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How to Save Your Family Fortune

Posted on September 30, 2011 by admin

(Shared by John Overfield, Bank On Yourself Authorized Advisor)

A recent Baron’s article, Goodbye Family Fortune, discusses the concerns faced by many in passing on their hard-earned money to the next generation.

“First there was the financial crisis of 2008 and the subsequent recession. Now there’s the European debt debacle, which threatens to cascade through global banks and the world economy. The U.S. already is facing the real possibility of a new recession; economists put the odds at about 1 in 3. In other words, preserving a fortune is getting harder than ever.”

See full article here: http://online.barrons.com/article/SB50001424052702304715104576558721220595058.html?mod=djembwr_h#articleTabs_panel_article%3D1

While the article discusses many issues that may arise that could hamper the next generation from receiving the Family Fortune, I have highlighted the one that we can do something about today.

If we are about to head into another recession, prudent planning can assure that your resources will grow, guaranteed regardless of how the market does. Moreover, proper planning in many cases can also ensure that the inheritance can be passed on tax-free.

For more information about your specific situation and how we can help make sure that your heirs will receive the money you intend to leave them, give us a call, or request a free consultation today by clicking the orange “Get Started” button above.  

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Are You Worried About College Costs?

Posted on September 28, 2011 by admin

(Shared by Ryan Fleming, College Funding Specialist)

Isn’t it interesting that so many people in this country freely state what their worries or fears are, but continue to procrastinate on one of the biggest investments of their lives?

http://thenext3000days.com/2011/04/01/top-15-college-hopes-worries-survey-report-2011/

You would think that, with as much concern as they claim to have towards these issues, families would be better prepared. When I read these questions and responses from the masses it upsets me.

Obviously this upsets me because this is my profession and I know I can help people tremendously if they just take the time to meet with us and learn more about the process. Even more gripping is the fact that good, hard-working human beings are absent of joy and filled with stress and lack of direction in this arena. This is an enormously emotional time in most family’s lives as their babies prepare to leave the nest and enter the “real world.” Perhaps this change is so powerful it is only natural to run away from it and prolong the inevitable?

Of course, many do properly plan, or at least seek ways to properly plan. Not everyone falls into the “ostrich approach” as I call it. For those people, I give kudos for your foresight. However, even for those who do feel they have a good solid plan in place I ask, are you absolutely sure you have the proper information? Are you sure you have maximized all the ways to save money even before your student walks onto a college campus? Do you know the best ways to borrow or finance whatever the colleges do not meet with free money? (The list can go on and on.)

Our goal here is not to make all you parents out there feel bad, but to be truthful and offer our help during this stressful and costly process. The last thing we want people to be is one of the negative statistics in the article.

We invite you to attend one of our free workshops or watch our online workshop recap and schedule your free consultation, so that you can be one of the parents who sleeps better knowing for sure you have the correct game plan in place to deal with one of the largest expenses you will face in your lifetime!

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The Great Social Security Ponzi Scheme

Posted on September 26, 2011 by admin

(Contributed by Chris Bailey, Bank On Yourself Authorized Advisor)

If we, as financial advisors sold clients a financial product that would consistently take your money over time, then fail to pay out… It would justly be called a ponzi scheme and we would go to prison. And we would deserve it!

That is exactly what OASDI (Social Security) looks like to someone my age. And what is even worse - the federal government forces you to contribute to it. I truly believe that this guy Perry is correct on this issue.

http://blog.heritage.org/2011/09/14/is-social-security-a-ponzi-scheme/

 

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Why Your 401k May Be In Danger

Posted on September 23, 2011 by admin

(Shared by Joe Overfield, VP – Financial Planning Division, Bank On Yourself Authorized Advisor)

If you are not currently looking for an alternative to your 401k plans, now might be a great time to consider it. The article below discusses how the government is looking at taking over your 401k’s and IRA’s by converting them to annuities that will be administered by the Social Security Administration and eventually mandate that you invest 5% of your income into it. In return, it will promise to pay you a monthly benefit in retirement years.

Does this concept sound familiar? It should! In the 1930’s the government made the same claims and mandated that Americans pay into Social Security. Today, there is no guarantee that social security will even be available for many people who have invested years into it. The cause is due to the lack of management and greed by our government officials who were supposed to be looking out for us. Are we really going to buy into this nonsense AGAIN and allow our government to manage our retirement?

Check out the full article here: http://www.gobankingrates.com/retirement/401k/money-alert-the-government-has-plans-for-your-401-k-and-ira/

Remember there ARE other options! Bank on Yourself is a great way for you to save your hard earned dollars and plan for your retirement without government intervention. Click here to learn more.

