Your Unbiased Advisor: convert IRA

Showing posts with label convert IRA. Show all posts

Friday, September 11, 2020

How can you leave more to your kids?

GOP killed the “stretch” IRA that allowed us to leave our unused retirement money to our kids. The ‘stretch’ allowed them to take the money out over their lifetimes. GOP needed to ‘pay for’ an immediate tax bonus to the wealthy. So now our kids will need to pay tax on the whole IRA amount within 10 years after our death.

What can we do now? We still have the tax-FREE Roth IRA conversion to consider. This requires us to pay tax before we die. We can do it in chunks so it can be manageable. Other options: expensive life insurance, stepped up asset, gift to 529 college account, gift tuition, gift cash, and charitable gift annuity.

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

A balanced fund may be your best bet in a storm

We are impressed by a fund that has lasted 50 years producing 9.7% per year with few bad years. This fund has 65% bonds and is actively managed. How many mutual funds have been successful for that long? I guess less than a handful. A recent study showed that carrying a portfolio of a higher stock ratio may not provide higher returns. It does increase the volatility. For retirees and those who see hard times ahead, this may be the place to be for now. Vanguard is famous for index funds but John Bogle, the founder, brought this one from his former employer to Vanguard for good reason: quality, integrity and stewardship.

One of the Top Ten: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

6 essentials of auto claim reports

No matter how trivial your accident, be smart. Protect yourself from unseen damage/hidden injuries by making a report right away. Think like a lawyer: the other person’s lawyer. First, report asap. Later their lawyer can’t say “They aren’t really hurt since didn’t report for weeks.” Second, take pictures of condition, road, weather, etc. “Damage not done in accident.” Third, document your loss completely. “There was no laptop and camera in the car at the time of accident.” Fourth, get diagnosis of your own health damage. “They said they were fine when I talked to them.” Fifth, answer questions truthfully. “They couldn’t have had son driving since he was at football practice.” Sixth, stick to facts: don’t offer extra info to other side. “They told the adjuster they had been driving for hours.” Finally, don’t try to outsmart the folks who do claims everyday. Lower your rate by asking for every discount with your new policy.

Shop around: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

Did you leave money with a bank, utility, landlord, IRS or employer?

Millions of folks are hurting for money now. It is worth your time to check all your past deposits for money left by mistake. For instance, I found $450 at my parents’ bank after they passed. As executor I went through all their stuff and found money they forgot about. Since it was in a CD earning little interest, I distributed it to my brothers and me. You can pay to have a firm search for you but try going to the state treasurer for the states you have lived in first. Most states make institutions give the unclaimed funds to its treasurer after a number of years. Florida says 1 in 5 of us have left money somewhere. The federal government also tracks unclaimed property such as tax refunds, pension funds, and unredeemed savings bonds that are no longer earning interest. Unfortunately, there is no central database for locating all forgotten funds. A good place to start your search for federal unclaimed property is the IRS. You’ll find important information on how to claim forgotten funds from the IRS here. Also Savings Bonds stop earning interest so you need to cash them at your bank. I found 3 sitting in a desk drawer.

Save on all your accounts: https://www.amazon.com/Stop-wasting-3000-every-year/dp/146108394X

Why costs of our investments matter

What happens if we pay 0.04% or $4 vs 2% or $200 a year on our $10,000 investment over our working years? We can give away up to 63% of what we could have had. If our investments are focused on growth, we might end up with $740,961 instead of $1,243,368. That assumes we invest $3,000 a year for 35 years in a stock fund. If our investments are focused more conservatively, we might end up with $185,854 instead of $357,958. There will be a big difference in our retirement income since inflation will take its toll on the lesser amounts over our possible thirty-year stretch. This does not include the effects of cuts in Social Security benefits and higher health care costs.

Be prepared: https://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

Did your advisor steer you to that bad fund because of free meals?

Bank of America just announced that the bank's nearly 17,900 advisors can no longer accept free golf games or many meals from product and service providers. Yes, the secret to Wall Street selling success is OUT. I remember being told early on that “products are sold, not bought.” I learned quickly in my career that we were to push certain products so we could go to the Caribbean, golfing in Naples, and casinos paid by vendors. Products with higher fees and lower benefits had to be sold because the firm needed revenue. This is why the industry paid to have Trump reverse Obama’s fiduciary rule as soon as he got to Washington. Unfortunately, you may be stuck with a bad fund and we doubt that those BoA advisors aren’t going to get “comped” somehow for sales of less than the best.

Buy the best: https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275

Why is Vanguard Group eating Wall Street’s lunch?

