How to deal with inflation

 

Make the New Year better

 

Is owning a TIPS fund or ETF right for you?

A kind of bond issued by the US Treasury has complexities that baffle most investors who use them. They are not as simple as buying them to avoid losing purchase power to inflation. Many took the bait in 2020 with the promise of 5.5% vs -1.5% for the bond index. Semi-annual adjustments to the securities means TIPS are good at protection against unexpected inflation. So for most people, stocks will provide better long-term protection from inflation. For retirees, holding 10-20% of their bond allocation in TIPS may help settle out the stock market gyrations. Many retirees use high dividend payers to accomplish the same goal. The low-cost versions of all these options will do better than costly broker/advisor-managed ones simply because paying 2% to earn 5% provides you with only 3% net. The calculated yield is another big headache since not every fund is a pure TIPS play. Some add in derivatives to make their fund attractive. None of these offerings provides an inflation-busting guarantee. A better strategy is an over-weighted balanced fund plus diversified low-cost stock funds. Low-cost always beats high-cost.

https://www.amazon.com/Reset-Your-Retirement-Income-retirement/dp/1512304344

 

How can you deal with inflation?

Inflation of 7% is the running rate for the new year based on current price increases. Gas, food and rent-price jumps may have convinced you that something needs to be done. If you are an investor or retired person living on your investments, you may have heard the discussion of bond and stock prices changing drastically last month. Indeed, after the stock market index hit 28% last year, ’22 has taken some of your account balance away already. For those relying on their brokerage firm or advisor, the word from Goldman is: “Sticking with Stocks Is Best Bet to Beat Inflation.” Goldman favors equities in energy, financials, resources, real estate and infrastructure. Real estate has come off a year of over 40% but since the value of leases and contracts often rises when inflation increases, this will remain a good bet against inflation. Index funds usually cost much less than an advisor and so if most analysts think we will have single digit returns, Vanguard may be a better home to rest in 2022 than a full-service firm. Good health.

Use the low-cost leader: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

 

How to invest if you are NOT rich

There is a way to become rich even if you don’t have a lot of money and are not able to pick the next Amazon or Google stock. It requires you to wait for your money to grow by itself using the Miracle of Compounding. You know the principle of compound interest. If you lend a $1 to your bank, you will be paid interest each year. After 40 years, you will have $2.22 at 2%. Rates of interest are low right now, but in the 1980s, you could earn 8-12%. I saved for my first house down payment then. The stock market returns average over 11% over time, so you could have $80 from $1. If you could invest $100 per month in large company stocks, you could have $880,000 in 40 years. $100 a month is $3.34 a day. Almost everyone could do that if their mutual fund company could automatically deduct the $100 a month from their bank account. You would have to wait and never touch the money during those 40 years. Actually, fund firms have tested that plan: the highest accumulations were in accounts that the owner forgot they had. They left the account to compound by itself. Vanguard offers a low-cost large company stock fund that has returned 11.66% since 1976. Clients make money the ‘old-fashioned way;’ patience.

You should too: https://www.amazon.com/Just-Takes-Time-money-old-fashioned-ebook/dp/B07751F8N2

 

Can you trust online tax prep software?
If you use your prior year returns to guide you, you can easily navigate most online software tax services and save money. Most are free for Federal and some are free for some states. With direct deposit, you have the simplest and fastest way to do taxes. I have used a number of the services offered by the IRS-approved sites: https://www.irs.gov/ filing/free-file-do-your-federal-taxes-for-free. As an AARP tax preparer, I know some of these sites offer simple entry screens and good support. Even if you have a complicated return, these packages are manageable. As I tell AARP users, try to do your own taxes first then consider going to a costly preparer. The IRS has warned us that it is still doing last years returns so make sure you enter the correct amounts for the child tax credit and economic stimulus checks received last year. The IRS sent a letter to remind us. Beware of other tax preparers claiming FREE but add charges after you start. After 2-3 weeks, track your refund: https://www.irs.gov/refunds. If you need to know your previous year tax information, order a transcript from the IRS files: https://www.irs.gov/individuals/get-transcript. Your refund could pay for a secure retirement. $2,000 a year earns $500,000.

Let Uncle Sam help you: https://www.amazon.com/Tax-Refund-Millionaires-Let-Uncle-Help/dp/149595644X/

 

Is your advisor’s “model” ETF option right for you?

