Wednesday, December 30, 2009
Its hard to believe that we have moved 10 years into the 21st century, I love the innovation and technology that we have access to. With that being said, it does not replace good old fashion just one on one talking with your partner about your goals!
Make a conscious decision NOT to participate in any recession. Many business ideas have sprouted out of recessions! If you are seeking to start your business, NOW is the time to start! Don't put off what you can do today! Get started get moving!
Create value to yourself which in turn will create more value to society. Having goals and direction will turn things around. It all starts from within. Achievement of Freedom is an inside job FIRST then it will exude outward. Enjoy these videos by Zig Ziglar and have a Happy New Year!!
Second Video by Zig Ziglar
Third Video by Zig Ziglar
Saturday, December 26, 2009
Tuesday, December 22, 2009
Friday, December 18, 2009
Online Exclusive Update #20 | Conspiracy of the Rich: The 8 New Rules of Money
Wednesday, December 16, 2009
Here is the 2nd part of this series on Taxes at Retirement
Saturday, November 21, 2009
Tuesday, November 17, 2009
We can help you do the same thing!
Tuesday, November 10, 2009
Thursday, November 5, 2009
Tuesday, November 3, 2009
1. Mutual Funds provide ZERO guarantees-This does not make Mutual Funds a bad option. It just makes Mutual Funds a investment. The higher the potential return, the higher probability that person will lose money. They may show PAST performance on the prospectus, this does not mean the future gains will be the same. They are sold on past performance, and no one has a crystal ball!
2. Mutual Funds pass the risk on to the Owner of the Shares-The fees are the only risk that is carried by the mutual fund.Losses and gains are all retained by the owner of the fund shares. The fund makes money mainly on the FEES that are charged regardless of the performance of the overall fund.
3.Mutual Fund managers can move money away from the principal objective of the fund-What does this mean? Let's say that the mutual fund's principal objective is to invest in the Financial Services Sector. The fund manager MUST only invest in the stocks related to the Financial Services. If that sector is losing money, that manager must continue to invest in that sector! What does this mean for the individual Mutual Fund Shareholder? It means that your money can't be moved to stop from receiving losses! This is why people who preach using Mutual Funds preach diversification.
4.Mutual Funds used inside of Qualified Plans-While the appeal of qualified plans provide you tax deffered status in regards to the gains; there is a tax problem after 59 1/2. With these plans(except Roth IRA), you are taxed at your earned income tax bracket. Earn income tax brackets are HIGHER than Capital Gains tax schedule.
The other issue is that these Funds must out gain the rate of withdrawal for retirement. How long with this accumulated money last? Can the Mutual Fund provide an annual rate of return that will allow the investor to maintain the balance throughout retirement? I hope so, but the reality is no. Here is why:
Taxes will be higher:Currently Taxes are the lowest in the decades. With all the needs for Social Security, Medicare, etc. When investors take out monies from their Qualified accounts invested with Mutual Funds, these funds better be stable enough to carry the load for the taxes.
Health Insurance Needs-Medicare does not cover ALL health care needs, so those needs will need to be addressed from the retirement funds. Can Mutual Funds inside these 401k, IRAs, etc can they sustain the Health Care needs that Medicare does not address? With Rising Prices of Health Insurance, will it will be a challenge.
Inflation: People invest in mutual funds to keep pace or surpass inflation, but what will inflation look like in the future? With all the stimulus packages and Govt spending, it is safe to assume that the value of the dollar will be lower. Will people have enough in their retirement accounts to offset inflation and Taxes?
Value of the Funds once Baby Boomers retire: The largest segment of the population is beginning to retire, and seeking to convert these funds to cash. That means that the supply will increase, thus causing the value of the shares to go down. If this is the case, how can the Financial Planners project how much money will be in the Mutual Fund accounts? The values or balances in these accounts maybe lower than projected.
People make many assumptions, and Mutual Fund investors do the same thing. Does this mean that Mutual Funds are bad? No. Mutual Funds inside of a qualified account does not provide one of the most important thing in investing: Control over the investor's hard earned cash. It is my personal opinion for the reasons selected Mutual Funds ALONE are risky investments for retirement planning. They can be a part of the overall portfolio, but they are not the end-all-be-all for retirement.
