Expecting negative returns in 2018?

Are you expecting negative returns?

This year is on track to deliver the lowest share of positive returns adjusted for inflation across 17 major asset classes since 2008, according to Morgan Stanley. Too bad. Our clients have stayed with their balanced portfolios because we can’t predict the future of the markets. This is a snapshot of their returns so far:

Total Return Fund Long-term Return Longevity

YTD 2018*                              2017

10.2%                                      21.7% 500 Index                     11.1%* since 1976

 7.9                                           3.2% Energy                            10.7% since 1984

10.4                                          17.9% Extended Market          10.9% since 1987

13.2                                          19.6% Health                           16.5% since 1984

 3.5                                           42.9% International Growth     10.8% since 1981

14.3                                          29.5% PRIMECAP                 13.9% since 1984

10.5                                          16.1% Small Cap Index           10.7% since 1960

 0.1                                           10.2% Wellesley Income          9.9% since 1970

 3.1                                           19.1% Windsor                       11.5% since 1958

 6.3                                           16.8% Windsor II                    10.8% since 1985

 8.0%                                       19.7%                         Average 11.7%

*9/26/18                                   Average Annual Returns as of 12/31/17.

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

Is ‘interactive’ life insurance right for you?

Your annual physical is no longer enough for one insurer. Now they want your ‘lifestyle’ data on a continuous basis or you can’t be insured. Hancock says. The Hook: policy holders are incentivized to adopt healthy habits and pay fewer premiums. On the other hand, insurers may eventually use data to select the most profitable customers, while hiking rates for those who do not participate. And can we trust them to provide the discounts or even pay benefits? MetLife and other insurers stopped looking for beneficiaries so they could keep the death benefits. If the beneficiary does not keep in touch with the insurer, they lose. Life insurance is NOT an investment anymore.

Make sure you need insurance first: https://www.amazon.com/Life-Insurance-Need-Save-right/dp/1480002178

Are you overpaying for car insurance?

This graphic shows the average costs per state for min and max coverage. Are you where you want to be? You may be paying for benefits you don’t need, like life insurance, towing, or full replacement. You may not have claimed all the discounts you deserve. Unfortunately, insurers don’t ask about the items you can qualify for since it reduces their commission. You have to ask to have life and health care insurance removed. If you have this coverage already, you’re wasting your money with a car insurer. Some add accidental death and disability insurance to your premium. Do you know when NOT to make a claim? If you don’t shop around, you never have the benefit of new client discount. Securing your discount adds up year after year.

https://www.amazon.com/Industry-Insiders-Guides-Buying-Insurance/dp/1466435712

Which Medigap plan is right for you?

Look closely at your supplement plan. Plan F will cease in 2019. The existing Plan G may be a better deal for you. Consult with your doctor and your records to see what you really need. Plan G provides the most benefits but at higher prices than others. For instance, you get limited foreign travel medical assistance included. Frequent co-pays get expensive. Can you switch to generic drugs? One agent says: “You save about $350 a year on premiums, so it makes no sense to buy F to cover the $183 deductible.”

Do your research: https://www.medicare.gov/find-a-plan/questions/medigap-home.aspx

 Is your Medicare Advantage plan denying service you’re due?

Auditors have found “widespread and persistent problems related to denials of care and payment in Medicare Advantage,” the report said. The fixed per-patient rates the government pays may give plans “an incentive to deny preauthorization of services for beneficiaries, and payments to providers, in order to increase profits,” the report said. Enrollment doubled over the past decade. One-third of Medicare patients are now covered by the private plans. In 2016, the plans denied 4% of requests to approve treatment before it was provided, known as prior authorization, and 8% of requests for payment after treatment. Only 1% of patients disputed the insurers’ denials. Most disputes changed denials to approve. Most plans provide additional coverage, such as vision, dental care, and prescription drugs.

Always dispute a denial: some plans reverse 98% of the time.

Who is this Mueller guy anyway?

