Your Unbiased Advisor: next coup

Showing posts with label next coup. Show all posts

Friday, May 7, 2021

Can your advisor really give you the best deal?

Perfect gift for your graduate

High school and college graduates need the best gift you can give them: a future of tax-FREE income. Get them started now since your gift can grow a THOUSAND times its value over time. For instance, $50 invested now can provide them with $20,000 when they need it later. Since you have started your graduate off with this special IRS-approved tax shelter they will find it easier to keep saving/investing the right way. They will end up with a tax-FREE retirement. They can create a $500,000 tax-FREE account. Some young people have grown their accounts to over $1 million by investing $167 a month for years. They will pay NO taxes on their wealth. They can avoid future tax increases. They can boost their savings by 30% just with the tax savings alone. And if they need a home down payment or business start up fund, they can use the contributions tax and penalty FREE.

Perfect gift: https://www.amazon.com/Tax-Shelter-Young-Americans/dp/1500426520

When you win the lottery, follow Warren Buffett’s advice

Let’s say you win over $1 million. What do you do—pay half to the government and spend the rest? Historically, most winners end up with no money within 10 years. Instead, you could live on wealth income for the rest of your life. If you think you won, first, don’t sign the ticket. Contact a lawyer who can help with setting up an entity to claim the winnings and perhaps reduce the taxes. In some states, you can avoid publicity and ‘ugly relatives’ this way. Next you want a fee-only financial planner to help work out the use of the money after taxes. (Our CFP cost only $300 in 2018) If you choose the long-term payout, they could help you obtain a loan to fund your immediate spending needs (cars, mansion, travel, expense accounts, etc). A bank would love to help you since your entity can guarantee loan repayment. At this level of wealth, you don’t need to speculate on stock gambles. Follow Warren Buffett’s advice and use low-cost Vanguard funds to power your next 50+ years. He’s got $100 billion so he knows where to invest it.

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

Do you need a financial miracle?

How long does it take to save $500,000 for retirement? Your best CD rate today is 1% for 5 years. It would take 100 years saving $3,000 a year (250 a month) to hit your goal. For most of us it will take a miracle to reach our goal of $500,000. The miracle we need is called compound interest. It works like this: if we took a calculated risk and invested in the changing top American corporations and reinvested their dividends into the business earning on average 11% a year, we would reach our goal in about 27 years. Long-term investors in low-cost stock index funds earn 11% a year on average—not every year but over their working lives. Check out how much you could have earned in stocks every year in the last century: http://www.moneychimp.com/features/market_cagr.htm.

So the choice is yours. The probabilities of the miracle of compounding working for you to reach $500,000 are over 90%. You are certain to never reach your goal in your lifetime using ‘safe’ bank CDs. In fact, you will lose money because inflation of 2% a year is greater than earning 1% a year. You need your money to earn money on its earnings too.

You need a miracle: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513/

Do you need financial future insurance?

Do you have a financial future? Set and reach your money goals. Set-up a tax-FREE investment account. Buy and hold 10 mutual funds all your life. The greatest impediment to financial freedom is debt. Most of us live paycheck to paycheck. Freedom from our chains of lifelong payments requires immediate action: cutting credit cards and amputation of some of our costly toys and habits. Going cold turkey is the only way to save our life in rehab. When we have financial freedom, we can buy new toys using the profits from our investments. Right now, you are making other people wealthy from your monthly payments. When you pay $161 per month for 10+ years on your credit card balance of $10,050, you will spend at least $19,360. You pay almost double for that same $10,050! I will show you how to be on the other side of the deal—collecting $20,000 for your investment of $10,000. Over time, you can be your own bank and own your toys outright. Your investments can provide you with a home down payment or business start-up. You can be assured of a financial future. You could be a millionaire from $9 a day. See page 39. Listen to how this parking lot attendant did it: https://www.youtube.com/watch?v=qlUIOxQr3bo. Unfortunately our schools don't teach us how to avoid becoming debtors for the rest of our lives. They could teach us how to accumulate $1 million by compounding $9 a day. If we learned how to double our account early, we would save ourselves the grief of financial enslavement for the rest of our lives. We could learn the simple financial essentials—accumulate assets as soon as possible. We don't need complicated insurance, mutual funds, or financial products to have the good life. We can buy our freedom with only $9 a day. We don't waste $3,000 a year on high-cost financial products and taxes. We avoid the two KILLERS of wealth accumulation—taxes and fees.

