Retirement budget: do a dry run now

 

Is Warren Buffett’s portfolio right for you?

Why does Buffett recommend buying and holding only two Vanguard funds for retirement? Is this strategy right for you too? In his letter to stockholders of his business, he wrote: "I believe the long-term results from this policy will be superior to those attained by most investors -- whether pension funds, institutions, or individuals -- who employ high-fee managers." Buffett credits “compounding” for his astounding investment success. So he advocates a low-cost index fund of the 500 largest companies as the best investment for most of us. He warns us against giving high-cost advisors our money since they can’t beat the index and their costs can take up to 63% of our potential accumulations. Nearly 92% of advisor funds have trailed the index of S&P 500 firms over the last 15 years. Over time, Vanguard’s 500 Index earned over 11% a year. That means your money doubles every 7 years. Your $250 per month contribution can provide you with $1 million in 35 years. Buffett proved his advice by beating a Wall Street guru with 5 hedge funds. Unless you are smarter than Buffett, Buffett’s way is right for you: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

 

What do you own if you own a 500 Index fund?

Why is a 500 index fund growing so much? The Vanguard 500 Index fund has grown at 30% over the last year, 16% over the last 3 years, and 16% over the last 5 and 10 years. This is very unusual. Historically this index has grown at 11% per year. Info tech is the main reason for this trend as you can see by the largest contributors to the index’s growth. These corporations make up 30% of the Vanguard 500 Index fund:

1          Microsoft Corp.

2          Apple Inc.

3          Alphabet Inc.

4          Amazon.com Inc.

5          Tesla Inc.

6          Meta Platforms Inc.

7          NVIDIA Corp.

8          Berkshire Hathaway Inc.

9          JPMorgan Chase & Co.

10        UnitedHealth Group Inc.

If you own the companies in the index, you own some of these companies and their gains and dividends. If you pay low-fees like Vanguard’s version at 0.04%, your account grows faster than if you pay 1-2% a year. You own a broad diversified part of the world stock market. Use Warren Buffett’s strategy "A very low-cost index is going to beat a majority of the amateur-managed money or professionally-managed money." 

Less you pay; more you earn: https://www.amazon.com/Warren-Buffett-Millionaire-money-snoring/dp/1508887381

 

Retirement budget: do a dry run now

What will you have to spend and what is your spending plan? Going on a journey like this one without a plan is asking for a disaster. You may need money to last 30 years—60 to 90—for at least one in your family. Stay ahead of inflation—the silent ‘killer.’ Unless you plan to work till you drop, a plan can help you succeed not just survive. If you began early enough you could have $2 million to spend without income taxes with the New American Retirement System. If not, you need to make a dry run now so you can make adjustments. You will need to make a Spending Plan for both of you. Estimate your Required Minimum Distributions from pensions and IRAs and how much tax you will have to pay. Find any old pensions and accounts you may have left behind.

You will need every penny. https://www.amazon.com/Your-Retirement-Budget-Investments-Income/dp/1483946487

 

Is a 401k annuity right for you?
Several mutual fund firms are offering an annuity guaranteed income from your 401k or 403b. Many workers have said they are interested in putting some of their retirement savings into an investment option that would guarantee them monthly income when they retire and help ensure they don’t outlive their savings. This makes sense for many since the guaranteed pensions of the past are gone. Employers do not want the risk of maintaining a pension payout for their employees for life. Recent law has reduced the fiduciary risk for employers and made it easier for them to provide annuities as a retirement plan distribution option. This may be a great option for you if you have other money invested to help defeat inflation during retirement. However, the monthly income guarantee comes at a cost. Firms take 1-3% annual fees to provide “monthly income you can’t outlive.” But the amount is cut in HALF by inflation over time. There are less expensive ways to obtain a “steady, reliable stream of income to help cover your expenses in retirement.” Be careful. Annuities are not cancelable.

Look at all options first: 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

 

“The Coup is ongoing”

 

Vigilantism backstop

 

GOP: ”Be armed, be dangerous and be moral."?

