Our 'reps' benefit from tax evasion--they own the stocks!

Our ‘reps’ allow companies to avoid paying fair share—workers pick up debt

Tax rules written by people paid for by American multinationals give them enormous incentives to park their earnings outside the United States even without using a fake address like Pfizer. Executives are doing what is rational for themselves but it means that those of us who work in US are forced to tighten our belts, receive fewer services and mortgage our future with debt to China and others. Politicians promise us lower taxes and greater military spending to get elected. This ultimately means cuts to Social Security and Medicare for the working middle class.  

Pay only your fair share: http://www.amazon.com/Your-Tax-Haven-Tax-FREE-Americans/dp/1482659441

Where our “Reps” put their investments—with tax evaders!

30 percent of senators and 20 percent of representatives "held assets in biomedical and health-care companies, or in specialty funds set up to invest in those industries, during 2014." The investments totaled upward of $68 million—more than lawmakers' combined investments in the defense and construction industries—and were concentrated on such major multinationals as Pfizer, Johnson & Johnson, and Merck. While this may appear to be a conflict of interest, there is nothing illegal in this practice.

You can beat Wall Street too: http://www.amazon.com/Beat-Wall-Street-PATIENCE-Investing/dp/1514171074

Should America limit the prices we pay for drugs and devices?

Martin Shkreli hasn’t changed. If anything, the provocative pharmaceutical CEO — who became “the most hated man in America” earlier this year — thinks he didn’t go far enough when he hiked the price of Daraprim by more than 5,000% overnight. “I would have raised prices higher,” Shkreli vowed on Thursday, after being asked how he would re-do the past three months. “That’s my duty.” Maximize profits for wealthy owners or keep price within range of average American who needs it? This is our challenge.

            We pledged: “Life, Liberty and the Pursuit of Happiness” The phrase gives three examples of the "unalienable rights" which the Declaration says has been given to all human beings by their Creator, and for which governments are created to protect.

But if only the rich can afford drugs that give life, are we hurting ourselves?

Are drugs—good health—any different than utilities or water?

Congress Prepares Huge Tax-Break Giveaways for 2015

Despite GOP whining of overspending, they give tens of billions of dollars in tax breaks and other goodies to just about every conceivable interest group – from well-heeled corporate executives and film producers to rum makers, NASCAR track owners, and horse breeders. None of these breaks are paid for—our “reps” just add $87 Billion to the credit card like the wars they never declared in Afgan, Iraq, Syria, etc. GOP has plans to make business depreciation permanent costing $450 billion through 2025.

Avoid paying their taxes: http://www.amazon.com/Tax-Free-Living-2012-strategies-build/dp/1477452702

Vanguard is eating Wall Street’s bonus

Vanguard mutual funds – investing in no-sizzle index funds at low cost –is taking business from Wall Street firms at $20 Billion less profit this year alone. Their loss is your gain.

Avoid the Pimps: http://www.amazon.com/The-Pimps-Wall-Street-middlemen/dp/151525254X

Is a hedge fund or alternative investment right for you?

Billionaire investor William Ackman's Pershing Square Capital Management hedge fund lost 2 percent in November and ended the first 11 months of the year with a 17 percent loss. On the other hand, if you had gone with Vanguard’s 500 index fund you would be up by 3% for the year and up 13% a year for 5 years and 11% a year since 1976.

Take Warren’s advice: http://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

The top reality TV Show in America!

Does our President need to be rational and truthful?

            NO It’s entertainment like Apprentice—fake calamity for money!

“I won’t do the debate unless they pay me $5 million; it goes to wounded warriors vets.”

Cruz: "The overwhelming majority of violent criminals are Democrats." They vote?

            On women’s health: “… we don't have a rubber shortage in America.”

Carson: refugees can live in camps forever “All they need is adequate funding.”

Fiorina: “I will not be bullied into telling the truth.” RE: rant on “baby parts” channeled      by CO gunman on Planned Parenthood?

Trump: tirade on immigrants channeled by Boston thugs beating up homeless?

            Thinks 100 black pastors were bullied into NOT endorsing him

            "thousands and thousands cheered” the collapse of the WTC in New Jersey.

Christie: “It didn’t happen and people can say anything, facts are the facts.” Right!

Cruz: Planned Parenthood attacked by “leftist activist”!

Carson: called for a “rational discussion.” … on Joseph building the Pyramids???

            “I would not just stand there and let him shoot” 355 mass shootings in 365 days

Bachmann: 70 percent of refugees are “gang-age males” who rape non-Muslim women.

Obama: “No boots on ground” BUT sending special forces do raids, free hostages and capture ISIS leaders in both Iraq and Syria. Don’t they wear boots?

We need regulation—GOP is wrong—companies would not fix bad products on own

See this: http://www.amazon.com/Unsafe-Any-Speed-Ralph-Nader/dp/1561290505

Regulators stop drug company patent abuse: “Some patents and extensions to patents             represent an unreasonable use of government regulation to enshrine monopoly             power to the detriment of the public at large,” Mr. Bass said. “This system must      be fixed or we will continue to pay more and more for the same old drugs we’ve          been buying for decades.” Generic drugs are bought out so we pay higher price    and for longer time.

Wells Fargo caught encouraging employees to open unauthorized consumer accounts and             then charging those accounts phony fees to meet sales. 

Scott Valente, East Greenbush, N.Y., caught stealing $10.6 million; promised 36%.

Clarity Services and Tim Ranney caught illegally obtaining consumer credit reports.

