survive virus victim

 

New Year is time to plan ahead

Whether you are in retirement or near retirement, if you don’t have a plan you will not be able to survive. We are all living longer and so a plan is crucial to live well. The fastest growing age group is the age 85 to 100. The common myth: “Saving is a waste of time”. I used to believe this because when you save in a bank, your $250 a month is worth only about $67,000 after 20 years. Then I learned from my boss who invested in mutual funds that he had amassed $250,000. Every year you delay starting to invest costs you $thousands over time. Sure, you might be able work past your assumed “retirement” age. But what if you can’t? Will you live well or just survive? A low-cost stock index fund has grown at 11% over time so your money doubles every 8-10 years. You must leave it alone to compound. This Miracle of Compounding is the secret Warren Buffett cites: “My wealth has come from a combination of living in America, some lucky genes, and compound interest.” And now you can use an IRS-approved trust that makes all your earnings FREE of income tax for the rest of your life. We must plan ahead. Social Security will cut benefits by 2034 and income taxes will have to pay for the deficit of $40,000 each. Taxes don’t go down for us. The two things that will determine whether you have enough later on are taxes and living expenses. Let time work the miracle.

Let's start today. https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793

 

Rebuilding our lost savings

More than half of us are dipping into our savings, with 60% using our IRA and 401k accounts to get us through the difficulties we are facing from the coronavirus pandemic. How can we rebuild our savings? Thousands of books are sold with the ‘secrets’ to investing. Each day a new TV guru provides a list of stocks that will ‘make you rich’. When you research the VALUE of these ‘secrets’ for you, you find a mountain has been built from a grain of truth for that time/place. Yes, if you had purchased Apple, Amazon or Tesla at their beginning, you would be rich. But few actually put their hard-earned savings into those companies early on. Instead of taking advice from the current gurus who get paid well to entertain with ‘success’ stories, let’s listen to the unbiased wisdom of multi-billionaire Warren Buffett. His advice is simple: buy and keep buying a low-cost stock index fund like Vanguard’s 500 fund. This was the fund he used to beat 5 hedge funds picked by a Wall Street guru. From 2008 to 2017, the index earned 8.5% vs 4% per year. A $100,000 investment at the beginning of 2008 would have more than doubled to about $225,586 by 2017.

Invest wisely: https://www.amazon.com/Warren-Buffetts-Investment-Secret-Steeple/dp/1484189809

 

Trump left us with tax-FREE account

A positive for Trump’s legacy is an IRS account that allows us to grow investments and spend compounded earnings without income taxes. You may not have started your life with a $100-200 million boost from your father like Trump, but you can create your own tax-FREE stream of income like his. Clearly the Trump tax plan helps businesses and the wealthy. There is no reason why you cannot benefit from the tax code too. It eliminates taxes when taken out for your needs and can pass to your heirs totally tax FREE. No matter what your income, this helps you avoid future taxes to pay off the national debt. You can build a $1/2 million fund by investing $250 a month over time. You can use the tax laws for your benefit like the people in the top 1% income bracket do!

Set up your Tax Shelter in 1 hour: https://www.amazon.com/Trump-Tax-Shelter-Avoid-taxes/dp/1985448300

 

Have tax forms; will file for FREE

W-2, unemployment, SS benefits, IRAs, pensions, RMD, brokerage, etc. If you have all your forms, file for FREE online. Usually filing your state return costs as little as $15 unless you buy the Pro helpline. Avoid $300-400 paid preparer fees—new IRS forms mean higher fees. Unemployment insurance is TAXABLE on the Federal income tax return; not on some state returns. Some states do not tax your SS and pension benefits. Retirees did not have to take their RMDs in 2020 so taxes may be less: it was a good time to convert IRA to Roth IRA for tax-FREE future. Unless you were self-employed, you can’t deduct home office expenses of working from home. Some states continue the health insurance mandate and penalty unless you have an exemption. Since the IRA contribution deduction has no age limit now, you may reduce your income/taxes by making a contribution of up to $7,000. The standard deduction went up to $12,400 single; $24,800 joint. Jan 15 last day to make 2020 estimated payments. You have to report your April/May and December/January stimulus payments even though they are not taxable. Some of us receive a bank credit; some a debit card; some a check. Even if you don’t have to file, you should file so scammers can’t use your SS number to mess up your IRS file. Tested E file software ratings.

