OK... American Airlines files for Chapter 11 BK with $ 4 BILLION CASH in their check book. Nice, I should be so lucky to reorganize my debts with that tidy sum in my check book....I'm going to stop right now on that subject!!
2012 looks like another gut wrenching stomach churning year for the stock market. At least another year you have apprehension to open your quarterly IRA or 401K statement. Another year of losses, another year of catch-up to make up for the value lost, another year you do nothing to get back on track, another year of oh well the market will eventually go back up, etc. etc. etc. I have an idea for a New Years resolution; forget about the usual resolutions, (ie) I am going to lose 25 pounds, I am going to stop smoking and really do something for yourself and your family. Make a resolution that you will NEVER lose another nickel in your retirement savings from this time forward. Make a resolution " I will NEVER play catch-up again with my money. I have several ideas on how to make this years resolutions a reality. Also for all you "big brains" out there that want to stay in the stock market and load up your portfolio with bonds one piece of advice; tread very carefully. You may have been dodging bullets up to the present time but the long term battle is far from over.
Let's talk about inflation. Not much new to say. Look for inflation to be around 3.5% this year and 2% in 2012. No problem, however another year of depressed interest rates means you make zip on your money market and CD accounts at your favorite bank and credit union. How would you like to earn 8-9% on your money next year tax free and not have to worry again about losing your principal? I have the answer.
Look for the housing price decline to come to a halt mid 2012. Look for 3-6% housing price increases in 2013 and beyond. Modest but in reality not bad at all for homeowners.
I have a very busy December with seminars and presentations so I may not have time to write in the blog in December so I want to wish everyone a Merry Christmas, Happy Holidays, and a VERY GOOD AND PROSPEROUS NEW YEAR.
Tuesday, November 29, 2011
Wednesday, November 9, 2011
Anti Wall Street Sentiment
Is the simmering anti Wall Street sentiment just a moment or is it the birth of a movement? Well for now I think it is the former. The groups are loosely organized and have eschewed a formal political agenda but we all better fasten our seat belts!! With income gaps, underwater mortgages, a whole lot of grievances, and job prospects, the conditions are there for a lasting coalition. Look for the protests to grow and spread. It really looks as though next year is going to be a clash of cultures; Tea Party vs Occupy Wall Streeters. This is really about Washington not Wall Street, and I predict we will actually have a showdown of sorts as to the size and shape of Government. This whole movement is not about capitalism what's really going on is a clash over the haves and the have- nots. The ultimate success of the movement is to find a dance partner. Look for other liberal groups to emerge and look for unions to get involved.
The GOP is going to retreat with regards to increasing taxes. Their united stand against raising taxes is going to crumble. Look for some favorite deductions to get eliminated and believe me look for corporate taxes to get reduced!
We will have a rocky 2012 in the stock market and there will be more 401K and IRA pain to come with it. The only way to fight these trends is with tax free financial vehicles. One of my favorite products for tax free accumulation is an Indexed Universal Life Policy. Just like annuities you participate on the upside and you will never lose any principal. How does 9% interest sound to you? Give me a call and we can talk.
The GOP is going to retreat with regards to increasing taxes. Their united stand against raising taxes is going to crumble. Look for some favorite deductions to get eliminated and believe me look for corporate taxes to get reduced!
We will have a rocky 2012 in the stock market and there will be more 401K and IRA pain to come with it. The only way to fight these trends is with tax free financial vehicles. One of my favorite products for tax free accumulation is an Indexed Universal Life Policy. Just like annuities you participate on the upside and you will never lose any principal. How does 9% interest sound to you? Give me a call and we can talk.
Thursday, October 20, 2011
How does your life change if Mitt Romney become President?
Looks like the GOP candidate will be Mitt Romney. Now I do not care what your politics are and you certainly know how life has been over the last three years so I wanted to give you some insight with some help from US News, as to how your life may change with Mitt Romney as President. Pay special attention to item 8. It may effect your retirement.Then read the past blogs about what you need to do now to make sure you are not eating hot dogs and beans everyday!!! So here goes:
1. Individual income tax rates stay the same. Elimination of the estate taxes, and no capital gains tax for individuals who make under $200,000 per year.
2. Look for lower corporate tax rates.
3. Say good by to Obama Care. This will happen within 2 minutes if he becomes President!
4. Less regulations on Corporate America.
5. Look for reform on medical malpractice lawsuits.
6. Drill Baby Drill....Drilling will increase to wherever it is safe.
7. Finally someone stands up to China and their currency manipulation.
8. Social Security, look for a raise in the retirement age, and reduced benefits.
9. National Debt...Cut, Cap, Balance......What a novel idea!
1. Individual income tax rates stay the same. Elimination of the estate taxes, and no capital gains tax for individuals who make under $200,000 per year.
