Your Unbiased Advisor: how to make tax-FREE money

Showing posts with label how to make tax-FREE money. Show all posts

Friday, April 1, 2022

Best way to invest for retirement income

If you are like I was at my first day on the job for an employer, I had no clue about the company retirement plan. Yes, they gave me the papers but they were not in English—legal for lawyers. I could not decide which investment option to pick. I took the suggestion of the HR person and had them take 6% of my pay into a very conservative fund called a “stable value fund.” This was not a good choice at my age. However, they matched my tax-deferred contribution so I appreciated what I had. Investing at the same amount on a set schedule (payday) was good since I learned later that “dollar-cost averaging” is the best way to invest for the long term unless you have insider info like our representatives. Since no one knows whether the market will be up or down on any given date, it is best to invest on the same day every month. However, I did not learn until later that I should have chosen to invest in a low-cost stock market index fund instead of “stable value.” Stable value funds are for when you are IN retirement not when you have 35-40 to invest! After studying the most successful investors and fund managers, I learned that the best way to invest for retirement is to buy the shares of a cheap stock market index on a monthly basis for the same amount. “Almost no one who is operating honestly can maintain a persistent information edge over the millions of other smart investors who comprise the market.” As Warren Buffett says: "A very low-cost index is going to beat a majority of the amateur-managed money or professionally-managed money." Fidelity study of millionaire retirees confirms his advice.

The BEST advice: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

Is real estate a good investment?

Recently, the investment industry has become active in purchasing homes for investment. So does this mean that real estate is a good investment for the most working people? Most folks who own their own home have seen the value of their home increase for a number of reasons. For many new working people, there are fewer homes that are affordable. And for many older working people, where would they go to live in order to cash in on the higher home values? In the East, many older homes have increased in value: Average home cost $250,000 in 1991. By 2020, it was worth about $800,000. As an investment, a single family earns about 4.5% per year; not counting the huge property taxes here. Not a great deal long term for properties in the metro areas. However, a low-cost mutual fund of real estate provides over 10% per year. A real estate fund includes all types of properties and is comparable to the stock market index which provides over 11%. Therefore, a low-cost balanced portfolio has helped many investors earn over 11% a year for a long time. Low-cost investing beats high-cost advisor investing.

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

Buffett’s secrets to NOT losing investments

Leverage—borrowing money to invest—creates a double gamble. Buffett: “If you’re smart, you’re going to make a lot of money without borrowing.” All debt does is increase your risk. So we don't buy most Closed-End Funds (i.e., CEFs). We don’t use our broker’s money. Margin debt can rattle your mind. “And an unsettled mind will not make good decisions.” You not only lose any gains, you may lose your equity. Better to concentrate on finding value and using the magic of compounding.

https://www.amazon.com/Warren-Buffett-Millionaire-money-snoring/dp/1508887381

Will Social Security benefits be there when you need them?

Congress does not like to spend money for the important things. They like to give defense contractors, oil, gas and coal companies subsidies because that pays their election bills. They like to create tax loopholes so they and their friends do very well. They use insider information that is illegal for us to use. Since the Supremes 2010 decision to treat $ billion companies the same as you and I in terms of election gifts, Congress must do what these companies want. Because there are more old people and fewer working people, SS benefits will be reduced to 78% of normal benefits by 2034 according to SS trustees. Since Congress is unlikely to deal with this collapse of the single most important support for seniors before it is too late, older Americans will be faced with the poverty that existed before SS was created in 1935. Bread lines were daily work for many depression-era out-of-work workers. The wealthy could live overseas untouched and untaxed just like today.

Prepare now: https://www.amazon.com/Tax-Refund-Millionaires-Let-Uncle-Help/dp/149595644X

New car insurance data may help you save

More accurate tools allow insurers to offer the safest drivers the opportunity to secure a better premium directly. With 45% of drivers willing to switch insurance providers for savings and 69% willing to share data for discounts, drivers can leverage an insurer’s lower cost of signing new customers. Usage-based insurance (UBI) means you can save if you drive fewer miles than the average driver. Your smartphone and other devices may save you even more because sensors can provide accurate risk-assessment. Better drivers mean lower costs for drivers and insurers. Your agent will not call you to cut the premiums and their commissions.

