Archive for category money
The name of the game is Income. It will always be Income. And for those who really understand living the life you dream of it will always be income.
These silly commercials on TV have people thinking all I need to be is a millionaire and my retirement issues are solved. Try retiring with 1 million dollars after leaving a six figure job. If you want to retain the principal and not get crushed by inflation you can’t draw down more than $40,000.00 a year in Income. That’s $40,000.00 before taxes.
The object of the game is to have the same or better income after you retire, as close to tax-free as possible. Even the excellent savers are going to have a hard time meeting those goals because the mindset, education, and financial instruments being used can’t get you there.
That’s the not so good news but not to worry. I have nothing to sell you but right now you need to stop and think about what I’m about to share.
What you need is Income. Stable, abundant, consistent Income.
How do you know that you have enough Income? It will meet all of your needs, most of your wants, and allows you to leave a tax-free financial legacy for your heirs.
How do you create this income?
You develop a system through testing that allows you to turn 1 dollar into 10 and then 10 into 100, and then scale up.
Let me give you an example. When I first started as a mortgage broker in 2001 I used to cold call everyday and hate it. It was not just the only type mortgage marketing I knew but it was the only type of marketing I could afford. Did I mention I hated it?
Luckily I discovered a better system called direct mail that allowed me to target the right customers with the right marketing piece and best of all I only had to talk to people who were interested.
I tested a mailing campaign with a $1000.00 in direct mail. I closed three loans that generated a net $5000.00 return. I scaled up and started sending out $4,000.00 in direct mail monthly and then $8000.00. In the first 9 years as a mortgage banker we averaged 1 closing every 3 days. This was a system and the system was easy to scale.
Financial advisers are incredible if they can get you a 10 percent return of capital. I can’t give an adviser a thousand dollars and expect a five thousand dollar return consistently. Only business and marketing pays that type of return. The hard part is it requires you to put in whatever time, effort, and a little money to find the right business opportunity to turn into a system.
Everyday people operate in and around systems that can be scaled if only that mindset was present. Once you have the system and you begin to scale it, keep you extra capital in tax-free instruments that stay liquid. Don’t play games in the market with your capital.
Many people who think not having enough money is their issue. The true is not having a solid system to invest and scale their money is the real issue. investing $1000.00 in a great system allowed me to flourish. I have friends with hundreds of thousands who feel stuck on well-paying jobs because they don’t know how to turn those thousands into millions.
At the same time I see business owners everyday who suffer because they can’t make a business that does 2 million in sales grow to 5 million in sales because they haven’t invested their capital in marketing and customer acquisition, instead repeat the same performance year after year. At the end of the year they gather their profits and run to their broker who promptly gets them pitiful profits or losses.
Three Questions to ask:
1. What business do I have insight to that can yield a 5 to 1 or 10 to 1 return?
2. If I don’t have a business and don’t want one , who has a business that yields these types of returns and can I partner with them.
3. Can this system once successful be scaled to be 5 or 10 times greater?
4. What is the amount of Residual Income I need to have in place to be wealthy?
Wishing you Wealth, Wellness and Wisdom
Every day at least one social media friend post about a person under the age of 50 dying unexpectedly. It seems that most of the time that person has a spouse and or children. It also seems that within days of the untimely death there are people asking for donations to help the family handle the funeral cost.
If you are reading this chances are you have a family. I am also going to assume that you love your family, and are making big plans for your children. Some of these plans may include a great primary and secondary education. Others may include making opportunities and experiences available to your kids in arts and culture. Some even plan to make sure their children get a solid financial start once they reach adulthood.
I applaud your plans for your children. Your kids will have opportunities that you never even dreamed about when you were their age. Your hard work and sacrifice is paying for all of these opportunities as well as the basics, food, clothing, shelter, video games, etc. Congrats because you have a plan and the work ethic to get it done for your family.
The sad news is that you most likely have no real plan in place to fully provide the INCOME it will take to carry out those plans if you were to pass away prematurely. Thirty Seven percent of parents with children under the age of 18 have no life insurance. Fifty percent of the parents that are insured have less than 100,000.00 in life insurance.
