Your Unbiased Advisor: deductible IRA

Showing posts with label deductible IRA. Show all posts

Friday, January 8, 2021

Rebuilding our lives in 2021

We still have to wear masks since many Americans find it hard to protect themselves and others. We hope enough of our fellow Americans will take the vaccine so we can re-establish our lives. First, let’s rebuild our emergency fund. Most of us are wasting money on products/services we don’t need. I cut out my cable sports package to save $40 a month. I found the games I missed on YouTube—some were summaries of the important plays—some the full exhibition. I find tons of movies/shows on YouTube free. I buy cars with least problems. I was able to get my town to re-evaluate our property tax bill. I got on the town property records and found similar property with less assessment. I filed an appeal. The town assessor visited my home. They offered to reduce the assessment and I saved $1700 a year. I did my own federal and state tax return online for $14 instead of $550 by just filling in the same forms as last year’s tax preparer and I have 2 businesses. It worked—I got a bigger refund--$3,566. I shop groceries online: they load them in my car. I save because I can see the discounts in all aisles. For commodities like tissues, I compare buying them in bulk (free shipping) at the box stores. I buy house brands usually. I use my daughter’s Prime for free shipping and entertainment. I use a 25 cent/min cell and pay $9.99 landline to screen robos. I moved all our IRAs to Vanguard and save over $4,500 annually in fees.

Stop wasting $3,000 a year: https://www.amazon.com/Save-3000-every-year-Only/dp/1500681571

Got 2^nd stimulus check?

Stimulus money is called Economic Impact Payment. Eligible individuals who did not receive an Economic Impact Payment this year – either the first or the second payment – will be able to claim it when they file their 2020 taxes in 2021. The IRS urges taxpayers who didn’t receive a payment this year to review the eligibility criteria when they file their 2020 taxes; many people, including recent college graduates, may be eligible to claim it. People will see the Economic Impact Payments (EIP) referred to as the Recovery Rebate Credit (RRC) on Form 1040 or Form 1040-SR since the EIPs are an advance payment of the RRC. Income is based on your 2019 adjusted gross income (AGI). Individuals earning under $75,000 and heads of households under $112,500 typically qualify for the full $600 stimulus payment. Those married and filing jointly or surviving spouses earning under $150,000 usually qualify for a $1,200 payment. Check the status of your payment at IRS.gov/GetMyPayment. So tell your tax preparer if you did NOT receive your money by direct deposit or check. You can receive it as a tax refund. It is not taxable as is unemployment compensation unfortunately.

Build your tax shelter: https://www.amazon.com/Your-ZERO-Tax-Account-Wealthy/dp/1482772795

Is starting SS benefits at age 62 right for you?

We thought we would receive more SS benefits each year but we found out once we started at age 62, 63, etc our benefits would never increase except for the cost of living COLA adjustment. There are many reasons to start benefits at age 62 and not wait for the highest payout at age 70. However, if you claim Social Security benefits before reaching full retirement age and also work, it can cost you. The government could reduce your Social Security checks by as much as $1 for every $2 in earnings over a certain amount, up until you reach full retirement age. Social Security uses your lifetime average for monthly income, as calculated from your 35 highest-earning years and adjusted to reflect historical wage trends, as the basis for your benefit calculation. Even if you’ve already started your benefits after reaching full-benefit age, Social Security annually recalculates this average, factoring in any new income from work. If your current earnings fall into your top 35 earning years, your monthly average will rise, and so could your benefit. Be sure to visit your local SS office before you apply for benefits so you don’t make a mistake and lose money for the rest of your life. There are many ways to maximize your benefits so an office visit is worthwhile.

Increase your retirement income: https://www.amazon.com/You-Can-Afford-Retirement-FEE-FREE/dp/1517738253

Why our readers love Wellesley Income fund

Many of our readers are retired or near retirement. When investors start relying on their own funds for income instead of a paycheck, they offset possible high stock returns for regular steady balanced returns. Most investors fear a market downturn that will reduce their income now or later. Vanguard’s Wellesley Income fund is a low-cost balanced fund managed for steady returns from stocks and bonds. Most of the holdings of this fund are bonds so picking the right securities to maintain an annual return of near 10% is important. Many readers explain how they have overweighted their portfolio toward this fund over the years taking more and more of their annual RMD income from this fund. However, they still rely on other Vanguard funds to pick up high stock funds as in ’20.