 

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How to Avoid The High Cost of Being a College Dropout

Posted on September 21, 2011 by admin

(Contributed by Rose Hillbrand, Eagle Financial Solutions Employee)

This recent article reveals a shocking statistic: The college dropout rate is now 40%!  That’s right – 40% of students who start college never finish. This statistic has a huge impact not only on the students themselves, but on the country as a whole. Not only have they lost the money they put towards their education, but considering that young adults with a college degree earn 40-66% more than those without, they will also potentially lose millions in income over their lifetimes.

http://www.air.org/news/index.cfm?fa=viewContent&content_id=1405

This article underscores the incredible importance of having a solid plan in place to pay for college. Out of this 40%, how many of these people would you guess had a plan to pay for college before they started? This article doesn’t address that, but one can surmise it was probably few, if any.

And most likely few, if any, had consulted with some type of qualified College Planning Advisor to help them through the process. Statistics like this are why we are so passionate about what we do. The services and financial planning we offer to our clients have the potential to save them more money than most people realize. This is not just an issue of paying a few grand (or hundred grand) for college – great as that cost may seem at the time. If we can help our clients/students make it all the way through college, without becoming a part of this dropout statistic, they could potentially earn literally MILLIONS of dollars more over their lifetime.

When you look at it that way, scheduling a free consultation with one of our College Funding Specialists becomes a no-brainer. To find out more on how we can help, or to register to attend a free College Planning Workshop in your area, visit www.eaglecollegeplanning.com today.

 

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A Train Bound for Nowhere?

Posted on September 19, 2011 by admin

(Shared by John Overfield, Bank On Yourself Authorized Advisor)

The recent article in Barrons by Michael Santoli, “Postcards from a Nowhere Market”  gives a sobering look at the S&P’s anemic performance over more than the last decade.  Maybe a more fitting title is ”A Train Bound for Nowhere”….

“The 1200 line has been breached in one direction or the other during 42 weeks since it was first attained near the very end of 1998. Put another way, in the nearly 13 years since then, the index has crossed 1200 in 6% of all weeks. And it sits roughly in the middle of the range the index has inhabited for some 14 years, with the exception of the brief panic collapse in late 2008 and early 2009.”

See full article here: http://online.barrons.com/article/SB50001424052702304605504576554880293968422.html?mod=djembdr_t

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Is B.O.Y. “Too Expensive”?

Posted on September 16, 2011 by admin

(Shared by Joe Overfield, VP – Financial Planning Division, Bank On Yourself Authorized Advisor)

I recently met with someone who ultimately decided not to move forward with a Bank on Yourself plan because he stated it is “too expensive”, and “I don’t want to pay half of my hard-earned dollars to your company.” The reason the client feels this is not a good plan is because he received some bad advice from someone, and now he is looking at the first four to five years of the policy and determining that his cash value is less than what he put in.

If someone was looking at this concept as a 5 year plan, I would agree with him wholeheartedly, and tell him that Bank on Yourself is not for you. However, this person is not on track for retirement and was looking at a BOY plan as a supplemental retirement plan – so why is he so concerned with the next five years?

When determining if Bank on Yourself is the right solution for you, remember to look closely at what your future goals are and at what you are trying to accomplish. The policy is designed to be front loaded so that you receive larger growth and a tax-free income in the later years at retirement.

If strengthening your retirement is what you are looking to do, tell me of another plan that offers you a guarantee and one that will last as long as you do? And don’t forget, the BOY plan includes a death benefit to take care of your family just in case something happens to you.

I understand why people are so fearful that this is a scam and looking for the catch. It’s because as we now approach the 30 year mark from the inception of the “401k and IRA” we are realizing those plans were a scam and they don’t work….

Dividend-paying whole life insurance is the vehicle for a Bank on Yourself plan, it has over a 100 year history and we know it works!

To speak with an Authorized Bank On Yourself Advisor and find out how it could work for you, just click the orange “Get Started” button near the top of this page and request a FREE confidential analysis.

 

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Baby Boomers Turn 65: 16 Jaw-Dropping Statistics About The Coming Retirement Crisis

Posted on September 14, 2011 by admin

(Shared by Dan Eisenhauer, Executive Vice President, Bank On Yourself Authorized Advisor)

Here are a few very scary statistics you will want to pay close attention to. This recent article details some reasons why you will want to seek other, safer solutions for your retirement years, instead of thinking you can rely on Social Security and other government programs.

Here are just a few ”highlights” (for full article click the link below):

#1: Beginning January 1st, 2011, every single day more than 10,000 Baby Boomers will reach the age of 65. That is going to keep happening every single day for the next 19 years.