People are dying every day on Facebook, Instagram, and Twitter and leaving their families broke. Even people who have six figure incomes are leaving their families in horrible financial shape.
The uninsured risk of being a parent is hitting more and more families every day. Many 30 and 40-year-old parents are being stricken with breast cancer, diabetes, stokes, heart attack and sleep apnea. Not to mention simple work and non-work related accidents and car crashes. The ranks of the six figure earners are exploding with women and minorities like never before in the history of the U.S.. The numbers for Blacks owning life insurance are 3% higher than the percentage of whites who own life insurance but the amounts are inadequately low.
The ranks of the properly insured grow smaller every day. Why? Because the idea of what being properly insured is has not advanced in the last two generations and the wealthy are the only ones truly taking advantage of the opportunity to advance their family legacy through the proper use of insurance.
Being properly insured means being able to totally replace your yearly income for the full time your family will need it. How long do your children and/or your spouse NEED your income? How long does your family need your spouse’s income? Depending on the commitments you have made that could mean 25 to 50 years. 30 year plans for houses, 5 year plans for cars and 20 year plans for credit cards. Do you have a plan that will pay for that long? Do you have total income replacement insurance that you personally own? If not, you are leaving your entire family in peril every day because you refuse to totally cover the risk.
A recent survey was done of six figure earning parents and they were asked how much life insurance protection they had. The number than had over $500,000.00 was less than 5%. The number the that had none was over 20%.The number that would have none if they loss or changed their job was over 40%. This is an epidemic problem. Can your family lose over $100,000.00 of yearly income and still operate at the same level?
Life insurance is about replacing your income to protect your legacy and not leaving things to chance. Houses, cars, and other obligations are all gambling if you do not protect your downside risk. Let’s truly be honest about where we are financially because the risk is easily covered if we are determined to do so.
How to replace Income
$500,000.00 can only replace about $20,000.00 in income long term because you can’t really get more than a 4% guaranteed return in any stable financial instrument. That means to replace $100,000.00 you need about $2.5 million in life insurance. Put in the proper instrument it will pay $100,000.00 per year forever. It will pay your spouse, your children, and your childrens’ children, etc.. Learning how to do this properly and for as little cost as possible is an art.
BTW, If you have coverage on your job you need to purchase proper coverage that you own. Having insurance on a job is like having no coverage at all. If you lose or leave your job that is exactly what you will have only you will be older than you are now and the coverage will cost much more. Don’t fall into the trap that gets so many Americans. There are so many Americans looking for proper coverage that they are simply to old or too sick to qualify for. Insurance favors the young and the healthy and time is not on your side.
The structure of a proper income replacement plan is key. If you don’t have a plan that will replace your income for the next 50 years minimum then call me so I can help refer to an awesome advisor and teacher.
Having no plan is a plan to fail, and today’s parents are failing their children everyday by only considering the possibilities if everything remains perfect. Nothing ever goes perfectly. Plan for the worst and hope for the best and you will never have any regrets. You need a plan that covers you and your family if everything goes wrong. By law you cannot drive a car or own a home without proper coverage. Why can you be a parents without proper coverage. So much is riding on YOU!
If you need more information and a referral to a great professional, email me at firstname.lastname@example.org
Wishing you Wealth Wellness and Wisdom
Manager of Wealth
You may not consider yourself wealthy but if you are reading this chances are you have more true wealth than you can even imagine. In addition, you have an opportunity few will ever know, the opportunity to pass on four types of limitless wealth to your heirs. To pass on this wealth you must be purposeful in the legacy you leave, because if you are not you will pass on poverty and hardship to future generations, even if than is not your intention.
For the purposes of this article let us define wealth as a perpetual passive stream of income that meets all of your needs, most of your wants, and allows you to pass on a legacy of wealth for the next generation.
Now that we have defined what wealth is let’s discuss the for different types of wealth and how to build them, enjoy them and leave them for the next generation.
The first type of wealth are your CORE Wealth or Human Wealth.
Core assets are your Values, your Health, your Character, Family, Talents, Habits, Spirituality, and Heritage. It would be impossible for you to be where you are now with out these core assets. Teaching your children how to be happy, healthy, and loving human beings is essential to their prosperity. People who do not enjoy the benefits of being well endowed in these areas rarely find happiness because they are totally disconnected from any core values and family.
