Where to invest when the election has no outcome?

 

Where to invest when the election has no outcome?

Some think we will be lucky to have an ‘elected’ president by January 20, the official start of the new regime. Some say both sides have already hired lawyers to have the new GOP 6-3 Supremes decide who won. Last time, GOP Bush had Supreme Scalia on his side. Scalia gave the election to Bush because he claimed, contrary to the Constitution, that FL couldn’t count the votes correctly. Scalia, claiming to know the Constitution, decided for us. But he never showed us voters where it says that the Supremes will choose presidents. He ignored the 12^th Amendment: if no winner “the House of Representatives shall choose immediately, by ballot, the President.” Since we don’t know what will happen, we have to go with our best information. The markets may be biased in favor of those who have faster computers, talented analysts, large leverage, more influence, or more insider information. We only have the unbiased advice of the greatest investing master, Warren Buffett, who bet $1 million the Vanguard 500 Index Fund would beat the 5 hedge fund picks of a Wall Street guru. We own 500 large growth firms at low cost with few taxes. They produce 11% total return over time. Buy on sale now.

Fact investing: https://www.amazon.com/Money-Ball-Investing-Winning-unfair/dp/1548831409

 

Is it right for your broker/advisor to be your legacy representative?
Some so called ‘professionals’ in financial services have been caught taking on the roles of executor, beneficiary, trustee and power of attorney for customers. This is so wrong that brokers/advisors are going to extraordinary lengths to get around this most obvious conflict of interest. Honestly, do we need a rule for these salespeople? They should be in jail.  “FINRA, the ‘self-regulator’ for the industry, observed situations where registered representatives tried to circumvent firm policies, such as resigning as a customer’s registered representative, transferring the customer to another registered representative, or having the customer name the registered representative’s spouse or child as the customer’s beneficiary.” "These conflicts of interest can take many forms and can include a registered person benefiting from the use of undue and inappropriate influence over important financial decisions to the detriment of a customer. The brokerage firms are just now making this rule due in February. Hire a fiduciary who is sworn to treat you right. https://www.amazon.com/Fiduciary-Rule-BEST-dont-anymore/dp/1530980275

 

Is a deductible IRA contribution right for you?

The rules changed for 2020: IRA contributions after age 70½ are now permissible.

The SECURE Act repealed the age restriction for Traditional IRA contribution eligibility. Effective for 2020 and later taxable years, individuals with earned income can make Traditional IRA contributions at any age, not just for years before reaching age 70½.

For 2020 and later, there is no age limit on making regular contributions to traditional or Roth IRAs if you have earned income. If you had self-employment income or W-2, that income qualifies. If your spouse had income and you did not, that qualifies too with some limits depending on participation in a retirement plan. Spousal IRAs: If you file a joint return, you may be able to contribute to an IRA even if you didn’t have taxable compensation as long as your spouse did. Each spouse can make a contribution up to the current limit; however, the total of your combined contributions can’t be more than the taxable compensation reported on your joint return. See the Kay Bailey Hutchison Spousal IRA Limit in Publication 590-A. If neither spouse participated in a retirement plan at work, all of your contributions will be deductible. The annual contribution limit for 2020 is $6,000 or $7,000 if you're age 50 or older. For many of my tax clients, this means they can reduce their income and thus their taxes for 2020 due April 15, 2021.

Alternative tax-FREE IRA: https://www.amazon.com/You-Can-Afford-Retirement-FEE-FREE/dp/1517738253

 

Which fund is best for your retirement nest egg?

We have learned that we can trim the risk of market upheavals by using a ‘balanced’ approach—stocks for growth and bonds for ballast. Since 1970 one fund has continuously provided retirees with total returns (income plus capital return) of over 9%. Since 9% is greater than inflation of 3% over time, our nest egg can maintain our purchasing power even though we may live long and prosper. Insurers sell their annuities to offer this same ‘longevity insurance’ but at a higher cost. If we don’t take the income each year, we can actually double our money in 10 years. So if we have other income (SS plus pensions plus RMD forced IRA distributions), we can provide a legacy and or have a large medical contingency fund at the end of life. To some of us, this beats every annuity plan that brokers offer.