#2: According to one recent survey, 36 percent of Americans say that they don’t contribute anything at all to retirement savings.

#4: Over 30 percent of U.S. investors currently in their sixties have more than 80 percent of their 401k invested in equities. (So what happens if the stock market crashes again?)

#5: 35% of Americans already over the age of 65 rely almost entirely on Social Security payments alone.

#11: Robert Novy-Marx of the University of Chicago and Joshua D. Rauh of Northwestern’s Kellogg School of Management recently calculated the combined pension liability for all 50 U.S. states. What they found was that the 50 states are collectively facing $5.17 trillion in pension obligations, but they only have $1.94 trillion set aside in state pension funds. That is a difference of 3.2 trillion dollars. So where in the world is all of that extra money going to come from? Most of the states are already completely broke and on the verge of bankruptcy.

#12: According to the Congressional Budget Office, the Social Security system will pay out more in benefits than it receives in payroll taxes in 2010. That was not supposed to happen until at least 2016….

For the complete article, please go to: http://www.infowars.com/baby-boomers-start-to-turn-65-16-statistics-about-the-coming-retirement-crisis-that-will-drop-your-jaw/

If any of this information is concerning to you, please contact Eagle Financial Solutions at 614-866-5837, or click here to schedule a free consultation and determine how a safe money approach to wealth generation can change your life significantly for the better.

 

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Remember To Join Us At CONES This Thursday!

Posted on September 13, 2011 by admin

If you are looking to network with hundreds of area entrepreneurs, sales representatives and professionals join us at the Central Ohio Networking Event & Social. And invite a friend!

It is FREE TO ATTEND and we invite you to stop by our booth, Thursday, September 15th from 5:00 to 8:00 PM in the main exhibition hall at the Aladdin Shrine Center (3850 Stelzer Road), minutes off I-270 near Easton. For details go to www.conesevent.com.

 

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Wisdom and Taxes

Posted on September 12, 2011 by admin

(Shared by Tom Chelf, Bank On Yourself Authorized Advisor)

Conventional wisdom tells us that we shouldn’t pay taxes on our contributions to a retirement plan and, rather, we should just pay taxes on our withdrawals. But have you ever actually taken the time to sit down and calculate what the difference would be between the two schools of thought on taxes? You might be surprised what a difference this crucial choice makes on how successfully your retirement plan works.

Check out this great article where Barry Goldwater guides you through a side-by-side comparison of the two methods of taxation. As it turns out, so-called “conventional wisdom” may not actually be such a wise financial decision….

http://www.asjonline.com/Issues/2010/3/Pages/How-to-Use-Whole.aspx

 

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Interesting Barron’s Article on September’s Market Prospects

Posted on September 9, 2011 by admin

(Shared by John Overfield, Bank On Yourself Authorized Advisor)

The attached article that appeared in Barron’s online 9/6/2011 quotes technical analyst Louise Yamada who talks on the importance of the preservation of capital. Check it out – it’s an interesting read.

The eminent technical analyst Louise Yamada, who now runs her own firm, has been cautious of late and last week wrote this in a client note: “Preservation of capital is our prime concern. We would rather be out of the market wishing we were in than in the market wishing we were out. Portfolio managers with a mandate to stay invested could use hedges to protect portfolios. There are only two losses one can experience: a loss of capital and a loss of opportunity. If we can protect the capital, there will always be another opportunity. The technical indicators currently suggest further risk is possible, notwithstanding even generous rallies.”

See full article here: http://online.barrons.com/article/SB50001424052702303807404576540472500288608.html?mod=djembdr_t

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Join Us At CONES!

Posted on September 6, 2011 by admin

If you are looking to network with hundreds of area entrepreneurs, sales representatives and professionals join us at the Central Ohio Networking Event & Social, better known as CONES.

This is the once-a-year premier event that is a combination trade show and networking event that will feature dozens of exhibitors and draw hundreds of attendees from all around Ohio.

It is FREE TO ATTEND and we invite you to stop by our booth – and bring a friend!  It will be on Thursday, September 15th from 5:00 PM to 8:00 PM in the 24,000 square foot main exhibition hall at the Aladdin Shrine Center (3850 Stelzer Road, Columbus, Ohio 43219)… minutes off I-270 near Easton.

For more details, go to www.conesevent.com.

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Fundamentals Are Still a Concern!

Posted on September 5, 2011 by admin

(Shared by John Overfield, Bank On Yourself Authorized Advisor)

The market and the world we work and live in are driven by fundamentals. Engineers can tell you the fundamentals of why a plane can fly, or buildings stand during high winds, or how bridges can carry the load of many cars. The economy is also driven by fundamentals. I have kept a keen eye on unemployment, home sales, consumer optimism, and the trillions of dollars of debt that are increasing everyday in our country.