Sunday, October 18, 2009
1.Term is cheaper than Permanant Insurance
2.401k plan is the best plan for Retirement
3. Mutual Funds are safe Investments
I will add more "myths" as I continue, but will start off with these three.
Term vs. Cash Value Insurance
Term Insurance is NOT cheaper than Whole Life Insurance.Its ONLY cheaper during the term period!
Term Insurance is cheaper than Whole Life insurance(during the term period) for this simple reason:the probability of death is very low during the term period. The life insurance company calculates the average price of insurance over the term period(10,20, 30 years). The shorter the term period, the lower the price. For example, price out a 10 year term life policy as compared to a 20 or 30 yr term life insurance policy. The price is cheaper, why?The probability of a individual dying in this term period is very low. This is why insurance companies only pay around 2% on death benefit for Term Insurance. After the term period is over, then the price of insurance goes up each year. Term Insurance is designed for a Temporary need, not a permanent need.
Permanent Insurance(Cash Value)
If all life insurance is Term Insurance,then permanent insurance is really term insurance until age 120. The probability of you dying in this term is close to 100%..in fact it is! Since you dont know when you are going to die, then the premiums are averaged throughout the period till age 120. So it may appear that the premiums for Whole life are more expensive, but the premiums are not if you sum the total premiums paid up to age 120.Now the other side of the argument is this, I dont think I will live to age 120, so why am I paying a higher premium? This is where the Cash Value comes into play. In case you live to be 120, the premiums are level so that you will NOT have to pay a higher premium after age 65,since the probability of death increases exponentially.In your younger years, the premiums are higher so the extra cost goes into the Cash reserve account for future premiums and future benefits.This allows the price of insurance to the consumer to be the same throughout his/her whole life. The Cash Value really is not an investment account since it really is for future benefits and future premium payments!This is why Insurance Companies must provide GUARANTEES on the Cash Value or Terminal Reserve Account since it is for Death Benefits. This is also why they require you to BORROW the money out of this terminal reserve aka Cash Value. This is also why you don't get BOTH death benefit and Cash Value at death since this accumulation is really for future benefits on the policy.
If you look at numbers below, I have the term policy for a 30 year old and compared to a Whole Life policy.Same age, same gender etc. I have totalled out the premium payments up to age 70. The reason why I did this assumption since no one knows when they are going to die, we will assume age 70 is when we will die. As you can see, the amount of premium paid is different if you compare both premium payment totals.
Age 30-Annual Premium $327
Total Premiums paid up to Age 70:$68,747
Age 30-Annual Premium: $1,143
Total Premiums Paid up to Age 70:$46,863
Cash Value Total(Guaranteed):$57,838
If the policyholder wanted with the Whole Life policy, they could stop making payments for several years! The Term Policy if they continued it, the Annual Premiums would continue to increase exponentially each year!
In conclusion, both types of insurance are excellent depending on the person's situation.This is not an indictment of Term Insurance. In Fact,many people may start off with Term insurance, and convert that policy into a more permanent type policy. One is NOT better per se than the other, but it is prudent for a working individual to carry life insurance. The point of the matter is this, if Term fundamentally was cheaper OVERALL in comparison to Whole Life, then no one would buy Whole Life or permanent insurance. In my opinion, the best kind of insurance is the one that pays benefits to the loved ones at the time of need. There is no price for that service. The next entry I will discuss the next myth: 401k plan.
Tuesday, September 29, 2009
The Seen and Unseen-The Problems when a Business is down temporarily
Let's suppose for a moment, that a group of college friends decide to start up a small retail business. The Group plans every detail out: Financing, Equipment, Location, Market Analysis, Inventory, etc. They even purchase General and Professional Liability Insurance. They open the business! Grand Opening!!! YAAA!! They are making money! They are beginning to pay back all the money from the start costs of the business. A year or two goes by, they are still paying back the start up cost for the business, and BOOM!!! A Fire destroys EVERTHING! Are these guys covered? The General/Professional Liability policy covers this situation, right? WRONG! Now these guys have lost everything, and they must continue to pay back the investors for the start up costs, lost equipment, lost inventory, etc etc, etc.
What could be done to prevent this situation? Many Business Owners can purchase a Commercial Insurance Policy known as a BOP(Business Owner's Policy). The details of this policy may vary from company to company, but here are some problems that our Entrepreneurs face in this story:
- Loss of Business Equipment-How is this equipment going to be replaced?