E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

 

Will your family be able to live if you are a virus victim?

Many parents are concerned about the survival of their families if the Covid spread continues in ’21. If 4,000 continue to die every day, this becomes a real threat. Half those who spread the virus have no symptoms so exposure is almost inevitable. We still don’t know which folks will suffer severely and which will have flue-like symptoms. Since many of us don’t wear masks or take precautions, we must assume we are at risk in any crowd. During this pandemic, many of us are seeking life insurance coverage. Life insurance is very easy to buy but higher levels of coverage—coverage for your family to live through this crisis—requires a blood test. This is how some of us find medical problems we didn’t know existed. The industry is offering ‘no test’ coverage for lower amounts. For those in good health, a $500,000 coverage lasting 10 years can cost as little as $20 a month. Premiums rise with age and health concerns. You may have lost your term coverage when your employment ended.

Check now while you can. https://www.amazon.com/Life-Insurance-Need-Save-right/dp/1480002178

 

 

 

 

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

 

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

 

 

President of the United States tried to overthrow our government

 

 

House impeaches Trump 2^nd time: "incitement of insurrection"

 

FBI: 36 most wanted Jan 6 terrorists

 

Self-coup like Napoleon’s 1851

 

 

Our ‘Truth and Reconciliation Commission’? 

 

 

 

How Govt wastes our money:

Biden reverses Trump stockpiling vaccines to help more of us avoid 4000 daily deaths

Millions of $600 credits sent to wrong banks: Turbo? Others? Must wait longer!

GOP tax cuts for rich: our debt has increased almost 40% in the past four years. We will pay it.

Hospitals dump vaccines since health workers don’t want it: seniors turned away

Even a gorilla troop caught it: strain very contagious: Covid deaths 400,000 4,000/day

 

Curative COVID-19 PCR tests not consistently accurate

Our govt wasted $10,000 each of our money on stupids: soda bottles called ‘test tubes’

Supremes start reversing women’s choice: Roe v Wade decision targeted by Trumpers

 

1 million new unemployment claims filed Jan week: need massive infrastructure effort

 

SCAMS/SPINS:

Terrorists plan more attacks: Jan 20 is next target in this holy ‘war’ against US.

Terrorists don’t understand employer/customer backlash after Trump’s insurrection

Terrorists recruit via Facebook: neo-Nazi politics within the global network.

Terrorists had inside Capitol help plan overthrow: 3 GOP conspired with leader Ali

 

Terrorists claim antifa (antifascists) stormed Capitol: ‘blame other side for own bad acts’

Terrorists moving communication to Telegraph: follow which Capitol attacked next

Terrorists wear Guard/police gear to breach Inauguration? Trump still ‘Commander’ 

Terrorists even had plans of the tunnels/entry points for “war” on Capitol: FBI ignored

 

Commander in Chief impeached again: GOP breaking up: Mitch lost: follow the money

Chiefs remind military: “insurrection on Capitol was an anti-democratic, criminal act”

Sedition task force has found many suspects in coup: planned ‘war’ motivated them

 

House security: “wasn’t comfortable with the ‘optics’” of alerting Guard: Trumpists? 

GOP calls to Trumpists for help end coup rebuffed by Jared, Ivanka: watch TV 6 hours

FBI VA warned of ‘war’ at Capitol: Officials deny; others claim intelligence failure

Senate takes another vacation to avoid Trump trial: Mitch fears Trumpists revenge

 

Rick Snyder fmr gov MI caught neglect poisoning Flint water; 12 die: $1,000 fine no jail

Michael Stepanek, caught running over protesters for “attitude adjustment” no jail no fine

Oportun Financial caught loan overcharging gregious debt collection practices 

Scammers use SS logo, titles, badge numbers to ask info for probe: check with SS first

 

Scam Chase users: “We detected some unusual activities on your account and as a security measure we have locked it.”