I would like to look at one such fundamental today with the release of the pending home sales across the US(1). The most recent Homes Sales Index decreased by 1.3% in July versus June. They were expecting a decrease of 1%, so it didn’t rock the market. However, it does affect consumer confidence when they see home sales in their area sluggish and only responding to drastically reduced prices or foreclosures.

Declines were experienced in the Northeast, Midwest, and South. Only the West showed improvement, and according to WallStreet analysts, they believe the West is increasing sales because of the increase in foreclosures or short sales in California, Arizona and Nevada.

Keeping an eye on such things is important, as it can be an indicator of the direction of the economy and where we are heading. While some indicators are looking more hopeful these days, this report tells me that we are not quite out of the woods just yet.

1. Pending Home Sales by Region, Wall Street Journal, August 30, 2011.

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Making Important Choices Today for Tomorrow’s College Costs

Posted on September 2, 2011 by admin

(Shared by Ryan Fleming, President of Eagle College Planning, College Funding Specialist)

We all have had times in our lives where our actions and/or our decisions have caused outcomes or circumstances that can have lasting consequences, or even last a lifetime. As a less serious example, I’m sure you can remember the first time you tried to sneak out of your parents house to go throw toilet paper and eggs all over your mortal enemies trees and bushes while in high school. Or how about the time you swore that lady was pregnant and asked “when is your due date?” only to be horrified beyond belief when she said, “I’m not pregnant!”?

Well, the list can go on and on and it’s different for everyone but there is one thing in life that no matter what race, color, size, sex or denomination will bring the most pleasure and unbelievable JOY you could ever imagine. This event just happened to me and my family August 27th at 8:49am 2011 when my wife and I welcomed Brooks Martin Fleming into this world! For anyone who has experienced this miracle you know what I’m speaking of. As I write this blog, I have spent the last three nights caring for my wife who had a C-section, eating hospital food and sleeping on the most God-awful bench (that morphs into a bed) you could imagine, and strange as it may sound, I am having the time of my life.

You see although we may hold the hands of our babies for a little while, moms and dads hold on to their hearts for eternity. As I look at my newborn son I can’t help but think of things like who will he marry, what skills and talents did God give him, and what can I do to be the best Dad in the world for him?

Saturday a few hours after my wife had her C-section we started getting bombarded with congratulatory text messages and calls etc… when a knock happened outside our door. It was one of those edible arrangements with all the fruit on it. I love those things. But I had never seen what the fruit was attached too. It was a huge yellow duck. You know the rubber ducky Ernie made famous from Sesame Street. But on the duck’s head was a slot to save money. A Ducky bank if you will.

This naturally set my mind racing to things like how I will accomplish paying for three kids college education and get to a place in my life where I can spend time with my wife and enjoy our senior years. And then I was drawn into thinking of all the clients and families I currently work with, and even the ones who I have not met yet.

I know how much I love my children and I know you love yours just as much. It isn’t your fault that since the day God gave you a son or a beautiful little girl you haven’t been able to pile up a mountain of money for their college degree and a masters – and now it’s 18 years later. It’s not because you don’t love them. After all there are all these things to deal with such as a mortgage, vacations, utility bills, travel league fees etc…

But now I want to encourage you all to be proactive in saving and getting the proper game plan in place for your children’s college years. It is one of the biggest investments you will ever make. It doesn’t matter if you’re a parent of a senior or a newborn. There is never a better time to start! Time has a way of creeping up on all of us, so do yourself a favor and come to one of our free college workshops (and feel free to invite a friend), do whatever it takes, but stop procrastinating so you can get on a path of certainty and peace for the years ahead. There is so much we can do to help you and your beloved children.

And for those of you who have younger kids, it’s never too early to drop a quarter into the head of the Ducky bank.

We can help you choose the right one.

To find out how, visit our College Planning website today.

 

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Riding the Mutual Fund Merry-Go-Round

Posted on August 31, 2011 by admin

(Contributed by Rose Hillbrand, Bank On Yourself User, Eagle Financial Solutions Employee)

This recent article in the New York Times offers a scathing look at the mutual fund industry, pointing out that mutual fund companies are regularly raking in huge profits, regardless of the money their investors are losing.

“Common wisdom” says that mutual funds offer a “safe haven” for investors, but this trust has been sorely misplaced. When you really examine the history of the industry, it is obvious that investors’ actual returns far underperform the stated results of most mutual funds.

