Monday, December 17, 2007

An Almost Near Perfect Account

Ready to Beat CD Rates? Try Annuities!
Long considered a CD alternative, annuities have become very popular today. Paying higher rates than CD's and deferring taxes, many people on a fixed income find annuities are a better option than tying up money in CD's or letting it warehouse in a money market account… Like a CD, you can place lump sums of money in annuities. You must leave the money in the annuity for a period of years, usually between 2 and 5 years. The longer you leave the money in, the higher your interest rate will be. Depending on the annuity purchased, a yearly amount is allowed to be withdrawn without a penalty. This amount is usually around 10%.
Is an Annuity Right for me?
In the past, annuities were considered investments only for people nearing retirement. But today, annuities can be smart investments for people of all ages. Remember, an annuity can be invested in a variety of different investment instruments, offering everything from modest to fast capital growth alternatives. The following are good uses for annuities:

  1. You want to make your long-term savings grow faster without current taxation.
  2. You need to save more for retirement, but you have "maxed out" your IRA and 401(k) or 403(b).
  3. You need to roll over (reinvest) existing tax-deferred savings, like pension plans.
  4. You need to guarantee yourself an income for the rest of your life.
  5. You need to guarantee yourself an income for the rest of your life and your spouse’s life.
  6. For purchasers of a special type of annuity called an Equity Index Annuity, You want to protect your "principal" with a guaranteed rate of return while investing in the equity
  7. You need a higher interest-rate alternative to Certificates of Deposits(CD's) and Money Market Funds.

Beyond tax advantages, there are important reasons to invest in an annuity, especially when you consider the limitations of other types of investments. Annuities can provide:

  • Guaranteed income. An annuity can provide you with a guaranteed lifetime income, regardless of how long you live. No other investment instrument can provide this guarantee.
  • Unlimited contributions. Unlike other tax-advantaged investments, such as IRAs, you can contribute an unlimited amount of money to an annuity during the year, whether in periodic installments or a lump sum. Individual carriers may place a ceiling on the total amount you may put into an annuity without approval.
  • Bonus rates. Some annuities award investors with bonuses -- extra interest that further increases your investment -- at the end of your annuity's first year. The bonus increases the annuity's principal on which future interest will be calculated in subsequent years, thus providing a substantial boost to the ultimate value of an annuity fund.
  • No risk of loss ("fixed" annuities). Unlike other forms of stock or fund investments, annuities that are invested in mutual funds or are tied to the stock market performance may include minimum guarantees to limit the amount of investment risk.
  • No-penalty annual withdrawals. Most annuities have a provision that allows you to withdraw a certain amount per year penalty free.
  • No-penalty rollovers. Company pension or profit-sharing plan payouts may be reinvested without incurring current taxes or penalties.
  • No probate in case of death, as long as you specify beneficiaries. Which means your family will find it easier and less costly to obtain the value of the annuity.
  • No initial sales charges ("no load") or annual fees. Annuities are generally no-load, no-fee investments, which means more in your pocket. Compared to other investments invested where some money is used to pay an initial or annual charge.
  • Shelter investment earnings. Retired people can use annuities to shelter investment earnings that would otherwise lead to taxation of Social Security benefits.

There are no "Perfect Accounts", but an Annuity can be near "perfect" for the right person! For additional information and a free computer printout please go to

Four Strategies to Help You Reduce Federal Estate and Gift Taxes

Federal transfer taxes can dramatically reduce the value of your hard-earned assets — and the value of your beneficiaries’ inheritance. When you add potential state inheritance taxes and other administrative expenses, your legacy shrinks further.
Even if the numbers do not appear large now, when you look to the future and calculate your estate growing at a conservative rate, the liability can be substantial.You can control your estate and effectively maximize your legacy with active planning and smart choices. Here are four strategies that may help to reduce the potential federal transfer tax obligations, allowing you to pass along more of what you’ve earned to your beneficiaries.

  1. Annual GivingMake annual gifts up to $12,000 ($24,000 if your spouse consents) to each of your children, grandchildren or their heirs.
  2. Family Limited PartnershipReduce the value of your assets and leverage your gifting dollars by transferring some of your assets to a Family Limited Partnership and gift portions of your limited partnership interest to your heirs at a discount.
  3. Special TrustsUse special trusts for making deferred gifts of assets such as a Personal Residence Trust or Grantor Retained Annuity.
  4. Generation-Skipping Transfer TrustProtect $1,110,0002 from federal estate taxes for your children and grandchildren ($2,220,0002 with your spouse’s consent) by setting up a Generation-Skipping Transfer Trust.

To learn more about any of these four approaches and how they might fit into your overall financial strategy, contact your Legal Financial Professional for more detail. This article is not a substitute for legal advice.

