Great gift idea for your young person
In a few short chapters your favorite teen can gain insight to the world of money. No school has this course YET. All their contributions (with your help) go toward their future financial foundation. They will have enough for their needs without TAXES, FEES, and COMMISSIONS. Set up the account in 1 hour online and manage it only once a year. “So simple yet so powerful a strategy, anyone can.” ABCs of Building Wealth
amazon.com/ABCs-Building-Wealth-guide-accumulating/
Small business helped by Obama-inspired health insurance exchanges
A vast majority of New York State's small business owners are giving two thumbs up to health insurance exchanges as a viable way to provide health insurance to their employees, according to a statewide survey commissioned by HealthPass New York, a NYC-based commercial health insurance exchange. The survey also found that exchanges have the potential to change the health care marketplace in New York at a time when many small business owners are struggling to keep afloat. The federal Affordable Care Act of 2010 requires states to create their own exchanges to give small businesses access to affordable health care coverage or be included in a federal exchange. "We believe that health insurance exchanges have the potential to stimulate economic development throughout New York State,” one observer said.
Would you send your son/daughter to a place where rape covered up for years?
Paterno said he did not inform police and waited at least a day to inform his boss, athletic director Tim Curley, because he "didn't want to interfere with their weekends."
McQueary testifying that he personally saw Sandusky with his arms wrapped around a boy's waist in a shower, and believed (although he was not 100 percent certain) that the boy was being sodomized. He immediately called his father, and they decided he should go to Paterno the next day.
The AG's office wrote that "there is no indication that anyone from the university ever attempted to learn the identity of the child who was sexually assaulted on their campus or made any follow-up effort to obtain more information," and "there was no effective change in Sandusky's status with the school and no limits on his access to the campus."
The allegations subsequently came across as "not that serious" to Curley, and that it seemed to amount to a case of "he said, she said." Who is the she here?
Sandusky had been implicated as a possible sex offender as early as 1998, when university police were involved in an investigation following "allegations of sexually inappropriate behavior involving Sandusky and young boys in the football showers."
Where are the adults here?
Advisors pushing annuities—commission up to 17% BEWARE
More and more financial advisers are recommending stock market-linked variable annuities as part of retirement planning but one of advisers' biggest objections remains the cost of these retirement savings and income products. Bank sales up 11%! Guarantees sound attractive but small print can kill. Read our Guide FIRST: amazon.com/Not-Buy-That-Annuity-Guaranteed/
TX homeowners may not get refunds after all
State Farm Lloyds, the largest writer, has asked a Texas appeals court to reconsider an order requiring the company to refund about $350 million to consumers in the Lone Star State. Regulators had ordered the refunds because of overcharging from 2003-8. Earlier this month, State Farm Lloyds was allowed to raise deductibles for homeowners' policies in the state to 1% of the insured homes value. State Insurance Commissioner Eleanor Kitzman also approved a request by the company to raise homeowners' rates by an average of 10%.
WA drivers get refund
Geico has been ordered to refund $7.5 million by the end of the year after overcharging its Washington state customers. Geico claims it was caused by a computer glitch. Drivers will receive $300 on average.
Retirees don’t agree on working longer so plans get sidetracked
Almost half of couples — 47 percent — nearing retirement don’t agree on whether or not they’ll keep working, according to a new study.
MI health insurance buyers get rebate for overcharges
An estimated 340,000 Michigan consumers who buy their own health insurance could get as much as $89 million in rebates over the next three years following a ruling Monday by federal health regulators that turned down the state's request to be exempted from new health reform requirements.
Starting in January, insurance companies selling individual plans must spend at least 80 cents of every dollar collected from monthly premiums on medical care and no more than 20 cents on salaries and administrative costs. "Today's decision is a significant defeat for the insurance lobby and one that will allow our state's consumers to rightfully keep... their hard-earned money," said Don Hazaert, director of Michigan Consumers for Healthcare.
Do not be tricked by Wall Street ad men—Hot mutual funds deliver profit to manager NOT to investors
Most objective studies of investing style prove that chasing the hottest mutual fund over and over is a loser’s game. Note the record of top stock picker, Bill Miller at Legg Mason. Miller beat the market from 1991 to 2005 on paper. However, when real investor returns are analyzed, they earned less than a market index. Today’s winner is tomorrow’s loser. Buying and selling does not beat buy and hold over the long term. Bill Miller will retire with a TON of money—1.77% of $2.7B=$47,700,000 in just the last year—but his clents earned just 7.96%. Vanguard’s 500 Index earned 11.41%. http://finance.fortune.cnn.com/2011/12/07/bill-miller-legg-mason-returns/
Smart investors don’t fall for Wall Street’s sucker bet. amazon.com/Wealth-Without-Wall-Street-Commissions/
Small business write-off 35% of worker health care costs!
If you are a small employer who pays at least half of your employee health insurance premiums, you may qualify for a tax credit of up to 35 percent of the premiums paid. An employer with fewer than 25 full-time employees who pays an average wage of less than $50,000 a year may qualify. For more information see the Small Business Health Care Tax Credit page on IRS.gov.
For more 2011 tax credits, see Publication 17 online: http://www.irs.gov/pub/irs-pdf/p17.pdf
A.M. Best Downgrades Ratings of Alfa Insurance Group and Alfa Life Insurance
SCAMS
Washington Mutual CEO wrecked the bank and got paid well. NO ACCOUNTABILITY
Largest bank failure and the officers don’t even have to pay the fine! The bank they destroyed paid for the insurance policy that paid the Feds. Actually all of us pay since insurers only raise rates to make up what they paid out. The fines are a pittance when set against the $88 million in compensation that CEO Killinger received from the bank from 2001 to 2007. Regulators will probably not prosecute the execs because they don’t have the b___s for it. Just like Countrywide and IndyMac.
LESSON: Execs are free to steal in America today.
Our “representatives” give away $ Billions to each other and friends every year. In fact, Senator Coburn (R-OK) has issued a new report, Wastebook, about giving money to China, Chimp feces study, and that “bridge to nowhere” they continue to fund. http://www.coburn.senate.gov/public/index.cfm?a=Files.Serve&File_id=b69a6ebd-7ebe-41b7-bb03-c25a5e194365
Welfare for millionaires is explaned in this study:
http://www.coburn.senate.gov/public/index.cfm/pressreleases?ContentRecord_id=f50198ef-6e15-4847-ab95-1b2bb57278c4
We now have over 150,000 mercenaries/contractors in Iraq and Afghanistan. http://www.fas.org/sgp/crs/natsec/R40764.pdf
No wonder the deficit grows every day and we can’t stop it.
Feds sue Fannie and Freddie execs—and there’s NO chance they will go to jail!
Six former top executives at Fannie Mae and Freddie Mac were sued by U.S. regulators on charges of misleading investors about the mortgage finance companies' exposure to risky home loans in the run-up to the 2008 financial crisis. Of course, we pay for the executives legal bills even though they cleaned out the bank on leaving—$10.6 million to Mudd and $18.3 million to Syron. Plus they paid Newt $1.6 million to help Congress “turn the other way.”
Let me know what you think. Editor@TheInsidersGuides.com
IAN
41 Watchung Plaza, B242
Montclair, NJ 07042
347.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available at http://dankeppel.blogspot.com/
Friday, December 23, 2011
Friday, November 11, 2011
saving $1560 on insurance
Sam saves $1560 on car, home and excess liability insurance
Sam of NY used our new Guide to save big on his insurance premium this year. He took an hour one day when he received his auto renewal to check other insurer’s rates. He was able to increase his deductibles and drop some of the duplicate coverage he was paying for in order to save on all three policies. He found that his bundled policies with one company did not save him as much as purchasing the coverage separeately. When he shopped he found that the rates were significantly lower than the coverage he had. He figured he had been losing $1560 for the last 12 year because that was when he last priced his car insurance. The home insurance carrier gave him a discount for his home since he had never made a claim. The insurers keep a record of all home claims. Sam used his savings to pay off a credit card. Sam was happy.
amazon.com/Industry-Insiders-Guides-Buying-Insurance
Women Much More Concerned Than Men with Keeping Up With Monthly Expenses MassMutual Survey says. Both men and women are concerned about saving enough for retirement – but for women, just keeping up with monthly expenses is an even bigger concern. The economy remains the big concern. Women are more likely to keep an eye on spending and finding bargains. Women are also better investors but they have less income than men. Members use our Guide for Women to Ensure Their Financial Health: amazon.com/Ensure-Your-Financial-Health-Wealth/
NY Gov orders refunds on health insurance overcharges.
