While it is impossible to predict the future I can certainly tell you with 20/20 vision what happened in the past!!!!...... Well who can't ????..... I can tell you NOT ONE of my clients lost money in their retirement accounts that I set up for them. As a matter of fact most of them earned around 11% on their retirement or savings. Did your IRA or 401K earn 11% in 2012? Once again, it is difficult to predict the future, but armed with information, predicting the future can be made a little easier. Here's what I see in my crystal ball for 2013:
1. Housing returns to pre-boom numbers in most US areas.
2. Your taxes are going up and I don't care how much or little you earn.
3. Gas will average around the $4.00 per gallon price in 2013, even with increased oil production..go figure!
4. A ban on assult weapons; not with this Congress, even though Obama will press the issue.
5. Look for the Republican Congress to open the door (sort of) to illegal immigrants.
6. It is a good bet that Israel launches missiles into Iran in 2013.
7. A divided Supreme Court will come out in favor of gay marriage.
8. The debt ceiling will be raised but not in time for a credit downgrade, this will weigh on the economy
and slow down employment.This will also lead to increased acquistions and mergers which leads to lost
jobs. Don't look for gross domestic product to increase much past 1.75%-2.0% in 2013. Too much
uncertainty.
9. Even with the mess in Washington, I do look for certain stocks to increase in value, especially if they
are part of the S & P 500.
The items mentioned above will have either an indirect or direct effect on your retirement portfolio. My predictions last year were good enough for my clients to earn double digit gains on their accounts. Lets revisit in December 2013...I am sure I will owe someone a lunch!!!!
Wednesday, January 9, 2013
Monday, November 12, 2012
Must Read for Everyone Ages 21 and Over!
From CBS Money Watch.......Don't let this happen to you. If you are 21 and just starting your career or 60+ and hoping to retire read this article. Give me a call if you have any questions. Large U.S. employers continue to eliminate traditional pension plans that pay retired workers a monthly lifetime pension in favor of defined contribution and hybrid plans that offer lump-sum payments at retirement, according to a recent survey HR consulting firm Towers Watson.
Among Fortune 1000 companies, only 11 percent still offer a traditional pension plan to newly hired salaried workers, down from 14 percent in 2011 and continuing a long slide from 90 percent in 1985. Conversely, in 1985 only 10 percent of those companies offered only a defined contribution plan to salaried workers -- today that figure stands at 70 percent.
The primary reason for this trend has been financial: Employers don't want the exposure to unfunded liabilities if capital markets perform poorly. At the same time, until recently employees generally hadn't expressed a preference for traditional pension plans and, in fact, have largely embraced 401(k) and other defined contribution plans.
But this trend has its consequences in the workplace, as large numbers of baby boomers have 401(k) balances that are inadequate to fund a traditional retirement. To make matters worse, most retiring workers don't know how to turn their nest eggs into reliable retirement income. Employers also haven't provided much help by offering retirement income options in their defined contribution plans.
"The ongoing shift from [defined benefit] to [defined contribution] plans due to cost and cost volatility is helping to create a next generation of retirement-age workers who may not be able to afford to retire when they would ideally like to," said Towers Watson consultant Kevin Wagner in a statement.
As a result, older workers are delaying retirement, potentially clogging up promotional opportunities for younger workers and helping keep unemployment levels high for the younger generation. And this next generation is beginning to learn from the unfortunate circumstances of the current generation of retirement age workers.
"Interestingly, as this shift in retirement plans continues, other Towers Watson research shows that younger workers are finding DB and hybrid plans more appealing than DC plans," said Alan Glickstein, another retirement consultant at Towers Watson.
The bottom line is that workers of all ages need to start expressing preferences for retirement plans that will enable some level of financial security in their retirement years. Such options include sponsoring traditional pension plans; sponsoring hybrid plans that offer the potential for lifetime retirement income; adequately funding DC plans; and providing retirement income options in DC plans. And there are good business reasons for employers to step up to the plate to help insure the retirement security of their workers.
We can no longer afford to ignore the long-term consequences of short-term thinking about our retirement programs. But we don't need to look to our federal government to solve these problems. Employees and their employers can work together to make it a priority.
Among Fortune 1000 companies, only 11 percent still offer a traditional pension plan to newly hired salaried workers, down from 14 percent in 2011 and continuing a long slide from 90 percent in 1985. Conversely, in 1985 only 10 percent of those companies offered only a defined contribution plan to salaried workers -- today that figure stands at 70 percent.
The primary reason for this trend has been financial: Employers don't want the exposure to unfunded liabilities if capital markets perform poorly. At the same time, until recently employees generally hadn't expressed a preference for traditional pension plans and, in fact, have largely embraced 401(k) and other defined contribution plans.
But this trend has its consequences in the workplace, as large numbers of baby boomers have 401(k) balances that are inadequate to fund a traditional retirement. To make matters worse, most retiring workers don't know how to turn their nest eggs into reliable retirement income. Employers also haven't provided much help by offering retirement income options in their defined contribution plans.
