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Thursday, January 28, 2010

Watching the Circus in DC

There is a saying "If you leave the clowns in charge don't be surprised if a circus breaks out". I don't remember who said this, but this describes our government officials in Washington D.C. As I listen to our President discuss the State of the Union to Congress, I just cant help but think why so many people are expecting ONE man to save them from financial ruin or hardship. It is too much pressure on one man to bear. He is at the end of the day, ONE man. He has NO Legal authority to provide all these things for us, as we sit back like children awaiting the next goodie or handout.
We must increase our financial IQ by taking Robert Kioysaki's advice and "Minding our Own Business". What does that mean? Does it mean that we just turn our backs on others? It simply means that we must FIRST take control of our lives by accepting responsibility for our actions.We do this by increasing our Financial IQ.
My daughter goes to the public library several times a week to study. When I pick her up, I am amazed the wealth of knowledge that is at our fingertips. This knowledge is FREE! Most of us NEVER use it! We prefer to watch a sporting event, see who will be the next Reality Show star, etc. None of these activities place money in our pockets. When we hit a financial brick wall, we seek the assistance of the Govt.
There are so many books that can increase your financial IQ, why not start today. Its better to invest in yourself and your children, as compared to waiting on pins and needles on President Obama and the 3 ring circus masters(Congress) to provide you wealth. It may provide lots of emotion, but it provides nothing but financial co dependence.
Start this process by going to the bookstore or the library, Read books like "Richest Man in Babylon" or "Rich Dad/Poor Dad". I am so thankful that my Parents and Grandparents instilled that seed in me at a early age. I know that many kids or people don't have that chance, but I will do my best to touch and educate as many people as possible. We have to educate ourselves in financial matters. Our lives as US citizens depend on it.
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Tuesday, January 26, 2010

Why It's Time to Retire the 401(k)

Why It's Time to Retire the 401(k)

I will keep repeating this OVER and OVER again. These plans are not the end-all-to-be-all. Understand the end game with these plans. Some of the secrets are revealed in my report, "The Truth about Retirement Plans"

Wednesday, January 20, 2010

What Happened?? Pt1

In my line of work, I talk to many people about their jobs, careers, goals, dreams, etc. Many people think a dream is to have a "Good Job". What is that? Is there such a thing? People are now trading Freedom for Security, especially in this country. It is a shame since many of our ancestors were KILLED or struggled to get to this country and make a life for themselves. We live in the most prosperous time in the history of mankind, but yet the average person is seeking a safe secure job. The other option that people speak on is to have a Government program to act as a Safety net in case "Bad Luck" strikes.
Let's look at Social Security as an example. Social Security acts as a sort of "retirement benefit" that will pay an certain amount at retirement age. The total tax taken is approximately 13%. You will have this "Tax" taken from your check each pay period, but it is placed into a Trust fund. This fund is separate from the general funds. The problem is that the Govt owns and controls the cash. The money is not invested, but is used to pay current benefit recipients. I can show people how to take that extra 13% and come out way ahead then leaving with the "safety net" program of Social Security, without all the risk! Its out of FEAR and LIES that this program has maintained its prominence in American history. It produces NO Wealth, it produces co-dependence. Why not allow folks to take the 13% and use it for themselves? The true meaning of Capitalism is when the INDIVIDUAL maintains and OWNS his capital. The State or Govt's job is to protect this Capital for invaders: Foreign and Domestic.
If the system allowed us to invest the 13% difference into our savings or investment program, what would be the results then?
The next blog entry I will show how saving or investing the 13% from SSI can benefit the individual greater than giving it away to the Government for them to squander and lose. Learn MORE about building wealth by contacting me directly or send me an email! I would love to hear from you!

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Tuesday, January 19, 2010

Herman Cain on the Fair Tax

Herman Cain discusses the Fair Tax. I am open to all types of suggestions on changes to the Tax code. This is an excellent concept and Mr. Cain goes through an explanation on the broad strokes on the Fair Tax.



If you are seeking a FREE info on Wealth Building Strategies or how to protect your 401k plan from Downside risk, go to www.noexaminsurancenow.com

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Friday, January 15, 2010

The 401k NO Brainer by Neil Cavuto

I am amazed by the so called "experts" that endorse a LOSING Strategy. They endorse this losing strategy with such vigor! While I do not dislike Neil Cavuto, he is wrong in his position with the 401k plan. Neil Cavuto does NOT allow Garrett to defend his position, he also talks OVER Garrett with so MANY fallacies it is ridiculous. 401k plan is NOT a NO-brainer, regardless if your employer is matching. Its not a forced savings, and you are not guaranteed a return when investing in the market. Yes the averages can made to be any number based on the time line of the average. How does Neil know when the person is going to retire? Can he place his claims in writing and guarantee the returns? What products can be purchased to protect the consumer against downside risk? All they can say is that, "The market has averaged X over the last 40 years, so THEREFORE it will be there when you retire." This statement is such BS.

