Posts Tagged finance
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 that 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 four different types of wealth and how to build them, enjoy them, and leave them for the next generation.
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 without 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.
Holding family meetings around the issues of health and happiness within the family is essential. It should be required attendance that all members of the family attend it the want present and future access to family wealth. If you are not passing along good health then you are passing along sickness. If you are not passing along happiness, then you are passing along imbalance and misery. Leaving money to unhealthy and imbalanced heirs is a waste because they will not have the tools and time to grow the wealth.
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. 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 from scratch, to prove a point. Starting from scratch on proves what a poor teacher they had. I have seen my community do this with it’s children and in the end it killed the wealth of the entire family. Time, energy and money gets wasted because there is no one trained to carry on the family legacy.
Journaling and manual writing is critical. Recording information on video can also be critical. Share your truth and history. What are the decisions that changed your life for the better? What poor decisions did you make and recover from?
What systems did you use of invent to create grow? Write it all down and pass it along.
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. 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 methods to preserve their wealth for centuries to come.c
There are billions of dollars in family trust that can never be squandered because it was built properly. You have access to the same tools but you have to put in the time to understand the process. You can’t teach what you Contribution
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. This 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 a part 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.
Studies have found that the number one leisure activity is meeting with tax planners to reduce or eliminate tax burdens. Do you know the difference between a tax deduction and a tax credit? You need to know this to build wealth.
How can serving others help you to become wealthy? Learn and teach.
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 an 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
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
Twenty years from now business schools will be teaching a course on How to steal big like J.P Morgan. While news organizations run stories for the largest fine ever paid by a U.S. corporation they are missing out one glaring fact. The U.S taxpayer is about to be paid back with their own money. J.P Morgan defrauded the markets for almost a decade and made hundreds of Billions in Profits and now they are being asked to give a tiny portion of the ill-gotten gain back.
It may be relevant to the issue that Bernie Madoff got 150 years for creating 18 Billion in loses. No one will ever go to jail for the hundreds of Billions J.P Morgan lost because they are better thieves with better lawyers.
Look at what has happened in the last five years and tell me if this isn’t a great lesson in stealing BIG:
1. JPMorgan’s $12 Billion BailoutBy DEALBOOK
2. Bailed out banks
The Treasury Department has invested about $200 billion in hundreds of banks through its Capital Purchase Program in an effort to prop up capital and support new lending. Here’s a list of the banks that got bailed out.
3. Profit Solid, J.P. Morgan Aims to Repay TARP Funds
June 17, 2009, 4:17 pm <!– — Updated: 3:55 pm –>
4. JPMorgan and 9 Other Banks Repay TARP MoneyBy DEALBOOK
Rank: 9 (Previous rank: 16) CEO: James Dimon Compare tool: J.P. Morgan Chase & Co. vs. Top 10
Wall Street Earnings January 13, 2012, 7:21 am <!– — Updated: 1:00 pm –>
6. Weak Quarter Weighs on JPMorgan’s 2011 ProfitBy BEN PROTESS
7. Goldman & JP Are Still Tops—But Dimon Takes a Pay Cut
Jan 16, 2013 12:07 PM EST
8. JPMorgan’s $7 Billion In Penalty Payouts Dwarfed By Monstrous Profits (CHARTS)
9. JPMorgan’s $13 Billion Settlement: Jamie Dimon Is a Colossus No More
If you understand these 10 articles you will understand that this fine will not cost J.P Morgan a dime. When the U.S. tax payers gave J.P Morgan 25 Billion for the bailout we gave them the a five year head start for all of the fines they would later have to pay. These last five years have been the best in J.P Morgan history and 13 Billion is a drop in the bucket.
If more fortune 500 companies took the approach of stealing Billions and paying fines five years later I’m sure they would be more profitable. This is why I know this example will be taught in law schools and business schools around the world.