You must shop to save: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

Have you taught your child how to make tax-FREE money?

Make sure you teach your kids how to create wealth the easy way. My parents were not investors. At my first job, I had no clue which investment option to use for my 401k contribution and company match. The HR person told me to put it into the 'safe' stable value fund. That was the worst choice at my age I learned later when I got my securities licenses. If I had followed their advice I would have ended up with $150,000 instead of a Wealth Reserve of $877,233 about 33 years later. I have used this 'Wealth Reserve' as I call it to have funds to buy low-cost insurance, to buy two homes and 5 cars with higher down payments or cash, and now to receive $2,500 a month in retirement supplement. Now your child can build an account that provides tax-FREE retirement income too.

Time is on their side: https://www.amazon.com/Give-your-child-leg-up-manage/dp/1096505355

?**********ACCOUNTABILITY**************?

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

The Path to Dictatorship: 2010-2030

Jan 21 2010 Corporations’ election-spending unlimited

Jan 6 2021 Direct assault failed: guns & bombs

Nov 8 2022 “Legal revolution”

Mo Brooks exposes dictator plot

GOP’s activist court

More coup conspirators ignore subpoenas

How Govt wastes our money:

Biden: wealthy to pay less tax than middle class instead of collecting what they owe

Trump Guilty of 'Numerous Felonies': lying about assets, tax evasion: 2024 dictatorship

Trump guilty: illegally obstruct Congress: his lieutenants ignore subpoenas: never jail

Will Trump and Jan 6 coup-attempt receive punishment: white-collar crime-free legacy

Ex-Im bank reauthorized 17 times: evidence that it is unnecessary: we subsidize Boeing

Russian sanctions not working: Oligarchs moving their assets to Turkey: US can’t grab

SCAMS/SPINS:

Biden wealth tax 20%; Average worker 32.9%: Buffett pays 17.7%; Richer pay 8.2% or $0

Wealthy have NO taxable income: Most wealthy use intricate legal/foreign centers for job/assets.

Hundreds of tax accountants ready to negate Biden new taxes: ‘double Irish’: audits down 72%

Rick Scott wants all to pay tax: start with big avoiders like Rick, Trump, his friends and others

FTC sues TurboTax to stop ‘misleading’ ads for free tax prep software: IRS free file

SEC asks advisors: act as fiduciary if taking hidden 12b-1 ‘wrap’ fees, wrong class fees

Apple & Facebook gave up our data to hackers pretending to be law officials: no warrant

Alpine Securities caught misusing customers funds, excess fees, no notice: defrocked

Naseem Mohammed Salamah caught stealing $968,000 promised diversify; ignored stmts

Edfinancial Services caught deceptive & misrepresenting forgiveness options to students

Michael Pellegrino Goldstone Financial sold notes from 1 Global Capital, a fraud

Hunter Biden $1 million deal China Energy: leveraging Dad’s history: bribery? Payoffs?

One dictator asks other for help in winning election again: What Putin gets from Trump

Prince Jared gave Jan 6 lawyers a piece of his royal mind: “truth and nothing but”

982,000 dead: 61% of unvaxxed are Republican: GOP trimming voters for 2024

‘No’ to anti-lynching bill: Andrew Clyde (Ga.), Thomas Massie (Ky.), Chip Roy (Tex.)!

Price controls for drugs: do you have to be rich to be able to afford lifesaving drugs?

Biden gets to the root of our problems, finally: “Putin is butcher” Russia complains.

Putin “smash and grab” Swiss watches in retaliation for taking his ‘secret’ bank accounts.