They avoid paying a broker and thus avoid giving up much of their potential long-term gains. No trading, no timing, no gambling. Other popular low-cost funds are:

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.

Pay less; earn more: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

Pandemic tax filing made easy

Save virus exposure and money by doing your own taxes on a site approved by the IRS. IRS Free File lets you prepare and file your federal income tax online for free. File at an IRS partner site with the IRS Free File Program or use Free File Fillable Forms. It's safe, easy and no cost to you. Most of these sites file the state return for a nominal fee also. Most sites are open Feb 1 and most guide you through the process by asking questions. Some will try to sell you the deluxe version but legally they cannot force you to pay for the Federal filing. Employers must file Form W-2 and other wage statements by Monday, February 1, 2021. This is also the date Form W-2s are due to employees. Even if you have a small business, you can complete Schedule C on the sites. If your income is over the stated IRS amount you are still better off using these sites and paying a fee. Our income is above the Free File guidelines but we still use the same site year after year and pay nothing for the Fed return filing and $14 for the state filing. Best bargain around.

Save $300-400: https://www.irs.gov/individuals/steps-to-take-now-to-get-a-jump-on-this-years-taxes

Is investing in a real estate investment trust right for you?

This market is depressed since many businesses are cannot pay their lease expenses. As the economy improves, commercial real estate returns will improve. Vanguard’s REIT fund price has fallen and so it is on sale now. Long term returns show almost 10% gains. Since the income is mostly dividends and interest, put your dollars to work in an IRA. You defer taxes until later when gains will be higher.

https://investor.vanguard.com/mutual-funds/profile/VGSLX

Why is it better to take IRA tax deduction in 2021 for 2021 not 2020

Retirees who still work can now reduce taxable income by making $7,000 IRA contributions regardless of age. The age limit for IRA contributions was lifted in 2020. So our RMD for 2021 may be larger and thus a higher tax liability. For some, their IRA balance is up 17% and thus the RMD calculation will be made on a much higher balance than previous years. Retirees did not need to take an RMD in 2020, so they will have lower taxes. However, in ’21 the RMD amount may be higher causing higher taxes. These retirees will need the IRA contribution deductions to lower their taxes for tax year 2021 not 2020. So since we have a choice of 2020 or 2021, we will make sure we make deductible IRA contributions for 2021 anytime in 2021. If we don’t need the deduction at all, we will contribute to the Roth IRA which gives us tax-FREE income later when we no long have earned income. Of course you can always convert IRA money to Roth for a tax-FREE future.

https://www.amazon.com/Go-Tax-FREE-Investing-Income-Forever/dp/1482633280

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

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

President of the United States tries to overthrow our government

Trump incites ‘mob’: "failed insurrection"

FBI: ‘domestic terrorists’

25th Amendment: “high crime and misdemeanor”

Our ‘Truth and Reconciliation Commission’?

How Govt wastes our money: Coup attempt put down; Dictator still has atomic codes

Dictators unstable after loss: do crazy things like “go out in a blaze”: Pence take over?

Who removes Trump Jan 20 if mob takes WH: took soldiers hours to drive to Capitol

Usual outcome of failed coups study: failed dictators are exiled, imprisoned or executed.

Coup attempt: Congress overrun by Trump terrorists; police lost; Dictator eggs on

Congress hides; put on gas masks: furniture block doors; 4 dead; soldiers too late

Where were Antifa-scist when fascists stormed Capitol? Dictator got his mob action

Capitol police refused FBI and Guard help twice: racism/pro-Trump bias/hubris kills 4

American intelligence agencies failed to recognize coup attempt: White privilege?

