Your Unbiased Advisor

Friday, October 8, 2021

Is your emergency fund ready when the US stops payments in December?

GOP against raising taxes on the rich and insists on keeping its big tax breaks for the wealthy from 2017 so they are talking about America not paying what it owes. If gov lays off workers, delays SS payments, or stages other malfunctions in the American system of government, Congress people still get paid. We can’t use their salaries as leverage to make a deal. Some reps are not even at work to make a deal. They still get paid. We may not get our benefits so it is important to plan where your funding will come from. If you can borrow from your bank or credit card lender, be prepared to pay it back quickly since rates are still over 25%. You don’t have to settle for 0.005% earnings in a bank savings for your emergency fund. There are many options including a low-cost balanced fund like those at Vanguard. Wellesley Income, with 60% bonds, provides over 7% return and direct deposit withdrawal capability.

https://www.amazon.com/dont-have-money-Financial-Emergencies/dp/1537636707

Time can be your friend or your enemy

Most of us are not going to marry rich, own a business, inherit wealth, get really lucky, or find talent. Time is available to all of us and we can become rich by using time to our advantage. Using just your average tax refund of $3,000 a year—$250 a month—you can become a millionaire over time. With time as your fiend, you don’t need to pick the right stocks, waste your money on advisors or trade ETF at the right time. Fidelity analyzed its accounts that produced the highest returns. They found that account holders that did NOT 'manage' their accounts were the most successful. Mutual fund analyst Morningstar found that in every period low-cost funds beat high-cost funds. Buy stocks like you buy groceries not perfume, Buffett’s teacher said. Recently, Warren Buffett has proved this strategy: buy and keep buying the Vanguard 500 index fund. Time is your enemy when you try to time the market: buy low and sell high. Inevitably money managers and TV gurus, who are paid well to time the market, either sell too early or buy too late. There are many get-rich stories but few are true.

Go with Buffett: https://www.amazon.com/Just-Takes-Time-money-fashioned/dp/1979380945

Beat Wall Street money managers

Another study shows how you can beat Wall Street money managers. So called ‘professionals’ make more mistakes in trading than you do. Even if they make wise decisions about which stocks to buy they must make wise decisions about when to sell. Usually they fail. They just don’t realize that the market is not driven by rationality. Professional investors demonstrate skill when buying stocks, but their selling decisions cause them to underperform benchmarks. That’s the conclusion of a recent working paper, “Selling Fast and Buying Slow,” by four researchers who examined the trading activity of more than 700 professionally managed portfolios. “They appear to focus primarily on finding the next great idea to add to their portfolio and view selling largely as a way to raise cash for purchases,” the study’s authors wrote. Keeping your money in an index fund gives you the advantage of NOT making bad trading decisions AND not overpaying for advice. Remember the Fidelity study results. Wall Street managers need to create great buying stories so they can attract more investors’ dollars. They are not concerned about providing you with better long-term returns that beat the market. They are paid to attract new dollars not provide you with the best returns over the long term. https://www.amazon.com/You-Beat-Wall-Street-professionals/dp/1986031373

Vanguard pushes industry to lower fee schedule

Vanguard leads the industry to lower fees for its Target Date funds again. With an anticipated expense ratio of 0.08%, investors will have access to a sophisticated, diversified asset allocation solution at just one-fifth of the average industry costs. These funds provide expert management at low cost. You don’t have to pick the asset allocation, adjusting as you age, or remember to buy/sell different ETFs every month, or enter limit orders, or rebalance on schedule, or decide when to invest. You just set up your automatic contribution amount and Vanguard does the rest. With the option to use the new Digital Advisor, you have the best of both worlds:

Low fees and advice when needed: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

New auto insurance discounts that may save you $500-800

Most folks are now driving less—fewer commute and fewer trips to the mall—so you can ask for your discount. Most insurers also offer discounts for safe drivers and driving review courses like AARP’s online course. Most folks can save by raising their deductible. Put the equivalent amount into your emergency fund as you save on premium each year. You may also save by dropping your collision on an older car. I have cancelled my roadside assistance since my credit card provides it free. Pay premiums annually or semi-annually instead of monthly. I always ask the phone rep if there are any other discounts I could qualify for. Most agents don’t tell explain them since they get paid by commission—a percentage of the premium.