Get free: https://www.amazon.com/Financial-Future-Insurance-mutual-funds/dp/149355204X

Apply for Medicare B healthcare at Social Security

You need to apply online since most Social Security offices are closed. (I never found out why you apply for Medicare B coverage at SS offices.) If you currently have employer insurance, you may be able to buy Part B (doctors) coverage when you retire without paying the extra cost. You need proof from your employer that you qualify for special enrollment by using form L564. When you have your app form 40B and signed L564, fax them to your local SS office and call immediately so they can find the forms on their computer. Otherwise the DeJoy mail delay program may delay your coverage start date. Your app gets assigned to operators and eventually you can verify you have coverage via your online Medicare account. At this point you can prove to a private carrier that you have Part B if you are buying Part C & D an Advantage plan or Medicare Supplement to cover the gaps in ‘original’ Medicare coverage. America is the only country to make health care as complicated as possible so citizens are discouraged from getting coverage.

Start here: https://www.ssa.gov/benefits/medicare/

Can your advisor really give you the best deal?

Can advisors who get paid for sales volume really act as your fiduciary—acting only in your best interest? This historic debate continues as it becomes easier to manage your own money. For instance, a simple market index increased 56% in the last year versus advisors who took home huge paychecks. Did they work twice as hard? Since the 90s, investors have found the better way with low-cost mutual fund provider Vanguard. John Bogle, founder, created the first large company index open to the public. The 500 Index represents 3/4ths of the stock market at only 0.04% annual expense instead of 1-2% for advisor’s securities. This is important since your retirement income is largely determined by your gains minus your costs: $3 million vs $1.5 million for 40 year $3,000/year investments. Vanguard members who own all the Vanguard funds can pay a fee for service when they actually need financial advice. Example: you retire with a 401k of $500K. Cost to move to Vanguard is 0.04% or $200 a year. Cost for your advisor: $5,000 to $7,500. Vanguard funds are the investments recommended by Warren Buffett.

Go with unbiased advice: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

How do you know you will have enough in retirement?

Congress is thinking of changing the rules for annuities. The industry has not been able to sell as many recently so financial lobbyists have been paid a bundle to bundle up changes that few in Congress understand. Annuity sellers want you to think you get a better deal by locking up your money with them instead of using the growth and income strategy. If living longer and going into retirement with less money were problems that annuities could solve, the changes would be great. However, remember that sales people make big bucks on annuity sales and you pay for all those promises. Annuities are guaranteed by an insurance company but they may not be able to overcome long-term inflation because the payouts are based on current bond interest and interest rate hedging. You may be able to receive more income from an annuity than current bank CDs but your future monthly income may not cover your expenses. It is better for you to follow Warren Buffett’s advice in retirement.

Buy growth and income: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

Your retirement income puzzle

You are required to start taking your pension and IRA money out starting at age 72 (70 ½ if you reach 70 ½ before January 1, 2020). And you must take out a certain amount each year whether you need your RMD or not. You can only estimate how much you must take since it changes every year. Also you must decide when to start taking your SS benefits. You get more by waiting but every person must make the decision for themselves based on their current needs not on some guess of future income sources. So how can you solve this puzzle? You could hire a professional financial planner for a one-time fee or keep paying your advisor 1-2% a year as your nest egg grows. Either way you will only receive an estimate from these folks. There is no guarantee for the future. The key according to those who have been through this process for years is to keep as flexible with your assets as possible. Don’t lock your money up long-term. Don’t put all your money in bank CDs or bonds or an annuity. No one solution is guaranteed.