The next area of wealth is your Intellectual or Wisdom Assets.
This includes your knowledge, Education, Skills, Systems, Ideas, Methods, Experiences, Reputation and Traditions. It is important for the current generation to teach the next generation how they became successful. Most financial wealth comes from systems, methodology, and connections. People often remark that people from certain families or members of certain groups seem to find success so easy, but that is intellectual wealth in action. To build this wealth make sure the next generation knows what you know. Write it down and pass it on. Mentor the next generation so they can skip some of the struggle and build on a more firm foundation. Do not send your heirs out into the world to start for scratch to prove a point. I have seen my community do this with its children and in the end it killed the wealth of the entire family because time, energy and money was wasted because there was no one to carry on the family legacy.
The next type of wealth is Financial Wealth or the Material wealth.
This includes your Real Estate, Stocks, Bonds, Cash, and other possessions. It is important to note that this type of wealth is just the things not the means to acquire the things. It is because so much focus is placed on this area of wealth that it is said wealth never last more than three generations. Become a student of the wealthy and what they do with their money. Forget about the stock market and all the crazy risk that poor people take. The wealthy use simple income protected and insured method to preserve their well for centuries to come. There are billions of dollars in family trust that can never be squandered because it was built properly.
The last area of Wealth is your Contribution Wealth or Civic/Social Wealth.
This wealth includes your Taxes, Charities, Time/Talents, Family Foundations, and donating your wisdom to others in need. These good works and giving to the community at large keeps you connected to the wealth of the entire community which ultimately benefits you and your family. Not passing on a tradition of giving and contributing to the community lowers your standing in the community. Make giving apart of your children’s lives. Attend and support charity events that align with your values. Feed the hungry and cloth the naked. Don’t wait until you have millions, do it right now.
Core wealth, Intellectual wealth, Financial wealth, and Civic wealth put together almost certainly assure a person will have a wealthy life and each area provides an ongoing passive stream of riches that will allow you to meet all of your needs, most of your wants and leave and even greater legacy to the next generation.
Look at the great families in your community and around the country and you will see them operating in all four of these areas. You will see that their wealth is never depleted because they have passed on much more than money.
If you had to give up one area of wealth and keep the other three, it would be wisest to give up the Financial Wealth because with the other three types of wealth you could get your money back in a very short time.
Wishing your Wealth, Wellness and Wisdom
Tony Brayboy discusses the reality of retirement plans and the small amount of spendable income that comes from traditional plans. Mr. Brayboy makes a case for focusing on INCOME instead of Lump Sums.
If you want to understand how to create the income you are looking for start here. Purchase and study this simple $7.00 book.
Go here Now:
Tony Brayboy’s The Big Payback http://readthebigpayback.com/3-matrix/
Wishing you Wealth Wellness and Wisdom
Mark Fuller – Manager of Wealth
A grocery store is a complicated place to shop if you want to truly be healthy and live a long life. More Americans are seeking to preserve their QUALITY of life through better eating and are now coming to understand that their choices in the grocery store must change. The world of personal finance, wealth building, and retirement planning has the same challenges as shopping in the grocery store. There are lots of good-looking investment and savings options but very few that are actually good for you. Few will give you the desired outcome which is a long happy life with enough passive income to enjoy your retirement and leave wealth to your heirs.
Below are a few simple rules that will help you be a better consumer of both food and financial products.
Rule 1 for Food
90% of your groceries should be real food from the produce aisle. The more raw food and living food you eat the more real nutrients you will absorb and the better your health will be. 90% of what is in a grocery store is not Food. It is a chemical compound that is packaged in an attractive wrapper but it is not food. Oreos, Twinkies, frosted flakes, spaghetti sauce etc, is not food. Apples ,Oranges, Carrots, Kale, and Bananas are food. If it comes in a package it’s probably not food.
