Your Unbiased Advisor: fiduciary

Showing posts with label fiduciary. Show all posts

Friday, February 18, 2022

Unbiased financial leaders say use a fiduciary not advisor/broker

Flaw in ban on Surprise Medical Bills

If you have a medical emergency, you will no longer need to worry about a large bill from a doctor you did not choose—MAYBE. The 2022 “No Surprises Act” is supposed to protect us against most surprise out-of-network medical bills. For Good Samaritans who donate organs this has always been the rule. However, because of the complexity of dealing with 4 or more institutions regarding medical procedures and their medical billing procedures, you may get caught in a fight with bill collectors they sell the ‘receivables’ to. (Remember, bill collectors get paid to collect the debt they purchased, not to correct a mistake a previous institution made.) Also, know that our Reps gave some providers’ lobbyists a break in which charges are exempt from the law. The ambulance industry CAN charge you even if you didn’t pick the one the in-network institution uses. Another example: I just got a bill from a provider I did not pick. My doctor immediately called in his favorite X-ray person in the same building to do my X-ray since I was in need and the machine was down the hall. So in our medical system, each entity that provides something; anything; that can be coded (an aspirin, X-ray, swab kit, glove, cold/hot pack, etc etc) will add to our bill. If you look at your hospital bill, you will be shocked to find an aspirin can cost $30. If you insist on brand Tylenol instead, it costs more. A trip to the hospital can cost more than a bomb the Air Force pays to arm its fighters.

What we regret most

Regret: I wish I had done something or not done something in the past. In The Power of Regret, Daniel Pink asked 16,000 in 105 countries about their top regrets. People regret not building a strong foundation — that is, not saving money early, not being prudent," Pink says. "With financial regrets, they're less about not hitting a home run and more about not regularly getting on base." It is TIME in the market not brilliant advisor stock picking that builds wealth. No advisor can be right all the time so in the long run, you lose more than you gain. The average advisor-managed account earned just 3.79% vs 11% for a pure low-cost stock market index fund. It is the high fees and bad market timing that ruins your investment plans. Starting early, using your average tax refund or $250 a month in a low-cost stock index fund like Warren Buffett recommends provides your best chance of providing an above average retirement income.

Avoid advisor fees: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072

Why unbiased financial leaders say use a fiduciary

A fiduciary is a person or organization that acts on behalf of another person or persons, putting their clients' interests ahead of their own, with a duty to preserve good faith and trust. Being a fiduciary thus requires being bound both legally and ethically to act in the other's best interests. This is the kind of person you want to handle your money and life choices. Otherwise you become an ongoing meal ticket for a salesperson and their firm’s owner. Fidelity owners, the Johnson family, have a net worth of 36 Billions. They did not get to that level working 9 to 5. They take fees every year from your savings and investment accounts (if your money is at Fidelity). On the other hand, Vanguard Group of funds is owned by its investors. You get financial products and services at cost: No middle person fees and charges. Low-cost stock index funds, like Warren Buffett recommends, provide you with your best chance of gaining an above average retirement income. Earn market rates of return not the Johnson’s rate. I don’t work for Vanguard. I moved my money from Fidelity because I earn more at Vanguard. They just cut their fees again—Target Retirement Funds—1/5^th the cost of others. I keep more!

Buy at cost and save: https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275

Another way wealth people make us pay their taxes

Passing on $ billions tax-FREE to the kids who never have to work and contribute to our society. Shale King Harold Hamm Is Passing Billions To His Heirs Tax-Free. If the kids don’t pay taxes on their $2.3 billions, we will be stuck paying for the courts, highways, airports, and armed forces they depend on. His lawyers carefully structure transactions so they benefit heirs but aren’t technically gifts at all. Thus no gift or estate taxes are paid. Yet he controls the company that provides the wealth. Filings show Hamm used an LLC and more than a dozen different trusts to complete the transfers. Phil Knight used a variety of techniques to move billions of dollars to his family tax-free. Eric Yuan transferred $6 billion worth of shares to unspecified beneficiaries for “estate planning” reasons last March. Late casino mogul Sheldon Adelson shuffled shares of Las Vegas Sands Corp. in and out of more than 30 trusts to pass along at least $7.9 billion to family members. Cosmetics heiress Jane Lauder became an overnight billionaire in 2013 when she received L’Oreal SA shares worth more than half a billion dollars. Our so-called ‘representatives’ wrote the tax laws that let them pay NOTHING. You have one way to avoid paying THEIR taxes.

