Are the zero fee ETFs for you?

Are the zero fee ETFs for you?

When marketing firms claim it is free, BEWARE. New firms are promising 0% expense ratio. Read the small print. ETFs were created by brokerage firms to make money on the ‘index’ trend started by Vanguard. Vanguard is sold directly and traders are not welcome. So brokers/advisors can only make money when you trade an ‘index’ they offer. Because of all the money moving to Vanguard for low fees, brokers are hurting. Brokers need fees so note that there are brokerage delayed or hidden costs. Although an ETF may have no expense ratio, the trading cost of that particular fund may be exorbitantly high. Beware the bid/ask spread for newer funds. Beware the tracking error. Zero-fee funds lack a performance and fee history, making it impossible to gauge their tracking error. Beware the promo price. Fees are temporarily waived: investors will start paying full freight after the fee waivers expire. Once they have your money, they may impose 0.30% or more and you have lost your advantage over Vanguard’s 0.04% stable non-profit structure. Brokers are in it for the money. Pay less; earn more, over time.

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

Trump’s new tax avoidance scheme clarified

Trump’s mob has been working hard to make this tax avoidance plan, called “opportunity zone,” a success in time for his 2020 rerun for Prez. Investors previously shied away from developing ‘distressed’ areas, Trump said, but when they see tax rates “all the way down to a big, fat beautiful number of zero” they start “liking the location.” Nothing gets the election momentum going like the promise of ZERO taxation to his wealthy supporters. The fact that the rest of us are going to have to pay more to cover his ZERO tax plan for the rich, won’t occur to his political base. Momentum is a powerful tool for an incumbent candidate. Investors claim the breaks by taking capital gains income they’ve earned previously and spending it in the distressed areas. This provision allows them to defer those tax bills until the end of 2026, and it can reduce the total amount of tax they owe. New investments in opportunity zones can grow tax-free if investors hold them for at least a decade.

Make your earnings tax-free too: https://www.amazon.com/Tax-Shelter-Young-Americans/dp/1500426520

High schools could teach this one chart and correct financial IL-literacy.

$200 a month for 35 years in low cost stock funds = $1.2 million 

My former industry, financial services, could release our schools to offer a basic course in investing but they don’t. For most young Americans just beginning to save in their first jobs, this ‘education’ could be their real life saver. The chart illustrates the Miracle of Compounding. Using a simple analogy of buying a part of all the companies they know, they would see the real returns of asset accumulation. If it is true that most of us don’t have $5,000 saved for retirement, this chart could change our attitude. Understanding that investing just $200 a month could make the difference in the future of the American Dream for many. A simple low-cost stock index fund would be the foundation of their investing strategy. Warren Buffett has proved that most us would be better off if we had learned this simple truth early in life. However, schools are run by political people and they don’t want to rob the industry of their future $80 billions in annual trading revenues. Forced savings (our tax refund) could be an answer since the average refund is $3,000.

$1 million in 40 years: https://www.amazon.com/Tax-Refund-Millionaires-Let-Uncle-Help/dp/149595644X

Is ‘direct indexing’ right for you?

Change the name and brokers and advisor can sell it. That is the conclusion some investors are coming to. Financial industry has tired of promoting ETFs so they came up with a new name for selling stocks. ‘Direct Indexing’ is just buying a bunch of stocks. The new name is to capture new clients who never realized that you don’t pay capital gains if you don’t sell your securities. If you just buy and HOLD securities (Warren Buffett’s strategy) you can avoid the capital gains of mutual funds. Further, if one of your broker/advisor’s picks goes bust, you can sell for a loss against a gain. ‘Tax-loss harvesting’ is another benefit they claim. DI can shape the outcomes that each client’s goals require, they claim. So what’s old, is new again. Follow the master investor.

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

Are these ‘worst’ vehicles right for you?

At the bottom of the list of 32 worst new is the Acura RLX, Caddy ATS, Chrysler 200, Suburban, Dodge Journey, Dart, Ford Fiesta, Focus, Infinity Q50, Cherokee, Compass, Patriot, etc. At the top is Fiat 500X, 500, Grand Caravan, Acura ILX. Unless you don’t care about reliability and projected durability according to JD Power and Consumer Reports, stick with the Best Used list by type, user and price: https://www.carmax.com/articles/best-cars-ranking

Take all your discounts: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

Can you live on 80% of your SS benefits?