Companies and brokers market “four star” and “five star” funds quite aggressively, but these stars are awarded based on past performance – they really don’t provide any sort of guidance for future returns, even though this is what most investors are led to believe.

Chasing the most “stellar” performing funds only leads to more losses. In a 2005 Morningstar study examining 10 years of returns for 17 different categories of stock funds, the actual returns — taking the ill-timed buying and selling into consideration — fell well “short of the returns that were advertised to the public.” In fact, some of the more volatile funds came in as low as 13% below reported results!

But even if we set aside investor behavior for a moment, many of the funds themselves don’t even invest that well – as the Times article states, “In general, these companies spend lavishly on marketing campaigns, gather copious amounts of assets — and invest poorly.”

So why do people put up with this? As I asked in my last post last week, why do investors keep gambling in the market? (Yes – I said gambling instead of “investing,” as this is essentially what it comes to.)

According to this article, most investors simply trust what their brokers and conventional financial advisors tell them. And “Most understand too little about financial markets to make informed decisions, intervene too frequently in counterproductive ways and gather too little information about portfolio holdings to evaluate results. Investors like to believe they are doing well, even when they are not.”

Sounds about right to me, based on what I hear out there!

And as the article concludes, in the meantime, “Wall Street crushes Main Street.”

Click here for the full article: http://www.nytimes.com/2011/08/14/opinion/sunday/the-mutual-fund-merry-go-round.html

If you’re tired of having your nest egg “crushed” in the market, why not find a safer way to save and grow your money, so you’ll know it’s there when you need it? Click here for a safer solution.

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How Customizable is Your Retirement Plan?

Posted on August 29, 2011 by admin

(Shared by Tom Chelf, Bank On Yourself Authorized Advisor)

No one person’s financial plan is the same as anyone else’s. Everyone has different goals and aspirations as to the lifestyle they want to live and how much to invest for retirement. Why then are the most common financial vehicles not customized to
individual needs?

Good question!

That’s why, at Eagle Financial Solutions, we practice the Bank On Yourself concept. With Bank On Yourself, we use a specially-designed whole life insurance policy as a vehicle for achieving a sound financial future. With these policies, the typical death benefit is accompanied by an increasing cash value with great liquidity, which offers many living benefits as well. Every single person who has started a (correctly designed) Bank On Yourself policy has had continued growth throughout the life of the policy. This growth is both safe and predictable, and requires no luck or guesswork, unlike the stock market!

But the best part of the Bank On Yourself concept is its versatility. Each policy is customized to the policy holder, and designed to fulfill your (the policy holder’s) needs.

Your qualified Bank On Yourself Authorized advisor will work with you to help you determine exactly how much you need to accumulate to be able to live your desired lifestyle as you reach retirement age, and design a plan for you accordingly. If you would like extra death-benefit, long-term care, or other riders, your advisor will also discuss these options with you.

These items will be determined through a free, no-obligation consultation with a Bank On Yourself Authorized Advisor. Only after this individual consultation will your Advisor create an illustration for you and start to discuss options that fit your desired coverage, as well as your contribution comfort level. A Bank On Yourself policy allows you to live the way you want during your retirement years, while also leaving a legacy for your children and/or grandchildren.

Why settle for a one-size-fits-all approach to your finances, when your situation is most likely unique from anyone else’s? Use the Bank On Yourself concept to customize your
financial future and start planning for a rock-solid retirement that you know will be there when you need it the most (unlike the 401k)!

To request your Free Analysis, just click the orange “Get Started” button at the top right of this page.

 

Posted in B.O.Y., Financial Planning, Retirement | Tagged , , , , , , | 1 Comment

Top 10 Signs You Need a New Retirement Plan

Posted on August 26, 2011 by admin

(Shared by Dan Eisenhauer, Executive Vice President, Bank On Yourself Authorized Advisor)

10. Your brother-in-law broker has a sudden case of amnesia

9. At the rate you’re going, you’ll be able to retire at age 167

8. The Powerball odds don’t look so bad anymore.

7. Standard & Poors has downgraded your plan from AAA+ to S.O.S.

6. Your 401K looks more like a 201K

5. Your Fidelity Contra Fund is sounding more like a group of organized terrorists

4. Investing in lama futures is sounding interesting

3. Your 403B is rated an “F”

2. Your daughter makes more money babysitting than your current plan does

1. Talking to a safe money Bank On Yourself Authorized Advisor is sounding really good right now

For a free analysis to find out how you can have a retirement plan you can count on, just click the orange “Get Started” button above.