September report Homeland Security surfaced identifying white supremacists as threat

FBI: domestic terrorism: Violent, criminal acts committed by individuals/groups to further ideological

‘Commander in chief’ vetoes own defense bill but Congress approves 3% troop raise

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

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

Our ‘Representatives’ gave 3.7 Trillion to the wealthy already! $600 for us

Pence VP leads Trump party in sedition to overthrow duly elected government

2^nd impeachment bill called for: Dictators think they can do it again if not punished

Trump lieutenants freeze Defense transition to Biden gov control: sedition

Trump cancel Iran treaty so Iran making more bombs: Iran: Trump is “sick person”

Trump: cancels bias protections. cancels bird protections: revenge on American life

Trump sells our Arctic National Wildlife Refuge: Can Biden reverse this waste?

Putin: Operation Chaos worked: Trump offered Hero of the Soviet Union + 2 hotels

SCAMS/SPINS:

Dictator to GA: “I just want to find 11,780 votes” Loser asks GA for criminal act

Thank God: our democracy lets our Reps make fools of selves voting for loser again!

15 million doses given out but only 4.5 million used: no plan so pandemic gets worse

FL woman waits 19 hours for vaccine: govt stockpiling doses

My government has "exaggerated" the COVID-19 death toll, dictator says. 370,000+

Trump doubles hotel rates for Biden inauguration guests: many boycott his properties

SCAM: 2^nd stimulus check scammer’s calls steal our info

SCAM: pharmacist destroys our vaccine since heard DNA affected by vaccine: untrue

Dictator law: “…When neither the facts or the law is on your side, pound the table.”

Before all Cabinet resigns vote 25^th Amendment removal for incompetence.

White terrorists allowed to go home: police open fence Black protesters arrested and shot

Biden: terrorists not protesters; terrorists trample police; occupy seat of power

Trump promises ‘orderly transition’ like he did before sedition: his lies continue

Boeing pays $2.5 billion to end criminal charges for killing 346 people in 2 crashes

William King FL caught selling penny stocks without disclosing his fees: barred

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

Biden hiring new Washington agencies: cleaning up the mess left by the Trumpists

Who owns your account now?

Have gun for protection? Rev McWilliams was killed with own gun: killers are faster

Ohioans can now fire a gun in ‘self-defense’ anywhere they are legally allowed to be.

Congress people now carry guns around Capitol despite DC law. Visitors stay home?

New car picks for 2021: Buy right car insurance. Avoid the poor values. Poor reliability

Miracles:

Each state has own rules/timing of vaccine: some stand in line; some vials wasted

People without symptoms spread virus in more than half of cases

We are burning up our world: 2020 hottest year on record again

Justice: Woman accusing Black teen of stealing phone caught in CA: phone left in taxi

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/

9549013194571004364849

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

Friday, November 27, 2020

Wall Street loves stock traders

How Congress people determine the winners and losers

Recently, Sen. David Perdue (R-GA) provided the perfect example of how politicians make winning in the stock market easy ... for themselves. Our representatives are well rewarded for helping the winners win. Another example is the guaranteed $1.95 billion “advance purchase” agreement with Pfizer. This ensures Pfizer’s senior management will be well compensated for delivering 100 million doses of vaccine. We will still have to pay for each dose separately. There are many examples of this activity as shown here: https://www.reuters.com/article/markets-saft-idUSL2N14V2OV20160113. But we can still double our savings in 10-12 years over and over with a stock market account by using a low-cost index fund. We win too: TIME value of money. And we can make our savings tax-FREE by using an IRS-approved account—less tax; more to spend.

https://www.amazon.com/Money-Ball-Investing-Winning-unfair/dp/1548831409

$1,000,000 retirement fund?

The secret to reaching this goal is TIME and compound interest—both you can use for FREE. This strategy is recommended by the famous investor Warren Buffett. It takes $250 a month for 35 years to reach this goal using his strategy. The Buffett strategy does not cost a lot—there are no broker fees, no upfront costs. There is an annual charge of 0.04%. For your $250 a month, you will be buying shares of a mutual fund that invests in 500 company stocks like these: Apple Microsoft Amazon.com Alphabet (Google) Facebook Berkshire Hathaway (GEICO, etc) Johnson & Johnson Procter & Gamble NVIDIA and Visa. Because you are not paying a broker’s commission each month, you will earn about 11% a year over time. Of course, in 35 years, your $1 million will not buy as much as today’s money will buy because of inflation. However, no one spends their whole retirement funds right away so if you keep compounding interest, you can buy $1 million worth of things eventually. Remember, you only invested $105,000 for your million dollars. The rest is your gain in capital. This strategy only works if you keep investing $250 or more a month and you use the mutual fund Buffett recommends.

