What to buy in a bear market
If you are holding a broad-market balanced set of assets, like
Vanguard’s Wellesley
Income Fund, you have seen the results of a bear market before. Living
through economic hard times makes you appreciate owning a little of everything
because you learned your lesson before. Market timing and stock speculation
don’t work. Very few ‘professional’ investors have been successful. Patient
investors always are better off in the long run. No segment or sector will save
you all the time. Even
those that have fallen far— Apple, Microsoft, Amazon, Alphabet,
https://www.amazon.com/Patience-profitable-passive-investments-Street/dp/1986843777
What does spending
look like in retirement?
As you face
retirement, what will you buy in retirement? Only
4% of retirees are debt free: most carry credit card debt, mortgage, and
car loans. 25%
of workers over age 40 have no savings. Most people don’t change their
habits much—housing, food, transport, health care, utilities, fun. Most
retirees average $52,141 a year. By comparison, the average across all
households is $66,928. You won’t need work clothes or commutation to work. You
won’t need to keep up your tax-deferred savings/investing plan at work. Health
care may take more as you get older. Counting your retirement income sources
may help you define the limits of retirement spending. There are expensive
loans from the equity in your home. Taking a smaller place in a cheaper town
may be another option. Planning in advance can make your retirement much more
pleasant. That’s how folks create a comfortable retirement.
https://www.amazon.com/Your-Retirement-Spending-Plan-enough/dp/1461084016
Congress to increase
the amount we can save tax-advantaged
Congress may increase
the catch-up contribution amounts since many workers stopped investing for
retirement during the pandemic. New legislation would increase the catch-up
contribution limit to $10,000 for older workers contributing to 401(k), 403(b),
and governmental 457(b) plans and up to $5,000 to SIMPLE IRA or SIMPLE 401(k)
plans. As Americans work and live longer, they need more options for when they begin
drawing down retirement savings. This reform gives retirees flexibility and
choice by raising the required minimum distribution age from 72 to 75. This
change will help many Americans address concerns that they will outlive their
retirement savings. The
SECURE Act 2.0 would increase
the start-up cost tax credit for small businesses to establish retirement plans
for employees — and the House-passed version of SECURE 2.0 provides a
meaningful new credit for small-employer contributions up to $1,000 per
employee. You can save tax-deferred or tax-free.
https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938
Are online automated advisor search programs right for you?
There are no-cost online services that make it “easier than ever to find trustworthy financial advisers in your area.” SmartAsset is an example. After filling out a short questionnaire, you are provided with the names of local financial advisers. Some are working for a brokerage firm and some for an insurance company. The questions include how much “investable assets” you have. This is a clue as to the kind of advisor you are likely to be presented with. Some require you to have over $1 million in assets. Most can provide you with sound money management help. ‘Fiduciaries’ are advertised as providing products in your ‘best interest.’ However, if your goal is an unbiased financial plan, you must find a fee-only advisor. Look for one that has a CFP® after their name. They charge a fixed fee because they don’t live on commissions and ongoing fees as advisors do. The list is at their site: https://www.napfa.org/. If you are facing a divorce or change in asset structure, look for a specialist CDFA https://institutedfa.com/find-a-cdfa/. Make sure you know what you want from an advisor since there are many specialists in the field. And be sure to check out their ‘rap sheet’ before you give them your money.
Learn before you commit: https://www.amazon.com/Yourself-Personal-Finance-commissions-charges-ebook/dp/B009VGYWEE
Why are TDF the right choice for most savers/investors?
Target Date Funds allow us to do the job of money management at the least cost. And cost is the BEST predictor of success in investing. Many TDF providers increased growth asset exposure to help address shortfall and longevity risk. This follows a similar trend displayed over the last 10 years, a time period that saw low expected returns from other asset classes such as fixed income. For example, the allocation to growth assets at age 25 increased from 89% in 2012 to 93% in 2021, and subsequently to 94% in 2022. Because of the low interest rates of years past, providers have increase credit risk within the fixed income allocation at these stages. Some providers have increased exposure to inflation-sensitive assets, most notably late in the glidepath years. TDF providers have responded to the changes in rates and growth factors to manage our money responsibly.
Cost is more important than market timing: https://www.amazon.com/Best-Predictor-Investment-Success-Cost/dp/1502524082
What can you control in retirement if you plan ahead?