Saturday, November 10, 2007

The Life Insurance Debate

If you are in the market for life insurance, there are so many choices. Most people and financial experts do not understand the multiple uses of life insurance, and there is gross misunderstanding in the marketplace. Let's explore the types of insurance contracts.
Term Insurance
Term is pure death benefit. It covers a insured for a finite period of time:10,15,20,or 30 years. The premiums are fixed during the term period. If the insured dies during the term, the insurance company pays the death benefit to the beneficiary. If you live beyond the term, the policyholder in some cases is allowed to keep the policy, but the premiums increase based on the policyholder's age at the end of the term. In other words, your premium will be more expensive! Most "experts" believe in using term because it allows the client to have coverage while building up his/her 401(k)/IRA plans. Usually in this case, the goal is to build up the liquid asset base so the need of Term insurance is reduced or eliminated at the end of the term. The policyholder would be "self Insured" at that point.
Whole Life
Whole Life or Permanent Life provides Death Benefit and Cash Accumulation. The coverage will last the "whole" life of the insured. The premium payments are fixed for the "whole" life of the insured. When the Insured Dies, the beneficiary receives either the death benefit or cash value. The policy owner can withdrawal cash from the accumulation account while the policy is active. The cash account will receive interest earned based on the type of whole life policy. The insurance company will invest money and place some of the returns back into the policyholder's account. He/She can loan against the cash and pay it back. Many people use Whole life insurance for multiple uses: Death Benefit, Cash Accumulation, Wealth Transfer, etc. There are variations of whole life, such as Variable, Fixed, 20 pay, etc. Since Whole life is more expensive than the term insurance, the death benefit is lower based upon the cost of the insurance.
Universal Life
Universal Life was a brain child of EF Hutton back in the 1980s. It is a flexible insurance contract. It has the features of Term and the features of Whole Life Insurance. The policyholder can CHOOSE his/her payment. The policyholder can pay the minimum payment to keep the "term" insurance in force, or pay more into the cash accumulation account. There are different types of Universal: Fixed, Variable, Equity Indexed. These types just describe the type of accumulation account. Fixed is based on the returns from the Insurance companies' conservative investment portfolio. They will have a guaranteed floor and low maximum rate of return. The cost to run this type of UL is low. The next type of UL is a Variable. This was the answer of AL Williams crusade of "Buy Term and Invest the Difference". The VUL is term insurance with a sub account that gives the policyholder choice of various equity investment products(mutual funds). The gains in the sub account can grow tax free or tax deferred similar to a Roth IRA! This is an excellent product for someone who wants aggressive tax free growth! It has a high expense charge to maintain. Equity Indexed is a mix between a VUL and a Fixed UL. It allows some of all of the cash account to grow based on an external indicator such as the S&P 500 index. It provides the policyholder the ability to grow with the index, but not lose the principle when the index goes down! The expense to run a EIUL is between the Fixed and Variable UL.
With UL policies, the policyholder can use them to save for retirement. Here is why; due to the various laws in the tax code, insurance contracts can be structured to accumulate wealth TAX FREE! Death Benefits are not taxable in most cases! The accumulation account can be accessed TAX FREE with a loan without reducing the principle! That is powerful!
Critics of Universal Life
Critics of Universal Life have stated the upfront loads are expensive. If you had a World Class Race Horse would you feed to left over hay? The UL is a Race Horse if set up properly! The UL contract is the most efficient way to accumulate wealth and transfer wealth TAX FREE. Since various Laws and Tax codes have to be satisfied in the UL contract, the first several years will be front loaded. When purchasing a UL contract; only work with a professional that REALLY understands how these contracts function. Many have been sold a UL policy and have NO clue of the POWER of the contract; thus the critics of the contract. The loudest critics really have not researched these contracts either.
I personally think the the UL contract is an excellent tool to save for retirement, and you get the death benefit as an added benefit! You can use the Life insurance while you are alive! If you are younger, the VUL and EIUL are excellent options, and older people concerned about principle may look at a fixed UL or certain types of EIULs. The UL may not be for everybody or every situation. In some cases, the VUL/EIUL can out pace the "buy term and invest the difference" strategy due to the benefits of the life insurance contract. Why over fund a 401k/IRA when you will be taxed at 59 1/2 or at retirement? If most people think taxes will be higher, why accumulate all this money for the IRS to take away? That is the "buy term invest the difference" campaign. With the VUL/EIUL wealth building strategy, you can buy term invest the difference in the insurance contract; AND transfer the wealth TAX FREE!
We have to build a financial ark. They are many tools to assist us in the process. Life Insurance can be used as a tool to build the ark. Don't close off all the tools in the tool box, when you don't understand how the tools work. Do your homework and research on how the contracts work. Don't listen to the critics or so called "experts" check the Internet and find out the truth. One Trick ponies don't work when there are multiple ways in building an ark.