He never speaks but his pen speaks for him. 35 so far. ‘Witch hunt’ has 191 criminal charges by this duly-authorized former FBI chief of the investigation. What happened to get Trump elected will require a simplified 2 hour movie to explain all that went down with this ‘Russia’r Trump’ thing. This investigation may be more important than the Nixon termination event. As happened then, our democratic principles are at stake. After all the voter suppression, can the people of America vote to put us back on track? Are our votes counted fairly? Can our Reps govern? Can the FBI do its job? Does donor money control every election? Do we outlaw all the money? How much power should the president have?

Will the middle class survive? https://inequality.org/facts/income-inequality/

Is a ‘Retirement’ bond right for you?

The retirement bond would not pay back the principal; instead, after 20 years, it would become more like a deferred annuity paying a stable, secure income—but investors would get more bang for their buck. Martellini says the retirement bonds could be offered as transparent, low-cost products that are easier to get out of than a typical income annuity. Someone five years from retirement today, a 61-year-old, would be buying 2023 retirement bonds. The bonds would start paying cash in 2023, and continue paying for 20 years. If launched, the new retirement bonds could be offered in lieu of bonds or annuities to investors. “Annuities are opaque, costly and mostly irreversible unless you’re willing to pay high surrender charges,” says Martellini. Most retirement investors want security and a guaranteed stream of income, but they also want the flexibility to adjust their investments and their potential income stream over time. But most bonds lose value over time so buying a bond locks in low income payments.

Buy Income and Growth Combo: https://www.amazon.com/Combo-Annuity-Guaranteed-Income-Growth/dp/1493572237

How much emergency cash is enough?

Savings, CD, MM, credit cards or bond fund. Which is best for you? Some propose an employer plan with paycheck deduction like a 401k but with no penalties. Actually some can do this now with a Roth 401k. You get tax-free growth for life and you can take your contributions out anytime without penalty. A short-term corporate bond fund like VFSTX will rise with rates. CDs are tricky since rates are rising so keep away. Or perhaps your best alternative is a HELOC. If you have equity in your home, you can obtain a line of credit for rainy day. Home worth 300,000 and you owe 150,000 you may obtain 50,000. With no closing costs and interest charged (current 5%) only when you use the line, this a perfect ‘emergency’ fund. You can leave your retirement money alone to grow. As long as you don’t misuse this money, you won’t lose your home—HELOC is a 2^nd mortgage.

Don’t fall for your broker/advisor illiquid products: https://www.amazon.com/Avoid-Scams-Brokers-Advisors-Sender/dp/1726328023

Do we go backward or forward with wages?

Most Americans say they are NOT benefiting from the $4,000 Trump promised. Most feel that Trump helped his class—giving us higher tax bills in the future to pay for all the cuts in revenue in the next 10 years. Corporations got to keep all their subsidies, grants and special financial deals. Average homeowners in CA, NY and NJ are not able to deduct their property tax so anyone with a single family home will pay more. Those who own the mansions have put the property in a legal entity to keep the deductions like The Don’s home in Trump Tower—all deductible. Because half of workers are not skilled they earn what they earned in the 1970s-80s adjusted for inflation. Plus health care costs rise and Obama subsidies were cut so many will go bankrupt with illness. We have no infrastructure works program that could employ those workers. Is going backward right for America?

Last time unskilled workers were left stranded, America did not abandon them. They got work building many village halls, dams, bridges, etc. We had hope because we were moving forward with a little help from the feds. 8.5 million of our fellow Americans had work and it paid off. Now most of the subsidy money goes to the wealthy class.

Move forward: https://www.amazon.com/Americas-Socialism-for-Rich-not-little-people/dp/1535218584

Another way the wealthy avoid their fair share

Trump’s new tax law changed the AMT—alternative minimum tax—so that many rich people will not have to pay it. Treasury gave us this tax after it was determined that 155 rich people paid no tax in 1966. Americans were outraged and Congress added a tax. AMT was born in 1979. Millions of rich people had to start paying their fair share under Reagan. Now Trump and his tax-credit class have got CPAs maximizing retirement contributions, funding a health savings account and making investment account adjustments where it makes sense to take the losses for use against gains. “After that, we go for increasing charitable contributions,” an observer added. You don’t need a CPA.

