Perfect gift for your graduate
High school and college graduates need the best gift you can give
them: a future of tax-FREE income. Get them started now since your gift can
grow a THOUSAND times its value over time. For instance, $50
invested now can provide them with $20,000 when they need it later. Since
you have started your graduate off with this special IRS-approved tax shelter
they will find it easier to keep saving/investing the right way. They will end
up with a tax-FREE retirement. They can create a $500,000 tax-FREE account. Some young people
have grown their accounts to over $1 million by investing $167 a month for
years. They will pay NO taxes on their wealth. They can avoid future tax
increases. They can boost their savings by 30% just with the tax savings alone.
And if they need a home down payment or business start up fund, they can use
the contributions tax and penalty FREE.
Perfect gift: https://www.amazon.com/Tax-Shelter-Young-Americans/dp/1500426520
When you win the lottery, follow Warren Buffett’s advice
Let’s say you win over $1 million. What do you do—pay half to the
government and spend the rest? Historically, most
winners end up with no money within 10 years. Instead, you could live on
wealth income for the rest of your life. If you think you won, first, don’t
sign the ticket. Contact a lawyer who can help with setting up an
entity to claim the winnings and perhaps reduce the taxes. In some states,
you can avoid publicity and ‘ugly relatives’ this way. Next you want a fee-only
financial planner to help work out the use of the money after taxes. (Our CFP
cost only $300 in 2018) If you choose the long-term payout, they could help you
obtain a loan to fund your immediate spending needs (cars, mansion, travel,
expense accounts, etc). A bank would love to help you since your entity can
guarantee loan repayment. At this level of wealth, you don’t need to speculate
on stock gambles. Follow Warren Buffett’s advice and use low-cost Vanguard
funds to power your next 50+ years. He’s got $100 billion so he knows where to
invest it.
https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592
Do you need a financial miracle?
How long does it take to save $500,000 for retirement? Your best CD rate today
is 1% for 5 years. It would take 100
years saving $3,000 a year (250 a month) to hit your goal. For most of us
it will take a miracle to reach our goal of $500,000. The miracle we need is
called compound interest. It works like this: if we took a calculated risk and
invested in the changing top
American corporations and reinvested their dividends into the business
earning on average 11% a year, we would reach our goal in about 27 years. Long-term
investors in low-cost stock index funds earn 11%
a year on average—not every year but over their working lives. Check out
how much you could have earned in stocks every year in the last century: http://www.moneychimp.com/features/market_cagr.htm.
So the choice is yours. The probabilities of the miracle of compounding
working for you to reach $500,000 are over 90%. You are certain to never reach
your goal in your lifetime using ‘safe’ bank CDs. In fact, you will lose money
because inflation of 2% a year is greater than earning 1% a year. You need your
money to earn money on its earnings too.
You need a miracle: https://www.amazon.com/Miracle-Compounding-Turn-day-into/dp/1470176513/
Do you need financial future insurance?
Do you have a financial future? Set and reach your money goals. Set-up
a tax-FREE investment account. Buy and hold 10 mutual funds all your life. The greatest
impediment to financial freedom is debt. Most of us live paycheck to paycheck.
Freedom from our chains of lifelong payments requires immediate action: cutting
credit cards and amputation of some of our costly toys and habits. Going cold
turkey is the only way to save our life in rehab. When we have financial
freedom, we can buy new toys using the profits from our investments. Right now,
you are making other people wealthy from your monthly payments. When you pay
$161 per month for 10+ years on your credit card balance of $10,050, you will
spend at least $19,360. You pay almost double for that same $10,050! I will
show you how to be on the other side of the deal—collecting
$20,000 for your investment of $10,000. Over time, you can be your own bank
and own your toys outright. Your investments can provide you with a home down
payment or business start-up. You can be assured of a financial future. You
could be a millionaire from $9 a day. See page 39. Listen to how this parking
lot attendant did it: https://www.youtube.com/watch?v=qlUIOxQr3bo.
Unfortunately our schools don't teach us how to avoid becoming debtors for the
rest of our lives. They could teach us how to accumulate $1 million by compounding
$9 a day. If we learned how to double our account early, we would save
ourselves the grief of financial enslavement for the rest of our lives. We
could learn the simple financial essentials—accumulate assets as soon as
possible. We don't need complicated insurance, mutual funds, or financial
products to have the good life. We can buy our freedom with only $9 a day. We
don't waste $3,000 a year on high-cost financial products and taxes. We avoid
the two KILLERS of wealth accumulation—taxes and fees.