Alpha Fiduciary and Arthur T. Doglione caught misleading clients with high returns.

Regulators: Any person on anti-terrorist "no fly" list can still buy assault weapons. WoW

            Even Daily News is upset with lack of any legislation to stop our mass murders!

Persistent inequality hurts economic growth over the long run

Brilliant deduction by Morgan Stanley who sees it undermines incentives to work hard, get more education and improve skills. It may undermine trust in policy makers and social institutions, and lead to economic policy solutions such as increased market regulation, protectionism and anti- immigration measures. "In contrast [to post WWII years], middle-class aspirations are now running up against the wall of job and retirement insecurity." Advice: “That will benefit companies such as Nestle (Swiss), which is successful in catering to both higher- and lower-income customers.”

Fight inequality—use your IRS Tax-FREE account:  http://www.amazon.com/Create-Your-Tax-FREE-Financial-System/dp/1466367466

Do you have one? 7 cars buyers regret buying most

Consumer Reports’ annual survey of 230,000 car owners reports six other less obvious vehicles that led to a miserable experience. The seven cars from each category they rank are:

·  Jeep Compass, which exists only to tell other people you make poor life

·  The Nissan Quest minivan, slammed for bad visibility and a frustrating CVT

·  The Mercedes-Benz CLA, which—surprise!—feels cheap

·  The Nissan Altima, called “horrible” and “irritating” for its handling

·  The Hyundai Veloster, which felt cheap and underpowered

·  The Nissan Frontier, dinged for bad fuel economy and a terrible turning radius

·  And the Kia Rio, blasted for worse fuel economy than advertised and a harsh ride

HOW CONGRESS WASTES OUR TAX DOLLARS

Special Inspector General John F. Sopko has spent years documenting waste, fraud and abuse in the U.S. military’s efforts to rebuild war-torn Afghanistan. We have spent $110 billion on reconstruction projects in Afghanistan. When adjusted for inflation, that total exceeds the value of the entire Marshall Plan effort to rebuild Western Europe, WWII.

=More than $8 billion in spending on counter-narcotics efforts in Afghanistan that have “failed by every conceivable metric. Afgans grow poppies like we grow corn.

=The purchase of nearly $500 million worth of airplanes that never could fly and had to be turned into scrap.

=Construction of a building that literally began to melt when it rained.

A $500,000 health clinic that lacked water and electricity. Newborn babies had to be washed in a nearby dirty river.

Pentagon's $2.7-billion "zombie" program of radar-equipped blimps wreaked havoc on parts of the East Coast. Despite its well-documented deficiencies, lawmakers from both parties are planning to continue funding the system.

Do contributions to lawmakers have anything to do with it? 

SCAM

Are online product reviews fake--written by the seller? Check http://fakespot.com/

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Save $3,000 a year

Save $3,000 a year on your 401k or IRA

There are over 14,000 mutual funds, 1,000 ETFs and thousands of other places to put your money because managing money is very profitable. It costs managers very little to invest your money so your fees of 1-3% are almost all profit. Paying your fees, which increase every year, can take 40% of your nest egg’s potential total because of compounding. Paying fees every year can take $400,000 during your lifetime. Ask your HR or IRA person for the lowest cost stock or balanced mutual fund and save. Use our Guide to help you get what you pay for: http://www.amazon.com/Get-What-You-Pay-For/dp/1492384100 

Are hedge funds right for you?

Many hedge funds don’t report returns publicly so it is hard for investors to judge. The bulk of hedge funds are positively correlated with stocks making them a poor choice for an alternative to stock funds. However, they underperform equities in up markets and outperform equities in down markets, according to the work of Fung and Hsieh. In fact Warren Buffett made a bet with one hedger in 2008 that the S&P500 would outperform his 5 hedge funds in 10 years. So far, the Vanguard 500 is ahead, 8.69% to 0.13%.  

Patience NOT leveraged trading wins long term:

Even wealthy investors don’t know how much they are paying

Instead of making it clearer, regulators are allowing advisors, brokers and agents make the actual costs even harder to find. The industry is migrating to complex “hybrid” schedules of fees and commissions that blur the 1% clients think they pay into 2-3% they actually pay. “It's all disclosed, but it's hard to make the fine print any smaller.” And the wealthier a client is, the greater the opportunity for a financial institution to pile on fees by investing his or her money in private placements and partnerships that transact business with affiliates, industry observers noted. Investment bank clients with $10 million and up think they're paying 50 to 75 basis points for advice, he said. In truth, they are paying 300 to 400 basis points. Typically, this a partnership or hedge fund with a truck-load of documents that only lawyers read.

Switch and keep more by using mutual funds operated at cost: http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137

ObamaCare program glitches like Apple’s and Mercedes’ glitches--NEW

A number of iPhone 5s owners are reporting that their new smartphones are displaying the feared "blue screen of death" (BSOD) after using certain apps, and then launching into a reboot. The contractors responsible for the exchange—CGI Federal for the website itself, Quality Software Systems Inc. (QSSI) for the information "hub" that determines eligibility for programs and provides the data on qualified insurance plans, and Booz Allen for enrollment and eligibility technical support—are scrambling to deploy more fixes. 

So sign up next month.

We never buy the new car model for the same reason. Mercedes-Benz recalls 11 different models due to software glitch ..

