This recent article from the Wall Street Journal emphasises just how much control we give up when we participate in a government-sponsored retirement plan, such as a 401k.

In some cases in our financial planning practice, after a detailed assessment of a client’s finances and goals, we find it is a wise move for a client to use money in an existing retirement plan to fund a Bank On Yourself policy – or other safe-money instrument. (This isn’t always the case, but sometimes it is.) And sometimes we will meet a client who is reluctant to make this move, because they don’t want to pay taxes on the funds when they take them out of their current retirement vehicle.

But this article really drives home the point that, as long as the money is in these qualified plans, it’s not really yours! The rules can change at any time. And for all of you who have been counting on not having to pay taxes on this money until you take it out, you may be in for a rude awakening one of these days….

Several different proposals are on the table for consideration, and none of them look very beneficial for YOU. From capping allowable contributions, to elimination or reduction of taxable deductions, there are a number of ways the government is looking to raise money which will impact your 401ks, IRAs, and other qualified plan options.

Read the full article here to find out more about how these new proposals could affect you:

http://online.wsj.com/article/SB10001424052702304331204577354024207255032.html?mod=WSJ_Taxes_Taxes_2

And if you want to get your money out of these plans, and into one where the control is in YOUR hands, just click the orange button to the right to request a free financial analysis with a safe money advisor and find out about your options.

A quick snippet on stock market trends today….

For years many analysts have recommended sell in May and come back in the fall when traders return from summer vacations.

This year it seems that counsel may be wise for a different reason. The major averages have broken down and high volume has been experienced on down days. The amount of selling or volume is more important than the direction. A light or weak volume day either up or down does not give much direction as to how the market is performing. It is the heavy volume days that give insight as to where the market is headed.

A recent article in Baron’s gives a good analysis of the current market break down and heavy selling that is taking place. http://online.barrons.com/article/SB50001424053111903835404577352092457373440.html?mod=djembdr_t

P.S. When you’re tired of this roller coaster ride and want to get off, we’ve got safe options waiting for you that won’t make you lose your lunch (or your shirt)! Just click the orange “Get Started” button to the right, to request a free confidential analysis with a qualified safe money advisor.

That SA commercial with the people dancing around after receiving their tax refunds always makes me smile…then shake my head. It’s funny, and at the same time sad to me, to see people acting like a tax refund check is some amazing gift the government is granting them.

You do realize it’s YOUR money, right?? The government just happens to be “kind” enough to give a little bit of it back to you, after you’ve given them a nice, year-long interest-free loan! (And if you happened to make mistakes filling out those crazy complicated tax forms, they probably kept more of it than they should have.)

I’ve seen a couple of discussions of this on Facebook lately, sometimes led by wiser people who DO realize this fact. And there are always those who come back and say, “Yes, but… it’s money we weren’t counting on, and wouldn’t have saved anyway, that now we can use to buy something we’ve been needing/wanting!”

I have 2 responses to that:

1. Start a disciplined savings plan! (A Bank On Yourself policy is a great way to do that.)

2. Don’t spend it, as then it’s gone anyway – instead use your tax refund to start your Bank On Yourself plan.    Then do a better job of tax planning next year. Uncle Sam might not benefit, but YOU will! (And really – doesn’t he get enough of your money already?)

The funny thing is, I can actually relate to these people (the dancing ones), as I used to be the same way. When I had my first real job after college, and started earning decent money, I was always excited about that tax refund too. Not that I ever went on a spending spree – mind you. Usually I would use it to pay off debt or something like that. Which I’m sure is something many people do as well – and this is just another example of the disconnect our society has regarding finances. While the government was using that interest-free loan you gave them all year, YOU were paying interest on your own debt!

What if, instead of over-paying on your taxes, you kept your spending in check, and used your income wisely to avoid having debt in the first place? And what if, instead of using any surplus to buy more stuff you “had to have”, you put it into a safe vehicle, like a Bank On Yourself policy, and let it grow (TAX-FREE) for the time when you really HAD to have it?

Think how much better off our country would be if this was the default thought pattern instead…. Wow…. Hard to imagine, isn’t it?

