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Financial Survival in the New Economy: Preparing for Disaster

Friday, October 28th, 2011

Perhaps you think that, based on recent market surges, that the recession is over, that we’re well on our way to recovery and happy days are here again. I hate to be the bearer of bad news but nothing, in my opinion, could be further from reality.

Read these quotes, if you dare, but check your blood pressure when you’re done:

 

“The U.S. is fast approaching $15,000,000,000,000.00
in national debt. This is mathematically impossible to
ever pay back … even if every American was taxed at 100%.”
- Charles Goyette, The Dollar Meltdown

“79 million Baby Boomers are about to retire, pull
their money out of the economy, and demand their $35 Trillion
Dollars in Social Security & Medicare. Think that through…”
- Robert Kiyosaki

“By 2015, through interest payments alone, the U.S.
will have singlehandedly funded 4x growth in China’s
military strength”
- Mark Steyn, After America

“23.4% of Americans are Currently Unemployed
… not the 9.1% they’d like you to believe.”
- ShadowStats.com

“There are currently 5 job seekers for every 1 job
opening in America,forcing wages down by 10% since 2007.”
- The Wall Street Journal, October 13, 2011

“Adjusted for inflation, the average yearly earnings for an American
male are lower in 2011than in 1978.”
- The Wall Street Journal, September 14, 2011

“1 out of every 5 Americans is on government
support of some sort”
- The Wall Street Journal, October 5, 2011

“America will lose its position as the world’s
superpower in less than 10 years.”
- Goldman Sachs, 2011

“We’re actually in a depression right now.
They just don’t want us to know that.”
- Anonymous

“If we don’t do something soon … our recovery
is on the verge of faltering.”
- Ben Bernanke, The Fed, October 2011

“The stock bubble of 2001 and the housing bubble of
2007 were mere sideshows for what’s coming.
The main act is just around the corner …”
- Chris Martenson Ph.D., The Crash Course

I don’t know about you but I don’t think we’re out of the deep water yet.  In fact, I believe the worst is yet to come.  But I still believe there is hope for those that prepare.

I’ve written a number articles on the strength and safety of Insurance companies and annuities.  I still believe that when it all hits the fan the insurance companies will remain standing and provide an excellent safety net with Annuities, Life Insurance (with life benefits), Nursing care insurance and the like.  Now I don’t have a securities license but I read and pay attentions so here’s a few other suggestions that might help:  (BE WARNED – THESE ARE SURVIVAL STRATEGIES AND MAY SEEM RADICAL TO SOME!)

BUY GOLD SILVER AND PRECIOUS METALS:  In the event of a total collapse at least these have intrinsic value.

STOCK UP ON CIGARETS, LIQUOR AND OTHER ADDICTIVE PLEASURES:  Not that you’ll use them personally but if there is a period of time like the Weimar Republic and hyperinflation takes control money may be valueless so these items can be used as barter.

KEEP SEVERAL MONTHS OF CASH ON HAND:  In the event of a collapse, catastrophe or other overwhelming event there may be a period of time that banks shut down so it’s wise to keep a reserve on hand.

START STOCKPILING FOOD FOR A MONTH OR MORE SUPPLY:  In the event of major downturn there is likely to be a run on groceries.  The average city or town only has a 3 day supply of food.

HAVE CANDLES, LANTERNS OR OTHER ALTERNATE SUPPLY OF LIGHT: Needless to say there may not be any electricity for awhile.  Think about all the things you have that run on electricity and find an alternative to fill the gap.

BUY A GRILL IF YOU DON’T HAVE ONE:  Along with a supply of propane, wood or charcoal.  Gas and electric may go down and what are you going to cook on.

IF YOU HAVE A FIREPLACE, STOCK UP ON WOOD:  It may be in short supply after a crises so like all good boy scouts “Be Prepared”.

SELL ANYTHING YOU HAVEN’T USED IN OVER A YEAR:  It’s time to clean house, streamline and get rid of the excess baggage while you can.

PUT ALL YOUR LEGAL DOCUMENTS IN PLASTIC SLEVES IN A BINDER WITH EASY ACCESS:  In the event you were forced to leave your town or city for safety in the country, you need these documents handy to take with you: mortgage, insurance policies, birth certificates, medical docs and more.

HAVE A BACKPACK READY WITH AT LEAST 3 DAYS OR MORE SUPPLIES:  For the same reason as above.  If this go bad and the violence we are now seeing in our major cities escalates and you live in or near these areas it may become advisable to leave before it escalates.

There are a lot more survival tips available out there in web world.  Just do a google search or go to the library to get your brain thinking.  Hopefully you won’t need any of this advice.  God willing things might get better…for a time.  The Bible does say that as the end draws near the darkness will grow so I don’t hold out much hope.  Remember the quote, “Chance favors the prepared mind!”  GET PREPARED!!

Helping to secure your financial future.

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RETIREMENT INVESTMENT ADIVCE: The Power of Annual Reset In a Volatile Market!

Friday, December 17th, 2010

As most investors would attest, the stock market has been a rollercoaster ride over the past several years. We have seen huge moves in both directions, and volatility has become commonplace. No one can predict what the future holds as it relates to the stock market, but many market experts believe that volatility is here to stay for a while.