"The ongoing shift from [defined benefit] to [defined contribution] plans due to cost and cost volatility is helping to create a next generation of retirement-age workers who may not be able to afford to retire when they would ideally like to," said Towers Watson consultant Kevin Wagner in a statement.
As a result, older workers are delaying retirement, potentially clogging up promotional opportunities for younger workers and helping keep unemployment levels high for the younger generation. And this next generation is beginning to learn from the unfortunate circumstances of the current generation of retirement age workers.
"Interestingly, as this shift in retirement plans continues, other Towers Watson research shows that younger workers are finding DB and hybrid plans more appealing than DC plans," said Alan Glickstein, another retirement consultant at Towers Watson.
The bottom line is that workers of all ages need to start expressing preferences for retirement plans that will enable some level of financial security in their retirement years. Such options include sponsoring traditional pension plans; sponsoring hybrid plans that offer the potential for lifetime retirement income; adequately funding DC plans; and providing retirement income options in DC plans. And there are good business reasons for employers to step up to the plate to help insure the retirement security of their workers.
We can no longer afford to ignore the long-term consequences of short-term thinking about our retirement programs. But we don't need to look to our federal government to solve these problems. Employees and their employers can work together to make it a priority.
Monday, October 29, 2012
Numbers Don't Lie
| INVESTING $100,000 IN S & P STOCKS VS. INDEXED ANNUITY | |||||
| With 20% Bonus | |||||
| YEAR | S & P 500 | S&P 500 | $ AMOUNT | Monthly PT. to PT. | |
| INDEX | GAIN/-LOSS | VALUE | Indexed Annuity | ||
| S&P Stocks | Monthly 1.0% Cap | ||||
| Max Spread 12% | |||||
| 2000 | 1469 | $ 100,000 | $ 120,000 | ||
| 2001 | 1366 | -7% | $ 93,000 | $ 120,000 | |
| 2002 | 1130 | -17% | $ 77,190 | $ 120,000 | |
| 2003 | 886 | -22% | $ 60,208 | $ 120,000 | |
| 2004 | 1131 | 28% | $ 77,066 | $ 134,400 | |
| 2005 | 1181 | 4% | $ 80,149 | $ 139,776 | |
| 2006 | 1280 | 8% | $ 86,561 | $ 150,958 | |
| 2007 | 1438 | 12% | $ 96,948 | $ 169,073 | |
| 2008 | 1379 | -4% | $ 93,070 | $ 169,073 | |
| 2009 | 826 | -40% | $ 55,842 | $ 169,073 | |
| 2010 | 1074 | 30% | $ 72,595 | $ 189,362 | |
| 2011 | 999 | -7% | $ 67,513 | $ 189,362 | |
Never Lose Any Principal or Previous Years Gains
Participate in the Market Without Any Downside Risk
Friday, October 26, 2012
Life Comes At You Hard !!
A recent surveys found that:
1. 27% of us do little or no financial planning.
2. 27% have enough funds to deal with the unexpected.
3. 30% think the funds they have saved will be augmented by a pension.
4. 20% think their retirement will include funds provided by family members.
5. 60% expect to work beyond their normal retirement age.
6. 60% do not think they will have enough saved to live life the way they did prior to retirement.
7. 70% did not know that a college education in California is around $150,000.
What a hard conversation it would be if your kid was accepted to college and you had to tell your son or daughter they could not go because you did not think about or save any money for their college education.
Do not let this happen to you. Give me a call and lets get you on track to financial freedom and insure you have sufficent funding to send your child to college.
1. 27% of us do little or no financial planning.
2. 27% have enough funds to deal with the unexpected.
3. 30% think the funds they have saved will be augmented by a pension.
4. 20% think their retirement will include funds provided by family members.
5. 60% expect to work beyond their normal retirement age.
6. 60% do not think they will have enough saved to live life the way they did prior to retirement.
7. 70% did not know that a college education in California is around $150,000.
What a hard conversation it would be if your kid was accepted to college and you had to tell your son or daughter they could not go because you did not think about or save any money for their college education.
Do not let this happen to you. Give me a call and lets get you on track to financial freedom and insure you have sufficent funding to send your child to college.
Tuesday, October 23, 2012
BlackRock States Investors are Spooked and Frozen in Place
Read an article today from Black Rock Funds. It simply stated that investors are so spooked that they are frozen in place! Investors are so spooked that they are shying away from stocks altogether. This is coming at a time when the S&P 500 stock index is currently turning double digit returns! Do you think investors are tired of losing money? You bet! Investing in the stock market today is like gambling in Las Vegas. If you find a hot dice table, blackjack table, or one arm bandit you may make some money, however, have you seen the new hotels in Las Vegas? They did not build them from you winning at their tables. Your path to financial freedom is much more important than Las Vegas. Place your money where you cannot lose, only win. Yes, those investments are out there and investors just like you and I are enjoying financial freedom and could care less about a stock or mutual fund. Give me a call or send an e mail and we can further discuss your road to financial freedom.