Putin to take East Ukraine: split East & West like Korea N&S: Putin killed 2014 plane

Fake protection against nuclear war: temporarily protect potassium iodide price double

Fake “Top Doctor” Awards had chosen journalist: friends nominate anyone: Just $289.

Recall Skippy with steel fragments for your “daily iron requirement”

Ikea will pay you to get its old furniture back: some restrictions apply!

Jobs

600,000 cyber security jobs that remain unfilled: Cyberseek

Companies making remote work long-term for now: saves gas

Corporate profits rose 25% in 2021 yet 1/3 of workers make $15 hour: $2,400 mo. gross

Who owns your account now?

Abortion bans by state map: where can someone in need get help

I know, people, not guns kill but counties with highest gun deaths lack any controls

FL teachers become morals police for state gov: teachers become behavior monitors.

RIA Eaton Vance WaterOak Advisors to CI Financial Canada

Navy announced it will christen a future ship the USNS Ruth Bader Ginsburg

Constellation Insurance to Ohio National Mutual

Miracles:

Antarctica ice shelf size of NYC melts into Atlantic: a first in history: move inland!

Vampire bats are the only mammals that can survive on a diet of just blood.

Alliance for Public Health shows American assistance reaching patients in Ukraine war

Covid supplies and tests via website search engine: https://www.covid.gov/

We can apply for Medicare online: https://blog.ssa.gov/apply-for-medicare-online

We can apply for Social Security online: https://www.ssa.gov/benefits/retirement/

We can apply for health care online: https://www.healthcare.gov/

IAN

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

Friday, March 18, 2022

Guaranteed income for life at NO cost

Never bet against America

Warren Buffett: Never bet against America; nothing can stop this nation. The stock market is having a sale. Everything is reduced 13%-20%. In the past, almost every time the market was down, it came back up the next year:

2018 down -4.41% 2019 up 31.74%

2015 down 1.31 2016 up11.93

2011 down 2.07 2012 up 15.88

2008 down -37.22 2009 up 27.11

2005 down 4.79 2006 up 15.74

2002 down -22.27 2003 up 28.72

1994 down 1.19 1995 up 38.02

Unless you speculate, play the market, or time the market, you can put time and the Miracle of Compounding on your side. Over time, you earn 11% in a low-cost market index fund. And now you can make it tax-FREE for retirement.

You only have to be patient: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513

Some economists predict recession

What kind of portfolio is best during our current special circumstances of recession and inflation and worldwide supply disruption? There is no easy answer so our best position may be to stick with a balanced mix of equities and debt. Most of my readers are sticking with the low-cost funds tracked by Vanguard’s Target Date offerings. Some retirees are relying on the blend of Vanguard’s Wellesley Income Fund with 60% bonds. Relying on low-cost investments makes sense since they prefer to limit their costs during a period of uncertain investment gains or losses. Some more adventurous investors are sticking with the 10 choice funds they have relied on for 10-20 years. We call them the Vanguard Top Ten. They include Energy, Health as well as large and small caps at a reasonable cost.

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

What is the minimal amount needed to get an advisor’s help?

In 2018, we needed help in creating a financial plan. We needed to know whether we would have enough money to fulfill our goals in retirement. We still had a mortgage so we wanted to know if we could stop working. Did we need to keep working to pay off the house? We needed to know if we would have enough income to live after retirement and take a vacation. We needed to know if the assets we owned would provide enough income from the IRS’ required minimum distributions. Since we had to take our RMDs and pay taxes on that amount each year, would we have enough to live on? Could we take out more for special events like a new car, vacation and emergency medical procedures? We interviewed three advisors in the area. We were declined by each because we did not have assets worth over $1 million. Advisors usually take 1-1.5% of your assets. They need at least $10,000 a year to answer our questions. I asked one what she recommended to get help with a plan. Luckily she told me about a financial planner nearby. We met and provided reams of financial information to the planner. She completed a respected software program that made estimates of our income and expenses to age 95. It showed the probabilities of making our goals and income and expenses each year. It provided the answers we needed. Probabilities are not guarantees so we kept our assets working for growth and income so that we maintain a margin of error in case there is a long recession. We paid less than a $1,000 for a 50 page plan and 2 face to face meetings. We are happy not to have to pay an advisor for the next 30 years: $300,000 saved for more vacations.

