Why we don’t lose money when the market crashes
We bought our stock or mutual fund shares at a certain
price. When prices go down, the market is said to have fallen. BUT, and this is
the point, we did not lose any of the shares we purchased (unless
we sold in a panic). In most cases for our broad-market fund shares, the value
of our account will go up when prices go up again. If we didn’t sell in 2007-8
when the market
index fell from $150 to $69, our same shares are now worth $330. Our fund
shares represent our part ownership in real producing companies. IT IS THE
SHARES that have value and if we buy and hold as Buffett recommends, we won’t lose
money when the market
crashes. Unless we have insider information, we don’t know when an
individual stock we bought for $20 will go to $1 or to $200. Speculating on a
certain stock price has been shown to be a Loser’s
Game. Remember when sellers give us an ‘inside tip’ they only make money
when we trade: buying and selling. Even if your broker gives you bad advice, it
takes years to recoup your loses (IF you can prove it). Make a
killing when markets collapse: buy when share prices, NOT shares, fall—when
they are ‘on sale’ as Buffett advises. Just keep buying shares in proven
winners.
Vanguard’s proven Top Ten: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X
What can we do now that Trump says he will cut Medicare and
Social Security?
Recently, Trump
told the world he will cut Medicare & Social Security by “end of the
year.” The GOP may actually do it since they
passed his big 2017 tax cut for the rich. His tax cut for his tax-credit
class only increased
the deficit to $1Trillion. Now he needs to cut our benefits to pay for
making the rich richer. What can we do now to supplement the cuts in our benefits
in the future? Some have already started a tax-FREE account that they can use
in retirement. Others have been converting some of their IRA money to this
tax-FREE account. Future accumulations will not be taxed so these folks can
make up for the cuts in benefits using the growth with no taxes due. They
recognized early that the GOP
would take our earned Social Security and Medicare benefits to pay off the
deficit. The GOP is certainly NOT going to raise taxes on those who pay for
their elections.
Build your own
benefits fund: https://www.amazon.com/Forget-Social-Security-Medicare-Lifestyle/dp/1466394285
Lower your tax: We can continue to contribute to deductible
IRAs
Previously, we were not allowed to continue making
contributions to Traditional IRAs once we reached age 70½. But the SECURE Act
removes this age limit, effective this year. This could be beneficial for the
growing number of people who are working past age 70 since they can now
continue making IRA contributions indefinitely, thus enhancing their long-term
retirement financial security. They can also make non-deductible contributions
to their Roth IRA which is never taxes later. On the other hand, distributions
from traditional IRAs must begin when we reach 72 up from age 70 1/2. However,
the new rule does not apply to those already older than 70 ½ or turned 70 ½ in
2019 (born on or before June 30, 1949 ).
Those individuals must continue or begin taking RMDs under the old rule. The
SECURE Act effectively eliminated stretch IRAs as an estate planning tool.
Effective for deaths occurring after December
31, 2019 , funds from inherited IRAs must now be fully withdrawn by
beneficiaries within 10 years of the account owner’s death. Exceptions for
spouse and disabled. See a professional.
Why are annuities popular despite falling interest rates?
Sales of all types of annuities rose nearly 15% in 2018 over
2017, according to the Insurance Information Institute, with fixed-annuity
sales far surpassing variable annuities. It is claimed that annuities
protect us against longevity risk by promising a stream of income we can’t
outlive. Now more retirees will be enticed by the annuity offer because the new
SECURE Act frees employers from the liability of annuity failure.
Unfortunately, many retirees will be convinced that their employer’s annuity
choice for their pension income is the best way to provide it. The employer is
protected from liability when the annuity-income buying-power is cut in half
later in life: $500 a month now will be worth $250 in 20 years. The employer
will not have to worry about the possible failure of its insurance company. The
employer will not be concerned about an escalating inflation rate and rising
living costs. Yes, retirees will have a guaranteed income but as it’s value
decreases, retirees will have no alternatives to maintain their buying power. Retirees
will be stuck with today’s low interest-rate income payouts.