11 insurance companies have been ordered to refund $114.5 million to holders of policies that cover 573,748 people who were overcharged for health insurance premiums in 2010. The refunds were overcharges on the premiums insurers are allowed to keep after claims are paid--MLR. Most of the refunds will go to members of large groups—employer-provided insurance. All major insurers were involved. For list of insurers, see Governor Andrew M. Cuomo’s website: http://www.governor.ny.gov/press/110911health
GOP lowering’ death’ tax in some states
If you live in some states, you need to make provision for estate and inheritance taxes. Or you can change legal residence and pay nothing. Since some tax is due on assets as low as $675,000, owning an average value home may trip the tax buzzer. In some states, GOP lawmakers have raised the threshold so more citizens pass free of tax. In most states, how you own assets can make a difference. In other states, you may not have to worry at all—the wealthy have already fixed NO death tax and NO inheritance tax. The federal exemption is $5 million but states are changing theirs. Check your state. We help you plan your retirement so that there is enough fulfill your wishes: amazon.com/Your-Retirement-Spending-Plan-enough/
Obama and GOP agree—raise taxes slowly by reducing CPI increases
Congress is looking at reducing future raises by adopting a new measure of inflation that also would increase taxes for most families -- the biggest impact falling on those with low incomes. If adopted across the government, the inflation measure would have widespread ramifications. Future increases in veterans' benefits and pensions for federal workers and military personnel would be smaller. And over time, fewer people would qualify for Medicaid, Head Start, food stamps, school lunch programs and home heating assistance than under the current measure.
Taxes would go up by $60 billion over the next decade because annual adjustments to the tax brackets would be smaller, resulting in more people jumping into higher tax brackets because their wages rose faster than the new inflation measure. Annual increases in the standard deduction and personal exemptions would become smaller.
Washington assumes that we are stupid and will not notice this change to Chained Consumer Price Index: http://finance.yahoo.com/news/New-formula-would-reduce-apf-365864943.html?x=0
Time will tell if Cain sex beats Chained CPI on our media coverage.
ObamaCare’s mandate upheld by district court
A panel of the U.S. Court of Appeals for the District of Columbia issued a split opinion upholding the lower court's ruling that found Congress did not overstep its authority in requiring people to have insurance or pay a penalty on their taxes, beginning in 2014. The requirement is the most controversial requirement of Obama's signature domestic legislative achievement and the focus of conflicting opinions from judges across the country. The Supreme Court could decide as early as Thursday during a closed meeting of the justices whether to accept appeals from some of those earlier rulings. Our future health care lies in the hands of 5 guys who have fully paid policies. http://usconservatives.about.com/od/capitalpunishment/tp/Top_Conservative_Justices.htm
SCAMS
Romney plan to change your benefits
The former Massachusetts governor said he would lower the cost of Social Security by raising the eligibility age for benefits, but he did not specify how quickly those changes would be phased in. He estimated that he could achieve tens of billions of dollars in savings by capping the cost of Medicaid, the federal program that provides medical care to the poor, and allowing the states to take it over — a move his campaign said would "empower them to innovate."
In one of the most controversial elements of his plan, Romney proposed a major restructuring of Medicare, which currently provides health insurance to about 47 million elderly and disabled people. Under the changes, Medicare would become just one of many plans that seniors could purchase with a new "premium support" system that would give them a set amount of money each year to purchase a plan.
Aides said the plans would have to offer a level of coverage comparable to the benefits offered under the current Medicare system. They asserted that by encouraging a range of private insurers to compete with Medicare, which could begin running a deficit as early as 2024, the program's costs could be lowered.
GOP plan: less SS benefits from your contributions, kick the poor off Medicaid, and give you a voucher to buy your own old age insurance, if you can find an insurer when you are old and sick. We will need a lot of luck!
We, Taxpayers are helping the wealthy buy bigger McMansions!!
“It's not the intent of the FHA to facilitate people buying McMansions,” said Representative Scott Garrett, a New Jersey Republican opposed to higher loan limits. “The intent is to help the average American buy the average house.” Congress is weighing a proposal to restore higher loan limits that expired on Oct. 1. The measure, already adopted by the Senate, would allow the FHA and government-controlled Fannie Mae and Freddie Mac to insure single-family mortgages for as much as $729,750, up from the current $625,500, in high-cost parts of the country. Banks and realtors are lobbying hard to stop Congress from cutting off taxpayer support.
“I wish I had done more”—famous last words
Paterno is not a target of the criminal investigation, but the state police commissioner called his failure to contact police himself a lapse in "moral responsibility." "This is a tragedy," Paterno said. "It is one of the great sorrows of my life. With the benefit of hindsight, I wish I had done more."
IAN
41 Watchung Plaza, B242
Montclair, NJ 07042
347.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available at http://dankeppel.blogspot.com/
Sam of NY used our new Guide to save big on his insurance premium this year. He took an hour one day when he received his auto renewal to check other insurer’s rates. He was able to increase his deductibles and drop some of the duplicate coverage he was paying for in order to save on all three policies. He found that his bundled policies with one company did not save him as much as purchasing the coverage separeately. When he shopped he found that the rates were significantly lower than the coverage he had. He figured he had been losing $1560 for the last 12 year because that was when he last priced his car insurance. The home insurance carrier gave him a discount for his home since he had never made a claim. The insurers keep a record of all home claims. Sam used his savings to pay off a credit card. Sam was happy.
amazon.com/Industry-Insiders-Guides-Buying-Insurance
Women Much More Concerned Than Men with Keeping Up With Monthly Expenses MassMutual Survey says. Both men and women are concerned about saving enough for retirement – but for women, just keeping up with monthly expenses is an even bigger concern. The economy remains the big concern. Women are more likely to keep an eye on spending and finding bargains. Women are also better investors but they have less income than men. Members use our Guide for Women to Ensure Their Financial Health: amazon.com/Ensure-Your-Financial-Health-Wealth/
NY Gov orders refunds on health insurance overcharges.
11 insurance companies have been ordered to refund $114.5 million to holders of policies that cover 573,748 people who were overcharged for health insurance premiums in 2010. The refunds were overcharges on the premiums insurers are allowed to keep after claims are paid--MLR. Most of the refunds will go to members of large groups—employer-provided insurance. All major insurers were involved. For list of insurers, see Governor Andrew M. Cuomo’s website: http://www.governor.ny.gov/press/110911health
GOP lowering’ death’ tax in some states
If you live in some states, you need to make provision for estate and inheritance taxes. Or you can change legal residence and pay nothing. Since some tax is due on assets as low as $675,000, owning an average value home may trip the tax buzzer. In some states, GOP lawmakers have raised the threshold so more citizens pass free of tax. In most states, how you own assets can make a difference. In other states, you may not have to worry at all—the wealthy have already fixed NO death tax and NO inheritance tax. The federal exemption is $5 million but states are changing theirs. Check your state. We help you plan your retirement so that there is enough fulfill your wishes: amazon.com/Your-Retirement-Spending-Plan-enough/
Obama and GOP agree—raise taxes slowly by reducing CPI increases
Congress is looking at reducing future raises by adopting a new measure of inflation that also would increase taxes for most families -- the biggest impact falling on those with low incomes. If adopted across the government, the inflation measure would have widespread ramifications. Future increases in veterans' benefits and pensions for federal workers and military personnel would be smaller. And over time, fewer people would qualify for Medicaid, Head Start, food stamps, school lunch programs and home heating assistance than under the current measure.
Taxes would go up by $60 billion over the next decade because annual adjustments to the tax brackets would be smaller, resulting in more people jumping into higher tax brackets because their wages rose faster than the new inflation measure. Annual increases in the standard deduction and personal exemptions would become smaller.
Washington assumes that we are stupid and will not notice this change to Chained Consumer Price Index: http://finance.yahoo.com/news/New-formula-would-reduce-apf-365864943.html?x=0
Time will tell if Cain sex beats Chained CPI on our media coverage.