Use your legal tax-FREE account: https://www.amazon.com/Your-Wealth-ReserveTM-Tax-FREE-Investment/dp/1484954882

If you earn less than $100,000 a year, start investing NOW

The only way to have enough income in retirement is to start early. Why? Because most working people need time for the Miracle of Compounding to accumulate a large nest egg. It takes large contributions or a long time to have enough retirement assets to live on later. For instance, investing $250 a month for 35-40 years will provide a retirement income of about $45,000 for 30 years. You would need to triple that—or invest $750 a month—if you only have 25 years left to invest. If you wait to start, you will need $2,500 a month for 15 years to reach your goal. This assumes you can earn 10% a year on average in a low-cost stock market index account. This is the type recommended by Warren Buffett. If you rely on a high-fee broker/advisor, it may not be possible to reach your goal at their average of 5.19% annual earnings. Low cost beats high cost over time.

Use the Miracle of Compounding: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513

Take all your special 2021 credits to offset taxes

2021 was a difficult year for most working Americans. Take all your credits: Child and Dependent Care Credit was supercharged through the 2021 American Rescue Plan. Parents can receive a tax credit worth as much as $8,000 — nearly four times the previous limit of $2,100. The Child Tax Credit provided funds throughout the year but some families may have been shortchanged. The expanded Child Tax Credit, by comparison, provides $3,600 for each child under six and $3,000 for children between 6 to 17. The fact that the tax credit is also fully refundable is important because it could boost the tax refund that many parents receive this year, experts say. Tax credits are dollar-for-dollar reductions in a person's tax liability, versus deductions that lower a person's overall taxable income. Save the $300-$600 tax prep cost by doing your tax return using IRS-approved tax software via IRS free file. Or AARP free tax prep. Do not mail your return since IRS is still processing 2019 paper returns. I just got my refund!

https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

Social Security is the best annuity available

Insurance companies make a lot of money from annuities because you receive less than you invest with them. Yes, you are guaranteed payments for the rest of your life but unless you pay more now, your benefit will be cut by inflation over time. That means you receive less and less each month in buying power. At current levels of inflation your benefit will be worth about HALF the current payments in 20 years. Compare SS benefits: annual inflation protection—in 2022, benefits were increased by 5.9% at no extra cost to you. There is no policy charge, commission, admin fees, surrender charges, mortality expenses, investment expenses, or inflation rider fee. You can also create a low-cost income stream like an annuity to supplement your SS benefits.

Use the best: 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

GOP guarantees itself a win

More subpoenas

How Govt wastes our money:

Ukraine the new Korea? Putin takes HALF (East of Dnieper) to save face at home

100 more incidents involving counterfeit parts in nuclear power plants in 2021

Manchin’s political veto gives friends $ millions in lobbying fees: making them wealthy

GOP asks truckers to come block highways in US: Putin hacker firm invites chaos

Another costly vacation: House returns to work Feb. 28 after Presidents Day recess.

IRS Adds Four “No Rule” Areas for Trusts Estates: wealthy avoid taxes; we pay their tax

SCAMS/SPINS:

WI Trumpers ban ballot drop boxes: WI supremes help GOP win elections

TX rejects thousands of ballots for primary: GOP secures win before election

Billionaire pays to oust GOP reps who voted to impeach dictator Wannabe: follow cash

Two MS whites chase Black FedEx driver in truck: 5 shots: another hate crime?

CA deputy shot Black homeless man in struggle for jaywalking arrest: no charges

FL former cop kills man in phone-in-theater dispute: ‘stand your ground’ defense

NYC employees comply with vaxx mandate or face losing their jobs: 940,000 dead

Employees don’t fight mandate for driving, guns, seatbelts, recycle, dog poop, taxes, etc

500 unruly passenger incidents first six weeks of 2022: GOP cancels US do-not-fly list

Is Putin trying to divide us again: fake Trump letter, fake crops, fake food supply chain

Zero Hedge, 1.2 million Twitter followers, published Moscow propaganda as truth

Volvo now owned by Geely, Chinese billionaire business magnate Li Shufu.