Planning helps: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

Last chance to reduce taxes due May 17

If you owe, you have one last chance to get a refund or reduce what you owe. Thanks to the deductibility of a traditional IRA contribution, you may cut yourself a break. Instead of owing the government, you could have a refund. The amount depends on your situation. By opening or adding to your IRA contributions for 2020 not 2021, you give yourself a retroactive refund. Yes, the IRS will receive a contribution confirmation from your bank or mutual fund firm but at least you have one less bill this month. Even though every tax preparation company can get you an extension to file the paperwork, the tax itself must be paid by May 17. There are rules.

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

Where is that refund?

The Internal Revenue Service today reminds taxpayers that the most convenient way to check on a tax refund is by using the “Where’s My Refund?” tool at IRS.gov or through the IRS2Go Mobile App.

Where is the stimulus 1 or 2? If you did not receive stimulus 1 or 2, start filing here: https://www.irs.gov/newsroom/recovery-rebate-credit.

Stimulus 3? https://www.irs.gov/coronavirus/third-economic-impact-payment

Estimated tax payments are still due April 15. If you are self-employed or do not have enough withheld from a paycheck, pension or Social Security, you may have to send quarterly payments to the IRS. Tax returns for 2020 are due May 17 not April 15 but the estimated tax payments are still required on schedule.

IRS will redo your taxes and send refund if you paid tax on Unemployment 2020 or you paid ObamaCare’s excess advance premium tax credit repayment.

Have tax forms; will file … for FREE but WAIT . . .

If you have unemployment income, ObamaCare coverage you should wait to file since the IRS has not yet implemented tax-FREE provisions of the new Covid law. If you already filed and paid tax on your unemployment income, IRS says it will send you a refund of the tax automatically. DO NOT FILE an amended return to obtain a refund on this tax. Taxes due MAY 17 not April 15. Input the W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. forms you have. You can file for FREE online. If you didn’t receive a correct form, file a Form 4852. Usually filing your state return costs as little as $15 unless you buy the Pro helpline. Avoid $300-400 paid preparer fees—new IRS forms mean higher fees. Unemployment insurance is TAXABLE on the Federal income tax return; not on some state returns. Some states do not tax your SS and pension benefits.

Retirees did not have to take their RMDs in 2020 so taxes may be less: it was a good time to convert IRA to Roth IRA for tax-FREE future. Unless you were self-employed, you can’t deduct home office expenses of working from home. You can deduct as medical expense all Covid prevention supplies. Some states continue the health insurance mandate and penalty unless you have an exemption. Since the IRA contribution deduction has no age limit now, you may reduce your income/taxes by making a contribution of up to $7,000. The standard deduction went up to $12,400 single; $24,800 joint. Jan 15 last day to make 2020 estimated payments. You have to report your April/May and December/January stimulus payments even though they are not taxable. Some of us receive a bank credit; some a debit card; some a check. Even if you don’t have to file, you should file so scammers can’t use your SS number to mess up your IRS file. Tested E file software ratings. Efile Jan 15; IRS processing Feb 12.

E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

What to do if you can’t pay by May 17?

Avoid the penalty for not paying estimated tax. Ask for an automatic extension to file till October. If that does not work for you, you can apply for a payment plan. An individual can setup an IRS installment plan if you owe $50,000 or less and can pay back the amount owed in 3 years. If you are a business owner, you can setup an installment plan if you owe $25,000 or less. The IRS will charge a one-time fee of $105.

If you own less than $25,000 and can pay the amount owed within six years, ask the IRS for a streamlined payment agreement. The IRS will charge a one-time fee of $102.

Request an Offer in Compromise if you cannot pay the total amount owed. This allows you to settle your tax debt for less than the total amount owed if you will be unable to pay back the total amount owed within 10 years. The IRS will charge a one-time fee of $150. Given the pandemic economic hardship, apply for the extension to file now: https://www.irs.gov/pub/irs-pdf/f4868.pdf

Special circumstances help: call the IRS Taxpayer Advocate Service 1-877-777-4778 for free assistance.