ObamaCare’s mandate upheld by district court
A panel of the U.S. Court of Appeals for the District of Columbia issued a split opinion upholding the lower court's ruling that found Congress did not overstep its authority in requiring people to have insurance or pay a penalty on their taxes, beginning in 2014. The requirement is the most controversial requirement of Obama's signature domestic legislative achievement and the focus of conflicting opinions from judges across the country. The Supreme Court could decide as early as Thursday during a closed meeting of the justices whether to accept appeals from some of those earlier rulings. Our future health care lies in the hands of 5 guys who have fully paid policies. http://usconservatives.about.com/od/capitalpunishment/tp/Top_Conservative_Justices.htm
SCAMS
Romney plan to change your benefits
The former Massachusetts governor said he would lower the cost of Social Security by raising the eligibility age for benefits, but he did not specify how quickly those changes would be phased in. He estimated that he could achieve tens of billions of dollars in savings by capping the cost of Medicaid, the federal program that provides medical care to the poor, and allowing the states to take it over — a move his campaign said would "empower them to innovate."
In one of the most controversial elements of his plan, Romney proposed a major restructuring of Medicare, which currently provides health insurance to about 47 million elderly and disabled people. Under the changes, Medicare would become just one of many plans that seniors could purchase with a new "premium support" system that would give them a set amount of money each year to purchase a plan.
Aides said the plans would have to offer a level of coverage comparable to the benefits offered under the current Medicare system. They asserted that by encouraging a range of private insurers to compete with Medicare, which could begin running a deficit as early as 2024, the program's costs could be lowered.
GOP plan: less SS benefits from your contributions, kick the poor off Medicaid, and give you a voucher to buy your own old age insurance, if you can find an insurer when you are old and sick. We will need a lot of luck!
We, Taxpayers are helping the wealthy buy bigger McMansions!!
“It's not the intent of the FHA to facilitate people buying McMansions,” said Representative Scott Garrett, a New Jersey Republican opposed to higher loan limits. “The intent is to help the average American buy the average house.” Congress is weighing a proposal to restore higher loan limits that expired on Oct. 1. The measure, already adopted by the Senate, would allow the FHA and government-controlled Fannie Mae and Freddie Mac to insure single-family mortgages for as much as $729,750, up from the current $625,500, in high-cost parts of the country. Banks and realtors are lobbying hard to stop Congress from cutting off taxpayer support.
“I wish I had done more”—famous last words
Paterno is not a target of the criminal investigation, but the state police commissioner called his failure to contact police himself a lapse in "moral responsibility." "This is a tragedy," Paterno said. "It is one of the great sorrows of my life. With the benefit of hindsight, I wish I had done more."
IAN
41 Watchung Plaza, B242
Montclair, NJ 07042
347.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available at http://dankeppel.blogspot.com/
Friday, October 28, 2011
Graduates could reduce loan payment to $0
Your student loan payment could be $0 zero per month
Income-Based Repayment program provides repayment relief for up to 1.6 million current students, including a lower monthly payment cap and loan forgiveness after 20 rather than 25 years of responsible payments. IBR has already helped nearly half a million borrowers lower their payments and avoid default, but many more borrowers are struggling to keep up with their payments in these tough economic times and could benefit from IBR and the proposed Pay-as-You-Earn option. Generally, lower income borrowers pay 10% of their income: www.IBRinfo.org.
Most expensive college: Bates, ME Tuition: $51,300 a year!
Public university: Penn State Tuition: $14,416
This does not count living and book expenses.
Perhaps learning auto repair is not a bad alternative.
Pension funds’ values falling—workers getting out now
How bad is the cash crunch for companies? The aggregate deficit of pension plans among S&P 1500 companies climbed by $134 billion in September to $512 billion, according to Mercer. The funded status of the 100 largest corporate pensions dropped by $124 billion during September, according to Milliman, an actuarial and accounting firm. Looking at it another way, the funded ratio of companies in the index slipped to less than 73 percent from almost 80 percent at the end of August. The situation is deteriorating rapidly: The decline in the last quarter was the most significant three-month drop since the start of the financial crisis at the end of 2008, Milliman says. In a recent survey of Americans not yet retired, 40 percent said they currently save no money each month toward retirement. Members run their own: amazon.com/New-American-Retirement-System-Tax-FREE
Labor Department investigates brokers, reps, advisers in payola probe
The Consultant/Adviser Project has netted a number of wins for the Labor Department.
Last year, Metropolitan Life Insurance Co. agreed to pay $13.5 million in conjunction with a joint investigation by the DOL, the FBI and the Internal Revenue Service. That probe revealed that the insurer made improper payments to an insurance brokerage firm in order to steer clients toward buying MetLife group insurance products, according to authorities' announcement of the settlement. The payments weren't disclosed to plan administrators and were described as “communication fees” or “request-for-proposal fees,” lumped into the rates MetLife had charged the insured, according to federal authorities.
Credit union supported by anti-Wall Street broker after investment bank pulls out
Frank Congemi, a Queens-based freewheeling critic of Wall Street bankers and Washington regulators, has agreed to pay $5,000 to sponsor a Nov. 3 dinner hosted by the Lower East Side People's Federal Credit Union. Goldman Sachs had agreed to be one of four top sponsors for the dinner but withdrew its pledge this month after invitations to the dinner stated that the honorees included Occupy Wall Street, according to a story in The Wall Street Journal last weekend. Capital One pulled out also.
State local governments (GOP) raising taxes despite pledge
There have been a total of 548 U.S. sales tax changes so far this year. Indiana, Mississippi, New Jersey, Rhode Island and Tennessee tied for the highest state sales tax rate, at 7%, compared to the average state sales tax rate of 5.48%. However, this only represents the state-designated portion of the sales tax, not the total combined state, county and city rate. California used to have the highest state sales taxes, but it lowered its sales tax rate as of July 1. The highest combined city, state and county rate was in Arizona: Tuba City, Ariz., (part of the Navajo Nation), at 13.725%, followed by Kayenta, Ariz., at 12.1%; Fredonia, Ariz., at 11.725%; and Coconino County, Ariz., at 11.725%.
Consumer Reports Names Most Reliable Cars of 2011
At the bottom are the most expensive: Jaguar, Porsche, and Audi are at the bottom among brands for which we have sufficient data. You DO NOT get what you pay for.
Japanese brands dominate our survey's upper echelons and took the top nine spots. They were led by Scion, Lexus, Acura, Mazda, Honda, and Toyota. Many hybrids are proving extremely reliable. The top two models in our survey are the Lexus CT 200h and Honda CR-Z. The Toyota Prius was among the top models, rebounding from brake problems that plagued the current design. Family sedans hold up well overall and are led by the Ford Fusion Hybrid. All of the models for which we have data have at least average reliability. In contrast, only one minivan makes that cut: The front-wheel-drive Toyota Sienna is average. Heavy-duty, three-quarter-ton pickups are among the most problematic vehicles. With the exception of the turbodiesel Ford F-250, they all scored below average.
The Ford brand fell 10 spots, to 20th out of 28. The Explorer, Fiesta, and Focus — had below-average reliability in their first year. CR found that new or revamped models have more problems in their first year than in subsequent model years. Ford's problems underscore our advice to hold off buying a new car in its first year.
Auto insurers’ ratings—how did your company do?
Auto-Owners Insurance, State Farm, Amica Mutual, American Family and The Hartford score above industry average in the 2011 survey of claims performance by JD Power
GOP to keep needy off Medicaid
The House voted to restrict eligibility for Medicaid, insurance exchanges and other aspects of President Obama's healthcare reform legislation. The Congressional Budget Office has said as many as 1 million people could be affected by the restrictions, which, among other things, would include Social Security benefits as income in determining eligibility.
SCAMS
Citibank caught screwing its customers! No jail time for bankers . . .
Citigroup Inc. has agreed to pay $285 million to settle federal allegations that its broker-dealer subsidiary misled investors about a complex $1 billion mortgage investment that the company was secretly betting would fail. The investment, which was tied to the U.S. housing market, defaulted in November 2007 and left investors with a worthless investment, while Citigroup made $160 million in fees and trading profits earned through a $500 million short position in the specific group of assets that it had selected for the underlying investment. No Citi employees have been charged with a crime however.
Flat tax always helps the wealthy
Under Herman Cain's 9-9-9 tax reform plan, 84% of U.S. households would pay more than they do under current tax policies, according to a report released Tuesday by a nonpartisan research group. National sales tax of 9% is added to state sales tax. Wealthy live on capital gains of stocks and muni bonds so taxed at about 17%--no income, SS or Medicare taxes. The 999 plan has 0% tax on investment income. Wells Fargo broker hatched the 999 plan “riding in a taxicab in Nashville.”
Cain tweaks 9-9-9 tax plan to allow exemptions for biz
Cain proposed no income taxes for Americans living below the poverty line. He also proposed exemptions for businesses investing in "opportunity zones" as a way to give an economic jolt to rundown neighborhoods. Cain would eliminate minimum wage laws, building codes and zoning and regulations that hurt the economy. He initially said he would negotiate for the release of U.S. prisoners from terrorists, then reversed himself. He was for a woman’s choice but against abortion.