Thomas Robbins Daniel Merriman caught selling unregistered securities in strategy con

Justin Robert King CA caught offering interest in his bogus firm; $4 million fraud

 

Multivitamin little effect on health: 'benefits' might just all be a trick of the mind: potion

Drugmakers raise prices on 500 drugs: Humira up 7.4%, Revlimid up 4.5% Opdivo up 1.5%, Eliquis 6%. CEO raises!

Caddy that flies and drives itself: Keep your eyes on the ‘road’

 

Savior sent by god to save ‘Christian’ America for ‘true’ believers: miracle for 2^nd term?

 

BEWARE: Work from home scams: fees, shop, data entry, pyramid sales, stuff, net sales

 

Appliances with problems: Viking, FisherPaykel, Amana: Better: Whirlpool, KitchenAid

Big problem cars: Volvo (China), Jaguar, Land Rover (India), Chrysler (Italy)

Cable costs went up: are the services/shows worth it?

Sales tax scam: Resale certificate helps wealthy avoid sales tax: seller helps avoid taxes

 

Poor Mel T: “gossip, false and misleading statement on me”? Sounds like Don texting

Widow of GW bridge jumper can sue since locked access can be climbed over by jumper

Detroit to sue Trumpers who tried to overturn MI election: cost to defend election result

Trump refuses to pay Giuliani for failed election challenges: will face suits need him later

 

Graco car seats, Speed Stick, Keebler, cashier seats, terrorists’ jobs, opioid suit,

Save on car insurance: virus means less miles; less premium. Shop pay by mile

 

 

IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.

IRS: Free special ID protection PIN goes on your return so scammers can’t take refund

IRS: Previous tax returns available online: https://www.irs.gov/individuals/get-transcript

 

Is it a scam?  Check AARP scamline 877.908.3360.

 

Check IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams

https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers

Check Social Security: https://blog.ssa.gov/

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

 

Jobs

Places with wider mix of people in science, technology, engineering math jobs than most.

Prepare for jobs that will be in future not in past: more remote; more digital; more tech

Priests needed but still only man’s club: Pope allows women role in Mass already have!

Paycheck Protection Program PPP small biz loans: SBA will forgive loans if all employee retention criteria met

 

Who owns your account now?

 2020 was shorter than previous years - Earth is spinning quicker than it has in decades

Mortgage shopping: check on what your creditors are saying/selling about you.

Forbearance and refinance: help mortgage relief mortgage assistance CARES Act

 

Miracles:

Thakur told Trebek he learned English watching "Jeopardy! as a child in India. Thanks Alex!

Global warming: Spain covered in snow?  Weather patterns are changing. Heat in 2020.

Retailers: keep those items you do not want: too expensive to return them

Veterans make statement countering those in the coup: march to clean up their mess

 

One Good man holds back terrorists trying to take over our government: GOP enablers

 

Lying over: right-leaning talk-radio hosts told to cut election fraud rhetoric by owners

Bill Belichick coach Patriots declines Presidential Medal of Freedom offer from Trump

Climate change taking its toll on insects and sharks as precursor to human tolerance

 

 

We can apply for Medicare online: https://blog.ssa.gov/apply-for-medicare-online

We can apply for Social Security online: https://www.ssa.gov/benefits/retirement/

We can apply for health care online: https://www.healthcare.gov/

 

 

 

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

 

Rebuilding our lives in 2021

 

Rebuilding our lives in 2021

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

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

 

Got 2^nd stimulus check?

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

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

 

 

Is starting SS benefits at age 62 right for you?

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

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

 

Why our readers love Wellesley Income fund

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

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

 

2020 Total Return Fund                    Long-term Return      Longevity

18.4% 500 Index                                             11.3% since 1976

-30.8% Energy                                                   8.5% since 1984

32.2% Extended Market                                  10.7% since 1987

12.6% Health                                                   16.1% since 1984

59.6% International Growth                              11.6% since 1981

17.3% PRIMECAP                                         13.8% since 1984

19.1% Small Cap Index                                    10.6% since 1960

 8.5% Wellesley Income                                     9.7% since 1970

 7.4% Windsor                                                 11.2% since 1958

14.5% Windsor II                                            10.8% since 1985

15.9% Average                                                11.4% *

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

 

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

 

Pandemic tax filing made easy

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

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

 

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

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

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

 

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

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

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

 

 

 

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

 

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

 

 

President of the United States tries to overthrow our government

 

 

Trump incites ‘mob’: "failed insurrection"

 

FBI: ‘domestic terrorists’

 

25th Amendment: “high crime and misdemeanor”

 

Our ‘Truth and Reconciliation Commission’? 