More ways: https://www.irs.gov/newsroom/heres-how-people-can-pay-their-federal-taxes

IRS has $1.3 billion refunds for 2017 tax returns

Unclaimed income tax refunds worth more than $1.3 billion await an estimated 1.3 million taxpayers who did not file a 2017 return, according to the IRS. “Time is quickly running out for these taxpayers. There’s only a three-year window to claim these refunds, and the window closes on May 17.” If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. Filing instructions are available on the IRS.gov Forms and Publications page or 800-829-3676.

You have 17 days to collect your cash!

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

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

Cheney: Mr T is “poisoning our democratic system”

The BIG con: 2020 election was ‘stolen’

Facebook ban: Mr T used his account to "incite violent insurrection."

Judge: Trumpist Barr deceived us re: Trump prosecution

Terrorist blames FoxNews for attempted coup

When ‘Truth and Reconciliation Commission’?

How Govt wastes our money:

Landlords and tenants go broke from Pandemic as rich get richer by 55%

We pay Most corporations/wealthy don’t pay tax rate: we give many refunds or subsidies

U.S. companies are beating profit estimates at record rate: wages and taxes are cut

We spent more on Afghanistan roads than US roads/bridges

Gun injuries put over a half-million people in hospitals: costs us over $2.8 billion

GOP: we can’t afford basic food, health care or housing but gave $1.8 Trillion to rich

$700 billion: IRS audit rates for millionaires fallen 70% since 2011: 21,000 fewer staff

We’re screwed: “Uncollected taxes equal the total taxes paid by the lower 90% of taxpayers.”

SCAMS/SPINS:

The Cheney GOP party vs the Trump GOP party: a Dem win?

GOP leaders denounce vax and protections from virus: get vax hidden from press Liars

Pence praising the man who ordered overthrow of gov and perhaps his death

GOP making policy to drink the Trumpism Kool-Aid: Americans stole their own election

GOP extremists going after Biden’s dogs: target Biden family at all costs

Trumpists making fake vax cards so they can trick family/friends to catch Covid

GOP killing FL TX mail-in voting--a GOP standby for years: Trump mails in

Trumpists voted illegally; not Dems: White gets probation; Black gets 5 years prison

Media outlets are predicting stock market bubble: does history repeat itself?

Fake media messages to manipulate us

NRA leaders hid personal expenses (yachts etc) as business expenses judge says

Gun injuries put over a half-million people in hospitals: costs us over $2.8 billion

Peloton will take back machines that kill kids: CEO’s stock (net worth) fell: Wow!

Fake mother ransom call uses mom’s real phone number: thieves steal numbers too

Not fake cubic zirconia: Pandora drops mined diamonds sells only lab-generated ones

Daniel Rivera NJ caught Ponzi fraud elderly: guaranteed REIT returns: 6 years prison

DaRayl Davis IL caught Ponzi $5.1 million church members guarantee: 13 years prison

Jared Ivanka caught overcharging misleading their tenants: mold and rodents: Jared sells

Fake text from bank is best money making scam: call or text bank instead

Fake designer eyeglasses and repair online: using bad reviews to get Google page 1

Fake magazine subs use credit card to steal $50 a month, then $1,350

Travel ID “real” license delayed due to DMV closings: due 2023

NJ bans single use paper/plastic grocery bags by ’22: BYO bags or stock up on plastics

World’s vax withheld from India: drug co decline to waive patent profits for needy

Sixth-grade Rigby ID girl brings gun to school; shoots 3

TX makes all streets a shooting gallery: no license required for all to pack

IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.

IRS: Free special ID protection PIN goes on your return so scammers can’t take refund

IRS: Previous tax returns available online: https://www.irs.gov/individuals/get-transcript

IRS tips to avoid scams: https://www.irs.gov/newsroom/tax-scams-consumer-alerts

Is it a scam? Check AARP scamline 877.908.3360. BBB Scam tracker

Check IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams

https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers

Find tax preparer: https://www.irs.gov/tax-professionals/choosing-a-tax-professional

Check Social Security: https://blog.ssa.gov/

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

Jobs

Farmer moves French border to accommodate tractor: lawyers busy for years

Skilled manufacturing jobs go unfilled: training critical: welder $54,200 base

You can refuse vax at job but also lose job: co-workers don’t want to catch virus

Need computer internet to find job: subsidy & $100 coupon

Solar jobs become more union wage scale

Who owns your account now?