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

 

Earn a guaranteed 12% to 24% return

“Guarantee” is the third rail to financial service advertising: it means fraud since there is no ‘guarantee’ in investing. However, consider paying down credit card debt of 12% to 24%. The average rate is 19%. If we pay 24% per year, charged every month, as most cards do, we would be wise to make card interest our ‘investment’ of choice. Most of us are unlikely to earn more than 11% on our investments over time so paying off high interest debt is our best ‘investment’ choice. When we are finished with the debt payment of $100 a month, for instance, we can use that $100 a month to accumulate over $20,000 for our home down payment or college or new car. Instead of making credit card bank investors rich we can help ourselves by investing that monthly payment.

https://www.amazon.com/Millennials-Investment-Strategy-BEST-journey/dp/1533079242

 

 

 

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

 

Like 1776, this period is a test of democracy—do we really want a Dictator?

 

Supremes decide election … again?

 

Dictator: “It’s going away.”

Dictator’s staff: “It’s out of control:” 236,000+ dead

Dictator’s ‘music’: Crowd chants Fire Fauci

 

Dictator: “I am the only one who can make America truly great again.”

Dictator: “Stand by” Domestic terrorists

Dictator build his Wall around our White House

 

Dictator has mail delayed and has Supremes void all votes received after Nov 3!

Dictator sends armed troops to intimidate vote counters

Dictator disrespecting American voter’s choice

 

 

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

Not enough to win the votes: someone has to pay off the 270 Electors, the real voters

IRS enforcement staff cuts lower US tax compliance over time: fewer pay; higher rates

EPA poison inspectors cut from 26 to 4 for 1,400 laboratories: even industry wants more

 

The Wall around White House: dictator spends our money stay in WH permanently.

Trump gives $65 million virus money to a donor who has no facility to make plasma

We pay for Nazi inspired police training programs: not surprising violent outcomes

 

Feds bought vaccine for the wealthy: if GOP cancels ObamaCare, we can’t afford it

Trump’s PO man ignored judge’s order to process 300,000 ballots:  man not arrested

National debt interest to climb: Senate to block all tax increases on wealthy/business

 

 

SCAMS/SPINS:

How Trump avoids taxes we have to pay: detailed analysis

Trump blames doctors who fight virus: “earn more money when their patients die”

Trump rallies kill 700 attendees: infect 30,000 w/ virus: pandemic 100,000 a day!

TX passes CA in virus cases even with smaller population: no masks; no tests?

GOP body-double conspiracy jumping on media: verify info with many sources

 

TX GOP told NO to voiding 117,000 legal votes cast by voters in cars

PA GOP counties delay vote count til Nov 4: Trump gets Supremes to void them

Trumpers ambush Biden bus in TX: police side with Trumpers: Biden cancels event

 

Kanye West concedes: try for presidency again in ’24 with Jr and Ivanka

It’s not over ‘til the fat man sings: AZ WI MI goes blue

Even McConnell agrees we have to count all the votes to have a legit democracy

Why GOP is in a panic: loss of power by 2022; fear clean air/water/etc regulation

 

Gov won’t stop robocalls; Supremes allow robocalls; https://www.nomorobo.com/

Jury Duty scam: fake email claims fine if don’t show up: real notices by mail.

Authentic-looking email pretending to be claim from Amazon: steal ID 

 

$800 advert on your car scam: check cashing scam: their check bounces

Market America caught deceiving its MLM distributors: big con takes our money

AVALINE, CAMERON DIAZ’S ‘CLEAN’ WINE: marketing con: clay + yeast

Hoover vacuums may NOT be made in America: “globally sourced” to trick us.

SMART Payment Plan caught loan payment program contained misleading statements

JPMorgan plans to capture Black and Latino investment dollars offering seminars

Tricks internet online scams use to catch us and never let go: “I wish I had never clicked”

 

IRS extends short-term payment plan option to 180 days instead of the usual 120 days.

Big banks caught misleading markets again: $4 billion fines before Biden takes more

Text scam asks for bank info under the guise of $1,200 Economic Impact Payment.

 

Terrence Chalk FL caught stealing $5 million “guaranteed return of 12%” con

Driver Loan FL caught misleading savings and loan products ride share firms fine no jail

Performance SLC CA caught charging illegal advance fees for student loan modifications

Viral 'ballot' burning video shared by Eric Trump is fake: son creates chaos for ‘fun’

 

 

Jared 1^st son evicting hundreds: MD slum lord: moratoriums over: “you’re fired/evicted”

 

Toyota Lexus recall 3.34 million: faulty fuel pump

Apple AirPods Pro not working: $249.00 or $41.50/mo. for 6 mo. Make appointment?