Fake ‘vintage’ goods sold are really new: ads for fake vintage stuff: get nothing

Russell Joseph Mutter caught $3.3 million financial fraud, fake statements 16 yrs prison

Mark Boucher, CA, caught stealing $2.2 mil by forging signatures, wire transfers, etc

Kenneth A. Welsh NJ caught stealing $1.9 mil fake wire transfers; arrest

CO elections clerk is sued after passing on voting data to groups behind disinformation

Royals pay up for Andy’s sex with minor accusation: it’s good to have Queen behind you

Hertz caught getting car renters arrested after mistakenly filing stolen vehicle report

Football $ 1 billion online gambling boom changes fans into transaction action addicts

NFL censured Super’s half-time show so some wouldn’t be offended: listen carefully.\

Email from Chase: review your contact info: but I don’t have a Chase account: scammer

Scammers reach $800 average take: can you spot them coming after you? Gov can’t

Chrysler now ‘Stellantis’ recalls 19,808 plug-in Pacifica Hybrid: charging fires

Tesla sued for killing driver when it ran into fire truck by itself: blinking lights attract

Sandy Hook families win $73 million vs Remington but Remington is bankrupt!

NFT marketplace shuts, citing 'rampant' fakes, plagiarism; so much for online only views

Trump and his two eldest children must comply with AG order to testify: take 5^th 500 X

Trump’s accountant: his businesses cooked the books, “inflated property values”

Trump threatens Clinton advisor with death for spying

Jobs

The adverts without the football on Sunday: vote on your favorite: $7 million/30 sec.

Some jobs can be done from anywhere if you have the right training or attitude

Citigroup head got 32% increase to cover inflation years in advance: live on $22 mil?

Least cost accredited college degrees: MBA, M Ed, MSIT

Who owns your account now?

Insurers push Congress to allow annuities as investment’s default: high fees cut earnings

“Americans can exercise Constitutional rights without hiring high-priced lawyer or lobbyist”

Investors not families buying up homes in critical areas in each city

New tax we paid to gambling industry: 2021 the highest-grossing year ever: $53 billion

4 free Covid tests sent to your home: https://www.covidtests.gov/

Some student loan cancellations: fraud rampant in some: DeVry ITT Technical Minnesota Business/Globe .

Miracles:

February 12: 49* at 8 AM northern NJ. Forty nine going to SIXTY! Warming?

Western US draught worst in 1200 years: hottest superbowl ever

This is how royals cut cake: stab down like killing a vampire

Space weather took out 40 SpaceX satellites: don’t look into the sun directly

Skaters using drugs OK as long as they use own script and grandpa’s and under age

MIT makes $4 water desalination machine: fresh water for the world

Eastern cities hit regularly with costly floods as sea rises faster next 30 years

Flowering plants multiplying in Antarctica as the climate crisis has warmed the summers

Woman Appears to Be Entirely Cured of HIV

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, July 31, 2020

Trump’s watered-down fiduciary rules hurt our nest egg

GOP against lower drug prices but supports buying profit companies

Most US drugs cost 50-100% less for families in Canada and Europe. Some in Washington want to link some U.S. drug prices to the lower prices paid overseas. However, the drug industry and many Republicans taking their ‘gifts’ see it as a price control that violates ‘free-market’ principles. These same GOP members don’t see the violation of their so called “free-market principles” in buying 30% of YRC, a struggling trucking company. GOP backed our national bank in buying the lower-rated bonds of US firms starting in May. The GOP handed $ millions in forgivable loans to private plane companies that contributed to Trump elections. GOP wants to cut unemployment help to 50 million out of work because they say it keeps them from going back to work. GOP says $600 is “too generous and provides a disincentive for returning to work.” So GOP spends our money (future taxes) on their donors’ companies, creating a socialist economy but denies the jobless a means of survival until their jobs are safe to return to work.

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

Can Trump’s paramilitary occupy our cities to assure a Nov win?