 

 

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

 

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

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

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

 

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

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

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

 

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

 

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

September report Homeland Security surfaced identifying white supremacists as threat

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

 

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

 

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

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

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

 

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

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

 

Trump lieutenants freeze Defense transition to Biden gov control: sedition

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

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

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

 

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

 

 

SCAMS/SPINS:

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

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

 

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

FL woman waits 19 hours for vaccine: govt stockpiling doses

 

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

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

 

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

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

 

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

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

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

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

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

 

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

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

 

IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.

IRS: Free special ID protection PIN goes on your return so scammers can’t take refund

IRS: Previous tax returns available online: https://www.irs.gov/individuals/get-transcript

 

Is it a scam?  Check AARP scamline 877.908.3360.

 

Check IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams

https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers

Check Social Security: https://blog.ssa.gov/

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

 

Jobs

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

 

Who owns your account now?

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

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

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

 

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

 

Miracles:

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

People without symptoms spread virus in more than half of cases

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

 

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

 

We can apply for Medicare online: https://blog.ssa.gov/apply-for-medicare-online

We can apply for Social Security online: https://www.ssa.gov/benefits/retirement/

We can apply for health care online: https://www.healthcare.gov/

9549013194571004364849

 

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

 

2021 better than 2020?

 

Hope your 2020 was as successful as some of our readers

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

 

2020 Total Return Fund                    Long-term Return      Longevity

18.4% 500 Index                                             11.3% since 1976

-30.8% Energy                                                   8.5% since 1984

32.2% Extended Market                                  10.7% since 1987

12.6% Health                                                   16.1% since 1984

59.6% International Growth                              11.6% since 1981

17.3% PRIMECAP                                         13.8% since 1984

19.1% Small Cap Index                                    10.6% since 1960

 8.5% Wellesley Income                                     9.7% since 1970

 7.4% Windsor                                                 11.2% since 1958

14.5% Windsor II                                            10.8% since 1985

15.9% Average                                                11.4% *

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

 

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

 

Two Americas: separate and unequal

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

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

 

You can continue to subsidize your child’s life

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

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

 

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

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

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

 

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

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

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

 

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

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

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

 

Tax prep for 2020 income is different

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

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

 

 

 

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

 

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

 

 

Our ‘Truth and Reconciliation Commission’? 

 

Healing America begins with admission: 340,000 dead

 

Dictator’s advisor: “we want them infected”

 

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

 

Dictator’s revenge hurts:

no stimulus, no unemployment, no eviction extensions

 

 

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

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

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

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

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

 

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

 

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

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

 

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

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

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

 

 

SCAMS/SPINS:

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

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

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

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

 

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

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

 

 

Omni Financial caught violating military allotment rules: fine no jail

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

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

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

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

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

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

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

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

 

 

IRS: Easy Steps to Protect Your Computer and Phone and Avoid Phishing Emails.

IRS: Free special ID protection PIN goes on your return so scammers can’t take refund

IRS: Previous tax returns available online: https://www.irs.gov/individuals/get-transcript

 

Is it a scam?  Check AARP scamline 877.908.3360.

 

Check IRS: https://www.irs.gov/newsroom/dirty-dozen-part-1-taxpayers-should-be-on-the-lookout-for-these-scams

https://www.irs.gov/newsroom/dirty-dozen-part-2-thieves-work-all-year-to-scam-taxpayers

Check Social Security: https://blog.ssa.gov/

Safeguard data: ConsumerReports help: https://securityplanner.consumerreports.org/

 

Jobs

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

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

 

Who owns your account now?

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

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

 

Miracles:

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

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

 

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

 

We can apply for Medicare online: https://blog.ssa.gov/apply-for-medicare-online

We can apply for Social Security online: https://www.ssa.gov/benefits/retirement/

We can apply for health care online: https://www.healthcare.gov/

 

 

IAN

41 Watchung Plaza, B242

Montclair, NJ   07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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