In 2035, SS trustees say we will begin receiving about 80% of our current benefits. Congress is not likely to fix this shortfall since it would require radical change—taxes and or age change. For those earning over $133,000, the FICA tax ends. As Warren Buffett and other wealthy people say, “I'll probably be the lowest paying taxpayer in the office." Clearly, Mr Buffett will never need his SS benefits. But since the average worker’s real wages go down and their boss’s keeps escalating, the answer seems obvious. Ending the cap on FICA tax for the wealthy would help save SS benefits. Workers’ wages have not kept up with their boss’s nor with inflation, so inevitably, they will have to rely on SS benefits MORE, not less. Few working families can afford to create a retirement income to supplement SS benefits. Fewer businesses offer a paid pension and health care package. More retirees keep working—since 2000, more men and women work. Since most of us are not familiar with the miracle of compounding, we don’t realize it is time, not huge savings that make the difference in the total nest egg we could create. $16,000 grows to $1million. Schools can teach it!

Use compounding to help: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513

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Make America, “The Don”, Great Again

Senile Psychosis or Parkinson’s delusions? quetiapine and clozapine

Truth isn’t truth, his lawyer says

“The campaign -- for him -- was always a marketing opportunity.”

Two Americas: A Banana Republic? Do we really want an infant king? Daddy Putin!

Will voters who need ObamaCare vote for it?

Can a mob boss snub Congress?

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How Govt wastes our money: Congress spends $1.3 Trillion we don’t have! 

GOP Tax Cut. The cost of interest on the national debt runs $896 million each day.

Your portion of this debt is $65,600: Avoid the future taxes to pay the debt and interest.

Congress continues to allow our opioid addiction WV ‘killing fields’: heavy promotions

SCAMS/SPINS:

Trump’s Treasury Mnuchin etc sued by Sears to retrieve ‘stolen assets.’

Russia has your vote, thanks to Don: Between hacking machines and media, no defense.

Trump has taken health insurance from 1 million Americans “The party of health care.”

Trump fails to back ‘violence against women’ resolution again. GOP OK with abuse.

National Asset Management caught breach fiduciary duty: wild trading—fine, no jail.

Robare Group caught failed to disclose conflicts: ‘kickbacks’ on sale of Fidelity funds.

"Jeb" Bashaw, star TX broker, caught ‘borrowing’ client funds—fired but no jail

Scammers as CEO tell HR to send your pay to their bank: Watch your D Deposit close.

Prosper Funding online lender caught overstating returns: fined $3 million, no jail

Fiat recall 2013-16 320,000 Dodge Dart: rolls away by self; defective transmission cable.

BEWARE: DNA test not accurate test for cancer—90% are wrong! Then steal our ID.

It took 32 kids’ deaths for Fisher-Price to recall “Rock ‘n Play Sleeper”: capitalism kills.

Professional opioid drug pusher charged finally: killed 400,000 of us since 1999. 

Some 11 brands of bottled water with arsenic have been sold in stores; stick with tap!

8,000 Boy Scout leaders have been accused of sexual abuse: law ignores so no jail time.

Parents robbing kids of mature independent future. Will the kids take care of parents?

MyPillow caught using fake research to claim ‘better’ sleep: fine is just cost paid by us.

Caddy headlights may not work: Buyers never told like ignition switch; GM knew.

FL GOP says you must pay court to vote.

GOP near WH:  “A normal person would have been indicted for this.” ‘obstruction stuff’

If you ignore Congress subpoena or a Trump judge’s order: Trump as dictator.

Mueller ignores Mob Boss family Russia deals: OK to conspire with enemy & obstruct!

1. “Russia, find Hill’s emails” 2. Don’s Mob made Russian deals 3. Russia tricked voters 4. Polling data payoff 5. Special Russia deals 6. Fire FBI 7. Refuse give testimony.

REDACTED Mueller Report here: https://thehill.com/policy/national-security/439485-read-muellers-redacted-report: tell lawyer to stop probe, stop probe, mislead public.

Trump: ‘nobody disobeys my orders’ except when unlawful, he forgets, it’s Ivanka.

The Mob Boss can never go to jail: Trump has Kava as Supreme so no indictment.

‘No man is above the law’ … well up till now. Dictators nullify courts first, then votes.

Supremes protect Don’s ‘Orders’? – GOP: ‘Sure, pres can change Constitution anytime.’

Jobs:

Some employers offering more education benefits: where “you can thrive.”

In 1975, 60% of workers eligible for overtime pay: today only 6%. Trump to cut more.

Who owns your account now?

Is Jeopardy fixed? Gambler knows everything: memorize the cheat sheet?