Don’t get me wrong – I still overpay at times too – owning a small business that fluctuates a lot, it’s hard sometimes to estimate tax payments, and I don’t want to get slammed with a huge tax bill at the end of the year, but I do try to keep it to a minimum, and usually it works out to be pretty close.

I do, however, have my own dance…. The one that I do when I get my Bank On Yourself policy statements every year. 

I suggest you take a closer look at Bank On Yourself, if you haven’t already, and maybe you’ll come up with your own dance – one you know you’ll get to do every year, since it doesn’t rely on hope, guesswork, correct completion of complicated forms, or loans to Uncle Sam.

To request a free consultation with a qualified Bank On Yourself advisor, just click the orange “Get Started” button to the right.

When you plan for retirement, do you count on Social Security?

This topic is one that many have debated for years. It appears that Social Security is in some trouble as these trust funds will be exhausted in 2036 and at that point there will only be enough income to pay for 77% of scheduled benefits.

Many feel that 401ks and Social Security will take care of our retirement needs once we decide to stop working. This is a reality that may not exist and we need to be aware that retirement (as we’ve come to think of it) may just be a dream.

But are there other avenues to invest your money that guarantee your investment and growth? Many baby boomers have had to change their retirement plans based on the way that the market has performed over the last decade. Younger generations need to be prepared to endure not only the instability of the market, but also, the fact that Social Security is not a guarantee.

Solid financial planning is a must now more than ever. It is so important to have a solid plan if retirement goals are going to be met. Furthermore, it is just as critical that you have a complete understanding of just how your money is (or isn’t) working for you.

To request a complete financial analysis with a qualified advisor who can identify strengths and weaknesses in your financial plan, and suggest some reliable options, just click the orange “Get Started” button to the right, and someone will be in touch with you shortly.

How should we fix the deficit problem that continues to build?   Ask “The Oracle of Omaha.” A reporter from CNBC asked Warren Buffet that question and his answer is simple, straight-forward and needs consideration.

Warren Buffett, in a recent interview with CNBC, offers one of the best quotes about the debt ceiling, and he’s only partly joking:

“I could end the deficit in 5 minutes,” he told CNBC. “You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.”

Sounds good, but sadly it’s unlikely to happen, since the people passing the law would be the people losing their jobs….

See full interview here: http://www.cnbc.com/id/43670783/Warren_Buffett_s_5_Minute_Plan_to_Fix_the_Deficit

Personal finance is a complete plan for earning, spending and investing your cash. Unmanaged family expenditures can be larger than expected, leaving you short of funds until your subsequent paycheck. In order to meet long term goals and guard yourself against fiscal emergencies, you must save and invest cash on a regular basis. It is a sort of art, that everybody needs to learn at one point or another. Although personal finance is something that really needs to be taught in schools, in reality this is unfortunately not the case. Following are a few interesting ways to help your kids learn about personal finance while they’re young, before they have to manage their own household budget.

Teach them the importance of earning – Making or earning money is never easy, but kids mostly fail to understand this. You could provide your children with a weekly or monthly allowance, as this will help them in making sensible choices and be trained in opportunity costs. They need to comprehend that their pocket money isn’t simply falling from a tree. Establish an incentive scheme where a part of their pocket money needs to be earned by different tasks like washing the dishes, watering the plants or receiving good ranks etc. You may also add bonus prizes for harder jobs, or tasks extraordinarily well executed. Avoid being too generous with the bonus you give them. This will help them to learn the value of time as well as cash. It’s a good indication if your child is turning down a low-priced proposal and asks for more. This means that they are finding out the exact value for their services. Sometimes, it’s okay to meet their demands but make sure that they aren’t asking for too much.

Let them understand the whole idea of saving and investing – When children need something, they need it immediately. They beg, shed tears and do every possible thing under the sun for you to surrender. It’s important for them to understand that they can obtain what they desire if they have a proper plan for savings. For instance, if they want a video game, ask them to put away a little from their allowances every month. Although a piggy bank will help them in their savings, opening a bank account in their name wouldn’t be a bad idea either. Help them in keeping a track of the amount they have, the amount they are spending and how long it will take for them to reach their goal. Provide them with the option of withdrawing cash from their account, but ensure that they don’t do it very frequently.