Get free: https://www.amazon.com/Financial-Future-Insurance-mutual-funds/dp/149355204X
Apply for Medicare B healthcare at Social Security
You need to apply online since most Social Security offices are
closed. (I never found out why you apply for Medicare B coverage at SS
offices.) If you currently have employer insurance, you may be able to buy Part
B (doctors) coverage when you retire without paying the extra cost. You need
proof from your employer that you qualify for special enrollment by using form
L564. When you have your app form 40B
and signed L564, fax them to your local SS office and call immediately so they
can find the forms on their computer. Otherwise the DeJoy
mail delay program may delay your coverage start date. Your app gets
assigned to operators and eventually you can verify you have coverage via your
online Medicare account. At this point you can prove to a private carrier that
you have Part B if you are buying Part
C & D an Advantage
plan or Medicare
Supplement to cover the gaps in ‘original’ Medicare coverage.
Start here: https://www.ssa.gov/benefits/medicare/
Can your advisor really give you the best deal?
Can advisors who get paid for sales volume really act as your fiduciary—acting only in your best interest? This historic debate continues as it becomes easier to manage your own money. For instance, a simple market index increased 56% in the last year versus advisors who took home huge paychecks. Did they work twice as hard? Since the 90s, investors have found the better way with low-cost mutual fund provider Vanguard. John Bogle, founder, created the first large company index open to the public. The 500 Index represents 3/4ths of the stock market at only 0.04% annual expense instead of 1-2% for advisor’s securities. This is important since your retirement income is largely determined by your gains minus your costs: $3 million vs $1.5 million for 40 year $3,000/year investments. Vanguard members who own all the Vanguard funds can pay a fee for service when they actually need financial advice. Example: you retire with a 401k of $500K. Cost to move to Vanguard is 0.04% or $200 a year. Cost for your advisor: $5,000 to $7,500. Vanguard funds are the investments recommended by Warren Buffett.
Go with unbiased advice: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963
How do you know you will have enough in retirement?
Congress is thinking of changing the rules for annuities. The industry has not been able to sell as many recently so financial lobbyists have been paid a bundle to bundle up changes that few in Congress understand. Annuity sellers want you to think you get a better deal by locking up your money with them instead of using the growth and income strategy. If living longer and going into retirement with less money were problems that annuities could solve, the changes would be great. However, remember that sales people make big bucks on annuity sales and you pay for all those promises. Annuities are guaranteed by an insurance company but they may not be able to overcome long-term inflation because the payouts are based on current bond interest and interest rate hedging. You may be able to receive more income from an annuity than current bank CDs but your future monthly income may not cover your expenses. It is better for you to follow Warren Buffett’s advice in retirement.
Buy growth and income: https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592
Your retirement income puzzle
You are required to start taking your pension and IRA money
out starting at age 72 (70 ½ if you reach 70 ½ before January 1, 2020). And you must take out a certain amount each year
whether you need your RMD or not. You can only estimate how much you must take
since it changes every year. Also you must decide when to start taking your SS
benefits. You get more by waiting but every person must make the decision for
themselves based on their current needs not on some guess of future income
sources. So how can you solve this puzzle? You could hire a professional
financial planner for a one-time fee or keep paying your advisor 1-2% a year as
your nest egg grows. Either way you will only receive an estimate from these
folks. There is no guarantee for the future. The key according to those who
have been through this process for years is to keep as flexible with your
assets as possible. Don’t lock your money up long-term. Don’t put all your
money in bank CDs or bonds or an annuity. No one solution is guaranteed.
Planning helps: https://www.amazon.com/What-your-RMD-much-spend/dp/1718946716
Last chance to reduce taxes due May 17
If you owe, you have one last chance to get a refund or reduce what you owe. Thanks to the deductibility of a traditional IRA contribution, you may cut yourself a break. Instead of owing the government, you could have a refund. The amount depends on your situation. By opening or adding to your IRA contributions for 2020 not 2021, you give yourself a retroactive refund. Yes, the IRS will receive a contribution confirmation from your bank or mutual fund firm but at least you have one less bill this month. Even though every tax preparation company can get you an extension to file the paperwork, the tax itself must be paid by May 17. There are rules.
https://www.amazon.com/Your-Wealth-Reserve-Save-year/dp/107028288X
Where is that refund?