Health care costs rise at slower pace

In 2013, U.S. companies and their employees saw the lowest health care premium rate increases in more than a decade, according to an analysis by Aon Hewitt. After plan design changes and vendor negotiations, the average health care premium rate increase for large employers in 2013 was 3.3 percent, down from 4.9 percent in 2012 and 8.5 percent in 2011. Buy only what you need with discounts: http://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

Getting over the learning curve

Young people are showing interest in buying insurance through Maryland Health Connection, the state marketplace created as part of federal health care reform, with those under 35 making up a third of those exploring the organization's website. Women tend to be better planners. http://www.amazon.com/Ensure-Your-Financial-Health-Wealth/dp/1466388293

Teens need to use Buffett’s advice

Nearly half of teens (49 percent) report feeling pretty clueless about money management, according to a new poll conducted by Opinion Research Corporation. The survey also identified one of the reasons behind this lack of financial knowledge: 90 percent of teen respondents said they're not learning everything they need to know about money management. There are plenty of online resources: http://www.amazon.com/Financial-Literacy-Steps-Success-Money/dp/1491044616

Sandy storm victims still waiting

Joanne Gwin's home in the Silverton section of Toms River NJ was wrecked by the storm. Her insurance company paid $101,100 on a $250,000 policy, and she is appealing that decision, still living in a rental a year later. Many homeowners have had to use their own money because FEMA and insurers use time as leverage. This is another reason to have an emergency fund: http://www.amazon.com/What-did-wrong-financial-mistakes/dp/1491095946

Could this government crisis happen again?

Yes. Your SS benefit may be delayed—there is no SS trust fund! One analyst says, assuming the borrowing authority runs out and lawmakers stay in their stalemate, a batch of Social Security benefits scheduled to go on Feb. 7 would likely be delayed by two days. A larger batch, scheduled for Mar. 1, would be delayed by 12 days. The longer the debt-limit impasse, the longer the delays.

Wait, Social Security brings in more money — in taxes and interest — than the benefits cost. How could it not have money to pay benefits?

Because lawmakers don’t treat Social Security, to borrow an old phrase, like it’s in a lockbox. They mix its tax receipts with income taxes, capital gains taxes and every other revenue source the government has. Benefits get paid out of that big mixed revenue stream.

You can bet Congress, President and Supremes will all get paid before we do. Big government contractors aren't likely to get hurt substantially in any event, as they have the reserves to make it through any payment delays unscathed. United Technologies had $4.9 billion in cash on its balance sheet, while Boeing had more than $14 billion in cash and short-term investments.

Emergency fund of 1 month’s expenses is necessary so you are ready Jan 15 for another shutdown.

SCAMS           “Deficits don’t matter” Republican Godfather, Dick Cheney, 2002

Bush wars increased the debt by $4-6 trillion to $16 trillion. 1985 debt $3 T, same as 1945. Only years of surplus—1998-2001.

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Is timing our Social Security benefits important?

Is timing our Social Security benefits important?

When planning retirement benefits, know the rules:

1. Starting benefits at age 62, cuts benefits for life. Women live longer and are more likely to end up with SS benefits alone. Women who wait to age 70 receive ¼ more than at age 62 or 65, so waiting may be best for her.

2. Coordinating benefits and working may help both of you. This recession’s structural unemployment affects men more than woman. Men can take benefits at age 62 if they cannot find meaningful work. Women can continue working to age 70 to maximize their benefits and take ½ the man’s benefits if they have attained their full retirement age. http://www.ssa.gov/retire2/retirechart.htm The total benefits may equal what the man would have received if he started later. This preserves the woman’s increase in benefits for the rest of her life. She loses nothing of her own work credits by taking his too.

3. Medicare can be engaged at age 65 but may not be needed if the woman’s coverage is better or cheaper through her employer. Medicare does not cover all expenses. Medicare supplements and Part B are usually necessary. http://www.medicare.gov/sign-up-change-plans/decide-how-to-get-medicare/original-medicare/how-original-medicare-works.html

It may be helpful to meet with a SS official when one of you reaches age 62 to find out what works for you. Call your local office for an appointment and free analysis.

 

CAUTION: Advisors giving poor advice to clients on SS, survey says

The newly released findings from the Wharton School's Pension Research Council concluded that “many advisers still approach Social Security claiming as an individual decision rather than a household decision (even though) clients would be better served if a household- approach was utilized.”

 

Financial Power in the 21st Century: $1,000,000 Tax-FREE

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• Use a special tax haven to protect all your dividends, interest and capital gains
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• Earn 9% a year on your wealth with no income taxes
• Spend 9% of your wealth with no income taxes

Isn't it time you started using the tax laws to your benefit like the people in the top 1% ! How does Warren Buffett pay only 17% total tax?  http://www.youtube.com/watch?v=Cu5B-2LoC4s

How does Mitt Romney pay less than 13.9%? You may not receive $21 million a year like Romney does but you can use a tax haven he can't use to compound $9 a day into $1,000,000. Compounding high investment earnings is “the most powerful force in the universe.” Compounding is money earning money on its earnings over time. Simple but powerful and ... no tax … ever.

Show More

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Two Americas—states providing health insurance to uninsureds

California, Connecticut, Hawaii, Iowa, Maryland, Nevada, New York, and Vermont have received new grants to help support the establishment of Affordable Insurance Exchanges. GOP states have said no to Exchanges for us.

 

TX voters will NOT need special ID to vote—GOP lost voter supression tactic

A federal appeals court in Washington Thursday struck down the Texas voter ID law requiring photos for voters at the polls, calling it racially discriminatory.

The decision is a major victory for the Obama administration and its Democratic allies, which had challenged the law.