Rule 1 for Finance
90% of all investment produces are prepackaged nightmares that come with too much risk. Avoid as much as possible IRA, 401k, 403b, Thrift savings plans, and mutual funds. These plans are mostly prepackaged garbage with very high hidden fees and lots of market risk. These products can only perform in a raising market but get hit hard every time the market falls. These products are the junk food of the finance world and American baby boomers over consumption of these products produced the greatest bull market in history that took the market to 10000 and beyond. Wipe away all the sales and marketing nonsense and realize that the stock market took off from 1982 to 1999 because baby boomers put all their money in their companies 401k,403b, and thrift savings plans and bought mutual funds. Did I mention that this group has 70% of all of the savings in the country? Over the next decade they will walk away from these products and kill the market for the rest of your lifetime. Avoid these plans and stick to safe products with guaranteed income and favorable tax treatment. You should be investing to create a pension or even multiple pensions. A focus on income and tax reduction is really all you need to understand about planning for retirement. Focus on INCOME!
Rule 2 For Food
Rarely do grocery stores market things that are good for you because they are not sexy. The sexy stuff comes in a fancy package and has a marketing slogan. There is a marketing campaign for every cookie, every toxic chemical in the cleaning aisle, every low sodium TV dinner. If it has a commercial or a mascot and people are buying it avoid it like the plague. When is the last time you saw a commercial for a grape or Kale. You body struggles to break down the things you see commercials for but it absorbs the nutrients out of the real food items.
Rule 2 For Finance
If it has a commercial in finance it probably has little to no financial use and too much risk. People are buying their insurance from lizards and Geckos, and dancing bears. They are being sold on the lowest monthly cost without considering what type of coverage they get for that money. That improper coverage leaves them exposed to many risk. They are walking around carrying big Orange Numbers asking “what’s you number.” The question has never been at what age you retire but at what Income. That big orange number doesn’t tell you how much money you can spend a month and what your tax burden will be.
The best financial products are not marketed on TV. The wealthy use another group products that are they are safe and unsexy. The wealthy look for income and products with low or no tax. In addition, they look for companies that have a track record of paying for 100 years or more. It’s hard to make that sexy, but that’s why the wealthy are wealthy.
Rule 3 For Food
Drink lots of Water but not bottled Water
About a decade ago the country finally got to the point that it agreed that water is very good for the body. This was a good thing. From that discovery the industry of bottled water took off. People stopped trusting water out of the tap and started carrying water everywhere they went. Grocery stores began to stack bottled water as high as they could and a trend began that shows no sign of slowing down, ever. In fact ,the worst public water gets the more bottled water will be sold. There is just one problem with this and that is that the bottle that holds the water is poisoning the water and that poison can cause cancer. In addition , fresh water loses its’ real value after three days so all the water in a grocery store is dead water, not fresh spring water like the package claims. Great idea but poor execution.
The proper water filters and a system that gives you alkaline water in PBA Free bottles is a simple solution. This truth represents a loss in sales of billions to the bottled water industry and the grocery store so don’t expect to see this anytime soon.
Rule 3 for Finance
Save as much money as you can for retirement but not in retirement plans
Americans have one of the lowest savings rates in the world. That may be because people have seen their savings wiped out over and over again since they started investing in the stock market in the 80s. The S & L crisis, the crash of 1987, the tech bubble 0f 1999, the real estate bubble of 2008, at least once a decade people are getting hit hard and that makes them not want to save. When America was a pension society they saved a lot more. It’s not that saving is wrong but like bottled water it’s the package you wrap your savings in. Why put your savings in the stock market? Why tie your life insurance policy to the stock market? Why play hunches and trends?
We can save in solid tax advantaged , non market exposed products that state the return before we invest. We can use produces that have no exposure to the up and down of the market. We always move forward no matter what is happening on Wall Street. Three simple questions to ask are, Can I lose Money, What is the guaranteed return, and What is the tax consequence. The answer should be favorable for all three before you invest.
Grocery stores and investment firms are big shining beautiful places with options and products laid out all over the place. Knowing which to choose is a matter of a proper education that develops into a sound philosophy. If you haven’t invested in that education then you simply put yourself at risk every time you enter either of these institutions. If you need a place to start try reading a simple text written by author Tony Brayboy called The Big Payback, it’s a short instructional book that’s worth a million dollars .
Here is the link: http://readthebigpayback.com/3-matrix/
Wishing you Wealth, Wellness, and Wisdom
Manager of Wealth