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

Wealthy Pay a Lower Rate Than Everybody Else

New study confirms what everyone already knew: there are 2 tax systems in America. There is the one that Congress wrote for those who pay for their elections and one for the rest of us who do not pay for their elections. If you are taxing those who give you money so you can go to Washington, you give them every break possible—some really wealthy people pay nothing—as Trump said in 2016. Congress is serving those who feed them, as we would expect. How do they pay nothing? Congress only taxes some “income.” The wealthy can borrow against the value of their considerable holdings and live comfortably without selling stock or receiving any income from dividends, which new companies like Tesla and Amazon don’t pay. Congress does NOT tax wealth assets or the loan proceeds from it. Buffett’s company does not pay dividends so he pays nothing as his stock holdings increase in value. Buffett admitted that his staff pays over double what he pays in taxes: 17.7% vs 32.9%. He pays only the minimum into the SS and Medicare fund even though his net worth is $99 Billion. As one of the wealthy said: "We don't pay taxes. Only the little people pay taxes." This is Socialism for the Rich. https://www.amazon.com/Americas-Socialism-Rich-little-people/dp/1535218584

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

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

Our Jan 6 ‘Truth and Reconciliation Commission’

Terrorists knew exactly which windows were NOT reinforced

Domestic terrorists funded in crypto

Trump: “Nobody’s done more for Christianity than me” ?

How Govt wastes our money:

All these companies made $ billions but paid no Fed taxes: no wonder we owe high debt

World wealthy hide their corrupt proceeds: Pandora: how to avoid taxes: SD, NV

Our legal reps wrote the rules that let the rich hide their dough in some states: we pay bill

Congress on paid vacation again: can your biz operate if closed for 2 weeks?

Post office considers cashing checks for those without bank: payday lenders not happy

US fighter plane makers helped China copy F-22: US now complain J-20 fly over Taiwan

One guy, Mitch McConnell, decided America will not go bankrupt until December

SCAMS/SPINS:

Ban on ‘surprise’ medical bills due Jan: med providers will find another way to charge

Will right-wing conspiracy theorist Jones ever have to make amends for family grief?

Trumpist confessed: Fox ‘News’ was propaganda agency of government: not journalism

ATT funds far-right fake news One America News: Trump conspiracy theories

Naseem Mohammed Salamah caught fraud $970,000: promised diversify accounts

Rich Already Have A Plan To Escape Biden's Tax Increase: we end up paying the rich

131 judges failed to recuse themselves from cases in which they had financial interest

Papal thieves complain Vatican justice not fair: lawyers never worry about abused kids

Pope ashamed of his guys but Church never called police about 200,000 abuse crimes

Fake misleading info is so easy to make: Facebook profits from hurting especially teens

Recall: 3.5 million Covid home test kits by Ellume: too many fake positives

Why didn’t auto-braking stop crashes involving Tesla vehicles? Computers get confused.

TCFG Investment CA caught overcharging 360% and kickbacks with no notice

Doctors/druggists are drug pushers: 400 opioids per resident of Trumbull County OH.

Simple Health caught selling worthless policy said complied with Affordable Care Act.

Home builders caught adding $30K to contract to finish house: suit means more delay

Car dealers caught adding $10K to sticker price bec they can even for good customers

Your emergency surgery delay may kill you: preventable Covid victims take ER spots

Covid vax: many would rather lose job and die than take gov cure: 712,000 dead so far

First ‘abortion vigilante’ to earn $10,000 by reporting abortion crime under new TX law

GOP Supremes set to repudiate abortion “settled law” despite former promises: liars!

19 states passed this year laws to restrict voting Constitution says voting is a right!

Jobs

Hospital staff to replace those afraid of vax

NYS's largest healthcare provider, Northwell Health, has fired 1,400 employees no shots

Vax mandate in many business creates openings for millions

Who owns your account now?