Wednesday, January 6, 2010

Tuesday, January 5, 2010

Dissecting Dave's Bull Crap Financial Advice

I will resort back to science class for this blog. We will dissect something..a response to a caller's phone call. I feel financial advisors like Dave Ramsey are extremely DANGEROUS to the marketplace. He plays on the financial ignorance and fears of the average caller. This caller asks him a very direct question, and it is an excellent query. Watch the video and read my critique of his "bad advice" below..



Did you see the many errors in Dave's advice? There are plenty to go around, but I will focus on just his hypothetical that he created out of thin air. His hypothetical NEVER REALLY answers Tyler's question. Upon deeper inspection, it actually proves that Dave Ramsey is a total novice when it comes to Life Insurance needs.

I find it interesting that Dave Ramsey's answer is framed in a scenario that fits his reason for ALL people to purchase term insurance. The reason why Term insurance is cheaper than Permanent Life Insurance is because of the probability of death is much lower during the term period as compared to a Perm Life insurance period(to age 120). In fact, only 2% of claims are paid on Term Life insurance contracts. So does Dave know when folks are going to die? If he does than he is REALLY Good..NOT! Here is my critique.
First of all, in his hypothetical, he states that the 32 year old has a 20 year term and it expires at age 52 with a house that is paid for, $500k-$750k cash in Mutual funds in his 401k plan, and no need of any life insurance and debt free. Sound good, right? The guy dies at age 52 without life insurance. Smart advisor Dave states that the wife will be okay. This statement REALLY pisses me off!
The wife will NOT be "okay" based on Dave Ramsey's hypothetical. Here is why. The house is paid for, and the 52 year old leaves $500k-$700k in a 401k plan. Oh By the way..how does Dave Ramsey know for sure that this guy will have this much in his 401k plan? Can he put that claim in writing and guarantee this result? Nope! This $500k-$750 in his 401k plan will count towards his Estate Tax bill to the IRS in 9 months, along with that "paid for" house. Guess how the family will pay for this Taxable expense? If you said his 401k plan, go to the head of the class! So lets cut the 401k plan in half to $350k. Oh he never states the age of the surviving spouse. If she is 52, that money will be rolled into a IRA which she cant use until after age 59 1/2. This money is rolled so it will not be subject to taxation. That money will be taxed once she pulls it out of the IRA after 59 1/2. Now remember its only $350k, so she has to make sure that money is invested wisely. What conditions will the market be in at that time? Can she just "dollar cost" average to wealth? I think not. The house that is paid for: What happens if the Real Estate market when the spouse dies at age 52 is like today's market? The value can be lower and the surviving spouse needs liquidity. She will need to do the following: A) sell the house at below market price or B) refinance. If she refinances the house, the appraisal will be based on the local market or "comps" of this house. In a down market, she may not get as much as expected.
Here are some other considerations. The surviving spouse, she may have health challenges as she gets older. How will these needs be addressed? What life insurance does she have? Does she have an expired term life policy? If so, her premiums are 5 figures a year at age 60 and increasing EACH year. How long is that $350k going to last at retirement? My guess about 5-9 years, and she will be living with her children.
In my humble and honest direct opinion, Dave Ramsey is an arrogant,ignorant misguided advisor that needs to step down from giving out advice. His advice in this scenario PROVES that he has NO business discussing Life Insurance how it relates to people's lives.



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Video by Robert Kiyosaki

Excellent Video by Robert Kiyosaki:

Opinions on 2010

Here is Robert Kiyosaki's take on what is to happen for 2010. He has some very good points.

http://finance.yahoo.com/expert/article/richricher/211091;_ylt=Auf82MjK3eqhkP2irW.HiSuER4V4;_ylu=X3oDMTFidHI0c3VuBHBvcwMxMwRzZWMDYmxvZ0luZGV

High Income Earners have Qualified Plan options

Here are some things to think about if you are an high income earner. Check this link out:
http://articles.moneycentral.msn.com/RetirementandWills/InvestForRetirement/roth-ira-switch-now-pay-tax-later.aspx