Check out this recent article from one of those experts. If market volatility is in fact here to stay, wouldn’t it make sense to allocate some of your Retirement Investments to products that will insulate you from potential future market swings?There are many options to choose from, but one strategy to look at would be fixed indexed products with an annual reset strategy.

Fixed indexed products are great in volatile markets because they:

  1. protect YOUR Life Savings during bad times and
  2. let’s YOU participate in earnings during good times.

In a positive market fixed indexed products will perform well, but their upside performance potential may be limited somewhat by the caps, spreads and other measures that the insurance company has in place.

In a negative market, fixed indexed products will protect YOU from loss, but they will not generate a positive return. Volatile markets that have good years mixed in with bad years are the markets that truly show the value of fixed indexed products with an annual reset chassis.

To illustrate this point, let’s take a look at how a hypothetical fixed indexed annuity product and a hypothetical fixed indexed life product would have performed in a real life volatile market. One of the world’s most volatilestock markets over the past 20 years has been the market of Japan. Japan’s stock market, the Nikkei 225, closed at 37,133 on December 1st of 1989. 20 years later, it closed down over 74% at 9,572.20 on December 1st 2009. Today, the Nikkei 225 sits around the 10,000 mark. The 20 year period from December 1st 1989 to December 1st 2009 included 11 negative years and 9 positive years, so it is a great example of what a volatile market can look like.

So, how would a fixed indexed product with today’s features have performed in the Nikkei 225 from 12/1/89 to 12/1/09? Let’s take a look.

We will assume that the fixed indexed annuity product is one with an annual reset design, 100% participation in the index, and up to a 5.5% annual cap. We will assume that the fixed indexed life product is one with an
annual reset design, 100% participation in the index, and up to a 13.5% annual cap.

The chart below illustrates how these hypothetical products would have performed if they were indexed to the Nikkei 225 from 12/1/89 to 12/1/09 and had the assumed features/caps listed above.

As you can see in the chart below, the client would have been up over 50% in the hypothetical indexed annuity and over 130% in the hypothetical index life product. This is compared to a 74% loss that the client would have shown had they been directly invested in the Nikkei 225 during this period. This example shows the power of an indexed product with an annual reset design.

I trust you’ve found this information useful. To better evaluate how using a Fixed Indexed Annuity with annual reset might affect your retirement nest egg, don’t forget you can always get a retirement income analysis at no cost or obligation to you. To learn more, just click on “I Want MY Retirement Income Analysis NOW!”

Safe Savings


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    Retirement Investment Advice: The New Troubled Bank List!

    Tuesday, November 23rd, 2010

    The number of troubled banks is growing.  Find out if this will impact you plus some additional important information.  I’m passing along an article from Martin D. Weiss, Ph.D. from http://moneyandmarkets.com. This is some valuable insight into things FDIC is NOT telling you and the condition of even the largest banks.  I know you’ll find it valuable.

    (The link to the troubled bank list is at the end of this article.)

    Martin here with an urgent update on the next phase of the banking crisis.

    Just this past Friday, the government released new data showing that the FDIC’s list of “problem banks” now includes 903 institutions.

    That’s ten times the number of bad banks on the FDIC’s list just two years ago.

    The banks on the list have $419.6 billion in assets, or SIXTEEN times the amount of two years ago.

    And yet, these bad banks are …

    Just the Tip of the Iceberg!

    How do we know?

    Because the FDIC has consistently neglected to include the most endangered species on its list of problem institutions — the nation’s megabanks that are among the shakiest of all.

    The FDIC doesn’t reveal the names of the banks on its list — just the number of institutions and the sum total of their assets.

    Still, I can prove, without a shadow of doubt, that the FDIC’s list of problem banks is grossly understated and inadequate.

    Consider what happened on September 25, 2008, for example.

    That’s the day Washington Mutual filed for bankruptcy with total assets of$328 billion.

    But just 30 days earlier, according to the FDIC’s own press release, the aggregate assets held by the 117 banks on its “problem list” were only$78 billion.

    In other words …

    Washington Mutual alone had over FOUR times the sum of ALL the assets of ALL the banks on the FDIC’s list of problem banks!

    Obviously, Washington Mutual was not on the FDIC’s list.

    Obviously, the FDIC missed it. Completely.

    Also not on the FDIC’s list: Citicorp and Bank of America, saved from bankruptcy with $95 billion in bailout funds from Congress. Just these two banks alone had over FORTY-SEVEN times more assets than all of those the FDIC had identified as “problem banks.”

    Some people in the banking industry seem to think the FDIC can be excused for missing the nation’s largest bank failures for the same reason that blind men groping in the dark can’t be blamed for missing an elephant in the room.

    But the fact is that the FDIC even missed the failure of a relatively smaller bank: IndyMac Bank.

    When IndyMac failed in July 2008, the 90 banks on FDIC’s “problem list” had aggregate assets of $26.3 billion. But IndyMac alone had $32 billion in assets. Evidently, even IndyMac was not on the FDIC’s radar screen.

    This is …

    Easily One of the Greatest
    Financial Scandals of Our Time

    The FDIC’s problem list is supposed to guide banking authorities in their efforts to protect the public from bank failures. If the FDIC is missing all the big failures, where does that leave you and me?

    Heck — it’s bad enough that they refuse to disclose the names of endangered banks. What’s worse is that they’re hiding the truth from their own eyes.

    And with so many misses so evident, you’d think they would have changed their ways by now.

    Not so.