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

Homeowners in Dem states plan property tax limit workaround

New Jersey has set the rules for how residents can make an end run around the $10,000 federal limit on state and local tax deductions. Unfair treatment compared with other states is at stake. The average home in NJ is assessed $18,000 tax. Each jurisdiction can establish non-profits to collect taxes for education, fire, police, libraries, trash pick-up, road repair and other local services making them a charitable deduction. “If and when the IRS finalizes its rules, we’ll see them in court,” Attorney General Gurbir Grewal said.

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

Make America, “The Don”, Great Again

Senile Psychosis

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

McGahn is ‘lodestar’: Told Trump ‘NO’ - saved Mueller!

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

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

Is Medicare for All the answer? Obama Trump could NOT stop the rise in health care.

House on vacation again: no work no pay! Save $ millions—half are already millionaires.

SCAMS/SPINS:

Trump tax cuts went to the wealthy—some middle class actually pay more: voters wise.

Drug prices manipulated due to shortage and shortage created by drug firms: addiction.

Is your ride popular with thieves?

Social Security sends email; NOT call for information—never give callers your info.

Non-bank lenders playing the same role as in 2007: could melt-down happen again?

Trump raising the price of heating oil and gas with tariffs and Iran boycott.

Neil Maxwell CO caught investing funds without telling clients he did it.

Voya caught giving criminals passwords to 5,600 client data. Fined $1 million. Fees rise.

Philip Roesel caught using fake caller ID number to trick us 21 million times. No Jail.

Half of cellphone calls scams: fake directed at most vulnerable of us. Feds do nothing.

Suicide by cop: Everyday people with guns kill co-workers and get cops to kill them.

This is why Wyatt Earp in Tombstone took people’s guns when they came to town.

----------------------------------

Why is Trump surprised when the world laughs at his ridiculous narcissistic statements?

Trump: I fear #METOO Movement. “It’s happened to me many times.” “I grab p__y.”

----------------------------------

Jobs:

$73,000 driving for Walmart: Congress changing law to age 18?

Are you sure you want to keep out all immigrants? She is 7 and the next generation.

Who owns your account now?

Identity theft protection is free: Freeze your account so thieves can’t buy in your name.

What to watch to avoid cyberattackhack/theft: think like hacker—what can go wrong.

Genetic test: insurers can use it for genetic discrimination : results vary by company.

Your business self-insured for health care? Cut out the middle person.

OppenheimerFunds to Invesco Ltd.

Royal Bank of Scotland is changing its name to ‘Bo’ ?????

Miracle:

A tiny clip in your heart can save you but it costs $30,000: doctors/hospital extra?

Good Samaritan helps stranded car but then evil comes.

Two heads are NOT always better than one. Anything can happen and does.

IAN

41 Watchung Plaza, B242

Montclair ,  NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alert

New ways wealthy avoid taxes and we pay theirs

New ways the wealthy avoid taxes and we have to pay their share

The corporate rate was lowered to 21% (effective rate is 12%), so “today we can think about using corporations even though it means two layers of taxes, while historically we might have said that it doesn’t make any sense to have two layers of taxes,” one specialist says. This means the rich avoid 37%, 35% and 32% tax rates with income of $157,500 or more just by taking income as a business. They deduct their expenses as business deductions and pay under HALF the official rate. Even if they have the corporate and individual tax, they design income to the lowest possible level and end up paying less than we do. The wealthy have figured out how to avoid taxes. For instance, Warren Buffett, with $90 billions, pays only 17% total tax: http://www.youtube.com/watch?v=Cu5B-2LoC4s; Mitt Romney only 14%; John Kerry only 13% and Apple just 9.8%. Buffett found that his staff pays 32.9%—DOUBLE their rate!

They can use ‘carried interest’ as a Trader Business of their family office to deduct investment expenses, which were ended by the tax law. And remember, they can deduct their contributions to a deferred comp plan and let the company pay for their rides and entertainment and part of their dwelling. They can use their tax-deductible foundation to pursue hobbies or pay off debts. They can also bunch up their deductions to take full advantage of the new law. Inequality in net worth rises by 2020 election.