- Loss of Business Income-How are the guys going to pay back the start up costs, overhead, etc
- Lost inventory-Once the damage is fixed, they need to purchase inventory
- Law Suit-If these business owners are the ones found negligent in this peril, how will the legal costs be covered?
The BOP addresses all of these issues. The coverage limits and amounts may vary from company to company, but the point is this: Always look at your Commercial insurance as part of your business plan. To many times Business owners attempt to start a business from a shoe string budget. Murphy's Law typically loves these types of situations! In the planning process of your new enterprise, talk to insurance professional about a BOP package for YOUR new or existing enterprise! If have questions, call me at 866-846-4901 or email at:firstname.lastname@example.org
Tuesday, September 22, 2009
Friday, September 4, 2009
Thursday, September 3, 2009
These questions should be asked at the time of the investment account inception. The problem is this: Folks are sold on the "what if". What if the market does 20%? The average investor can not time the market to earn 20%! The average investor during the 1900s earned about 2-5% when the market was booming? Why? Lack of knowledge in the science of Market timing. There are investors out there who are accumulating wealth and NOT losing money! They will get a 0% ROI on their money when the market goes down! They never lose their principle! That is more important than ROI! So ZERO IS A HERO in a down market! When the market goes up, they still can earn an Excellent ROI on their money! This video below explains it all.
Monday, August 24, 2009
- Liquidity-easy Access to money
- Safety of Principle-Principle is protected against downside market risk
- Excellent Returns-Vehicle had the ability to provide returns that are similar to the Stock Market
- Tax Free Growth-The gains from the performance of the principle is protected from Taxes or Taxes are Differed.
- Tax-Free Retirement-When the money is withdrawn, Income Taxes are eliminated or reduced.
- Tax Free Wealth Transfer-The Cash could pass through Probate or eliminate Estate Tax on cash accumulation. Tax Free transfer to heirs.
Saturday, August 15, 2009
How accident forgiveness works is this: After setting it up on your policy, it will cover the ENTIRE policy! If you or any over your drivers are involved in an accident, the insurance company will not CHARGE you for an accident! This means MORE cash in your pocket if you are involved in an accident! NO CHARGE for points! That is better than Cash For Clunkers!
How do you find out more information about this AWESOME program? Call 866-846-4901 for more details. Ask for information on the Accident Forgiveness package. This package includes also minor violation forgiveness also! This could potentially save you money, and keep MORE cash in your pocket if you are ever in an accident! Call 866-846-4901 for more FREE info!! Call NOW!!! In Case you forgot, it is 866-846-4901. www.coveryourassetsnow.net
Thursday, August 13, 2009
Saturday, August 8, 2009
A Simple Solution For Health Care Reform
I have been paying attention to the rhetoric being used in the current debate on Health Care reform. Right now, no one REALLY has a great solution. The current requests by Congress are not satisfactory by the people and their respective constituents. The President is losing popularity on his position in this particular issue. Republicans and Democrats resort to blaming the Insurance Companies for their underwriting guidelines in regards to Health Insurance. What I find interesting, that there is a solution already in the marketplace! What is that solution? I will present this solution shortly, but let's explore why the current system is not working. The current system has several problems, but the main one is the rising costs. Let's see why costs are rising, and how "The Simple Solution", can begin to gradually fix this issue.
Let's look at main reason why costs are rising in the health care arena. First of all, no one REALLY knows what they are paying for their service. Many Americans don't pay cash for all of their health insurance needs. Those costs are typically transferred over to a 3rd party payer :e.g. Insurance company or Government Health Care. With Private Insurance, the premiums are usually paid by the employer and small percentage is shared with the employee. Government Health Insurance is paid by the tax payers. The insured may pay a small fraction of the office visit or service, but has no clue to the true price of the visit! For example, if I have a typical PPO network Group Insurance plan, I make my doctor appointment, show them my card; and pay the co-pay. That co-pay is a fraction of the doctor's visit! I see the doctor, and go home! The doctor bills my insurance company, and they pay the doctor for my visit; typically at a lower price than his true retail price. Here in lies the problem: Since I don't know the true cost of the visit, I will more than likely over-utilize the service, thus creating a higher demand for the health care providers' services. This problem is also compounded with the fact that my employer is picking up most of the bill for my health care premiums! So what happens? The costs of health care go up as well as the costs of premiums!