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

New IRA rules: use tax-advantaged accounts longer

New rule: We must begin paying tax on our tax-deferred accounts like IRA and pensions starting at 72 NOT 70½. We are told how much to take out in the form of the IRS table of required minimum distributions (RMD). When we are earning wages and pulling out RMDs, the tax consequences can result in higher tax rates and an increased percentage of our Social Security benefits being subjected to taxes. New rule: reduce taxes by making a deductible IRA contribution after age 70½. The SECURE Act in 2019 changed that. Now our traditional IRA contributions have NO age cutoff and allows additional contributions as long as we still work. Even a part-time or self-employment job like Lyft Uber will qualify. We can deduct up to $7,000 each depending on income. Avoid future tax hikes: create a tax-FREE retirement by converting IRA money to Roth IRA tax-FREE money. We may choose to convert any amount to the Roth from our traditional IRA. We pay taxes now instead of paying greater amounts later. Tax needed to pay for breaks for rich.

Make a plan: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793

Money is tight—cut coverage on some plans

Life insurance: buy term to cover your family for 20 years only. Once your kids are on their own there is no need to cover them. Usually you will have enough in assets for your survivor by then. Permanent life with a savings component and individual disability cover are a waste of money unless you’re protecting your personal business. Vehicle insurance: low deductible and comprehensive coverage on an older car that you own is a waste of money. Better to use an umbrella liability policy to cover lawsuits so you don’t lose your home and assets. Use a savings/investment account to replace mortgage life, accident and disability. Create an education fund to protect your children’s future. Child life insurance is a waste. Beware dental, travel, car rental, pet, ID theft and warranty insurance exclusions. A savings/investment account can cover all these low-probability risks. Instead use the premiums over time for a better retirement nest egg.

The best insurance is having money: https://www.amazon.com/Drop-Your-Insurance-Only-What/dp/1448623391

Why Wall Street loves stock traders

Academics who study stock pickers have long observed that the vast majority of professional money managers – about 85% – underperform their benchmarks over a multiyear period. Yes, once in a while for short periods, they hit the money—just like gamblers. But we know the house makes money from those who keep betting despite the odds because of their illusions. Wall Street makes money from trading and fees repeated year in and year out with little for us. Consider all the professional traders who use powerful computers to pick and trade thousands of shares in seconds. Individuals have little chance of finding the gold seam. Wall Street spins a money fantasy—do the opposite: stay invested, don’t trade, buy low-cost market indexes in diversified sectors, use tax-advantaged accounts, and manage dividend/gain taxes. A study of 1600 traders concludes: “We show that it is virtually impossible for individuals to day trade for a living.” DALBAR tracks returns over time: High-cost managed equity funds average 3.79% vs. low-cost S&P 500 index average 11.06% a year. Use low-cost index funds or ETFs from Vanguard, Schwab, or Fidelity and beat the Wall Street “professionals.”

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

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

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

Our ‘Truth and Reconciliation Commission’

Trump’s war: 270,000 KIA

Trump defies Supreme’s decision

Will Biden need military to evict Trump?

American-style fascism vs democracy

Do 74 million of us want democracy?

The Big Con continues: we never learn

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

Will Trump shutdown government in final revenge act on America? Revenge

Trump country ND leads the world in deaths: 1 in ever 1000 dead: real not hoax

43% of drivers/passengers killed in accidents not wearing seat belt. Masks same?

Supremes: religious can spread virus: no masks required bec/ “no restrictions on bike shops”

Trump let Mexican drug dealer “El Padrino” go free: freeing many of his ‘friends’

Another armed teen shoots 8 in WI mall: 2^nd Amendment killing us: dead have no rights

GA is recounting votes after recounting votes by hand: how many times; how much cost

Trump donor Rod Aycox gets federal money targeted for small biz: friends in high places win

“Follow the money”: GA senator run off between rich and richer: American Socialism for Rich

NYC road/bus checks for virus: just like in the movies: 14 days lockup for out of towners

SCAMS/SPINS:

American owners shows how to kick people when they are down on their luck

The BIG Con continues: ‘worldwide’ conspiracy to change 6 million votes: Blue to Red

Biden cannot find any socialists Trump said would take over government

Can GOP hold off all Biden appointments/policy until TrumpWorld comes back?