With Trump’s unaccountable and masked paramilitary in our cities during election, can intimidation and violence scare voters into staying away from polls. They do that in some fascist countries? There does not seem to be any law or power that can dissuade him from continuing to hold Portland. He did it in Washington DC for the bible-walk PR stunt. Shooting tear gas at peaceful demonstrators in the park did not get a rise out of any law enforcement or the Congress. His own Justice Dept ‘watchdog’ is unlikely to find fault with the Boss over the invasion of Portland last month. He is the highest law enforcement actor and Commander of all the armed forces. He can just fire the ‘watchdogs’ like he did in the past. He has the money lined up to carry on a long court fight over the election results. He is invigorated by a fight. He has the Supremes primed to name him as President like Scalia did for Bush. Biden is wrong, there is no military other than Trump’s military since he is the supreme Commander. Look what happened in DC, Portland and next Chicago. He has the generals and Defense goose-stepping with him in the park after his troops cleared it. There is no one to stop him now and there won’t be on January 20. Only one brave public person has named this action: Philly DA: we have an “authoritarian dictator."

Wealthy are buying citizenships to avoid taxes and virus

Who do you think will be around to pay the new tax hikes required to pay for the huge federal and state budget gaps? Many wealthy folks are buying a way out of the current tax and disease environment. For as little as a $1.4 million you can isolate yourself and your family in a safe haven so you avoid taxes and yet can keep US military and health protection almost anywhere in the world. Like many corporate giants, you can claim your home somewhere else for certain benefits while living and earning in more pleasant surroundings. Specialty firms such as Henley & Partners, the world’s biggest citizenship and residency advisory firm, do most of the paperwork.

You don’t have to move to pay less: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

Trump’s watered-down fiduciary rules hurt our nest egg

Trump changed the Obama fiduciary rule to allow salespeople to take advantage of us when we move our retirement money from an employer. Critics claim this gives us less choice but the purpose of the Obama rule is to make sure we understand what happens to our money after the excessive fees, costs and possibility of loss with some products. Of greatest concern, said CFA director Roper, is that “many rollover recommendations won’t be held to a fiduciary standard, including the vast majority of recommendations to roll money out of a plan to purchase non-securities investments such as annuities, bitcoin, real estate, gold or other commodities. So precisely where the risks are greatest and the compensation related conflicts are greatest and the sales practice standards are weakest, the ERISA fiduciary standard will not apply." The Trump rule will allow financial advisors to receive many payments that would have been restricted or forbidden by the Obama rule, including commissions, 12b-1 fees, trailing commissions, sales loads, mark-ups and mark-downs, and revenue-sharing payments from investment providers or third parties, even within qualified plans and IRAs. High-cost products rob us of up to 63% total accumulation due to the compounding effect over time.

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

Is portfolio re-balancing right for you?

Has your advisor or TV guru mentioned selling some of your assets so you can buy other assets yet? This is the standard procedure for the financial sales industry. Selling and buying is how the industry creates revenue. But is this strategy good for your long-term accumulation. Many studies show that it can be good or bad depending on the performance, composition and relative size of your portfolio. Selling your winning stocks or mutual funds just because at the end of the quarter they exceeded your risk percentage only makes sense if your advisor knows they will keep growing. But advisors don’t know this. You may end up losing some valuable growth because you sold too soon. Because there is no consensus on when to sell/buy assets, most investors don’t bother. Many just use a fund that moves from stocks to bonds over a longer period. The popularity of the target-date funds show this is a practical strategy that ignores the issue. Other investors use a more intuitive strategy: designate contributions to the asset class less favored. Here you would not sell your winners; you just buy more of the losers. So when stocks soared in 2019, there has been no need to sell since stocks have returned to level ground in 2020. If you had traded stocks for bonds, you may have not been better off. For many long-term investors, stocks go up and then back down on their own. There is no need to sell to correct the balance. Stocks earn 11%; bonds earn 7% over time. Simply changing the destination of the next contribution cycle will do the job of maintaining your risk appetite. The outcome produces a delightful 8% with few bad years. The important decision is cost: Morningstar study: low-cost funds beat high-cost funds in every period.

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

**********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: “nobody likes me”

Dictator: “I will delay Nov election”

Fascism: Paramilitary troops sent to our cities: Chicago next

GOP judge: Trump’s paramilitary ‘guards’ CAN terrorize citizens legally

Louisville protesters bring own ARs

12,000 troops from Germany to … Cleveland, Detroit, Milwaukee

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

Cashing-in on suffering of others: Corporate Insiders Pocket $1 Billions: vaccine work?

Homeland Security destined to become the secret police: vague mission used law&order

Trump’s $1 million WALL fell as ‘the environment’ said “no walls here.”