The Internal Revenue Service today reminds taxpayers that the most
convenient way to check on a tax refund is by using the “Where’s My Refund?” tool at IRS.gov or through the IRS2Go Mobile App.
Where is the stimulus 1 or 2? If you did not receive stimulus 1 or 2,
start filing here: https://www.irs.gov/newsroom/recovery-rebate-credit.
Stimulus 3? https://www.irs.gov/coronavirus/third-economic-impact-payment
Estimated tax payments are still due April 15. If you are
self-employed or do not have enough withheld from a paycheck, pension or Social
Security, you may have to send quarterly payments to the IRS. Tax returns for
2020 are due May 17 not April 15 but the estimated
tax payments are still required on schedule.
IRS
will redo your taxes and send refund if you paid tax on Unemployment 2020
or you paid ObamaCare’s
excess advance premium tax credit repayment.
Have tax forms; will file … for FREE but WAIT . . .
If you have unemployment income, ObamaCare coverage you
should wait to file since the IRS has not yet implemented tax-FREE provisions
of the new Covid law. If you already filed and paid tax on your unemployment
income, IRS
says it will send you a refund of the tax automatically. DO NOT FILE an
amended return to obtain a refund on this tax. Taxes
due MAY 17 not April 15. Input the W-2, unemployment, SS benefits, IRAs,
pensions, RMD, brokerage, etc. forms you have. You can file
for FREE online. If you didn’t receive a correct form, file a Form
4852. 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. You can deduct as
medical expense all Covid
prevention supplies. 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. Efile
Jan 15; IRS processing Feb 12.
E file avoids covid at your preparers’ office: https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
What to do if you can’t pay by May 17?
Avoid the penalty for not paying estimated tax. Ask for an automatic
extension to file till October. If that does not work for you, you can
apply for a payment plan. An individual can setup an IRS installment plan if
you owe $50,000 or less and can pay back the amount owed in 3 years. If you are
a business owner, you can setup
an installment plan if you owe $25,000 or less. The IRS will charge a
one-time fee of $105.
If you own
less than $25,000 and can pay the amount owed within six years, ask the IRS
for a streamlined payment agreement. The IRS will charge a one-time fee of
$102.
Request an Offer in Compromise if you cannot pay the total
amount owed. This allows you to settle your tax debt for less than the total
amount owed if you will be unable to pay back the total amount owed within 10
years. The IRS will charge a one-time fee of $150. Given the pandemic economic
hardship, apply for the extension to file now: https://www.irs.gov/pub/irs-pdf/f4868.pdf
Special circumstances help: call the IRS Taxpayer Advocate
Service 1-877-777-4778 for free assistance.
More ways: https://www.irs.gov/newsroom/heres-how-people-can-pay-their-federal-taxes
IRS has $1.3 billion
refunds for 2017 tax returns
Unclaimed income tax refunds worth more than $1.3 billion
await an estimated 1.3 million taxpayers who did not file a 2017 return,
according to the IRS. “Time is quickly running out for these taxpayers. There’s
only a three-year window to claim these refunds, and the window closes on May
17.” If they do not file a tax return within three years, the money becomes the
property of the U.S. Treasury. Filing instructions are available on the IRS.gov Forms and Publications page or 800-829-3676.
You have 17 days to collect your cash!
**********ACCOUNTABILITY**************
Like 1776, this
period is a test
of democracy—We
rejected an "American
fascist"
Cheney: Mr T is “poisoning
our democratic system”
The BIG con: 2020
election was ‘stolen’
Facebook ban: Mr T used his
account to "incite
violent insurrection."
Judge: Trumpist
Barr deceived us re: Trump prosecution
Terrorist
blames FoxNews for attempted coup
When ‘Truth
and Reconciliation Commission’?