Appliance reliability: https://www.moneytalksnews.com/most-reliable-appliance-brand

AOL and Yahoo to private equity firm Apollo Global: higher fees

Miracles:

CDC extended until June 30 a temporary moratorium on evictions: Trumpist reverses it

A Good Samaritan immediately jumped over the guardrail into the bay rescued toddler

Malian woman added 9 kids to her family in one hospital visit: save with bulk buying

Cooler saves 4 in hate crime: Chicago man runs over picnickers with truck; they survive

Yankees, Mets To Segregate Unvaccinated Fans At Home Games

Vigilance: only HALF of fellow citizens have vax so remain safe: 500 still die daily

Ending the scourge of Christian nationalism’s family separation: can world forgive us?

Jonah: 240-pound lake sturgeon caught/released Detroit River: 100 yr old 6ft 10in female

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/

Friday, April 16, 2021

Which type of broker/advisor is best for you?

Can I use my Roth IRA as my emergency fund?

Sure—you already paid tax on the money you contributed to a Roth IRA. However, there are a few rules to follow. When you withdrawal Roth IRA funds for an emergency or any expense, take the “contributions” first. Your custodian usually has a record of what you put in versus what that money has earned. Contributions can’t be taxed again and there is no penalty even if you are under 59.5 years old. If you are older, there is no tax either. Make sure you tell the custodian that you plan to put the money back in 60 days so they code the withdrawal properly. You are allowed only one rollover per year. Logically, you want to keep your Roth IRA emergency money in a money-market fund. However, many folks begin making contributions to a balanced (stocks and bonds) fund so they can build up the amount over time. Periodically move money to a Roth IRA MMF. When you need funds, make sure the money can be transferred to your bank account quickly. Do NOT let them take taxes out—you paid taxes on this money already. Don’t let them cut a check that you won't get for weeks—they like to hold the cash in their account as long as possible. You can even use this fund to pay no taxes later in retirement.

Build your tax-FREE account: https://www.amazon.com/Your-ZERO-Tax-Account-Wealthy/dp/1482772795

Which type of broker/advisor is best for you?

If we could know the future, this would be an easy decision. Bernie Madoff just died but his fraud is a lesson. Madoff pleaded guilty to 11 crimes: defrauded as many as 37,000 people in 136 countries over four decades. Mr Madoff was chairman of one of Wall Street’s regulators at one time. His investors gave him tons of money to invest because he promised to do his best and his creds were above many other advisors. Each week I document the many scammers in my old industry. There is no guarantee for investors. As a broker dealer manager, I saw how good well-meaning sales people can veer into trouble. Why? There are few safeguards in money-handling sales. The product is invisible. One is the designation called CFP. CERTIFIED FINANCIAL PLANNER™ Like a lawyer, they work for fees not commissions. The other way to help you avoid a Madoff type scam is to use a fee-only securities provider. Vanguard Group offers products via a unique corporate structure: We investors actually own the funds we invest in. There is no middle person/firm to take profits. Vanguard has salaried non-commission licensed “crew members” to help us. And Warren Buffett, one of the greatest investors, recommends Vanguard Funds. Use a less biased advisor without an incentive to steal.

Make Buffett be your advisor: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

We don’t have to pay off the $1 Trillion in taxes that the wealthy owe

The actual annual tax gap possibly exceeds $1 trillion per year, IRS Commissioner Charles Rettig told senators Tuesday. You and I know why the Congress does not do anything about it. Congress receives funds from the wealthy that let them hide their money from the rules that we must follow. We can’t afford to hire lawyers and accountants to set up offshore and intricate legal entities to obscure income. Remember how President Trump boasted that he doesn’t pay taxes because he is ‘smart’. Actually his staff is paid to hide his income. Since we only have one year available to see how he does it, we know one method—use the paper losses of a business to write off personal income. In the 1995 return he claims a loss of almost $1 billion: we taxpayers owed him a refund for many future years of his personal income. For the wealthy, even the ones that don’t hide income, the rules allow them to pay about HALF the rate we pay. Warren Buffett explains that he pays only 17.7%; HALF the 33% his staff pays. We have two ways to avoid paying for the national debt that the rich have run up. ONE: we start by using a business to cover some expenses and let the loss offset our income. TWO: we produce income inside a tax-FREE account. We produce tax-FREE income legally.