Vanguard Total Stock Market Fund has grown by $200 billion since March and is on track to cross the $1 trillion mark in December. Of the world’s top 10 mutual funds, why are they all passive index funds except one? Only one is actively managed by Wall Street gurus. Vanguard funds are owned by us—its retail investors. There are no owners like Fidelity’s Johnson family—one of the wealthiest in the world. John Bogel, founder believed in ‘stewardship’ of other people’s money—opposite of the goal of multi-million dollar salaries/fees. If the stock market provides 10-12% a year over time, we get to keep all of it. We don’t give 2% to those who don’t take the risks we do. Investing is about being rewarded for entrusting our money to profitable companies, not helping the middlemen become rich. Some investors think hedge funds can beat the market and they do for a short time. But they can lose money as quickly as they gain it.

We took the risks: https://www.amazon.com/Pimps-Wall-Street-money-middlemen/dp/151525254X

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

Like 1776, this period is a test of democracy—do we really want ‘low-IQ’ Mobster?

Philly DA: we have an “authoritarian dictator."

Dictator declares ‘war’ on blue states

Dictator on chaos: 300 million guns; 10 million AR

Dictator: “Why should I go to that cemetery? It’s filled with losers.”

Dictator: Taxpayers will pay my rape case damages

Dictator on killer virus: “I wanted to always play it down”

Dictator: Nobel ‘Peace’ Prize winner?

How Govt wastes our money: Congress gives 3.7 Trillion to the wealthy!

Today’s US news looks like a story about a heavily armed military in the Third World

Trump made workers poorer: most of us making $50,000 got $307 less in 2017 vs 2016

Folks making $200,000+ increased 20%; folks making $10 million+ increased 37%

The sharp decline in IRS auditing means tax cheating has become much less risky.

Folks making $1 million+ but paying NO income taxes soared 41% under new Trump tax

Wealthy take PPP business loans but never recall or rehire workers back: Wasted taxes

We are paying for Trump’s rape case expenses: How many more cases are there?

Stimulus payments will come closer to Nov 3: watch for celebration by Congress Nov

Stimulus payment paid to Austrians and others who used to work in US: Citizen got $0

Army wasted $ millions on ‘walking’ robot …because Pentagon saw Star Wars movie?

Trump’s Medicare head spends $6 million of our money to improve her personal image

SCAMS/SPINS:

Scam: Authentic virus contact tracers will never ask for your Social Security number

Newark NJ is model of virus suppression: tracing worked: 86% residents are minorities

PO head got job by using his employees to pay Trump for election: illegal, Mr Barr?

Record number rejected ballots ‘trump’s’ voting: signature match is purely subjective!

GOP in charge of counting votes: GA illustrates how Trump can call election “rigged”--not leave

Trump blocks mail-in ballots in NV, WI court delays mailing out so votes not counted

Trump asks trumpers to ‘pack’ polls: “Watch all the thieving and stealing and robbing they do.”

For votes Trump bans drilling in FL SC GA : cuts EPA rules/fines everywhere else

For votes Biden quietly assures Wall Street to continue to fleece us: “follow the money”

FBI theory: Trump as Putin’s Manchurian Candidate: POTUS motivated to help Putin destroy US

Trump admits lying about virus: kills hundreds of thousands: "I wanted to always play it down."

Scam: Beware of a text asking you to "confirm for delivery" for a late package. ID theft

Instacart DC caught taking $ millions in deceptive service fees

US Air Ducts DLM Services WA caught deceptive adverts/robos, fake reviews, $10 mil

Steven Rodemer CO caught stealing $451,889 from client; promised investments no jail

Hai Khoa Dang CT caught defrauding couple's $2.2 million promised conservative trades

Encore Capital CA Midland Funding failed provide borrowers with proof; 2^nd time; no jail time

API Recovery Solutions, Warner Location Services, etc caught deceptive debt collection

57 people caught stealing $175 million from the PPP virus program for small business

Josh Bellamy Jets caught $24 million scheme to defraud the PPP virus program

250,000 coronavirus cases have now been tied to the 10-day Sturgis Rally event

Advisors charging extra fees SEC warns: check confirms/statements: you take the risks!

UBS Plans Higher Fees To Push Rich Clients Out Of Cash: low interest=no revenue

PO continues to slow pharmacy order: patients (VA) panic when meds sit in PO:

President ‘United’ States mislead us into 200,000 deaths by waiving responsibility no jail

Recalls 203,000 Hyundai Santa Fe; 440,000 Kia Optima & Sorento 2013-15: engine fires

Vaccine not a cure-all for everyone: history shows not perfect or effective: 2021-2 masks

TurboTax caught misleading customers regarding free filing: tricked us into paying

Drug companies promise to make ‘good vaccine: same folks give us bad meds/high costs

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

Jobs

100 best jobs: salary matches skills—college needed for most; community college assoc.