 

Posted in B.O.Y., Financial Planning, Retirement | Tagged , , , , | 7 Comments

No More Subsidized Loans for Grad Students

Posted on August 24, 2011 by admin

(Shared by Ryan Fleming, College Funding Specialist)

Here is another reason why understanding the college planning process is so important.  Now more than ever, students and families NEED to be educated and know how to tackle this monumental task of paying for college costs in the most efficient manner.  As you can see, our Government has decided to do away with the subsidized federal loan program for grad students as a way to gather more money to address their ridiculous budget shortfalls.  Meanwhile it leaves students and/or their families left to shoulder more interest and more debt!  (The good news is undergraduate students still will be able to partake in the governments generosity as they plan to continue to subsidize until repayments begin.)

 

See article here: http://www.savvysugar.com/Federally-Subsidized-Loans-Graduate-Students-Taken-Away-18576179


The moral of the story here is, things are very, very volatile in our country and nobody knows what changes lurk.  Getting the proper help, information and guidance can make a huge difference in your favor.  A well-thought-out plan in anything is important, but many millions of families take a “band aid approach” to this college planning topic.  Don’t fall victim to just winging it, you and your child’s financial future might just be riding on it.

To attend a FREE informational workshop in your area and find out helpful tips and tricks for saving money on college, getting more financial aid, choosing the best college for your child, and putting together a strategic plan to pay for college in the most efficient manner, visit www.eaglecollegeplanning.com and click on "Workshop Schedule" to register.

Posted in College Planning, Financial News | Tagged , , , , , , | 2 Comments

Is Your Retirement Really a Goal or Just a Dream?

Posted on August 22, 2011 by admin

(Contributed by Chris Bailey, Bank On Yourself Authorized Advisor)

For Americans, retirement has always been a goal more than a  dream. We watch the commercials and we watch our money come out of our checks and therefore NOT into our wallets. But it will be there someday… Maybe?

Some companies want you to follow their “line” all the  way to retirement. For some reason though, that line also goes right  through the Wall Street area…. Notice they never tell you where the ”line” actually ends up!?

With market volatility playing games with our 401k’s, and this article pointing out the “problems” with Social Security (are you dead already?) that are not likely to be fixed soon if ever, it is a precarious situation out there for upcoming retirees. Congress seems to have trouble doing anything correct lately, besides(hopefully) finding the correct restroom to attend between breaks they are in a complete gridlock on serious issues.

Taking control of your retirement can lift a gigantic weight off of your chest, and it IS possible. But you need to be proactive and take the  first steps. Realize that the traditional retirement system has the potential of becoming  tragic, and it’s not your fault….(yet!)

Put a safe plan in place, so that finally when it’s time to retire, you can enjoy that cup of Starbucks your Social Security check bought you. And rely on your own plan to get you back and forth from the coffee shop. And you will be shopping there… Not working there.

To find out how you can set up a retirement plan you can count on – instead of just dreaming and hoping – just click the orange “Get Started” button above, and request a free analysis with a qualified advisor who can show you how you can achieve the peace of mind you need during your retirement years.

Posted in Financial News, Financial Planning, Retirement | Tagged , , | 1 Comment

Stock Market Insanity

Posted on August 19, 2011 by admin

(Contributed by Rose Hillbrand, Bank On Yourself User, Eagle Financial Solutions Employee)

We’ve all heard the saying, “The definition of insanity is doing the same thing over and over and expecting different results.”

This quote came to my mind recently, as I was involved in a discussion on Facebook during last week’s stock market roller coaster ride. A friend had posted that her IRA couldn’t go any lower, so “now is the time to buy!” Understandably, I was not in agreement with this sentiment, which sparked a whole discussion with one of her other friends who had trained at some point to be a financial advisor of some kind.

His argument was that “the market always comes back”, and that “the average investor has received a 10% return over every 20 year period in history.”  Of course I took exception to this, and shared some Dalbar stats of ACTUAL investor returns  (not just stock market “returns” – which of course are just numbers on paper – the actual RETURN only happens when the investor sells, which almost inevitably is at the wrong time – it’s just human nature) – nowhere even remotely in the vicinity of 10%, by the way. 

His response was polite, but doubting of “my numbers.”

This is frustrating to me. One would think that, in the face of such recent volatility, people would be looking for a safer place for their money. But instead, I have heard a number of people express the same sentiments as my Facebook friends – buy more, now!

If history has shown us anything, it is that while yes, the stock market does usually come back up, it ALSO goes back down – on a rather unpredictable basis, I might add. The amount of time it takes to come back up can also vary – sometimes it takes several decades! If the market tanks when you are 60 years old (or even 50), are you prepared to wait several decades for retirement??

How many times do people have to lose their shirts in the market before they stop counting on it to “come back up”, and provide for them in their retirement years? How many times do you need to whack your head on a brick wall before you realize it will always hurt? How many times will investors do the same thing over and over, and expect different results?

