I mentioned recently in another article about those with 401K plans finding that the growth of those plans being drastically reduced by all the little fees that are apparently not supposed to be.
In another negative example, my Aunt Mary had her wish to live to be 100 and then she left this world. As it turned out, she left me a few bucks.
One day, a little more than 12 years ago I went to what then was The Bank of NY to deposit the check I had received. It happened to be the day the investment officer was there.
I was asked if I wanted to invest the money in an annuity. Of course, why not I thought. I knew that eventually I would have a pension of some value and why not an annuity also. The amount of the money was not more than I could afford to lose and besides, annuities are trustworthy, right? It has been a disaster.
What seemed so simple is so much gibberish. It has been hovering for whatever reason at pretty much the same value for years and always less than what I paid for it. I am unable to get any reliable answers to the questions I ask.
When Elliot Spitzer was attorney general he investigated the company (Allstate of NY) and ‘they’ pretty much just laughed at him.
For numerous reasons I will one day put it in the hands of one of our U.S. senators who claims to be for the protection of consumers.
At present, Chase Bank is only willing to pay me one hundredth of 1 percent interest on my savings account. Capital One Bank brags that it pays five times as much: five one hundredths or one twentieth of 1 percent.
I have been collecting my pension now a number of years: an American Federation of Musicians ERISA fund.
Any time I worked under a union contract, the employer paid a percentage (depending on the category of the work) based on the wages into the fund in addition to the wages.
There are union and employer trustees guarding this pension fund who receive no compensation. Still, it has investment consultants and advisers, actuaries and administration expenses. As it stands, the actuaries determined that for every $100 contributed to the fund I would receive four dollars (4 percent) every month for as long as I shall live. Twenty years would be 960 percent. Not too bad.
There are two corporations I like for their products and purposes. About two years ago there was a slump in the stock market.
I checked out the two corporations on the internet and they seemed okay. I am an amateur at this but considering what my savings account was paying me, I went to a local stock broker and bought a small hand full of shares in each corporation.
Guess what? In two years or so one is up 100 percent and the other is pushing 150 percent. I more than doubled the money in this short time.
Added to that dividends came like Canadian Geese lay eggs. They covered the brokerage fees and I still have a brokerage balance enough to buy another hand full plus more than my total savings account would pay me in like 500 years. All this and no slick Wall Street trading. I will leave those stocks in place.
Two bright-side stories. It does lend evidence that much money is being made at the top.
Capital One Bank just sent me a notice that it would pay me $200 to open an IRA account. No, thank you! IRAs, 401Ks, annuities and perhaps mutual funds – the same pitfalls. All those fees and who knows what else.
So, up in Albany, they are in charge of investing for the teacher’s pensions. I don’t even want to think about it. If I doubled my money in two years, we the taxpaying public are being kept in the dark.
Also, keep wages and salaries low – more profit at the top. Those who through their work creating the wealth are hit from both sides.
Funny how elected officials always seem to get rich.
While I am at it, I have mentioned in the past that there needs to be a way of determining the true value of a home. Prices are recovering and banks are itching to puff up the bubble again and have home buyers paying for what does not exist. The true value is probably around the collapsed bubble level.
And yes, our governor is welcome to read my texts, emails and listen to my phone calls all it wants. At worst, they might blush at something.
Security for all of us first.
Charles Samek
Mineola
