Let compounding build your child’s future

 

Where to invest for the coming Year of the Vaccines?

No one knows what will happen in 2021. Every advisor in town has an opinion—either from their firm’s analysts or their favorite wholesaler—but they don’t know. So should you keep paying them a quarterly fee of 1-2%? You could lose up to 62% of your total possible nest egg that way. Or you could go with the best advice master-investor Warren Buffett offers. You could double your money in 10-12 years. Buffett’s advice is different because he doesn’t take your money. He’s different because he knows he doesn’t know. His strategy is pretty simple. First, invest in a broad market index fund like the Vanguard 500 Index. He even recommends it for retirement investing. Second, use a low-cost fund like those run by Vanguard which has no outside owner. Third, don’t try to out guess the market by trading ETFs or individual stocks or sectors. They are easy to trade but that assumes you know what will happen. You and millions of ‘professional’ traders don’t know. Get used to the uncertainty. All we really know is that the 500 stock index has outperformed other assets over time: 11% a year on average. It does better leaving your money alone. Fourth, Buffett credits compounding for his success: buy and hold. If you are new to index investing, give it a chance with only 10% of your retirement money.

Earn more by paying less. https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

 

Will you have enough retirement income?

You can afford retirement starting now. There are a few rules to follow but in time you will have enough. If you start now, using low-cost stock index funds inside a tax-FREE account, you can make it. There are easy ways to track your progress that paid advisors use that you have access to also. Over time, you can have enough saved to live well. How much can you accumulate in your investment account? Answer: $1 million at $250/mo; $3,000/yr; 35 years. Track progress here: https://investor.vanguard.com/calculator-tools/retirement-income-calculator. Don’t panic: expect your low-cost stock index fund like the Vanguard 500 Index to go up and down: a +31% and a -37%: average +11%.

Start now: https://www.amazon.com/You-Can-Afford-Retirement-FEE-FREE/dp/1517738253

 

Let compounding build your child’s future

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. We have used this 'Wealth Reserve' as I call it to have funds to use low-cost high-deductible insurance, to buy two homes and 5 cars with higher down payments or cash, and now to receive $2,500 a monthly in a retirement supplement.

https://www.amazon.com/Give-your-child-leg-up-manage/dp/1096505355

 

Why is it wise to diversify?

Readers have asked about holding the stock of their company in their retirement plan. Take a moment to compare the percentage of that stock to the total of all investments. Most often anything over 10% in the stock of one company is considered risky. Unless you are a company executive you are unlikely to know when to sell to avoid a loss. Some stocks do better than others but you and your advisor just don’t know which. Buy all.  Consider that if your employer should change stock value and your account drops by 50%, would you feel like holding on thru the next 10-20 years with all that stock. If you work for a company in the S&P 500 you may feel safe but don’t assume growth will last forever. Plan ahead for a time when the value of your holdings falls—will you panic and sell then? Keep an eye on a market index fund: 2020 up 16% and over 11% long-term.

Stay diversified: https://www.amazon.com/Buffett-Bogle-Holy-Bible-Investment/dp/1523693045

 

Is an “advisor matching tool” right for you?

“SmartAsset's matching tool lets you compare and interview up to 3 financial advisors,” for free. See your 3 financial advisor matches. You will need to complete a 12 question on screen survey and then give your contact information in order to obtain “3 financial advisor matches.” You don’t actually get to “see your matches.” Now advisors have your email and you have given an info-laden lead to a broker/advisor. I happened to know the availability of local advisors and none of them offer financial planning for a set fee. This ad promises “objective advice from a local fiduciary on your budget” but there are none. Most local advisors are not fiduciaries. I researched. All but one provides ‘planning’ but it costs you an annual fee and commissions. All but one needed over $1 million in “investable assets” to start. Usually this means your account money must be moved to their firm so they can take their quarterly fees whether they make you money or not. Better to use a salaried fiduciary from one of the large online fund firms.

https://www.amazon.com/Fiduciary-Rule-BEST-dont-pay-fees-anymore/dp/1530980275

 

Save $3,000 a year for a $1 million retirement fund

We are living longer. We will need more savings for up to 30 years in retirement. Even if we work after age 67, we will eventually not be able to work. Planning for more income later requires we save more now, while we can. Compare what you spend to the US average household spending standard to see where you might save $3,000 a year. Biggest savings: $3,000 a year in money management fees/commissions. Example: $200,000 nest egg advisor fees 1.5% per year: Save $3,000 by moving to low-fee index account. $3,000 per year savings can add $350,000 to your funds in just 25 years.