Friday, October 26, 2007

Its Raining! Use an Umbrella,Stupid!!!

Please forgive me for the Gen X language in the title of this post, but that is the ONLY way I can get your attention! Here in North Carolina, we are FINALLY getting some rain. As I was waiting at my sons' bus stop, I noticed the rain coming down. My sons in their brilliance and genius; were standing in the Rain! I said to them, "GET AN UMBRELLA, GENIUS!" Of course, they were not prepared, so they stood under a tree.
This is a simple example on the use of umbrellas. We don't buy them to look cute. We purchase them to use ONLY when it rains. In the insurance field, we have umbrellas also. They can protect you from bad situations(when it rains).
A personal umbrella is an extension of liability insurance from the underlying Auto and/or Home Insurance policies. They are very useful in protecting your personal assets from major claims. If you are driving without a personal umbrella, you are leaving your personal assets at risk in case of a major accident. If the accident damages are more than your liability limits on your auto policy, then you will begin to pay out of YOUR POCKET. The other party in the accident could potentially garnish your wages, file judgements, liens against you, or etc to collect the damages. You are probably saying," Well, I am a safe driver I don't need an umbrella!" That is a perfect reason to purchase one! The rates are inexpensive for good drivers! So why not provide extra asset protection for dollars or cents per day! If you are in North Carolina, go to to receive more info on Personal Umbrellas. If you are not in North Carolina, call your local Property and Liability Agent and ask about a Personal Umbrella..before it rains!

Sunday, October 21, 2007

Wealth Building for a Business Owner

Everyone knows that one of the secrets of building wealth is through ownership of a business. There are many different businesses that are successful, and plenty that are in the graveyard. Somewhere in between, there is the businessperson that is struggling to make payroll and other overhead expenses. Business owners have to retire at some point also. Their plan is usually to sell the business and retire. The problem is that most business start ups require a lot of capital. It may be years before that they can save for retirement. The longer the wait; the larger the monthly contribution for retirement.
What happens if their is a way to borrow the money for retirement? Great idea, right?
Let's think for a second, If I loan you 1 cent and allow it to double for 30 days, you would have over several million dollars. What happens if you start with $1,000,000? That is what business owners could have! Here are some key points to think about with this type of loan:
1. No personal guarantee-Guaranteed by the idle asset in the business
2. Simple Interest payback
3. Your money grows in a Triple compound environment!
4. Payback in 10,15, or 20 year periods.
5. Investment has a minimum guaranteed rate of return, loss of principle is zero!
6. Potential of Tax Free income for life at retirement
7. Potential of Income for life at retirement

Many business owners are taking advantage of this type of loan using idle business assets as collateral. This loan gives them the jump start needed to create a retirement income!
If this type of account is interesting, go to and register. You will need to fill out in the comment section, Business Asset Leveraging info. We can contact you to provide FREE information regarding this program.

Wednesday, October 10, 2007

Douglas Andrew - Pitcher and Goblet

This is an excellent example of how to rethink the use of your home as a wealth building tool. This simple but powerful talk shows what banks, investment companies, Insurance Companies have known for years. Enjoy!

Wake Up Your Sleeping Assets

How to Build Wealth Using Sleeping Assets!

We all know that we need to save money for retirement. There are several rules that we need to consider while saving for retirement.

First of all, we need to factor how much we need to place aside each month for the money to compound. Here is an example: If I gave you a penny or One Cent each day; and doubled it for 30 days, how much money would you have on the 30th day? The answer: well over $1 to $2 million dollars! Why is that? That is the principle of compounding.

Let’s take this concept one step further: What would happen if I gave you $10 on day one? How much money would you have on day 30? The answer: more than the $1-$2 million from the penny!

The key to these two examples is the fact that more money have to invest, the quicker it will double to your retirement or financial goals. Unfortunately, most people don’t have enough to start with the one cent!

We are teaching individuals how to start on the compounding curve with MORE money! How is that possible? Well for starters, if you are a homeowner, you potentially could retire with $1.2 million dollars if you structured your $200k home loan correctly. If you are a business owner, you could start your retirement account with $1,000,000 if you qualified! Your compounding would begin on the $1 million dollars from day one!

You are probably saying….wait a minute! There has to be a catch! Of course there is! Here is the catch….you will need to contact our office for a FREE no obligation consultation on this concept to see if you qualify. Call 888-853-5293 and leave a message requesting information on Leveraged Wealth Report. We will gladly send it out to you! Also you can register at

Just think, you could potentially start NOW with $1,000,000 in your retirement account! Why wait! Contact us NOW and review the FREE information!