40-50% of Americans say they won’t take vaccine that can save their lives. Leaders maskless

Will these machine gun terrorists leave the White House quietly before January 20?

Trump attacks birthright citizenship: U.S.-born children not citizens: we are not citizens?

Biden’s EPA pick: lobbyist who helped DuPont avoid regulations

GOP gave up its democratic principles to a Trump dictatorship: can GOP go back?

Dictators don’t go quietly: usually force is needed: “I am the only one who matters”

How many criminals will the ‘law and order’ con man pardon? Giuliani still licensed?

So it is OK to lie to FBI if you have a friend in high places: Justice for some not others

Trump found a judge to stop PA certification: can one woman change millions of votes?

Could Trump reverse 4 state election results: MI, WI, AZ, GA? His alien advisor helps?

Trump told supporters NOT to use mail ballots: suppressing the vote backfired on him

Trump’s conspiracies have MAGA world talking Georgia boycott so Dems win!

Real voter fraud: Trump told us to vote in person AND by mail--no Black voter fraud

$75,000 truck massage: Don’t need a house—work 24/7 live in truck just to pay for it

GM Suv pickup recall 7 million airbags that explode w/o warning in heat/humidity

Tesla probes failure of the left or right front suspension fore links

USEquityAdvantage auto loan payment program contained misleading statements: fine

FDATR violated Telemarketing Sales Rule deceptive and abusive telemarketing: fine

Fake ‘Medicare’ caller gets info to steal ID: Call real number on card to give info

Judge: Trump’s Voice of America head tried to subvert unbiased reporting to world

Businesses with interruption insurance must sue their insurer even after paying for years

Fake vids tweets easy to make: never trust one source of information: info war continues

Fake charities look real: check IRS list BEFORE giving money: VA and disaster favorite

Trump’s Treasurer Mnuchin's moves money for pandemic to secret GOP fund: “illegal.”

OxyContin maker pleads guilty 3 criminal charges but bankrupt & owners get NO jail

Oxy killed at least 70,000 but Sacklers took $ billions out already and no one to jail

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

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

https://www.healthcare.gov/get-coverage/ for uninsured: subsidy pays most premium

Who owns your account now?

Need to reduce debt: file bankruptcy at low cost: get new start with your life

CBS’s Simon & Schuster to German Bertelsmann’s Penguin Random House: anti-trust

Miracles:

PA mask makers LIVE in factory for 28 days straight when supplies were needed most

State Farm sending wire sensors to homes to prevent fires: cigarettes smoldering big fire

Democracy costs $14 Billions and over 1 year of fighting: voters need only 1 month fight

“It’s reality” Laura Ingram FoxNews finally insults Trump: “Biden will be inaugurated”

KS requires masks but keeps schools businesses open with emergency troops.

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/

Friday, November 6, 2020

Where to invest when the election has no outcome?

Some think we will be lucky to have an ‘elected’ president by January 20, the official start of the new regime. Some say both sides have already hired lawyers to have the new GOP 6-3 Supremes decide who won. Last time, GOP Bush had Supreme Scalia on his side. Scalia gave the election to Bush because he claimed, contrary to the Constitution, that FL couldn’t count the votes correctly. Scalia, claiming to know the Constitution, decided for us. But he never showed us voters where it says that the Supremes will choose presidents. He ignored the 12^th Amendment: if no winner “the House of Representatives shall choose immediately, by ballot, the President.” Since we don’t know what will happen, we have to go with our best information. The markets may be biased in favor of those who have faster computers, talented analysts, large leverage, more influence, or more insider information. We only have the unbiased advice of the greatest investing master, Warren Buffett, who bet $1 million the Vanguard 500 Index Fund would beat the 5 hedge fund picks of a Wall Street guru. We own 500 large growth firms at low cost with few taxes. They produce 11% total return over time. Buy on sale now.