The bright side is, while seeing others go through this so many times truly frustrates me, at least I don’t have to worry about it personally. My “retirement plan” only goes one direction: UP. And that’s the only direction it ever will go (until I start taking money out of it).  I know it will be there when I need it, and I know how much I can expect to be there at any given time.

If you want to find out how to set up a plan like mine, click the button above to request a free confidential analysis with a qualified advisor, who can show you what your options are, and what such a plan would look like for your specific situation.

Stop the insanity! Request your analysis today, and get off the roller coaster for good.

Posted in B.O.Y., Financial Planning, Retirement, True Stories | Tagged , , , , | 2 Comments

Video – What About the 401k?

Posted on August 17, 2011 by admin

(Contributed by Tom Chelf, Bank On Yourself Authorized Advisor)

The 401k, due to decreased cost to the employer, quickly replaced pension plans after first being introduced in the 1980’s. But as we’ve seen with recent economic events, the value of an employee’s 401k can fluctuate greatly from one statement to another.

So the real question is: When you’re ready to retire, do you know with certainty how much the value in your account will be?

If it’s less than you were hoping, will you decide to retire on less income or will you just continue working for longer than you had originally planned?

Either way, the 401k just isn’t a good option for predictable, safe, and guaranteed retirement planning. Take a look at this video where CBS MoneyWatch.com editor-in-chief Eric Schurenberg argues that, as the default retirement plan of the United States, the 401(k) simply falls short:

(If you have any trouble viewing the video, you may click here to watch on YouTube: http://www.youtube.com/watch?v=FNdBW9qXddk&NR=1 )

What do you think? We welcome your questions or comments!

If you would like to schedule an appointment with a qualified advisor to discuss safer options for your retirement, please click the orange “Get Started” button near the top of this page, and someone will contact you asap.

Posted in Financial News, Financial Planning, Retirement | Tagged , , , , | 3 Comments

Social Security – The Retirement Fallacy?

Posted on August 15, 2011 by admin

(Contributed by Ed Beemiller, VP of Eagle Business Solutions)

Social Security was created by the US Government in 1935 to prevent the elderly citizens from living in poverty.  It was designed to offer a baseline insurance policy for retirees, and it would be structured as a “pay as you go” plan with the active work force providing the money to fund the retirees.

Over the years, the demographics of the US have changed dramatically, along with an increase in life expectancy and a decrease in the ratio of active workers to retirees.  Since the Social Security system was structured to have today’s workers fund the benefit payments of today’s retirees, the ratio of current workers to retirees is very important to ensuring the continued solvency of the Social Security Fund.  In 1950, the ratio of current workers  to retirees was approximately 16.5 to 1.00.  Today,  this ratio has decreased significantly to 2.9 to 1.00.  In the next 25 years, experts believe this ratio will continue to decrease towards a ratio of 2.0 to 1.00.(1)

In an attempt to avert  future problems, in 1983, a Social Security Trust Fund was created, with the intention to use excess payroll tax revenue to underwrite the shortfall in future Social Security needs. These funds were to be invested in a way which would enable the fund to grow and protect the system for the next 75 years.  Instead, a system was created where these additional funds were put into non-negotiable treasury bonds, effectively an IOU from the government. The additional  collected revenues were spent on general government expenses.  Under the current  Social Security system, by 2017 there will not be enough incoming taxes to pay benefits promised and the IOU’s in the trust fund will have to be cashed in.  The US will need to raise that money somehow to pay back its obligations. By 2037 all the trust fund IOU’S will be depleted.

From its modest beginnings, Social Security has grown to become an essential facet of modern life. One in seven Americans receives a Social Security benefit, and more than 90 percent of all workers are in jobs covered by Social Security. From 1940, when slightly more than 222,000 people received monthly Social Security benefits, until today, when over 50 million people receive such benefits, Social Security has grown steadily.

To protect against the uncertainties associated with the future of our Social Security Program, most investment experts state that an increasing percentage of overall retirement dollars will need to come from personal savings and wealth accumulation.  There are many risks associated with saving for retirement that every individual investor faces in today’s volatile market and difficult economic environment. 

What is the answer?  Should you invest in equities, mutual funds, real estate or some other investment vehicle?  There was a recent  study  published by DALBAR in regards to the  Quantitative Analysis of published Market Returns of Stocks and Bonds relative to the actual returns realized by the average investor.  The results will be surprising to most individuals who believe that investing in equities and mutual funds is the answer.  Over a period from 1-1-1991 to 12-31-10 (Almost 20 Years) the Stock Index returned  9.14%, but the average investor only realized a return of 3.83% during this same time period.  The Bond Index returned 6.89%, but the average investor only realized a return of 1.01%(2).  These variances in actual, realized returns were the result of bad timing and the phenomenon of buying and selling which leads to the individual returns significantly trailing the actual market returns realized. 