Don’t switch to fixed income assets too quickly. You might live another 30 years and bonds or an annuity just won’t cut it. Fixed income assets lose income value over time. Your tax-deferred accounts (IRA and pension) require you to take a fixed amount out each year so you can’t stop that income tax. You can hold stocks and bonds longer since you control when asset gains get taxed. Social Security benefits can be delayed indefinitely if you are still working but your benefits stop growing by age 70. When you reach age 70, your monthly benefit stops increasing even if you continue to delay taking benefits. Securing enough health insurance is in your control since there are many plans that fill in the gaps in Medicare. Depending on where you live and get care, Medicare Advantage or Supplements can cover many needs. Finally, if you have saved enough for a long retirement, you can control your expenses so life is good. 4/5 of us have no written financial plan for retirement so when things go wrong, it’s a disaster.
Plan a great future: https://www.amazon.com/New-American-Retirement-System-ReserveTM/dp/1461030072
How to keep your nest egg producing income
There is one proven method of making sure you have enough income throughout your WHOLE retirement. Instead of spending down your $500,000 nest egg—creating an income of $16,666 a year for 30 years—spend only your earnings. $500,000 invested in a low-cost balanced portfolio can provide $30,000 plus COLA a year for as long as you live. As you get older you can spend more than $30,000 a year as you spend some of your principal. How can that work? https://investor.vanguard.com/tools-calculators/retirement-income-calculator This calculator can estimate your retirement income from a nest egg of $500,000 earning 6% and a SS benefit of $1,544 a month or $18,528 in your first year (at current SS levels). Annuity income is usually fixed for 30 years so your allotment will be more at the beginning $3,198 but falls in buying power over time. Since you give up the principal to the insurance company, you may lose money if you die early. Many folks like to have their money for final expenses, emergencies and a legacy.
https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957
Is direct indexing right for you?
The hot topic for fund managers is “direct indexing.” “Direct indexing, which allows investors to replicate an index by selecting and buying its components, is still a novel concept for many wealth managers.” Not really! This is a putting stock picking into an ‘indexing’ wrap account. More FEES should be the real name. Financial CEOs are averaging $23.2 million in 2021, a 29.4% increase from the previous year. Some money managers call this “Custom Separately Managed Accounts (SMAs), available now for select wealth management firms and institutions.” Firms will “build and manage equity portfolios customized to investors’ needs and preferences.” In other words, you tell them which stocks to pick for you for a FEE. You can have them “tailor” it or “overlay” it to incorporate personal values.” Sounds like trick name ‘indexing’ but stock picking at a higher cost. You pay for the $23.2 million, plus your advisor fees, charge, etc.
Try Warren Buffett as advisor: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963
Regrets from retirees
When you are finally retired, the major complaints come down to lack of planning with a professional planner. You may plan to invest aggressively. You may not realize the full cost of housing—rents or maintenance. Retirees overestimate their SS benefits. You don’t bother to nail down your income amounts. Ignoring health care costs not covered by Medicare. You plan to earn more on your investments than actually happens. Some folks are too conservative in the way they invest during retirement. You don’t realize how long you will need income. Inflation of just 3% will reduce your money buying power by HALF. You have to pay taxes on tax-deferred accounts (RMD), pensions, and even SS benefits.
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
The
Path to Dictatorship: 2010-2030
Parallels of this era in the past
may hint at our future: democracy breaks apart legally
Nov 2020 Wealthy
discredit election process
Jan
6 2021 Direct
assault failed: guns
& bombs ready
Trump
engaged in a "criminal
conspiracy" to stop Biden
“I
don’t f—ing care that they have weapons”
Trump was “detached
from reality”
Trump
used mafia-style intimidation on the defenseless
Parscale: “a
sitting president asking for civil war.”
Trump:
“Just
say the election was corrupt and leave the rest to me”
GOP fascism: “RINO
hunt armed; no bagging limit” J6
comm threat
Trump’s Supremes END
personal rights & state
laws except for weapons
WMDs
Fascism: GOP
to stop women leaving state for abortion
It’s
not a court. It’s a junta: Two Americas
Trump: President
Biden is 'enemy of the state'
Christian
Nationalist Party (CNP) replaces
GOP
Jan 2025 Dictator
pardons himself: his Supremes Agree
How Govt wastes our money:
Texas
Schools Sending Parents DNA Kits To ID Kids After assault-weapon murders
Another
underage teen shoots up his alma mater: kids’ emotions
and guns don’t mix
Recycling
plastic is impossible but gov insists we do it: we separate; they dump in
dump
Trump trial: $21
million tax break for not selling the forest outside his NYS house
MI
gov kidnappers get jail time: failure of terrorist plot to take/kill Dem to
start civil war
We are spending
$millions to kill
people with faster rockets: US China Russia arms race
SCAMS/SPINS:
Trump
gets subpoena to give his side of the story: he lost but make coup if says
‘stolen’
Secrets
Trump stole were nuke intelligence regarding Iran and China: already sold
to Putin?
