Your Unbiased Advisor: virus masks

Showing posts with label virus masks. Show all posts

Friday, January 8, 2021

Rebuilding our lives in 2021

We still have to wear masks since many Americans find it hard to protect themselves and others. We hope enough of our fellow Americans will take the vaccine so we can re-establish our lives. First, let’s rebuild our emergency fund. Most of us are wasting money on products/services we don’t need. I cut out my cable sports package to save $40 a month. I found the games I missed on YouTube—some were summaries of the important plays—some the full exhibition. I find tons of movies/shows on YouTube free. I buy cars with least problems. I was able to get my town to re-evaluate our property tax bill. I got on the town property records and found similar property with less assessment. I filed an appeal. The town assessor visited my home. They offered to reduce the assessment and I saved $1700 a year. I did my own federal and state tax return online for $14 instead of $550 by just filling in the same forms as last year’s tax preparer and I have 2 businesses. It worked—I got a bigger refund--$3,566. I shop groceries online: they load them in my car. I save because I can see the discounts in all aisles. For commodities like tissues, I compare buying them in bulk (free shipping) at the box stores. I buy house brands usually. I use my daughter’s Prime for free shipping and entertainment. I use a 25 cent/min cell and pay $9.99 landline to screen robos. I moved all our IRAs to Vanguard and save over $4,500 annually in fees.

Stop wasting $3,000 a year: https://www.amazon.com/Save-3000-every-year-Only/dp/1500681571

Got 2^nd stimulus check?

Stimulus money is called Economic Impact Payment. Eligible individuals who did not receive an Economic Impact Payment this year – either the first or the second payment – will be able to claim it when they file their 2020 taxes in 2021. The IRS urges taxpayers who didn’t receive a payment this year to review the eligibility criteria when they file their 2020 taxes; many people, including recent college graduates, may be eligible to claim it. People will see the Economic Impact Payments (EIP) referred to as the Recovery Rebate Credit (RRC) on Form 1040 or Form 1040-SR since the EIPs are an advance payment of the RRC. Income is based on your 2019 adjusted gross income (AGI). Individuals earning under $75,000 and heads of households under $112,500 typically qualify for the full $600 stimulus payment. Those married and filing jointly or surviving spouses earning under $150,000 usually qualify for a $1,200 payment. Check the status of your payment at IRS.gov/GetMyPayment. So tell your tax preparer if you did NOT receive your money by direct deposit or check. You can receive it as a tax refund. It is not taxable as is unemployment compensation unfortunately.

Build your tax shelter: https://www.amazon.com/Your-ZERO-Tax-Account-Wealthy/dp/1482772795

Is starting SS benefits at age 62 right for you?

We thought we would receive more SS benefits each year but we found out once we started at age 62, 63, etc our benefits would never increase except for the cost of living COLA adjustment. There are many reasons to start benefits at age 62 and not wait for the highest payout at age 70. However, if you claim Social Security benefits before reaching full retirement age and also work, it can cost you. The government could reduce your Social Security checks by as much as $1 for every $2 in earnings over a certain amount, up until you reach full retirement age. Social Security uses your lifetime average for monthly income, as calculated from your 35 highest-earning years and adjusted to reflect historical wage trends, as the basis for your benefit calculation. Even if you’ve already started your benefits after reaching full-benefit age, Social Security annually recalculates this average, factoring in any new income from work. If your current earnings fall into your top 35 earning years, your monthly average will rise, and so could your benefit. Be sure to visit your local SS office before you apply for benefits so you don’t make a mistake and lose money for the rest of your life. There are many ways to maximize your benefits so an office visit is worthwhile.