Give them some utility lessons – Challenge your kids to reduce gas, water and electricity bills. Make it an interactive session. Ask them to switch off the lights and fans when not required, or take shorter showers. Once they do this and the bills drop by a significant amount, they will come to understand that you need to actually pay for the utilities. This will not only help inculcate good financial habits in your children, and also prepare them for a debt-free life.

Lastly, avoid giving children a long lecture on financial calculation, banking, the national reserve etc. It won’t really help them in any way (at least until they are quite a bit older). When you discuss personal finance with your kids, just try to keep it easy and simple.

Stewart Bradley is a contributory writer associated with the Debt Consolidation Care Community and has written several articles for various financial websites. He holds his expertise in the Debt industry and has made significant contribution through his various articles.

If you always hoped to have enough money to retire the way you want to, you might want to take a few minutes and read the following article. Most people in our nation think they can live off of 4% of their savings when the great day of retirement is finally upon them.

Well guess again!

Over 90% of the baby boomers have lost 30-40% of their retirement just within the last 3 years because of the drop in the markets. Even for those who aren’t retiring for another 10-25 years, you might want to learn from the mistakes of our baby boomer generation, because you too will need to make certain that you have done your homework so you don’t fall into the same predicament.

Living off of 4% is a great concept for someone who lives in the 1990’s or earlier, but for you and I, well… we will need much more. Read further for details here: http://www.smartmoney.com/retirement/planning/is-the-4-percent-rule-viable-1326840051207/

And if you think you’d like to retire on MORE than 4%, consider starting a Bank On Yourself plan (or several) as early as you can, and funding it to the maximum. B.O.Y. retirees are often able to take out 5% or more from their plans for 20-30 years, and STILL leave money to their heirs. And they know the money will be there, and how much they will be able to take out – without worrying about market fluctuations. To find out more, and see if Bank On Yourself is right for you, visit http://eaglefinancial.biz/b-o-y and click the orange “Get Started” button to request a free analysis with a qualified Bank On Yourself advisor.

What is the truth about the Federal Reserve?

Recently I shared this article about the Fed on my Facebook wall, which instantly generated a storm of controversy. I am of the belief that storms of controversy are often a good thing – they get people thinking outside of their boxes – and let’s face it, no matter how enlightened we think we are, we all have them – and encourage discourse between opposite viewpoints (although unfortunately in the online world, things can sometimes get more heated than is necessary).

One opposing poster stated that the article was misleading and based only on opinion, and that the Fed is truly operating in the best interests of America. He cited a link to an interview to prove this – which, interestingly enough, was an interview with a former member of the Federal Reserve Board – go figure…. In the interest of fairness, here is the link to that interview: http://www.npr.org/blogs/talk/2008/03/_today_well_talk_to.html
(Hmmm….do you think a former member of the board might put the Federal Reserve in the best light possible?)

Of course another Facebook friend responded and vehemently disagreed, saying basically that the Fed is out to get us all (there may or may not have been some name-calling involved).

So which side is right??

Some will say the Fed is an evil conglomeration involved in a secret conspiracy to destroy America, while on the other end are those who believe the Fed is a completely benign entity designed to safeguard the American financial system. As with most things, the truth probably lies somewhere in the middle.

On the spectrum, I fall a little to the left of center (closer to the first opinion), but this isn’t based on this article alone – it’s based on several years of reading and educating myself on the financial system, and learning things that aren’t shared openly in the mainstream media.

And that is what I hope the articles on this blog will do – inspire you to seek out information and educate yourself, so you can make the best financial decisions for you and your family – not to take everything here as gospel, but to get involved and take an active role in your own financial education.

And if you need some guidance along the way, we will be happy to help and offer some options you may not have thought of, which might be a little bit off the beaten path, but are nonetheless valid and proven strategies which can help (and have helped) many people take back control of their own financial situations. To speak with a qualified safe money advisor who can share some of these unique options with you, just click the “Get Started” button to the right to request a comprehensive and confidential financial analysis.

