Great gift idea: tax-free ‘Wealth Reserve’

 

Great gift idea: tax-free ‘Wealth Reserve’

Help you child or grandchild get off to a great start in life: open a tax-FREE account for a secure future. You can open an account with them for $1000 and as they make contributions from earnings and holiday gifts, you can show them how their money compounds at over 11% a year. There are no broker fees, charges, or commissions so every $1 works for their future benefit. They never have to pay Uncle Sam either. This is a legal IRS tax shelter. It is the ultimate wealth management system for their whole life. A ‘Wealth Reserve’ is the New American Retirement System: all earnings are tax FREE.

Get them started right: https://www.amazon.com/Give-your-child-leg-manage/dp/1096505355

 

GE: corporations and the decline of middle class

75% of jobs at GE are now overseas where the pay is less no unions. In the heartland factories, “There’s no machines running. There’s not any work.” Corporations are using the tax code to move work and official business address so they pay little or no taxes: we pay them. GE has drawn roughly $1.6 billion in federal money since 2000, plus $687 million in state and local awards since 1992, totaling more than $2.2 billion, according to a nonprofit’s subsidy tracker that the report uses. Over roughly the same period, the report says, three out of every four GE jobs in the U.S. disappeared. Our representatives voted to give them a lower rate AND subsidies when they make bad business decisions. They can’t lose. Taxpayers via the Federal Reserve give some business our money to keep them afloat. The PPP provided money to keep workers employed and some businesses sent the jobs offshore and kept the money. Some got PPP money just to add to the salary of senior management. After the pandemic, some workers refused to return to the jobs that pay $7.25 an hour. Since the government created more money to keep Wall Street wealthy happy, inflation has risen the highest rate in 31 years. So if I get a raise, the 6% inflation rate wipes it out in 6 months. The wealthy get to keep their subsidies.

Socialism, American style: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

 

Driving less? Get your discount

When your driving situation changes, check with 3 car insurers to make sure you receive the discounts you deserve. I have saved by moving from State Farm, GEICO, Liberty and AllState. I proved we were driving less since we were not going to the mall, restaurants or the in-laws. We qualified for the discount. We took a driver improvement course and qualified for the discount. We bought a new used car with safety equipment and qualified for the discount. We have driven many miles without an accident and qualified for the discount. We were paying for 3 coverage items we didn’t need and qualified for the discount. We got older and qualified for the discount. There are over 20 discounts and over 100 carrier premium formulas. You have to shop to save.

Get yours/save: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

 

Is managing your own money right for you?

About 70% of households with a net worth of $500,000 or more headed by a person 45 years old or younger largely did self-directed investing in 2019, up from 57% in 2010, according to an analysis of Federal Reserve data by Aite-Novarica Group. Nearly half of them took an above-average risk level in exchange for an above-average rate of return, up from 35% in 2010, the study found, according to the Wall Street Journal report . Advisors who have won back clients use tax planning as the carrot. Some claim they have saved clients $100,000 or more. Advisors convince DIY clients that they need financial planning and are willing to pay never ending fees as percentage of their hard-won portfolios. We don’t know if they could have done the same with a one-time fee-only planner. Some advisors have earned the trust of DIY clients especially after a big loss. Other advisors say that no one person can know everything so DIY will come to them as one who knows things they don’t know. The question is not, ‘do the DIY investors know everything’: the question is, ‘are you will to give up 1-2% of your money ($10,000-$20,000) each year for life.’ Would it be better to pay $1,000-3,000 one time for help when you need it?

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

 

Inflation and the stock market

Historically, stocks tend to do well even during periods of inflation. Steve Hanke, professor of applied economics at Johns Hopkins University, said the average annual return on stocks between 1990 and 2017 was 11%. Even when you factor in the cost of inflation, the average annual return was 8%. You can also do better by avoiding the assets that may suffer during inflationary times. Long-term bonds and certificates of deposit suffer because buying them during periods of inflation means you might miss out on higher rates later. No one wants old low-rate bonds. Short- to intermediate-term bonds are a better choice. Real estate can be a positive investment since rents can match increases in inflation. However, our recent pandemic caused many vacancies and real estate development declines. The bottom line is we just don’t know which investments will hold value during this inflationary period. There are special circumstances at this time. Usually a well diversified portfolio is still the best position for your future. Focus on what you can control—steady contributions. Warren Buffett has a plan for you.

