sell it. Gambling is fun as we see with those who made a fortune on GameStop. But remember, there are those who lost a fortune too.

Invest for growth long-term: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

 

Is using home equity for your emergency fund right for you?
Several readers have told us that they were prepared for the pandemic money shortfall by having a HELOC. Home Equity Line Of Credit is a low-interest alternative to running up a 27.49% credit card balance. The problem with a HELOC is that if the balance is not paid back, a lien may be placed against their home. On the other hand, HELOC loan amounts are never large amounts. Their bank will limit the loan to value percentage including the 1^st mortgage. Usually this is 80% so they may be able to afford $100,000 on a $700,000 home. Some loans have no closing costs with rates as low as 3.24%, depending on their credit score. Some lenders cut rates for existing customers who put their payments on automatic debit. Readers appreciate the fact that their emergency fund costs nothing and they do not have to maintain a savings balance earning less than 1%.

Prepare: https://www.amazon.com/Handling-Financial-Emergencies/dp/1537636707

 

 

Have tax forms; will file … for FREE

W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. If you have all your forms, file for FREE online. Usually filing your state return costs as little as $15 unless you buy the Pro helpline. Avoid $300-400 paid preparer fees—new IRS forms mean higher fees. Unemployment insurance is TAXABLE on the Federal income tax return; not on some state returns. Some states do not tax your SS and pension benefits. Retirees did not have to take their RMDs in 2020 so taxes may be less: it was a good time to convert IRA to Roth IRA for tax-FREE future. Unless you were self-employed, you can’t deduct home office expenses of working from home. Some states continue the health insurance mandate and penalty unless you have an exemption. Since the IRA contribution deduction has no age limit now, you may reduce your income/taxes by making a contribution of up to $7,000. The standard deduction went up to $12,400 single; $24,800 joint. Jan 15 last day to make 2020 estimated payments. You have to report your April/May and December/January stimulus payments even though they are not taxable. Some of us receive a bank credit; some a debit card; some a check. Even if you don’t have to file, you should file so scammers can’t use your SS number to mess up your IRS file. Tested E file software ratings. Efile Jan 15; IRS processing Feb 12.

E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

 

 

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

 

 

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

 

FBI quotes Terrorists: ‘shoot Pelosi ‘in the friggin’ brain'

 

‘Incitement to insurrection’ must be ‘high crime’ for impeachment

 

Two GOP parties: Marjorie Taylor Greene vs Adam Kinzinger

 

See how the impeachment trial of dictator 1649 creates democracy

 

 

Our ‘Truth and Reconciliation Commission’? 

 

 

 

How Govt wastes our money:

Vaccines sent to drug stores to stop death toll from reaching 500,000

GOP Senators against Biden’s cabinet pick illustrates Trump party leaders

2 protesting groups in FL: “But only the Black Lives Matter protesters were cited.” 

 

Catholic Church takes $3Billion PPP virus money: small businesses denied

Congress imprisoned behind fence until domestic terrorists/GOP helpers behind bars

 

SCAMS/SPINS:

Anti-vaccers are misleading us; easy way to fake messages

Vaccine scam: list of known and alleged coronavirus scams: See list

GOP passing state laws to limit/stop mail ballots so Dems can’t win in 2022.

 

Trump won some lawsuits simply by delay: legal strategies we can’t use

Instead of paying taxes on $916 million, Trump donates $10,577 ‘earned’ from foreigners

Trump right: GOP members vote illegally: his lawyer voted in GA but lives in SC

 

Domestic terrorist gets special food in jail: on diet of “shamanic belief system”

Domestic terrorist taking vacation after gov overthrow attempt failed: need better plan

Americans load up on guns maskless: against pandemic or civil war? Using new $1400?

 

GOP is a ‘very big tent’: “Everyone's invited”: terrorists, white extremists, Nazis, racists

“Loony lies and conspiracy theories are cancer for the Republican Party” but cancer OK.

 

Rep Greene recants: blames others for past lies; claims false QAnon epiphany: raises money

Trump will not defend himself or testify at trial: denies facts; denies Constitution

 

David Gentile GPB caught stealing $1.8 billion Ponzi-like fraud promised steady 8%

LuLaRoe caught taking millions in MLM pyramid scheme; fine $4.75 million; no jail

Product recalls for January: unsafe product to send back

Baby food made with arsenic, mercury other toxic metals: makers claim follow law!

 

Ford stops making F-150: workers laid off; no computer chips for ‘driver assist’ etc

 Run away Kyle Rittenhouse accused of killing two demonstrators; terrorists put up bail

 

IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.

IRS: Free special ID protection PIN goes on your return so scammers can’t take refund

IRS: Previous tax returns available online: https://www.irs.gov/individuals/get-transcript

 

Is it a scam?  Check AARP scamline 877.908.3360.

 

Check IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams

https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers

Check Social Security: https://blog.ssa.gov/

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

 

Jobs

Wind, nursing and solar lead “fastest-growing occupations” before pandemic: BLS

LA restaurants open for outdoor pleasures: no gathering watching TV together

How has the PPP program helped small businesses keep going?

 

Who owns your account now?

Your job gets credit for your virus paid leave

Fertilized egg loses lawsuit over who will be mom.

 

Miracles:

TWO separate Americas: millions go hungry while wealthy buy more mansions

Contract virus AFTER 2 vaccine shots: no symptoms but can spread to others

55.9 million doses distributed, only 6.7 million Americans have been fully vaccinated.

No one hurt: California is falling into the ocean as predicted years ago

 

Changes in our word usage may foretell later Alzheimer’s problems: early diagnosis?

MAGA: Vegetable seeds in high demand: Make America Growers Again: the new tissues

 

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/