Oh yeah, and to get involved in the discussion yourself, be sure to click the Facebook “Like” button under “Join the Community” to the right to become a fan!

A lot of people wonder about the facts and truth surrounding the Federal Reserve Bank. Most are not aware of how the Fed operates, how it was created, or what its consequences are that are affecting our personal pocketbooks and national economic health.

Here is an excellent clear-cut article explaining all the details you never knew, and quite honestly you may wish you never knew! The information in this article is the scary truth that will forever change how you see the banking system and the international banking systems around the world.

The good thing is… you will have a clearer picture on how and why you need to properly invest and secure your money. You will also think twice (and do a little research) before voting for government officials.

Read article here: http://www.wealthwire.com/news/economy/2666?r=1

What can we expect from Social Security in retirement? This is a question we are asked by clients on a continual basis. We don’t know the answer but can draw some conclusions from the information and data available.

A recent special report from the Motley Fool, “The Shocking Can’t–Miss Truth About Your Retirement”, has some interesting information. Specifically, “According to the most recent Board of Trustees report, Medicare and Social Security’s surplus funds will run out in 2024 and 2036, respectively. After that, retirees will still receive their monthly checks and Medicare coverage, but at a lower rate. The same trustees predict that through 2085, Social Security will be able to pay out 75% of the benefits estimated today, and Medicare will function at about 90% when its surplus is gone”.

Wow, a 25% cut in benefits…. According to the report the average retiree currently receives just $1,177 in Social Security benefits per month. The report concludes that Social Security will not be enough.

“The only person you can trust to secure a wealthy retirement is YOURSELF.”

That’s our philosophy too – and why we believe so strongly in the Bank On Yourself concept!

I heard a comment the other day that really stuck with me: Most people will put more time and energy into planning a vacation than they will their retirement.

I guess this is not really surprising as we love immediate gratification; however, it is really disturbing.

I recently came across an article that discussed how Generation X will not be ready for retirement. This really troubles me as I am part of this generation. Our generation’s parents have had to push back retirement on many occasions because of the market volatility. Some of our parents have retired but still work part time jobs to pay their bills. You would think that the current state of our economy would have gotten our attention….

Generation X (and really every generation) needs to put some serious effort into their financial planning. Unfortunately, it appears that our generation is not putting in the needed energy when it comes to this issue. Logically, without the needed effort, retirement will be just a pipe dream. We all procrastinate, yet, I have not come across any Gen Xer that wants to work for the rest of their life. We need to get busy. We have all seen how retirement for most of our parents did not work out as planned.

If that is the case, why are so many Gen Xers waiting to implement a financial plan?

The article discusses that most of the Gen Xers interviewed said they were extremely confident that have enough money to live in their retirement. This is very perplexing as many of them have stopped contributing to their retirement plans. (See full article here: http://www.riskandinsurance.com/story.jsp?storyId=533344833)

It is clear that many people need to be educated on how much money they really need for retirement. The article also discusses that households headed by young people are less willing to take risk with their investments. This is not surprising as I understand the hesitation of avoiding market volatility.

Clearly, we as a generation need to make a better effort in this arena. This generation wants to find a way of investing that is trustworthy. It is safe to say that we need to be educated and to have a sense of urgency. But even if those two criteria are met, there is still the lack of certainty.

Now, I ask you to honestly answer the following question:

If there was a way to guarantee your investments without putting your assets at risk, would you have more of an urgency to create a plan for your retirement? If not, what is holding you back? Every day you procrastinate pushes back your retirement.

If you’re ready to find a safer way to save and grow your wealth for retirement, without the risks of the market, click the orange “Get Started” button to the right to request a free financial analysis with a qualified safe money advisor!

It has been over eight years now since we first introduced the Bank On Yourself concept to our clients and I thought it was important to take a look at the progress. It has been the best financial strategy we have ever implemented for our clients. Last year alone we processed over 80 policy loans to pay off credit cards, pay off vehicles, make a home improvement, take a vacation, pay real estate taxes, and pay for college tuition to just name a few.