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

 

DIY investors hire only the specialist needed

Most DIY investors have a strategy to make and maintain a portfolio. They usually use a fiduciary (no product pushing) when asking for help since they don’t need a new product just advice. A financial planner can be helpful when charting their future. When they need to avoid taxation or create an estate or family legacy, they find a specialist. Perhaps a Roth conversion will help if done correctly. Perhaps the new RISE Act can help them pull all the retirement options together. The person could be a lawyer. Hiring a specialist for a specific need at a specific price requires checking creds and reputation. There are vendors who can help them find a specialist. However, asking a large brokerage firm, with a commission/fee business model, is usually not helpful. Most successful fee-only planners have the contacts to provide a valuable referral.

Consider all options: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

 

 

 

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

 

 

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

 

Our Jan 6 ‘Truth and Reconciliation Commission’

 

 

“The Coup is ongoing”

 

Congress subpoenas can be ignored?

 

“Hang Mike Pence” OK to threaten the life of VP

 

Jacob Chansley terrorist gets 3 years

 

 

 

How Govt wastes our money:

Manchin decides to cut social services but voted for Trump/GOP tax breaks for rich

We will spend $93 billion on the moon to “establish human presence there”

Despite promises no more drilling, Biden’s is bigger than any lease sale: US pollution

 

Will Congress give IRS tech upgrade to collect $100 Billion from tax avoiders?

 

 

SCAMS/SPINS:

Biden lied: drugs up not down: Medicare up 15% $21.60: from $148.50 to $170.10

Manchin opposes electric cars: favors coal mining tax credits and subsidies instead

Manchin gets delay in global coal use limits: earns $500,000 per year from coal co

 

Unlawful firearm charge dismissed: Child takes loaded gun to riot far away, kills 2.

 

Advisors caught overcharging us: poor math skills, delay, fraud, lazy, no mgr check

Amazon order email scam: call to speed order by giving up our credit card number 

FirstCash Cash America West caught charging military >36% rate on pawn loan

Brian Wedgeworth FL caught using fake Dr line on dating sites steal $750K 21 women

 

Lina Maria Garcia FL caught steering profitable trades to lover’s account: $5 million 

Our spices contain heavy metals: toxic for kids: CR reports

Dallas BEWARE: driverless UPS big rigs are coming to town from Houston. Stay away

 

“grandparent scam" relative in trouble 82-year-old Florida grandMom lost $700,000

Fake landlord scam: evictions ruin families

So easy to mislead fellow internet users: without trust, can democracy survive?

Holodeck future: playing with yourself? Back to the 50s The Weldt

 

Child cries as tells how killed 2 men during protest: attacker claims ‘self defense’?

3 White men with guns chase Black, kill him and claim ‘self defense’  How?

FBI, DA & police admit hid evidence of real killers of Malcolm X  system racism

 

Trump’s General Flynn calls for 1 national religion—2020 pledged to follow Q

Trump needs cash for failed businesses: sells marquee Washington Hotel near WH

Trump’s litigation delay tactic worked for taxes and now for Jan 6 Coup-attempt docs

 

Chants calling for hanging of VP is just “common sense” says president Trump WOW!

Are death threats to Congress person legal? GOP Gosar not arrested! But we are

 

140,000 children lost a parent/caregiver to Covid: get vax for your kids’ benefit

 

Jobs

Solution to low-pay jobs unfilled by Americans: immigrants have taken them for 200 yrs

10 Fastest-Growing Jobs for Young Professionals: tech and helping others

500,000 nurses quitting early due to pandemic overwork schedules

 

Who owns your account now?