2. Look for lower corporate tax rates.
3. Say good by to Obama Care. This will happen within 2 minutes if he becomes President!
4. Less regulations on Corporate America.
5. Look for reform on medical malpractice lawsuits.
6. Drill Baby Drill....Drilling will increase to wherever it is safe.
7. Finally someone stands up to China and their currency manipulation.
8. Social Security, look for a raise in the retirement age, and reduced benefits.
9. National Debt...Cut, Cap, Balance......What a novel idea!
Wednesday, October 12, 2011
This was the top story on Yahoo's Financial today 10/12/2011 at 7:00am:
Top Stories
Stocks Rally 1% on Rescue Fund Optimism- Reuters Stocks rose on Wednesday, putting the benchmark S&P 500 on track for its sixth day of gains in the past seven, as Slovakia moved to reach a deal on expanding the euro zone rescue fund.
Are you kidding me. Slovakia? Does anyone even know where Slovakia is? Slovakia effects the S&P500, Slovakia effects your 401K and IRA. Whats next, Catalina reaches a deal on expanding the euro zone rescue fund and Governor Brown declares that there is no more financial deficit in California? YIKES! I know my retirement is not effected by Slovakia, how about yours? Give me a call for safe and secure financial vehicles not made in Slovakia.
Are you kidding me. Slovakia? Does anyone even know where Slovakia is? Slovakia effects the S&P500, Slovakia effects your 401K and IRA. Whats next, Catalina reaches a deal on expanding the euro zone rescue fund and Governor Brown declares that there is no more financial deficit in California? YIKES! I know my retirement is not effected by Slovakia, how about yours? Give me a call for safe and secure financial vehicles not made in Slovakia.
Tuesday, October 11, 2011
Today I am absolutely incensed over yet another article in the Wall Street Journal about advising everyone on what they need to do if they want to save their retirement dollars and retire at an age where they can at least enjoy life a little before they go on to another world.
The article started by saying "If you 're like many Americans whose retirement savings took a major hit with the stock market meltdown you are probably wondering if you will ever be able to retire". Then they listed the same old "Bull" on what we need to do.
A. Do a reality check.
B. Save more.
C. Work longer.
D. Postpone Social Security.
OK, do a reality check, when your 401K or IRA has melted there is not much of a reality check to do except try and somehow restore what you have lost. Hopefully not using the same techniques applied as to how you lost it in the first place......Save more, OK, with gas near $4.00 a gallon, price of food, clothing etc. sure I can save more!!.......Work longer, sure I you can find a job, or better yet, do you really want to be working at age 75?.....Postpone Social Security, As I stated in an earlier blog SS will be there for all of the baby boomers. As far as postponing SS under the right conditions some may be able to postpone SS but the majority of us won't. So if you like hot dogs and beans every night postpone SS!
WAKE UP EVERYONE...I want to be the first to say 20 years from now you will be able to pick up the Wall Street Journal (if they are still in business) and read "If you're like many Americans whose retirement savings took a major hit in the stock market, you're probably wondering if you'll be able to retire". Here is our advice:
A. Do a reality check.
B. Save more.
C. Work longer
D. Postpone Social Security.
Get where I've gone with this. If you truly want SAFETY, SECURITY, TAX ADVANTAGES, and you want to be able to sleep at night acquire a financial vehicle that will accomplish this goal. They are out there for everyone.
Give me a call, lets talk.
The article started by saying "If you 're like many Americans whose retirement savings took a major hit with the stock market meltdown you are probably wondering if you will ever be able to retire". Then they listed the same old "Bull" on what we need to do.
A. Do a reality check.
B. Save more.
C. Work longer.
D. Postpone Social Security.
OK, do a reality check, when your 401K or IRA has melted there is not much of a reality check to do except try and somehow restore what you have lost. Hopefully not using the same techniques applied as to how you lost it in the first place......Save more, OK, with gas near $4.00 a gallon, price of food, clothing etc. sure I can save more!!.......Work longer, sure I you can find a job, or better yet, do you really want to be working at age 75?.....Postpone Social Security, As I stated in an earlier blog SS will be there for all of the baby boomers. As far as postponing SS under the right conditions some may be able to postpone SS but the majority of us won't. So if you like hot dogs and beans every night postpone SS!