 

Is critical illness insurance right for you?
This insurance is being pushed as a group plan in small companies. However, it only covers the unusual illness-- such as cancer, heart attack or stroke. If you have to go the hospital for other reasons, you may be faced with a large bill you can’t pay. This kind of policy is popular in Canada because everyone is covered already by national health and it is the only product insurers can sell. If you cannot afford a comprehensive policy which covers all the expenses of these illnesses, compare a high-deductible comprehensive plan. You will have a limit on your expenses but large bills will be covered. You do not need critical ill policy if you have the more comprehensive one. http://www.amazon.com/Industry-Insiders-Guides-Buying-Insurance/dp/1466435712/

 

 

SCAMS           “Only the little people pay taxes.” Leona Helmsley

 

Romney/Ryan claim to cut taxes AND not increase the deficit—except for workers!

Romney is still committed to making his tax cuts "revenue neutral"--in other words, not leading to an increase in the deficit.

When asked how this was possible, given the magnitude of the cuts (20% across the board on personal income taxes, along with a 10-point cut to corporate income taxes), Hubbard, his spokesman, explained that the cuts would be offset by:

• Stronger economic growth, and
• "Broadening the base" of taxpayers (in other words, having poor and lower-middle-income Americans pay income tax)

In the past, Romney has also promised to increase revenue by eliminating some loopholes and deductions. Romney has never been specific about which loopholes he would eliminate, and Hubbard did not provide any specifics.

Earlier this year, the Tax Policy Center concluded that it would be impossible for Romney to cut income taxes across the board and make the cuts "revenue neutral" without also effectively increasing taxes on the lowest-income Americans (and that was when the Romney plan called for merely maintaining current tax rates, not cutting them). The Romney campaign dismissed this conclusion as factually wrong and "partisan."

But stronger growth means LESS revenue for government when rates are cut and taxing low-income working people means LESS demand for products in US.

 

We saw this movie before. The job ‘creators’ moved their Bush tax cuts to Bermuda and left us with the debt. http://finance.yahoo.com/news/u-firms-move-abroad-024200566.html. Reagan and Bush started the deficit climb; Bush II added to it. See chart at http://www.ritholtz.com/blog/2010/05/national-debt-by-president/

 

 

 

Why my IRA has not grown to $10l.6 million like Romney’s has.

Mitt Romney made use of arcane techniques in several of its Cayman Islands-based funds to avoid U.S. taxes, according to a trove of Bain Capital's private audit and finance records made public on the website Gawker today.

The audited financial statements of one of the Cayman Islands funds make note of the use of "blocker" entities, which are used to help retirement accounts and nonprofit entities avoid some taxes. Financial statements for another fund note that it "intends to conduct its operations so it will … not be subject to United States federal income or withholding tax ..."

http://www.newyorker.com/online/blogs/johncassidy/2012/08/the-gawker-romney-files-seven-takeaways.html

 

Congress allows hedge funds to rip off the gullible

New rules allow any manager to sell “private placements” to those who wish to become “instant millionaires.” One commentator wrote: ‘The “JOBS Act” has authorized virtually any company to offer securities to the public without review or registration. This event is as catastrophic as the repeal of the Glass Steagall Act. Within the year, there will be horrendous stories of fraud by companies using this act and of the powerlessness of securities agencies to take any action because of the act.’

 

Who owns your account now?

TD Insurance, a subsidiary of TD Bank to USI Insurance Services

 

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

 

Wealth: What Every Student Needs to Know $3.99 iTunes

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Use a simple tax-FREE account called a Wealth Reserve to learn how to invest for long-term growth. This Wealth Reserve can provide $160,000 annual income for life with NO income tax.
This Wealth Reserve can provide real “lifestyle” security.

This Wealth Reserve can self-insure and self-fund financial needs saving $3,000 every year.

This Wealth Reserve takes advantage of the miracle of compounding—$250 a month becomes $2,000,000 over time.
Start today! Every year you delay costs you $100,000 later. http://itunes.apple.com/us/app/wealth-what-every-high-school/id540588535?mt=8

 

NC to reduce uninsured by 64% with ObamaCare

With the implementation of health reform, the first year of the Medicaid expansion alone is expected to reduce the number of uninsured persons in North Carolina by 64 percent, said a new report from the Budget and Tax Center a project of the North Carolina.

 

America is getting older

Baby boomers will turn age 65 at a rate of nearly 8,000 per day for the next 17 years. Most couples will need income for 30 years. IRAs must be used starting at age 70.5. If they are not needed, IRAs may be converted to Roth IRA which allows all gains to be left to heirs tax FREE like life insurance. 401k income is taxed as income. Social Security benefits (up to 85%) may be taxed if other income is high. A little planning goes a long way with our Guide:   http://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

Will you have enough? Where will you invest? How much will you spend?

 

Is your advisor talking and showing variable annuity benefits again?
LPL and other firms are helping their advisors to push variable annuities since sales are down and commissions are up. LPL and others are using videos to help capture more clients’ dollars. The benefits are income and growth in the future during low interest times. Your advisor should also mention the costs and risks of these products. The SEC has warned that misleading claims can lock you into low benefits/rewards in the future:

 

RememberVariable annuities are designed to be long-term investments, to meet retirement and other long-range goals. Variable annuities are not suitable for meeting short-term goals because substantial taxes and insurance company charges may apply if you withdraw your money early. Variable annuities also involve investment risks, just as mutual funds do.

http://www.sec.gov/investor/pubs/sec-guide-to-variable-annuities.pdf

 

 

Book review Red Ink: Inside the High-Stakes Politics of the Federal Budget

How did we get to this point of owing $49,000 for each family member, up from $1,640 in 1966? Pulitzer-Prize-winning reporter David Wessel explains each party’s contribution to the mess. Who pays tax and who does not, how much goes to waste, how much is decided by 12,000 Washington lobbyists at $10,000 to $20,000 A MONTH retainer? How did corporations reduce their share from over 30% in the 1950’s to 6.6%? In 1980, 22% of all business profits were booked by firms that did not have to pay corporate taxes. In 2008, 73% of all business profits are booked by firms that don’t pay corporate taxes (yellow line in graph keeps going down).

