Why are more people moving their money to Vanguard?

 

Why are more people moving their money to Vanguard?

Vanguard has taken in every 1 in 3 dollars in 2021. Folks are realizing that paying advisors a big chunk of their earnings every quarter over the 20 to 30 years of investing means they are giving away over 50% of their money. For the average investor contributing $3,000 a year or more, that’s over $250,000 to $400,000 total fees. That means those who pay an advisor are ending up with $400,000 instead of $800,000 or more. When we start out investing and paying 2% of our $3,000 for “personal portfolio guidance,” we feel good we are getting a good deal. However, later, we don’t realize that 2% of AUM “assets under management” as they call it, takes $8,000 to 16,000 every year. Advisors are not required to tell us what their fees will cost us over time. If we earned $200,000 like we did in the market last year, we don’t mind giving up $16,000. However, in 2022, the story will be very different. We would still have to pay the $16,000 even if our advisor did not increase our account one PENNY. Many folks have learned that COSTS matter: 3.79% vs 11%. The best predictor of investment success is cost. Earn 6% pay 2%; inflation takes 3% so keep 1%.

Keep more: https://www.amazon.com/Best-Predictor-Investment-Success-Cost/dp/1502524082/

 

 

Which market sectors will help your retirement income?

Wouldn't it be great to find just ten mutual funds you could count on for your whole life? Think of it: Ten funds that earn over 10% a year that you could keep investing in from your youth and use for income and growth in retirement for the rest of your life. You wouldn't need a broker since you wouldn't be selling and buying 'hot' securities. You wouldn't need to worry about what the market was doing at any given time. You wouldn't need to worry about buying the next Apple or Google—you own them all. You wouldn't need to worry about having enough in retirement. The facts are in: 1. “The stock market is a device for transferring money from the impatient to the patient.” Warren Buffett 2. Buffett also said: We continue to make more money when snoring than when active. berkshirehathaway.com/letters/1996 And "My wealth has come from a combination of living in America, some lucky genes, and compound interest." 3. The average investor earned just 3.79% while a stock market index earned over 11% over the last 30 years DALBAR’s annual Qualitative Analysis of Investor Behavior 4. Morningstar proved that Wall Street is wrong: “In every single time period and data point tested, low-cost funds beat high-cost funds.” What does Buffett recommend we do? He told Reuters: "A very low-cost index is going to beat a majority of the amateur-managed money or professionally-managed money." Mr Buffett's strategy of patience has proven to be the most successful. He recommends using Vanguard funds. It takes 1 hour to set up an account for each of you. And your income can be tax-FREE!

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

 

$73 Trillion of wealthy-people money is never taxed

We will have to pay their taxes. The top 1.5% families will enlarge the wealth gap between us and their kids and it will be done tax-FREE. The middle class will shrink even more. Our reps have not been able to get Congress to reverse the 2017 fundamental tax change. The promise of America as a ‘class-less’ society ends with the return of the Gilded Age. In some cities, they have already started to “de-annex” their gated communities. Revenue collected from the estate/gift levy plunged by more than half in the span of two years, with just 1,275 families paying $9.3 billion in 2020, according to Internal Revenue Service data. Grantor trusts exploit a long-standing loophole that House Democrats had proposed closing before the provision was deleted from the Build Back Better package. Since the Trump/GOP tax breaks, the national debt has not been reduced as promised by increases in national production/investment as promised. The increase in wealth of the top 1% families will not be captured. The debt will be passed to us the remaining tax payers. The rich get all the tax breaks: Socialism for the Rich. We have one way to avoid having to pay their taxes in the future.  

Use the only legal tax haven: https://www.amazon.com/Your-Tax-Haven-Tax-FREE-Americans/dp/1482659441

 

 

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

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

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

 

How to invest in uncertain times: war, inflation, job changes

When will life get back to normal? Well it might not happen soon or ever. Paid forecasters and money managers always have an answer but we know down deep there is no correct answer. This means we have to be ready for whatever happens. When markets are volatile and high earnings are not assured, we have to control what we can control. We can control what we pay for a stock or stock or bond fund. We can control how much to pay for transactions. We can control what we pay for advice if we need it. Over and over, those unbiased folks (not salespeople) tell us that frequent trading—trying to time the market for better results—does not work. Sure, there are some folks who can show us their great results for the recent past—the last 1, 3 years. However, we are not looking in the past for the future great results. Here is all we know. Fidelity looked at client accounts that did the best. They were the ones who forgot about their account. DALBAR, the investor-tracking-markets firm looked at the actual outcomes of advisor managed funds and found the best outcome was a low cost index fund. Finally, Warren Buffett bet on the Vanguard 500 Index fund over 5 specially chosen hedge funds. The Vanguard Index won. It is the low-cost broad index that can provide 11% a year over time.