Half of all mutual fund investments went to Vanguard: low-cost =  earn more!

Miracle:

When you say “I can’t do it,” remember Sara, winner national handwriting competition.

Philip Morris sells ‘death’ sticks AND now life insurance. How’s that possible?

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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New ways wealthy avoid taxes and we pay theirs

New ways the wealthy avoid taxes and we have to pay their share

The corporate rate was lowered to 21% (effective rate is 12%), so “today we can think about using corporations even though it means two layers of taxes, while historically we might have said that it doesn’t make any sense to have two layers of taxes,” one specialist says. This means the rich avoid 37%, 35% and 32% tax rates with income of $157,500 or more just by taking income as a business. They deduct their expenses as business deductions and pay under HALF the official rate. Even if they have the corporate and individual tax, they design income to the lowest possible level and end up paying less than we do. The wealthy have figured out how to avoid taxes. For instance, Warren Buffett, with $90 billions, pays only 17% total tax: http://www.youtube.com/watch?v=Cu5B-2LoC4s; Mitt Romney only 14%; John Kerry only 13% and Apple just 9.8%. Buffett found that his staff pays 32.9%—DOUBLE their rate!

They can use ‘carried interest’ as a Trader Business of their family office to deduct investment expenses, which were ended by the tax law. And remember, they can deduct their contributions to a deferred comp plan and let the company pay for their rides and entertainment and part of their dwelling. They can use their tax-deductible foundation to pursue hobbies or pay off debts. They can also bunch up their deductions to take full advantage of the new law. Inequality in net worth rises by 2020 election.

Avoid paying wealthy people’s taxes: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

Will you have enough?

According to 2016 govt data, “older households” (over 65) spend an average of $45,756 a year, or roughly $3,800 a month. That’s about $1,000 less than the monthly average spent by the average U.S. household. Of course your spending in retirement will vary a lot so it is helpful to compare ‘average’ to your estimates. For instance, housing expenses average $1322 a month. But if you live in a high property tax area, your tax or rent will be more. Rents are above $2,000 in N. NJ. Compare the average in transport, food, personal, insurance, charity, vacations, hobbies, etc. Now, try estimating your SS benefits, pensions, IRAs, 401ks, other income. Average SS benefit we know is $1,342 a month. If you both have similar salary and work records, you can double that--$2,684. That leaves about $1,116 from all your other sources. Don’t use the popular 3% or 4% withdrawal rate—that worked when you could earn 6% at the bank. Markets change every year. You can estimate what you need and then you will know whether you should keep working.

By age 70, you must take your RMD from any tax-deferred plans. You can also increase your SS benefit each year by working past age 66 or 70 because SS recalculates your benefit each year with the HIGHEST 35 years of earnings, including those you earn after you begin receiving benefits. Perhaps you will have a surplus of income over expenses. Check 17 ways to use your RMD: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

Why our children don’t know how to invest for the future

Only 5 states require schools to teach financial literacy. They don’t know compounding builds wealth or how to make wealth earnings tax-FREE. This leaves our future adults with no way to secure their future unless they inherit money. Employers are dumping pension plans en masse. In 1983 there were 175,143 plans, but in 2008 there were only 46,926 plans. So most employees have no idea how to replace the plans they have lost or never had. 401k was supposed to be the supplemental plan not the center piece of retirement. Now you know why most people are not ready for retirement and when SS is cut in 2034, this country will have the poor living on the street in the thousands. Warren Buffett is not a salesman for the financial industry so his simple strategy is the best way for our high schoolers to learn compounding and investing. His strategy requires time not big bucks—10% of salary is all the young people need to grow their money to a Wealth Reserve for life. In fact, if they or family contributed $2,000 for 8 years by age 27, they might have over $1 million by retirement just from the Miracle of Compounding.

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

GOP will end health care for Americans with pre-existing condition

GOP faced town hall outrage as it tried to end ObamaCare. Many people learned to love some benefits of ObamaCare. That included the expansion of Medicaid, allowing young people to stay on their parents’ insurance up to age 26, and forbidding insurance companies from denying anyone coverage or charging them more because of pre-existing conditions, which just about all of us either already have or will one day have.

The popularity of those provisions made repeal politically dangerous, so Republicans decided to leave the popular parts in place and try to repeal only the unpopular parts. Even that, however, proved impossible to do, and in the end they settled for a small morsel: Trump’s tax cut law repealed of the individual mandate by reducing the fine for not carrying insurance to zero.