National Flood Insurance rates up for storms rise: $20 Billion in debt too

Condos you don’t want to buy/invest: 432 Park: need helicopter when elevator out

Make old-fashion toys for the kids this holiday: holiday goods sitting on Pacific & docks

Best Medicare Advantage plans: JD Power ratings of services, info, costs, etc

Average portfolio retirees near retirees: 35% stocks, 26% cash, 15% bonds, 9% real estate

Miracles:

woman-coma-covid-delivers-miracle-baby-after-postponing-vaccination-1634927

Climate change killed 14% of the world’s coral reefs in a decade: we are next?

Priceless friendship

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/

Wisdom comes only thru suffering Aeschylus

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

Friday, October 1, 2021

Why is the boring target-date fund right for you?

Your advisor is costing you $8,800 or more

Do you know how much your advisor is costing you in terms of long-term accumulation? Most folks do not know because their advisor does not publish the benchmark returns that compare their returns to published statistics. Folks who use index funds automatically see how they are doing with their ultimate goals. So far this year, their account has grown by about 19%. Over the last 10 years, they have advanced over 16% per year. If they have been contributing their tax refund—about $3,000 a year—they have accumulated another $75,500. The average advisor costs run 1-2% a year between annual expenses, trading fees and bad market timing. Depending on your situation, you may have lost $8,800. Because of compounding over time, you may end up with only $569,000 instead of $882,000 using advisor cost averages. That is a lot to give your advisor: your $313,000 pays for their children’s education. But then who pays for yours?

Earn more automatically: https://www.amazon.com/Best-Robo-Advisor-Ultimate-Automatic-Management/dp/1537111957

Is auto-home ‘bundling’ right for you?

Sounds good but most folks find it is not right for them. Why? Bundle benefits go to the insurer not to you. Buying both auto and home insurance from the same company assumes one insurer can provide the best deals for you. That just doesn’t happen. Insurers price their products differently depending on their financial needs. You can save $ thousands over time by taking advantage of their shifting marketing strategies and also changes in your needs. For instance, insurers in CA and WA have had to raise rates as more fires got worse in recent years. If you have the same insurer in AZ your rates have also gone up. On the other hand, driving and commuting have been reduced so your rates are now found in the ‘leisure’ category. If your credit score has improved, your rate could be lower but only if you shop your vehicles to other carriers. Insurance agents don’t have an incentive to call you when your rates could be lower. Or they don’t know that you now have a minor on your policy or that you now have a dangerous dog. You can’t know you could be paying less for 10-20 years unless you compare rates often. Each insurer has their own set of discounts so you may qualify for more with a new insurer.

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

Is your family member a scam target?

Certain folks are more likely to be scammed than others. Consider how the results of this study may impact your family members. The scam target is not likely to ask questions of an offer or product or agent. Researchers propose that mental frames governing compliance, opportunity, intelligence, and order may have affected the way that interviewees interpreted what scammers told them. Individuals were more likely to lose money if they believed that:

Authority should not be challenged.
Financial opportunities are a zero-sum game with clear winners and losers.
The world is organized in a way that rewards good people.
Asking too many questions can make a person seem ignorant.

Study participants explained how scammers reached out with promises of easy money or lucrative investments. Others described receiving phone calls from fraudsters posing as IRS agents and demanding payment of back taxes. Some scammers pose as eager lovers who promise to pay you back. Natural disaster victims are especially vulnerable to scammers since desperation makes us perfect prey.

Educate your family: https://www.amazon.com/Money-Scams-2014-insurance-financial/dp/1505437962

Is prepaying your funeral right for you?