 

 

 

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

What the end of the middle class American Dream looks like: Remington screws workers

Walmart fires roving robots: humans can do inventory better and pick for online sales

 

Who owns your account now?

Car insurers don’t like to pay claims: JD Power rates customer satisfaction

Insurer denies fire damage claim even though premiums paid to agent: agent not agent

Information about your health care is yours: doctors can’t hide bad from us anymore

Student loan repayment options: pandemic deferral ends—make plan now.

 

Miracles:

Walmart puts guns and ammo back on display: cash in on fear? Hold T’s WH?

Reclaiming old beauty of Brooklyn breweries: conservation of what we have

Whale saves train riders

 

GOP 6-3 Supremes primed to reverse US back to 1950s: abortions illegal, dirty air, no wildlife reserves, no voting rights, 0 immigrants, no health care, red-lining housing, no interracial couples, Trump self-pardon, cancel IRS audit, no gays, discriminate by religion, decide our elections, dismiss suit Trump as rapist, etc

 

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 see/talk to folks around the world for free: using Zoom, video conferencing

 

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

 

 

Recession talk scare you?

Where to put your money if recession talk scares you?

There is talk of recession since people who claim they know economics get paid to scare us. Since no one knows for sure when and how this event will take place, we are on our own to decide what to do. Some are already running for their money market accounts even with low rates compared with inflation. Clearly stock and bond markets will be unsteady. Our choice, as always, will be decided based on our time horizon. Warren Buffett is looking for bargains at this point. He already had tons of cash. But he isn’t selling his portfolio as if the world will give up on capitalism. Long-term stocks will beat inflation. Our cash and bonds may help us avoid a big plunge in current account values. However, like Buffett, we should hold our long-term investments with a balanced approach. If we need cash in the next year we should have been accumulating it up to now. Many of our members have been buying the balanced fund Wellesley Income for years since it has maintained a return of over 9% since 1970 with low expenses.

No-worry money advisor: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

Elder bankruptcy up

Bankruptcy has increased to 12% from 2% in 1991 for retired persons. Weakened trade unions, stagnated wages and the disappearance of pensions are among the factors that contributed to rising elderly bankruptcy. Many retirees also face rising medical costs as they live longer than expected and Medicare covers a smaller share of their health care needs. What can pre-retirees do? Contrary to what many people think, saving for retirement can help employees boost their ability to pay their student loans, according to a CNBC article. That’s because pretax contributions to traditional retirement plans can help minimize their adjusted gross income. Since the monthly student loan payments are based on AGI, a lower AGI could result in lower payments. “Any time you can put money into your qualified retirement plan at work, it’s always a good thing,” according to an adviser. The most important factor in avoiding a lack of cash later is using the miracle of compounding as early as possible. Compounding can double your money in 7-10 years. Thus doubling your 401k contributions to low-cost stock funds even at age 50 can improve your nest egg three fold. Warren Buffett says compounding made him wealthy.

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

Is your advisor helping you this year?

If you are paying your advisor for money management—1-2% of your TOTAL nest egg—you have a right to ask this question. What is their track record? The market has provided 9% for the last 10 years including -37% in 2008 (2008-2018). So far in 2019, you should have earned over 17% with 11% long term returns. If that ‘professional’ advice you are overpaying for has not been useful, perhaps it is time to switch to Warren Buffett’s strategy. When you need special advice you could pay for it at the CFP’s hourly rate like a lawyer. $750 for 3 hour review of your plan vs $7,500 over 10 years of fees. Otherwise, Buffett recommends low-cost index funds. Morningstar has found that the most important determinant of investment success is the cost.

Try Warren’s Way: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

DIY Financial Independence: Freedom Workbook

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, some lucky genes, and

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 in places you shop. 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: capitalism.