Model portfolio assets have more than doubled over the last five years. Many providers of models are asset managers, who stand to benefit from new cash flowing to their funds. Meanwhile, financial advisers have embraced them as a way to outsource allocation decisions so more time can be spent attracting and serving clients. “Investors who chase the recommendations also behave differently, as they pay less attention to both the price and the performance of the ETFs,” a new study found. Model providers recommend their affiliated ETFs more frequently, and these tend to have lower performance and higher fees than recommended unaffiliated ETFs. Over time, advisor and firm fees can take up to 63% of your potential earnings. Fees are guaranteed; earnings are never guaranteed.

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

 

Is using an advisor right for you?

Many financial outlets claim that you can increase your returns by using a paid advisor. Consider the source: financial media depends on paid advisors and their firms for income so it makes sense to claim a paid advisor can help you. However, we all know that you can save big money by shopping direct—eliminate the “middle man markup.” Also, few advisors can beat a low-cost stock index simply because of the costs. The unbiased financial scorekeeper, Dalbar, has found that the average advisor-managed returns were 3.79% compared with the S&P 500 index of 11.06%. Warren Buffett put his money on the Vanguard’s 500 Index fund in a bet with a stock picking guru and 5 hedge funds. Buffett won the bet. He also designated the Vanguard low-cost index fund in his will for his heirs. Stock funds underperformed indexes nearly 93% of the time. Over time, advisor fees, charges, trading and bad decisions will lower your total accumulations by 63% or more. In every time period, low-cost funds beat high-cost funds, Morningstar showed.

Go with Buffett: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

 

 

 

 

?**********ACCOUNTABILITY**************?

 

 

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

 

 

The Path to Dictatorship: 2010-2030

 

 

Terrorist attack fueled by propaganda

 

Congress fails to support democracy

 

Trump’s plan for coup

 

companies slam voter suppression laws, then donate to their sponsors

 

 

US civil war II

 

 

How Govt wastes our money:

TX already rejecting half of 700 mail-in applications for ballots: only GOP get ballot

Supremes decide Covid vaxx mandate cancelled: 865,000 dead: voted to continue deaths

Counties hide Covid death count: family/political reason fake causes: plague--1 million

 

SS benefit increase may raise tax bill: income threshold never adjusted: thanks Congress

10 wealthiest men doubled their fortunes: most pay lower tax rate than we do

Wealth group: “few if any of us can honestly say that we pay our fair share in taxes"

Wealthy tax-avoiders replacing residents of Puerto Rico: Beverly Hills in Caribbean

 

 

Manchin: parents waste monthly child tax payments on drugs instead of their children

Manchin coal company receives coal subsidies from our taxes: parties on houseboats

 

Biden spin to Putin: “any assembled units” NO; “Unassembled” guerillas across is OK?

Military bases near Ukraine: Black Sea region ground and air forces cost us $ millions.

 

 

SCAMS/SPINS:

OH Supremes cancel GOP election landslide gerrymandering: small step for OH humans

FL funds “brown shirt” type police use tips to arrest anyone allege violation of elections 

Don has to worry about kids spilling beans and FL mini-‘Reich’

Parallel: Al Capone, Don Trump: tax evasion case lies about assets and taxes

 

FedEx to use laser heat gun to deter should-fired missiles from packages

Tesla problems in heating/cooling of Model 3 and Model Y vehicles

Your 5G phone could crash airplanes: no one foresaw telecom conflict before today?

 

Martin Shkreli barred from industry fined $64.6 million Daraprim guage block generic

Metals.com, Chase Metals caught selling overpriced gold silver bullion $185 million

Scam: favorite digital and promissory notes easy to fake: large return for the risk.

 

Codie D. Malesker caught faking damage insurance reimbursement: jail 15 weekends

Perry Santillo caught stealing $100 million Ponzi scheme  prison17 years

Tesla on autopilot kills 2: driver not Elon indicted for manslaughter: No clapping in truck

 

Fake online offers: how to spot a fake website and goods

Fake QR codes to steal money: they direct people to malicious sites: just click delete

 

Millions of store & restaurant workers with Covid-19 are serving us: no sick days

 

Just dumb: GOP says life-saving Covid vaxx mandate is same as the Nazis killing Jews

TX GOP move to the right paid for by the wealthy: Porters, Wilks, Dunn

Mind control: powerful propaganda has convinced Trumpers that the dead don’t die

 

Jobs

Study shows college for some career degrees are not cost effective: nothing new

Hobbies That Help You Live Longer: Active outgoing social life

Home office deduction for your business: not for work from home

 

10 fastest growing 2022 jobs

Fastest job growth regions: hiring ID, WA, NC top list

 

Who owns your account now?