Estate taxes account for less than 1% of revenue. Wage earners are paying 58 cents to state/local government for every $1 paid to the Feds. Why Reagan had to raise taxes 14 times and still couldn’t balance the budget. 

Is this socialism for the rich or what?

http://economix.blogs.nytimes.com/2009/10/20/federal-revenues-at-lowest-share-of-gdp-since-1950/

 

Accumulate $1,000,000 with NO taxes EVER.
+Take $6,600 monthly income FREE of income taxes in retirement.
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+Twelve low-cost mutual funds that return 11% long-term.

Where is your sloop going? A retirement portfolio that flies. $12.95

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Insurers to raise price of UL life policies

Survey shows many insurers must raise the premium and lower their guarantees because of low interest rates and poor profit records. UL has a life insurance component which continues to cost less and savings component that can’t meet promises. Perhaps you should take your buildup and invest it while you switch to a lower cost term policy. You will have more later and still be covered. Life insurance is never a solid investment.

http://www.amazon.com/Drop-Your-Insurance-Dan-Keppel/dp/1448623391

 

 

GOP wants Romney to abolish interest deduction to lower his classes’ taxes

Republican platform drafters refused to put their party on record for preserving the mortgage- interest deduction, giving Mitt Romney more flexibility to promote his plan to lower tax rates paid by corporations and the wealthiest Americans without increasing the federal debt. Middle-class taxes would go up to pay for GOP tax breaks.

Who would vote for that outside the 1%ers?  http://www.sfgate.com/business/bloomberg/article/Republican-Platform-Won-t-Spare-Mortgage-Tax-3804350.php

 

 

Are commission-based accounts right for you?

Advisors are trying to switch our accounts into fee-based revenue accounts. Some are getting rich on 1-2% per annum but 72% of industry assets remain in commission-based accounts. Which is best for you? Like life, it depends on what you want to do. If you are a buy and hold investor, paying a low annual fee and no commission may be your best bet. If you like to pursue the hot products, a 1% fee may be great for hopping in and out of new trends. ETFs are popular but there are commissions to pay while an index fund of the same market may be cheaper. Learn from the insiders: Lies My Financial Advisor Told Me http://www.amazon.com/gp/product/1478281545/

 

Are your mutual funds really holding index funds (ETFs)?

Since you are paying 1-2% for a manager to pick market beating returns, would you be surprised (and angry) to find that they have put a lot of your money into index funds? It is true. Smart Money revealed that some small cap funds are actually invested mostly in the Russell 2,000 stock index ETF. Your manager may claim that they can easily sell the ETF when you and others want to cash in, but doesn’t that defeat the purpose of paying a “professional” to make the “smart” bets? Why pay extra for ETFs when you can buy the real McCoy and save the manager’s 1-2% fee plus ETF fee. The difference can be 40% of your total nest egg long term. In the last 10 years, Vanguard Small Cap Index has moved up 9.79% annually. You need your money more than your manager! Try it “neat!”  http://www.amazon.com/Wealth-Without-Wall-Street-Avoid Commissions/dp/1442168137

 

Women dissed by advisors?

According to a Boston Consulting Group survey, 73 percent of women say that they are dissatisfied with the financial services industry. Women claim they are overlooked, excluded, receive contradictory or poor advice and get worse deal terms than men.

But women are better investors than men and most know how to shop for a bargain. Stop wasting money and get better financial performance too: http://www.amazon.com/Leahs-Money-Book-control-money/dp/1448654408

 

Woman dissed by GOP

Paul Ryan, a married Roman Catholic, would overhaul women’ s health rights, Medicare, Social Security, and the health care law. He has actively fought abortion rights, government funding of family planning and insurance coverage for contraceptives. GOP platform says no abortion for rape, incest, even the death of the woman. GOP claims the sanctity of life, but not the pregnant woman’s life? Back to the coat hanger in the alley?

 http://www.nytimes.com/2012/08/22/opinion/what-the-gop-platform-represents.html

 

College student’s stuff may be covered by homeowners’

Check your policy or agent to confirm that your policy covers most of their stuff in the dorm or off-campus housing.

 

10 investments that worry regulators

Test your knowledge of the top investing scams being investigated by local regulators.

http://www.nasaa.org/3752/top-investor-threats/

 

 

SCAMS           “Only the little people pay taxes.” Leona Helmsley

 

Life Partners accused of fraud—“Gambling on death”

Accusing Waco-based Life Partners of fraud, state officials asked a state district judge in Austin on Thursday for authority to seize the life insurance settlement broker because it may run out of cash in two months. Texas claims that Life Partners sold unregistered securities and manufactured the value of the life insurance, or viatical, settlements by artificially shortening the life expectancies of those covered by the policies.

The company bought up insurance policies from elderly people, then resold fractions of the policies to investors, often promising big returns -- saying they are safer than buying gold or stocks. But some investors discovered that they had to pay premiums to keep the policies from collapsing, as people lived far longer than Life Partners predicted. Dah.