I recently met with one of my clients whom when I first met them several years ago had credit card balances of over $70,000 at an interest rate of over 20%. Like most people it was very easy to get addicted to the credit and before you know it, wham! No one plans to rack up debt but I have seen many people with good incomes fall into this trap. They had not conquered Parkinson’s Law…more on this a little later.

I too have learned a hard lesson about credit card debt and the dangers of it. We have to create new habits and what we did with this client is they were paying over $3000 a month to pay down their credit cards. They were tired of being in this mess and they were open to change. We helped them start a Bank On Yourself policy for $1500 a month and the other $1500 a month was their minimum payments on their cards that they kept paying.

As cash built up in the policy, they have been able to borrow from it systematically and pay off large chunks of the credit card debt. The B.O.Y. policy has allowed them to pay off over $50,000 of the credit card debt in 4 years, but it gets better….

Once they are done with all the credit cards and pay back the loans to their B.O.Y. policy with the $1500 a month that was being paid to the banks, then we can start a 2nd B.O.Y. policy for the family for another $1500 a month.

At age 65 their two policies will have a total cash value of over $883,000, and a death benefit of over $2,283,000 that may pass income tax free to their heirs or charity of their choice! Should they have a long term care illness, they will have over $300,000 that they can use for this purpose.

This is the amount of money that would have gone to the banks had they not had the courage to change their paradigm. Do you think they are happy with these results? Do you think they feel good about their future?

Nelson Nash, friend and author of Becoming Your Own Banker told me a long time ago that if you and your clients cannot whip Parkinson’s Law, then you will not win the financial game! What this means is working into retirement years, cutting back on your lifestyle, sending your kids to a lesser college or no college at all. Read Nelson’s book for more clarification as it is only a few pages. Basically Parkinson’s Law means as your income rises your expenses rise right along with it.

For those of you who are saying to yourself, “well I don’t have credit card debt so that does not apply to me,” you might be feeling pretty good but you probably have the same problem. I know people that don’t have a lot of credit card debt but are still spending most or all of their money on their lifestyle choices: cars, homes, food and drink, entertainment, vacations, etc. Parkinson’s Law applies to you too!

I see many people that have good resources or income but are spending more than they are saving. The effect is that you will have to work longer and you will not be able to do the things financially in the future that you want to do.

I hear all the time from people things like “I don’t know where all the money goes.” It is no wonder because we are becoming a cash-less society and families are not accounting for their money. We help our clients with a cash flow analysis to determine what the family can save above their fixed expenses. At that point the families can start paying themselves first so they can whip Parkinson’s Law for good!

To schedule your own analysis and see how a Bank On Yourself policy can help you achieve your financial goals and get out of the debt trap for good, just click the orange “Get Started” button to the right, and someone will be in touch with you shortly.

I joined the Eagle Financial Solutions team two months ago, and have already seen how our safe money approach has been able to help so many of our clients.

I have also started to analyze the “traditional” way of investing recommended to my wife and I many years ago….

Once we had kids, our financial advisor opened 529 plans for both my son and my daughter. Recently, I took a closer look to find out how these plans were performing.

I spoke to a representative of the firm that provided these 529 plans to our family. I asked a simple question – “how much money have we invested into these plans since we opened them?” After some back and forth discussion, the representative was not able to provide me this information. I was told that this information would be provided to me at a later time. I was eventually sent statements that provided the current value of these plans; however, this was not what I asked for.

This did not sit well with me so I did some digging of my own. To my irritation, I found out that each of these 529 plans are now worth less than the total amount of our contributions (although after thinking about it, I was not really surprised, based on the recent performance of the stock market).

After I had a chance to reflect on this interaction, some questions came to mind:

Did the representative of this firm really not have this information? I was able to find this out by going to the source – so why did this “advisor” not take the time to do this for me? It only took me 10 minutes and this “advisor” was supposed to be my advocate. Is it a coincidence that I have lost money after years of investing in my children’s college 529 plan and my “advisor” was not able to provide the amount we invested?