How Govt wastes our money:
Landlords and tenants go broke from Pandemic as rich get richer by 55%
We pay Most corporations/wealthy don’t pay tax rate: we give many refunds or subsidies
We spent more on Afghanistan roads than US roads/bridges
Gun
injuries put over a half-million people in hospitals: costs us over $2.8
billion
GOP: we can’t afford basic food, health care or housing but gave $1.8 Trillion to rich
$700 billion: IRS audit
rates for millionaires fallen 70% since 2011: 21,000 fewer staff
We’re screwed: “Uncollected
taxes equal the total taxes paid by
the lower 90% of taxpayers.”
SCAMS/SPINS:
The
Cheney GOP party vs the Trump GOP party: a Dem win?
GOP
leaders denounce vax and protections from virus: get
vax hidden from press Liars
Pence
praising the man who ordered overthrow of gov and perhaps
his death
GOP making policy
to drink the Trumpism Kool-Aid: Americans stole their own election
GOP
extremists going after Biden’s dogs: target Biden family at all costs
Trumpists
making fake vax cards so they can trick family/friends to catch Covid
GOP
killing FL TX mail-in voting--a GOP standby for years: Trump mails in
Trumpists
voted illegally; not Dems: White gets
probation; Black gets 5 years prison
Media
outlets are predicting stock market bubble: does history repeat itself?
Fake
media messages to manipulate us
NRA
leaders hid personal expenses (yachts etc) as business expenses judge says
Gun
injuries put over a half-million people in hospitals: costs us over $2.8
billion
Peloton
will take back machines that kill kids: CEO’s stock (net worth) fell: Wow!
Fake
mother ransom call uses mom’s real phone number: thieves steal numbers too
Not
fake cubic zirconia: Pandora drops mined diamonds sells only lab-generated
ones
Daniel Rivera NJ caught
Ponzi fraud elderly: guaranteed REIT returns: 6 years prison
DaRayl Davis IL caught
Ponzi $5.1 million church members guarantee: 13 years prison
Jared Ivanka caught
overcharging misleading their tenants: mold and rodents: Jared sells
Fake
text from bank is best money making scam: call or text bank instead
Fake
designer eyeglasses and repair online: using bad reviews to get Google page
1
Fake
magazine subs use credit card to steal $50 a month, then $1,350
Travel
ID “real” license delayed due to DMV closings: due 2023
NJ bans
single use paper/plastic grocery bags by ’22: BYO bags or stock up on
plastics
World’s vax withheld
from
Sixth-grade Rigby ID
girl brings gun to school; shoots 3
TX makes all streets
a shooting gallery: no
license required for all to pack
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
IRS tips to avoid
scams: https://www.irs.gov/newsroom/tax-scams-consumer-alerts
Is it a scam? Check AARP scamline
877.908.3360. BBB
Scam tracker
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
Find tax preparer: https://www.irs.gov/tax-professionals/choosing-a-tax-professional
Check Social
Security: https://blog.ssa.gov/
Safeguard data:
ConsumerReports help: https://securityplanner.consumerreports.org/
Jobs
Farmer
moves French border to accommodate tractor: lawyers busy for years
Skilled
manufacturing jobs go unfilled: training critical: welder
$54,200 base
You
can refuse vax at job but also lose job: co-workers don’t want to catch
virus
Need
computer internet to find job: subsidy & $100 coupon
Solar
jobs become more union wage scale
Who owns your account now?
Appliance reliability: https://www.moneytalksnews.com/most-reliable-appliance-brand
AOL and Yahoo to private equity firm Apollo Global: higher fees
Miracles:
CDC extended until
June 30 a temporary moratorium
on evictions: Trumpist
reverses it
A Good Samaritan immediately
jumped over the guardrail into the bay rescued toddler
Malian woman added 9
kids to her family in one hospital visit: save with bulk buying
Cooler saves 4 in
hate crime: Chicago
man runs over picnickers with truck; they survive
Yankees, Mets To Segregate
Unvaccinated Fans At Home Games
Vigilance: only
HALF of fellow citizens have vax so remain safe: 500
still die daily
Ending the scourge
of Christian
nationalism’s family separation: can
world forgive us?
Jonah: 240-pound
lake sturgeon caught/released Detroit River: 100 yr old 6ft 10in female
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
973.746.2014
www.InsuranceAdvisorsNetwork.com
Alerts available
at http://dankeppel.blogspot.com/