Covid deaths—now over 700,000 and counting—have some folks thinking about the future. What is new is paying for your departure in advance to a lay-a-way company with no track record. Funeral homes have had their own ‘pre-need’ accounts for centuries. Of course your prepaid account may not last long enough: there are business failures. However, like buying life insurance for final expenses, paying for a funeral on a lay-a-way basis is not the best solution for this expense. Some plans offer a price ‘guarantee’ but how do you know they will provide the expected services. Some new ones offer affordable monthly payments in advance. Some claim they will hold the money in a bank and move the money to a funeral anywhere in their system. A better way is to designate some of your legacy for your final appearance. Since you don’t know about costs in advance, you may want to leave a note with your will explaining what kind of show you want and how much to spend. You need to designate a trusted executor to follow thru on your plan. My plan is cremation by the medical school when they are done with me. God knows what is on my tombstone. Relatives may want to give a toast at the final dinner.

Your plan or their plan: https://www.amazon.com/Your-Plan-Live-Age-100/dp/1548180793

Why is the boring target-date fund right for you?

Tests and surveys have consistently shown that steady contributions—the same amount each month—to these low-cost index funds provides the best chance of reaching the maximum accumulations over time. This boring investment strategy beats any advisor or computer-run strategy because the market swings are unpredictable. Most investors and their advisors think they can do better than the market index funds. Hubris was identified early in human history as being the cause of one’s downfall. Morningstar, the investing analyst, ran some extra simulations and DCA (dollar cost average) does possibly account for some of the gap in returns, but a perfectly-steady DCA investor still outperformed the real-world investor in 6 out of 7 fund categories. DCA can’t be helped if you are simply investing what you can, when you can, but there is still extra trading in and out that appears to only make things worse. Market timing, the effect of using ANY investing strategy, has no benefits for you except maybe in the short term. Warren Buffett advocates this “dumb” way of investing because it succeeds.

Go with Buffett: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

Help your child or grandchild learn to manage money

Instead of buying your child or grandchild life insurance to make sure they have coverage in the future, buy them financial literacy. Give them a leg up with money making skills. The old advice still works: Give a person a fish, you feed them for a day. Teach them to fish and you feed them for life. Make sure you teach your kids how to create wealth the easy way. My parents were not investors. At my first job, I had no clue which investment option to use for my 401k contribution and company match. The HR person told me to put it into the 'safe' stable value fund. That was the worst choice at my age I learned later when I got my securities licenses. If I had followed their advice I would have ended up with $150,000 instead of a Wealth Reserve of $877,233 about 33 years later. We have used this 'Wealth Reserve' as I call it to have funds to use low-cost high-deductible insurance, to buy two homes and 5 cars with higher down payments or cash, and now to receive $2,500 a monthly in retirement supplement. Advisor fees take HALF your funds.

Follow 3 steps: https://www.amazon.com/Give-your-child-leg-manage/dp/1096505355

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

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

Our Jan 6 ‘Truth and Reconciliation Commission’

Subpoenas for Trump’s failed government overthrow

Domestic terror double foreign terror

Another terrorist of failed Coup guilty

Trump’s overthrow plan in 6 steps

How Govt wastes our money:

Longest war is over so why give Pentagon $24 B more? Peace dividend for more bombs?

GOP to let America default on debt to show Dems who’s the boss: win at any cost!

Domestic terrorists, real threat, evade our $52.6 Billion intelligence and legal systems

Debt ceiling acting out: how can we take these squabbling kids in Congress seriously?

Why the national debt keeps going up: some Americans don’t pay their fair share

Manchin not support infrastructure bill since coal-use rules to reduce climate change

SCAMS/SPINS:

GOP confirms Biden win: $6 million AZ recount found more votes for Biden

62 ships but no trucks: transport costs rising and we pay higher prices for items

Car warranty scam: third-party warranties not worth it: don’t cover many repairs

Caught: Never give your kids work files: they might save evidence of your fraud

TX taxpayers to fund Trump request to see if he really won in 2020: Biden won TX?

CA allows every voter to mail-in ballot from now on just like Trump does, not like TX

Federal bankers caught: insider trading: bankers bought what they voted Fed to buy

“Brand ambassador” scam: you get promo exposure if you buy product but it’s broken

Fake media is so easy to make we have to check with other sources.

Employers are embracing software that allows them to track workers online.

Colonoscopy center charged ‘facility’ fee $345 despite Medicare’s FREE screening.