He insisted he had not changed positions, though.
IAN
41 Watchung Plaza, B242
Montclair, NJ 07042
347.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available at http://dankeppel.blogspot.com/
Income-Based Repayment program provides repayment relief for up to 1.6 million current students, including a lower monthly payment cap and loan forgiveness after 20 rather than 25 years of responsible payments. IBR has already helped nearly half a million borrowers lower their payments and avoid default, but many more borrowers are struggling to keep up with their payments in these tough economic times and could benefit from IBR and the proposed Pay-as-You-Earn option. Generally, lower income borrowers pay 10% of their income: www.IBRinfo.org.
Most expensive college: Bates, ME Tuition: $51,300 a year!
Public university: Penn State Tuition: $14,416
This does not count living and book expenses.
Perhaps learning auto repair is not a bad alternative.
Pension funds’ values falling—workers getting out now
How bad is the cash crunch for companies? The aggregate deficit of pension plans among S&P 1500 companies climbed by $134 billion in September to $512 billion, according to Mercer. The funded status of the 100 largest corporate pensions dropped by $124 billion during September, according to Milliman, an actuarial and accounting firm. Looking at it another way, the funded ratio of companies in the index slipped to less than 73 percent from almost 80 percent at the end of August. The situation is deteriorating rapidly: The decline in the last quarter was the most significant three-month drop since the start of the financial crisis at the end of 2008, Milliman says. In a recent survey of Americans not yet retired, 40 percent said they currently save no money each month toward retirement. Members run their own: amazon.com/New-American-Retirement-System-Tax-FREE
Labor Department investigates brokers, reps, advisers in payola probe
The Consultant/Adviser Project has netted a number of wins for the Labor Department.
Last year, Metropolitan Life Insurance Co. agreed to pay $13.5 million in conjunction with a joint investigation by the DOL, the FBI and the Internal Revenue Service. That probe revealed that the insurer made improper payments to an insurance brokerage firm in order to steer clients toward buying MetLife group insurance products, according to authorities' announcement of the settlement. The payments weren't disclosed to plan administrators and were described as “communication fees” or “request-for-proposal fees,” lumped into the rates MetLife had charged the insured, according to federal authorities.
Credit union supported by anti-Wall Street broker after investment bank pulls out
Frank Congemi, a Queens-based freewheeling critic of Wall Street bankers and Washington regulators, has agreed to pay $5,000 to sponsor a Nov. 3 dinner hosted by the Lower East Side People's Federal Credit Union. Goldman Sachs had agreed to be one of four top sponsors for the dinner but withdrew its pledge this month after invitations to the dinner stated that the honorees included Occupy Wall Street, according to a story in The Wall Street Journal last weekend. Capital One pulled out also.
State local governments (GOP) raising taxes despite pledge
There have been a total of 548 U.S. sales tax changes so far this year. Indiana, Mississippi, New Jersey, Rhode Island and Tennessee tied for the highest state sales tax rate, at 7%, compared to the average state sales tax rate of 5.48%. However, this only represents the state-designated portion of the sales tax, not the total combined state, county and city rate. California used to have the highest state sales taxes, but it lowered its sales tax rate as of July 1. The highest combined city, state and county rate was in Arizona: Tuba City, Ariz., (part of the Navajo Nation), at 13.725%, followed by Kayenta, Ariz., at 12.1%; Fredonia, Ariz., at 11.725%; and Coconino County, Ariz., at 11.725%.
Consumer Reports Names Most Reliable Cars of 2011
At the bottom are the most expensive: Jaguar, Porsche, and Audi are at the bottom among brands for which we have sufficient data. You DO NOT get what you pay for.
Japanese brands dominate our survey's upper echelons and took the top nine spots. They were led by Scion, Lexus, Acura, Mazda, Honda, and Toyota. Many hybrids are proving extremely reliable. The top two models in our survey are the Lexus CT 200h and Honda CR-Z. The Toyota Prius was among the top models, rebounding from brake problems that plagued the current design. Family sedans hold up well overall and are led by the Ford Fusion Hybrid. All of the models for which we have data have at least average reliability. In contrast, only one minivan makes that cut: The front-wheel-drive Toyota Sienna is average. Heavy-duty, three-quarter-ton pickups are among the most problematic vehicles. With the exception of the turbodiesel Ford F-250, they all scored below average.
The Ford brand fell 10 spots, to 20th out of 28. The Explorer, Fiesta, and Focus — had below-average reliability in their first year. CR found that new or revamped models have more problems in their first year than in subsequent model years. Ford's problems underscore our advice to hold off buying a new car in its first year.
Auto insurers’ ratings—how did your company do?
Auto-Owners Insurance, State Farm, Amica Mutual, American Family and The Hartford score above industry average in the 2011 survey of claims performance by JD Power
GOP to keep needy off Medicaid
The House voted to restrict eligibility for Medicaid, insurance exchanges and other aspects of President Obama's healthcare reform legislation. The Congressional Budget Office has said as many as 1 million people could be affected by the restrictions, which, among other things, would include Social Security benefits as income in determining eligibility.
SCAMS
Citibank caught screwing its customers! No jail time for bankers . . .
Citigroup Inc. has agreed to pay $285 million to settle federal allegations that its broker-dealer subsidiary misled investors about a complex $1 billion mortgage investment that the company was secretly betting would fail. The investment, which was tied to the U.S. housing market, defaulted in November 2007 and left investors with a worthless investment, while Citigroup made $160 million in fees and trading profits earned through a $500 million short position in the specific group of assets that it had selected for the underlying investment. No Citi employees have been charged with a crime however.
Flat tax always helps the wealthy
Under Herman Cain's 9-9-9 tax reform plan, 84% of U.S. households would pay more than they do under current tax policies, according to a report released Tuesday by a nonpartisan research group. National sales tax of 9% is added to state sales tax. Wealthy live on capital gains of stocks and muni bonds so taxed at about 17%--no income, SS or Medicare taxes. The 999 plan has 0% tax on investment income. Wells Fargo broker hatched the 999 plan “riding in a taxicab in Nashville.”
Cain tweaks 9-9-9 tax plan to allow exemptions for biz
Cain proposed no income taxes for Americans living below the poverty line. He also proposed exemptions for businesses investing in "opportunity zones" as a way to give an economic jolt to rundown neighborhoods. Cain would eliminate minimum wage laws, building codes and zoning and regulations that hurt the economy. He initially said he would negotiate for the release of U.S. prisoners from terrorists, then reversed himself. He was for a woman’s choice but against abortion.
He insisted he had not changed positions, though.
IAN
41 Watchung Plaza, B242
Montclair, NJ 07042
347.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available at http://dankeppel.blogspot.com/
Friday, October 21, 2011
Snoring is the best way to create wealth
Did you know ‘Snoring’ is the best way to create wealth?
Master investor Warren Buffett told us that holding quality company stocks, NOT actively trading stocks, was the way he adds wealth for his company. Wall Street’s advice is the opposite: buy and sell continuously. Studies show broker recommendations fail. Buffett says: “Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees.... Paradoxically, when ‘dumb’ money acknowledges its limitations, it ceases to be dumb.”
http://www.amazon.com/Snoring-Best-Way-Create-Wealth/dp/1466408928/ref=sr_1_3?s=books&ie=UTF8&qid=1318961268&sr=1-3
Auto rates vary a lot for the same driver. Shopping pays!
For instance, in New Jersey the same two-driver household was charged $3,600 by GE but only $1,400 by Amica, AIG, and USAA. The $2,200 annual difference is worth over $42,000 to you over 10 years when invested. Use our Insiders’ tricks of the trade to save: amazon.com/Insiders-Guides-Discount-Financial-Services/
Health insurance refund?!
Blue Shield of California will return approximately $295 million to its customers and the community by December 31, 2011. In fulfillment of its pledge to limit net income to 2 percent of revenue, Blue Shield's individual and fully insured group customers will each get a 54 percent credit against one month of premium.
Long Term Care insurance coverage uncertain for the future
The long-term care (LTC) insurance market continues to be plagued by adverse claims experience and poor overall results, which has led to rate instability, insurer solvency concerns, and market exits by several major insurers, according to Fitch Ratings in a new report. Members self-insure with their own Wealth Reserve: amazon.com/Your-Retirement-Spending-Plan-enough/
Time to move your untaxed money to Asia?