Electric SUV bottom CR reliability survey: Lincoln, Tesla, Jeep, Genesis, VW bottom

 

Miracles:

Can a miracle change world climate deniers’ opinions? Catastrophe usually needed

2/3 of vaccinated Americans are banning unvaccinated family members from holidays

Abraham Olagbegi 13-year-old gets bone marrow then feeds homeless with grant

 

Saving the beauty of the old crafts for the next generation in LA: Thanks

2 - 3 cups of coffee, 3 - 5 cups of tea had lowest risk of stroke and dementia

MI church shelters 10-point buck on opening day of deer hunting season.

 

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

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

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

 

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

 

Look before you leap

Why annuities are hot again

Trump cancelled the Fiduciary Rule which protected us from the worst abuses of the high-octane industry sellers. Sellers can collect 6-10% of your annuity purchase price so every high-net worth customer needs an annuity. This is one of the highest payouts for most sellers. The Rule made certain demands on sellers to prove their annuity with up to 15 years of surrender charges was your best deal for retirement income. Yes some contracts allow you to participate in market upswings and limit your loss, but your gains are cut off by contract limits and the ongoing costs. These can go up to 3.35% depending on your choice of options. Since the alternatives, which may be better for you, provide much less income for the seller, you can understand why Obama’s Fiduciary Rule was abolished. Yet, you can have income and growth at lower cost and maintain control.

Consider the options first: https://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573

Your portfolio could have beat Yale’s investment gurus without the cost

David Swensen, the longtime investing chief at Yale University, got $4.7 million in compensation in 2017, making him the highest paid at Ivy League schools. His helper got $3.5 million. Yale has posted a return of 11.6% in the five years through June 2018, the second-best gain in the Ivy League. If you had followed Warren Buffett’s advice, you would have earned 12% for that period. You don’t need a high-cost broker/advisor or firm. You need common sense. If you pay more, you earn less—up to 63% less over time. If you pay a salesperson, you lose money. If you try to trade or time the market you earn 3.79% over time according to DALBAR scorekeepers. Yale does not do fast trading or market timing. Compare the holdings of most pension funds like CaPERS: 50% equities using low-cost passive index funds. Even for pros, it isn't about stock-picking. It's about owning the market over time.

Use the Buffett strategy: https://www.amazon.com/Warren-Buffetts-Investment-Secret-Steeple/dp/1484189809

Financial regulators ID 61 firms as high risk for cheating clients

FINRA proposes to watch rogue firms for irregularities. They attract sales people with questionable histories.  Regulators allow sellers to move from firm to firm despite client- abuse patterns. "The most critical is a pattern of disclosures," he said. "For example, a broker could have an unauthorized trading complaint that is recent but seems benign. But when you look at the broker and the movements he has had, say four or five different firms, and he has faced similar allegations at those firms but in a different time frame with different customers, the pattern seems to be emerging, so we are going to take a closer look." FINRA does not try to weed out the violators—violators are found by us when we complain. Regulators have a list of high-risk brokers using industry and disclosure data, and then begins its analysis. The list is not available to us. All we can do is check FINRA BrokerCheck and the list of barred brokers. We are the victims but most perps just move on to new firm.

Buffett says we are better off on our own: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

Is ‘factor-investing’ right for you?

New name but old gimmick to try to predict the future. Brokers/analysts claim they are customizing your portfolio using whatever you need—“higher returns or lower risk, such as momentum, value or size.” They say they use factor analysis to find a fund “less expensive versions of your current portfolio.” I am a little skeptical since brokers or advisors are hired to ‘earn’ money from your money. Others claim they use it to find a fund “to reduce investment risk.” And you thought that was what your advisor did all the time for their 1-3% fees and charges. "If we get risk right, the returns will take care of themselves over a long period of time, and we know that staying in the market is the important part." ‘IF’. Assumptions work in a strong market and an advisor can show the ‘factor analysis’ to keep us in the market. But this new name and fees for choosing value, size, momentum, quality, price, dividend yield and volatility cannot make the future predictable. The average managed-account investor is still earning less for every period: only 3.79% over time instead of the market index rate of 10-12%.