Buffett makes it simple: https://www.amazon.com/Warren-Buffetts-Investment-Strategy-Forget/dp/1484822900/

Using tax-managed retirement funds is essential to survive

Sixty-three percent of Americans don’t understand how their 401(k) works, and 81% don’t know how much they’ll need in retirement, according to a survey from Bank of America. This survey does not tell us how old the owners are so the results may be normal. When we start working in a company that offers 401k, we don’t understand more than it is a retirement account that delays taxes on part of our income. Oh, we also remember that the company will match our contributions. Of course, no one knows how much they will need in retirement. We just started working so we aren’t supposed to know about retirement yet. On the other hand, if those who answer were age 65 or near retirement, they will soon find out that no one knows how much they will need in retirement until they are in it. Most people don’t have a high-cost financial advisor who may know how to estimate their income. Most people haven’t decided on when to take Social Security. Nor do they know how much income they can take from their nest egg to make it last to age 90. No one knows what their market portfolio will earn since they don’t know which blend of stocks and bonds is right for them. They don’t realize how much of their investment earnings they will be giving up to their advisor over time. Most will only keep HALF what their money earns. Most people don’t know if they will have two incomes or one, whether they have to down size or not, whether they will health conditions that may bankrupt them. Americans don’t find out the answers until it is too late to do anything about it. Only rich people have a financial plan for later life.

Make a plan: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793

 

 

 

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

 

 

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

 

 

The Path to Dictatorship: 2010-2030

 

 

Insanity: “there would be no NATO if I didn’t act…” “I will leave NATO”

 

Trump’s coup tears country apart

 

Another armed domestic terrorist guilty

 

Another domestic terrorist conspired

 

Facebook: organized terrorists for Jan 6

 

How Govt wastes our money:

Too little too late: Free tests going to waste: https://www.covidtests.gov/

Congress finally agrees on lynching: Lynching Black folks is wrong: takes 247 years

GOP: you can settle your neighborhood disputes immediately: kill with unlicensed guns!

 

Judge stops TX state from deciding kids’ life or death: TX to punish parents: Jesus says

FL law "Individual Freedom" prohibits race-related talk in schools and work. Fascism

 

File taxes electronically: there are already 23 million returns not done from years before

There are no auditors to force the wealthy to pay the taxes they owe: poor are easy to tax

 

17 US representatives voted for Putin’s war: keep importing Russian oil

GOP delays sending assistance to Ukraine to give some GOP special perks

 

SCAMS/SPINS:

Trump undermining democratic institutions: billionaires pay for fake voter fraud

TX rejects 27,000 mail-in ballots: most Dem voters disenfranchised

CO GOP election official caught messing with voting system; undermine voter trust

Trump official lies about voting residence: trailer is not home: voter fraud--not arrested

 

Fake pictures raise hate in Putin invasion motives

Russian TV Uses Tucker Carlson and Tulsi Gabbard to Sell Putin’s War to Russians

 

GOP anti-vaxxers learn Covid shrinks their brains; explains silly thinking; Trump support

GOP: “We need to build more gallows”: raising $ millions from call for White violence

GOP’s vision: Cotton; Trump; Cheney; DeSantis; Pence; Scott; Cruz;

 

Trump’s plans to overthrow of US government: Stone heads criminal conspiracy

Trump Wants to Put China's Flag on Jets to 'Bomb the Sh*t' Out of Russia: prez 2024?

Putin follows Trump: ‘Fake News’ Law; Trump’s Urging That Comey Jail Reporters

 

Putin, Trump’s idol, going after the pregnant women and children now: ‘denazify’

Putin doesn’t care about war crime trials: who would arrest and try him?

Putin hires mercenaries from Middle East to kill Ukrainians in eastern border

 

Will Putin take HALF Ukraine—Russia declares ‘East Ukraine’ separate place?

Putin has China as backstop: new dictator alliance creates new commercial patterns

Putin embargo doesn’t raise gas price: speculators in market do: $20 in 2021 same oil

 

Raymond Erker OH caught stealing $9.3 millino in Ponzi: guarantee no risk returns

David Schamens NC caught stealing $6.8 million in Ponzi: loans to traders high returns

Scam via Venmo, Zelle or check that bounces: CC fraud ends up our account

Scams aimed at us: warranty, health, religion, SS, student loans: just hang up and survey

 

How to spot a government imposter scam: claim SS, IRS, etc

Johnny Stine WA caught selling fake vaxx for $400+; more demand when stop order sent

“Service fee: scam: order promised free shipping but at final screen, shipping is “service”

City National Rochdale caught overcharging clients, mislead, misinformed $30 mil fine

 

BEWARE: Subarus now sold without the tech that connects drivers to music, navigation

Paper products now thinner: Bounty, Scott, etc shrinking without warning.