A Swiss parliamentary commission is edging toward accepting a government proposal that would allow the transfer of bank clients' data to the United States to settle a tax evasion dispute, Swiss news agency SDA reported. Another reason for the OWS protesters to be angry—the 1% don’t pay their fair share! They hide their money in Swiss and Caribbean banks and holding companies. http://www.offshorecompany.com/banking/how-to-start-a-bank
Are you part of the 99%?
To be among the top 1% of income earners, you need an adjusted gross income of $343,927 or more. The 1.4 million Americans with this elite status reported 16.9% of all the country’s taxable income. One percent of taxpayers reported almost 17% of all taxable income. But that same tiny group also kicked in 37% of all the taxes paid. How much do you need to make to be in the top 50% of earners? Just $32,396. Members use their tax-FREE Wealth Reserve to avoid income tax in retirement: amazon.com/Create-Your-Tax-FREE-Financial-System/
Insurers improve quality of plans under new Obama guidelines
Nine Medicare Advantage plans scored top marks on the five-star government rating system for 2012, up from only three plans this year. These plans may you’re you save: http://www.kaiserhealthnews.org/Stories/2011/October/12/insurers-improve-quality-revenue.aspx Kiplinger helps you compare plans: http://kiplinger.com/columns/ask/archive/how-to-compare-medicare-advantage-plans.html
Only 3 in 10 Say They're Prepared for Retirement
A new study says that most families are not prepared for retirement. Most have committed to paying for other things like a child’s education. Most have not adjusted to the new American economy—workers have no guaranteed pension, medial or even 401k matching funds. Many say they will work part-time in retirement. But that assumes there will be jobs and the next generation will not work them. Members are changing their priorities with the New American Retirement System: amazon.com/New-American-Retirement-System-Tax-FREE
Los Angeles decides to stop doing business with 'bad' banks
LA Council members in the nation's second-largest city by population passed a resolution Oct. 12 in support of the demonstrations that started as Occupy Wall Street in New York. It will cost LA millions to switch banks from the ones that have pleaded guilty to fraud. “Many of the banks we're targeting have pleaded guilty to fraud,” Councilman Alarcon said. “There are an ample number of other institutions that acted legally who can do these transactions. The Occupy L.A. movement has put this issue front and center.” Los Angeles in 2008 sued more than 30 institutions it accused of engaging in abuse related to financial derivatives and bid-rigging, administrator Santana said. Council approved a list of banks for LA to do business with earlier.
SCAM
Generals in Afgan war say it will go on for years--$2 Billion and 5 American lives a week! “But what you're saying is that the United States isn't leaving Afghanistan in the foreseeable future?” cbsnews.com/stories/2011/10/16/60minutes/main20120799.shtml
This war has cost $½ Trillion so far. We had a $1.3 trillion budget deficit this year.
GOP against tax hike on foreign insurers too
Two Dems have written legislation that would raise taxes on foreign-based insurance and reinsurance companies operating within the United States. GOP objects, of course.
GOP to cut IRS collections by $4 billion
if Congress follows through on a plan to cut about $500 million from the agency's budget for fiscal 2012, it estimates the revenue loss at $4 billion for this year. Corporate audits are more complicated and require more auditors not less.
Here we go again—using our money to speculate!
Bank of America, hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to the bank subsidiary flush with insured deposits, according to people with direct knowledge of the situation. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting.
The Moody's downgrade spurred some of Merrill's bank partners to ask that contracts be moved to the retail unit, which has a higher credit rating. Transferring derivatives also can help the parent company minimize the collateral it must post on contracts and the potential costs to terminate trades after Moody's decision, said a person familiar with the matter. BOA held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. Derivatives have been removed from the books. This allowed Merrill Lynch fee-based revenue to reach record highs this period.
Congress passed the Dodd-Frank to stop this kind of game but the Fed gave BOA an exemption in Sept 2010.
IAN
41 Watchung Plaza, B242
Montclair, NJ 07042
347.746.2014
Alerts available at http://dankeppel.blogspot.com/
Master investor Warren Buffett told us that holding quality company stocks, NOT actively trading stocks, was the way he adds wealth for his company. Wall Street’s advice is the opposite: buy and sell continuously. Studies show broker recommendations fail. Buffett says: “Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees.... Paradoxically, when ‘dumb’ money acknowledges its limitations, it ceases to be dumb.”
http://www.amazon.com/Snoring-Best-Way-Create-Wealth/dp/1466408928/ref=sr_1_3?s=books&ie=UTF8&qid=1318961268&sr=1-3
Auto rates vary a lot for the same driver. Shopping pays!
For instance, in New Jersey the same two-driver household was charged $3,600 by GE but only $1,400 by Amica, AIG, and USAA. The $2,200 annual difference is worth over $42,000 to you over 10 years when invested. Use our Insiders’ tricks of the trade to save: amazon.com/Insiders-Guides-Discount-Financial-Services/
Health insurance refund?!
Blue Shield of California will return approximately $295 million to its customers and the community by December 31, 2011. In fulfillment of its pledge to limit net income to 2 percent of revenue, Blue Shield's individual and fully insured group customers will each get a 54 percent credit against one month of premium.
Long Term Care insurance coverage uncertain for the future
The long-term care (LTC) insurance market continues to be plagued by adverse claims experience and poor overall results, which has led to rate instability, insurer solvency concerns, and market exits by several major insurers, according to Fitch Ratings in a new report. Members self-insure with their own Wealth Reserve: amazon.com/Your-Retirement-Spending-Plan-enough/
Time to move your untaxed money to Asia?
A Swiss parliamentary commission is edging toward accepting a government proposal that would allow the transfer of bank clients' data to the United States to settle a tax evasion dispute, Swiss news agency SDA reported. Another reason for the OWS protesters to be angry—the 1% don’t pay their fair share! They hide their money in Swiss and Caribbean banks and holding companies. http://www.offshorecompany.com/banking/how-to-start-a-bank
Are you part of the 99%?
To be among the top 1% of income earners, you need an adjusted gross income of $343,927 or more. The 1.4 million Americans with this elite status reported 16.9% of all the country’s taxable income. One percent of taxpayers reported almost 17% of all taxable income. But that same tiny group also kicked in 37% of all the taxes paid. How much do you need to make to be in the top 50% of earners? Just $32,396. Members use their tax-FREE Wealth Reserve to avoid income tax in retirement: amazon.com/Create-Your-Tax-FREE-Financial-System/
Insurers improve quality of plans under new Obama guidelines
Nine Medicare Advantage plans scored top marks on the five-star government rating system for 2012, up from only three plans this year. These plans may you’re you save: http://www.kaiserhealthnews.org/Stories/2011/October/12/insurers-improve-quality-revenue.aspx Kiplinger helps you compare plans: http://kiplinger.com/columns/ask/archive/how-to-compare-medicare-advantage-plans.html
Only 3 in 10 Say They're Prepared for Retirement
A new study says that most families are not prepared for retirement. Most have committed to paying for other things like a child’s education. Most have not adjusted to the new American economy—workers have no guaranteed pension, medial or even 401k matching funds. Many say they will work part-time in retirement. But that assumes there will be jobs and the next generation will not work them. Members are changing their priorities with the New American Retirement System: amazon.com/New-American-Retirement-System-Tax-FREE
Los Angeles decides to stop doing business with 'bad' banks
LA Council members in the nation's second-largest city by population passed a resolution Oct. 12 in support of the demonstrations that started as Occupy Wall Street in New York. It will cost LA millions to switch banks from the ones that have pleaded guilty to fraud. “Many of the banks we're targeting have pleaded guilty to fraud,” Councilman Alarcon said. “There are an ample number of other institutions that acted legally who can do these transactions. The Occupy L.A. movement has put this issue front and center.” Los Angeles in 2008 sued more than 30 institutions it accused of engaging in abuse related to financial derivatives and bid-rigging, administrator Santana said. Council approved a list of banks for LA to do business with earlier.
SCAM
Generals in Afgan war say it will go on for years--$2 Billion and 5 American lives a week! “But what you're saying is that the United States isn't leaving Afghanistan in the foreseeable future?” cbsnews.com/stories/2011/10/16/60minutes/main20120799.shtml
This war has cost $½ Trillion so far. We had a $1.3 trillion budget deficit this year.
GOP against tax hike on foreign insurers too
Two Dems have written legislation that would raise taxes on foreign-based insurance and reinsurance companies operating within the United States. GOP objects, of course.
