Annuity Misconceptions

Annuities are very misunderstood today. If used correctly, an annuity can provide additional income during your retirement years. Because of all the negative attention associated with these investments, I found an article that lists benefits an annuity can provide.

http://www.lifehealthpro.com/2013/11/19/13-ways-an-annuity-can-benefit-an-estate-plan

What’s the Worst kind of Debt?

DebtI found this amazing article that discusses the worst kind of debt? Was it a student loan? Was it credit card debt? Was it mortgage debt? Was it text of auto loan debt? They discusses why each kind of debt was the worst and why it might not be.

To this day we still believe that debt signed the need for life insurance. Just think of how your business or family would find the way to pay your debt after your income is gone.

 

http://finance.yahoo.com/news/whats-worst-kind-debt-120052525.html

What to expect from Obamacare in 2014

imagesObamacare’s health exchanges opened up October 1st. Given that the impact of Obamacare will only grow from here on out, Casey Research asked an Obamacare expert what we should expect as the calendar turns to 2014.

 

http://www.equities.com/editors-desk/stocks/healthcare/10-things-to-expect-from-obamacare-in-2014

Giving Thanks

download (1)It is again that time of the year where we celebrate giving thanks to God for the bounty we have received. Although the real story is that the pilgrims were giving thanks for switching from a social communist way of life, that was tried and was miserably failing, to a capitalistic society. That immediately brought abundance to the society with the flourishing of profit in their businesses and ventures.

The turkeys and the Indians were incidental to the story but not the real reason for giving thanks.

That said, I believe is essential and very important to be content of what we have, count our own blessings, brought  to us by our families, work and leisure time. And then set ourselves to progress and better ourselves and our lives, by reaching for the stars. During this time we should be constantly grateful to God for what we already have and for what is coming in our lives, as if it is already ours to have and already in our possession: be it material things, spiritual goals or enhanced love for us and others.

Money has to have a purpose and until we find what is the purpose for the money we have or want to have, we are not going to enjoy having the money nor achieving it. And, one of the most important purposes for money is to help others achieve their goals so we are going to be able to achieve ours.

In money matters we, as individuals, should come first. We need to take care of ourselves to be able to take care of our families and others. Then we should remember of tithing and give to charities. The more we do all of this the more will come back to us, ten fold.

I believe in helping people get to their financial dreams. Part done with investing in the market and part done thru safe money. Both have their place in the equation of creating wealth for now and the future. If properly used and combined, by tailoring a program to the needs of the client, the results will be outstanding.

True investing in the market is achieved only by owning equities, diversifying and rebalancing. The chase for the mutual fund of the day and the sky rocketing growth of some stock is not only surely bring to lose money but is like gambling your hard earned money in Las Vegas. There is no one than can predict the market no matter if they tell you that they can. Investing is a long term proposition and the markets are always right. So why fight them? Just go with them.

Safe money is tied to the right program and the right company. Is where you find a pole to scratch yourself into, when things are not so good around. Is where you find the money to invest when the markets take off again. Is where you find the security of income for years to come without losses.

So, as you see, you need both to be truly successful in creating wealth and manage it.

We do this day in day out for our clients. Call us if you want to have a consultation without obligation. You have nothing to lose to seek another opinion.

Happy Thanksgiving to all of you and your families, and thank you for all the trust and business you have given us.

 

Health Care after Retirement

health-insurance-after-retirement-know-your-optionsThe most difficult issue retirees will face in the future is how to pay for health care costs. Many who had depended on company health care plans are now being unceremoniously dropped from company health care programs. Retirees must prepare fall back positions to deal with access and affordability of health insurance in retirement.

 

Learn more here:

http://www.marketwatch.com/story/retiree-health-benefits-facing-extinction-2013-04-10

Retire Comfortably

RetirementRetirement- what a grand thought! Carefree living that you have been preparing for your entire career. There are so many factors to take into consideration when planning for this joyous time. Here is a guideline to help make sure you truly are prepared to take that leap into a comfortable retirement.

 

 

 

 

http://money.usnews.com/money/blogs/the-best-life/2013/05/07/10-retirement-concerns-to-prepare-for

Alzheimer’s Awareness

downloadLife is filled with so many uncertainties. Someone can be healthy as a horse one day and diagnosed with a life threatening illness within weeks. It is so important to plan for the best and worst life events. Not just for your piece of mind, but to ensure your family is properly taken care of. For example: Did you know 1 in 3 elderly people are diagnosed with dementia or Alzheimer’s? That statistic is scary!

Why do you need to knowa bout Alzheimer’s and dementia? First, you should know that the diagnosis of Alzheimer’s is now on the list of the government’s compassionate allowance illnesses. This allows the fast-tracking of Social Secruity disability benefits.

Second, all types of products are beneficial to people in this situation. There are long term care policies that provide important benefits.

Third, There are leveraged life insurance and annuity products that provide long term care benefits that do not put the premiums in jeopardy unless benefits have been claimed. This means that you can pay and pay and never get to use the benefits. If you don’t make a claim, you and your family keep the money. If you do make a claim, your money will provide more benefits.