Most workers say ‘retirement’ is NOT a full time job: 60% boomers keeping their jobs

Who owns your account now?

Cult membership knows no bounds: he would cancel sick brother’s insurance for a win

Cult leader knew thousands would die and mislead them: Jim Jones is shocked at 200,000

Cult of NJ white nationalism revives 1950s “Better red than dead” for “Better dead than red”

MassMutual’s retirement business to Empower: retirement services record-keeping assets

Miracle:

Tech helped blind person run NY City Marathon unassisted. Vibrates when off path

Judge tells Census to keep counting; don’t listen to Trump

Woodland Hills LA reached 121 degrees at about 1:30 p.m Sunday: highest ever

CA fires started when parents reveal the gender of their child: childbirth is miracle

Many in my family served/are serving this country and are NOT “suckers” Greater love hath no ..

Evil: leader of country knew thousands of citizens would die but tells them: “it will disappear”

We have lost Two-Thirds of our wildlife In 50 Years: species declined by an average of 68%

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

Friday, December 13, 2019

Financial industry BIG LIE

Many investors still believe their advisor broker or agent charges NOTHING. Among mutual fund investors, 32% believed they do not pay fees or expenses, according to new study. The survey showed that 46% of the participants mistakenly think that the past performance of an investment is a good indicator of future results. Since investing is not taught in school, the only source of information is the industry’s sales people. They have a vested interest in keep us dumb about investing and how they get paid just as doctors don’t tell patients they are paid to push certain drugs. And the industry has convinced us that we have enough information to make good decisions. Sites that offer contrary information about sale of financial products like BrokerCheck or Investor.gov are hardly used. Most investors don’t realize how much they pay for bad advice over their lifetimes. The average investor earned just 3.79% vs 11% from a low-cost market index fund and that over 30 years, they give up 63% of their potential earnings.

Avoid the BIG LIE: https://www.amazon.com/Lies-Financial-Advisors-Told-alternatives/dp/1478281545

Do we really need an advisor now?

‘Next Decade Will Bring the Demise of Hundreds of Advisory Firms.’ This was the topic of one recent advisor conference. The industry has changed. Commissions are lower or $0. Low-cost fund firm Vanguard is growing faster than any other fund firm. Brokerage firms are bought by banks or consolidating. Many firms are eliminating smaller accounts. Their wealthy clients are going into art, private debt, and hard assets. Our life stages have changed and so we will need ‘lifestyle counselors.’ Technology has changed the way we invest and manage our money. We don’t need a sales person to tell us how to make money. Most people understand that costs are important in the long run to retire. Over time, whether we use a 401k or advisor, we waste up to 63% of our total potential accumulations in fees, commissions, trading, timing schemes. Instead, we can answer our own questions of how to invest and manage money.

We use Warren Buffett as our money coach: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

Are the new leveraged and inverse exchange-traded funds right for you?

Brokerage firms are proposing that the SEC allow them to sell the “riskiest” ETFs. However, some of the ETF industry's most controversial products come with a caveat that could doom them to irrelevance: brokers must document whether investors understand their risks. Since many traders love the potential of huge gains, wirehouses have a huge potential market of buyers. But how will they prove we understand we could lose more than we bet? Leveraged products use derivatives to boost their returns or move in the opposite direction to their benchmarks. While these strategies can mean big bucks, they can also amplify losses, especially for the less experienced ‘players.’ Historically, the average investor earns only 3.79% instead of the market index return of 11% because they lose as much as they gain. As one analyst put it: "Anything new that is coming in at the margins will likely aim for something more esoteric, more gimmicky." These products have been banned for 10 years for a reason. Casinos offer thrills for less.

Earn 11% not 3.79%: https://www.amazon.com/Win-Investment-War-Earn-11-Not-3/dp/1522916369

Our incomes barely budged in 50 years

The average real (after inflation) annual income after taxes and transfers has edged up a meager $8,000 since 1970, rising from just over $19,000 to just over $27,000 in 2018. By contrast, among the top 1 percent of earners, average income even after taxes and transfers has tripled since 1970, rising by more than $800,000, from just over $300,000 to over $1 million in 2018. This is why we can’t afford a decent retirement fund, college for the kids, or even a home, in recent years. The money we earned for the American Dream got sent up the line to the bosses and owners: the top .01 % has increased their incomes nearly sevenfold, from just over $3.5 million to over $24 million. Their taxes went down to 17% while ours went up to 33%. The wealthy have screwed us all and the Dem’s plans to raise taxes on income or wealth will fail just like in the past.