Increase your retirement income: https://www.amazon.com/You-Can-Afford-Retirement-FEE-FREE/dp/1517738253

Why our readers love Wellesley Income fund

Many of our readers are retired or near retirement. When investors start relying on their own funds for income instead of a paycheck, they offset possible high stock returns for regular steady balanced returns. Most investors fear a market downturn that will reduce their income now or later. Vanguard’s Wellesley Income fund is a low-cost balanced fund managed for steady returns from stocks and bonds. Most of the holdings of this fund are bonds so picking the right securities to maintain an annual return of near 10% is important. Many readers explain how they have overweighted their portfolio toward this fund over the years taking more and more of their annual RMD income from this fund. However, they still rely on other Vanguard funds to pick up high stock funds as in ’20.

They avoid paying a broker and thus avoid giving up much of their potential long-term gains. No trading, no timing, no gambling. Other popular low-cost funds are:

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.

Pay less; earn more: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

Pandemic tax filing made easy

Save virus exposure and money by doing your own taxes on a site approved by the IRS. IRS Free File lets you prepare and file your federal income tax online for free. File at an IRS partner site with the IRS Free File Program or use Free File Fillable Forms. It's safe, easy and no cost to you. Most of these sites file the state return for a nominal fee also. Most sites are open Feb 1 and most guide you through the process by asking questions. Some will try to sell you the deluxe version but legally they cannot force you to pay for the Federal filing. Employers must file Form W-2 and other wage statements by Monday, February 1, 2021. This is also the date Form W-2s are due to employees. Even if you have a small business, you can complete Schedule C on the sites. If your income is over the stated IRS amount you are still better off using these sites and paying a fee. Our income is above the Free File guidelines but we still use the same site year after year and pay nothing for the Fed return filing and $14 for the state filing. Best bargain around.

Save $300-400: https://www.irs.gov/individuals/steps-to-take-now-to-get-a-jump-on-this-years-taxes

Is investing in a real estate investment trust right for you?

This market is depressed since many businesses are cannot pay their lease expenses. As the economy improves, commercial real estate returns will improve. Vanguard’s REIT fund price has fallen and so it is on sale now. Long term returns show almost 10% gains. Since the income is mostly dividends and interest, put your dollars to work in an IRA. You defer taxes until later when gains will be higher.

https://investor.vanguard.com/mutual-funds/profile/VGSLX

Why is it better to take IRA tax deduction in 2021 for 2021 not 2020

Retirees who still work can now reduce taxable income by making $7,000 IRA contributions regardless of age. The age limit for IRA contributions was lifted in 2020. So our RMD for 2021 may be larger and thus a higher tax liability. For some, their IRA balance is up 17% and thus the RMD calculation will be made on a much higher balance than previous years. Retirees did not need to take an RMD in 2020, so they will have lower taxes. However, in ’21 the RMD amount may be higher causing higher taxes. These retirees will need the IRA contribution deductions to lower their taxes for tax year 2021 not 2020. So since we have a choice of 2020 or 2021, we will make sure we make deductible IRA contributions for 2021 anytime in 2021. If we don’t need the deduction at all, we will contribute to the Roth IRA which gives us tax-FREE income later when we no long have earned income. Of course you can always convert IRA money to Roth for a tax-FREE future.

https://www.amazon.com/Go-Tax-FREE-Investing-Income-Forever/dp/1482633280

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

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

President of the United States tries to overthrow our government

Trump incites ‘mob’: "failed insurrection"

FBI: ‘domestic terrorists’

25th Amendment: “high crime and misdemeanor”

Our ‘Truth and Reconciliation Commission’?

How Govt wastes our money: Coup attempt put down; Dictator still has atomic codes

Dictators unstable after loss: do crazy things like “go out in a blaze”: Pence take over?

Who removes Trump Jan 20 if mob takes WH: took soldiers hours to drive to Capitol

Usual outcome of failed coups study: failed dictators are exiled, imprisoned or executed.

Coup attempt: Congress overrun by Trump terrorists; police lost; Dictator eggs on

Congress hides; put on gas masks: furniture block doors; 4 dead; soldiers too late

Where were Antifa-scist when fascists stormed Capitol? Dictator got his mob action

Capitol police refused FBI and Guard help twice: racism/pro-Trump bias/hubris kills 4

American intelligence agencies failed to recognize coup attempt: White privilege?