GOP to cut IRS collections by $4 billion
if Congress follows through on a plan to cut about $500 million from the agency's budget for fiscal 2012, it estimates the revenue loss at $4 billion for this year. Corporate audits are more complicated and require more auditors not less.
Here we go again—using our money to speculate!
Bank of America, hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to the bank subsidiary flush with insured deposits, according to people with direct knowledge of the situation. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting.
The Moody's downgrade spurred some of Merrill's bank partners to ask that contracts be moved to the retail unit, which has a higher credit rating. Transferring derivatives also can help the parent company minimize the collateral it must post on contracts and the potential costs to terminate trades after Moody's decision, said a person familiar with the matter. BOA held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. Derivatives have been removed from the books. This allowed Merrill Lynch fee-based revenue to reach record highs this period.
Congress passed the Dodd-Frank to stop this kind of game but the Fed gave BOA an exemption in Sept 2010.
IAN
41 Watchung Plaza, B242
Montclair, NJ 07042
347.746.2014
Alerts available at http://dankeppel.blogspot.com/
Thursday, July 2, 2009
Wealth Without Wall Street
Wealth Without Wall Street
“Wall Street's world turned upside down”
These were the headlines in 2009.
Wall Street financial management has proven itself worthless. Bill Gross was right. “Professional money management is a gigantic rip-off.” Only 2 advisors provided their clients with the correct advice about the total collapse of the market in 2008-9. In one year, most money management clients have seen their accounts plunge 40%, 50% even 70%. No advisor has fired him/herself. No advisor has returned their advisory fees and commissions. In fact, most advisors hid from their clients during the worst of the storm, as acknowledged by Fidelity executives in May 2009.
The naked truth—YOU must build wealth without Wall Street.
What to do?
Look at Wall Street “turned upside down.”
First, when money managers buy and sell securities in their mutual and hedge funds, they are trying to predict the future of the market. There is no proof this can be done over time. Yesterday’s winners are usually tomorrow’s losers. The AVERAGE market return has been 12%, so a few managers will beat the average by luck—Just not the same ones every year. www.Ifa.com/12steps/Step3/Step3Page2.asp#333
Second, you must pay the costs of the manager, her/his marketing group and operations, whether or not s/he makes you a dime. It is always better to pay as little as possible for the same performance over the long term. Costs can take up to 33% of your returns, over time. Investors averaged only 2.57% annually from 1984 through 2002 despite buying the ‘winners’ at the top. www.DALBARinc.com
Third, managers are paid for increasing “ASSETS under management,” not for making you rich. Bringing in more assets is a full-time job. It is expensive to market the funds given that there are now thousands available. It is inevitable that popular funds will grow until they produce average returns with high expenses. Managers want to be rich, not right. It takes luck to pick successful stocks. You do not benefit from economies of scale. As assets grow, fees do NOT shrink.
Fourth, there is much less chance of you being treated poorly by fund management if the structure and governance are customer-oriented like Vanguard’s and TIAA-CREF’s are.
Fifth, many professional managers and Wall Street “insiders” place their core assets in index funds. As bond guru, Bill Gross, said, “professional money management is a gigantic rip-off.”
Sixth, since no manager can consistently beat the market, a mutual fund or hedge fund for that matter, must be evaluated as a commodity. Commodities are usually judged on price. As Benjamin Graham, legendary value investor, said, “Investors should purchase stocks like they purchase groceries—not like they purchase perfume.” Actually, all financial services should be purchased this way—insurance, mortgage, credit, banking.
Seventh, due to changes in access and technology, some manufacturers of financial services and products have decided to enhance their direct to customer channel. Even though Vanguard funds have not been sold by personal selling, it has grown to rival most fund complexes. Discount brokers are now considered to have better customer service than brokerage firm services, according to Consumer Reports. Even though Progressive Insurance is sold by agents, their success in the direct channel has been impressive.
Eighth, Wall Street cannot reduce the risk of investing. Most individual investors have lost 30% to 50% of their life savings in the last Wall Street bubble. Many investors now realize that Wall Street is selling snake oil. Even the promise of diversification has left many realizing that “experts” can’t control risk.
Ninth, Wall Street used to control price—raising the price of investing to grow revenue directly lowers investor returns. The advisor or fund with the highest price does NOT guarantee success: only expenses to investors.
Investors can now control the price. We can use low-cost mutual funds and brokers. Since Wall Street cannot predict the markets and we don’t know if stocks will outperform all other assets over time, we must take the Pascal wager:
Pascal’s wager: The consequences of not being in the markets are worse than being in it for the long haul. Buying the market returns at the lowest price is the best solution for long-term wealth-building. You are better off without “professional” advice.
Example: Member Ron Delaney of New York will gain $400,000 because he asked about his 401k plan. Mutual fund fees are the largest source of overcharges—$400,000—over time. Ron did not believe pension costs were as high as we said. He asked his HR person about the costs of his 401K plan. He received a packet of materials. Finally, he calculated that his annual expenses were 2.1% and his annual fee was $50. His plan offered index funds for just 0.70%. He picked which funds he needed after reading our FREE Guide*. Ron saved $2,800 ($4200-$1400) every year. By the time Ron retires, he may have added an extra $400,000 to his 401k.
Your choice is clear—avoid Wall Street. Their “advice” is just marketing hype. Their research exists to sell their products. Take the advice of unbiased advisors like master investor Warren Buffett,
By periodically investing in an index fund, for example, the know-
nothing investor can actually out-perform most investment
professionals. Paradoxically, when "dumb" money acknowledges its
limitations, it ceases to be dumb. http://www.berkshirehathaway.com/letters/1993.html
* http://www.theinsidersguides.com/index.html
“Wall Street's world turned upside down”
These were the headlines in 2009.
Wall Street financial management has proven itself worthless. Bill Gross was right. “Professional money management is a gigantic rip-off.” Only 2 advisors provided their clients with the correct advice about the total collapse of the market in 2008-9. In one year, most money management clients have seen their accounts plunge 40%, 50% even 70%. No advisor has fired him/herself. No advisor has returned their advisory fees and commissions. In fact, most advisors hid from their clients during the worst of the storm, as acknowledged by Fidelity executives in May 2009.
The naked truth—YOU must build wealth without Wall Street.
What to do?
Look at Wall Street “turned upside down.”
First, when money managers buy and sell securities in their mutual and hedge funds, they are trying to predict the future of the market. There is no proof this can be done over time. Yesterday’s winners are usually tomorrow’s losers. The AVERAGE market return has been 12%, so a few managers will beat the average by luck—Just not the same ones every year. www.Ifa.com/12steps/Step3/Step3Page2.asp#333
Second, you must pay the costs of the manager, her/his marketing group and operations, whether or not s/he makes you a dime. It is always better to pay as little as possible for the same performance over the long term. Costs can take up to 33% of your returns, over time. Investors averaged only 2.57% annually from 1984 through 2002 despite buying the ‘winners’ at the top. www.DALBARinc.com
Third, managers are paid for increasing “ASSETS under management,” not for making you rich. Bringing in more assets is a full-time job. It is expensive to market the funds given that there are now thousands available. It is inevitable that popular funds will grow until they produce average returns with high expenses. Managers want to be rich, not right. It takes luck to pick successful stocks. You do not benefit from economies of scale. As assets grow, fees do NOT shrink.
Fourth, there is much less chance of you being treated poorly by fund management if the structure and governance are customer-oriented like Vanguard’s and TIAA-CREF’s are.
Fifth, many professional managers and Wall Street “insiders” place their core assets in index funds. As bond guru, Bill Gross, said, “professional money management is a gigantic rip-off.”
Sixth, since no manager can consistently beat the market, a mutual fund or hedge fund for that matter, must be evaluated as a commodity. Commodities are usually judged on price. As Benjamin Graham, legendary value investor, said, “Investors should purchase stocks like they purchase groceries—not like they purchase perfume.” Actually, all financial services should be purchased this way—insurance, mortgage, credit, banking.
Seventh, due to changes in access and technology, some manufacturers of financial services and products have decided to enhance their direct to customer channel. Even though Vanguard funds have not been sold by personal selling, it has grown to rival most fund complexes. Discount brokers are now considered to have better customer service than brokerage firm services, according to Consumer Reports. Even though Progressive Insurance is sold by agents, their success in the direct channel has been impressive.
Eighth, Wall Street cannot reduce the risk of investing. Most individual investors have lost 30% to 50% of their life savings in the last Wall Street bubble. Many investors now realize that Wall Street is selling snake oil. Even the promise of diversification has left many realizing that “experts” can’t control risk.
