Tuesday, May 30, 2023

How to Generate Income With Your Bank Account

Eager to learn how to generate more income with your bank account???

You aren’t alone. Big banks are royally screwing over millions of Americans.

In fact, the five (5) biggest?banks –?Bank?of?America (BAC), Citigroup (C), JPMorgan Chase (JPM), U.S. Bancorp (USB) and Wells Fargo (WFC) – pay an average annual percentage yield (APY) of 0.4%.

That’s four-tenths of 1%!!!

On a $100,000 deposit, that’s just $400 in interest per year!!!

The national average is actually a bit lower – a measly 0.37% APY. At that rate, it would take 27 years for $10,000 to grow to $11,000. That’s a paltry 10% increase in value after nearly three decades.

In other words, your savings are rapidly losing value, since that’s nowhere close to keeping pace with inflation.

An analysis by The Wall Street Journal showed that since 2014,? Americans have lost out on $603 BILLION simply by keeping their money in?one?of?these PATHETIC savings accounts.

BUT, thankfully, there’s one, seven-minute move you can make to easily make more money from your bank account…

What Should You Do With Money Sitting in the Bank???

The 7-Minute Move

Recently, my friend was stuck in a Bank of America Gold savings account. His account paid only 0.02% per year.  

His money was just sitting in the bank! So he was essentially earning NOTHING!!!

He approached me about the situation, because he knew he needed to make a switch. He hadn’t made the switch yet because he liked having all his money in one place, sitting in his bank.

BUT, when he finally made the leap, he was amazed at how easy it was… 

After being online for just seven (7) minutes, he had his money in a new account, producing hundreds of dollars in income.

So what did he do exactly???

He switched his checking and savings account – allowing him to get “P.A.I.D.” more income on the money he has tucked away in a rainy day fund. 

YOU, ME, WE the ATWWI FAMILY can easily make this seven (7) minute move as well…

Where Can I Put Your Money to Earn the Most Interest???

LendingClub Savings Account

He put his money into a high-yielding savings account with LendingClub, and now he’s earning a 4.25% APY on his entire balance… 213 times more income than he had with Bank of America.

LendingClub is part of the growing “FINTECH” industry. Fintech is short for Financial Technology and is used to describe new technology that seeks to improve and automate the delivery and use of financial services.

Most fintech companies operate virtually… without brick-and-mortar operations. This provides a huge cost-saving advantage, which the fintech can pass to customers in the form of better rates, more services and quicker response times.

LendingClub started out primarily as a peer-to-peer lending site but has since shifted its focus to personal banking with FDIC-insured checking and savings accounts.

He chose LendingClub, but he had plenty of options available... and so do you.

More Tips on How to Make Money with Your Bank Account

Besides LendingClub, there are plenty of other options to upgrade your savings account.  

Here’s a list of the top-yielding savings accounts right now (as of May 31^st, 2023).

• CIT Bank: 4.85%

• Laurel Road: 4.80%

• Bask Bank: 4.75%

• Citizens: 4.50%

• My Banking Direct: 4.38%

Is it worth the seven (7) minutes it takes to look into this to possibly generate extra revenue this year???

ABSOLUTELY!!! 

I urge you… if you have low-interest savings or checking accounts with one of the big banks, PLEASE move your money out of that account and into something better. 

Also, here’s what I love about LendingClub and similarly minded institutions… They proactively increase your rates!!!

With the BIG banks, you have to “BEG” to get a higher rate.

Since joining LendingClub, he automatically gets increases in his rates without ever asking. 

Listen… making changes can be tough. But when you think about it… WE’RE the problem. We ALLOW the big banks to get away with robbing us blind and never raising our rates.

Trust me, they have not hesitated to jack up their rates on mortgages to 7%… or on credit cards to more than 20%. They did that the first chance they got. 

Yet big banks continue to hope nobody notices that they haven’t raised their payouts on our savings.

So don’t be afraid to move out of the traditional banking system to get a better deal.  

I guarantee it will be easier than you think. You will have hundreds or thousands more dollars in your account, and you will wish you would have done it sooner.

PEACE & BLESSINGS

Kenneth Reaves, Ph.D.

Monday, May 29^th, 2023

Why You Should Consider REIT Preferred Stock & Indexed Insurance Policies

In today’s tumultuous financial landscape, where markets swing like acrobats and economic uncertainties loom large, individuals are on high alert, searching for the most effective means to shield their investments from crippling losses and ensure a steady stream of income during retirement. 