When this happens on a large scale, the insurance companies must either raise the premiums for the overall group, or drop them from the plan. Insurance companies are in the business to make a profit, not provide free health care. They have obligations to meet also.
What is the solution? The solution must have incentive for the insured. It must have an incentive for the employer, and it must still have some incentive for the health care provider. It must be a win-win-win. The solution must be able to control costs, and it must give some feedback to the insured to allow them to choose their service based on price, but not lose access to quality health care. It also must provide coverage when something catastrophic happens to the insured. You ready for the solution!
This solution is a combination of a Health Insurance plan and a personal savings account. It is called a Health Savings Account. Let's explore how it works. It has the workings of a typical Auto or Homeowner's insurance policy. Let's look at your Auto policy. You may have a $0 deductible or a $1000 deductible on your car. If you are in an accident, the $0 deductible policy, the insurance company pays for the entire damage to the car; while the $1000 deductible is different. You must pay the $1000 first, then the insurance company pays the rest of the bill. Which one is cheaper in premiums? If you guessed the $1000 deductible, go to the head of the class! That difference in premium between both types of deductibles, you could save in an account and cover the costs when you do have a claim!
Heath Savings Accounts work very similar. Here are some benefits:
- Contributions to the Account are Tax Deductible
- The money in your account is YOUR MONEY not the insurance companies'
- With most HAS plans, once you meet the annual deductible, the insurance company pays for the insurance claims at 100%
- Any office visit during that year, paid out of the HSA account is counted towards your deductible
- Premiums for these plans are considerably less than tradition PPO plans.
- With most HSA plans, in network providers must charge you the network cost versus the actual retail price. This provides tremendous savings for the client!
- The visits are paid with a VISA debit card, the health care provider receives their money, right then! Reduces Admin cost to file to the insurance company! No waiting for reimbursement from the insurance company for the health care provider!
- For the insured, ANY health care related costs can be used from this account: i.e. Drugs, Short Term disability premiums, Long Term Disability premiums, Dental Insurance premiums, etc.
- Since the Premiums are cheaper than a typical PPO plan, the cost to the employer is reduced, AND the employee can take the account with them if they leave their current employer!
- It will cover catastrophic events: Major Hospitalizations, etc. Keep in mind, if these events exceed the annual deductible, you are covered 100% by the insurance company!
- Many companies lock in the premiums for 2 -3 years! No major rate increases!
- It can be sold as an individual plan or a group plan
This is a small list of all the benefits for this type of insurance. Is this for everyone? It could be! It provides a win-win-win for all parties, and gives the consumer the power of choice on how he/she can spend his money on health care. It also provides the employer a more cost effective way to provide multiple health care benefits, and still be competitive in the marketplace. It also provides the Health Care provider, a much simpler way to process and receive payments, and it promotes better customer service because the consumer will have choices since he is paying cash!
The irony of all of this debate, these are types of plans have been in existence for several years, no one has really promoted this plan in the debate. Its time to look at these plans as a step in the right direction for the solution to this "Crisis" For more info on this type of plan, send me an email at email@example.com
Thursday, July 30, 2009
Monday, June 1, 2009
Sunday, May 31, 2009
Sunday, March 29, 2009
Sunday, March 15, 2009
- Tax-Free Transfer-No Estate Tax is assessed
- The options can be given in a lump sum or stretched out over time
- In some cases, the wealth created in the estate can be accessed while the person is alive.
Sunday, February 15, 2009
Rule Number One: Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family. This simply means that people need to start saving. Save minimum of 10% of your current GROSS earnings. The easiest way to create an estate is through life insurance. This is the vehicle that can transfer to your beneficiaries TAX FREE! There are ways to use Life Insurance while you are alive also!
Rule Number Two: Gold Laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field. My translation: Money goes to someone who is working in their own job or business. This is were a person is able to perform rule number one. If you don't earn money, start today looking for a job or business opportunity to begin to save money!
Rule Number Three: Gold Clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling. You must have strong financial advisers that can create a strong financial plan for you and your family. It is NOT only about one type of investment! It must be the ENTIRE Financial Picture. With strong advisers, money will be around during up markets and down markets.