Deed Notice Scam If you receive one, don’t waste your $98.

 

Anti-vaxx trucker propaganda raises money for the website not for the truck drivers

Unvaxxed continue to die: FL GOP watches dead top 970,000: personal freedom kills

BA.2 makes up 11.6% of COVID variants in U.S

 

Jobs

41,000 additional veterinarians needed to meet the needs animal healthcare by 2030.

IRS plans 10,000 hires to help clear millions of unprocessed tax returns

 

Who owns your account now?

Best paint review from Consumer Reports: $46-$90

NM Archdiocese Sues Insurers Over Sexual Abuse Coverage: victims waiting years

No humans: I had to write to CEO T-Mobile to cancel my account: no button; no CSR

 

I cut my car trips in half: all my short trip errands at one time

 

Miracles:

4,500 antiwar protesters arrested in one day in Russia

LeBron James had a 56-point game Saturday.

China to make electricity in the Gobi desert: no one will complain of noise

 

11-year-old Ukrainian walks 100s miles to Slovakia alone 

3,000 applications from people in the United States who want to fight Putin

Nearly 60% of Americans gave money last year. Average donation: $574.

 

Some really free stuff: certain rules apply: Congress gives itself the best stuff on us!

 

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

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

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

 

IAN

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

 

 

Financial revolution offers more for less

Financial revolution offers more for less

Low-cost index investing. Single fund investing. Advisor-free management. Realistic income projections. Automatic 401k enrollment. Robo-advisor. Tax-free account.

The financial revolution is the work of John Bogle, Warren Buffett, and William Roth. Bogle gave us low-cost index investing, greatest accumulations and robo-advisor. Buffett gave us advisor-free management, single fund investing and realistic income projections. Roth gave us tax-free accounts. We can now avoid being ripped off by the industry. We can earn more by paying less, with greater diversification, less volatility and more predictable earnings over time. We don’t need to worry about picking the right stocks or time to buy them. Most working people can accumulate $1 million for retirement with just one fund automatically from their paycheck. It is so simple: it’s like brushing your teeth—once you start it becomes a habit you do ‘automatically.’

https://www.amazon.com/Millionaire-Mutual-Funds-Save-taxes/dp/1534939490

Financial industry pushing annuities on women/younger caretakers

Women and younger parental caregivers are being targeted for annuity purchase because they have less income and live longer. The National Institute on Retirement Security found that the average income of women 65 and older was 25% lower than that of men. In addition, women live longer, so their savings have to last longer. And fewer employers today offer traditional lifetime pensions. Annuity sellers are appealing to women by highlighting the need for more income from fixed annuities compared with low-interest CDs. Sellers say economists recommend putting up to 80% of assets into annuities. That’s B.S. Great for insurers but women then carry all the risk of reduced purchasing power over time. This is not ‘worry-free’ retirement because 1. how much annuity to buy, 2. when to buy, 3. what about inflation: it reduces by HALF the buying power of the benefit in 20 years, 4. not much for a legacy, 5. there is no upside potential and no large asset in case of emergency needs, 6. annuities are non-refundable, 7. you forgo the total return of a stock portfolio—no dividends and no capital appreciation. Yes, annuities last for your lifetime but spending power and assets decline over time.

https://www.amazon.com/Not-Buy-That-Annuity-Guaranteed/dp/1466494573

Can you afford an adult child moving back?

More families are becoming depression-era extended families. The question you need to discuss is ‘how this changes your plan for retirement’? If your child cannot afford to pay for some of their costs, are you willing to cut your retirement expenses short? More than 15% of 25-to-35-year-olds lived at home in 2016, according to The Pew Research Center, 5 percentage points higher than the previous generation. Sure, you can plan to work longer but not everyone has that opportunity. Ask for rent so they know you have limits. Let them know all their regular expenses like cell phone are theirs alone. Make the rules BEFORE they move back so there are no misunderstandings. For instance, they can do their own laundry—you’re lending them your machine and water. Remind them that you paid for their college education—running over $10,000 a year. The purpose of moving back is to give them money to finance their own independence eventually. Set a time limit so they don’t take over your home. It’s too easy to become dependent.