Ninth, Wall Street used to control price—raising the price of investing to grow revenue directly lowers investor returns. The advisor or fund with the highest price does NOT guarantee success: only expenses to investors.
Investors can now control the price. We can use low-cost mutual funds and brokers. Since Wall Street cannot predict the markets and we don’t know if stocks will outperform all other assets over time, we must take the Pascal wager:
Pascal’s wager: The consequences of not being in the markets are worse than being in it for the long haul. Buying the market returns at the lowest price is the best solution for long-term wealth-building. You are better off without “professional” advice.
Example: Member Ron Delaney of New York will gain $400,000 because he asked about his 401k plan. Mutual fund fees are the largest source of overcharges—$400,000—over time. Ron did not believe pension costs were as high as we said. He asked his HR person about the costs of his 401K plan. He received a packet of materials. Finally, he calculated that his annual expenses were 2.1% and his annual fee was $50. His plan offered index funds for just 0.70%. He picked which funds he needed after reading our FREE Guide*. Ron saved $2,800 ($4200-$1400) every year. By the time Ron retires, he may have added an extra $400,000 to his 401k.
Your choice is clear—avoid Wall Street. Their “advice” is just marketing hype. Their research exists to sell their products. Take the advice of unbiased advisors like master investor Warren Buffett,
By periodically investing in an index fund, for example, the know-
nothing investor can actually out-perform most investment
professionals. Paradoxically, when "dumb" money acknowledges its
limitations, it ceases to be dumb. http://www.berkshirehathaway.com/letters/1993.html
* http://www.theinsidersguides.com/index.html
Friday, June 12, 2009
There are two ways to buy financial services in the 21st century
One of my members bought life insurance from the large insurer (Mascot is a dog) before he asked me for help. Frank bought their insurance because the agent said the company is the best. She said, “It is large and will always be there to pay the benefit.” However, is it worth paying an extra $17,970 on your level term policy? There are customer-focused insurers, rated A+, the same as "It," charging $384 vs. "It’s" $983 for the same $300,000 30-year term policy. Frank was wasting $17,970 in total! After reading our Insider’s Guide to Life Insurance, Frank purchased the $384 policy. Investing his savings of $599 ($983-$384) in his Wealth Reserve for 30 years in a market index, Frank may have an extra $175,000 for HIS dreams not the insurers. http://www.theinsidersguides.com/lifins41.html
In the 21st century, there are two ways to buy financial services—the consumer way and the independent’s way. Financially independent people don’t let themselves be sold. They shop for value in everything. They never pay retail. They shop at Costco. They buy used luxury cars. They wait for sales on electronics. They use the Internet to research the price.
Buying vehicles is one of the largest expenses in most people’s lives. Over our lifetimes, we may spend over $250,000. Unfortunately, most people take the consumer way and spend 4 to 5 times what they need to for vehicles. One of our members, Denise, bought a car before I met her. Joy bought her car after she read The Insider’s Guide to Vehicle Purchase.
Consumers’ way. Denise took a loan for the full amount of the price. During the paperwork process with the F&I person (finance and insurance), she was persuaded that the gap insurance and window glass etching options were good buys. Instead of getting a lower price, Denise assumed that an extra $25 a month was no big deal. This was the deal she finally agreed to:
Total borrowing: $25,000 @ 16% for 72 months (her FICO score is 610)
Monthly payment: $542.30 Total payments: $39,045.60
Total interest: $14,045.31 Final residual value: $5,000
Denise spent almost $40,000 for an asset that has little value after 6 years. During those 6 years, she could have accumulated a Wealth Reserve of $57,352.04 on the $542.30 monthly payments. Thus, buying the vehicle on time actually cost her $40,000 plus $57,000 she could have had by investing the payments. The car cost almost $100,000.
The real cost of buying a new vehicle is FOUR times the price--Not a great deal.
Independents’ way. Joy had been buying “assets that grow by themselves” with $500 a month for some time. She had been growing her Wealth Reserve. She started her Wealth Reserve by using our FREE Guide at http://www.theinsidersguides.com/freeguide.html.
Independents use their Wealth Reserve balance for all their financial needs. Thus, their Wealth Reserve can earn 10% to 12% over time in stock and bond mutual funds. They can ‘borrow’ $25,000 from their own Reserve or ‘bank’ and pay themselves back by continuing to invest $500 for the 6 years. Joy pays monthly like Denise but to a different account. The $14,045 interest that Denise pays to another bank, Joy compounds in her own ‘bank.’ Joy accumulates about $53,000 during the six years—replacing the $25,000 she ‘borrowed’ to buy her vehicle. The vehicle is still worth only $5,000 but Joy has grown her Reserve by $28,000. Also, because Joy paid cash for a used luxury car, she probably got a lot more vehicle than Denise got for her borrowed $25,000.
As you guessed, the Independents’ way is how financially independent people stay wealthy. They paid their own “bank” and got the car and the extra $28,000 for the same $500 expense.
You can build your Wealth Reserve with savings from each Insider's Guides for: Vehicle Insurance . . save up to $6,000 over 10 years; Homeowner’s Insurance . . . $2,000 over 10 yearsLife Insurance . . . $20,000 over 20 years; Lawsuit Insurance . . . $3,000 over 10 years; Health Insurance . . . $5,000 over 10 years; Disability Insurance . . . $5,000 over 10 years; Long Term Care . . . $40,000 over 20 years; Education Funding . . . $20,000 over 18 years; Retirement Spending . . . $1,000s over 30 years; Banking . . . $3,000 each year; Annuities . . . $20,000 in 20 years; Mutual Funds/Securities . . . $3,000 each year; Spending Plan: Reach every goalSelf-Funded 'Bank' . . . $250,000 in 15 years; Vehicle Purchase . . . $10,000 per vehicle; Mortgage Purchase . . . $3,000 per contract; Wealth Reserve . . . $1,000,000 in 25 years; Wealth Transfer . . . $20,000 in 10 years; Living Insurance . . . $120,000 over 20 years; Self-insurance . . . $20,000 over 20 years; Avoid buying 101 products that waste your money
You can save $3,000 every year by buying the Independents’ way. Shop for financials just like you do groceries. Your agent, banker, broker, money manager and advisor do already. www.TheInsidersGuides.com
In the 21st century, there are two ways to buy financial services—the consumer way and the independent’s way. Financially independent people don’t let themselves be sold. They shop for value in everything. They never pay retail. They shop at Costco. They buy used luxury cars. They wait for sales on electronics. They use the Internet to research the price.
Buying vehicles is one of the largest expenses in most people’s lives. Over our lifetimes, we may spend over $250,000. Unfortunately, most people take the consumer way and spend 4 to 5 times what they need to for vehicles. One of our members, Denise, bought a car before I met her. Joy bought her car after she read The Insider’s Guide to Vehicle Purchase.
Consumers’ way. Denise took a loan for the full amount of the price. During the paperwork process with the F&I person (finance and insurance), she was persuaded that the gap insurance and window glass etching options were good buys. Instead of getting a lower price, Denise assumed that an extra $25 a month was no big deal. This was the deal she finally agreed to:
Total borrowing: $25,000 @ 16% for 72 months (her FICO score is 610)
Monthly payment: $542.30 Total payments: $39,045.60
Total interest: $14,045.31 Final residual value: $5,000
Denise spent almost $40,000 for an asset that has little value after 6 years. During those 6 years, she could have accumulated a Wealth Reserve of $57,352.04 on the $542.30 monthly payments. Thus, buying the vehicle on time actually cost her $40,000 plus $57,000 she could have had by investing the payments. The car cost almost $100,000.
The real cost of buying a new vehicle is FOUR times the price--Not a great deal.
Independents’ way. Joy had been buying “assets that grow by themselves” with $500 a month for some time. She had been growing her Wealth Reserve. She started her Wealth Reserve by using our FREE Guide at http://www.theinsidersguides.com/freeguide.html.
Independents use their Wealth Reserve balance for all their financial needs. Thus, their Wealth Reserve can earn 10% to 12% over time in stock and bond mutual funds. They can ‘borrow’ $25,000 from their own Reserve or ‘bank’ and pay themselves back by continuing to invest $500 for the 6 years. Joy pays monthly like Denise but to a different account. The $14,045 interest that Denise pays to another bank, Joy compounds in her own ‘bank.’ Joy accumulates about $53,000 during the six years—replacing the $25,000 she ‘borrowed’ to buy her vehicle. The vehicle is still worth only $5,000 but Joy has grown her Reserve by $28,000. Also, because Joy paid cash for a used luxury car, she probably got a lot more vehicle than Denise got for her borrowed $25,000.