Even generic drugs have price increases as drug companies want higher profits

Auto insurance rates rise: time to shop for lower rates: bundling may not help

Avg monthly new car payment $636 a new high: same 70 month term

 

Activision Blizzard to Microsoft: Call to Duty for Mr Gates to play

Streaming costs more: look harder for free services

SEC makes it harder to find private co data: assures wealthy hide fortunes better

 

Miracles:

Cancer mortality rates continue to decline: lung cancer drop; no smokers

Free at-⁠home COVID-⁠19 tests: 4 while they last: check expiration date

Some states have lowered their taxes for 2022: Iowa phasing out inheritance tax

 

In our minds: Covid shot side effects (headache and fatigue) are from anxiety not vaxx.

Snow and hailstorms cover Saudi desert: Iceberg falls into ocean

IRS videos answer questions quicker than a phone call: IRS failed to answer 50%

 

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/

 

2021 better than 2020?

 

Hope your 2020 was as successful as some of our readers

Our readers use Vanguard mutual funds because they are low cost and well diversified. As you can see, even though oil ‘tanked’, growth around the world more than made up for the loss. Readers maintained their long-term average of over 11% for stocks and thus this year of pain didn’t hurt them financially. Most readers did not panic and sell in the March market collapse. International Growth benefited by its top 5 holdings: Tesla, ASML Holding, Tencent Holdings, Alibaba, and MercadoLibre. Some readers held only Target Retirement funds and still earned about 15%. This confirms this new investment strategy of holding just one low-cost diversified balanced fund during our working years. This is a simple but effective strategy. We avoid paying a broker and thus avoid giving up 63% of our potential long-term nest egg. We keep more by paying less.

 

2020 Total Return Fund                    Long-term Return      Longevity

18.4% 500 Index                                             11.3% since 1976

-30.8% Energy                                                   8.5% since 1984

32.2% Extended Market                                  10.7% since 1987

12.6% Health                                                   16.1% since 1984

59.6% International Growth                              11.6% since 1981

17.3% PRIMECAP                                         13.8% since 1984

19.1% Small Cap Index                                    10.6% since 1960

 8.5% Wellesley Income                                     9.7% since 1970

 7.4% Windsor                                                 11.2% since 1958

14.5% Windsor II                                            10.8% since 1985

15.9% Average                                                11.4% *

            *Average Annual Returns as of 12/31/20.

 

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

 

Two Americas: separate and unequal

Rich got richer in 2020; poor got poorer: Two Americas grew farther apart. Another 800,000 filed for unemployment last week. Some have stopped collecting but there are still 11-12 million collecting unemployment. The extra federal benefits will run out this week. The other America—the one that owns stocks or profitable companies got richer last year. The wealth of those with stocks went up by over 16%. Some of our readers met their goals for retirement income by NOT selling in March when the pandemic hit. Our government made sure by propping up big business with borrowed money the rest of us will have to pay for later in higher taxes. 60% of Trump tax cuts went to the top 20%; the corporate tax rate is slashed by 40%. There are TWO Americas and they are going in different directions. Wages for most workers have not kept pace with inflation. With more money in the election system, can there ever be ONE America again? We have a system that rewards the elites with subsidies and we have to pay for their wealth. Plus the health care system spares no expense to help the elites while the poor suffer longer.

Socialism in reverse: https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

 