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

Will you have enough?

According to 2016 govt data, “older households” (over 65) spend an average of $45,756 a year, or roughly $3,800 a month. That’s about $1,000 less than the monthly average spent by the average U.S. household. Of course your spending in retirement will vary a lot so it is helpful to compare ‘average’ to your estimates. For instance, housing expenses average $1322 a month. But if you live in a high property tax area, your tax or rent will be more. Rents are above $2,000 in N. NJ. Compare the average in transport, food, personal, insurance, charity, vacations, hobbies, etc. Now, try estimating your SS benefits, pensions, IRAs, 401ks, other income. Average SS benefit we know is $1,342 a month. If you both have similar salary and work records, you can double that--$2,684. That leaves about $1,116 from all your other sources. Don’t use the popular 3% or 4% withdrawal rate—that worked when you could earn 6% at the bank. Markets change every year. You can estimate what you need and then you will know whether you should keep working.

By age 70, you must take your RMD from any tax-deferred plans. You can also increase your SS benefit each year by working past age 66 or 70 because SS recalculates your benefit each year with the HIGHEST 35 years of earnings, including those you earn after you begin receiving benefits. Perhaps you will have a surplus of income over expenses. Check 17 ways to use your RMD: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716

Why our children don’t know how to invest for the future

Only 5 states require schools to teach financial literacy. They don’t know compounding builds wealth or how to make wealth earnings tax-FREE. This leaves our future adults with no way to secure their future unless they inherit money. Employers are dumping pension plans en masse. In 1983 there were 175,143 plans, but in 2008 there were only 46,926 plans. So most employees have no idea how to replace the plans they have lost or never had. 401k was supposed to be the supplemental plan not the center piece of retirement. Now you know why most people are not ready for retirement and when SS is cut in 2034, this country will have the poor living on the street in the thousands. Warren Buffett is not a salesman for the financial industry so his simple strategy is the best way for our high schoolers to learn compounding and investing. His strategy requires time not big bucks—10% of salary is all the young people need to grow their money to a Wealth Reserve for life. In fact, if they or family contributed $2,000 for 8 years by age 27, they might have over $1 million by retirement just from the Miracle of Compounding.

Buffett’s Strategy works: https://www.amazon.com/MasterClass-Buffetts-SIMPLE-Strategy/dp/1983485268

GOP will end health care for Americans with pre-existing condition

GOP faced town hall outrage as it tried to end ObamaCare. Many people learned to love some benefits of ObamaCare. That included the expansion of Medicaid, allowing young people to stay on their parents’ insurance up to age 26, and forbidding insurance companies from denying anyone coverage or charging them more because of pre-existing conditions, which just about all of us either already have or will one day have.

The popularity of those provisions made repeal politically dangerous, so Republicans decided to leave the popular parts in place and try to repeal only the unpopular parts. Even that, however, proved impossible to do, and in the end they settled for a small morsel: Trump’s tax cut law repealed of the individual mandate by reducing the fine for not carrying insurance to zero.

Now TX leads a new lawsuit from a group of conservative states seeking to strike down the entire ACA. Trump has taken a position in that lawsuit that is just dumb. Trump will not defend the law that requires insurers to cover all his supporters with pre-existing conditions. They will lose coverage because of outrageous premiums on their conditions.

Trump and the GOP will have a hard time in 2018 since most Americans want coverage.

Buy only what you need: https://www.amazon.com/Health-Insurance-ONLY-right-policy/dp/1480125083

Did you forget to sign up for Medicare on time?

Did you mistakenly stay on your old private insurance plan (ObamaCare) past age 65? You should have switched to Medicare. Now you are stuck with costly lifetime late-enrollment penalties on your Medicare premiums. Until now! You can fix this problem is Sept. 30. If you have health insurance at work, there is no need to worry. You sign up when you retire. This late penalty forgiveness ends soon. Avoid the annual 10% penalty as higher premiums for Part B—doctors. Visit your local SS office to see if you qualify. Read instructions: bit.ly/2Jyzx8s. Bring all your health care paperwork, including evidence that you have been enrolled in a marketplace plan. 