Fourth, if you are already on claim, Medicaid annuities can be used to change “countable” assets into “non-countable” income. This can preserve assets for the family.

Here is an article to help prepare you for Alzheimer’s

http://www.kiplinger.com/article/insurance/T027-C000-S002-planning-for-alzheimers.html

Insure Yourself With Insurance Companies

F4DCBD793795E5446CB4C24881A49AMany times I have been asked by clients and folks in general; why I place so much importance in Insurance Companies as a big part of the equation to make sure clients have a prosperous, safe, and predictable retirement.

Let me elaborate on it. Many questions are lingering in the minds of people facing retirement age, and even way before then.

Looking at insurance companies this is what is evident from the standpoint of the type of business and its effects on people’s money:

  1. During the last 300 years there has been no insurance company that has reneged on a promise made.
  2. During the last 150 years there is no mutual insurance company that has not paid a dividend
  3. Longevity is in the blood of insurance companies. They look at how they can be in business a hundred years from today and they work on a very low profit margin, close to 3 %
  4. Very seldom there is an insurance company that is going belly up, and if that happens, most likely the client does not suffer. Insurance companies have the habit of re-insuring themselves. Not to mention that, by law, they have to have a surplus beyond their assets to be able to take care of a possible problem.
  5. Insurance companies have more money than all the oil companies and all the banks in the world put together. They are the backbone of the country’s financial stability.

AIG, one of the largest insurance companies in the world, was on the brink of failure in 2007/8. Their investment manager deviated from the sure path that the insurance companies follow in their investments (dealing with bonds all over the world), and started betting on those bad mortgages that soon went the way of foreclosure. It was just greed.

Banks do not actually have a surplus but they have money (Tier One Money) that they set apart in case of unforeseen obligations. To give you an example, Bank of America keeps 29 billion in this category. Of which 11 billion in hard assets ( buildings, etc.) and 18 billion in money that must be available without compromise, fully liquid and with no risk whatsoever….and where would that be? ….Cash value life insurance.

Interesting, isn’t it?

And so does City Bank, JPMorgan Chase, Wells Fargo….General Electric, Harley Davidson, Wal-Mart, Comcast, Johnson & Johnson…..

Banks like so much Cash Value Life Insurance that the Federal Reserve actually had to make a rule in 2004 that prevented banks from putting more than 25% of their Tier One assets in it, otherwise it would all in it.

Do they know something we do not know? Shouldn’t you, the small investor, the hard working person that tries to save for retirement, take example and do the same? The same advantages that are there for the banks and big companies are available to you also!

That is why, when it comes to advise clients on the best way to preserve their moneys, I want to have a certainty of outcome and predictable growth. I point to insurance companies. I advise to use Fixed Annuities and Cash Value Life Insurance as an integral part of their retirement funds.

Is there place for money in the market? You bet! You can put money in a Fiduciary Basis Rapport with an advisor. That will allow you to really make sure that money in the market is really cared for…. But of this, I will talk about next time.

 

Clear your mind

fishing-imageHere they are! The dog days of summer! It is hard to concentrate on your work when you would like to be out on the beach or walking trails somewhere in the cool mountains.

One thing I have found very relaxing and that brings me close to nature is fishing. Fishing not only for the sake of catching fish, but also for the time it allows you to be with yourself. Fishing is a great time to think about your work, business, family and projects. It’s a great opportunity to fantasize and soar with your mind.

If you indulge in some vices like myself, have a beer and a cigar. I personally haven’t smoked a cigarette since 1985, but occasionally I enjoy a good cigar. It helps me relax and concentrate on my thoughts.

I found that nature has many beautiful sounds that contribute to enhance your enjoyment on a fishing day. Various kinds of birds make different calls, maybe searching for their mate, maybe out of pure happiness. The water is splashing on the shore or on your boat. The wind is whistling a slow tune in your ears and bringing along smells of iodine, marshes and fish, grasses and flowers. The sun is warm and bringing you health thru high doses of vitamin D and yes, you finally hooked one!

Galveston West Bay is my favorite place to fish. This time of the year there would be plenty of red fish, trout’s, croakers, and flounders. Good fishing and good eating all the way around.

Go ahead and give it a try to spend some time with your children, spouse, or friends. Fishing does a body and soul some good.

Never ending debt

The United States is rapidly deteriorating and our debt is astronomical.

6a00d8341c858253ef00e54f45d4188834-640wiWe have unfunded liabilities in Social Security, Medicare and Medicaid. Now Medicaid is going to blow out of proportion because it is the basis to pay for the new federal healthcare program. Also the Federal Government does not count as debt what is owed by FHA, Fannie Mae and Freddie Mac.

The Federal Government copes by printing money, but how long it is going to be able to do so?

On top, we have the States and their unfunded liabilities, with the difference that the States cannot print money, but they can only borrow, reduce benefits or tax more.

The situation is spiraling out of control

and soon we may have to contend with massive inflation, which will make things cost more and more with no end to it.

See what Professor Laurence Kotlikoff, world renowned economist and expert in Social Security thinks about this…

Here is the link…