They need independence: https://www.amazon.com/DIY-Financial-Independence-Freedom-Workbook/dp/1088908500

New tax rates are issued but what about the $31 million watch?

This is a perfect example of what is wrong with our tax rates. How many dams could we repair with $31 million? Instead, someone spends $31 million for a watch? Something is wrong with our tax system. How can our society afford to buy a watch for $31 million but can’t fix the places where we spend most of our lives? Are the tax rates and code created for the rich so they keep more money for themselves? The rich get richer and the poor get poor—pretty soon there won’t be anyone left to pay the taxes. Example: Warren Buffett pays only 17.7% total taxes; all his employees pay 32.9%: HALF. Expert tax avoiders like President Trump, Mitt Romney and John Kerry pay less than 15%. Most corporations like GM Apple and Google hide income in corporate shells and pay 10% or less. Taxes fall much more heavily on labor income than on capital income. $31 million watch! How fair is a system designed to tax us DOUBLE what the rich pay.

Average people pay 33% in taxes: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

Another way the wealthy avoid their fair share of taxes

IRS says they are going to crack down on conservation easement transactions. Basically you get to deduct the reduction in the value of your property if you donate property for the public good. The reason the IRS is cracking down is because wealthy people overstate the amount of the reduction in value. IRS says there are billions of dollars of potentially inflated deductions as well as hundreds of partnerships and thousands of investors. Apparently there are people who promote this activity for profit. We are talking lawyers, appraisers, tax return preparers and others. President Trump used this trick to ‘donate’ unusable land (now an unused state park) and claim a huge income tax deduction. He said the land was worth $26.1 million: he paid $2.75 million. Syndicated conservation easements are included on the IRS's 2019 "Dirty Dozen" list of tax scams to avoid. There are easier ways to avoid income taxes.

Use your own legal tax shelter: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300/

Do you really need life insurance?

Are you single? Are you getting life insurance as an employment benefit? Does your spouse have a job? Do you have over $50,000 in all your savings/investment accounts? Do you have a HELOC or over 50% equity in your home? Do you own a business? Are you in the armed services? Do you have medical or student loan debt?

Consider the alternatives: https://www.amazon.com/Drop-Your-Insurance-Only-What-Need/dp/1448623391

Don’t forget to take your RMD by Dec 31

Every 401k, IRA and pension must be distributed annually after you reach age 70.5 otherwise you get fined by the IRS. The scheduled annual distribution amount is calculated on your balance of ALL tax-deferred funds the year before. You can rely on your fund company if ALL your accounts are held by them. The rates are determined by your age and life expectancy. Since we are all living longer, IRS will adjust the RMD rates next year. Since they will be spread out over more years, we will have to take LESS income each year. Taking less means adjusting our income requirements next year. RMD works just like an annuity—guaranteed income for life based on your assets each year. Unlike annuity, you don’t give up control and your purchase power may go up. You may leave a legacy too.

Plan ahead: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

Why 25% of wealthy don’t use a financial advisor

Wealthy folks want an advisor with experience, with fiduciary pledge and holistic perspective. Apparently, 25% of them can’t find this advisor or they don’t need one. Those who do have a strategy rely on diversification to manage market risk. Some folks see diversification as the answer to the advisor question. They don’t need an advisor if they know they can’t beat the market with quick trading, market timing, sector rotation and other crystal ball strategies. Besides, paying advisor fees, charges, and retainers can cut their potential accumulation in half. Some might even be taking Warren Buffett’s advice. You may be better off with Warren Buffett as your advisor.

https://www.amazon.com/Warren-Buffetts-Investment-Strategy-Forget/dp/1484822900

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

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

He "stumbles, slurs, gets confused, is easily irritated, and has trouble synthesizing information."

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

Ukraine gives in to Trump's pizzo extortion to nail Biden: Bloomberg-Warren2020?

GOP in Georgia, Texas Arizona keep Dems voting down using tricks: only way to win

Trump owes Scotland $290,000 in lawsuit over wind farm: long hate for wind power

Trump to just take land for WALL in TX: Family-owned land for generations not selling

Trump pays $ millions to keep taxes hidden from US: legion of lawyers at 5 courts

SCAMS/SPINS:

Morgan Stanley caught misrepresented its share-class: overcharged customers $1.5 mil

Boeing moving lawsuits abroad to save money after killing 346: CEO clueless.

Nudge caught false promises on profits from flipping houses: fake secret classes

Can broker be your executor/beneficiary and be fiduciary too: conflicts abound.

Lance Armstrong caught borrowing money from Raymond James customers: defrocked

Security Benefit Life caught misleading indexed annuity sales: doctored indexes

Google Apple vie for our checking account biz: all retail banking by phone?