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

Tax deductions you can take to lower taxes

These are ways to reduce income and thus tax without itemizing. The standard deduction was increased to $12,950 for single taxpayers and $25,900 for married couples filing jointly. Charity cash gifts up to $300. Contributions to IRA for each of you up to $6,000 $7,000 for ages over 50. Contributions to Health Savings Account but you have to use a high-deductible plan. Student loan interest. Educators for supplies. Alimony for some. Self-employed health insurance premiums. Other deductions available:

Child tax credit.

Child and dependent care tax credit. ...

American opportunity tax credit. ...

Lifetime learning credit. ...

Adoption credit. ...

Earned income tax credit. ...

Some readers don’t take the IRA retirement deduction now so they can avoid taxes on their retirement income in retirement. They use a Roth IRA—a tax-FREE account for working people. They create a ‘Wealth Reserve’ for life.

https://www.amazon.com/Your-Wealth-ReserveTM-Tax-FREE-Investment/dp/1484954882

Guaranteed income for life at NO cost

Annuities cost a lot. There are 5 to 8 fees charged by an insurer and their agent to guarantee your peace of mind income. Most annuities will provide a monthly income for your life and your spouse. For an extra fee or higher cost, they will provide a COLA cost of living increase so that your purchasing power is not decreased over time. This is important since inflation of 3% can rob you of HALF your purchase power in 20-25 years. There are better solutions for maintaining a guaranteed income. First, Social Security will increase your income based on inflation rates. In 2022, recipients have an increase of 5.9% in benefits. If you waited to age 70 to start SS benefits, you have a very good low-cost annuity with COLA for the rest of your life. Second, if you have an IRA, pension, or other tax-advantaged account, you will be forced to take withdrawals and pay the taxes due each year. For most of us, this means taking an annuity-type payment stream for the rest of our lives. Because the amount is recalculated each year, over time the amount stays ahead of inflation since our principal is still invested. Third, for some, this means heirs can continue the income payments until the principal is exhausted. If your IRA, pension or other account has been invested with a large mutual fund family like Vanguard, you are receiving payments correctly calculated free of extra charges.

Go low-cost annuity: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

Have you taught your child how to make tax-FREE money?

Make sure you teach your kids how to create wealth the easy way. My parents were not investors. At my first job, I had no clue which investment option to use for my 401k contribution and company match. The HR person told me to put it into the 'safe' stable value fund. That was the worst choice at my age I learned later when I got my securities licenses. If I had followed their advice I would have ended up with $150,000 instead of a Wealth Reserve of $877,233 about 33 years later. I have used this 'Wealth Reserve' as I call it to have funds to use low-cost insurance, to buy two homes and 5 cars with higher down payments or cash, and now to receive $2,500 a monthly in retirement supplement. Now your child can build an account that provides tax-FREE retirement income too.

Time is on their side: https://www.amazon.com/Give-your-child-leg-up-manage/dp/1096505355

?**********ACCOUNTABILITY**************?

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

The Path to Dictatorship: 2010-2030

Trump/Tucker sorry Fox folks killed by Putin?

Trump: dictator is ‘genius’ bombing kids

How Govt wastes our money:

IOWA cancels teacher education training on race and equity

Congress sides with Big Pharma: we owe $195 billion medical debt: 90% has insurance?

IRS auditing poor to collect $100; let rich avoid $1 TRILLION taxes: we lose $1 Trillion

How Congress decides: Industry spent $3.7 billion as 3,700 new orgs join; Reps avoid us

TX judge temporary stop to state charging gender-care parents with child abuse: violates Title VII