As you guessed, the Independents’ way is how financially independent people stay wealthy. They paid their own “bank” and got the car and the extra $28,000 for the same $500 expense.
You can build your Wealth Reserve with savings from each Insider's Guides for: Vehicle Insurance . . save up to $6,000 over 10 years; Homeowner’s Insurance . . . $2,000 over 10 yearsLife Insurance . . . $20,000 over 20 years; Lawsuit Insurance . . . $3,000 over 10 years; Health Insurance . . . $5,000 over 10 years; Disability Insurance . . . $5,000 over 10 years; Long Term Care . . . $40,000 over 20 years; Education Funding . . . $20,000 over 18 years; Retirement Spending . . . $1,000s over 30 years; Banking . . . $3,000 each year; Annuities . . . $20,000 in 20 years; Mutual Funds/Securities . . . $3,000 each year; Spending Plan: Reach every goalSelf-Funded 'Bank' . . . $250,000 in 15 years; Vehicle Purchase . . . $10,000 per vehicle; Mortgage Purchase . . . $3,000 per contract; Wealth Reserve . . . $1,000,000 in 25 years; Wealth Transfer . . . $20,000 in 10 years; Living Insurance . . . $120,000 over 20 years; Self-insurance . . . $20,000 over 20 years; Avoid buying 101 products that waste your money
You can save $3,000 every year by buying the Independents’ way. Shop for financials just like you do groceries. Your agent, banker, broker, money manager and advisor do already. www.TheInsidersGuides.com
Monday, February 2, 2009
Do Washington elites pay taxes?
What happens when the representatives we put our trust in go to Washington? Is it the water? Is the air contaminated from the swamp gases that trickle up through the cracks in Washington’s mausoleum-type buildings?
Obama’s victory made Americans feel that America might again stand for equal and fair treatment. I thought for a brief moment that after the election-night speech in a Chicago public forum, we might be on the right track back to feeling pride in our country’s leaders.
To me, and many Americans, the election of Obama represented a moral re-awakening of America. In my naïveté, I thought that we had seen the end of the DOUBLE standard. There is one standard for the political elites and another standard for the people who pay their salaries.
Obama or his staff has nominated one, Tim Geithner, for Treasury. This position involves honest dealings in crucial financial matters. To the world and to my fellow taxpayers, this guy should be Mr Clean. He should symbolize the most honest and fair way of handling financial matters. He should also know his subject matter.
The public face that is presented about this candidate is that he is wealthy and knowledgable about financial matters. We are told that Obama aides “said they didn't think these issues would present a problem, given what they characterized as the minor nature of the infractions.” Only in Washington is not paying taxes, twice (even after an audit), a “minor infraction.”
We are being told that if you get caught not paying taxes, not once but twice, it is OK if your “mistakes weren't intentional” and you are “contrite.” Instead of dealing with this matter openly, with the “transparency” Obama promised, our representatives take the wealthy tax cheat into a room closed to the public and press. For most Americans, public humiliation is part of the mia culpa. Not for the elites.
The specifics of how a wealthy knowledgable financial guy and his accountant can cheat we fellow taxpayers can be read in the press. It is just hard to believe that you and I would not end up in court after failing to understand that we must pay Social Security and Medicare taxes, even after we were caught once. Even if the future head of the IRS doesn’t know it, his tax preparer would know that Americans can’t deduct our child’s camp fees, early-withdrawal penalty from a retirement plan, a charitable-contribution of ineligible items, and utility costs.
Finally, as a knowledgeable and wealthy public servant, it is hard to believe that this guy would employ an immigrant housekeeper whose work-authorization papers had expired. Where was this person during the Clinton administration when we all learned that the wealthy keep illegal immigrants so they can pay less.
Would most Americans just assume they could get away with this kind of dishonesty? It is not a matter of degree. Yes, I agree the nominee is not a mass murderer. However, if Obama and our representatives support a nominee engaged in illegal acts, aren’t we continuing the same history as Bush and other elites: election by court order, evesdropping without court order, torture by any other name, intentional deception to make war, welfare for the wealthy, indescriminate spending, and poor judgement.
Change was the keynote to Obama’s message. We want change. We don’t want the old DOUBLE standard that seems to infiltrate the hearts and minds of our representatives and Washington functionaries. We don’t want the morally suspect decision-making process that characterizes normal Washington activity. We don’t want “business as usual.” We don’t want “government by crisis,” when checks and balances (common sense) are put aside in the name of expediency. We want integrity back in government. Rewarding bad behavior in anyone (no matter how wealthy or knowledgeable) is the kind of activity we wanted Obama’s CHANGE to change.
Now another Obama nominee, Daschle, didn’t pay his taxes. This is the third person “too important to pay taxes” that Obama has put up. Where is the CHANGE we were promised. This is the old boy network again. Geithner, the new head of the IRS, was confirmed after deliberately avoiding his tax obligations. What does this say about our Congress? Obama continues to ignore breeches of character. Perhaps Congress people think it is OK not to pay because they don’t pay either.
Do any Washington elites pay taxes? Why am I paying taxes this month?
Obama’s victory made Americans feel that America might again stand for equal and fair treatment. I thought for a brief moment that after the election-night speech in a Chicago public forum, we might be on the right track back to feeling pride in our country’s leaders.
To me, and many Americans, the election of Obama represented a moral re-awakening of America. In my naïveté, I thought that we had seen the end of the DOUBLE standard. There is one standard for the political elites and another standard for the people who pay their salaries.
Obama or his staff has nominated one, Tim Geithner, for Treasury. This position involves honest dealings in crucial financial matters. To the world and to my fellow taxpayers, this guy should be Mr Clean. He should symbolize the most honest and fair way of handling financial matters. He should also know his subject matter.
The public face that is presented about this candidate is that he is wealthy and knowledgable about financial matters. We are told that Obama aides “said they didn't think these issues would present a problem, given what they characterized as the minor nature of the infractions.” Only in Washington is not paying taxes, twice (even after an audit), a “minor infraction.”
We are being told that if you get caught not paying taxes, not once but twice, it is OK if your “mistakes weren't intentional” and you are “contrite.” Instead of dealing with this matter openly, with the “transparency” Obama promised, our representatives take the wealthy tax cheat into a room closed to the public and press. For most Americans, public humiliation is part of the mia culpa. Not for the elites.
The specifics of how a wealthy knowledgable financial guy and his accountant can cheat we fellow taxpayers can be read in the press. It is just hard to believe that you and I would not end up in court after failing to understand that we must pay Social Security and Medicare taxes, even after we were caught once. Even if the future head of the IRS doesn’t know it, his tax preparer would know that Americans can’t deduct our child’s camp fees, early-withdrawal penalty from a retirement plan, a charitable-contribution of ineligible items, and utility costs.
Finally, as a knowledgeable and wealthy public servant, it is hard to believe that this guy would employ an immigrant housekeeper whose work-authorization papers had expired. Where was this person during the Clinton administration when we all learned that the wealthy keep illegal immigrants so they can pay less.
Would most Americans just assume they could get away with this kind of dishonesty? It is not a matter of degree. Yes, I agree the nominee is not a mass murderer. However, if Obama and our representatives support a nominee engaged in illegal acts, aren’t we continuing the same history as Bush and other elites: election by court order, evesdropping without court order, torture by any other name, intentional deception to make war, welfare for the wealthy, indescriminate spending, and poor judgement.
Change was the keynote to Obama’s message. We want change. We don’t want the old DOUBLE standard that seems to infiltrate the hearts and minds of our representatives and Washington functionaries. We don’t want the morally suspect decision-making process that characterizes normal Washington activity. We don’t want “business as usual.” We don’t want “government by crisis,” when checks and balances (common sense) are put aside in the name of expediency. We want integrity back in government. Rewarding bad behavior in anyone (no matter how wealthy or knowledgeable) is the kind of activity we wanted Obama’s CHANGE to change.
Now another Obama nominee, Daschle, didn’t pay his taxes. This is the third person “too important to pay taxes” that Obama has put up. Where is the CHANGE we were promised. This is the old boy network again. Geithner, the new head of the IRS, was confirmed after deliberately avoiding his tax obligations. What does this say about our Congress? Obama continues to ignore breeches of character. Perhaps Congress people think it is OK not to pay because they don’t pay either.
Do any Washington elites pay taxes? Why am I paying taxes this month?
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