Avoid nursing home later: https://www.amazon.com/Stop-wasting-000-every-year/dp/146108394X

 

Robo advisor rates high in customer satisfaction

Covid pandemic has helped reshape the retail financial services model. Robos have become popular as most services must be delivered virtually now. JD Power survey data shows young investors are satisfied with the robo advisor services model. Investors between the ages of 31 to 45 had the greatest satisfaction with their advisor. That represented 46% of traditional investors and 69% robo-investors. Traditional investors ages 46 to 75 had relatively low satisfaction ratings with their advisor, according to the Investor Insights: COVID-19 and Robo-Advice study. Even Warren Buffett, leading hands-on advisor, believes in allowing your money to grow without human interference.

Best Robo: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

 

 

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

 

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

 

17 states want to end our democracy: TrumpWorld

 

PA Court: “Voters, not lawyers, choose the President”

 

Supremes crowned Bush II: Scalia stopped vote counts

 

Trump’s war on virus: 300,000+ KIA

 

Celebrities get cures

 

Our ‘Truth and Reconciliation Commission’ 

 

Dictator wants to pardon his own criminal activities

 

Dictators move residence to avoid prosecutions

 

Dictator’s Last Words

 

Insanity: “doing the same thing over and over again, but expecting different results.”

 

 

How Govt wastes our money: Our Representatives gave 3.7 Trillion to the wealthy! 

$1 million in PPP loans for small businesses to survive went to Tom Brady multi-millionaire

Melania proud of her new tennis courts: Trumps play? “private space” for Mel & friends

Census: 42 million Americans live below the federal poverty line: $7.25/hr same 10 years

Most NYC firefighters won’t take vaccine we paid $ millions for. Choice or misled?

 

Trump turned down additional vaccine from Pfizer: July shipment will cost us more lives

GOP never feared spending over $1 Trillion for their tax cut: now punishing Blue states

Coup: 100 lawmakers sign Trump’s plan to illegally oust Biden as president. ’24 job set?

 

SCAMS/SPINS:

Last pandemic killed 675,000: masks guarantee fewer deaths: 2020 saw 300,000 and counting

Can domestic terrorists become force for good after their Leader moves to TV show?

Trump ends cultural exchange programs with China to isolate us; grow animosity

Jared selling F-35 fighters to Arabs (transferred to Yemen fighters) buy Ivanka new island home

 

Trump creates GOP ‘enemies list’ for revenge: political loyalty for future GOP members

Trump has his FBI and IRS go after Biden through son: old mafia strategy to force deal

Refusing to go along with Trump's lies: "get my house bombed": GOP can’t stand up

Trump: vote in GA election despite warning election is rigged: 2 recounts say NO rigging

 

Texas asks GOP Supremes to help Trump win like Bush: democracy in 6 hands Coup?

 

GOP reduces voting places so GA Dems must stand in line for runoff vote

Judge: Tromper General Flynn does not have to go to jail but still confessed criminal

Ivanka takes credit for access to food after Daddy tried to cut food vouchers to poor

Millions Americans hungry: wait in lines for hours for bag/box of basics donated by us.

 

FL uses guns drawn police to attack virus tracker in home: stole her proof of FL deniers. 

 

FBI lets its sex abuse candidates go free: you just have to be senior enough to get away

Post Office head who tried to subvert our election still not arrested: violated court order

Trump makes his Christmas ‘pardon list’: pardon "every person who ever talked to me."

 

GA GOP attacking socialist subsidies to farmers, oil/ gas, mining, Boeing, aerospace, etc

 

LendUp Loans caught loan rate over 36%; no disclosures per Military Lending Act

Scam call to verify online purchases: Don’t push 1 to be connected. Call seller directly.