Get all the coverage you already paid for: https://www.medicare.gov/pubs/pdf/10050-Medicare-and-You.pdf

Have you felt the wage increase?

Yes, real (after inflation) wages are going up after years of decline. The larger fact is that real hourly wages have been generally rising since hitting a low point in 1994-95. As of April, they were 19 percent higher than that low point. However, they are 1.5% below the highest point reached in 1972. Average workers’ wages have remained below the high of $9.40 adjusted for inflation. To make it up, we work more low pay jobs. 60% of American children are on Medicare or CHIP because their parents can’t afford health care or don’t receive it at work. Paychecks are rising even faster than hourly wage rates, because part-time workers are finding more work and full-time workers are getting more overtime pay. Inflation-adjusted weekly earnings for production and nonsupervisory employees have risen 1.4 percent under Trump, after rising 3.7 percent under Obama.

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

SCAMS: Beware the ‘guaranteed interest payments’ scheme

Steven Pagartanis, NY stole $8 million promising guaranteed monthly interest payments to his customers. He said they were invested in Genesis Land Development of Canada. There is such a firm but when I emailed them, they say Pagartanis’ investments are unknown to them. Since 2013 his firm Lombard Securities never checked his promises and no customer ever confronted him. Apparently, Pagartanis kept up the “above market” interest payments until this May. As in many Ponzi schemes, the payments and statements eventually run out ala Madoff. Usually the original investments are spent or hidden by the perp. Lombard is required to supervise its brokers but Lombard apparently has failed with other brokers and their non-traditional securities. Lesson: don’t assume your broker if offering you a legal deal if 1) the deal is great—above the market returns; 2) the firm or broker has a record on BrokerCheck; or 3) you don’t verify your money went to place your broker claims. In this case, you might have suspected something from broker record of not disclosing annuity terms to his client in 2013 and leaving 10 firms and joining 10 firms since 1996. Unfortunately, the industry lets bad eggs move to new firms and bad firms hire them. It is all about making money--caveat emptor and white collar crime is NOT a priority for Sessions and Trump.

Get an unbiased opinion before buying: https://www.amazon.com/Pimps-Wall-Street-money-middlemen/dp/151525254X

Is a safe-deposit box right for you?

Are you really paying $150 a month to the bank—$1,800 a year for a safe place to keep your goods? Over time that is costing you $1.3 million if invested in simple index account like Warren Buffett recommends. That might come in handy if you face unexpected medical or long-term care expenses 30-40 years from now. Consider that you already have insurance to cover jewels and other replaceables. Most of your important papers can be duplicated. Deeds, wills, list of credit cards passwords, passports and other information items are not going to be available to your heirs when you pass unless the box is held jointly. Your executor needs a court order and you won’t know since the will is off limits to you. For theft and fire safety, a home safe is more useful. You have the info and items at hand when you need them. A good safe costs $150-$250. It can be secured and hidden at home. It is fireproof and waterproof. Write the code down in a email to yourself. If you have fire or water damage, you can retrieve it from offsite computer or phone. You will need the $1.3 million later so use Buffett’s advice.

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

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

Make America, “The Don” Great Again

The Path to Dictatorship

“I have the absolute right to PARDON myself …”

“I could shoot someone on 5^th Ave and not lose voters.”

Only a criminal looks to a pardon for a defense

 “I have absolute right to do what I want with the Justice Department”

Trump’s Gestapo ICE troops break into house in front of kids

Immigrants not human, but "animals" Hitler/Stalin agree.

Trump takes children away from the “animals”

‘I’m the only one that matters’ Mob Boss Don, Nov 3, 2017

Loyalty to The Don above country. Treason? Above the Law?

Constitution: no clause for ‘absolute right’ to pardon

Trump: I can’t obstruct justice since I run justice

The Don did not invent the ‘big lie’ but he learned it well from an expert.

“When president does it that means it is not illegal” Nixon

So a President can never be mistaken?