Real Estate Agents Profit From 'Hidden' Commissions: house price up; fees up

Ed Sec DeVos backed Neurocore, a “brain training” company, offers fake cures

MyPillow caught claim of fake sleep study for cure sleep apnea: fine no jail

“Aleve is proven better on pain than Tylenol” is fake claim: no proof, it’s all in head.

Medicare “Free” or “low cost” back knee braces: scammers use your data for cash

Medicare Part B—doctors' fees outpatient services—increases to $144.60 per month.

BEWARE: Online low-cost low-benefit health plans misrepresent coverage: junk ins

SCAM ALERT: Facebook shut 5.4 billion fake accounts but billions likely remain!!

SCAM ALERT: Which debt collectors work for IRS? CBE ConServe Pioneer Performant

Another hospital doesn’t clean it’s equip: UCLA colon scope kills 2;

Bath power with talc being changed due to J&J asbestos talc legal history

Coast Guard rejected safety tips may have saved 34 lives in CA disaster: boat makers?

Nikki Haley fmr ambassador said Trump is truthful.

Trump: Ivanka 1^st daughter personally created 14 million jobs: 200 times US total!

Trump: rough transcript conversation Ukraine is really “recollections” of his people

Judge killed Trump’s reg allowing doctors to refuse patient care if religion objection

ObamaCare subsidies: $774 per month covers 67% of costs for family of 4: $60,000.

Mustang electric SUV? Who is marketing appeal to? An electric Mustang SUV? Uh

Would you buy Austin Martin SUV or it’s 12% bond? Can sports cars be SUVs?

New cars/trucks to avoid: 37 poor choices—quality, price, reliability, etc.

BEWARE: Self-driving Uber killed woman: not programmed to recognize people!!

NYPD bribes secure $18 million car insurance fraud scheme hospitals, docs, etc

Abou-Khatwa caught defraud CareFirst BlueCross Blue Shield & fictitious employees 

Head-injury lawyers win verdict from GM but hide the evidence of GM killing 5,000.

Jobs

Most parents admit don’t have time for kids: Most kids battling anxiety most stressed generation

80% Millennials Believe Aren’t ‘Good Enough’: constantly feel “overwhelmed” by pressure to succeed

KY Dem Gov cancels work requirement for Medicaid coverage for 95,000 in need

Apple grant for housing as 30,000 middle class leave San Francisco in shortage

Pilots who warned Boeing of 737 Max bad design in 2016 sent away in reprisals

What you should be earning if your 1980 job kept up with inflation: 30K then; 98K now.

Miracle:

Small town hero shows love by example: He could have wasted $ on homes, cars etc

Blood test detecting breast cancer up to five years before any actual clinical signs in UK

Venice under 6 ft flood: 6 times 1200 years; 4 in last 20. Climate change!

Germany ends coal mining in 20 years: currently 1/3 power from coal. US ends Paris A.

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

How long to hold stocks?

How long do we have to hold stocks to win with stocks?

Wall Street media gives the impression that we should sell just before they go down when an analyst thinks they will. But analysts can’t see the future. So we follow someone’s ‘advice’ or the crowd and we lose. Guess what happens? Advisor-managed equity accounts earn 5.19-3.79% vs 9-11% for a simple market index fund of stocks that remain for long periods. What does one of the most successful investors say: he says hold them “forever.” He bet $1 million against a Wall Street guru to prove it. He has owned Coke since the 1980s; Geico since 1996; Amex since the 1960s; and many more. How has Buffett done so far? His average return is 20.5% per year since 1965. Not bad.

Maybe we should follow his advice: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

How do millionaires start their savings plan?

Unless you inherit your father’s $413 million you must start your $1,000,000 fund somehow. Survey says save 10% of income is how you begin. 80% of the self-made millionaires studied didn't get wealthy until after age 50 — but that almost all of them started the same way. They used ‘buckets’ to make their goals specific. Each bucket has a specific saving/investing vehicle. Short-term expenses are funded from savings and CDs while retirement expenses are funded with low-cost securities. The rich increased their savings as their income increased meaning that they learned to live within their means—80% of income for current expenses and 20% for the future. Millionaires understand the Miracle of Compounding. Stocks earn 11% a year: $1 million in 34-36 years; $2 million in 40. If Don had just used a stock index he would have $11 Billion by now, not $3 Bn.

