DIY Financial Independence
Put your money to
work so you don’t have to.
Use your
IRS-approved tax shelter—Pay 0% on asset gains. Accumulate $250,000, $500,000 even $1,000,000 tax-FREE. You achieve Financial Independence by having enough money to do what you want.
When you don't have to rely on work to survive, you are financially
independent. Playing it safe won't
achieve it. You don't have to be super wealthy to become free of money worries.
Financially independent people have one thing in common: they put their money to work so they
don't have to. If you don't put your money to work, you will never be free. 'Compound
interest' is the name of the process by which money makes money. You don't need to do a thing besides
sending $250 to work every month. You earn money every time you buy things. You
own part of the businesses.
Compounding is what Warren Buffett counts on for success.
“My wealth has come
from a combination of living in America
compound interest.” How much can your money
earn for you? It depends on how long it works and where you put it to work. The
best strategy is to use your Wealth Reserve to shield your money while it works. You can
use a special IRS-approved Tax-FREE account to avoid all tax on investment
dividends, earnings and interest. You can also avoid the fees and commissions
on this account. Your $250 a month investment may grow to $1,000,000 or more
and it is all tax FREE. That $3,000 a year for 33 years ($99,000) compounds to
$1 million if you put it to work.
Why do we earn so
little in a managed account?
In every period of
time for the last 30 years, we earn much less in our advisor-managed account.
DALBAR tracks the performance of our accounts versus the market indices and
finds less each period. For the last 30 years, we
earned 3.79% vs 11.06% for the market. Morningstar blames costs: “In every
single time period and data point tested, low-cost
funds beat high-cost funds." It is a Wall Street myth that we need an
advisor. Now we have research and data that tells us (for free) that we can earn more by paying less. Trading,
market timing and expense ratios can reduce
our total possible accumulation by 63%. Most clients claim they
need an advisor for guidance but they don’t consider inherent conflict of
interests. First, advisors can’t give unbiased advice: they sell what
for-profit firms pick for profits. Second, advisors are trained as salespeople—they
don’t know what the markets will do. They learn to win our trust so they
can sell us anything. Third, most advisors do NOT know about the best products
for us. The products they sell must have higher costs built in. For instance,
most 401k and 403b savers/investors
believe their employer does not charge for their retirement plan. Most
think the plan was chosen wisely: greatest benefit possible for us. There are no
price tags on the retirement stuff we buy so we end up with $104,000
instead of $151,000. Your plan costs are hidden because your employer does not
want to pay for them. Ask how much you pay!
Pick Buffett as your
advisor: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963
Are commission-FREE
ETFs really free?
Schwab has just
added to its platform of no
commission index (ETF) funds. Fidelity and Vanguard are in the price war
too. But are there no costs involved? its bid/ask spread--the difference in the
lowest price a seller is willing to accept and the highest price a buyer is
willing to pay as of the last trade--was wide. When the spread is wide, you can
end up paying
more for an ETF than it is actually worth--and this can easily add up to
more than a broker’s $10 trading fee. Unlike open-end mutual funds that are
bought and sold at Net Asset Value (NAV), ETFs are traded throughout the day at
whatever price clears the market. At times, an ETF’s price may deviate from its
NAV. When an ETF’s price is more than its NAV, the ETF is trading at a premium.
When an ETF’s price is less than its NAV, the ETF is said to be trading at a
discount. If you buy an ETF at a premium, you’ll be paying more than you need
to and putting
yourself at an immediate disadvantage. Likewise, if you sell an ETF at a
significant discount to NAV, you’ll essentially shortchange yourself on some of
the gains. Some ETF’s are not traded often so you may have trouble selling
them. Some have fees to sell if not held long enough. Some do not perform well
so you lose. In real estate trusts, some are earning 8% where others earn 5%.
Unless you have insider information, regular funds have better long-term
returns.