You can continue to subsidize your child’s life

Several readers needed to know what the options are for making sure their kids will continue to have an income even after they, the parents pass. Today the standard option is to pay a lawyer to make a trust of some kind and pay to update it every year and pay federal taxes every year. Some of us are not willing to spend big bucks so we need to consider all the options. Most people have a will that leaves their property to heirs. Many readers used to plan to leave the money they don’t need from their IRAs to heirs outside their wills to beneficiaries. A primary would be a spouse and the secondary or contingent bene would be your offspring. This was our plan until Trump’s party changed the law in 2019 to eliminate the ‘stretch IRA’ as it was called. Some readers have chosen an annuity to keep paying their kids after they are gone. However, the annuitant, as the kids are called, can then cash it in—taking all the money out at once. This causes a big tax bill plus there will be no more monthly benefits to live on. Some of us in retirement are thus exploring a special low-cost immediate annuity that does not allow full ‘surrender’ as it is called. Some or all of the benefit each month will be taxable after you, the owner, dies but at least your heir cannot waste a lifetime income. You could convert the IRA to a Roth IRA, paying all the taxes up to that time and leave the future monthly income with smaller taxes. This may solve your problem of providing your heirs with a monthly income for life. Annuities are priced by current interest rates. Example: $500,000 from a Roth IRA invested in an immediate annuity will pay a 40 year old $1550 a month for life.

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

 

Social Security benefits are taxable: delay as long as you can

If you file an individual tax return and your total income is between $25,000 and $34,000, you may owe income taxes on up to 50% of your Social Security benefits. Earn more than that, and up to 85% of your benefits could be subject to taxes. If you file a joint return and your combined income is between $32,000 and $44,000, you may owe taxes on up to 50% of your benefits. Earn more than that, and up to 85% could be taxable. Even municipal bond tax-free interest is used in the calculation. The easiest way to avoid paying taxes on your SS benefits is to delay taking benefits while they grow at up to 8% a year. After age 70 they stop growing. You can also stop being employed. Others have found that they can self-employ and use their business expenses to offset their income. This is the method our president uses to take $ millions of income yet pay little or no taxes. His businesses show a loss that offsets his income of all types. For instance, he “gave” away the forest near his New York mansion and claims a deduction because he said the land could have been worth $ millions if it was developed. You may not have a forest to deduct but you can lower taxes in retirement using a legal tax shelter.  

Pay your fair share: https://www.amazon.com/Pay-No-Taxes-Retirement-legally/dp/1507527977

 

Is buying stock in the next Apple directly right for you?

Regulators have just announced that we can cut out Wall Street bankers and buy the next Apple directly. No more IPO stock being sold only to the elite by Wall Street bankers. Wall Street controls who is offered the next explosive stock. However, in 2018, music streaming business Spotify Technology SA was the first major company to go public via direct offering. Direct listings had also been limited to companies wanting to give early investors or management the opportunity to cash out by selling stock. Cutting out the middleman has been a strategy for many successful consumer products like Tesla cars. Is buying an untested company stock right for you? This is a read gamble since new issues often rise quickly and then crash after insiders/speculators take profits right away. This strategy also assumes that you can research the company fundamentals quickly. As we all have learned, gambling is fun IF you win.

Invest wisely: https://www.amazon.com/Buffett-Bogle-Holy-Bible-Investment/dp/1523693045

 

If you are over age 70.5 your RMD for 2020 was waived.

If you already took an RMD in 2020, can you reverse it? “Technically, the distribution can’t be reversed,” says Schwab expert Hayden Adams. “However, according to new guidance from the IRS in Notice 2020-51, you can re-contribute the amount back into your retirement account as long as you do it by August 31, 2020.” Unfortunately, you can’t reverse the tax withholding, but depending on other factors in your tax situation, the IRS could refund the withdrawal when your 2020 return is filed. Your tax preparer will need to follow new instructions to do this. It might be easier to pay the tax on the few months you took your required minimum distributions in early 2020 since you may have had taxes withheld anyway. We must resume automatic RMD in 2021. We may resume deducting IRA contributions from income if you have earned income. With the (SECURE) Act there is now NO age limit on contributions as long as we have earned income (even self-employment income). Instead you can create a tax-FREE fund for your future by using the special IRS account: a legal tax shelter.

https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

 

Tax prep for 2020 income is different

RMD retirement income waived. Higher standard deductions. Higher income tax brackets. Higher contribution limits for (some) retirement accounts. Unemployment compensation is taxable. Charity deduction without itemizing. Higher cap on Social Security payroll taxes. All income above $137,700 avoids the 6.2% tax so the more you make the less you pay. All capital gains and dividends are taxed at lower rates than our earned income so the more you live on dividends and gains the less you pay. Most high income executives take most of their pay as un-taxed deferred compensation—usually at lower rates. For instance, Warren Buffett with $86.8 Billions pays only 17.7% in taxes while his staff pay over 33.9% of their compensation. So the more you make, the less you pay. Yet the millionaire Congress denies helping most Americans during their hour of need after providing one of the largest tax breaks in history to the rich just 2 years ago.