 

Congress benefits from letting lobbyists write our laws?

You have to be a millionaire to understand how the laws are written and they are.

http://thehill.com/business-a-lobbying/243625-the-hills-2012-50-wealthiest-in-congress

 

 

Who owns your account now?

Coventry Health to Aetna

 

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

There are two ways to buy financial services in the 21st century

One of my members bought life insurance from the large insurer (Mascot is a dog) before he asked me for help. Frank bought their insurance because the agent said the company is the best. She said, “It is large and will always be there to pay the benefit.” However, is it worth paying an extra $17,970 on your level term policy? There are customer-focused insurers, rated A+, the same as "It," charging $384 vs. "It’s" $983 for the same $300,000 30-year term policy. Frank was wasting $17,970 in total! After reading our Insider’s Guide to Life Insurance, Frank purchased the $384 policy. Investing his savings of $599 ($983-$384) in his Wealth Reserve for 30 years in a market index, Frank may have an extra $175,000 for HIS dreams not the insurers. http://www.theinsidersguides.com/lifins41.html
In the 21st century, there are two ways to buy financial services—the consumer way and the independent’s way. Financially independent people don’t let themselves be sold. They shop for value in everything. They never pay retail. They shop at Costco. They buy used luxury cars. They wait for sales on electronics. They use the Internet to research the price.
Buying vehicles is one of the largest expenses in most people’s lives. Over our lifetimes, we may spend over $250,000. Unfortunately, most people take the consumer way and spend 4 to 5 times what they need to for vehicles. One of our members, Denise, bought a car before I met her. Joy bought her car after she read The Insider’s Guide to Vehicle Purchase.
Consumers’ way. Denise took a loan for the full amount of the price. During the paperwork process with the F&I person (finance and insurance), she was persuaded that the gap insurance and window glass etching options were good buys. Instead of getting a lower price, Denise assumed that an extra $25 a month was no big deal. This was the deal she finally agreed to:
Total borrowing: $25,000 @ 16% for 72 months (her FICO score is 610)

Monthly payment: $542.30 Total payments: $39,045.60
Total interest: $14,045.31 Final residual value: $5,000

Denise spent almost $40,000 for an asset that has little value after 6 years. During those 6 years, she could have accumulated a Wealth Reserve of $57,352.04 on the $542.30 monthly payments. Thus, buying the vehicle on time actually cost her $40,000 plus $57,000 she could have had by investing the payments. The car cost almost $100,000.
The real cost of buying a new vehicle is FOUR times the price--Not a great deal.
Independents’ way. Joy had been buying “assets that grow by themselves” with $500 a month for some time. She had been growing her Wealth Reserve. She started her Wealth Reserve by using our FREE Guide at http://www.theinsidersguides.com/freeguide.html.
Independents use their Wealth Reserve balance for all their financial needs. Thus, their Wealth Reserve can earn 10% to 12% over time in stock and bond mutual funds. They can ‘borrow’ $25,000 from their own Reserve or ‘bank’ and pay themselves back by continuing to invest $500 for the 6 years. Joy pays monthly like Denise but to a different account. The $14,045 interest that Denise pays to another bank, Joy compounds in her own ‘bank.’ Joy accumulates about $53,000 during the six years—replacing the $25,000 she ‘borrowed’ to buy her vehicle. The vehicle is still worth only $5,000 but Joy has grown her Reserve by $28,000. Also, because Joy paid cash for a used luxury car, she probably got a lot more vehicle than Denise got for her borrowed $25,000.
As you guessed, the Independents’ way is how financially independent people stay wealthy. They paid their own “bank” and got the car and the extra $28,000 for the same $500 expense.
You can build your Wealth Reserve with savings from each Insider's Guides for: Vehicle Insurance . . save up to $6,000 over 10 years; Homeowner’s Insurance . . . $2,000 over 10 yearsLife Insurance . . . $20,000 over 20 years; Lawsuit Insurance . . . $3,000 over 10 years; Health Insurance . . . $5,000 over 10 years; Disability Insurance . . . $5,000 over 10 years; Long Term Care . . . $40,000 over 20 years; Education Funding . . . $20,000 over 18 years; Retirement Spending . . . $1,000s over 30 years; Banking . . . $3,000 each year; Annuities . . . $20,000 in 20 years; Mutual Funds/Securities . . . $3,000 each year; Spending Plan: Reach every goalSelf-Funded 'Bank' . . . $250,000 in 15 years; Vehicle Purchase . . . $10,000 per vehicle; Mortgage Purchase . . . $3,000 per contract; Wealth Reserve . . . $1,000,000 in 25 years; Wealth Transfer . . . $20,000 in 10 years; Living Insurance . . . $120,000 over 20 years; Self-insurance . . . $20,000 over 20 years; Avoid buying 101 products that waste your money
You can save $3,000 every year by buying the Independents’ way. Shop for financials just like you do groceries. Your agent, banker, broker, money manager and advisor do already. www.TheInsidersGuides.com

Never BUY Retail

Don't waste your money!

Did you know that your auto insurance premium includes coverages that you already have? Most of us are paying $574 for medical coverage, towing, death benefits we already have. Did you know your life insurance premium may include extra premium for Triple X reserves you don't need? Your annuity may be costing you an extra $600 a year, or $20,000 in your lifetime. You could be paying an extra $2,540 for mutual fund fees each year without any benefits. These extra costs add up to $500,000 over your lifetime. These are a few of the actual savings our members have experienced in 2007.