 

GOP paying Trump’s defense

 

How Govt wastes our money:

Biden lets corporate taxes fall 21% to 15%; $80,000 SALT deductions for wealthy

Wealthy are outbidding each other for private airplanes: Biden gives them the money

Down HALF: IRS collections from estate tax dive from $20 billion to $9 B: GOP tax cuts

 

Manchin dictates what he wants in final Dem spending: parent help cut,

TX pays for Trump’s audit even though he won TX: TX GOP finally admits Biden won

 

 

SCAMS/SPINS:

WI: you can legally shoot three people during a protest and get off scot-free.

CO police: “too many guns are in the hands of too many students”: kids with guns!

Covid could take baby without mom’s vax: stillbirths likely for infected moms

 

Killing in “self defense” after you start the fight with weapons: victims don’t have a case

Children are allowed to carry loaded 30-round AR guns in WI streets: if over ‘foot’ long

What is with WI? driver kills 5 defenseless kids & marchers with SUV

 

Kenny Wells: illegally bringing/shooting his weapon in public: will this guy get off too?

 

Mesa County, CO clerk, swept by conspiracy theories, compromised election equipment

 

More Covid deaths in 2021 than 2020: more infections; fewer vax

FL gov no mask mandate gives parents no school choice: FL government like fed

 

Ron Molo IL caught stealing $800,000 using fake account: promised tax-free income

Evan & Avi Schottenstein FL caught abusing mother and accounts: failed fiduciary duty

Gregg Brie NY caught stealing $640K promised high returns in airline: 5 yrs jail

Mark D'Amico caught duped public $400,000 in GoFundMe scheme: fake homeless

Serena Shi caught selling condos in California that did not exist.

Stores caught claim original prices discounts when no such price listed

Goods caught fake “made in USA” sticker: trick of meaning

Tom Selleck caught pushing reverse mortgage product: Joins Madoff on Wall of Shame

Onion recall: Potandon Produce and Alsum Farms salmonella concerns: toss

 

Jobs

CVS closing 900 stores: reopening as health-care clinic: flu shots to diagnostic tests.

Amazon's buyout of Hollywood studio MGM

Unvaccinated employees are lying about their status to retain their jobs: peer pressure

 

Taylor TX new $17 billion Samsung chip plant: 2,000 jobs; 6,500 construction jobs

Germany raises min wage to €12 ($13.46) an hour, from €9.60 ($10.77) an hour.

 

Who owns your account now?

10 used cars that are going fast: demand raises prices—maybe you should wait

10 Least reliable new vehicles: most cost a lot for troubles: winner: Mercedes-Benz GLE

 Verizon acquisition of TracFone Wireless

 

 

Miracles:

Child brings automatic weapon to protest in another state, kills 2: gets job in Congress

12 yo saves family and injured dog using Boy Scout-learned skills

TX voters don’t trust politicians to ban the right books: lynching by whites happened

 

Arbery judge: “self-defense laws do not apply to the person who is the aggressor in a confrontation.”

 

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/

 

Where do you find a great financial advisor?

 

How can you double the value of your investment dollars?

How do working people earning average salaries prepare for retirement by building a $1 million fund? For most of us, there are three simple steps: tax-deductible paycheck automatic savings, employer matching funds, and compounding interest. Compounding happens when you leave your money alone in a low-cost S&P 500 stock fund to make money on itself. You can earn 11% a year. Many employers offer to match your retirement fund contributions. It is free money so take it. Using a 401k, 403b or other tax-deferred plan including an IRA allows your money to grow without current taxation. Thus contributing $250 a month—$125 per pay period—can easily grow your fund to over a million dollars by the time you retire.

Never too late to start: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513

 

Only self-employed can deduct expenses of a home office

That is the federal rule but 7 states allow some deductions for work from home. You may deduct some expenses from a home office if you are a rideshare driver or an online retailer. If this is a new category of work for you—Uber, Lyft, delivery driver—you should rely on an experienced tax preparer for your return this year. If you started any type of non-paycheck job this year after being laid off, you may be able to claim many expenses in pursuit of income. Likewise your online retail store expenses including the space you use to manage your store may be deducted. You may not make a profit this year. Your business loss may offset some of your other income like unemployment compensation and Covid related sick time pay. Many businesses received loans that may not have to be paid back. However, the paperwork is complicated. Unfortunately, you can’t avoid all income taxes like our former president.