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

Not all S&P 500 index funds give great returns

Unfortunately, not all S&P 500 index funds act the same. Some don’t follow the benchmark so they don’t produce 11% over time. DALBAR tracks the index and equity account returns over time. So we know some employers use an index fund in their 401k plan that actually doesn’t follow the benchmark they are supposed to track. Insurers in particular are providing expensive or poorly designed index funds to smaller employers. Employees are suing Community Health Systems since it uses Principal Large Cap S&P 500 index fund. This fund allegedly lagged its benchmark by an average 9.1 basis points between 2010 and 2018, while similar funds offered by BlackRock, Vanguard Group, State Street and Northern Trust lagged by roughly 1 to 2 basis points on average. This underperformance, plaintiffs claimed, led to poor performance that lost participants some of their retirement savings. Over long periods of poor tracking and or high fees, employers actually cut employee retirement packages by 63%. For some employees, it would be better to use a self-directed Roth IRA account instead of the company’s plan. A Roth IRA is tax-FREE after age 59.5. It can earn 11% over time.

Roth IRA with auto debit: https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938

Why do the most expensive cars have the most problems?

Land Rover, Mercedes-Benz, Volvo, Jaguar, Acura. These are some of the most expensive cars you can buy. So why did JD Power survey of owners find they have more than average problems? The annual J.D. Power study gauges dependability of 3-year-old vehicles over the last 12 months, meaning this year's survey assessed the 2016 model year. Let’s look at management/owners for the answer. Lexus and Toyota seem to be consistently near the top of the list of fewest problems. Who owns the bottom feeders? Fiat, the most problems, owns Alfa Romeo, Chrysler, Dodge, Ferrari, Jeep, Lancia, Maserati, and Ram. Tata owns Jaguar and Land Rover. Zhejiang Geely owns Volvo. Ford owns Lincoln. Honda has Acura which is usually high on the list. BMW owns Mini and Rolls Royce. Renault owns Nissan and Infiniti. VW owns Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT and Skoda. Management determines how well it’s built.

Use the best insurance owners too: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

First time in US: $50K a year earners now pay higher tax rate than Billionaires

US is no longer a progressive tax country. Trump has given his class what they wanted. The TV celeb has reversed most progressive trends. As Warren Buffett illustrated, his assistants pay a higher rate than he does: they pay 32.9%; he pays 17.7% with no special tax shelter or overseas account like Apple, Google, Amazon, Boeing, GE, etc. 2/3rds of all businesses pay $0 tax. Plus we taxpayers must subsidize many profitable businesses like oil, gas, agribusiness, air carriers, etc, etc. Many aren’t even American.

Use your tax-free account: https://www.amazon.com/Tax-Shelter-Young-Americans/dp/1500426520

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

This period is a test of democracy—do we really want it or not?

Trump wants China and Ukraine to investigate candidate Warren and Biden

Can China and Scotland and Russia investigate Trump cos. too?

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

We pay for meds: 11 suspicious deaths at the Louis A. Johnson VA Medical Center

Will FBI investigate Don’s mob foreign activity: conspiracy, bribery, extortion?

Trump promised cheaper drugs AGAIN but cut $845 billion from Medicare budget.

Trump wastes Syrian war with Kurds help to Turkey in exchange for Trump Towers

Trump recalls troops despite GOP: what about 150 other countries with troops?

SCAMS/SPINS:

Bank fees rise as interest rates fall: bank management takes bigger bonus

Wealthy drug dealers use bankruptcy to keep drug dealer profits

AL hospitals pay ransom ware attacker for data key: hides facts

Apple: iphone 6 may just quit on you

Guns for protection! Two men opened fire at a bar in Kansas City: 4 died; 5 injured

When everyone has a gun: family is likely to become a victim

James Booth Ins Trends, defrauded 40 clients of $5 million promised “safe high returns”

Annuities lobby using Rolling Stones to push expensive retirement contracts

GE stops accruing pension benefits to 20,000 employees: start own tax-FREE pension

Richard Brown caught taking bribes to get clients to buy stock that lost money

School retirement plans accused of overcharging teachers for 403b options: poor service

Trump: Mob runner “Rick Perry made me call in favors from Ukraine”

McConnell promises impeachment block if GOP gives him money: Putin helps too

GOP party AFTER Trump leaves: no stand—allowed Kurds to be kicked out.

Trump’s judge delays tax return to Attorney General investigation: mob got to him?

Giuliani’s henchmen refused Congress regarding Ukraine extortion plan

State Dept refuses Congress testimony of Sondland: Dictators do this

China says it won’t help Trump get dirt on candidate Biden as requested

MN police using uniforms to show Trump support: Citizens see bias not ‘to serve’

WV group prepares for ‘civil war’ Trump predicted “veneer of civilization is very thin”

Trump calls Congress’s bluff: ‘I won’t play’—what you gona do about it?