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With recession signals flashing, inflation charging ahead, and interest rates playing a game of seesaw, the quest for "RELIABLE" retirement income has never been more pressing. Against this backdrop, two fascinating avenues emerge, each offering a unique blend of defense and financial gains even when the markets are down. Indexed insurance policies and REIT preferred stock take center stage as compelling options that strive to not only protect but also score financial points. These two (2) options provide financial protection and reliable retirement income, even in challenging times.  

Here’s what you should know about them:

#1 Indexed Insurance Policies: 

Indexed insurance policies are an excellent means of safeguarding your principal while benefiting from market upswings. Insurance companies offer these policies, allowing you to “INDEX” your investment and retirement portfolio. Essentially, you earn interest based on the positive performance of a stock market "INDEX". Thus in years when the market performs well, you can earn interest. 

Conversely, during negative market periods, you do NOT earn interest, BUTmore importantly, you do NOT suffer any losses either. This ensures that your principal remains shielded against stock market downturns, providing peace of mind and a reliable foundation for retirement income.

NOTE: There are drawbacks as well. Indexed insurance policies can be complex financial products with various fees and charges. Indexed insurance policies also often have caps and participation rates that can limit the amount of interest credited to the policyholder.

#2 REIT Preferred Stock: 

Another avenue for generating stable retirement income is through REIT preferred stock, which combines the characteristics of both EQUITY and BONDS. REIT preferred stocks often offer higher dividends than REIT common stock, making them an attractive option, especially during high inflation. While REIT preferred shareholders may not have voting rights, they can benefit from investing in discounted issues. Typically callable between two (2) to five (5) years from the date of issuance, REIT preferred stock provides the opportunity for both income and capital appreciation. 

Additionally, owning “DIRECT ISSUANCE” preferred shares, which are not subject to market volatility like common stock or traditional preferred stock offerings, can effectively secure consistent dividends of 6% to 8% annually without being affected by market fluctuations.

NOTE: While REIT preferred stocks can provide a consistent income stream, they may have limited growth potential compared to common stocks. ATWWI FAMILY members seeking substantial capital appreciation may find that the returns from REIT preferred stocks are relatively modest.

By considering these two (2) paths to reliable retirement income, YOU, ME, WE the ATWWI FAMILY can actively protect our investments and enjoy financial stability even during volatile periods. Adapting your/our investment strategies to the current economic climate is important, and focusing on defensive approaches can help ensure a secure financial future.

It’s important to note that indexing and REITs have advantages and drawbacks. It will be beneficial to analyze all available options and assess your individual circumstances. This will help you determine which option aligns better with your financial goals and "RISK" tolerance.

Additionally, a well-diversified portfolio will  combine different investment options to balance "RISK" and enhance your returns.

PEACE & BLESSINGS,

Kenneth Reaves, Ph.D.

Friday, May 26^th, 2023

Multiple (6) “KEY” Housing Factors For Successful Aging: Make Informed Decisions

When it comes to aging, everyone’s preferences and circumstances differ. While some may choose to remain in their current homes and “age in place,” others may need to explore alternative housing options. Making informed decisions about aging successfully requires carefully evaluating various factors that can influence one’s quality of life.

Remember that it is important for individuals, couples, and families to carefully assess their "UNIQUE" situations and make "INFORMED" decisions based on specific needs and circumstances. “Aging in place” requires a thorough evaluation of your health, ensuring that your home is accessible and safe, having a strong social support network, and considering the financial implications of staying in your current home as you age.

Here are the 6 (six) key considerations to remember as you navigate the decision between aging in place and moving to a new home.

1. Home Accessibility:

Ensuring easy mobility within your home is essential. Many houses are not designed with the needs of seniors in mind, making safety and accessibility paramount as you age. Consider making home modifications like removing tripping hazards, installing grab bars, widening doorways, and adding ramps. If relocation is possible, look for a home that accommodates your current and potential future mobility and accessibility requirements.

2. Social Support:

Maintaining an active social life is crucial for overall well-being. Creating and expanding your network of family, friends, neighbors, and community resources can combat social isolation. Engage with social clubs, senior centers, and religious communities. If you plan to move, research the availability of social support networks in the new location.

3. Healthcare Access:

Access to healthcare becomes increasingly important as you age. Consider the proximity and availability of healthcare facilities such as hospitals, clinics, rehab centers, and pharmacies. If you are relocating, ensure your insurance plan covers healthcare services in the new area or be prepared to find new insurance and doctors.