$54,000 TX Covid tests: America’s health system will bring socialism eventually

OK is tops in death by police: 84% of police killings since 1980 were unreported

Get out your guns: Murder rose by almost 30% in 2020: if everyone packs, no murder?

London police warn women to be wary of lone officers after Sarah Everard murder

Supremes claim not political: decisions to reverse Roe v Wade, gun control, vote rights!

Jobs

High-paying jobs that don’t require long experience record: $56-66,000 a year

Police and fire in LA spread Covid to public: LAPD ‘freedom’ beats your safety/service

State workers would rather quit than take vax: brain washing complete!

NC hospitals need vax ready med staff: fired 175 Monday: more have warning

13 Home-based jobs certain careers: high pay

United Airlines Prepares to Fire Employees Who Refuse Covid-19 Vaccinations

Who owns your account now?

Where is your long-term and short-term money?

Phone companies required to block any incoming traffic on list: will they bother?

Miracles:

Permian mass extinction: rapidly rising CO^2 from volcanic eruptions in Siberia

Ugly buildings: contest to see how bad it can be

Iceland has elected first female-majority parliament: future of Congress working?

Berlin’s first female mayor Fran after historic electoral gains for her center-left party.

Let’s talk about courage: Zion knows: when you feel frustrated to continue.

Retirement fund build up: Stones back on the road working for more cash

Custodian Chris, no car, walks miles to work so teachers bought him used Chevy`

Biden finally reverses Trump: penalties for killing birds confirmed

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/

Wisdom comes only thru suffering Aeschylus

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

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

Friday, September 24, 2021

The only advice you need for financial success

I managed financial sales programs in brokerage and banking firms as well as my own company. I learned that we made things complicated so that we could take commissions and fees from product buyers that were not the best for most folks. Yes, there are special circumstances for special costly products but 98% of people don’t need them. For instance, most people waste money purchasing whole or universal life insurance with a savings component. In like manner, high-cost mutual funds and packaged products are a waste of money for most folks. Advisors won’t tell you this but Mr Buffett will. He does not need your fees. Sales people only make money with products that cost you more: end result, you earn less than you would have if you followed unbiased advice. Advisors don’t sell unique financial best buys that are tailored just for you. They can’t. Their firms would be out of business. Warren Buffett gave us the simple best advice: buy and hold low-cost Vanguard funds. He proved it by betting $1 million his choice would beat the top hedge fund options. It is time and compounding that makes you rich.

Use the best: https://www.amazon.com/Warren-Buffett-Your-Investment-Advisor/dp/1518690963

Buy life insurance when you don’t need it

Most of us don’t buy life insurance until we have someone to protect. This is not always the best strategy but it is reasonable. I bought life insurance with a saving component (Universal life) when my wife and I had a baby. I gave it up 10 years later as soon as I discovered I could save a huge expense by buying term and investing in a mutual fund earning over 12% per year. Instead of paying $250 a month for enough coverage to protect my family, I could buy $1million for about $21 a month. By the time our child left home, I did not need coverage at all (term gets expensive after age 55). I put the $250 a month into a broad market stock fund. If I had purchased the fund and term life 10 years earlier I would have had my $2 million retirement fund earlier. I could have retired earlier. I would never need the $250,000 life policy.

https://www.amazon.com/New-Tax-Free-American-Retirement-System-Reserve/dp/1461030072

Stock buying sale!

Do you really think that the US will default on its debt? Do you own China real estate for a loss? Will the economy collapse when our government (the Fed) stops propping up capitalism by selling the corporate bonds it bought in 2020? Wall Street selling on Monday despite economic growth seems just a fake news story to generate activity and revenue. Where else can investors go—bonds pay 1.3%? My September BUY light went on. Bits fell but if you own virtual money you already are prepared for speculative swings. The real economy is humming along very well—17+%. You have heard the line about ‘taxing the rich’ before and yet we are well on our way to the most unequal Robber Barron period in the history of the world. At this point, the Dems couldn’t pass a ham sandwich. Facts are clear: Bezos, Musk, and Icahn managed to pay virtually no federal income taxes at all while breaking no laws. Like the former reality TV star, they have discovered enough cracks in our system to leave the IRS impotent. They just moved their assets to places where the US can’t tax them. Since that won’t change soon enough, you should do the smart thing so you don’t get charged for their taxes.

https://www.amazon.com/Warren-Buffetts-Vanguard-Funds-Retirement/dp/1496148592

Is a “structured note” right for you?