NatureWise fake reviews on supplements, vitamins: free product for review illegal

 

RAB Performance Recoveries caught suing folks for debts without license: fine no jail

BounceBack caught in deceptive unlawful debt collection acts or practices fine no jail  

BancWest Investment Services caught selling higher-cost fund shares fine no jail

 

One-ring scam: scammer disconnects after one ring in order to get us to call back.

Pet scam: buy a pet online but never receive it: spike due to stay at home trend

Buy online with credit card to avoid scam of fake ads: Facebook does not verify offers

Hackers hacked the anti-hacking tools used to test client anti-hacking protections: Sue!

 

LG Chem Recalls Home Battery Systems After Reports of Fires

Nationstar Mortgage violated consumer financial laws: $73 million damages

Video messages faked to gain viewing: fake virus, fake voter fraud: check other sources

 

Scam: $1,200 from COVID-19 TREAS FUND text tricks us bank info. Real IRS info

Senior scams: popular scams and how they work so you can avoid them

Borrowing for divorce: demand in southern states at all time high: no jobs; homebound?

 

Merrill Lynch Charles Kenahan caught excessive unauthorized trading, commissions

Blue Flame charged blue state $41,000 for $5,000 ventilators: Trump gives some away

 

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

 

 

Is it a scam?  Check AARP scamline 877.908.3360.

 

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

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

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

 

Jobs

Winning your business-interruption claims: present danger is key to convince judge

Plastic surgeons demanded to fix faces on Zoom: now we see what everyone sees: Ouch

26 million need work: fixing infrastructure for pay would help more than $600 check

 

Colleges with highest paid grads: BA gets you $70K early; $140K later

Starbucks: we don’t have enough stores so 22,000 new ones need help

 

Who owns your account now?

Folio Investing is getting out of the retail brokerage business: to Interactive Brokers.

Waddell & Reed brokerage business to LPL and its asset management unit to Macquarie

MetLife’s U.S. property/casualty business to Zurich Insurance and Farmers Exchanges

 

Senior Living Providers Focus on Resident Experience: Ratings by J.D. Power

Dental Plan Satisfaction Slightly Decreases, J.D. Power Finds

 

Partnerships and S corps owners can now avoid the SALT $10K cap if biz itemizes

Vanguard investors pay low fees and so earn more for their investments

 

So Sad: Mitchell SD ignored virus for months: now daily helicopter comes for victims

Giuliani acknowledged he got “celebrity” treatment: most expensive drugs we can’t get

 

Miracles:

While OK Gov prays for virus victims, Christian leaders insist on mask mandate now

Her dog Abby missing 3 weeks, finds her owner at Walmart job on her own miles away

"Bethany's Happy Bags for the Homeless"  6 yr old wants to help too

 

Let them eat cookies: we eat more than three cookies per day: Running out of dough

We are ‘re-born’ every 7-10 years: sort of; it’s an average of all cells but still a miracle.

Compound interest: invest $250/mo; $99K over time for $1 million later

 

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/

 

Is $1,000 advisor fee too much?

Is $1,000 advisor fee too much?

Many investors are happy to pay their advisors $1,000 a year in fees for the satisfaction of having a human to call when they panic. But everything is relative as they say. The average investor balance is about $96,000 but the median is only 27,000. Some wealthy people have $ millions in their 401k. An expense of 3.8% is just over the inflation rate so most of us are not making money. Our advisor is eating our lunch AND dinner. On the other hand, if you have $600,000 in your retirement accounts, $1000 sounds about right. That is 0.16% and assures you of a growing nest egg for almost any asset mix. Some Robos charge 0.25 and Vanguard’s human charges 0.30%. The larger your account, the smaller percentage you need. Since we are worried about OUR future not our advisor, total fees during our lifetimes should be less than 0.5%. If we pay 2% or more, we give up 63% of our total potential nest egg. It is our money. We take all the risk and we need every cent for the future escalating costs.

Avoid the high fees: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793

Is Fidelity’s ZERO fee mutual fund right for you?