4. Transportation:

Giving up driving doesn’t mean giving up your independence. Whether you age in place or move, consider the availability of public transportation, rides from family and friends, neighborhood walkability, proximity to essential services like grocery stores, and alternative transportation options such as ride-sharing or senior transportation services.

5. Financial Considerations:

Evaluating your financial situation is crucial when making housing decisions. Assess the cost of home modifications, property taxes, maintenance expenses, and potential changes in your financial circumstances, including increased healthcare and long-term care costs. If moving, research the cost of living in the new area, including housing, taxes, and home care expenses.

6. Personal Health and Care Needs:

Account for your current and potential future care needs. Aging in place may require additional support for daily activities like bathing, dressing, and meal preparation. Research available resources such as Meals on Wheels, home maintenance services, healthcare providers, home healthcare services, family caregivers, long-term care services, and senior living communities.

ATWWI FAMILY, to age successfully, consider factors such as home accessibility, social support, healthcare access, transportation, financial considerations, and personal healthcare needs. Emphasize emotional well-being by addressing estate planning, advance care directives, and long-term care insurance. Communicate your plans to family members, beneficiaries, healthcare professionals, elder law attorneys, and financial advisers to ensure your wishes are upheld if you become incapacitated. By carefully assessing these factors, you can make "INFORMED" decisions about "aging in place" or explore alternative housing options that best suit your needs and circumstances.

PEACE & BLESSINGS

Kenneth Reaves, Ph.D.

Thursday, May 25^th, 2023

Demystifying Wall Street’s “MATRIX”

ALGORITHM (noun): a process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer.

As algorithmic trading becomes more pervasive, the investing world is starting to resemble the digital reality depicted by the movie The Matrix. But here’s the good news: YOU, ME, WE the ATWWI FAMILY can actually BEAT the algorithms used by the “BIG BOYS” on Wall Street.

Algorithms, aka “ALGOs”, are complex, which means that they follow certain rules and they are predictable.

For instance, the trading algos that operate the “PASSIVE” exchange-traded funds (ETFs) at Blackrock (BLK) and Vanguard have no emotions. They just follow their trading instructions based on the simple principle of their programming: “If this happens, do this.”

Moreover, unlike humans, they seem to learn their lessons. That’s because the programs that instruct them on how to apply their wares are adjusted by humans which helps the machines learn.

In the old days, the market was run by cigar-chomping guys who took three-martini lunches. Their main goal was to take money from the unsuspecting masses.

Those guys were “CLEVER”… AND worse, because of their human frailties and potential for doubt, they were hard to predict. Their actions often made for crazy markets.

That’s what the “ALGOs’ do, BUT there’s a BIG difference…

The wheeler-dealers of the past, once they made up their minds about what to do, were very good at covering their tracks. “ALGOs” are so fast in what they do that they either don’t care to hide what they’re doing or don’t have time to do so.

In other words, the "ALGOs" leave behind bread crumbs for YOU, ME, WE, the ATWWI FAMILY to follow…

AND if you know what to look for you can make better trading decisions.

In some ways, trading is often easier and can be more profitable now than when old fashioned stock brokers were in charge, if you know what to look for.

First the big picture: “ALGO” run the market. As much as 80% of the daily volume (stocks and options) is due to “ALGO” activity. They can be tricky in what they do, but they can’t change volume related metrics.

How can you make sense of volume data???

There are three (3) indicators that are found on price charts that tell you which way money is moving and which way it’s likely to go.

The Accumulation Distribution Indicator (ADI) is a sign of SHORT SELLER activity. When this line FALLS it means SHORT SELLERS, betting on a fall in price, are active. When this line RISES, it signals SHORT SELLERS are getting out of the position.

Their reversal of strategy (SHORT COVERING) causes the price of the stock to RISE. Moreover, it further signals that there is less resistance to a move up in price once the buyers return.

On Balance Volume (OBV) gauges buyer interest in shares. When it FALLS, there is net selling in a stock. When it RISES it means buyers are coming in.

When combined, these two (2) indicators show whether money is moving in or out of a stock.

Moreover, big long-term rallies in prices are more likely when both ADI and OBV are rising simultaneously.

The Third (3^rd) indicator is:

Volume by Price (VBP). This one is, in my opinion, the most important of them all in many ways.