Up side and down side are not clear in advance. In theory you would enjoy upside potential growth with low down-side risk. However, the truth is in the details. Call risk, lack of liquidity, and inaccurate pricing are other disadvantages of structured notes. A five-year bond with an options contract is an example of one kind of structured note. Your advisor will claim a SN gives you diversification but you have better options. Check the issuer for yourself since the seller may not share the risks with you. You may have trouble unloading a SN if you need cash fast. The issuer can end your contract anytime. Remember, no one gets paid to give you a great deal.

Get diversity here: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X/

Are you using your retirement funds too fast?

Without the guaranteed income stream that a pension provides, baby boomers may run a higher risk of outliving their retirement savings, known as longevity risk. In fact, according to a new survey by Siliciano and Wettstein found that retirees with pensions (defined benefits) had slower drawdown rates than those without fixed payouts. The survey compared the drawdown speed of retirees, both with and without access to DB plans, at age 70, 75 and 80. At all three ages, retirees with DB plans had slower drawdown rates. The researchers concluded that baby boomers who base their forecasts on the drawdown speeds of past generations “likely underestimate” the speed at which they’ll go through their retirement savings. On the other hand, some retirees spend more early in retirement (traveling while they still can) and assume they will need less when they are older. A one-time fee financial planner can help customize a plan for your needs.

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

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

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

Our Jan 6 ‘Truth and Reconciliation Commission

Trump ideologue Bannon planned failed Coup

Generals feared Trump refusal to give up power

General regrets being used: “Trump military display”

How Govt wastes our money:

Gov admits they kill 10 Afghans not terrorists bombs: drone driver can’t ‘see’ family

GOP helps kill over 690,000 of us, beating 1918 flu record: Will your kids be next?

The $28 trillion national debt rose $7.8 trillion (40%) Trump/GOP tax breaks for the rich.

FBI assisted hackers cost business schools hospitals $ millions: ransomware key withheld

Congress can’t reform police: killing beating continues with impunity shoot/taze OK

TX parks cars near river ‘steel wall’: but immigrants can walk around: state workers walk

SCAMS/SPINS:

Trump terrorists threaten reps who voted to impeach: “toxic dynamics” against family!

Capitol Police recorded 4,135 threats against Congress: domestic terror empties Capitol

McConnell: Republicans will not vote to increase the authority to borrow: bankrupt US

Thomas: Supremes’ politics ‘destroying our institutions’

Southern Baptists have hundreds sex abuse cases like Catholics: perps remain out of jail

TX adopt more babies: Birth choice shifts to Christian Nationalism’s cradle to grave care

TX doctor: 'I had a duty of care': we can’t let pre-Roe bad abortion deaths happen again

125 IU Health workers lost their jobs due to COVID-19 vaccine requirements.

27% of health care workers have not been vaccinated: carriers make patients sicker

Anti-vaxxers send kids home from schools; teachers quit; hospitalizations jump; kids hurt

Anti-vaxxers won’t be around to vote Biden out in 2024: no MISS ICU beds left

Fox: 54% favor proof of vaccination in indoor spaces like restaurants and gyms

LA getting control of Covid hospitalizations: masks and vax work

Covid victims billed for care at full hospital prices: end to gov help, insurers want profits

TX anti-mask really aggressive: kick couple out and punch hostess in NYC: Civil War II

Unruly unmasked air passengers should be given a parachute and pushed out the door

North Carolina judges cancel voter ID law: right to vote “not be denied or abridged by … State”

Daryl Bank FL caught selling unregistered securities fraud $25 million ‘safe returns’ 35 years jail

Credit Repair Cloud Daniel Rosen caught helping firms charge unlawful fees for credit repair

It is so easy to make a fake; teens learn how to tell the real thing

Fake diabetes cures and claims by drug firms: will FDA letters stop greed? Bamboo cure?