Fed chair: Worst economic downturn ‘in our lifetime’ warrants more help from Congress

Trump to build FBI hq next to his hotel: $1.75 billion for donors from virus payments

$1 Trillion GOP Virus bill: military planes, armor trucks, helos, missiles, spy planes, war

GOP Virus bill: wealthy can make PPP loan into grant and also deduct payments as expense

Now that wealthy have virus loans/free money, GOP to shut down spending for rest of us

Wealthy take virus loan/subsidy to keep employees then lay them off: on unemployment

Millionaires decide $600 unemployment too much: Congresspeople take gov subsidies

2^nd virus check: if you don’t file taxes, https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

Fed subsidizes capital so people who make money from money: bankers, hedgers, gamblers are riding high.

SCAMS/SPINS:

Trump: "The country is in very good shape, other than if you look South and West" 152,000 dead

Trump reverses Obama on mining in Bristol Bay salmon fishery: Army Corp goes along.

Trump mob: “kids are stoppers of disease: they don’t get it and transmit it themselves.”

Trump supporter Herman Cain at Tulsa rally, no mask: virus in 9 days, death in 30.

Trump vote-from-fear plan works: voters buy more guns – now, home tear gas launchers.

Mel’s new garden will be installed by “private” funding: virus PPP subsidy money?

Trump’s new post office head will control mail-in ballots: late votes are invalid

Reagan org asks Trump and GOP to stop using the 40th president’s name and image

Intolerance or cancel culture: no one is listening discussing anymore; my way or highway

77 Brands of Hand Sanitizers May Be Toxic, FDA says methanol thru skin dangerous

Some biz add "COVID surcharge" to their bill: sanitize should be biz expense not mine

Coin shortage? Really, my bank won’t take coins! Some banks charge coin deposit Dah

Recall: Boeing 737 may stall in flight corroded fuel check valves been parked too long

Mark Hopkins MI stole $1.5 million promised 7% from a credit union building fake docs

AIG Variable Annuity firm stole $40 million from FL teachers steered to high-cost stuff.

Trump’s new religion/doctor: no masks, hydrochlorine, “God’s battle axe”, voo-doo

Trump will decide who gets virus vaccine first: some millions will never see it

C-19 vaccine may only slow symptoms not prevent: may only work on 50% of us.

Is it a scam? Check AARP scamline 877.908.3360.

Jobs

Ivanka’s “find something new”: she is selling Goya beans so that job taken

Papa John’s to hire 10,000 more workers: Pizza is hot commodity

Obama to register 15 million young people for Nov

Who owns your account now?

Eviction facts: https://evictionlab.org/covid-policy-scorecard

Do other car owners hate their cars enough to change brands: Yes, Fiat Chrysler Dodge

Eight DNA Ancestry Services: The Good, Bad and Ugly

Low-cost generics from legit pharma: must pay a membership fee.

Average Age of Cars Americans Are Driving Nears 12 Years: Brand favorites

Miracle:

Baseballers kneel for BLM in opening games: Trump shocked, Fauci threw first pitch

Vaccine candidates look promising but wont’ make reality go backward to 2019.

Mom shares her good fortune and community gives back: neighbor helping neighbor

Blood test for Alzheimer’s disease nearly perfected

C-19 virus not on most mail, newspapers, packages, doorknobs, surfaces

17 states ‘red zone’ still not following WH advice on virus case reduction

Baghdad hit its highest temperature on record: 125.2 degrees: Arctic higher too

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts

Friday, March 6, 2020

Despite market correction, stocks are best buy long term

Another study confirms Warren Buffett’s strategy. Equities have provided an annualized real return of 5.2% since 1900, compared to 2.0% for bonds and 0.8% for Treasury bills. Real returns are AFTER inflation which runs at 3%. Actually, DALBAR has tracked US stocks total returns showing 11% more recently. This includes all the corrections and recessions. Total returns includes dividends as well as changes in value. Buffett said he had been a net buyer of stocks every year since he was 11. His company owns many firms for diversification so his buy and hold strategy has returned 20% for his shareholders. Overweight certain sectors during the last 20 years has helped many investors achieve their long-term goals. Energy, Health and Tech have been especially productive. Unless you use insider information like our Congress, you need to stay in stocks. Selling high and buying low is NOT possible long-term. The so-called ‘safe’ investments are losers: 1% yield Treasuries minus 2.5% inflation = -1.5% lost value.