VBP indicates where buyers and sellers are fighting for dominance of the price trend. Thus, a move above a large VBP bar, or a cluster of bars, means that buyers have gained the upper hand while a move below them is a sign that sellers are in control. These indicators are available on all major technical analysis programs.

So the upshot is, YOU, ME, WE the ATWWI FAMILY can get a good handle on what the "ALGOs" are doing after all.

There are two schools of analysis: Technical and Fundamental

Technical analysis should be viewed as a useful adjunct to Fundamental analysis. There is no substitute for thorough research of individual companies, especially in developing a clear overstanding/understanding of how management develops and executes strategies.

On the other hand, price charts paint a realistic picture of how the market (mostly “ALGOs”) perceives management’s actions and the company’s prospects. “ALGOs” are just a faster and more sophisticated version of traditional brokers.

PEACE & BLESSINGS

Kenneth Reaves, Ph.D.

May 23^rd, 2023

Two (2) “CRITICAL” Factors To Consider: Social Security And Medicare Retirement Age

The retirement age significantly impacts Social Security and Medicare, as it determines eligibility, benefits, and the long-term sustainability of these programs. The age at which individuals choose to retire can have lasting consequences on their financial security and the overall viability of the social safety net.

Passive Income Can Income Can Generate Wealth For You In Retirement

The sustainability of Social Security and Medicare relies on a balance between contributions and benefits. With the aging population and longer life expectancies, the retirement age has become a critical factor in maintaining the financial stability of these programs. As more individuals retire and claim benefits, the strain on the programs’ resources increases. 

Ultimately, deciding to retire at a particular age involves careful consideration of personal circumstances, financial planning, and overstanding/understanding the impact on Social Security and Medicare benefits. In deciding when to utilize these programs, keep the following points in mind. 

Retirement Age and Social Security:

Social Security, a vital income support program, is deeply intertwined with retirement age. The full retirement age represents the age at which individuals can receive their full Social Security retirement benefits. Currently, the full retirement age is gradually increasing from 66 to 67, depending on an individual’s birth year. However, individuals can opt for early retirement starting at age 62, albeit with a reduction in monthly benefits. Let’s dive into the data to overstand/understand the impact of retiring at different ages:

1. 1.Benefit Reduction: If you claim Social Security benefits before your FRA (full retirement age), your monthly benefits will be permanently reduced. For each month individuals claim benefits early, a percentage reduction is applied. For instance, if someone’s full retirement age is 66 but chooses to claim benefits at 62, their monthly benefits will be reduced by approximately 25%. This reduction remains in effect for the entirety of their retirement.
2. 2.Delayed Retirement Credits: Alternatively, delaying retirement beyond the full retirement age allows individuals to increase their monthly benefit amounts. For each year they delay retirement, they can receive delayed retirement credits, which result in a higher monthly benefit. For individuals born in 1943 or later, delaying retirement until age 70 can lead to an increase of up to 32% in monthly benefits compared to claiming at the full retirement age.

Retirement Age and Medicare:

Medicare eligibility is closely tied to the retirement age, and overstanding/understanding the relationship is crucial for individuals approaching retirement. Here’s a closer look at the data regarding retirement age and Medicare:

1. 1.Medicare Eligibility: The standard eligibility age for Medicare is 65, typically aligned with the Social Security full retirement age. Delaying Medicare enrollment beyond the initial eligibility period can permanently increase Medicare Part B and Part D premiums. Enrolling in Medicare on time ensures uninterrupted healthcare coverage and helps individuals avoid penalties.
2. 2.Private Health Insurance Coverage: The retirement age also affects the duration of private health insurance coverage for individuals nearing retirement. Many individuals rely on employer-sponsored health insurance plans until they become eligible for Medicare. However, retiring before reaching Medicare eligibility can create gaps in health insurance coverage, leaving individuals vulnerable. Overstanding/Understanding the relationship between retirement age and Medicare eligibility is crucial for planning and ensuring seamless healthcare coverage during retirement.

Choosing when to claim Social Security and enroll in Medicare can have a lasting impact on individuals’ financial Security and healthcare coverage. By examining the numbers, individuals can make informed choices that maximize their benefits and avoid penalties. Policymakers can also utilize this data to shape these programs and ensure their long-term sustainability in light of changing demographics and life expectancy. Ultimately, overstanding/understanding the data behind retirement age empowers individuals to confidently navigate their retirement years and make decisions that align with their unique circumstances and goals.

PEACE & BLESSINGS

Kenneth Reaves, Ph.D.