Start today: https://www.amazon.com/Tax-Free-Living-2012-strategies-build/dp/1477452702/

Is there a correct number of stocks to own?

Sure! Just one if you were Apple’s Steve Jobs or Microsoft’s Bill Gates or Amazon’s Jeff Bezos.

But most of us including Warren Buffett can’t know which stock will be the top grossing stocks of all time. So here is the answer as explained by Mr Buffett and his partner Mr Munger:

We like to put a lot of money in things that we feel strongly about. And that gets back to the diversification question. You know, we think diversification is - as practiced generally - makes very little sense for anyone that knows what they're doing. Diversification is a protection against ignorance. For most of us who know we do not know how to analyze businesses, we buy everything—an index of the top 500 stocks. If you know how to analyze businesses and value businesses, it's crazy to own 50 stocks or 40 stocks or 30 stocks, probably, because there aren't that many wonderful businesses that are understandable to a single human being, in all likelihood.

Charlie Munger said: The first rule of compounding: Never interrupt it unnecessarily.

If an initially very concentrated portfolio is likely to turn into an unbearably concentrated portfolio after a few years, then it's not really built with the long term in mind. So if you are clear on what you DO NOT KNOW, compound the index for 11%.

Buffett strategy: https://www.amazon.com/MasterClass-Buffetts-SIMPLE-Strategy/dp/1983485268

Which market sector will provide the best returns in the future?

Since we can’t know what is ahead and we can’t assume the future is determined by the past, which sector are you betting on? ETFs have become the broker/advisor security of choice so that they can trade every day. However, most serious investors know that fast trading prevents you from enjoying multiple-year compounding and dividends. So which one do you favor for the future? Energy is the current leader but can it return 30% in the next few years. Or will it fall out of favor like consumer staples? Unless you know your business sector well or have Mr Buffett’s talent for analyzing large companies, you may be better off skipping your broker/advisor’s recommendations and just holding a low-cost index of large or small, growth or value stocks. Actually the most popular choice is the large company stock index. John Bogle, founder of Vanguard Group, created the simple 500 index fund because his research showed it was better for us to avoid trading by expensive stock pickers. Investing does not have to be complicated.

Simple wins: https://www.amazon.com/Buffett-Bogle-Holy-Bible-Investment/dp/1523693045

How to “guarantee” a tax-FREE retirement income

Put your investing on automatic. Use Buffett's Investment Strategy: Set it and Forget it "… our favorite holding period is FOREVER.” Manage the account only once a year! Contribute $9 a day, $250 a month. Accumulate $55,000, $200,000, $1,000,000 over time. Use a special IRS account for Tax-FREE income. Use only low-cost high-return mutual funds. Warren Buffett's Investing Strategy is buy and hold FOREVER high earning companies. This allows compounding to work. Compounding is money earning money on its earnings when it is invested. Invest your money in businesses sharing profits with you and over time you can reach $1,000,000. A special account makes it tax-FREE. Tax-FREE is like a $300,000 bonus. When we invest in successful businesses, we can earn 10% to 12% a year. After 10 years, we can have $55,000 because the businesses paid dividends and we reinvested them. After 20 years, we could have $200,000 and after 33 years, perhaps $1,000,000. Over time, stocks are safer than bank CDs because we earn more than inflation subtracts. We have more buying power. Compounding works best when we put our money to work in successful businesses paying us dividends and stock splits. When we use a low-cost AND tax-FREE account, we avoid fees and taxes so we keep more of our money to compound. See how fast our investment can grow if we invest it in businesses like the ones we use every day.

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