Use Buffett’s strategy: https://www.amazon.com/MasterClass-Buffetts-SIMPLE-Strategy/dp/1983485268

Conservatives actually love ‘socialism’

Conservatives say they hate socialism but they actually love socialism as long as they receive the benefits. Although many of them do NOT pay taxes, they receive our taxes as subsidies, grants, loans, etc. Since many of their corporations pay NO taxes and even get a tax refund from loses from bad management decisions, corporate shareholders often receive higher dividends. Tax refunds come from those of us who are taxpayers not shareholders. Many of the most profitable corporations receive tax breaks that throw the local tax burden back on us. Conservatives ‘despise’ those who receive help from government but don’t mind the welfare they receive. The wealthy use their gifts to their own charity in order to avoid taxes we can’t avoid. Congress people receive farm and gas/oil subsidies. And like candy, the rich want more tax breaks.

Our reps use Congressional information we can’t legally use to enrich themselves. They approve corporate mergers and new regulations that provide them with insider information. They don’t consider themselves socialists but yet use government regulations to favor companies they like. When they are led by industry lobbyists to reward certain companies with socialist favors, they find money in their election in-tray overnight. Industry lobbyists actually write the laws that give themselves the benefits since our reps are too busy running for re-election. And in health care, why did our reps agree to not letting Medicare negotiate better prices? Why does some bureaucratic clerk determine whether I can obtain a procedure I need? This is ‘American’ socialism.

From taxpayers to the tax avoiders: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

MA invokes fiduciary rule ‘light’

Massachusetts’s new regulations, which take effect March 6 says investment advice and recommendations must be given “without regard to the interests of anyone but the customer.” A prominent consumer advocate, however, said the final rule had been weakened from the original version. Trump deleted the 2016 fiduciary rule which required that advisors will act like accountants not like used car salesmen. The new rule also prohibits sales contests. Other states “will wait to see how the litigation plays out” before moving ahead. MA rule is ‘light’ because its biggest change “is the extent to which they [Massachusetts] walked back the obligation to provide ongoing monitoring of accounts. Under the original proposal, that obligation would have applied whenever there is ongoing compensation or where the investor has a reasonable expectation, based on how the broker holds out and markets their services, that they will be providing ongoing services. Both were removed.”

BEWARE: https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275

Why are health care costs so high?

1% of People Account for 22% of Total Healthcare Spending. The top 5% of the health care population accounted for over half of total healthcare spending in 2017. Top 5% of people listed by all health care expenditures account for over HALF of our spending from all sources. Older whites make up most of the top 5%. Most of the expenses are inpatient care. For persons in the top 5 percent spending tier, Medicare paid for 33.7 percent and private insurance paid for 38.6 percent of medical expenses. Out-of-pocket payments for this group comprised only 5.7 percent of total expenses. Our hospital room and board for the lucky few may account for the greatest health expense to Americans. Second may be the physician specialist and their team. A recent elective endoscopic surgery in a highly rated NJ hospital counted 5 billing team members. Teams are expensive since each wants to also charge for a 5 minute ‘rounds’ visit. Costs average $3-6,000 for 2 day stay.

Shop carefully: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

File your taxes for free

TurboTax and other for-profit tax prep firms are due to raise prices soon. If you have your documents, use your favorite software now and pay your tax due on April 15. The payment, if any, can be in April; the filing should not. The federal and state can cost you nothing at https://apps.irs.gov/app/freeFile/. Another site has no cost or restrictions: https://www.creditkarma.com/tax. And remember you can usually reduce income and thus tax by making a deductible contribution to your IRA.

Filed already: refund status: https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp

Save for a long life: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793

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

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

Mob money: “What the hell are we doing lending money to a guy [Trump] like this?”

Mobster getting rid of bad people; hiring those who love him: crying on our flag.

We are already in a dictatorship: Court: Congress subpoena worthless!

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

Bombing Afghans only 4 days after promising to leave. Did US expect fighters to farm?

Judge asks AG Barr why he misrepresented Mueller report to help President Trump

SCAMS/SPINS:

Bloomberg helped Opioid Kings Sacklers overcome bad PR marketing problems

Francisco Patino MI caught drug fraud $120 Mil and money laundering TV fake doc.

Gary Jones UAW caught embezzling union funds for self; defrauding gov.