Forget the fad, take 10-12%: https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373

Where do your broker-advisor fees go?

The first thing I learned working in a brokerage firms is that senior management must get rich from your advisor or broker. Don’t kid yourself (or let them try to), they are after a big chunk of your money. You may be investing for the benefit of you and your family but so are they but they’re taking theirs from yours. Are you surprised by how much you are paying annually for James P. Gorman, Morgan Stanley taking: $28,168,639; Jim Cracchiolo, Ameriprise Financial: $22,310,000; Timothy Sloan, Wells Fargo: $18,400,000; Terrence P. Laughlin, Merrill Lynch: $17,796,226; Walter W. Bettinger II, Charles Schwab: $15,627,607; Paul Reilly, Raymond James: $12,453,375; Ruediger Adolf, Focus Financial Partners: $11,637,251; Dan H. Arnold, LPL Financial: $7,128,351; Ronald J. Kruszewski, Stifel Financial: $5,287,305; Judson Bergman, Envestnet: $4,200,366; Thomas A. Nally, TD Ameritrade Institutional: $3,521,305; Richard J. Lampen, Ladenburg Thalmann: $3,115,271; Robert D. Oros, H.D. Vest: $1,464,473. Fidelity is owned by the Johnson’s so we don’t know how much CEO takes. Half of investors now in low-cost indexes: https://www.amazon.com/Pimps-Wall-Street-money-middlemen/dp/151525254X

Seventh biggest mortgage lender in the country is us

We are ‘giving’ our kids over $39,000 for a home. The average U.S. home price in 2018 was $310,000. Many parents can’t help themselves and provide help even though it may leave them with a shortfall now or later. After all that chunk of retirement money could have provided $300,000 in 20 years. Most loans become gifts since the children are tackling new family, student loans of $30,000 on average and finding full-time careers. One alternative is to save with your children—match their savings/investing—dollar for dollar until they have the home down payment. Another solution: folks might find it easier to take out a HELOC on their own home to make the kid’s down payment. Home equity loans are deductible and perhaps have a lower rate than the student loan. Make a deal: exchange your old car for their new one. New cars can cost $40,000. If they don’t buy or make payments on one, they can invest that $400 a month instead. Remember, an easy down payment gift provides no ‘skin in the game’ for them.

Save on home purchase process: https://www.amazon.com/Insiders-Guides-Discount-Financial-Services/dp/143480593X

Is the American middle class doomed?

If you think you are middle class, you are, according to some writers. But since the 1980s, the productivity gains have all gone to the top 1% of earners (23.5% of all income; up from 8.9% 30 years ago). It now takes two workers, usually well educated to create the same lifestyle as the average family in the 1950s and the 1960s. Wages are LESS than they were in 1973! Many of our children are creating extended family groupings like in the 1800s. Only the ‘robber barons’ could afford a home of their own. We go further in debt trying to keep up. Work operations change very quickly—keeping up our skills requires continuous learning—we never had to do that before this generation. Generations live in mobile homes now. Walmart may be the best paying job in town so food stamps are necessary. 62% of us don’t have enough for an emergency when it comes. It feels like we are on the road to serfdom.

According to one writer, its elements are: (i) internationally, capitalism is restructuring and U.S. global hegemony is fraying; (ii) domestically, the post-WW-II good-life of the “American Dream” is slipping away; (iii) politically, democracy is eroding, a casualty of big money and voter suppression; and (iv) legally, law enforcement is being increasingly militarized. Only the corporations and wealthy have the power to actually do anything. Many of them are propped up by ongoing tax breaks and subsidies from tax payers. Even our reps in Congress are powerless without the dough to stay in Washington so they follow the rule of money. Our government leaders are above the law we are subject to, just like serfs. We don’t even fairly elect our own president anymore. Scalia taps Bush.

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

Need a graduation gift?