Our experts in banking, mortgage, education funding, mutual funds, securities, annuity, insurance—life, health, disability, long term care, vehicle, homeowner’s, business, lawsuit—vehicle purchase, estate legacy, wealth transfer, retirement spending show you exactly how to save $3,000 a year on the financial services you currently use, using our Internet interactive Guides on disc. You can automatically redirect the amount you used to waste to low-cost mutual funds, which can compound earnings to over $1 million over time. (See the actual returns chart at TheInsidersGuides.com/doityofi.html.)

Our Insiders explain how you can control your financial services costs and protect your family from risks using the products they use. Because of changes in the industry, you can buy where the professionals do—from the highest-rated firms with the lowest fees and commissions. Your advisors can’t offer these products because there are no retail commissions and fees. You can compound the earnings to build your own Wealth Reserve. Your Wealth Reserve can grow to $1 million or more over time. The Wealth Reserve serves as your “self-insurance” fund for your deductibles and supplemental retirement expenses, final expenses and your legacy. Every $100 invested is worth $10,000 later.

An example illustrates how we help members save money and use the savings to enhance their own financial situation, not the seller’s position.

Let’s say you bought MetLife insurance because you believe the agent and company are the best. You think, “MetLife is large and can last at least until I need them to pay the benefit.” However, is it worth paying an extra $17,970 on your level term policy? There are customer-friendly carriers, rated A+, the same as MetLife, charging $384 vs. MetLife’s $983 for the same $300,000 30-year term policy.

Investing your savings of $599 ($983-$384) in your Wealth Reserve for 30 years in a market index (average return) can provide an extra $175,000 for YOUR dreams not the seller’s. Do you get what you pay for? We think not. It is the same $300,000 benefit check to your family.

I am convinced that if most people considered the facts, they would take the money and drop their current policy or account. In this example, the other company has the same AM Best rating of financial strength. Its agents are also available by phone. The same regulator approves its rates. Thousands of policyholders receive benefits from the other company. The only difference is that the other company doesn’t have high expenses: expensive advertising, mascots and senior management.

I think that most people are missing the BIG secret of becoming wealthy—the miracle of compounding. $100 can become $10,000 in time. If all of us knew that over time, we could have a $250,000 Wealth Reserve within 15 to 20 years, we would become copious savers by age 8!! Since it is never too late to learn the “tricks of the trade” and save thousands of dollars, any person can become financially independent. By using our Insiders’ expertise, you can save on services you already own.

Our Insider’s Guides provide the names of financial products and services that are the best solutions for most working people. They explain why this is true. Then they explain where and how to buy products and services that can meet your needs. They help you buy ONLY what you need. You skip the extras that cost more but don’t help you. You buy from the best providers with the highest ratings. They also tell you which products to avoid and why they are NOT your best alternative. The Insider’s Guides cover almost all financial products and services available to you.

Buy only what you need—Never BUY retail

Drop your insurance: Buy only what you need

This is not what you usually hear from an insurance person. However, a new way of buying insurance and all financial services has arrived.

Based upon the model used by businesses, this approach builds on the trend of more of us who must manage our own pensions--401k, 403b and IRA accounts. Even though many of us say we don’t want to manage our own financial futures, we will be better off in the long run.

We are being forced to self-direct all our financial products. Our agents, bankers and brokers have all moved on. Typically, we practitioners of this new “self-insurance” model use our savings to build up our own reserves. This “Wealth Reserve” as I call it is a self-insurance fund I use to cover many risks so that I don’t have to buy a policy for every risk. I built a sizable reserve by buying products “wholesale.” I invest the savings.

Businesses have been doing this for a long time. For instance, most large businesses do not buy health care like we do. They buy it “wholesale.” They pay the claims from their own account. The insurer acts as the administrator—following the employer’s plan to decide it your claim should be paid. The business funds the claim account only to the extent necessary to pay claims. The insurer makes a fee for processing.

This costs the business less because the money to pay the claims is actually part of the working capital of the business. It is not sitting in an insurer’s investment account paying interest before it is needed to pay claims. For large claims, like brain surgery or death, the business buys catastrophic insurance. Some companies have their own (captive) insurer (reserves) to save even more.

How can you use this example? Let’s take homeowner’s insurance. Did you know that many agents purchase the standard HO-3 homeowner’s policy for their own coverage, but with a $2,500 deductible? That policy takes care of 99% of the claims and saves them 20-30% a year. They understand that they need to maintain the property to prevent it from deteriorating faster than it needs to. But by investing that 30% savings each year, they build a Wealth Reserve that earns them interest and will cover the deductible if they ever need it. So, over 10 years, they save $2,000 in premiums and earn interest on the funds.

Taken together for all your risks, you can build a large Wealth Reserve. For instance, we have helped people save over $3,000 a year on financial services, including banking, mortgage, education, mutual funds, securities, annuity, insurance—life, health, disability, long term care, vehicle, homeowner’s, lawsuit, vehicle purchase, legacy, wealth transfer, retirement spending . . . almost any service. Over time, those savings will compound to a $500,000. This fund can be used to pay for your insurance, retirement, and health care needs. Some clients plan to save $120,000 on long-term care insurance this way. Others have dropped their life and disability insurance—placing the premium in investment accounts that compound at the market rate over time.

When I was just 22 and working part-time during college, I was induced to buy permanent life insurance. I later cancelled it when I could not afford the $1200 annual premiums. I was in grad school and taking out loans to finish an MDiv. The agent representing Columbus Mutual probably earned all of that $1200 in the first year. I got little back when I couldn’t make the payments.