Your advisor is probably squirming in their chair today. No fee is the final stage of the price war Vanguard set in motion years ago. Fidelity’s two new funds will have an expense ratio of zero and require no minimum investment. Compared to 0.14% and 0.09% (9 basis point) costs of the equivalent “Total Stock Market” index funds of Vanguard and Charles Schwab, that gets attention. The average cost of US bond and equity funds has slipped from 0.76 per cent and 0.99 per cent respectively in 2000 to 0.48 per cent and 0.59 per cent last year, according to the Investment Company Institute. Investment groups can still make some money from zero-cost funds thanks to the revenue they get from lending out the shares they own to short-sellers, a practice known as securities lending. However, they need huge deposits to make up for the lost fees. Since Fido is owned by the Johnson family they can probably use the loss leaders for a while. However, legal disclaimers say they could up the fees or other charges at any time. Your money is still being handled by a profit-seeking manager. Vanguard funds are owned by the investors themselves so investors lower costs by ending inefficiencies like small account paperwork. They pay only $200 a year on half a million dollars for support.

https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

How is your spending plan? Meeting goals?

I know there is no ‘average family’ when it comes to spending. We are all different so it is instructive to look at what others spend for the same things. Averages from Labor Bureau are 2.5 people family; 1.3 were wage-earners earning $74,664 with 1.9 vehicles. 62% owned homes, going down. They spent $57,311: Food 12.6% with HALF spent on meals at home, but going down. Home 33% going down. Transport: 15.8--$755 a month—new vehicles? Apparel and services: 3% going down. Healthcare 8% going up; Entertainment 5% going up; Contributions 3.6%; Pension & SS 11.9% going up. Misc 4%. Taxes were not in the survey but gross-net=$17,353 or 23%.

Make saving/investing low-cost: https://www.amazon.com/One-Decision-Investing-Buffetts-strategy-ebook/dp/B07FRMRC7F

Are the new short-term health plans right for you?

Trump promised to replace Obamacare with “something terrific.” Trump’s mob has just completed rules that let insurers offer a new kind of health insurance. So-called short-term plans will be offered for relatively longer periods — just under a year at a time, with renewals for up to 36 months. They are cheap. Cheaper than the Obamacare plans—for good reason: They tend to cover fewer medical services than comprehensive insurance, and they will charge higher prices to people with pre-existing health problems, if they’ll cover them at all. In three months, who will buy these plans? Young healthy folks who are short on cash or those in between jobs are the users and they have always been the target. However, an accident or illness can strike anytime. Trump has made the plans renewable so he can claim we have it cheaper, better “terrific”. Sickness not covered.

Buy carefully or face bankruptcy: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

New ways the wealthy avoid their fair share of taxes

Though President Trump’s tax law increases the amount that can be passed to heirs, these thresholds expire in 2025—if a new federal administration doesn’t change them first. Wealthy people might look to longer-lasting vehicle to pass on wealth: dynasty trusts. With a dynasty trust a taxpayer transfers assets to the trust. The trust assets move from generation to generation with no corresponding payment of taxes. America ends up with a class society even though the upper class hates to admit it. Since the trusts can foot the bills of the next generation without taxes, we have to make up the loss of govt revenue since the rich use the courts, police, military, roads, airports, etc. As long as the estate tax and generation-skipping transfer tax GST lifetime exemptions of $22.36 million per couple are applied to the assets placed in the trust, the assets and their growth are out of the estate of the grantor and they can pass to multiple generations free of taxes. 

Use your tax credits to avoid paying their tax: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

How is your Wall Street guru doing these days?

If you are looking for a STAR who will consistently beat the market—any market—you will need to keep looking. Popular myth says that consistent high performance over time indicates skilled active management. However, you probably are not with a fund that performed well across three- and five-year periods, according to “Does Past Performance Matter? The Persistence Scorecard,” a July 2018 report by S&P Dow Jones Indices. Famous investor Warren Buffett recently won a $1 million bet that proved it is almost impossible to find the 1 or 2 out of 557 funds that beats a low-cost index fund. Fixed income vehicles are little better. So is ‘skilled management’ just Wall Street hype to entice us to move our money around? More ordinary investors are coming to that conclusion. Many studies show that understanding all the variables of a company’s success is just not possible—even for expensive computer software. Plus, there is the unknown future. The one consistent factor: low-cost funds beat high cost funds.