    Even as I write these words to you this morning, banking authorities are AGAIN failing to recognize, analyze, scrutinize, or tell the public about the real impact of the most intractable disaster of this era:

    Major U.S. Banks Still Extremely
    Vulnerable to the Foreclosure Crisis

    Here are the facts …

    Fact #1. JPMorgan Chase, Wells Fargo Bank, and Bank of America each have more than $20 billion in single-family mortgages that are currently foreclosed or in the process of foreclosure.

    Fact #2. Each bank has at least DOUBLE that amount in a pipeline of foreclosures in the making — $43 billion to $55 billion in delinquent mortgages (past due by 30 days or more).

    Naturally, not all of the past-due loans will ultimately go into foreclosure. But these figures tell us that the biggest players are not only in deep, but could sink even deeper into the mortgage mayhem.

    Fact #3. Combining the foreclosures and delinquent mortgages into a single category — “bad mortgages” — the sheer volume still on their books is staggering:

    • JPMorgan Chase (OH) has $65 billion in bad mortgages …
    • Wells Fargo Bank (SD) has $68.6 billion, and …
    • Bank of America (NC) has $74.9 billion.

    Fact #4. The potential impact of these bad mortgages on the bank’s earnings, capital — AND SOLVENCY — is dramatic. Compared to their “Tier 1″ capital …

    • SunTrust (GA) has 57.6 percent in bad mortgages …
    • Bank of America has 66 percent in bad mortgages …
    • JPMorgan Chase has 66.8 percent, and …
    • Wells Fargo has 75.4 percent.

    Tier 1 capital does not include their loan loss reserves. But even if you included them, the exposure is still huge.

    Moreover, this data is based on the banks’ midyear reports. Since then, we believe the situation has gotten worse.

    And these numbers reflect strictly bad home mortgages! It does not include bad commercial mortgages, credit cards, construction loans, business loans, and more.

    Here’s the key: Based on their size alone, we KNOW that none of these giant institutions are on the FDIC’s list of “problem banks.”

    Yet they are all definitely WEAK, according to our Weiss Ratings subsidiary, the source of this analysis on bad mortgages.

    Moreover, “weak” means “VULNERABLE,” according to the analysis of the Weiss ratings provided by the U.S. Government Accountability Office.

    To help make sure your money is safe, I have four recommendations:

    Recommendation #1. Don’t keep 100 percent of your savings in banks. Also seriously consider Treasury bills — bought through a Treasury-only money market fund or directly from the Treasury Department.

    Don’t be put off by their low yield. The primary goal of this portion of your portfolio should not be the return on your money. It’s the return OF your money.  (Roger here: You could also use Fixed Indexed Annuities with higher yield potential with no risk of loss.)

    Recommendation #2. The only real risk in holding U.S. Treasury bills is the likelihood of a falling U.S. dollar. But don’t let that alone prompt you to run away from safe investments and rush into high-risk investments. Instead, stick with safety and protect yourself from a dollar decline SEPARATELY, with hedges against inflation, such as gold.

    Recommendation #3. For checking accounts, money market accounts, and CDs that you have in a bank, be sure to keep your principal and accrued interest under the FDIC’s insurance limit of $250,000.

    Recommendation #4. Given the magnitude of the potential crisis … given the limited resources of the FDIC … and in light of the strong anti-bailout sentiment of the new Congressional leadership … I feel you must not count exclusively on the FDIC or any government entity to guarantee your savings.

    Instead, make sure you do business strictly with financial institutions that have what it takes to withstand adverse conditions on their own, even without a penny of government support.

    Do your best to avoid banks with a Weiss rating of D+ (weak) or lower and seek to do business with banks that we rate B+ (good) or higher. Stay safe. ]

    I truly hope you found this information as eye opening as I did.  Ok, as Promised here’s your link to the  Click——> List Of Trouble Banks. <—–Click

    To YOUR Safe Savings,

    Roger Ely

    If you found benefit in this information, please, leave a comment &/or hit the “like” button.

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      7 Key IRA Action Steps to Take Before Year’s End!

      Monday, November 22nd, 2010

      Well, another year is about over.  The holidays are upon us once again; so many things to do but there’s still a little bit of financial retirement business that needs to be addressed before you can start the fire and put on your slippers!  You want to make sure that your IRA’s are in shape before the end of the year.

      Here are 7 important IRA issues to address:

      1. Make sure you’ve taken your RMD (Required Minimum Distribution) from your IRA for this year. Once you’ve reached your RBD (Required Beginning Date), which is usually the April 1st after the year you reach 70 1/2, you need to start taking your RMD’s.
      2. Make sure you haven’t made excess contributions to your retirement plans or IRA; there are penalties.  You can’t make an IRA contribution in excess of earned income for the year.
      3. Make sure all your contributions went to the right retirement savings account! If you have more than one retirement account, it’s easy to put money in the wrong qualified or non-qualified account.
      4. Is your retirement savings vehicle “Stretch” friendly? If you want you beneficiaries to have the benefit of receiving their inheritance in a tax efficient manor, this may be a good time to look at moving the funds into an account that will allow them to take RMD’s when they inherit instead of being taxed on a lump sum.
      5. Check your IRA, Life Insurance & Annuity Beneficiary forms. Especially if you’ve added accounts or haven’t checked them in awhile.  Is your “ex” still the primary beneficiary or has a primary beneficiary passed away.  You want to make sure your plans are carried out the way you intend!
      6. You have a limited time left to do a Roth IRA conversion. With taxes about to go up next year, a Roth conversion – allowing you to pay the tax over the next three years – may make sense.  But the 3 year provision is ONLY available through THIS year!
      7. A Roth IRA re-characterization might be in order if you set up a Roth in 2010 and need to reverse that decision for whatever reason.  You can reverse the process by doing a trustee-t0-trustee transfer from Roth back to a traditional IRA.

      If you need help with any of these issues, I’m happy to discuss them with you over the phone, through e-mail or a visit to your home; whatever is most convenient for you.

      Of course with any complex tax issues such as these, it’s also a good idea to consult a tax accountant or attorney.

      Happy thanksgiving,

      Roger Ey

      PS:  If you need a free consultation, just fill out this Retirement Savings Analysis Request Form.

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      Add 30% to Your Retirement Savings: Even “Honest” Abe Trusted Them!

      Thursday, October 28th, 2010

      I’ve just come across a new Retirement income product, for your “safe” money, that has some AWESOME benefits for YOU! Abraham Lincoln (aka “Honest Abe”) selected this insurance company to insure him. Here’s the overview.

      * Get a 5% bonus on the initial premium
      * Get and ADDITIONAL 25% bonus added to the income rider to boost your income amount
      * liquidity for Nursing care and Terminal illness
      * Guaranteed death benefit
       * Guaranteed NO LOSS
       * 10% free withdrawal through year 10 then 100%
      * 7 fixed payment options Guaranteed for life
      * You get all that with only a 10 year surrender schedule.

      Many folks – maybe even you – have been sold on the old brokerage plan of drawing 4% of your account out every year for income and hope that the market grows back at some higher rate.  THOSE DAYS ARE GONE! PERIOD!  If you you’re like most with losses over the last few years, you’ve had to take a pay cut!

      One of the riders available with this new product I’m introducing WILL GUARANTEE A 7% PAYOUT FOR LIFE AT AGE 70 EVEN IF THE UNDERLYING ANNUITY VALUE GOES TO ZERO!  NOW THAT’S SAFETY AND PEACE OF MIND!.  If your brokerage account tanks and goes to zero is the company going to pay you your measly 4% forever?  NOT ONLY NO… HECK NO! (to be polite about it)  THERE’S A BETTER WAY!

      You can chose to add 25% to the 5% up front (30% total) and trigger the guaranteed income right away or take the 5% and let the income rider grow for another 10 years at 8% compounded guaranteed (more than doubling your initial premium) and then trigger the lifetime guarantee.  Plus the lifetime payout percentage schedule is higher than any I’ve seen; up to 8.5% of the accumulated value for life at age 80.

      So whether your looking for income now or later, there’s something here for you.  So who is this best suited for? Anyone looking for:

      * SAFETY – no loss guaranteed
      * GUARANTEES – for income, for high interest rates (8%)
      * Access to funds (10%)
      * Liquidity for Nursing care, terminal illness or death (balance to heirs)
      * Immediate Income for life even if your savings runs dry!  (That’s why I call it “Insurance for your retirement savings!”)
      * Indexing options that give you the upside of the market with no downside risk.
      * multiple income options
      * Don’t want to “lock up” your money (even if you trigger income for life you still have access use and control of the rest of the funds.

      To find out more about this A rated company and product feel free to call or e-mail with questions.

      Safe Savings,
      Roger

      PS: THE FIXED RATE OPTION FOR THIS PRODUCT IS 3.10%.  What are Long Term bank CD’s paying? Hmmmm……

      PSS:  RIGHT NOW –  leave a comment, hit the “like” button, and pass this to your friends!!

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        Retirement Savings House Bill could provide some added flexibility

        Tuesday, October 19th, 2010

        Dear Friends:

        Here’s some new regulatory news I thought you could use and below I’ve offered a suggestion:
        House Bill Could Provide Added Flexibility for Americans Saving for Retirement

        Milwaukee, WI (September 27, 2010) – Members of the House today voted 237-187 to approve H.R.5297, a bill that includes a provision that could make it easier for annuity holders to annuitize a portion of the assets held in a contract.

        The partial annuitization provision would help annuity holders keep some assets “as is” in a contract, as well as annuitize other assets. Today, annuity holders who want to do that must exchange a single annuity for two smaller annuities, and then annuitize the assets in one of the new annuities.

        “This is a very encouraging step made by Congress,” said Kim O’Brien, executive director of NAFA. “This shows us our lawmakers are recognizing the importance of fixed annuities for retirees and those planning retirement.”

        Currently, deferred fixed annuities are the only retirement product that can guarantee an income stream, a minimum interest rate to ensure tax-deferred accumulation, and protect 100% of your principal as well as prior interest from investment market downturns, O’Brien noted. H.R. 5297 would allow more retirees to utilize these products to secure their retirement income if President Obama signs this bill into law.

        Frank Keating, president of the American Council of Life Insurers, Washington, also put out a statement hailing the bill, “The provision provides additional flexibility to a product that is playing a crucial role in helping Americans achieve retirement income security.”

        I hope you found this useful.  If you’ll allow me, I’d like to make a suggestion.  If you’re like me, you’re probably tired of watching the Market “ticker”, in the corner of the TV during news, go up and now today down.  If I had my nest egg in the market it would make me worried sick that today might be the day the whole thing collapses and I didn’t get out soon enough to save my retirement funds.

        Most people stay in the market because their afraid they’ll miss their big opportunity to make a ton of money.  But I’m afraid those days are gone for awhile.  If the market goes “south” again and you lose 40% you would need a 60%+ gain in the market just to get back even. (the market hasn’t done it yet) So how old would you be if it took 24 years like it did during the depression?  How long will the money last?  What happens when inflation kicks in from all the “funny money” the Feds are printing?  What’s YOUR plan?

        So, as they say, (whoever “they” are) what’s a body to do?

        With the Dow up over 11,000 (at least at the moment) you’ve probably made back some of your losses.  Doesn’t it make sense to move enough of your principal to cover your income needs into a Bonus Fixed Indexed Annuity and leave the rest in the market to “gamble” with.  That way if the market does continue it’s gravity defying rise, you’ll still be able to capture a large portion of the gains (give up 3%) but if the market turns sour, which it seems to do on a whisper of negative economic news, you can’t lose your principal or your interest earnings.

        Here are a few more things you should know:

        * I can calculate just how much you’d have to move to get the desired income you MUST HAVE  and you can leave the rest in the market. (now your future’s secure)
        * it would add 5-10% to your savings immediately and would start earning interest on the bonus as well as your premium right away.
        * Guarantee no loss of principal – never have to worry again! I call it “sleep” insurance.
        * earnings can be tied to a blended index with a 3% cap (our clients earned from 17-65% last year in this index)  Would you give up 3% to never see another negative 40-60%?  ALL DAY LONG would be my answer!
        * 4% minimum Guarantee for income or the index growth, whichever is greater.
        * Guarantee you’ll have an income for life (this is like setting up a personal pension)
        * Give you 100% liquidity for nursing care, terminal illness or death
        * Although it’s not law yet it looks like the feds are going to give annuity holders even more flexibility.
        * Heirs would inherit qualified funds (IRA’s etc) in a tax favored manor
        * Tax deferral (don’t pay taxes on money you’re not using.  Remember that whatever % you earn in a brokerage account or CD’s is reduced by your tax rate)

        Folks, I understand the desire for high earnings but again would you give up 3% to never see another negative 40-60%. Or why would you settle for CD or money market rates below 2% when you can get a guarantee 4%?   To me, this is a no brainer.

        IT’S NOT THE PERCENTAGE RETURN THAT COUNTS – IT’S THE THE AMOUNT YOU GET TO KEEP!

        If you’d like to know what your lifetime income could look like in this program, just contact me and I’ll be happy to run the analysis for you.  I won’t cost you anything but a bit of your time & I can tell you exactly how much you’d have to move to guarantee that for your lifetime you’ll have the income you need to maintain your lifestyle. If you have questions about any of this, please, don’t hesitate to ask.  Click here now!

        Safe Savings,
        Roger

        PS:  If you found this information helpful please pass it along to a friend or family member.

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          Einstein & the Power of Compounding Interest: All You “NEW RICH” Listen Up!

          Thursday, October 7th, 2010

          There’s a new class of investors and savers in their 20′s & 30′s know as the “New Rich”.  (If you’re not one of them you can be.)  If you are one of those making millions in internet marketing, real estate investing etc, then you need to pay attention. Real wealth is made – or better- saved over time and you’re about to see just how “friendly” time can be for your investments.

          Let’s start with this:  THE EARLIER YOU START SAVING THE MORE YOU’LL HAVE LATER! I’m sure you’re calling me “Captain Obvious” right now but you really need to understand the power of compounding and just how much more you can have by starting early. Here’s an example:

          Let’s say you’re 25 and begin saving putting $200 a month in a tax-deferred retirement plan earning 9%. Your friend starts investing in the same plan at 45, but puts away TWICE as much money as you — $400 a month.

          At age 65, you will both have invested a total of $96,000, but YOUR investment would have grown to $884,000, while your friend’s investment would be worth only $268,000. The reason your investment has grown so much more than your friend’s — even though you both invested the same amount of money — is because of 20 extra years of compounding. That’s why Einstein called it the 8th wonder of the world!

          It’s also called triple compounding in a deferred account; you earn interest on your principal, interest on the interest & interest on the money you would have sent away in the form of a tax.

          An even better way to do this is in an overfunded life insurance policy where you grow it tax free, it comes out as tax free retirement income and goes to you heirs tax free as a death benefit.

          If you’d like to learn more about these “out of the box” strategies, just click the “FREE CONSULTATION” button.

          Save Savings
          Roger

          PS – If you found this information useful, PLEASE, hit the like button & leave a comment.

          PPS – Tell a friend about this…you don’t want to keep all the wealth to yourself do you?

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            Dan Akroyd & Eddie Murphy Already Played This Scene!

            Wednesday, October 6th, 2010

            You’ll have to read on to find out how that title applies to this article but it’ll be worth it.

            First I want to welcome all you new subscribers.  You’re proving that your one of the smartest people on earth because you recognize the benefit of learning new and even difficult and uncomfortable facts, which this blog provides for your retirement saving growth and to enhance your life!

            Of course the market rally of September is the BIG news and has everyone all a atwitter.

            * No matter the fact that it only got us back to the high of May, when we had the so called “Flash Crash”.

            * No matter the fact that those that lost 40% + back in ’08 need better that 60% gain to get even which makes Septembers 8.8% gain just a “little” shy of the mark.

            * No matter the fact that several times in our past great Septembers have been followed by severe downturns.

            I hate to bust the happy bubble everyone is on but there’s a better chance that we’re at the top of the roller coaster getting ready for the biggest dip of the ride than that we’re a climb to all time market highs!  Why do I say that?  BECAUSE EVERY OTHER PERSON WITH A BRAIN IS SAYING IT!  You know it in your heart of hearts don’t you?  despite your joy at seeing some gains in your account you’ve got this uneasy feeling that somethings about to happen – and it’s not good! LISTEN TO THAT STILL SMALL VOICE AND TAKE ACTION NOW!

            “Those who fail to learn from history are doomed to repeat it!” So said Winston Churchill.  It’s so simple when you really think about but it presumes that A) you actually study history & B) that you actually care!  So do you – care that is?  Now is no time to have a blasé attitude toward you retirement savings.  Let’s look at some recent history.

            I mentioned the “Flash Crash” of May.  I’m sure you remember that day – the day the market collapsed from 10,862 to under 9,869 in a few minutes!  My heart was in my throat when I thought about all those people I’d warned and didn’t listen and now just lost a ton of money.  Of course the market recovered to around 10,520, so the impact wasn’t as devastating but it was a warning siren.

            Many of you may have heard that someone just pushed the wrong button that day – false alarm, no harm no foul – and so you never gave it another thought.  Well the truth has been released by the SEC and the news is petrifying. Seems it was business as usual.  There was a large sell off by one company that took place, which is not an unusual thing but because of the nervousness of investors it sent everyone into a panic sell off.  By the end of day it had recovered some but not before the damage was done.

            This reminds me of the movie “Trading Places with Dan Akroyd and Eddie Murphy.  (Go rent it….good lesson)  Our hero’s get there revenge by setting of selling frenzy to bankrupt their nemesis.  The scene so parallels what happened in May it’s scary!  MAY’S “FLASH CRASH” SHOULD HAVE BEEN A WARNING BECON TO EVERYONE…THE TREMORS BEFORE THE VOLCANO ERUPTS…THE CANARY IN THE COAL MINE!  GOT IT?!

            There’s more to this though and that’s where history comes into the picture.  After the crash of 1929, we went into a sideways market mode like we’re in today.  Not much in the way of gains but an ever so slow climb and everyone thought the bull market was back when in fact it was just a bear market rally.  Eerily our trend is virtually identical to the graph below comparing the 30′s depression with today.  YOU CAN SEE WE’RE RIGHT AT THE PEAK BEFORE THE FALL!

            IF HISTORY DOES REPEAT ITSELF, WE’RE VERY NEAR A CATASTROPHIC COLLAPSE OF THE MARKET THAT COULD TAKE YOU YEARS TO RECOVER FROM!

            Now I can’t say for sure that it will happen…no one can!  But I can tell that it HAS happened before and could again.  So the question is are you willing to bet the house that it won’t happen this time?

            Here’s a suggestion.  You’ve probably just made some gains in your accounts.  Why not siphon of the principal to put into some safe money products like I’ve been talking about and leave the gains in the market if you like?  This way your principal will now be safe and provide:

            * a bonus to add to your savings (add back 8-25% to make up for some losses)

            * Guaranteed compounded interest earnings for income (4-10%)

            * a link to index gains for higher potential yields (in case the market does climb) BUT NO LOSS GUARANTEED!

            * Tax deferral

            * Guaranteed income for life

            * and much more

            Just look at some of my past blogs to get an idea of the power of these products to keep your money safe and get STRONG guarantees.

            I truly hope you’ve found this article beneficial.  If you did, please ACT ON IT!  If you’d like to explore the options available to you don’t just click the “FREE Consultation” button on the upper left side of the page.

            I truly hope that history doesn’t repeat itself.  But if it does, shouldn’t you protect your retirement savings nest egg?

            Save Savings,

            Roger

            PS:  Now hit the “like” button and leave a comment!

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            New Video Reveals Secrets to the Perfect Retirement Investment & Income Survival Kit!!

            Saturday, September 18th, 2010

            Thanks for watching the video! I hope you enjoyed it. I wanted to take a few minutes to recap what you just saw and help you incorporate these 7 elements into your Retirement Survival Package. To recap, the seven key things you need for the PERFECT RETIREMENT INVESTMENT AND INCOME SURVIVAL KIT ARE:

            1) Safety: I’ve worked with pre-retirees & retirees for years and one thing they ALL have in common is THEY HATE TAKING LOSSES!  So then why do so many I meet continue to  put their money at risk?  Here are a few reasons:

            * It’s all they know. Most folks just aren’t market savvy and are only in it because that’s what their 401k administrator said to do, that’s what their friends are doing, that’s what some advisor or broker told them to do – simply THAT’S ALL THEY KNOW TO DO.  The problem is they don’t know anything about how to get in and out of the market, move money around and avoid losses.  It’s those folks I’m trying to help because there IS  a better way; they (YOU) just aren’t aware of it because your banker, brokers & others either aren’t aware of it or are aware of it and won’t show it to or mention it because they don’t sell it and they KNOW it’s better than what they’re offering.

            * Greed!! Some people are just greedy.  They want the big earnings like we had in the 90′s and they’re convinced the market will come back even thought they keep taking losses, risking everything when the long term market net average returns are only 7-12% roughly. In fact for the last 10 years the S&P average is -4%, while the S&P average for my products is +4%; that’s an 8% spread in my favor.  My suggestion is take all your retirement savings, go to Vegas, put it all on black and spin the wheel.  For the average person it will be more fun and you’ve got just as much chance of winning.  There are products that will give you 4-10% GUARANTEED with NO RISK OF LOSS of your principal OR what you earn.  So why risk it?

            * Comfort zone: We all have a comfort zone.  That thing we’ve always done and even though it hurts us once in awhile we won’t change no matter what.  Yogi Berra said it, “When you come to a fork in the road, take it.”.  Obvious right?  Yet most people are at that fork in the road right now and are choosing to ignore the danger signs and drive right through the intersection to their demise.

            THE MARKET IS NOT SAFE – NOT STOCKS, MUTUAL FUNDS OR BONDS – YOU CAN LOSE YOUR MONEY – BUY AT YOUR OWN RISK!  YOU KNOW IT, I KNOW IT SO DON’T DO IT – PERIOD! I can show ways to get guaranteed growth, guaranteed no loss of principal on earnings and more.

            2) LIQUIDITY: This is simply the ability to access your retirement savings in case you need money for an emergency .  Face it YOU DON’T WANT TO SPEND THIS MONEY!  It’s for your retirement income, right?  How liquid is the money if you take losses in the market?  It’s not – IT’S GONE!  Is it liquid in CD’s?  NO!  You have to pay a surrender charge to take anything out.  I have products that solve this problem.  For major emergencies like Long-Term-Care, terminal Illness or death you can draw out 100% with NO penalty.  For smaller emergencies, like fixing the roof, buying a new hot water heater etc., you have access to 10% with no penalty.

            3) TAX REDUCTIONS: None of us like to pay anymore taxes than we have to and the way things stand now, taxes will be going up.  If you had a CD at the bank making 4% and I asked you what rate of return you were getting you’d say 4% right?  Well it’s not true because you have to pay taxes on the earning each year whether you use the money or not; you get a 1099 right?  So you’re 4% is actually 4% – the taxes = closer to 3%.  Same goes for your brokerage accounts.  My products avoid this and give you tax deferral so as long as the money sits and grows it gives you TRIPLE COMPOUNDING – get interest on your principal, on the interest earned and on the money you would have sent away in the form of a tax.  If you didn’t have to pay the tax each year, how much would you have?  I can also provide tax benefits to the heirs.

            4) AVOID PROBATE: When you die your estate goes through probate unless you have a trust set up.  There are 4 problems with going through probate:

            * Time: There’s a delay of a few months to 2 years before you heirs see a dime.

            * Cost:  There are court costs and attorney fees (4-7%)

            * Publicity:  If your a private person that doesn’t like people knowing your business you won’t like this because the information is available to anyone through the court house, news paper and internet.

            * Contestable: Wills can be contested at anytime causing further delay.

            5) Avoid Medicaid Spend-down:  When you go into a Nursing home you are NOT entitled to Medicaid benefits until you’re impoverished or have no money.  This can cost you around $70,000 per year.  In other words if you have $350,000 in your retirement savings, it will be gone in 7 years, unless of course you have Long-Term-Care insurance (which I can help you get by the way).  There are other products I have that will help solve this problem as well.  But think about this – what if you have you money in the market at a time when the market is going down and you’re taking losses and now have to pay $70K on top of it.  What happens to your spouse?

            6) Great Rates of Return:  I’ve already mentioned this but it bears repeating.  I have products that will give you 4-10% Guaranteed growth with NO LOSS GUARANTEED!  The only way your account can go down is if you reach in and take the money out.

            7) Income for life GUARANTEED! THIS IS NOT A MISPRINT!  IT’S TRUE – THERE IS ONE AND ONLY ONE PRODUCT THAT GIVES YOU A GUARANTEED INCOME FOR LIFE THAT YOU CAN’T OUTLIVE EVEN IF YOUR ACOUNT BALANCE GOES TO ZERO!

            I know what you’re asking, “Ok, Roger, what is the product that can do all this?”  ANSWER: AN ANNUITY!

            I’m not going to take the time here to go through all the variables but the new bread of Fixed Indexed Annuities will give you the perfect survival kit for this new economy.  There’s lots of variations on these products and you need an expert guide to help you sort through them.  That’s where I come in.

            I’m happy to set down with you, analyze your retirement savings and income plan, evaluate your goals, tell you where you’re vulnerable and show you how to correct it and which product out of hundreds will get the job done.  ALL AT NO COST OR OBLIGATION TO YOU!!  Even if you chose to do business with me NOTHING comes out of your savings to pay me – the insurance company pays me.  There are NO fees anytime unless you elect to add some rider to the account.

            * this is insurance for your retirement nest egg

            * It’s guaranteed under contract by the Insurance Company

            * If something happened to the insurance company it’s re-insured or backstopped by other insurance companies and also by the Guarantee Association of each state (up to $300,000 in North Carolina)

            * You can never lose a dime:  NO ONE  has ever lost anything in an annuity from market collapses.  Even during the Great Depression the Insurance Companies as a whole only lost 6/10 of 1% of their net value and were influential in rebuilding Americas wealth.

            *  Many of these companies are hundreds of years old

            So I ask you.  ARE YOU THIS PROTECTED IN YOUR CURRENT PLAN OR IS THIS THE BEST RETIREMENT SURVIVAL PLAN YOU’VE EVER SEEN? If you like my plan, just get in touch with me and walk you through how to implement it.

            For more information on how this might fit in your future plans, just click here.

            Safe Savings,
            Roger H. Ely

            PS: If you like this, please click the “like” button and/or leave a comments

            PSS: Who do you know that desperately needs this information? Pass it along!

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            The Perfect 401k Employee Benefit Retirement Plan for Small Business That WON’T COST YOU A DIME!

            Saturday, September 18th, 2010

            One of the problem business owners have – especially the small business owner – is how to set up their retirement plan without having to provide it for the whole world! If you try to set up a 401k or other Federal plan you have to include your employees. Now as a small business owner myself, I want to look out for my employees I GAVE THEM A JOB! But when I think about the extra cost of setting them up with a 401k it’s out of the question; especially in these turbulent financial times. I have the perfect 401k alternative solution! But more about that later; first lets look at the problem.

            THE PROBLEM!

            When the Feds came up with brilliant idea to allow 401ks, they also included certain negative features that, in my opinion, are not good for you OR your employees.

            * First of course, if you do it for yourself, you have to offer it to employees.
            * Second there are limits on how much you can save per year.
            * RISK! The biggest problem I see is that what you can save is at risk of loss, as in most cases your money is IN the market.
            * No access to funds till 59 1/2 without a 10% penalty and of course pay the tax.
            * It’s tax deferred but that only postpones the tax AND the tax calculation to a later time when most agree taxes will be higher.
            * Related to this is the fact not only can’t you touch the money till your 59 1/2 you HAVE TO TAKE THE MONEY OUT as a Required Minimum Distribution at 70 1/2. Why? Obviously because the Feds want the tax. (Do you think they came up with the new Roth conversion out of the goodness of their hearts? They wanted to accelerate the payment of the taxes on IRA’s – to do the conversion to TAX FREE you first have to pay the tax on every dollar.)
            * Taxable to your heirs. In most cases your heirs will be forced to take a lump sum distribution costing them 50-80% in taxes depending on your estate tax situation. Wouldn’t you like your heirs to get more the 20% of what’s left?

            SO WHAT’S THE BIGGEST PROBLEM HERE? T-A-X-E-S! So lets look at the tax issue.

            Did you know that average tax percentage since the inception of taxation is around 65%? We’re currently at one of the lowest times in history a good time to pay the tax on the seed rather than the harvest. Did you know the highest tax bracket ever was in 1945 at 94% for those making over $200,000? At that time the deficit was ONLY $2 trillion. Now the deficit is over $13 trillion and still climbing.

            With the Federal debt growing, what does the government need more than anything? MONEY! So let me ask you, “DO YOU THINK TAXES WILL BE GOING UP OR DOWN in the future?” If taxes do go up, you’ll pay tax not only on the contribution but also on the gain and, if your an employee, on the match. So again I say it’s a good time to pay the tax and move to a product that will be TAX FREE moving forward.

            One other thing most don’t plan for is that they might just have a HIGHER income when they retire. How’s that you ask? Well in working with many seniors I’ve found that yes when they first retire their pension, Soc. Sec combined is usually lower than whet they made when working BUT when they hit 70 1/2 and have to start taking minimum distribution, their income goes up and in most case I’ve seen their income is now higher than their working years and they find themselves in a higher tax bracket AND YOU CAN’T DO ANYTHING ABOUT IT!!

            THE SOLUTION!

            Before I tell you the name of the product let me tell you the benefits… you know… build the suspense. (NO PEEKING!)

            * GUARANTEED NO LOSS (unlike market risk products)
            * Tax Deferred grow (no 1099)
            * TAX FREE INCOME at retirement
            * TAX FREE to your heirs
            * Competitive internal rates of return
            * Creditor proof
            * Available as collateral
            * LIQUIDITY, USE AND CONTROL (no age limitations, access cash at any time)
            * Living benefits for Disability, long term care, terminal illness

            So what is this miracle financial savior?

            AN OVER FUNDED INDEXED UNIVERSAL LIFE INSURANCE POLICY!

            SAY WHAAAAT! You read it right. A properly structured life insurance policy can do ALL this.

            (PLEASE – PLEASE – PLEASE don’t discount the power of this plan out of hand. There are a lot of naysayers out there. Most don’t sell this type of program and therefore know NOTHING about how it actually works. Many seasoned Life Agents don’t know how to set this up properly. Call with questions before you just dismiss it out of hand.)

            Life Insurance was designed for LIFE BENEFITS not just death benefit. True, Life Insurance is designed to replace your income if you die so your family can continue on but it can accomplish sooo much more as you can see.

            This is perfect for the small business man because you DON’T have to provide it to your employees. Since I know you have a big heart and would want to help them, the good news is all you have to do is offer them the same opportunity I’m offering you and they can save for retirement just like you but YOU don’t have to pay for it.

            I know this is a new concept for you and there’s a lot more detail I can share with you but we’ll save that for a retirement income analysis when we meet face to face. Just contact me to find out how this might fit into your retirement plan.

            Safe Savings,
            Roger

            PS: For more info just request a Free Consultation & Retirement Income analysis

            Posted in Life, Strategies | No Comments »

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