“Official Impeachment Defense Task Force” gives Trump $ millions on Facebook

Jobs

BedBathBeyond closes 60 stores

HP cuts 9,000 jobs

Meredith cuts 1,200 jobs at Sports Illustrated, TIME, Fortune, Money

Health care jobs are changing: ‘touch’ industry grows with aging

Who owns your account now?

Your driver's license needs a star at the top in order to fly: new to catch terrorists.

CO offers new state health insurance option to lower costs for individual cover.

Students who file FAFSA early get the biggest worm

Miracle:

Miracle: Pope still allows priests to abuse children and women: no accountability

Bear cubs escape locked van but caught using horn to get out

“He bravely came forward to testify when others wouldn’t”  Witness killed in Dallas.

Mom gives up her terrorist son: plan to kill thwarted—saves lives but cost her a son

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts

most important factor in investing success!

What is the most important factor in investing success?

Picking the right stock? Using the star advisor? Investing with the largest firm? Using the advice of a trusted friend/family member? Doing your own research? Buying the most successful tip sheet? Listening to TV gurus? If you are relying on any of these investing patterns, you may be surprised to learn that for your long-term goals, cost is the secret to success. Wall Street is finally getting the message that John Bogle prophesied years ago: Cost Matters. Bogle thought this was just common sense. If your investment returns cost you too much, you are earning less than you could. For most of us saving/investing for retirement, the results are in: stock index funds over time earn 11%. Even more interesting are the returns by stock sector compared to other investment vehicles. Most advisor-led investors are earning 3.79% or less over time. Trading securities is a losing game! The house is the only winner. What are the best stock sectors to own: Energy, Health, Info Tech, Consumer Staples—from 12% to 10% over 20 years?

Avoid COSTLY ETF and mutual funds: https://www.amazon.com/Best-Predictor-Investment-Success-Cost/dp/1502524082

Are you saving/investing enough for the retirement you want?

This is the No 1 question people ask. First, take the FREE money from you employer if you have a 401k. It is FREE money! Of course the earlier and the more you save/invest the happier you will be. However, since most people take home about what they did since they began working (inflation-adjusted) it may be impossible to save/invest more. If this is your situation, rethink the type of investments you use. Why? This may be the only way you will have enough later. EX: $250 a month invested in a low-cost S&P Index fund for 35 years provides enough ($1 million) for most retirement income needs. If you wait just 10 years, the same benefit will cost you $825 a month. If you use stable value funds, you will need 55 years to match this goal. The lesson is that stock index funds are better for your goal IF you have more than 15 years before retirement. Either more time or more money. That is how investing works. Over time stocks have LESS risk of goal failure than bonds. Bond earnings don’t beat inflation.

TIME gives you enough: https://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016

Will Social Security survive for your benefits to be paid?

No one can predict the future but actuaries come pretty close. By 2035, benefits will have to be cut according to a recent trustee report. However, since many people will receive less because they are taking the lower-benefit option early, it may not be as bad as it seems. New research says beneficiaries are giving up $3.4 Trillion. A person eligible for a $725 monthly check at 62 could get a $1,280 check if they wait to start at age 70. About half of older Americans get most of their income from the program. Only 4% of retirees are waiting until age 70 to claim Social Security even though they could earn an extra 8% per year. Originally, the plan was set up for benefits to end soon after age 65. Now a 65 year old will need 20 years of benefits. Unfortunately, the techies have not made an ‘algorithm’ for the optimum benefit age. Paid advisors have not been much help since they get paid to sell products not calculating your best benefit age. Politicians are not going to raise taxes to help the poor. Other solutions have been discussed but none are likely by the 2020 D.C. officials.

Make a plan: https://www.amazon.com/Forget-Social-Security-Medicare-Make-Lifestyle-Security/dp/1466394285

Broker/advisor skills are changing

With the industry maturing, advisors need to become specialists for our specific needs. Robo advisors, planners, target-date and sector funds, ETF and discount trading platforms will take each segment and provide very specific services. We need to know what we need so we don’t become victims of fraud and excessive costs. Like medicine, we obtain a diagnosis (plan) from a fee-only planner, and then fill the script (product or service) from a drug store automatically (stock or monthly IRA contribution). Only the rich can afford a full-service brokerage firm like their lawyer on retainer. We will be better served by getting what we know we need and not paying for stuff we will never use (global asset management). Most people need nothing more than a low-cost 401k or IRA invested in stock or stock/bond fund. The rest is just a drag on our future Wealth Reserve.