Now TX leads a new lawsuit from a group of conservative states seeking to strike down the entire ACA. Trump has taken a position in that lawsuit that is just dumb. Trump will not defend the law that requires insurers to cover all his supporters with pre-existing conditions. They will lose coverage because of outrageous premiums on their conditions.

Trump and the GOP will have a hard time in 2018 since most Americans want coverage.

Buy only what you need: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

Did you forget to sign up for Medicare on time?

Did you mistakenly stay on your old private insurance plan (ObamaCare) past age 65? You should have switched to Medicare. Now you are stuck with costly lifetime late-enrollment penalties on your Medicare premiums. Until now! You can fix this problem is Sept. 30. If you have health insurance at work, there is no need to worry. You sign up when you retire. This late penalty forgiveness ends soon. Avoid the annual 10% penalty as higher premiums for Part B—doctors. Visit your local SS office to see if you qualify. Read instructions: bit.ly/2Jyzx8s. Bring all your health care paperwork, including evidence that you have been enrolled in a marketplace plan. 

Get all the coverage you already paid for: https://www.medicare.gov/pubs/pdf/10050-Medicare-and-You.pdf

Have you felt the wage increase?

Yes, real (after inflation) wages are going up after years of decline. The larger fact is that real hourly wages have been generally rising since hitting a low point in 1994-95. As of April, they were 19 percent higher than that low point. However, they are 1.5% below the highest point reached in 1972. Average workers’ wages have remained below the high of $9.40 adjusted for inflation. To make it up, we work more low pay jobs. 60% of American children are on Medicare or CHIP because their parents can’t afford health care or don’t receive it at work. Paychecks are rising even faster than hourly wage rates, because part-time workers are finding more work and full-time workers are getting more overtime pay. Inflation-adjusted weekly earnings for production and nonsupervisory employees have risen 1.4 percent under Trump, after rising 3.7 percent under Obama.

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

SCAMS: Beware the ‘guaranteed interest payments’ scheme

Steven Pagartanis, NY stole $8 million promising guaranteed monthly interest payments to his customers. He said they were invested in Genesis Land Development of Canada. There is such a firm but when I emailed them, they say Pagartanis’ investments are unknown to them. Since 2013 his firm Lombard Securities never checked his promises and no customer ever confronted him. Apparently, Pagartanis kept up the “above market” interest payments until this May. As in many Ponzi schemes, the payments and statements eventually run out ala Madoff. Usually the original investments are spent or hidden by the perp. Lombard is required to supervise its brokers but Lombard apparently has failed with other brokers and their non-traditional securities. Lesson: don’t assume your broker if offering you a legal deal if 1) the deal is great—above the market returns; 2) the firm or broker has a record on BrokerCheck; or 3) you don’t verify your money went to place your broker claims. In this case, you might have suspected something from broker record of not disclosing annuity terms to his client in 2013 and leaving 10 firms and joining 10 firms since 1996. Unfortunately, the industry lets bad eggs move to new firms and bad firms hire them. It is all about making money--caveat emptor and white collar crime is NOT a priority for Sessions and Trump.

Get an unbiased opinion before buying: https://www.amazon.com/Pimps-Wall-Street-money-middlemen/dp/151525254X

Is a safe-deposit box right for you?

Are you really paying $150 a month to the bank—$1,800 a year for a safe place to keep your goods? Over time that is costing you $1.3 million if invested in simple index account like Warren Buffett recommends. That might come in handy if you face unexpected medical or long-term care expenses 30-40 years from now. Consider that you already have insurance to cover jewels and other replaceables. Most of your important papers can be duplicated. Deeds, wills, list of credit cards passwords, passports and other information items are not going to be available to your heirs when you pass unless the box is held jointly. Your executor needs a court order and you won’t know since the will is off limits to you. For theft and fire safety, a home safe is more useful. You have the info and items at hand when you need them. A good safe costs $150-$250. It can be secured and hidden at home. It is fireproof and waterproof. Write the code down in a email to yourself. If you have fire or water damage, you can retrieve it from offsite computer or phone. You will need the $1.3 million later so use Buffett’s advice.

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

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Make America, “The Don” Great Again

The Path to Dictatorship

“I have the absolute right to PARDON myself …”

“I could shoot someone on 5^th Ave and not lose voters.”

Only a criminal looks to a pardon for a defense

 “I have absolute right to do what I want with the Justice Department”

Trump’s Gestapo ICE troops break into house in front of kids

Immigrants not human, but "animals" Hitler/Stalin agree.