Buy financials like you buy groceries: house or discounted brands have higher value.

Scammers use stolen SS to create refund: file even when you don’t need to file

Apple caught slowing down phones to sell newer ones: great trick cost $½ Billions

Toyota recalls 700,000 2013-2015, 2018-9 cars for failing fuel pumps

Annuity in estate plan: beware complications of income tax and inheritance law.

BEWARE: Broker regulator slacks off—fewer fines, bans, customer collecting.

Eric D. Lyons MA caught embezzled $570,000 using hedge fund profit promise.

Scams hit even the really smart: $400,000 con on RE mogul Barbara Corcoran

Pence, not experts, now in charge of corona since he did not “have anything else to do”

Mulvaney says that the “coronavirus is the hoax of the day" GOP has ‘hoax’ on brain.

You don’t have to go to China to catch the ‘hoax’: NWest has four new non-travel cases

Mobster’s ‘hoax’ just killed 1^st American: Pence claims “smoking doesn’t kill.” Pot smokers?

Tips to avoid the ‘hoax’: like the flu: wash and stay home; ask Pence to pray for you

GOP now blames the Pope and Hillary for the ‘hoax’: Trump blames Obama: SURPRISE.

Trump wants patients with the ‘hoax’ to pay for treatment/vaccine even if they can’t

Catholic Church sends child-abusing priests to work on children in a “host of countries”

Jobs

GM adding more than 1,200 jobs at Michigan plants: more crossovers and Cadillac cars.

Great health system: 42% of new cancer patients lose all of their life savings in two years

Medical suppliers are gauging us when we are in fear: wash hands with soap not Purell

Retire early: Time more important than non essentials; save $1,497 per month

Who owns your account now?

“I haven’t waited in a line in 10 years.”

America

: banana republic—elites avoid our problems

Oracle employees win 401k plan overcharge suit: few and overpriced options: stop cross-selling

3.050% mortgage: is now the time to buy/refi?

Miracle:

Trump deals with Taliban: 38,000 Afghans; 2400 Americans died: Cost us $2 Trillion

Our beaches gone: half of them could disappear by the end of the century

2 mi wide asteroid going 20,000 mph should pass us. Last one took out all but c. roaches.

February was the wettest month in

Britain

's recorded history

GOP-religionist Supremes to decide if we have choice on life/health issues: we choiceless

Inherited blindness treated with DNA editor: changing faulty DNA for right sequence.

IAN

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Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts

Friday, January 10, 2020

We pay $3,000 to subsidize taxpayers who avoid paying what they owe

The Treasury Inspector General for Tax Administration and outside groups claim that the IRS isn’t effectively auditing corporations and high-income individuals with complicated returns. Even with Trump’s generous tax cuts to the rich, some are not satisfied and avoid paying since there is little downside. With fewer audits/staff, 14.2% of the taxes owed are never paid. On top of that, most corporations pay nothing. Actually, we give them our money in the form of subsidies, grants, deferrals and credits. Congress and its lobbyists are the beneficiaries and are unlikely to give it more money to do the tough audits. Actually, a poor parent with EIC is more likely to be audited. It is easier to garnish the wages of someone making $30,000 than sue GE, Boeing, or Apple. Two thirds of corporations pay NO tax. They use shells, non-US headquarters and asset manipulation to avoid taxes on income earned in the

. Even the president uses tricks to pay nothing.

https://www.amazon.com/Most-U-S-Corporations-Pay-Zero-Taxes/dp/1514274116

Does it really make a difference to cut advisor commissions/fees?

Is it really important to move your investments to the lower priced generic? For instance, Trader Joe employees are suing because they are paying more for their 401k retirement than needed. It may not seem that the 2% you pay for managing your money and keeping a record of your shares and earnings is a problem. If you earned 25% every year like you did in 2019, then of course it isn’t worth suing your employer. However, they don’t earn 25% every year for you. The 2% of your balance EVERY YEAR is a big deal when you earn only 4% average over time. Let’s say you add $250 a month to your retirement fund. If your firm or advisor offered a low-cost stock index fund at 11% average for 40 years, you would retire with $2,169,740. If they charged 2% a year over time, you would retire with only $1,179,107. You gave about HALF to your employer or advisor just because they did not offer the best options for you. They chose the best options for themselves.