Put money to work: https://www.amazon.com/DIY-Financial-Independence-Freedom-Workbook/dp/1088908500

Women: Median Retirement Income Is 42% Lower Than For Men

An average working woman earns 21% less than an average working man. While a portion of this earnings gap is caused by different career and lifestyle choices between men and women, gender discrimination still sandbags women’s ability to earn an income and thrive during their working years. The gender earnings gap has implications for women as they age. For example, the average woman qualifies for Social Security benefits 23% lower than the average man. On average, women have life expectancies five years longer than men, requiring higher levels of retirement saving. The report’s authors also found that women face higher retirement health-care costs, needing an average of $140,000 by age 65 to have a 90% chance of covering their health care costs, versus $124,000 for men. Women have less income to accomplish higher retirement income needs than men. So women have a greater need to make their investment dollars grow faster than men. Warren Buffett recommends that we are more successful investors by being patient. Women are more successful investors because they are less likely to engage in rapid asset transactions. Buy and hold is often the best strategy.

https://www.amazon.com/Ensure-Your-Financial-Health-Wealth/dp/1466388293

**********

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

Families torn apart by Trump’s actions sue $ billions from US not Trump. harmed or fondled!

Trump’s 2017 tax break for family recalled in Trump tariffs: we pay $1,000/year in tariff

Trump considers payroll tax cut to boost failing economy: He also claims not failing!

Trump plans capital gains tax cut: why even bother with Congress taxing authority?

Bank lobby killed rule that kept banks from making wagers with our deposits: Bailout II?

Pentagon cancels ‘missile killer’ project: saves US $1.2 Billion

SCAMS/SPINS:

Bundling your car and home insurance may not be as good for you as it is for insurer.

Trump calls El Paso mayor a RINO to his face: Weak dictators insult grieving to face.

NRA tells Trump to forget background checks: blame mental ill as diversion for votes.

Scam to steal your Medicare ID promise screening for cancer: suffer emotional abuse

Trump rallies are full: participants receive overtime pay from employers.

Now he is calling the Jews ‘disloyal’: his concentration camps are built and ready

Trump changes rules to hold immigrant families ‘indefinitely.’ Jail kids over 20 days.

Trump considers cuts to Medicare to trim deficit: Wealthy tax cuts created $1 Trillion

Trump to end your child’s birthright: we have to pay to buy our kid’s citizenship. Insane!

John Tillotson caught impersonating clients to transfer funds to his firm

Scott Strochak Castleberry caught fraud promised insured real estate returns

Sheraton caught letting legionnaires disease grow in water system: killed 1 guest

Insurance firms pay police/prosecutor to convict customers of faking theft/damage.

IRS does not send emails: do not open email from them

Jobs

The war for talent in the independent broker-dealer industry is real: Best get more fees.

CEO pay grown 940% since 1978, while workers’ pay only 12%. CEO’s power not skills

Execs get the raises this year: workers get discretionary bonus for top performers

Boeing hires to start delivery schedule of 737 Max

Goldman Sachs hiring coders to make trades: Program trading is dangerous like last time.

Who owns your account now?

Low cost places to live when you must start a new life on limited budget.

Vaping may cost you a lung: heavy breathing can give high too.

WV finds and returns $1.2 million in life insurance benefits people did not know about.

Why Robo callers can’t be stopped by government or tech or God: Window-dressing deal

Miracle:

Your lucky day: woman survives chute failure 5,000 foot fall—hit trees at 120 MPH

Miracle if Congress bans AR magazines: NOT for hunting; just killing: 41 in 32 seconds

Catholic teaching: the priest’s “racist” dog got black cleaning lady fired. He blames dog?

Trump retweet: Israelis “love him [Trump] like he is the second coming of God.”

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Best way to start investing

What is the best way to start investing for the future?

The best way to start and continue to invest for a lifetime is a Target-Date or ‘balanced’ fund. Because we don’t know when the market will fall, we can’t time the market to get out at the right time. People who try this strategy usually lose. In fact, over time, they usually earn just 3.79% versus 11% for the ‘keep-investing’ folks. Inflation of nearly 3% reduces their buying power even further. Why does this happen? Most of us take the short view; not the long view with our savings/investing dollar. If our quarterly statement account shows a loss, we opt out of the long-term 11% return. We can ride out a market fall by using a balanced fund like the low-cost Wellesley Income Fund. Its allocation of 60% bonds/40% stocks has provided nearly 10% a year since 1970. So even when stocks fell 37% in 2008, this fund had less of a ‘statement’ loss to overcome. Also, some folks seem to think that when the market falls 37% they actually lose 37% of their money. If you don’t sell, your fund holds the same number of shares so when the shares rose 27% and 32% as in 2009 and 2013, your account value still maintain the 10% a year over time. Stay invested for more: https://www.amazon.com/Millionaire-Mutual-Funds-Save-taxes/dp/1534939490

 

Are women better investors than men?