Pay only your fair share: https://www.amazon.com/Tax-Credit-Class-use-your-credits-ZERO/dp/1539462382

 

 

 

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

 

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

 

 

Our ‘Truth and Reconciliation Commission’? 

 

Healing America begins with admission: 340,000 dead

 

Dictator’s advisor: “we want them infected”

 

Dictator sitting on 55% vaccine: 3,000+ die per day

 

Dictator’s revenge hurts:

no stimulus, no unemployment, no eviction extensions

 

 

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

Millionaire congress ignores voters: WH does nothing; we pay for vacations; power plays  

60% of GOP/Trump tax cuts went to the top 20%; the corporate tax rate slashed by 40%.

McConnell decides not to help America’s poor/unemployed: GOP ran deficit for rich but not us

Millions go to food banks for 1st time: McConnell: Congress has provided enough pandemic aid

 

Commander vetoes own defense bill so he can sue Twitter: no raise/housing fix for troops

 

Louie (the Bull) Gohmert (R-Texas) sues Pence to nullify Biden win: waste court’s time

Sen Hawley MO Trumpist to vote to nullify our votes: Trumpists try delay for Coup

 

Seat belt mandate in every state saves lives yearly: life you save with mask may be yours

Luke Letlow, GOP Louisiana, died of covid-19 : Pelosi praised service to country

Judge orders GA GOP to stop purge of Dem voters before senator elect re-vote:

 

 

SCAMS/SPINS:

Is a pardon the same as not guilty? Gen Flynn lied a lot: FBI: will USSR clients pay him now?

Trump’s “virus is hoax” was lie: 340,000 dead: Sen Ernst, Graham ‘hoaxers’ took vaccine; Why?

Saudi ruler sent woman to prison for 6 years because she drove her car: Trump agreed

America: world’s largest death dealer: Israel, Saudi Arabia, United Arab Emirates Egypt despots

 

Domestic terrorists occupy DC hotel ready to help dictator remain in power in WH

Secret Service agent switched out due to political persuasion: Biden has old team back

 

 

Omni Financial caught violating military allotment rules: fine no jail

Snow Teeth Whitening caught claiming protect against virus as well as dark teeth

Miracle Farming caught raw apricot seeds or kernels do NOT cure cancer: B-17 is fake

Tesla owners last year cited an “alarming number of car fires”: start spontaneously.

Home Depot ceiling fans recalled: blades could spin off while twirling

Chase ditches Expedia for own Chase portal: book a flight completely free using points 

PPP loan forgiveness rules changed twice: tell accountant to measure twice, cut once

Review 529 plan rules change: 2017 tax reform bill and Secure Act.

Recall dog food: Sportmix pet food products cause illness/death from corn mold.

 

 

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

Jobs in high demand: IT, accounting, financial, health care, education, training

Millions out of work: unemployment up; shoplifting up; burglary down

 

Who owns your account now?

Spend your FSA dollars before they die or carry over to next year.

Time to downsize vehicles: 3 best used: reliability, safety and long-lasting value.

 

Miracles:

Science finally trying to limit our mosquito bite itch: how do they find my skin?

Kids! Math and playing Othelo can keep you healthy: Kane Tanaka, turned 118 in Japan. 

 

Good events of 2020: former teacher used yard for small group of children Wildside Academy

 

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/

Give your child a leg up: Make sure they can make and manage money

Give your child a leg up: Make sure they can make and manage money

Only 17 states require your child to learn how to determine which investment pays the highest return on their money. Most think it is a savings account. This could be one reason most of us are going to be broke in retirement and the amount of credit card debt has doubled to over $8,000 per household. Children are moving back home after racking up huge student loan debts. Most parents have no clue about the fundamentals of personal finance—investing, interest rates, compound interest, why the rich get richer, and avoiding debt by creating your own ‘bank’ of tax-FREE accounts. Unbiased advice is easily available. For instance, if I loaned $250 a month to big companies we use every day, over time, with interest on my money left with them, would grow to be $63,000 in 10 years, $245,000 in 20 years, and $790,000 in 30 years. The Miracle of Compounding: I loaned them $90,000 ($3,000 X 30 yrs) and now I have $790,000. If I use a tax-FREE account, the amount is not taxed—now or later. I learned from John Bogle that you give up 63% of your total potential nest egg if you pay someone 2% a year to handle your money. Warren Buffett’s advice is so simple, anyone can follow it.