Earn 11% over time: https://www.amazon.com/You-Can-Beat-SoCalled-Wall-Street-professionals/dp/1986031373

Reducing income tax by contributing to traditional IRA

Congress passed laws changing the IRA rules: you can contribute $6,000 ($7,000 over 50) to your traditional IRA and take a deduction from income. The law ends the prohibition on contributing to an individual retirement account (IRA) after 70½. Individuals may continue contributing to an IRA at any age, as long as they have ‘earned’ income. BEWARE NEW LAW: If you were pumping up your Roth IRA so your heirs could have tax-FREE income for life you may have to change your estate: NO stretch ROTH. All IRAs must be exhausted in 10 years unless disabled/illness. Even though you have paid tax on this money if you converted your IRA, you may have to use a trust to create legacy income for them. You may also want to use your lower income years to convert your IRA to a Roth since your rates may be lower now with a deductible IRA. Also new: Part-timers can make pre-tax contributions to a 401k and an IRA.

Which is best for you? https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938/

MA fighting lobbyists to re-install fiduciary standard

The broker-dealer and insurance industries agree: They don't like the broad-based Massachusetts fiduciary proposal, which would blanket their respective industries with a fiduciary standard they’ve been successful in avoiding up until now. Trump responded to the industry lobbyists immediately after election to kill the Obama version of the duty that sellers must give us the best deal regardless of size of commissions. Now MA Galvin wants bad products to be off limits: MA would “deem it an unethical or dishonest conduct or practice for a broker-dealer, agent, investment adviser, or investment adviser representative registered required to be registered in Massachusetts to fail to act in accordance with a fiduciary duty to any customer or client.” Lobbyists claim small investors would be hurt by this rule because industry would avoid helping those with limited funds—folks who need help the most. MA GOP Gov caves to lobbyists.

We need sellers to follow fiduciary duty: https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275

Is your ex still the beneficiary of your pension, insurance, etc?

This is important. When you forget to change your beneficiaries on your pension, brokerage or life insurance, you may have a long legal fight to fix it. And your current spouse and children may hate you. Choices made in your former life may come back to bite you. Most people are not always completely thorough during their separations/re-marriage/divorce. They miss changing beneficiaries they named 20 or even 10 years ago. It could be a pension account at a former employer that is due to go to your ex at age 65 or a forgotten paid up policy with last marriage kids as beneficiaries. Sure, with a legal fight you may get it changed but who needs the fight. This new tax season is the perfect time to look at your overhanging past life choices. Safe than sorry.

Check your benes: https://www.amazon.com/Personal-Finance-Smarties-Not-Dummies/dp/1469973030

Advisor trend: retainer fees to avoid ‘hawking proprietary products’

Is your advisor acting as a fiduciary? Are they recommending what’s best for YOU or maximizing the leverage they have over you? How do you know the difference? As your portfolio grows, does your advisor reduce the standard AUM fee? 1% of $1 mil is better for you than 1% of $1.5 mil this year: the market went up 30%; not their IQ. Advisors use much more automation and model portfolios now. Subscription-based services are becoming common for clients with large non-tradable or business assets or the need to offset market volatility. Time to ask for a better price for ‘advice.’

Shop Advisor costs: https://www.amazon.com/DIY-Financial-Independence-Freedom-Workbook/dp/1088908500

Why most investors don’t need an annuity

Many are DIY investors—they have jettisoned their advisors since learning the John Bogle and Warren Buffett investment lessons: advisor costs detract from your earnings. Advisors and annuities can take up to HALF your earnings in fees and trading costs. Here are DIY's results for 2019. They are total return investors—selling shares equally across all 10 funds for their monthly RMD income in retirement. Some want protection from a down market and so they overweight Wellesley Income instead of buying an annuity: Wellesley’s 9.7% a year is not too bad to live on.

2019 Total Return Fund Long-term Return Longevity

31.5% 500 Index 11.2% since 1976

13.2% Energy 9.9% since 1984

28.0% Extended Market 10.7% since 1987

22.9% Health 16.2% since 1984

31.4% International Growth 10.6% since 1981

27.9% PRIMECAP 13.4% since 1984

27.4% Small Cap Index 10.6% since 1960

16.4% Wellesley Income 9.7% since 1970

30.4% Windsor 11.3% since 1958

29.0% Windsor II 10.7% since 1985

25.8% Average 11.4% *