The agent did not explain that I would be better off buying a mutual fund instead of insurance. This was probably 1970. By the end of the 1960s there were around 270 funds with $48 billion in assets. No one advised me to invest in mutual funds at that time. My high school and colleges mentioned nothing about the miracle of compounding $1200 a year in a mutual fund at the average market rate of 12% per year. I think I would have paid attention if someone had told me it would be worth $1 million by the time I was 60.

1970 $ 0
1980 $ 23,233.91
1990 $ 99,914.79
2000 $ 352,991.38
2008 $ 933,673.59

There are few financial literacy programs in high school or college even today. Consequently, even in 2006, the Jumpstart Coalition for Personal Financial Literacy found that half of high school seniors failed to answer basic money questions. Schools don’t teach basics of saving, investing, compounding, and getting what you want, so parents are expected to. This leaves the blind leading the blind. Parents teach spending but few are role models in investing with compound interest. The subject we miss but need the most is about investing in the market. 86% of young people got it wrong. It is no wonder the U.S. savings rate is negative.

For Example, question 26. Kelly and Pete just had a baby. They received money as baby gifts and want to put it away for the baby's education. Which of the following tends to have the highest growth over periods of time as long as 18 years?
44.8% a) A U.S. Govt. savings bond
34.8% b) A savings account
6.3% c) A checking account
*14.2% d) Stocks
* correct answer is d. Ibbotson Associates data: Stocks average 11.4% per year, bonds 5%, CDs 3% over time.

Every $100 you invest becomes $10,000 to spend later

Yes, it's true.

Children need to know early that there are ways to grow savings to be able to afford what they want. If they knew $100 invested will grow to $10,000 later, they will see why it is worth investing. Right now, saving $100 in a bank account paying 1.2% does NOT offer much attraction.

Here is how $100 becomes $10,000. In year 1, your investment of $100 in a tax-FREE account like a stock mutual fund Roth IRA may not grow to $113. Don't sell the shares. They will go up. In the year 5—$182, year 10—$330, year 20—$1,089, year 30—$3,595, year 39—$10,529.

Children know someone owns their favorite store--ToysRUs, Sports Authority, or Walmart. Now they own part of the store. They make money when other people buy from their store. This is how they can understand how they earn money. At night, there are children all over the world buying at their store. It works during the day too. Every time someone buys, they earn a penny.

“We continue to make more money when snoring than when active.”

Warren Buffett, one of the world’s best investors berkshirehathaway.com

The growth of the $100 to $10,000 over time by itself is a “miracle” that can inspire even adults. In fact, if we updated this phenomenon at every age, teens might want to calculate how fast they could save enough for a car or game console. Teens could figure out in math class with an Internet future value calculator that by investing $100 a month from their jobs, they could have $1,200 in 1 year or $4,000 in 3 years. As they start their first job, young adults could have $25,000 in 5 years to buy whatever they need and pay off their student loans. Most don’t.

Of course their parents have to cooperate by not short-circuiting this lesson by buying the items for the kids. Teens need to understand where parents got the money to buy things. We aren’t teaching them where the money comes from. We aren’t teaching them about investing since Many of Us don’t wait till we have the money to buy things. We just use the “magic” of borrowing. They never learn how to problem-solve with money and they've never learned how to defer what they want.

How did we get here? There is now $915 billion in U.S. credit card debt. It all started when Bank of America launched the nation's first general-purpose credit card in 1958. It simply dropped 60,000 of them in a mass mailing to residents in Fresno, California. The bank hoped to attract customers with a new type of "revolving" credit line, which could be used for purchases everywhere and paid off over time. Every vet wanted a house, car, and fridge immediately to make up for the lost time of WW2.

Revolving credit accounts allow us to buy without thinking. Now, we don’t even think about whether we really need the item. We don’t consider the total cost either. Credit finance charges can KILL you slowly--like smoking. We are giving away our futures when we use credit. It works just like the “miracle” of compounding—only in reverse. We pay off our credit cards over 30 or 40 years because we can’t stop using them. Some will pay 5 times the price of the item over time.

For example: You will have to pay $161 per month for 10+ years to pay off your debt of $10,050 at 15%. You will spend at least $19,360 to pay off that $10,050. (If your rate is 25%, you will pay $25,080 for $10,050.) You pay almost double for that $10,050!

That’s not all—THE REAL COST IS MORE!

Think of it. If you did not have to use that $161 each month to pay the $10,050 in debts, you would be able to use the $161 per month to make money. You could have made about $37,036 in the 10 years using a stock mutual fund. So the REAL cost of that $10,050 debt is actually $56,396!! The lender gets the $19,360 (to pay the debt over time) and you gave up earning $37,036 from the $161 payment per month for 10 years. That is enough for a down payment on a house!

Most people buy things they don’t need on credit and pay the minimum at rates that hit 29% for some. So we give up our future: house down payment, education funding, business start up, or retirement funding. Unfortunately, many people never pay off the whole debt. It is $915 billion—most on the shoulders of debt addicts.

Mississippi proposes to do something to break the cycle of debt. Following the success of Child Trust in England, MS will create a $500 investment account for all children born in the state. The initial endowment of $500 would be provided by the state to each newborn, and total additional state-tax-deductible contributions of up to $2,000 per year could be made by family members, friends, churches, charities, and others. Child account holders could use the accounts for any purpose at age 18 - including a college education, home ownership, or investing in a small business.

Our members do the same using existing accounts. See our FREE Guide: theinsidersguides.com/freeguide.html