The greatest gift you can give is financial knowledge. No matter how much your young graduate makes, it is up to YOU to show them the Buffett investment strategy. Make sure they can make and manage money. At my first job, I had no clue which investment to use for my 401k contributions 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 about $150,000 instead of a Wealth Reserve of $877,233 about 33 years later.

YOUR choice: https://www.amazon.com/Give-child-leg-up/dp/1096505355

**************

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’ subpoena?

***********************

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

Now Iran? We are still in Syria, Afghanistan, S Korea, Japan, Germany, 150 more. Debt.

Not invade Iran today: CIC says there is ‘no indication anything has or will happen.’???

Trump made up ‘threat’ from Iran to send war ships to impress base. What’s next?

Trump admits he is ‘stable genius’: Proof—just ask his employees- Kellyanne, Larry, Sarah, Oh My.

States fight Trump ban on hospital workers treating patients he does not want to help.

Tax breaks for wealthy but no tax payer jobs at crumbling infrastructure firms

Senators pass 2 bills in 2 mo: lay them off until McConnell retires—saves $10 million.

Farmers’ socialism; beer makers lost 40,000 jobs: Trump like Putin makes winners/losers

Trump Mob gives tariff waivers to the firms they like: others on hold.

TX GOP cancels disaster relief for fires, floods and hurricanes. No reason for ‘no’.

SCAMS/SPINS:

What would GOP do if DEMs refused to provide info they requested from WH? Arrest?

Why are those who defy subpoena NOT in jail now? Are all GOP above the law? Trump?

Pelosi: Trump “engaged in cover-up” so is that ‘high crimes and misdemeanors’?

EPA to ‘cook the books’ on coal pollution so report less than 1400 deaths per year.

If All the President’s Men can ignore the law, are the wealthy far behind? Biz espionage?

Wealthy skipping IRS audits—all 5 auditors working on ‘Trump audit’?

GOP fails to block China’s car maker in US transit: Follow the money. Buy American???

Trump Mob promised banker job for $16 million loan to Manafort: Jared: “on it.”

Don Jr will tell all in new book even if from prison: follow the money

Ford soon delivering pkg to your home by robots: $1,000 but no tipping needed

Coal industry may be shut by insurers not govt to control storm damage claims

No more low dose aspirin: bleed in skull

Trinity Healthshare called sham ministry: deceptive practices.

Life Partners Protective Life caught overcharging older investors in resale scheme.

“Credit reporting, credit repair services” category with most complaints at CFPB.

FCC get carriers to block Robo calls? Lost revenue?

Morgan Stanley’s Tim Prouty caught using complex risky strategy: client wins $519,000

Randy Rodberg; Andrew Costa; Claude Mosely; Marcus Bray caught Woodbridge ponzi.

BBT caught overcharging own employees in 401k: breach fiduciary duty.

Portfolio Advisors Alliance, Allen, Wasserman caught selling fraud private placement.

Daniel Pacheco, CA caught selling speculation on ‘cryptocurrency’ pyramid scheme.

Argyle Coin Jose Angel Aman caught selling Ponzi “fancy colored diamonds.”

TurboTax Uses A “Military Discount” to Trick Troops Into Paying to File Their Taxes

Weinstein pays $44 million for crimes but no jail time: Moguls cost of doing business?

Trump Mob lining up pardons for friends and partners: ‘Mobsters dream come true.’

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

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

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

Jobs:

Where did our pay increases go since 1980?: the famous 1%ers took productivity gains.

Walmart next day delivery for free on $35 orders; Amazon $49 delivery free some ZIPs.

Ford cuts 1200 from management; 7,000 worldwide.

Canada Mexico workers rejoice! Trump lifts steel alum tariffs.

Who owns your account now?

tap-to-pay credit and debit cards issued by banks try out on NYC subways

Navigators Group to the Harford

Bezos keeps all your transcripts of Alexa recordings even after you ‘delete’ them.

Miracle:

Software investor helps graduates with loans

Another body in space is not on same course as ours: we survive—it’s a miracle!

17 y old student set to graduate from Harvard just days after high school diploma.

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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