Wake up those Sleeping Assets, and build your family’s future…NOW!

Don’t Forget you can go to our informational web site of and register to receive FREE reports!

Tuesday, October 9, 2007

The Rule of Money

Dear Friend,

I love the game of Chess. If is full of unlimited possibilities, moves, counter moves etc. It forces you to think in to the future. To be successful at chess, you must know the rules; otherwise you will lose!
As in the world of Chess, you must know rules when dealing with money. Here is one of the important rules: The Rule of 72. The Rule of 72 tells us how long it takes to double your money. For example, if you were receiving a Fixed Interest rate of 8% per year, your money would double every 9 years. So if a 29 year old person placed $10k into an account at 8%, it would be $160k at age 65. For this rule to work to its potential, you must start EARLY! Procrastination is the largest nation in the world, so start today! Go to for more FREE information! Register at receive a FREE newsletter and other great information! Create wealth for the future, start NOW with a solid education.

Sunday, October 7, 2007

Generational Wealth

How do you create Generational Wealth? There are many ways. If it were up to the politicians, they want to Tax you to poverty during your lifetime and after you die. $41 Trillion of wealth is going to pass hands from the Baby Boomer Generation to Generation X. If you want to find out how to keep your HARD EARNED away from the Tax Man and other free loaders, go to We have a Stack of of FREE Reports and a 24 Hot line for FREE Information!
Wealth is different than income. Wealth is what you accumulate, Income is what you earn. When people speak about Taxing the rich, it usually is the middle class...based on income. We feel that if you work for the money, it is yours. Of course, you must pay your taxes; BUT if you can take advantage of tax strategies, why not? Talk with a Tax Advisor or CPA about Tax Strategies. Get some FREE information on Wealth Accumulation by acting now by going to to learn more!



Douglas Andrew - Cornelius Vanderbilt vs Amschel Rothschild

Great Video on the true Principles of Wealth. This is the Best Selling Author, Douglas Andrew.

Sunday, September 30, 2007

Are you Loaning the IRS Money?

Dear Friend,
I believe there are some basic truths in the world. The sky is blue, winter comes after fall, and everyone HATES the IRS. I don't care what your political belief is, NO ONE likes the IRS on April 14! If we dislike the IRS so much, then why are we over using the 401(k) plans? These plans are full of traps, and the IRS loves them! What are these plans? How do they work? Let's talk about it.
These plans are part of Qualified Plans. The IRS has rules for these plans. Do you know the rules? Here are the basics benefits of these qualified plans: Tax Deductible Contribution, Tax Free Accumulation, Tax Free Distribution. You can only pick two benefits out of the three, otherwise it is Jail time. Most people pick a 401(k) plan without a licensed NASD representative to advise them on the mutual funds(which have traps also) during open enrollment for job. The contributions into the 401(k) plan are tax deductible for the current tax year. The money grows tax free inside of the account. The IRS wants you to participate and over contribute to these types of plans..why? Because of the taxes charged on the Distribution of the money after 59 1/2. These taxes charged will be at the current income tax rate at the time of withdrawal. Do most people think taxes will be lower or higher at retirement? If you said higher, go to the head of the class.
Why place money into that type of account? Because all the "experts" say so! These experts say that you will be at a lower income tax bracket? Do they have a crystal ball? Do they know something about the IRS that everyone else does not know? I believe that they don't know. Are 401(k) plans bad? No, but why not find out how it works? Learn the tricks of the trade.
You may be saying, "I can move my money into a Roth IRA after 59 1/2". That is a bad move also. The next question is: How long will your money last? You only have a finite amount of money in the account! There is a product that will allow you to save money with tax free growth, AND live on the retirement income TAX FREE? What is this account? Register at to find out more!


Robert Williams Jr

The Start of Something Big

CoveryourassetsNOW! is dedicated to informing and educating the middle class on the Secrets of the Rich and Wealthy. This information is available by registering on our website The Financial Services industry has left out families that are not in the HIGH net worth market. We believe that this a HUGE mistake! They have sold and pushed products that clients DID NOT UNDERSTAND! We are 100% committed to teaching and educating people on the Rules of Money, by providing FREE INFORMATION! NO MORE high Sales Tactics, Shell Games, Cold Calling, etc.
Currently, our design team is in the process of designing MORE web sites, more 24 hour Information Hotline, MORE FREE reports, Monthly newsletters, Seminars, Weekly Webinars, and video infomercials. So remember, go to to register for FREE Reports. Please feel free to post questions, comments about this industry on this Web Log.
Keep in mind, any specific individual advice regarding Taxes, Law or performance of specific investments, must be answered by a CPA/Accounting Professional, Legal Professional, and Registered NASD representative. This forum is about changing your paradigm towards wealth creation.


Robert Williams Jr