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

 

Is a credit monitoring service right for you?

Most of us are not victims of ID theft because we know not to give out info to thieves who send us fake emails, calls, and texts tricking us to give them our personal data. The most popular currently is the fake IRS message asking to confirm our information. It takes months to clear up the results of a stolen ID: fake purchases, fake bank debits, etc. So a profitable industry has worked on our fears to take our money in the form of promises of protection. Some even claim they provide a $1 million in protection—for a price. However no paid service can stop an ID theft—we only know AFTER the event. There are free monitoring services: CNBC Select ranked the top credit monitoring services and top identity theft protection services. CreditWise® from Capital One ranked as the best overall free service for credit monitoring because it offers dark web scanning and social security number tracking, plus a credit score simulator tool. Identityforce.com ranked as the best overall identity theft services for offering the most extensive security features that monitor your information on the dark web, court records and social media. While freezing your credit can protect you, the simplest way to learn about fraudulent activity in your name is to sign up for a credit monitoring service. It immediately alerts you of any potential danger. Then you can take action before the ID thieves can hurt you. You can get help at https://identitytheft.gov/. 

 

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

 

Where are the great financial advisors?

No where and every where. It depends on what we expect from them. Some of us pay a lot of money for advice—over 63% our potential lifetime earnings in costs, according to John Bogle, founder of Vanguard. Others feel that they would have lost all their savings if it were not for their advisor. Others went to a financial planner and paid a one time fee (like buying a will). They have a complete plan for their future financial needs. Most advisors are not brilliant product analysts so they rely on their firms’ ‘select securities and products.’ That is what marketing is for—products are “sold not bought.” Most advisors are sales people by necessity. Firms need profits and advisors DRIVE our money into their firms. If advisors bring in a lot of money, they stay. Maybe you don’t need an advisor who takes your earnings every quarter. You may need an unbiased advisor that works for a fee, not commission. Like a good car mechanic, they don’t try to sell you on a transmission flush when all you need is an oil change. Car makers don’t recommend flushes. As a former sales manager, I paid a financial planner for a check up for a single fee. I have a plan for the next 50 years with all the contingencies. All advisors rely on standard software so your portfolio and plan follow universal guidelines. There is no need to give up over HALF your money anymore. The best advisors don’t need clients.

Get value for your money: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

 

Know the SS benefit rules for the greatest benefits

Before you sign up for Social Security benefits either online or at a local office, know the ABCs of your account. Set up an account so you can make sure SS has the correct information about your work history. Your benefit is based on your 35 highest-earning years. Your benefits may be taxed up to 85%. You can start benefits at age 62. However, if you do start early, that reduces your amount by about 25% for the rest of your life. Your full benefits are paid by age 67. Every year you wait—till age 70—increases your benefits by 8% a year for the rest of your life. If your spouse or ‘ex’ earned more than you did in SS records, it may be better to claim spousal benefits. Spouses without their own long work history can claim benefits in this way. Survivor’s benefits let a widow or widower collect up to 100% of the late spouse’s Social Security benefit amount.

https://www.amazon.com/Your-Retirement-Income-Checklist/dp/1544703260

 

What can we do with a big auto loan and no job?

According to Edmunds.com nearly 70% of new car loans in the first quarter of 2020 were longer than 60 months with many either 72 or 84 months. The trend over the last decade is longer and longer loans. We all know someone with this problem: Bob bought a big luxury car used but he still owes over $25,000—payments at $840 a month. Bob lost his job. Bob has no 2^nd car and is single. The car is worth less than $15,000 now. Bob could try to trade down but there would still be a large balance. Bob can’t roll the balance into a new loan since he has no job. Bob can try selling this car and paying off part of a loan with smaller monthly payments. If Bob can get a ride to shopping or work if he finds a new one, this would be best. Bob does not like that alternative so he begins to work as an Uber driver. There are expenses that are deductible including use of his car. Bob decides this is his best option for now. He decides he will never buy another used luxury car with a loan. Bob has to buy new coverage so he shops around to save.

Shop and save on insurance: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

 

How do you know when to get out?