Consider options: https://www.amazon.com/Not-Buy-That-Annuity-Guaranteed-Low/dp/1466494573
How to negotiate when you have a dispute
Famous FBI hostage negotiator Chris
Voss says don’t compromise: there isn’t a real big difference between
compromising and caving. Let opponent think your solution is their own so they
own it. Accommodator’s demeanor is your competitive edge. You are
listening to and getting along with everyone. Listen first: opponent will share
things you would never know. Commiserate with their real fears: “sounds like
you have been burned in the past.” Instead of getting to ‘yes’ getting to
‘that’s right’ creates agreement. Rapport allows opponent to feel comfortable
sharing. Sharing frees them from feeling judged and attacked. Say: “It seems
like I haven’t earned your trust yet.” Speak quietly. Empathize. Paraphrase
what they just blamed you for. Instead of ‘no’, “How can I do that.”
Negotiate with liars: https://www.amazon.com/Confess-Things-Your-Advisors-Will/dp/1463712154
Complete your tax filing for FREE
If you meet certain criteria and have your documents
already, federal and state can cost you nothing at https://apps.irs.gov/app/freeFile/.
Another site has no income/forms restrictions: https://www.creditkarma.com/tax. The
software helps you avoid common mistakes before you file. Even if you make a
tiny mistake, the IRS usually catches it without penalty. I have used most of these
programs for years even though my income is above the limits. Most charge
nothing for the federal and state. Some charge only $12.95 for the state. In
2019, NJ has kept the ObamaCare mandate tax if you don’t have health care cover
so that state return may get complicated. Once you file your first year, your
previous years’ data is there and pre-fills your forms: Saves a lot of time and
money. Try it before you spend $200-300 at a for-profit preparer. No refund due?
File to keep your ID from scammers. Your W-2
should be sent to you by Jan 31 according to IRS.
Plan now for a Tax FREE retirement: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300
**********ACCOUNTABILITY**************
Like 1776, this period
is a test
of democracy—do we really want ‘low-IQ’
Mobster?
Claim: Impeachment not
possible because anything
Trump does is in the national interest
Trump
tells the world he will cut Medicare & Social Security by “end of the
year.”
Trump promises another
tax cut before the election despite rising deficits.
How Govt wastes our money: Congress spends another 1.7 Trillion we don’t have!
Trump wants to have us taxpayers
pay for religious education of some kids: Constitution?
Trump allows states to undermine
health coverage for poor with caps/block grants.
On
this 75th anniversary, would our soldiers defy the commander in
chief if he gave an order to arrest without warrants all the people from ‘shithole’
countries?
Former Treasury Sec Summers plans
to close rich loopholes/bump IRS not ‘wealth tax’.
SCAMS/SPINS:
Treasury admits reasons
for tariffs were ‘trumped’ up for propaganda purposes
Jeff Carpoff CA caught
wire fraud, money laundering $1 billion mobile solar generator
Alex Gierbolini caught
making $2 million unsuitable sales over time to a wealthy client
Brian Simms IN caught
making $1 million unsuitable sales
Edward Matthes WI caught
stealing $2.4 million promised guaranteed 4% return
Jerry Szilagyi
Catalyst Capital mislead
investors lost $ 100 million risky deals
Kerry Wills caught
‘borrowing’ from client and taking $19,500 gift.
Citizens Bank RI caught
failing to properly manage\respond to credit card disputes.
Some Americans have
already voted for prez: our long process from 1800s out of date?
IPhone
of Amazon CEO hacked by Saudis: Nothing safe from hackers: DO NOT OPEN
Ring
and other apps sell your info to others: you gave app OK to collect info.
Not sell it.
TrumpCare puts onus
on you if
your employer uses ICHRAs: you alone pick/pay for plan
Practice
Fusion caught
taking drug maker kickbacks to push opioids to docs
Jobs
Nurses,
electricians, artists, mechanics, researchers for CA labor unions hiring
Who owns your account now?
Lockheed
Martin secures $1.9 billion pension plan buyout: pension now at insurance
co.
IRS claims you have
rights when you have to deal with them: no calls just letters
Miracle:
People die here: America’s
concentration camps
NFL owner Benson
pays lawyers to help hide child abuse by priests/bishop LIST
How did Billie Eilish win
4 Grammys: ‘song and record of the year’?
IAN
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