Control costs first: https://www.amazon.com/Best-Predictor-Investment-Success-Cost/dp/1502524082

Do you take all the deductions for your small business?
Most small businesses are headquartered in the home. Yet fear of audit keeps many law-abiding taxpayers from taking home office deduction. Unless you measure every square inch of space used exclusively for it, your business is missing the $1,500 deduction. That is the recognized IRS amount for home businesses using the simplified method. Make sure you are taking your fair share of deductions. Don’t rely on your accountant to explain them all. There are just too many. Reading is fundamental.

https://www.amazon.com/J-K-Lassers-Small-Business-Taxes/dp/1119380413

New ways the wealthy avoid taxes that we have to pay for them

The Trump tax breaks did not reduce the amount the well off firms can deduct from their taxes. The rich get richer. We have to pay for the courts, police, military, roads, airports, etc. US firms use but don’t pay for. Trump sold the cuts as a way to dissuade companies from moving profits overseas. The cuts may make moving profits a lot more rewarding. For example, pharma firm AbbVie (Humira) told investors it expects its tax rate to fall to 9% from 22% because of the change. Many profitable firms have moved their patents and subsidiaries to low tax countries to accomplish similar tax avoidance schemes. Bermuda has a zero tax rate on corporate profits. Despite recording over half its $28.2 billion in 2017 sales in the US and basing most of its research facilities there, AbbVie has never ‘reported’ a profit in the US. They all do it: Pfizer Expedia Boston Scientific Microsoft.  

Stop paying AbbVie’s taxes: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

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

Make America, “The Don”, Great Again

Two Americas: A Banana Republic? Do we really want an infant king? Daddy Putin!

Conspiracy against the United States, conspiracy to launder money, conspiracy to receive Emoluments from foreign states, false statements, subverting constitutional tax power, obstructing justice, failure to secure voting systems from attacks, and Foundation self-dealing.

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

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

FEMA staff hires for personal benefits.

Trump scraps $3 billion planned FBI center.

Last GOP govt shutdown cost us $24 billions.

All the other industries hurt by tariffs want their bailouts too.

Trump’s cut in capital gains means $100 billion less: King not Congress decides taxes.

Trump establishes anti-Christ group to legalize discrimination by label ‘religion liberty’

Our tax dollars go from Defense Dept to pro-Trump election fund: Taxes for Trump!

SCAMS/SPINS:

Trump’s Ed Sec pushing Private Schools Home Schooling but not better than Public

Trump snows farmers with fake news on EU soy deal Farmers upset about loss of market

‘Collusion’ is what mobsters and price-fixing companies do: Conspiracy what jailed for.

Scammers may have slowed your computer: fix it

Trump’s people watching you if you use toilet, cell, computer, sweat, passport, on plane

Red light cameras don’t reduce traffic accidents: causes more rear-enders to avoid ticket.

21% taxpayers will owe more in taxes in 2019 due to change in deduction cuts. Deficit up

Trump’s wealthy friends got a tax shield from the federal estate tax; did you?

Trump goes around Congress cut gains taxes. Constitution says Congress lays taxes.

NKorea "no longer a Nuclear Threat" –  ‘Putin not hacking’ -- Trump’s real ‘fake news’

Trump national socialism beliefs & theory to keep base occupied while democracy dies

When we all have guns for ‘protection,’ who will police shoot first? Safe in your home?

               police shoot owner who already shot intruder. All kids have plastic killer guns?

Jobs:

Small business owners’ profits and savings up; wage earners take the hit from stagnation

Trump gives civil service jobs to his supporters/donors.

Your earnings and jobs affect your SS benefits later in life.

Jobs abound but where are the raises: time to find a better deal

Who owns your account now?

Travel sites are all owned by two firms: oligopoly; not competition

Last time GOP shut down govt; Social Security still paid on time.

Cure for SS benefit shortfall in 2034—More immigrants who work

RobustWealth to Principal Financial  

Best Brokerage Bonus for the Brokers/Advisors: Where are the clients’ yachts

Best Bonus Miles Card: Use anywhere but watch the fees

Best Bank Bonus: $300 for new checking but watch the fees

Buying a house tips: https://www.bankrate.com/mortgages/best-monthly-mortgage-tips

                                                  

Miracle:

What miracle can restore sanity, morality, humility in an insane world?

Pope says killing is wrong even by the state; priests kill innocent children’s virtue.

IAN

41 Watchung Plaza, B242

Montclair ,  NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alert