However, there are other options out there. You don’t have to rely on Social Security, or risk it all in the market in order to have a secure retirement. If you are looking for a safe, tax-advantaged, guaranteed vehicle you can actually count on for your retirement years, click here to request a free financial analysis with a qualified Eagle Financial Solutions advisor, who can help you build a customized plan to secure your financial future.

1. Social Security Reform Center; http://www.socialsecurityreform.org
2. 2011 DALBAR Quantitative Analysis of Investor Behavior, Dalbar, Inc., March 2011 http://www.dalbar.com

Posted in Financial Planning, Retirement | Tagged , , , , | 1 Comment

Got a Can Opener?

Posted on August 11, 2011 by admin

(Shared by Dan Eisenhauer, Bank On Yourself Authorized Advisor)

A little levity in a serious business…

A physicist, an architect, and an economist were marooned on a desert island with a can of beans. They contemplated on how to open the can. The physicist observed that the can could be placed on their fire and would create so much pressure that the can would explode and the beans could be retrieved. The architect thought that this would be a rather messy solution to the problem and suggested building a small enclosure around the fire. Then, when the can exploded, the beans would splatter on the walls of the enclosure, from which they could then be scraped. The economist had a better solution. First, he said, “Assume that we have a can opener …”

You know what can happen when you make assumptions….  Personally I’d rather have guarantees.  Consider safe money.  You never know when there will be a can opener around.

Is your retirement plan safe, or are you relying on assumptions? If you’re tired of guessing, hoping, and praying that your money will be there when you need it, click here to request a free consultation, and find out how to establish a retirement plan you can count on.

Posted in Financial Planning | Tagged , , , , | 1 Comment

Common Financial Aid Myths That May Cost You Money

Posted on August 9, 2011 by admin

(Shared by Ryan Fleming, College Funding Specialist)

Many parents and students are overwhelmed by all the moving parts associated with transitioning from high school to COLLEGE! 

With all the information floating around out there these days, it can be easy to get confused about what is fact and what is fiction. The link below addresses some myths surrounding an important but often misunderstood topic: “who can qualify for Merit-based aid and how does it work?” 

Many parents feel they make too much money or have too many assets to qualify for any financial aid. However, merit-based opportunities (for free money) come in a wide array of possibilities and can be attained by students with many different backgrounds, achievements and even interests. 

If you take the time to educate yourself on these important topics, you may just learn there is hope yet that you will be able to afford college for your children, and transition into your senior years with confidence.

Check out the article below, and we welcome your feedback – please feel free to share your comments if you find this helpful!

http://www.meritaid.com/page/about/meritAidMyths.jsp

 

Posted in College Planning | Tagged , , , , | 1 Comment

Financial Declaration of Independence

Posted on July 5, 2011 by admin

Here is a great feature article, by Pamela Yellen & Dean Rotbart. This timely article discusses the importance of being responsible for your own finances, instead of relying on the government or an employer to take care of you. Bank On Yourself is, of course, a great way to take control of your own financial picture – both today and for the future ahead, whatever it may bring.

Check this one out, and if you would like more information on making your own financial declaration of independence, with a BOY policy, please contact us for a free consultation.

Some Common Sense Thoughts on the Need for a Declaration of Financial Independence
July 1st, 2011 by Pamela Yellen and Dean Rotbart

Executive Summary: Given the poor track record of the government and private sector when it comes to safeguarding the financial security of Americans, the authors propose a Declaration of Financial Independence in which individual citizens pledge to take responsibility for their own lifelong financial well being.

To continue reading, click here….

Posted in B.O.Y., Financial News, Financial Planning | Tagged , | 1 Comment

Welcome to our new blog!

Posted on June 30, 2011 by admin

Thanks for visiting our new and improved website and blog!  Please bear with us as we get everything running smoothly, but the website should be fully functional now. If you have problems accessing anything, or you notice something doesn't work as it should, please contact us via our Contact page (or you can also post a comment here on the blog), so that we can get it fixed right away.

Be sure to check our blog often, as we will post interesting and helpful financial tips, articles, and resources, as well as financial news updates that could impact you.

We look forward to interacting with our visitors on a regular basis, and we hope you will take the time to post a comment or question, whenever one of our posts inspires you!

Thanks for visiting, and come back soon!

Posted in Uncategorized | Tagged , , | Leave a comment

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