WAKE UP EVERYONE...I want to be the first to say 20 years from now you will be able to pick up the Wall Street Journal (if they are still in business) and read "If you're like many Americans whose retirement savings took a major hit in the stock market, you're probably wondering if you'll be able to retire". Here is our advice:
A. Do a reality check.
B. Save more.
C. Work longer
D. Postpone Social Security.
Get where I've gone with this. If you truly want SAFETY, SECURITY, TAX ADVANTAGES, and you want to be able to sleep at night acquire a financial vehicle that will accomplish this goal. They are out there for everyone.
Give me a call, lets talk.
Thursday, October 6, 2011
DO ONE OR MORE OF THE FOLLOWING APPLY?
1. You want to accumulate cash with upside potential and downside protection.
2. You seek the opportunity for higher interest returns.
3. You can no longer tolerate watching your 401K, IRA, or 403B lose value due to the volatility and risks of being in the stock market.
4. You want to be able to access your cash TAX FREE under existing Internal Revenue Codes (when properly structured).
5. You want the ability of transferring assets to loved ones TAX FREE.
GUARANTEED OPPORTUNITY:
By offering guarantees and the opportunity for upside potential without downside risk an Indexed Universal Life policy connects with consumers looking for balance between risk and reward. An Indexed Universal Life policy is ideal for consumers who:
A. Seek the opportunity for HIGHER INTEREST RETURNS.
B. Don't like the volatility and risks of being in the stock market.
C. Want cash accumulation coupled with a death benefit.
FLEXIBILITY:
Universal life policies are very flexible. As a policy owner, you can vary the frequency and amount of the premium payments.You can also increase or decrease the amount of insurance to suit your situation. If your financial situation improves significantly, you can increase your premium and build up the cash value more rapidly. If you find yourself under financial strain, you may even be able to deduct premium payments from the cash value of the policy.
INDEXED UNIVERSAL LIFE POLICIES ARE NOT THE NEW KID ON THE BLOCK:
Indexed annuities have been in existence over 40 years now. Millions of consumers use indexed annuities as a financial vehicle with dual purposes in mind; retirement and life insurance. Consumers have hundreds of billions of dollars invested in indexed universal life policies. Stop watching the balance in your 401K, IRA, and 403B evaporate!
Give me a call. Let me help you save money and also keep it!
1. You want to accumulate cash with upside potential and downside protection.
2. You seek the opportunity for higher interest returns.
3. You can no longer tolerate watching your 401K, IRA, or 403B lose value due to the volatility and risks of being in the stock market.
4. You want to be able to access your cash TAX FREE under existing Internal Revenue Codes (when properly structured).
5. You want the ability of transferring assets to loved ones TAX FREE.
GUARANTEED OPPORTUNITY:
By offering guarantees and the opportunity for upside potential without downside risk an Indexed Universal Life policy connects with consumers looking for balance between risk and reward. An Indexed Universal Life policy is ideal for consumers who:
A. Seek the opportunity for HIGHER INTEREST RETURNS.
B. Don't like the volatility and risks of being in the stock market.
C. Want cash accumulation coupled with a death benefit.
FLEXIBILITY:
Universal life policies are very flexible. As a policy owner, you can vary the frequency and amount of the premium payments.You can also increase or decrease the amount of insurance to suit your situation. If your financial situation improves significantly, you can increase your premium and build up the cash value more rapidly. If you find yourself under financial strain, you may even be able to deduct premium payments from the cash value of the policy.
INDEXED UNIVERSAL LIFE POLICIES ARE NOT THE NEW KID ON THE BLOCK:
Indexed annuities have been in existence over 40 years now. Millions of consumers use indexed annuities as a financial vehicle with dual purposes in mind; retirement and life insurance. Consumers have hundreds of billions of dollars invested in indexed universal life policies. Stop watching the balance in your 401K, IRA, and 403B evaporate!
Give me a call. Let me help you save money and also keep it!
Monday, October 3, 2011
TODAY'S NEWS: I attended a webcast today with Sam Stovall, Chief Equity Strategist for the S & P 500 presiding. The news was not very good for 401K, IRA, and 403B investors. Mr. Stovall sees a modest rally for the S & P 500 in November and December 2011, and a steep decline for the entire year of 2012. Mr. Stovall predicts the S & P 500 to decline at least 18%! How do you feel about at least an 18% decline in your retirement? I am sure not very good.
MORE STORM CLOUDS AHEAD: In the coming weeks American's could face sweeping changes to their retirement plans. The Senate Finance Committee held a webcast a couple of days ago to discuss proposals for strengthening the nation's retirement system as well as the reality that these retirement plans are a target in deficit reduction plans. What does this mean? How about the elimination of the pre-tax deduction for 401K's, IRA's, and 403B's. OK, the possibility of no tax benefit in your 401K coupled with a possible 18% loss in your account does not sound like a sound investment strategy. Not only do we have the possibility of losing the tax incentive, now we will be taxed on a higher gross amount on our paychecks!