Use Unbiased Advice: https://www.amazon.com/Wealth-every-school-graduate-century/dp/1466427906

Is financial planning really like Netflix?

Instead of a 0.28% fee on your assets every year, Schwab will charge $300 financial planning fee once and a $30 flat monthly subscription that will not increase with assets. $360 a year sounds great compared with the $350 ($125,000 portfolio) that rises each year. You get investment management, a financial plan and unlimited guidance from a certified financial planner, whether you have $100,000 invested or $2 million. Of course, the details matter. We did a complete evaluation and plan with analysis for $750 from a CFP on less than a $1 million. If your situation is complex and changing, Schwab is a good deal especially if you have a good planner on over $1 million. If you have a smaller simpler nest egg, you may be overpaying. $30 a month for 30 years is over $10,000 and no extra benefit. If you believe in market timing with the right advisor, you may have a bargain here. Schwab makes their profits on the 8% cash you are required to keep instead of securities. However, most investors with active management earn just 3.79% vs 11% with an index fund. If you are a Warren Buffett investor, Schwab is not worth it.

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

Is your advisor becoming your ‘therapist’?

Is your advisor ‘helping you change your behavior’ when it comes to money? This is their new role: “guide the client’s behavior so they can live their best life possible with the money they have.” But how can advisors do this—inputting your data in planning and trading software? Some think that advisors need to evolve to the more emotional aspects of money. Some brokers are told they must help us align our money with our values. They are told to find out our purpose in life. They are told to ask: “I’d love to get a sense for what gets you up in the morning.” Brokers must know our goals in order to plan the uses of our money. This requires that they “help us dream a bit and add real value to our lives.” Vanguard has studied this added value since they use paid staff not commissioned brokers. They use a ‘service-centric’ model not a ‘beat the market’ model. Brokers are told to raise their value to us by “positioning themselves as a truth tellers.” But brokers can’t tell us the truth—“my firm overcharges you because we only use high-fee products.” Problem is, most brokers don’t have time for counseling us. They must make enough sales daily to meet their firm’s revenue target. If we have less than a $1 million, therapy is too costly to perform on us. Unbiased fee-only planners are the best advisors.

https://www.amazon.com/Unbiased-Advisors-Network-helps-tax-FREE/dp/1470106841

Where is FREE tax preparation?

The free AARP tax-aide sites are filling up quickly: aarp.org/money/taxes/aarp_taxaide/. Before spending $200-400 for a paid preparer, try filling in the screens using the IRS partners at irs.gov https://apps.irs.gov/app/freeFile/. The instructions are easy to follow especially if you have last year’s return to compare what forms you need. I have found https://www.freetaxusa.com very easy to negotiate and respond to email questions. This one charges only $15 for your state return: Fed is free. It is still $15 when as complicated like mine. Basically, you must pay tax on all your taxable income—wages, pensions, etc. This year you have less to deduct because the standard deduction was doubled. Beware some software glitches. However, you lost the personal exemption of $4,050 for yourself, your spouse and each of your dependents. For each child under age 17 you receive $2,000. In high property tax states—NY, NJ, CA, CT, etc you will probably owe this year. The deduction cap is now $10,000 and the average homeowners in these states pay about $20,000 property tax. The law was written by a Rep from a Red state.

Try software at irs.gov https://apps.irs.gov/app/freeFile/ before you go to paid preparers. Penalty for underpayment modified this year.

Check the status of your fed refund: https://www.irs.gov/refunds

Is your ride un-reliable and expensive?

Consumer Reports' annual survey: greatest risks of problems in 10 models counting down to the least reliable model, the Jaguar F-Pace. Climate system, steering/suspension, power equipment are possible trouble for Volkswagen’s Atlas. Climate system, drive system, transmission are suspect in Caddy’s CTS. Power equipment, engine, in-car electronics may hurt Alfa Romeo Giulia. Engine cooling, emissions/fuel system, climate system may hinder Kia Cadenza. Climate system; transmission, minor; in-car electronics slow The Escalade. Climate system; transmission, minor; in-car electronics may knock the $65,000 CT6. Fuel/emissions system, drive system, steering/suspension may fade HD Silverado. Body hardware, paint and trim, in-car electronics, noises and leaks may annoy Tesla’s X. Transmission, minor; power equipment; noises and leaks may bother Buick Enclave. In-car electronics, drive system, power equipment, noises and leaks irritate Jaguar’s “SUV”. (Can sports car be an SUV too?) Is Chevy reliable? Compare JD Power voters: https://www.jdpower.com/business/press-releases/2019-us-vehicle-dependability-studyvds