FTC Complaint Against New Balance for Misleading ‘Made in USA’ Claims

42% of Texans would vote to make Bitcoin an official currency.

Nursing homes with worst record of care: average cost semi private room $7,441 /month

Food prices jump 40-50%: 14.25oz can green beans $.50 to $.69 in one week NJ store

Boy Scouts to pay $10,000 for each sex abuse case: all adults get off free of liability/jail

CA running out of water and wealthy keep watering

Car gadgets make us dangerous: no focus even for a second may kill

How to Avoid Being Scammed on Facebook Marketplace

Avoid home buying errors: a little plan saves $ thousands

Jobs

Retiree work for love or money

Alaska needs 500 health care workers for stretched hospitals

Who owns your account now?

Chrysler had over 250 problems according to new car survey: Audi,VW,Acura over 200!

Insurer to use robot and drones to settle our big claims: can you talk robot?

Tenant screening: personal details used in secret algorithms to rate you as tenant.

Fed rate hikes in ’21-’22: credit cards, mortgages, auto loans go up: pay down this year

Miracles:

Anti-vaxxers flying on plane sitting right next to you: no vax mandate for Covid carriers

Trump sues reporters who claim he’s not self-made $billionaire: $413 million from Dad

Free media streaming: movies, ebooks, TV, etc

Columbus did NOT discover America: 22,000 years old footprints NM kids did

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/

Friday, September 17, 2021

We are paying more taxes than US corporations

Why do actual investors earn less than their benchmarks?

A recent study found that, while certain mutual funds and ETFs delivered a 9.4% average annual total return for the past decade, the average investor in these funds got only 7.7% due to poorly timed trading activity. This really hurts those who are investing for a big goal like house down payment or retirement or business start up. Over time, a $250 a month investment would reach $1.3 million WITHOUT the trading activity. Timing the markets would result in total accumulation of only $805,605—a loss of $494,395. In another study, Fidelity found that its accounts that did the best were those for which the owners forgot about them. Investing is simple to be successful but not easy. Gambling is hard to be successful but easy to do. Successful investors have 3 ‘pots’ of money: Patience for the long-term goals and impatience for the short-term get-rich-quick schemes. The third pot pays for living expenses.

Go simple: https://www.amazon.com/Keep-Simple-Essential-Financial-Life/dp/1492258849

What is the single most important reason for financial failure?

You are right; it is debt. If we had no debt, especially interest debt that can NOT be deducted, we could easily reach our long-term goals. We have credit card debt, mortgage debt and car debt. We borrow an average $34,635 for new vehicles and $21,438 for used vehicles. The average loan term is 70 months for new cars, 65 months for used cars and 37 months for leased vehicles. The average monthly payments for new, used and leased vehicles is $563, $397, $450. And this is an era of low interest rates. Interest is NOT deductible unless your company leases your car. So how is financial failure defined? How much do we lose with our vehicle loans? Investing $563 for 70 months could yield $59,541. Investing instead of buying on time provides enough money to buy a vehicle outright. This is why the wealthy pay cash for their rides. Their cash is special: their cash is compounded cash. They earn the money we pay on debt. We pay 9.46% they earn 9%.

Earn interest; don’t pay interest: https://www.amazon.com/Compounded-Cash-Save-your-Self-Funded/dp/1515066096

Most Americans are paying more taxes than US corporations pay

In fact many large profitable companies have Negative tax rates—taking our money as a refund. Most tech companies, including Oracle, Adobe and Microsoft are still paying much less by using an accounting trick to report profits outside the US. Many large profitable firms like Wells Fargo, Salesforce, AbbVie, Duke Energy, Adobe, Broadcom, IBM, Medtronic, and GE have a negative rate—We actually give them our tax payments. The rest pay lower rates than we do: NVIDIA, NextEra Energy, Bank of America, Pfizer, and Texas Instruments pay the lowest rates. The average overall company tax rate is only 19.7%. Our average is 32.9% including Fed, state, SS, Medicare, sales and gas taxes. This does not include property tax which some of us pay. We don’t receive a state subsidy like the $3 billion state subsidy that Foxconn got in 2018. Some call government-supported corporate tax refunds and grants US socialism.