Clarence
protects Lindsey from subpoena re: Trump interference in GA election: Ginni
happy
AZ GOP
leader begs Supremes to stop investigation into role in Jan 6 coup as fake
electors
CNP Christian Nationalist Party grabbing
for power over non-‘believers’
Christian
Nationalist Party using traditional political rallies selling Holy War
propaganda
Voters worried:
threats of violence
or intimidation at polling stations: armed
watchers
Already
100 suits filed contesting Nov election: democracy being challenged at
heart
Meet the 50
people who are paying for the biased election propaganda: we have 1 vote
From our wallets
to their bonus: oil
profits soar 3 times amount the last 20 years. Exxon
Steve Bannon sentenced to only 4 months for contempt: leader
of US coup attempt walks
Judge reads Trump emails: they are part of "a conspiracy
to defraud the United States."
GOP
voters told to hold onto mail ballots until Election Day to gum up the
works
SCAMS: cell
phone specific scam tactics
Zelle scam ignored by banks: almost
like banks benefit from fraud
Steven Xigoros MA caught
stole client money, ID, tax fraud, a runner
Cetera caught
conflicts of interest: overcharged fees and mark-ups: bribes.
Adam Belardino,
JAIME MICHAEL WESTENBARGER caught
stole $260,000
Misleading
audio falsely shows NFL crowd booing Jill Biden: Photoshop audio too
Impostor
headline cites false advice for COVID-19 vaccinations, Halloween
RECALL: Kia recalling 71,000 older Sportage vehicles: fires parked or moving
Tesla under criminal investigation
over claims electric
vehicles can drive themselves
Microsoft
leaked 2.4TB of sensitive customer data: MS mistake; no fine; no jail
Judge
OKs firearms in NY churches or other places of worship: guns OK everywhere
Lonely
child kills with AR-15 war weapon and 600 rounds: “I never had friends”
Jobs
Unwelcomed immigrants are rebuilding FL hit by IAN despite gov
Ye trying to gain creds with Nazis: gives up $millions from Adidas
8,100 employees producing up to 300,000 electric vehicles Savannah GA 2025
Fixing electric car chargers: 3 in every supermarket need fixing: outdoors, crazy drivers
New semiconductor
plants: Biden’s seed money
Who owns your account now?
Get it now: Pfizer gouging COVID-19 vaccine: $130 per shot
Home buyers: A record 22% of home sellers had to drop their listing prices in September
Millionaire Sunak first non-white to run Britain: financial specialist but will King allow?
Visit Medicare.gov to Dec 7 compare plans: new coverage will start January 1.
Some memberships offer cheaper insurance but some cost more than “shopping.”
Cam Diaz wants you to drink her better wine: but what is better wine? More expensive?
Miracles:
Draught:
you
can walk across the Mississippi in places: water in Philippians
Diabetes,
arthritis, and multiple sclerosis trace their roots back to the Black Death
2 drugs may help stop pancreatic
cancer before it starts
China
launched an inhalable COVID-19 vaccine: booster
First-ever female
NYC fire department commissioner
World’s
new largest wind farm could power 13 million homes
Our Universe is Mind-Blowing
Light is both
a particle and a wave depending on how we look at the light.
I
don’t think that there is any such thing as a position or a velocity of a
particle.
Everything (galaxies
to stones) in universe made of subatomic
energy ‘vibrations’
A subatomic ‘particle’
is the smallest possible vibration (quantum) of a quantum field.
Mass–energy
equivalence: E=mc^2. At the smallest
level; Everything is moving a little
Physics Nobel Prize:
“entanglement” 2
particles share info instantly at a distance
“It may be that gravity and quantum mechanics are
exactly the same thing,” Leonard Susskind
Gravity
might induce the collapse of quantum vibrations into 1 quantum state—our
world
There is no TIME at this
level because of force fields come and go in all directions.
Universe expanding: events
may not come together like they did before.
Inside protons,
neutrons, it
is the fields of the virtual particles that creates its mass.
“Empty space is a
boiling, bubbling brew of virtual
particles that pop in and out of existence in a time scale so short that you
can’t even measure them.” Space expanding.
The electricity we use comes
from the field around the wire not from election itself.
@
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/