Find reliable discount coverage: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

Health Care is the issue for 2020

People were in favor 55% to 32% of improving the current health care system instead of replacing it with something new. When asked whether to remove the current system and replace it with single-payer through an expansion of Medicare to cover all citizens, 43% called it a “good idea” while 45% said it was a “bad idea.” By political party, 69% of Democrats and 42% of independents supported it while only 14% of Republicans did. For many voters, assuring family members of having care when they need it (including for pre-existing conditions) may be 2020’s 3^rd rail issue. Some have to borrow to pay for care and some do not get treated because of the cost. Trump vowed to kill our coverage for 20 million new insured and destroy the full comprehensive care guaranteed by ObamaCare. 55% of us worry a great deal about healthcare, topping a list of 15 issues. 49% worry a great deal about hunger and homelessness -- a new high. HALF of us worry about hunger & homeless. Hunger and Homeless are top concerns in America despite our growing wealth. For instance, today I got my annual physical free of charge. I need a colonoscopy and endoscopy which will also be free. If I had switched to one of Trump’s association plans, I might have a $3,000 charge since my procedures must be done in a hospital. I might just skip this hospital treatment and save the $3,000. The last time I got treatment I was sent a bill from a doctor who just wandered by my room. I had pre-qualified all the doctors for my tests in advance so I refused to pay this scammer.

Cover for pre-existing conditions: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083/

Is your 401k plan too small to qualify for reduced fees?

Employee 401k plans that have few participants are paying 4 to 5 times what employees in large plans pay. The average costs are 28 vs 7 basis points respectively. That means that over time, you may end up with $500,000 vs $700,000. Unless you have a sizable match to your contribution, you need to find an alternative. You can earn more by paying less using a tax-deferred IRA. Your investment options may be more suited to your goals also. After all, the market index is up 15% so far after last year’s loss but you have earned 15% per year for 10 years. Think “Time is on your side.” So if earning more by paying less sounds like a good strategy, take Warren Buffett’s advice and put most of your investments in a simple low-cost stock market fund. If you use a low-cost Vanguard fund, you will earn close to the market rate of 11% not 3.79% in a managed account. An IRA is tax-deferred just like a 401k. The IRA trustee can debit your checking account similar to payroll deduction. Buffett’s advice is don’t sell and lose your compounding boost.

Consider your options: https://www.amazon.com/401k-IRA-Tax-FREE-Tax-Deferred-retirement/dp/1475057938

Will our health care cost be over a Quarter Million Dollars?

Fidelity estimates the cost of future health care at $285,000 for a couple living to age 87 and 89. The estimate have 3 parts: (39%) - Monthly expenses of Medicare Part B and D; (42%) – Medicare cost-sharing including co-payments, coinsurance and deductibles (e.g., for doctors’ office visits and outpatient services) and excluded benefits (e.g., vision and hearing exams, eye glasses, hearing aids, etc.); (19%) – Prescription drug out-of-pocket expenses (e.g., co-pays and amounts not covered by Medicare Part D that individuals pay out-of-pocket for prescription drugs). Actual expenses may be more or less depending on actual health status, area of residence, and longevity. The estimate assumes that no employer-sponsored retiree health coverage is available, and does not include other anticipated future health expenses. Things that are not covered by Medicare — dental, basic vision, over-the-counter medicines, long-term care — would be on top of that $285,000 estimate. Because we don’t have all that money available, we borrow the money—an estimated $88 Billion. 25% of us skipped treatment because of the cost. Nearly half fear bankruptcy in the event of a health emergency. Still 2/3rds of GOP think this is the best health system in the world. Most people don’t believe the cost can be controlled—the health care industry has more lobbyists stopping Congress from negotiating the costs. Our future income is committed to the industry. 