Fact investing: https://www.amazon.com/Money-Ball-Investing-Winning-unfair/dp/1548831409

Is it right for your broker/advisor to be your legacy representative?
Some so called ‘professionals’ in financial services have been caught taking on the roles of executor, beneficiary, trustee and power of attorney for customers. This is so wrong that brokers/advisors are going to extraordinary lengths to get around this most obvious conflict of interest. Honestly, do we need a rule for these salespeople? They should be in jail. “FINRA, the ‘self-regulator’ for the industry, observed situations where registered representatives tried to circumvent firm policies, such as resigning as a customer’s registered representative, transferring the customer to another registered representative, or having the customer name the registered representative’s spouse or child as the customer’s beneficiary.” "These conflicts of interest can take many forms and can include a registered person benefiting from the use of undue and inappropriate influence over important financial decisions to the detriment of a customer. The brokerage firms are just now making this rule due in February. Hire a fiduciary who is sworn to treat you right. https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275

Is a deductible IRA contribution right for you?

The rules changed for 2020: IRA contributions after age 70½ are now permissible.

The SECURE Act repealed the age restriction for Traditional IRA contribution eligibility. Effective for 2020 and later taxable years, individuals with earned income can make Traditional IRA contributions at any age, not just for years before reaching age 70½.

For 2020 and later, there is no age limit on making regular contributions to traditional or Roth IRAs if you have earned income. If you had self-employment income or W-2, that income qualifies. If your spouse had income and you did not, that qualifies too with some limits depending on participation in a retirement plan. Spousal IRAs: If you file a joint return, you may be able to contribute to an IRA even if you didn’t have taxable compensation as long as your spouse did. Each spouse can make a contribution up to the current limit; however, the total of your combined contributions can’t be more than the taxable compensation reported on your joint return. See the Kay Bailey Hutchison Spousal IRA Limit in Publication 590-A. If neither spouse participated in a retirement plan at work, all of your contributions will be deductible. The annual contribution limit for 2020 is $6,000 or $7,000 if you're age 50 or older. For many of my tax clients, this means they can reduce their income and thus their taxes for 2020 due April 15, 2021.

Alternative tax-FREE IRA: https://www.amazon.com/You-Can-Afford-Retirement-FEE-FREE/dp/1517738253

Which fund is best for your retirement nest egg?

We have learned that we can trim the risk of market upheavals by using a ‘balanced’ approach—stocks for growth and bonds for ballast. Since 1970 one fund has continuously provided retirees with total returns (income plus capital return) of over 9%. Since 9% is greater than inflation of 3% over time, our nest egg can maintain our purchasing power even though we may live long and prosper. Insurers sell their annuities to offer this same ‘longevity insurance’ but at a higher cost. If we don’t take the income each year, we can actually double our money in 10 years. So if we have other income (SS plus pensions plus RMD forced IRA distributions), we can provide a legacy and or have a large medical contingency fund at the end of life. To some of us, this beats every annuity plan that brokers offer.

Forget their annuity: https://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573

Earn a guaranteed 12% to 24% return

“Guarantee” is the third rail to financial service advertising: it means fraud since there is no ‘guarantee’ in investing. However, consider paying down credit card debt of 12% to 24%. The average rate is 19%. If we pay 24% per year, charged every month, as most cards do, we would be wise to make card interest our ‘investment’ of choice. Most of us are unlikely to earn more than 11% on our investments over time so paying off high interest debt is our best ‘investment’ choice. When we are finished with the debt payment of $100 a month, for instance, we can use that $100 a month to accumulate over $20,000 for our home down payment or college or new car. Instead of making credit card bank investors rich we can help ourselves by investing that monthly payment.

https://www.amazon.com/Millennials-Investment-Strategy-BEST-journey/dp/1533079242

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

Like 1776, this period is a test of democracy—do we really want a Dictator?

Supremes decide election … again?

Dictator: “It’s going away.”

Dictator’s staff: “It’s out of control:” 236,000+ dead

Dictator’s ‘music’: Crowd chants Fire Fauci

Dictator: “I am the only one who can make America truly great again.”

Dictator: “Stand by” Domestic terrorists

Dictator build his Wall around our White House

Dictator has mail delayed and has Supremes void all votes received after Nov 3!

Dictator sends armed troops to intimidate vote counters