Trump takes children away from the “animals”

‘I’m the only one that matters’ Mob Boss Don, Nov 3, 2017

Loyalty to The Don above country. Treason? Above the Law?

Constitution: no clause for ‘absolute right’ to pardon

Trump: I can’t obstruct justice since I run justice

The Don did not invent the ‘big lie’ but he learned it well from an expert.

“When president does it that means it is not illegal” Nixon

So a President can never be mistaken?

Trump to put child refugees in prison camps on military bases

Justify separation with Bible which also says ‘kill adulterer’ Trump

Trump to refuse to answer special prosecutor’s questions: Above the law?

FBI finds answers in ‘The Don’s’ consigliore’s office/home/hotel

“I have nothing to do with his [Cohen] business”

[except when I pay him to pay off sex partners who could leak]

Trump thinks FBI subpoena on lawyer is “Attack on our country”

Trump thinks the govt is ‘conspiring against him.’

Trump: I decide which crimes are minor fines; lets criminals go.

 (Dictators often have delusion they are being attacked by insiders)

Trump ignored intelligence community message ‘we are under attack.’

Trump gives Putin control of election: eliminates U.S. cyber advisor

Treason definition: ‘giving them aid and comfort within the United States’

Putin’s influence: Manafort, Flynn, Gates, Page, Stone, Papadopoulos, Sater, Zwaan  jailed, Kilimnik, Prince, Jr, Jared, Sessions, Cohen, Yohai, Freidman

Fake ‘Witch Hunt’ produced 5 guilty; 20 indictments, 75 charges.

Putin controls power utilities, 21 state voting files, Trump slush fund, networks

Russian SS has ‘pee’ tape of Trump

Trump lied about time making ‘pee’ tape. “My head never hit a pillow” he admits.

“The election is going to be rigged—I’m going to be ‘honest’” 

GOP voter suppression a success: Dems lost --GOP poll workers moved voters’ districts

Trump to end Free Press 1^st Amendment access since not positive to him

Trump can “adjourn them [Congress] to such Time as he shall think proper.” Art II, Sec 3

Can Trump postpone Nov 2018 election using excuse of Putin meddling needs fixing?

GOP controls 31 state houses

(Dictators in some countries start their régimes that way!)

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How Govt wastes our money: Congress spends $1.3 Trillion we don’t have!

Only people who don’t know our government secrets are the people who pay for them.

Can single-payer health care work: US spends twice as much for fewer people than others

IRS has only few agents who can track tax evasion so this crime pays; US to be Greece 

Trump advisor says his tariffs could wipe out tax cut benefits—higher costs for all.

SCAMS/SPINS:

Trump changes his mind on tariffs under pressure: We have surplus with Canada!

Trump to pardon celebs who don’t need pardon. “Those who don’t read history are doomed...

Trump puts tolls on the Internet so we pay more and corp get special fast lane.

Trump EPA head leaning on The Don’s network for a job EPA staff as job advisor. 

Trump says he ‘trusts’ Kim and ends military exercises: nothing in return--Compare Bush

Trump sold Kim on real estate and beachside hotel opportunities. Korea Trump Tower

Cryptocurrencies lose $42 billion on news of S Korean exchange hack

Trump manipulated our news sources to win election in key states: 66% of us affected

Trump de-regulation of toy makers means more harm for our kids: Mattel higher profit

Trump is purging govt workers—loyalty to him personally, like cult leader or mafia.

BoA Merrill Lynch caught overcharging for bonds by lying about the costs

LPL caught selling illegal unregistered securities and not supervising brokers.

Early Madoff Ponzi investor gives back $280 mil to his network who didn’t know Bernie

Jobs:

Big oil needs workers no matter what education: $140K

Coastal towns need sea walls by 2030: Antarctica’s ice melting at increasing rate. 

Child care/reform school workers/guards for keeping babies & kids of immigrants in TX

            Parent told kids going for showers and clean clothes — but never returned. 

Who owns your account now?

Supremes decide you lose your vote in OH – state has power to purge you at will.

We don’t really own our Alexa Amazon account so we may not control recordings

Virtual currency gambling not going well—lost HALF value so far in 2018

Time-Warner to ATT—Cohen got it done: How Govt works against US

Fox to Comcast?

Can we trust Ari Melber to explain the legal case against POTUS? Steele?

Miracle:

Teacher gives $1 million in scholarships to special ed children she loved

The dictators met for a deal: Why pretend anymore—Trump TV has it right

"Regardless of what happens in that meeting between the two dictators" FoxNews calls it.

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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