PROTECT WHAT YOU NOW HAVE: Today, not tomorrow, not this afternoon, not within the next hour but NOW you must start thinking SAFE and TAX DEFERRED RETIREMENT STRATEGIES. The time for action on your retirement plan is NOW. The ultimate financial vehicle today that offers a SAFE and TAX DEFERRED retirement is an annuity. There are several varieties available. Whichever you choose all the money you invest and continue to invest, compounds year after year without a tax bill from Uncle Sam. Think about it; the ability to keep every dollar invested working for you can be a big advantage over taxable investments.
Give me a call. Let me help you save money and also keep it!
MORE STORM CLOUDS AHEAD: In the coming weeks American's could face sweeping changes to their retirement plans. The Senate Finance Committee held a webcast a couple of days ago to discuss proposals for strengthening the nation's retirement system as well as the reality that these retirement plans are a target in deficit reduction plans. What does this mean? How about the elimination of the pre-tax deduction for 401K's, IRA's, and 403B's. OK, the possibility of no tax benefit in your 401K coupled with a possible 18% loss in your account does not sound like a sound investment strategy. Not only do we have the possibility of losing the tax incentive, now we will be taxed on a higher gross amount on our paychecks!
PROTECT WHAT YOU NOW HAVE: Today, not tomorrow, not this afternoon, not within the next hour but NOW you must start thinking SAFE and TAX DEFERRED RETIREMENT STRATEGIES. The time for action on your retirement plan is NOW. The ultimate financial vehicle today that offers a SAFE and TAX DEFERRED retirement is an annuity. There are several varieties available. Whichever you choose all the money you invest and continue to invest, compounds year after year without a tax bill from Uncle Sam. Think about it; the ability to keep every dollar invested working for you can be a big advantage over taxable investments.
Give me a call. Let me help you save money and also keep it!
Thursday, September 29, 2011
CASH STOCKPILING: Corporations cash stockpile is growing by the hour. Right now over $2 trillion dollars. We are caught between a rock and a hard place. In order to see growth and get people back to work, corporations need to start spending on (ie) new investments, capital equipment, etc.
Corporations are not the only ones holding on to cash; banks are too! It is predicted that deposits will grow 10% by the end of the year. At first blush sounds good, but think about it, a surge in deposits means there is little demand for loans from the well qualified borrowers.
TAX: Tax the rich do not tax the rich. Everyone has their own opinion on this one. But I feel there will be a deal by the November deadline. I see Medicare getting squeezed.
SOCIAL SECURITY: Despite what you hear the Social Security system is alive and well and getting fatter by the hour. Look for lots of changes though, like continued tax rate hikes thru out the next 10 years....OUCH!
RETIREMENT: 401K's, Roth and Traditional IRA's, and 403B's are losing favor among the baby boomers. Continued ups and downs in the market are rattling a lot of nerves. Ages 45+ may not have enough time to recover from huge stock market down turns. How do you REALLY feel about your investments over the last 5 years? Baby boomers and everyone else are now demanding PRINCIPAL PROTECTION, and TAX DEFERRAL. There are vehicles out there today that will accomplish all of these demands. Give me a call lets discuss those vehicles.
Feel free to comment. I look forward to talking with you. Albert
Corporations are not the only ones holding on to cash; banks are too! It is predicted that deposits will grow 10% by the end of the year. At first blush sounds good, but think about it, a surge in deposits means there is little demand for loans from the well qualified borrowers.
TAX: Tax the rich do not tax the rich. Everyone has their own opinion on this one. But I feel there will be a deal by the November deadline. I see Medicare getting squeezed.
SOCIAL SECURITY: Despite what you hear the Social Security system is alive and well and getting fatter by the hour. Look for lots of changes though, like continued tax rate hikes thru out the next 10 years....OUCH!
RETIREMENT: 401K's, Roth and Traditional IRA's, and 403B's are losing favor among the baby boomers. Continued ups and downs in the market are rattling a lot of nerves. Ages 45+ may not have enough time to recover from huge stock market down turns. How do you REALLY feel about your investments over the last 5 years? Baby boomers and everyone else are now demanding PRINCIPAL PROTECTION, and TAX DEFERRAL. There are vehicles out there today that will accomplish all of these demands. Give me a call lets discuss those vehicles.
Feel free to comment. I look forward to talking with you. Albert
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