Rule Number Four: Gold slippeth away from the man who invests it in business or purposes with which he is not familiar or which are not approved by those skilled in its keep. The world most famous investor, Warren Buffet always invests into things he understands and knows. This may be your own business! It may be stocks or other securities that you are familiar with their operations. The point is this, don't invest in things you have a limited understanding; get educated FIRST then stick your hard earned money into it.Rule Number Five: Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires investment. This is for the people who invest in these strange offshore gifting programs and double up stuff. These programs are nothing more than ponzi schemes. There are legitimate high yield investments out there, but you must get educated FIRST! I would also place in this category people depending on the Federal Govt to provide financial benefits. These tricksters and schemers are political figures who suck the savings from the people to line there own pockets. They promise utopia viz a viz Free Health Care, Social Security, Free this or Free that, which breaks all the 5 principles of getting gold! This promise of these Freebies is a promise of utopia...which is a great big trip to nowhere!.
These five principles are timeless. Start today with opening up an Emergency Fund account and set up a life insurance program. Stay disciplined with these principles, they will not lead you wrong. We will focus on more of these principles from the book, "The Richest Man from Babylon". Call me at 888-853-5293 today for analysis of your current Financial Situation!
Wednesday, February 11, 2009
Thursday, January 15, 2009
Lets explore how it works. With an Equity Index product, you can receive most of the upside of the performance of a stock or equity type investments without the loss of principle or money. In many cases, you can still get a guarantee of 0%-3% on the money when the market is going down or in a negative direction. That is a great deal! For example, let's supposed that I have $200k in an account. $100 k goes into the equities market, and $100k goes into my index account/product. Lets assume the equities market account goes down 20%, the account balance is around $80k. My index account is around $103k! So even when the market goes down, I sill make MONEY with my equity index account/product. If the equities market does 11%, my equities account goes up 11%($8,800) and my Equity Index account/product goes up 11% also. You can see the advantage with having this type of product or account. You can have the best of both worlds! Why not take advantage of this type of product! In this market, if you can't stand the heat, get out of the kitchen and find out more on this product! If this product interests you, get some free information on this product from www.coveryourassetsnow.net or call my 24 hour info hotline at 888-853-5293.
Wednesday, January 7, 2009
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:
You need a higher interest-rate alternative to Certificates of Deposit(CD's) and money market funds
You want to make your long-term savings grow faster without current taxation.
You need to save more for retirement, but you have "maxed out" your IRA and 401(k) or 403(b).
You need to roll over (reinvest) existing tax-deferred savings, like pension plans.
You need to guarantee yourself an income for the rest of your life.
You need to guarantee yourself an income for the rest of your life and your spouse’s life.
For purchasers of a special type of annuity called an Index Annuity, you want to protect your "principal" with a guaranteed rate of return while investing in the equity markets. Beyond tax advantages, there are important reasons to invest in an annuity, especially when you consider the limitations of other types of investments.
Free $$$ Advice
“I’m debating between investing in a Roth IRA and a traditional IRA. I’ve heard the Roth is a better choice. Can you tell me why?”
With a traditional IRA, your contributions will likely be tax deductible (depending on your income and whether you contribute to a 401 (k) plan. So when you contribute, say, $1,000 into a traditional IRA, you get to deduct that amount on your taxes. The money then grows tax-free until you withdraw it at age 59 ½ or later. At that time you’ll need to pay ordinary income tax on the distribution you receive.
With a Roth IRA, however, you pay income taxes on your money before you put it in. But that’s it-- if you follow the rules, you never pay a penny more in federal taxes on your nest egg, no matter how large it grows (provided you don’t touch the money until after you turn 59 ½).
Most experts compare these plans side by side and will tell you the Roth IRA is the better choice, because all of the money will come out tax-free later, so you’ll have more money when you need it at retirement. But consider this: If you save $1,000 in a pre-tax traditional IRA, you need to save only $1,000 into a Roth IRA, you actually need to save more, because you are putting in after-tax dollars. So putting $1,000 into a Roth IRA today may really cost you closer to $1,500 depending on your tax bracket.
You have to decide which is worth more to you: the money you’ll save in taxes now by deducting your IRA contributions this year, or the money you’ll save later by not having to pay taxes on your IRA withdrawals when you retire. A good rule of thumb is that if you are more than 10 years away from retirement, you’ll most likely come out ahead with a Roth IRA.
For additional information and a free computer printout please call our office at 888-853-5293 or go to www.coveryourassetsnow.net