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

Are the new mobile trading apps right for you?

Apps from Charles Schwab, Wells Fargo and Edward Jones all earned high marks from users relative to the rest of the brokerage industry according to J.D. Power. Our question: do we earn more money by having the ability to trade securities at our finger tips? Fast trading is usually what leads to greater losses over greater gains. With computer trading and order execution by full-time geeks, is it really possible to beat Wall Street workers? Impulse buying is a marketing tool of the grocery industry. Historically most us fail to beat the lowly market index. Warren Buffett recently proved this again. Trading by click could be the equivalent to playing the lottery every week—spend $1,000 win $750.

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

What is a ‘safe’ investment strategy?

In one day, I received three totally different messages from so-called “professional” Wall Streeters on the future of my investments. It’s no wonder we investors are always paying the WRONG advisor. Thing is, NONE of them know what will happen. When I worked in the industry, the expensive suits on the top floor had to come up with new reasons for our clients to buy or sell every week. As one veteran confessed, “we don’t make any money unless there is activity.” So Citi says stocks. Bloomberg says risks ahead. One says Recession: ‘Get into cash.’ Another says No recession. Whatever your advisor recommends doesn’t matter by next month so the best strategy is to stay in a diversified portfolio like the top 10 from low-cost Vanguard and don’t pay fees for ‘advice’ (guessing is more accurate). Hey, you are the one taking all the risks and paying the fees, charges, commissions.

Earn 11% not 3.79%: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

Convert your IRA to a Roth and leave a TAX FREE legacy

When you take out IRA money after you reach 70 ½ years, you can pay tax as you are required to do and pop the amount up to $7,000 into your Roth IRA with a child or grandchild as beneficiary. It grows Tax FREE until you pass and becomes your legacy without the taxes you, nor they, pay. You can even change the owner later on so this cash build up over the years is not counted in your estate. Since you are forced to take this money out as your RMD each year, you create an estate for them without ANY tax to them: Perfect reminder of your generosity.

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

Best holiday gift for your young person—lasts a lifetime

Your child or grandchild could have a $2,000,000 Wealth Reserve providing tax-FREE income later in life. Your annual or monthly gift could provide your favorite child with real “social security:” their own tax-FREE money fund. You help them take advantage of the miracle of compounding. Put $250 a month ($3,000 a year) in a low-cost stock index fund earning 11% and watch it explode: moneychimp.com/calculator/compound_interest_calculator.htm. Your gift becomes a $1-2,000,000 Wealth Reserve. You could reduce your taxable estate by up to $500,000 for each child. Your child or grandchild may NEVER have to pay taxes on the money either if you use a Roth IRA. Social Security will exhaust its reserve fund in about 2034, according to 2018 projections. Every year you delay helping them with a gift costs your favorite kid $100,000 later.

Start giving this holiday: https://www.amazon.com/Give-your-Child-Grandchild-2000000-Lifetime/dp/1456433105

Is ‘bundling’ auto and home insurance right for you?

First, since insurance companies like Progressive use this as a marketing tool, you need to check it out for your situation. You know it is a great deal for insurers since they push it. Second, they claim to save you money on the total premium but this can be bad for you. Their ‘bundle’ of policies may not cover what you need. Example: I had an oil tank in the ground for oil-fired steam. When I tried to bundle with my auto, all insurers refused. My home insurer grandfathered my coverage from a previous home and I have over 40 years with them. Third, if you have a lot of claims on your home and a perfect driving record, one ‘rap sheet’ will hurt your total premium. Better look for separate coverage. Fourth, insurers count your credit report with different weights. Bad credit means bad driving and home care behavior to some of them. Shop separately to compare your best deal. Remember that insurers are NOT your friends—they hate paying claims.

Shop every two years for auto: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

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

Like 1776, this period is a test of democracy—do we really want ‘low-IQ’ Mobster?

Bulling a 16 year old because she won and he didn’t

Trump is NOT above the law. Trump can’t obstruct justice or use his position to enrich himself. Big Con

Trump calls FBI ‘scum’ for investigating his mob’s contacts with Russians.

How Govt wastes our money: Congress spends another 1.7 Trillion we don’t have!

Live in TX? Trump is going to take your home for WALL: no 2^nd Amndmnt for homes.

Judge tells Trump NO, can’t build WALL with military money for other purpose.

Wasted $133 billion constructing and then bombing Afghanistan: created corruption?

Boeing and FAA ignored clear signs 737 was dangerous: self-inspecting kills people

What kind of government puts children in cages separated from their parents?