Albert Viola
818.939.9117
albertviolajr@yahoo.com
Albert Viola
818.939.9117
albertviolajr@yahoo.com
More Turbulent Times Ahead
The typical 401K and IRA world today is; well I lost money this month, hopefully the market will come back next month or next quarter! Generally this is what most baby boomers, seniors, and the generation x say! Let me ask you a question, do you really have time to make up your losses? I played alot of sports when I was younger and trying to catch up in a baseball game or football game is alot harder. Sometimes when all else fails trying to catch up, we lose sight and do some rather dumb things; (ie) we do not stick to the game plan. Don't waste time trying to catch up financially. Make sure your retirement is placed in a secure vehicule where you cannot lose one nickel. Place your retirement in a vehicule where:
A. Your money is tax deferred.
B. You can sock away larger amounts of cash vs. a 401K or IRA.
C. Lifetime income, let me repeat...lifetime income.
D. Your money will compound faster since it is tax deferred.
Give me a call at 818.939.9117 and we can further discuss your path to financial freedom.
A. Your money is tax deferred.
B. You can sock away larger amounts of cash vs. a 401K or IRA.
C. Lifetime income, let me repeat...lifetime income.
D. Your money will compound faster since it is tax deferred.
Give me a call at 818.939.9117 and we can further discuss your path to financial freedom.
Monday, March 5, 2012
Watch Out for Financial Fraud
The Center for Retirement Research at Boston College picked up on the trend in a recent report, "The Rise of Financial Fraud." It notes that consumers may be more susceptible to financial fraud these days because they are more likely to be seeking solutions to unusually tough financial problems.
"People face serious financial problems ranging from stagnant incomes after the 2008 stock market crash to skyrocketing medical costs and house values that are less than the mortgage amount," the report says. "Any one of these can make an individual more vulnerable to get-rich-quick schemes."
Citing research by the Center for Retirement Research and others, the report also says the declining cognitive skills of aging Americans puts them at special risk of being defrauded. "Between ages 71 and 79, one-fifth of individuals are impaired but that rises to half of those between ages 80 and 89," it says.
Here is a list in the report of 10 "red flags" that should alert consumers to consider either walking away from the deal or making their own complaint to consumer authorities.
1. The offer looks too good to be true. Scam products or investments usually appear far more lucrative than standard products on the market.
2. Offers a high or "guaranteed" return at "no risk" to the investor. This is virtually impossible.
3. Requires an urgent response or immediate cash payment. Legitimate business deals never require such a response.
4. Charges a steep upfront fee in return for the promise that you will make even more money at some unspecified date. Run, don't walk, from such a deal.
5. Suggests recipients do not tell family members or friends about the offer. Why would any legitimate business person make such a request?
6. Lures prospective investors with a "free lunch." If you attend such a lunch, never agree to any deal or sign anything until you've gone home and done a lot more homework.
7. Sends unsolicited Internet email deals. These should go directly to your delete folder.
8. Tries to instill fear that failure to act would be very costly. As with item No. 3, no ethical person does business this way.
9. Resists being questioned or checked out further. Con men, like roaches, scatter when the lights go on.
10. Pitches a deal so complex that it is difficult or impossible to understand. A good rule for any financial transaction: If you don't understand it, don't do it.
"People face serious financial problems ranging from stagnant incomes after the 2008 stock market crash to skyrocketing medical costs and house values that are less than the mortgage amount," the report says. "Any one of these can make an individual more vulnerable to get-rich-quick schemes."
Citing research by the Center for Retirement Research and others, the report also says the declining cognitive skills of aging Americans puts them at special risk of being defrauded. "Between ages 71 and 79, one-fifth of individuals are impaired but that rises to half of those between ages 80 and 89," it says.
Here is a list in the report of 10 "red flags" that should alert consumers to consider either walking away from the deal or making their own complaint to consumer authorities.
1. The offer looks too good to be true. Scam products or investments usually appear far more lucrative than standard products on the market.
2. Offers a high or "guaranteed" return at "no risk" to the investor. This is virtually impossible.
3. Requires an urgent response or immediate cash payment. Legitimate business deals never require such a response.
4. Charges a steep upfront fee in return for the promise that you will make even more money at some unspecified date. Run, don't walk, from such a deal.
5. Suggests recipients do not tell family members or friends about the offer. Why would any legitimate business person make such a request?
6. Lures prospective investors with a "free lunch." If you attend such a lunch, never agree to any deal or sign anything until you've gone home and done a lot more homework.
7. Sends unsolicited Internet email deals. These should go directly to your delete folder.
8. Tries to instill fear that failure to act would be very costly. As with item No. 3, no ethical person does business this way.
9. Resists being questioned or checked out further. Con men, like roaches, scatter when the lights go on.
10. Pitches a deal so complex that it is difficult or impossible to understand. A good rule for any financial transaction: If you don't understand it, don't do it.
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