Trump’s ‘National
Socialism’
Trump’s tax-credit party
is now demanding another
tax cut for the rich. Every American who pays tax on their capital
gains—dividends and earning from capital—will pay less tax. National Socialism
means money from every working person that pays tax on wages will be used to
benefit the top 5% of the wealthy who live
on their capital. Wealthy folks demand more
tax cuts after receiving a huge windfall this year. That’s outrageous! TX
Cruz bid for reelection is cemented by goosing the Treasury Secretary to ignore
Congress and just declare the tax break on capital by an executive
order dictator. Meanwhile, Trump’s
new tariffs will slow sales, jobs just to pay
for new tax cuts for the rich. Trump
still thinks China tariffs are paid by China China
Another way the
wealthy avoid their fair share of TAXES
You could do this
tactic if you had the money but you don’t. Wealthy
buy or keep art then take a loan against it. They spend the money as tax-FREE
income. Living off your Rembrandt for years? The majority of art lending
clients are ultra-high-net-worth individual art collectors, according to a
report by the European Fine Art Fair, with dealers accounting for just
under 10% of borrowers. Most lenders will lend up to 50% of the value of the
artwork, so a painting appraised at $10 million will be good for a loan of up
to $5 million. Lenders across the industry said default rates are typically
very low, almost negligible. Some borrowers are opportunistic—when they see a
good business offer, or a chance to buy a great work of art, they want access
to capital, and fast. An art lender only needs to value the art and write up a
contract, compared with, say, a mortgage lender, who might need extensive
credit checks, salary history, and the like. “It’s a way to buy art without
having to disrupt your life.” Some just want more capital to buy stuff.
Shelter your income too: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300
**********
How Govt wastes our money: Congress spends another Trillion we don’t have!
States rejecting the
Obamacare program has come with a cost: rural
hospitals gone.
GOP
plans cuts in Social Security by just refusing to consider funding options.
Juries nixed: Trump
to free the criminals HE likes: “I thought he was treated unfairly”
TX law gives greater
access/use for guns Sept 1: Tragedy
incites more armament.
Trump agency
warning visitors to US to ‘generational fight’ ‘public is asset to prevent’
SCAMS/SPINS:
McConnell
role in aiding Putin’s mob to buy factories in his state show bias.
Supreme judge
can never be prosecuted for his crimes: justice? ‘I
could kill someone…’
Credit
card debtors buy more stuff because they owe anyway: we can’t quit
addiction?
Travel
insurance: a joke? List
of exclusions is long: preexisting conditions
Best Hospitals
USNEWS report: your
state caregivers: Clean
your colon scope before?
Health
care costs high for only 3 illnesses, study shows. Pharma makes a killing.
Congress would rather
have gun lobby MONEY than clean hands: AR
mags still legal!
Calls from Social
Security: Know
your caller—SSA does not call to ask for your number
Sales
people must follow ‘best for buyer’ fiduciary standard in NY after Trump
killed it.
Robert Shapiro caught real
estate Ponzi: sold as ‘safe’ plots at FL hotels/restaurants: jail.
Hector May NY caught
stealing $11.4 million Ponzi (buy bonds) gets 13 years
Commonwealth taking
money from Preferred Portfolio Services clients: no disclosure!
TrumpCare
policies payout only 40% premiums on our medcare: 60% to admin, profits.
Jobs:
WV seals record of
disability benefit case: protect
your med, personal, work data
Bit
coin payment through BitPay was now available to AT&T mobile customers.
Individual Coverage
HRA: employer
funds account to help buy health care vs Group care
Who owns your account now?
Taxes
on my life insurance policy?—sell, surrender, drop—all have consequences
NH
allows brokers to hold up withdrawal if client cannot manage accounts.
Your
advisor no longer answers your calls but telephone tree does: they ‘sold
and stayed’
You may be paying
for your retired advisor’s nest egg for the next 20 years.
Miracle:
Save this spaceship:
July
hottest month ever—since the dinosaurs! Talk is cheap.
What
is it going to take to end MASS murder? Reagan man Brady shot; got GOP
action.
IAN
41 Watchung Plaza,
B242
973.746.2014
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