Gamestop stock went up and then went back down to $40 where it was January 19. At 347 per share, did you sell on time? How did you know when to sell? Did your broker or advisor tell you so? If you bought at 200 expecting it to rise further, did you get caught in the fall on February 2? I hope you did not see your account show a negative balance of $730,000 like the young man who couldn’t get through on the phone to verify. Playing stocks can kill your savings or worse. Yes, direct online trading is possible but is it worth it? Like playing lottery someone could win but the chances are sometime 300 million to one. Don’t we have an obligation to show our young how to invest like Warren Buffett, a real wise investor?

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

 

 

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

 

 

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

 

 

Trump cult members beware:

Trump didn’t stop cult who wanted to “hang Pence” for disloyalty

 

Dictator can incite overthrow of our government again

 

Most GOP want Dictator back: “Trump party” in all but name

 

What if it had been Obama and BLM Jan 6?

 

So much for justice in America!

 

Our ‘Truth and Reconciliation Commission’? 

 

 

 

How Govt wastes our money:

Opioid pushers get tax refunds for settling claims for 450,000 deaths: profit from killing!

Stockpile masks while nurses receive only 1:  Biden’s people waiting Senate GOP OK

Wasted on 57 Trump fake vote-count lawsuits in each state: we pay for state courts!

 

US making $100 billion missile 20 times Hiroshima: not just kill, annihilate whole cities!

Taxes to make robots that kill automatically: hackers will love our cyborgs: kill us?

 

IRS fails to update: you pay tax yet collection letters on auto: Seize your account HELP!

IRS still hadn’t processed 6.7 million returns for the 2019 tax year: Amended takes years!

$ Billions to send rover to Mars: we did this already in 1997: internet for rural US yet?

 

SCAMS/SPINS:

Republicans "worried that if they vote to convict … people would come after them."

Trumpists have defeated the GOP: Most Americans know GOP is not viable anymore.

Dictator did nothing even after hearing followers vow to HANG his VP Pence.

McConnell avoids responsibility: up to prosecutors to charge Dictator with crimes.

 

House sues Trump/Giuliani/terrorists using 1871 law for Capitol attack: Mitch testify?

 

When a coup fails, media calls it a ‘riot’: winners always re-write the history we read.

FBI recognized many Capitol terrorists from their Terrorist Watch List on videos.

Ivanka not going for Rubio Senate seat: only interested in top job: another Trump WH?

 

Child abusers in Boy Scouts go free $ billions insurance money to lawyers, mostly

the-most-common-lies-people-tell-about-money-60324.html

Global warming means more ‘too hot and too cold’ on new climate maps: FL floods.

 

Mercedes recalls 1.29 million 2016-2021: software may fail correct crash location.

Texas tells residents to fend for themselves: car in garage kills family

Fake tax preparers: Check: they must have a valid Preparer Tax Identification Number. 

Stefan Qin caught stealing $90 million Ponzi using fake algorithm for cryptocurrency

 

Virus spreaders: No-Maskers fake US marshal pass: 1/3 military decline vaccine

No-Maskers push death toll past 500,000: 

 

ExGov Perry: OK to freeze in TX cold so that oil/gas firms receive socialist tax subsidies

The Texas way is like living on Mars: Every person is a lone star to themselves.

 

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

Another job search tool: https://www.glassdoor.com/blog/guide/how-to-use-glassdoor/

Visa Ban lifted?: Unemployed workers weren’t interested in jobs held by foreign hires

Another Trump tower falls: thousands laid off in 6 bankrupt biz

 

Who owns your account now?

Verizon’s proposed acquisition of Tracfone: no more ‘pay as you go’?

Looking for service: $15 mo keep own number and phone https://www.mintmobile.com/

 

 

 

Miracles:

A nursing home that tried to protect its own: after a year of lockdown, vaccines

HealthCare.gov reopens to provide much needed coverage for laid off workers.

Hundreds volunteering to escort elderly Asian Americans to stop beatings by terrorists

 

Holy War: cast GUILTY vote: now can’t go home: Family turns: “disappointment to God”

CA gives extra $600 for virus relief: waiting for Congress means hunger or eviction

Flooded giraffe habitat takes special rescue: soon Miami will need a rescue from floods

 

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/