Build your wealth easily: https://www.amazon.com/Your-Wealth-Reserve-Save-year/dp/107028288X

Are you following Warren Buffett’s strategy?
Buffett’s simple strategy beat 5 different hedge fund strategies over 10 years. Buffett bet $1 million he would win for his charity. He won. Buffett’s strategy is simple—but hard. Over time, this strategy produces over 11% whereas the average investor managed by an advisor produces 3.79% according to DALBAR. Unless you enjoy gambling with your future retirement income, why would you give most of your potential nest egg to your broker/advisor? Buffett’s strategy is hard because we are not allowed to stop investing or trade or market time with our long-term investment money. This is why the Target-date funds are so popular. We are having our contributions invested every month automatically. We can’t miss a stock sale if we don’t think about our money as bank savings that we lose permanently like a bank failure. Even if the market falls 50%, we still own the same number of shares so when it rises we will still be able to meet our goals. If you would rather have $1 million in 35 years (@11%) vs $220,000 (@3.79%) after investing $250 a month then you must leave your money alone to work. You own the shares of the biggest 500 firms in the world. They aren’t going to fail.

Buffett’s strategy works: https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373

Easy way to save for the future—

Use the money you save by buying direct: auto, home, life, other insurance and expensive 401k and mutual funds. Create a Wealth Reserve: use savings on financials you already pay for. The financial industry has changed so you can buy with discounts or at Costco-type outlets. Example: MetLife charged $983 for the same $300,000 30-year term policy as SBLI provided for $384. Their financial strength ratings are A+ and their underwriting requirements are the same. The difference, $599, over 30 years is $17,970. If invested, this difference can add $175,000 to YOUR Wealth Reserve later when you need it. The SHOCKER: the median net worth of a 33-year-old is just $8,525 including home and car! Buy direct—cut out the middleperson: benefits are the same.

Build YOUR assets; not theirs! https://www.amazon.com/Your-Wealth-Reserve-Save-every-year/dp/107028288X

CA employers gain easy way to offer retirement fund

CA has created an IRA-type account for workers who have no 401k. In coming years, employers with at least five California workers will be required by law to provide retirement savings benefits to their workforce, which can be done through CalSavers or the private market. CalSavers solves 3 problems: “it’s easy to facilitate, employers have no fiduciary liability, and there are no fees for employers. Employers are only responsible for providing us with their employee roster and then remitting employee payroll contributions each pay period.” Employees keep the account when they change jobs. They can pick their own investment options. The account is a Roth IRA for tax-FREE retirement. Employees don’t have to do a thing—automatic enrollment. Unfortunately CA has chosen State Street as the money manager which costs 0.825 to 0.95% of assets every year whether you do well or not. This is high compared with Vanguard and Schwab at 0.04%. However, for most working people who do not have an alternative, this is great.

https://www.amazon.com/Pay-No-Taxes-Retirement-legally/dp/1507527977

**********

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

Can gov do anything? How about shutting RoboCallers, Scammers, Fraud?

Do Not Call List is a joke. Robos actually use the list to call/scam/steal.

Trump’s 4^th celebration is now tank/military exposition a la Red Square. His envy!

But did the Army really take over the airports in 1775? Was this Putin’s speech?

Can an Executive Order trump a Supreme Court decision?

SCAMS/SPINS:

Drugs that are associated with dementia: strong anticholinergic drugs

Assault is crime for some and not for others: Pick ‘Good Family’ every time!

Is Ted Cruz really like Rosa Parks? He wore blackface in the back of the bus?

Will gerrymandering and Citizens United kill democracy: 1 person; 1 vote?

Anthony Fusco Legend caught churning, fraud, etc was fined but went bankrupt.

Kristofor Behn Fieldstone caught stealing $1 M by misleading clients: no jail

Jobs:

Drain the swamp? Here is why we can’t understand what government is doing.

Quantum computer: how to ship stuff to your home efficiently

Your cash keeps your brokerage firm afloat: Sweep Accounts steal your cash

10 best entry-level jobs for college grads: electronics, nursing, etc. 

Who owns your account now?

NJ creates own state health exchange to maintain ACA protection of coverage.

28% of us have no emergency savings; One in four have a rainy day fund, but not enough

Miracle:

Chick-fil-a worker jumps from window to free child choking on seatbelt: cut with knife.

A catholic school refuses Archbishop’s order to fire ‘valued employee’ who is gay.

Radio listener heard plight of payday loan victim and paid off the loan.

Arctic fox walks 2,700 miles from Norway to Canada in 4 months in the [really] cold.

Teachers learn how their students worship: diversity training for adults

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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