Wishing Wealth Wellness and Wisdom
Manager of Wealth
The pure truth is that you have a 5% chance of retiring with enough money to live well after retirement. To join this 5% of people who are as rear as white elephants you will need a lot of information, great habits, and advice from an exceptionally informed advisor. My advisor in this regard is Tony Brayboy of Matrix Wealth Management and he can help you as he has helped so many wealth seeking people in the past. Get his new book The Big Payback.
Feel free to check out two chapters for free but get this book into your collection now.
Learn what you need to know to become as successful and you dream of being.
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It’s impossible to be in business for yourself since the age of 17 and not take some loses. Setbacks come with the choice of profession. But even after fighting through the storms of several businesses over my career I was totally mentally unprepared for the Tsunami that was 2008.
Going into 2008 I was in a pretty good position. Revenues at my brokerage were around $60,000 per month, I owned three investment properties with plenty of equity, credit was great, I had the best woman in the world, and I was the majority stake holder on three multimillion dollar commercial developments in Atlanta that promised to make me a liquid cash millionaire well before the age of 40. On top of all that my friends and family were all seemingly doing well in their lives as well.
Little did I know that a perfect storm was coming to destroy what it had taken a decade to build.
Within a few short months of the crash of 2008 the mortgage business would be on life support, property values would be trashed, the commercial lending market would freeze making it impossible to complete the sale, and my 7000 square foot home would go from $1.2 million to being worth $0 because the water supply around it was contaminated with toxic gas. Add to that two of my business partners now had wives suffering with breast cancer that would soon take their lives.
Pretty soon there were cash calls, lawsuits, hurt feeling, break ups, unbelievable stress and pain. Not just for me, but for most of America that was being rocked by the same storm. Everybody was looking for someone to blame and I was a big target.
So many days I didn’t want to get out of bed because I just didn’t want to deal with that days hurdles. I was a part of so many relationships both personal and business that were not built for this type of trauma.
By this point your ego is in a fight for it’s life. You’re either going to become bold and put together a plan to rebuild or fold and become depressed. Although I did the former many days when things were not going well I felt like doing the later.
It would have been so much easier to become totally depressed and angry and blame others for the wipeout that I didn’t fully see coming. No matter how crazy my creditors got I never lost it with anyone who owed me money. In fact, I called to say I hoped they would make it through. If I could help them get back on their feet it profited me too, so why trip.
I actively have worked to help my biggest debtors to complete projects they are working on. One, because they were friends before they were debtors and two, because eventually somebody’s got to win and I refused to see a person as a loser just because the economy tanked.
People either believe in Scarcity or abundance but you won’t really know which until trouble comes. Those that believe is scarcity will freak out like the sky is falling and nothing good will ever happen again. Those that believe in abundance with look for opportunity.
If I have any advice to anyone who has taken a major life changing loss that affects you and the people you care about, it’s don’t let your ego and negative self talk throw you into depression. A big lose doesn’t make you a loser. You are still the same person you were only wiser and more informed.
Count your blessings daily and think about everything and everyone who is still in your corner. People really are not concerned with your loss because they are dealing with their own shortcomings.
The sooner you step back out into the world and make a positive contribution the sooner you will be back on top. The people regarded as winners have suffered more loses than most people who never try will ever face.
People have faced financial ruin, death of loved ones, loss of relationships and public and private humiliation. And still they come back.
There is no loss that last for life unless you and your ego buy into it. 90% of this life is mental. At the end of my post I always wish people wealth, wellness and wisdom and I believe setting ego aside and focusing on all the good in your life will bring you all three.
Wishing you Wealth, Wellness, and Wisdom
Manager of Wealth – Mark Fuller
When I say I love this Ted Talk I am not overstating. If I ever think of not pursuing the life I want I get myself together by watching this video and focusing on my goals. Save this video you will need it in days to come.
Become what you were meant to become or live with the regret. It’s easier to be what you were put here to be!
Wishing you Wealth, Wellness, and Wisdom
Mark Fuller – Manager of Wealth