Trump to put child refugees in prison camps on military bases

Justify separation with Bible which also says ‘kill adulterer’ Trump

Trump to refuse to answer special prosecutor’s questions: Above the law?

FBI finds answers in ‘The Don’s’ consigliore’s office/home/hotel

“I have nothing to do with his [Cohen] business”

[except when I pay him to pay off sex partners who could leak]

Trump thinks FBI subpoena on lawyer is “Attack on our country”

Trump thinks the govt is ‘conspiring against him.’

Trump: I decide which crimes are minor fines; lets criminals go.

 (Dictators often have delusion they are being attacked by insiders)

Trump ignored intelligence community message ‘we are under attack.’

Trump gives Putin control of election: eliminates U.S. cyber advisor

Treason definition: ‘giving them aid and comfort within the United States’

Putin’s influence: Manafort, Flynn, Gates, Page, Stone, Papadopoulos, Sater, Zwaan  jailed, Kilimnik, Prince, Jr, Jared, Sessions, Cohen, Yohai, Freidman

Fake ‘Witch Hunt’ produced 5 guilty; 20 indictments, 75 charges.

Putin controls power utilities, 21 state voting files, Trump slush fund, networks

Russian SS has ‘pee’ tape of Trump

Trump lied about time making ‘pee’ tape. “My head never hit a pillow” he admits.

“The election is going to be rigged—I’m going to be ‘honest’” 

GOP voter suppression a success: Dems lost --GOP poll workers moved voters’ districts

Trump to end Free Press 1^st Amendment access since not positive to him

Trump can “adjourn them [Congress] to such Time as he shall think proper.” Art II, Sec 3

Can Trump postpone Nov 2018 election using excuse of Putin meddling needs fixing?

GOP controls 31 state houses

(Dictators in some countries start their régimes that way!)

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

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

Only people who don’t know our government secrets are the people who pay for them.

Can single-payer health care work: US spends twice as much for fewer people than others

IRS has only few agents who can track tax evasion so this crime pays; US to be Greece 

Trump advisor says his tariffs could wipe out tax cut benefits—higher costs for all.

SCAMS/SPINS:

Trump changes his mind on tariffs under pressure: We have surplus with Canada!

Trump to pardon celebs who don’t need pardon. “Those who don’t read history are doomed...

Trump puts tolls on the Internet so we pay more and corp get special fast lane.

Trump EPA head leaning on The Don’s network for a job EPA staff as job advisor. 

Trump says he ‘trusts’ Kim and ends military exercises: nothing in return--Compare Bush

Trump sold Kim on real estate and beachside hotel opportunities. Korea Trump Tower

Cryptocurrencies lose $42 billion on news of S Korean exchange hack

Trump manipulated our news sources to win election in key states: 66% of us affected

Trump de-regulation of toy makers means more harm for our kids: Mattel higher profit

Trump is purging govt workers—loyalty to him personally, like cult leader or mafia.

BoA Merrill Lynch caught overcharging for bonds by lying about the costs

LPL caught selling illegal unregistered securities and not supervising brokers.

Early Madoff Ponzi investor gives back $280 mil to his network who didn’t know Bernie

Jobs:

Big oil needs workers no matter what education: $140K

Coastal towns need sea walls by 2030: Antarctica’s ice melting at increasing rate. 

Child care/reform school workers/guards for keeping babies & kids of immigrants in TX

            Parent told kids going for showers and clean clothes — but never returned. 

Who owns your account now?

Supremes decide you lose your vote in OH – state has power to purge you at will.

We don’t really own our Alexa Amazon account so we may not control recordings

Virtual currency gambling not going well—lost HALF value so far in 2018

Time-Warner to ATT—Cohen got it done: How Govt works against US

Fox to Comcast?

Can we trust Ari Melber to explain the legal case against POTUS? Steele?

Miracle:

Teacher gives $1 million in scholarships to special ed children she loved

The dictators met for a deal: Why pretend anymore—Trump TV has it right

"Regardless of what happens in that meeting between the two dictators" FoxNews calls it.

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts