Archive for July, 2010
More and more we see parents spending between $15,000 and $20,000 on their children’s elementary thru High School Educations. Most can’t really afford it but few know what it is costing them. Most of these families don’t have the amount of money they spend on these schools going into their long-term saving accounts. To make matters worse these children aren’t learning to make money to take care of their parents. This current generation of parents will have spent hundreds of thousands to educate their kids and because most waited until their mid 30s to have children they will be less than 10 yrs from retirement when their children’s education is through.
Kids need a great education to make it in this world but for the vast majority of families this platinum private school is costing much more than tuition.
What do you think?
The country is in turmoil and several people you know have been hurt by the falling economy. It’s easy to get caught up in the fear and uncertainty, even seasoned business people are a little unsure of their next step. But this recession is going to be so deep and so long that with just a little knowledge and planning you can come out of this storm happier, healthier ,and richer than you ever were before. There are three simple steps to really winning in a recession and I’m going to give them to you. Your job is to act on them because if you don’t there won’t be any love fest in your future, just pain you could have avoided.
Protect yourself from any potential lose in an unstable market.
This is the most important step. Most people who call themselves conservative are anything but when it comes to their money. If you have any of your money exposed to an uncertain market you are playing with fire. You are going to need that money when the market crashes for one simply reason, when nobody has any money the person who has even a little money becomes rich because they can name their price for real assets. Do you remember Carlton Sheets in the 80s on television talking about buying properties for pennies on the dollar. Prices are falling now but are no where near the bottom that they will go to when interest rates, taxes, unemployment, foreclosures, and inflation all increase at the same time. That is when you want to have a nice stock pile of cash sitting on the sidelines to grow your wealth. Get your money to high ground. High ground is not an IRA, 401k, thrift savings plan or any other qualified plan. All these plans have the potential of loses and possible higher tax rates in the future. These plans aren’t conservative they are risky and you won’t be able to make moves when opportunities come from the falling market. Don’t lose money when everyone else is losing money, can you feel yourself falling in love with the recession,yet?
Get a Real Financial Education and Advisor who understands the seasons of Money
Most people will lose a lot of money in the market because either they or their advisor does not understand the season we are in. We are not in the put all you can in the market because stocks are low season. We are in the I don’t know what the heck is going to happen season. When you are in this season you lay back and wait on your opportunities. Now would be a good time to come to my wealth workshop and dinner. If you want to understand the market, taxes, different types of investments and how to profit in this season that’s where you need to be. Most people simply are experts at what they do for a living and novice at dealing with money. Some of the best savers put their money in the riskiest places. Investors put their money in the market and received .08% over the last decade, even with vehicles paying guaranteed rates of return at 5% and above for the whole decade. How does that happen, poor financial education. Knowing enough to make guranteed returns while everyone is losing money, I’m sure that would give you a warm sensation all the way through this recession.
Take speedy and decisive action once you understand whats going on
About three years ago I hosted equity management seminars for my clients who had tons of equity in their properties. I was warning of an impending storm in the housing market and I advised them all to get their equity to high ground. Those that listened got the several hundred thousand dollars in equity out of their homes before the market crashed and are now riding out this market from a very secure position. Those that didn’t blew a huge opportunity that will not return anytime in the next decade. When the housing market began to implode my phone rung of the hook. I felt like Noah on the ark after the door closed. There was nothing I could do after that point but they all knew what they could have done before the market dropped. Most people will lose their life saving in this next downturn because of a failure to educate and act quickly not because of ignorance to the impending storm. To truly experience recessionary bliss you have to tak action. If you save what you have, make money without lots of risk , and benefit from the financial environment you will fall deeply in love with this recession.
I invite you to my next wealth dinner on July 29th @ the BWI Westin. Go to www.wealthdinner.com to register.
If you protect your money from this unstable market, get a proper financial education, and take speedy action, you will come out of the storm happier, healthier, and richer.
I love my President but damn can you please stop with the firing of Black officials. I’ve tried to keep some perspective on the events of the last 18 months but the reactionary firing of some of the best hearts and minds that America has to offer has really gone to far. My President Obama seems to have a zero tolerance policy for Black leaders in Government because he turns his back quicker than any President in American history on the qualified folks he put in place.
Note to my President, either you believe in your folks or you don’t. You are asking for our full support and weare willing to give it to you but on the condition that all people be treated fairly. Below are three huge examples of poor judgement on the part of my President, whom I love dearly.
The Firing of Van Jones http://voices.washingtonpost.com/44/2009/09/06/van_jones_resigns.htm
Now Mr. President how could you fire one of the most brilliant brothers in the country. You fired the one brother with a real plan to combat global warming while building a ton of green jobs. Now we are on record as having the hottest temperatures in human history this year and unemployment would have been helped by Van Jones’ plan.
Look up Van Jones Credentials sometime people he is a diamond among ordinary Americans. Bad move Mr. President.
The Firing of Desiree Rogers
How could you Mr. President. Firing Ms. Rogers was a bad move for two reasons. One because surviving Washington is largely about who is watching your back. You brought a qualified sister from home who you know and trust to handle your affairs. George Bush would cut off his own hand before he let one of his true friends go, and none of his friends were qualified. Second, the secret service is supposed to keep uninvited guest, yes even rich uninvited guest out of the party. You just thru Rogers under the bus and kept it pushing. Not smart and very disloyal on your part, sir.
Forced resignation of Shirley Sherrod
Twice is a coincidence but three times is a policy decision. Having Mrs. Sherrod resign on the side of the road shows a heartless and careless approach to leadership. I know I did not vote for a heartless and careless guy so it really hurts to see something like this happen. If she needed to be fired it could have happened next week or in a month. The fact the she was forced to pull to the side of the road and text in her resignation says it was a political matter. This is a good women with a great and inspiring story to share about race and class in America. BTW, did you see the two old white farmers whose farm she saved 20 years ago on tv praising her and saying how wrong you guys were. That didn’t have to happen but you are playing politics when you should stay focused on doing the hard job you have been trusted with.
Bottom line Mr. President, stop firing the brilliant Black folks you have working for you. The Black unemployment rate is high enough without your help,sir. We are willing to fight for you on health care, fin reg, and hopefully the ending of this pointless war but not if you are unjust. Cut it out or come 2012 you”ll be getting fired!
OBAMA 2012 supporter
You were wrong on that Rev. Wright deal as well, you should watch the whole speech next time.
Now That an Old White Guy Agrees with me, can we move on to Saving Your Money from the Impending Crash?
Although it didn’t make national news yesterday Robert Prechter, market forecaster and social theorist said what the top protection first planners have been saying for year’s. The market is going to tank in a huge way. Greater than ever before. he predicts the market will drop below 1000. Yes, I said 1000 . http://www.nytimes.com/2010/07/04/your-money/04stra.html
1000 will wipe out most people reading this post, it will wipe out the parents, aunt, uncles, grandparents of most reading this post. most would be wiped out at 5000,4000, or 3000. Especially when the drop from 14,000 to 7500 cut their life savings in half. The next drop is game over. A portfolio can’t recover in a lifetime from that type of hit. http://www.nytimes.com/2010/07/04/your-money/04stra.html
What are you doing about the facts of where you now stand? I want to help you get to safety, the light you see at the end of this recessionary tunnel we are in is a speeding train just looking to run something over. You have got to act to reposition your wealth right now.
Read the article below for your self and then call me for a solution for your family.
Life insurance is quite possibly one of the greatest human inventions and one of the most misunderstood tools of all time. To really get the full benefit of life insurance you need to fully understand what all of the uses are for the Living. Now maybe you are thinking there are no uses for the living, because someone has to die for someone else to benefit, and that is where you would be wrong.
The Rich get Richer through Education
The financially educated use insurance completely different then the financially uneducated middle class and poor. Most of America with college and post-graduate educations have a third grade financial education.
Life insurance is not in case you die.
Real Life Insurance is in case you LIVE a really long time, become Disabled or Die.
In case You Live a really Long Time
First and most importantly,it’s called a life insurance policy because it has the ability to produce a lifetime of tax-free income for the owner of the policy. If set up properly you can receive tax-free non- reportable income from an insurance policy throughout your retirement. This income comes from the dividends the policy pays the policy holder. This payout does not change the death benefit to your heirs. So you can have your cake and eat it too. The wealthy love this feature and it is why they use policies to take in their income in retirement. The money that comes in is not reported on a tax return and no income tax is due. A great advantage in the U.S. tax code that estate planners use to shield their clients. Middle class people are told to do just the opposite by part-time sales people who don’t understand tax law and estate planning..
In Case you Get Sick or Injured
More bankruptcies and foreclosures are caused by illness than any other factor. When you can not work and generate income then you can’t fund your retirement either. Most people don’t realize that as soon as you go on disability at work they stop funding your 401k or IRA. So if you are long-term disabled your retirement plan just died the day you stopped working.
The right Life Insurance plan will have a waiver of premium that funds the insurance and the cash contributions you were making toward your policy. Having a term policy or a cash value policy without this provision is insane. It is more likely you will get sick during your working years than die so make sure you protect your potential risk for disability.
In Case you Die
News flash we will all expire at some point, maybe tomorrow and maybe 90 yrs from tomorrow. One of the great tax advantages is you are allowed to leave millions to your heirs through life insurance, tax-free. The wealthy have been using insurance as an estate planning tool for years. The living benefits out weigh the benefits in death but most look at Life Insurance as something for their children or spouse and not as the best way to create a private pension plan. What other vehicle in the financial world allows for enjoyment and use of assets while you are alive. In addition there will be cash for your heirs after you expire, all tax-free.
Its time to take action and get a better financial education so you can develop a better plan for your life and the lives in your family. You have no idea how sweet life can be with a plan that works. Call me today so that I can introduce you to a team that can help you learn what you need to know to succeed.
Wealth Management -410-484-2717