September report Homeland Security surfaced identifying white supremacists as threat

FBI: domestic terrorism: Violent, criminal acts committed by individuals/groups to further ideological

‘Commander in chief’ vetoes own defense bill but Congress approves 3% troop raise

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

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

Our ‘Representatives’ gave 3.7 Trillion to the wealthy already! $600 for us

Pence VP leads Trump party in sedition to overthrow duly elected government

2^nd impeachment bill called for: Dictators think they can do it again if not punished

Trump lieutenants freeze Defense transition to Biden gov control: sedition

Trump cancel Iran treaty so Iran making more bombs: Iran: Trump is “sick person”

Trump: cancels bias protections. cancels bird protections: revenge on American life

Trump sells our Arctic National Wildlife Refuge: Can Biden reverse this waste?

Putin: Operation Chaos worked: Trump offered Hero of the Soviet Union + 2 hotels

SCAMS/SPINS:

Dictator to GA: “I just want to find 11,780 votes” Loser asks GA for criminal act

Thank God: our democracy lets our Reps make fools of selves voting for loser again!

15 million doses given out but only 4.5 million used: no plan so pandemic gets worse

FL woman waits 19 hours for vaccine: govt stockpiling doses

My government has "exaggerated" the COVID-19 death toll, dictator says. 370,000+

Trump doubles hotel rates for Biden inauguration guests: many boycott his properties

SCAM: 2^nd stimulus check scammer’s calls steal our info

SCAM: pharmacist destroys our vaccine since heard DNA affected by vaccine: untrue

Dictator law: “…When neither the facts or the law is on your side, pound the table.”

Before all Cabinet resigns vote 25^th Amendment removal for incompetence.

White terrorists allowed to go home: police open fence Black protesters arrested and shot

Biden: terrorists not protesters; terrorists trample police; occupy seat of power

Trump promises ‘orderly transition’ like he did before sedition: his lies continue

Boeing pays $2.5 billion to end criminal charges for killing 346 people in 2 crashes

William King FL caught selling penny stocks without disclosing his fees: barred

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

Biden hiring new Washington agencies: cleaning up the mess left by the Trumpists

Who owns your account now?

Have gun for protection? Rev McWilliams was killed with own gun: killers are faster

Ohioans can now fire a gun in ‘self-defense’ anywhere they are legally allowed to be.

Congress people now carry guns around Capitol despite DC law. Visitors stay home?

New car picks for 2021: Buy right car insurance. Avoid the poor values. Poor reliability

Miracles:

Each state has own rules/timing of vaccine: some stand in line; some vials wasted

People without symptoms spread virus in more than half of cases

We are burning up our world: 2020 hottest year on record again

Justice: Woman accusing Black teen of stealing phone caught in CA: phone left in taxi

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/

9549013194571004364849

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

Friday, October 2, 2020

Advisors fail to educate us about retirement needs

The main reason people continue to pay advisors is for advice. However, we don’t seem to be educating us. Study after study show the lack of financial literacy even after years of paying fees and commissions for help. Advisors don’t seem to know how to help us understand how much income we will have in retirement. Eight in ten respondents failed a retirement income literacy quiz according to an industry education group. More than half the folks underestimate the average life expectancy of a 65-year old (and thereby underestimating the amount of time they will need to stretch their assets). Investors do not recognize how to properly evaluate asset risks in the first place. But that is what we pay advisors to do, right? Most advisors do not even know how to weigh the risks themselves. Most learn to sell products. Advisors blame us: “clients preparing for retirement often underestimate the need to make sure retirement income comes from different sources. Too many assume that they can rely on dividend-paying stocks to fund their retirement,” one argued. Most focus too much on portfolio management as opposed to factors that will likely have a greater impact on their financial wellbeing, like health care expenses and long-term care needs. Only three in ten respondents have a plan in place. Learn what your advisor doesn’t tell you before it’s too late to fix it.

https://www.amazon.com/Lies-Financial-Advisors-Told-alternatives/dp/1478281545

Investors who did NOT panic ended 2019 with $360,000

Fidelity Investments’ 401(k) customers who stayed in the market during the 2008 crash saw their account balances rise, on average, from $79,000 in 2008 to $360,000 by the end of 2019. Although people who got out of stock funds in 2008 reentered the market and continued to save, their average balance performed worse, rising only to $276,000 by 2019. That’s a panic loss of $84,000 or 30%. A Vanguard study showed the same result: Vanguard just analyzed the panic factor from Feb to May and found the “panickers” earned less than those that did nothing. “Doing nothing” has been the hallmark of Warren Buffett’s attitude: “We continue to make more money when snoring than when active."

Do Nothing; keep contributing: https://www.amazon.com/Snoring-Best-Way-Create-Wealth/dp/1466408928

Is using an advisor right for you?

Every day investors hear the so-called professional ‘advisors’ predicting opposites: The "no matter what happens—stocks" advice and the “more downside risk for the U.S. equity markets than upside potential” advice. Many studies say advisor-managed investments just don’t help us long term. In fact, if we pay 2% in fees, commissions, bad market timing trades and being out of the market, we can give away “63 percent of what we would have had.” This is not to say that we don’t need specific financial advice once in awhile. We could just pay a fixed fee like we pay lawyers and doctors. They don’t ask for 2% of our assets every year for life. So I paid $750 for a professionally prepared financial plan so I know, within certain boundaries, how much my family will have to live on for the next 30-40 years. The alternative was $15,000 + a year for at least 30 years or over $450,000 total. And that is not tax deductible anymore. That savings will cover any long-term care needs and final state and federal taxes and expenses. Many index investors obtain advice from fee-only financial planners since they have been burned by bad advice. Brokers and advisors are trained and paid to sell. As their manager in a former life, I decided what they told clients to maximize the firm’s revenue not theirs. Stop paying for guess work: https://www.amazon.com/Pimps-Wall-Street-money-middlemen/dp/151525254X

Trump like many corporations pays little tax

Even after getting paid for income garnered from President-branded activities, Trump paid only $750 in taxes. That means he claimed income of just $7,500 in 2016 and 2017. We know his FL club took in $ millions from new memberships. Since he now controls the IRS as part of Treasury, his IRS audits are over. Audits of using suspicious losses to pay $0 taxes for decades have a limit of 3 years unless his DOJ lawyer can prove tax fraud. Not likely. In fact we paid Trump $72,900,000 in tax refunds he claims from years of losses on business failures and bankruptcies. For instance, he claimed losses of near $1 billion ($915,729,293) on his 1995 personal income tax returns. His casino companies made four trips to bankruptcy court, letting bondholders take the losses, while he took millions. He continues to claim business losses to reduce his taxes: “losses are more accounting magic” he says. In 2018, for example, Trump announced in his official disclosure that he had made at least $434.9 million. But his accountants say he lost $47.4 million. His New Jersey golf club increased admin expenses fivefold from 2016 to 2017. Most of Mr. Trump’s core enterprises — from his golf courses to his WH hotel — report losing tens of millions of dollars year after year. Like many corporations, Trump increases business expenses or losses to avoid paying taxes. We pay for their losses and refunds. Socialism for the rich: You and I pay for their failures!

Socialism for the Rich: https://www.amazon.com/Americas-Socialism-Rich-little-people-pay/dp/1535218584

IRS audits the poor not the rich

IRS admits it can’t audit Trump and friends: wealthy avoid paying their fair share. Wealthy pay lawyers to outwit the IRS: Congress keeps cutting IRS budget. The top 10% of earners have accounted for most of the revenue gap, experts say, by underreporting their liabilities, intentionally or not, as tax avoidance or outright evasion. Those with annual incomes under $25,000 are audited at a higher rate (0.69%) than those with incomes up to $500,000 (0.53%), according to the IRS data. Trump will never reveal his taxes since his audit will never be done. The IRS will fail to collect nearly $7.5 trillion in taxes owed between 2020 and 2029, according to one study. Poor MS Blacks are the most audited target. White Alaska Denali is least audited county. Working Americans have one last IRS-approved tax shelter. Why pay the taxes due from the wealthy?

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

How to avoid taxes like the President of the United States

He pays no taxes. "That makes me smart." We pay his tax refund; that makes us dumb? Actually, his accountant is the savvy one. Trump knows “virtually zero,” he said.

You too can use tax credits and depreciation just like he does. But only if you use his special accounting firm and accounting “magic” and many legal tricks to delay IRS audits and lawsuits. Trump audit has been ongoing since at least 2015: no end in sight.

“He put up little of his own money, shifted personal debts to the casinos and collected millions of dollars in salary, bonuses and other payments.” The burden of his failures fell on investors and others—local contractors—who had bet on his business ‘acumen.’ “He put a number of local contractors and suppliers out of business when he didn’t pay them.” Like his “university,” that cost folks seeking a valid education, his businesses are run like a confidence game. For instance, his New Jersey golf club increased admin expenses fivefold from 2016 to 2017. He convinced Congress to allow his wealthy friends and business people to avoid paying taxes on real estate projects if they claim they made “investments” in special zones like New Jersey waterfront properties. If you don’t have enough money or inclination for tax avoidance from real estate, you can use two simple techniques yourself. Anyone can deduct expenses against regular income by showing a loss from any small business. Among Trump’s deductions: $70,000 to style his thined hair. And anyone can use the IRS-approved tax-FREE investment account. Stop paying for their share.

Your move: https://www.amazon.com/Tax-Credit-Class-your-credits-ZERO/dp/1539462382

Are long-term care premiums right for you?

Less than one in 10 individuals thinks it is 'very likely' they will need long-term health care in retirement, according to a recent study. According to some insurance advisors, 70% will need some care. Unfortunately, the sellers are overstating the facts to make the sale. 1.4 million Americans live in nursing homes—about 2.8% of 49.2 million adults over age 65. Many people stay in nursing homes immediately after a hospitalization. During these short-term stays, Medicare often covers the costs. Unless you have a large estate you wish to pass on, most people self-insure their needs when they need help. Usually family provides assistance of all types. If living independently becomes impossible and you have used all your funds, Medicaid will pay for nursing home stays. For the wealthy, the average annual cost of a nursing home room is around $85,776 per year for a semi-private room or $97,452 for a private room. And according to the American Association for Long Term Care Insurance, only about 12% of people stay in nursing homes for more than five years. Costs vary a lot so shop multiple salespeople. Those who buy a couple policy before age 60 may end up paying $5,000 for 25 years or $125,000 and never use the benefits. Further, a typical stay is generally shorter if you're married than if you're not, likely reflecting the fact that one member of a couple often functions as a caregiver for the other as they age, delaying the need to move to the nursing home. Most people want to stay at home and will pay to make that work for them. Do your research first: Premiums go up and coverages are limited over time.

https://www.amazon.com/Long-term-Care-Insurance-Updated-2013/dp/148274001X

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

Like 1776, this period is a test of democracy—do we really want ‘low-IQ’ Mobster?

Philly DA: we have an “authoritarian dictator."

Dictator: “done a very good job” only 209,000 dead

Dictator: I pay no taxes. "That makes me smart."

Dictator: ‘Genius’ of the ‘Big Con’

Dictator: I won debates but

I got Hope’s Hoax

Dictator: Make America White Again

How Govt wastes our money: Congress gives 3.7 Trillion to the wealthy!

Trump troops use chemical weapons: Politicians not Army decide who gets gassed