Avoid paying their taxes: https://www.amazon.com/New-American-Retirement-System-ReserveTaxFree/dp/1461030072

Insurers may be overcharging you for coverage

Insurers use our credit scores and history to set premiums for car, home and rent insurance. Other service providers (rental agent, mortgage and auto loan) may use credit scores to set their charges. The CARES Act placed a temporary hold on reporting negative credit information to bureaus that collect credit history. When the hold is lifted, you may get whacked with increases in everything if the pandemic has disrupted your life. Some insurers recognize that the pandemic has had a disproportionate impact on the credit scores of some racial and income groups. Some are making it their business model to switch to a usage-based approach. Insurer Root’s usage-based approach can define a new industry approach that ties driving risk directly to driving habits rather than proxies. Thus drivers who speed, text and cause accidents may have a lower premium than safe drivers who have filed bankruptcy due to a medical catastrophe. Thus some insurers may offer you a better deal but unless you shop every 2 years you won’t know. And don’t forget to check for excessive car repair problems before you buy again.

Shop and save: https://www.amazon.com/Vehicle-Insurance-Beware-Double-Coverage/dp/1480027634

What is your plan for your next financial stress?

Most of us have no plan to deal with a financial emergency. A plan BEFORE a crisis while in retirement would provide us with peace of mind—one of the most important goals we have. I hear about folks that are overwhelmed by a medical expense event, a family member money request, and a huge loss in retirement savings. In a recent survey, the most common answers given by folks age 40-73 were ask family and friends, children, church/state agencies, work and downsize to live on SS benefits. These are desperation measures, not a plan. My experience with folks who made a plan shows that building an emergency fund of HALF a year’s expenses works best. These folks kept that emergency money in a balanced fund like Vanguard’s Wellesley Income not a bank: they earn 7% not 1%. First, you feel better. Second, the money gives you time to figure out what to do. Third, the crisis may be over in a year. Make a plan using the tools that are available online for FREE.

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

How to protect your retirement funds and keep them growing

The best protection is not putting your money in bank products, money market funds, an annuity, or bonds. These are the vehicles I see folks using because their advisors told them to “protect” savings in “safe” accounts. However, as inflation rises, they will lose buying power—probably for a long time to come. Unless you know you will die in a couple of years, fixed return investments will starve you to death. All of the traditional “safe” places are providing Wall Street with great revenue. However, these places don’t help you. Over the next 30 years, you could be giving away HALF your potential nest egg. The best way to protect your funds is to grow them—the best defense is a great offense. Growth and security come from a combination of stocks, bonds and real estate holdings. Over time, your nest egg will continue to grow with stocks while bonds and real estate provide stability. A low cost balanced fund provides steady total returns of over 7%. For instance, Vanguard’s Wellesley Income Fund has provided 40 years of solid returns over 7% on average. Retirement income is thus a combination of interest and dividends. As part of the Vanguard Top Ten funds, investors shift more of their assets to this fund as they progress in retirement.

Pick growth and income: https://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X/

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

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

Our Jan 6 ‘Truth and Reconciliation Commission’

9/11 Bush warns of “domestic terrorism”

Will “domestic terrorists” install Trump Sat?

Generals planned to stop Trump from starting WWIII

How Govt wastes our money:

GOP requires gov ID to vote and drive but requires no Covid vax card to touch kids

Your freedom; their deaths: Anti-vax anti-mask Christians killing babies with Covid plague

Saudis caught helping terrorists kill us: why we still giving them weapons/intelligence?

Lindsey wants to re-invade Afghanistan but he won’t be leading the charge: sending kids