Studies show that women are willing to wait for their accumulations to grow. Patience pays, according to Warren Buffett. When women in one study worked with woman advisors, they held less cash and considered themselves to be more risk tolerant than men. Consequently, their returns were higher. Among the participants, those working with an advisor had a cash allocation almost 15% lower than those with no professional financial advice. However, when female investors worked with male advisors, two-thirds of this affect was offset. The data parallels the experience of master investor, Warren Buffett. Recently, he won his bet with a hedge fund manager using 5 different strategies. Buffett bet $1 million that a simple low-cost index fund (Vanguard 500 Index fund) would outperform stock-picking investing. DALBAR keeps track of investor returns and has shown that over time, a low-cost index wins: No trading, no market timing, and no chasing earnings. In each period, advisor-managed accounts earned less than ‘buy and hold’ investors: 3.79% versus 11%. Wall Street is wrong.

Learn patience: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

How much can your money earn without you?

Do you expect your money to work for a living? If not, you are losing the largest potential earnings available. Fidelity looked at its most successful investment accounts. Guess what? The most successful accounts were owned by people who died or who forgot they had them. Lesson: don’t pay anyone to ‘manage’ your accounts. How can this be true? Warren Buffett the greatest investor of our time says his success is from ‘compounding.’ If we leave our stock/bond account alone, it will earn money by itself. We do nothing! For example: Invest $250 a month in Buffett’s recommended account and 33 years later you have about $993,000. You invested $99,000 (3,000 x 33 years). Your money earned $894,400. You did NOTHING but allow $250/month to work!

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

When Fed rates fall, retirees need inflation-buster

If you rely on ‘high’ savings rates to float your retirement income then you better plunge into 2.5% paper now. However, with inflation running at over 2%, you are losing your purchasing power. All your costs are going up and your earnings down. What to do? The answer is having enough for expenses now and growing your assets for the future. You must bust inflation wide open or your future income is in jeopardy. How can you do that safely? A little risk goes a long way. Think of it this way: part of your assets are for 2 years out and part for 10 years out and part for 15+ years out. Don’t think that all your assets will be needed at the same time. You can afford a little risk with those 15 year assets. Your 2.5% works for now but won’t cut it for later. For later, a balanced fund is best. A long-term winner is the 40% bond/60% stock fund from Vanguard. Balanced Index shows solid a 6% return since 2000 with only 0.07% cost. Or the low-cost Wellesley Income Fund. Its allocation of 60% bonds/40% stocks has provided nearly 10% a year since 1970. Plan 2 year, 10 year and 15+ buckets.

Best Deal: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

**********

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

Planned Parenthood barred from doing family planning. GOP needs more SSI kids.

Personal Financial education wasted: need info at time of use not ahead of time.

Trumper defies Congress subpoena: respect for law ended by GOP? No jail time!

More troops to Saudi and Mexico as US ready for wars again.

EPA cancels inspections that catch polluters in the act: Koch etc donations ‘speak’

Labor secretary worked against labor for Ford, Boeing, etc to kill protections.

SCAMS/SPINS:

Government can’t stop Robo calls; can phone companies? For a price?

How many times can you cry wolf?  Any credibility left?

What happens if ObamaCare ends? Freedom to go bankrupt: unpaid costs take savings.

NJ, NY, CT sue IRS: SALT tax cap $10K discriminates against one group of people

Todd Ficeto, CA caught ‘pump and dump’ penny stock scheme: $200 M fraud—jail?

Henry Wieniewitz caught selling securities w/o license 630 customers $3 M commission 

People’s pain concentrated in certain markets: solution creates the problem

Beware: ‘Extensions’ you download may sell the info you don’t want people to have.

Beware: Financial ‘research’ is commodity like discount airline seat: cheap buys cheap?

Jobs:

Criminal contempt of Congress?: Barr and Ross are NOT arrested; business as usual.

Who owns your account now?

Summit Brokerage to Cetera Financial Group’s previous parent company, RCS Capital

USAA brokerage to Schwab

Miracle:

Racist not impeached from US presidency: Politicians fear! Few stand for America

Barefoot woman climbs Mt Rushmore: No gear/shoes--$1000 fine but not to top

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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