America pays more and gets less benefits: https://www.amazon.com/Americas-Socialism-Only-little-people-pay-taxes/dp/1535218584

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Make America, “The Don”, Great Again

Senile Psychosis or Parkinson’s delusions? quetiapine and clozapine

Truth isn’t truth, his lawyer says

“The campaign -- for him -- was always a marketing opportunity.”

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

Will voters who need ObamaCare vote for it?

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

IRS delayed penalty on tax owed this year: Estimate your new rate: 22, 24, 32, 35%

Judge stops Trump opening of federal Artic Atlantic waters to drillers/destroy wilderness.

Mueller staff says Barr summary misleads: Cover up underway by Trump/DOJ More lies.

$36 Billion for electronic health records: Death by clicks, errors; & errors from fixes, etc

TrumpCare in 2020 budget is block grants: your state reps pick care options for poor.

TN cut 128,000 kids from wellness program—many end up at expensive ER.

SCAMS/SPINS:

Trump-Hannity solve energy problem: Wind “only blows sometimes” so use coal.

Lobbyists not EPA decide which cancer-causing chemicals you can use in child play area

Jury decides asbestos in talcum powder does not cause your mesothelioma. 

Trump removes 78 regs on our health: more mercury, pollutants cause more sickness.

Trump bank Deutsche Bank kept money-laundering flowing despite knowing facts.

Wind turbines cause cancer according to TrumpCoal propaganda machine.

Govt receives more robo complaints but does little to stop them: Robos pay carriers!

CA has law against unwanted spam emails sent without our permission—fine $1,000 per.

Vision plans not help us but push us to buy high markup frames: kickbacks to Dr.

Fake news online confusing aging population: society effects health, wealth, safety.

JPMorganChase failed to inform clients: conflicts of interest managing money. No jail.

Dennis Gibb WA caught defrauding 15 investors of more than $3 million. Fine no jail.

Scott Capps PA stole $2 million from dormant accounts with stolen firm passwords.

Omar Zaki stole $1.7 mil mislead clients with fake formula claimed 80% return. Fine.

Greg Lindberg Eli Global, GBIG caught bribing NC public officials to regulate GBIG

ABB caught ripping 401k employee funds: moving from Vanguard to Fidelity $55 M.

Jose Ramirez, ‘Whopper’ caught stealing $1 million: client loans to buy bonds. Jail 

Direct Lending Investments, CA caught overcharging $11 M on fake loan values. No jail.

GOP to start ‘Bengazi’-type hearings to distract from Trump Troubles: Redo 2016?

GOP is NOT ‘party of health care’: No plan to make a plan Trump to destroy ObamaCare

Trump again promised “Great healthcare” if he is re-elected in 2020: GOP says no way!

GOP Senate becomes rubber stamp for Trump judges: American law turns right.

US Stem Cell caught blinding patients with injections of stem cells from fat. Continues

Catholic priests are burning books again: since Inquisition 1585

More immigrants will come from 3 countries Trump cut aid to since conditions get worse

Mob Boss gives in to N. Korea: lifts sanctions for NOT scrapping missiles: “I like Un”

“Individual 1” could be a Russian “asset”: Why FBI opened a file on The Mob Boss.

Mueller ignores Mob Boss family Russia deals: OK to conspire with enemy.

1. “Russia, find Hill’s emails” 2. Don’s Mob made Russian deals 3. Russia intel tricked voters 4. Polling data payoff 5. Special Russia deals 6. Fire FBI 7. Refuse give testimony

The Mob Boss can never go to jail: Trump has Kava as Supreme so no indictment.

‘No man is above the law’ … well up till now. Dictators nullify courts first, then votes.

Supremes protect Don’s ‘Orders’? – GOP: ‘Sure, pres can change Constitution anytime.’

Jobs:

Few graduates know which investment provides the highest returns: https://www.amazon.com/Wealth-every-school-graduate-century/dp/1466427906

Why people don’t vote: Reps get to Wash and give

Who owns your account now?

Home buying: https://www.bankrate.com/mortgages/apps-homebuyer-homeseller-best/

Get Advisor: https://www.amazon.com/Wealth-Wisdom-Questions-Wealthy-Families/dp/1119331536

Buy Driverless? https://www.insurancejournal.com/news/national/2019/04/02/522530.htm

Miracle:

One student shows HOW to make a difference: And it rubs off on others.

Pope gives convicted archbishop of Lyon another abuse chance: not accept resignation!

Most drivers are distracted while driving—miracle not more accidents.

IAN

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