We have been told for years that 529 plans are the answer to pay for college. Shouldn’t we look for a different option? Wouldn’t it feel good to be able to predict how our investments will look in 10-15 years regardless of market volatility?

Eagle Financial Solutions has given many families this predictability when it comes to safe money investing for college, and I wish I had known about this approach 10 years ago!

If you are looking for a safer way to save for college, retirement, or any other goal, do yourself a favor and talk to one of our safe money advisors. You won’t regret it – you’ll only regret that you didn’t do it sooner….

Today most Americans are scared to death that they will never be able to retire. Why is that?

We don’t trust our government, our politicians, or government retirement options, and we worry that taxes and inflation will continue increasing.

That being said, why would you invest into something that is not predictable, safe, and allows for statistical positive increases each year?

Are you comfortable about investing your own money? Are you confident that your 401k, IRA, stocks, or mutual funds are going to be in an up market when you retire? Are you sure that gold, real estate, or other investment models are going to get you where you need to be?

If you have any reservations or deep concerns about your retirement, then you might want to read this article: http://www.smartmoney.com/retirement/planning/how-to-deal-with-your-retirement-worries-1314981383813/

Then come back here and request a free consultation with a qualified safe money retirement specialist who can help you design a retirement plan you can count on to be there when you need it.

Create your own “bank” instead!  Just click here to find out how…

On January 4, 2012, CNBC featured the announcement of Morningstar’s Top Fund Managers for 2011. The best of the best were recognized for their performance. Several awards were announce during the Power Lunch segment as I was eating a sandwich when they announced the winners of the International Global Funds Division. International funds have been all the buzz as World Commerce continues to grow and major corporations seek a larger global foot print.

Karen Dolan, Morningstar Director of Mutual Fund Analysis announced the winners: William Browne and & Thomas Shrager of Tweedy, Browne Global Value Fund. Karen set up the award with the disclaimer that it was a very difficult year for International Stocks and Funds and that they look for Managers that do have a long track record.

Then I put my sandwich down and swallowed hard. Tweedy, Browne Global Value Fund was DOWN -3.08% in 2011.

I guess I was a little surprised that they could not find an International Fund that made money last year, but maybe I shouldn’t be….

Is that a recovery we see coming at us? Signs of growth in our economy are popping up and there may be light at the end of the tunnel. Unemployment has begin to decline, job growth is slowly improving and even the housing market may have stabilized a bit. Many economists are predicting moderate growth for 2012. Sounds good right?

Not so fast my friend. Are we ignoring something? Have we forgotten about a little item called our National Debt?

The scary part about our economic environment that we tend to ignore is the ridiculous spending and uncontrollable debt levels our government continues to disregard. Talk about kicking a can down the road. This can is so old and beat up it’s virtually unidentifiable! Remember when a million was a large number and a billion seemed massive? Now we throw around a trillion like it’s a c-note. How does $15T sound. That’s 15 with 12 zeros and that’s our current national debt and it’s climbing quickly.

So what. Who cares?

In reality, the odds are that we all will care at some point in our lifetimes. It’s definitely going to affect our children and grandchildren, but more than likely, it’s going to affect us and in a big way. Over 25% of our national debt is owned by China, Japan, the U.K. and Brazil. At some point, they’re going to want their money back. Where’s that going to come from? As a nation, we agreed in April of 2011 to authorize the U.S. Government to continue spending at a deficit of $1.48 Trillion for the fiscal year and we’re again asking to increase the debt ceiling even higher.

Really??? Something has to give and it’s going to happen sooner than later. Europe is not that much different than us. Many of our states are struggling to balance their budgets and their public pensions are facing massive shortfalls. We should probably act now, bite the bullet and seriously cut our debt with a plan to rein in government spending and generate the revenue to slash our dependencies to others.

With that in mind, here’s a little levity on the topic. Enjoy.

http://www.youtube.com/watch?v=Li0no7O9zmE

Typically, we have relied on three financial sources to secure our “golden years”: Social Security, investments, and the value of our homes.

In the past, this diversification has provided safe, sturdy, and worry-free retirements, akin to the three legs a stool needs to be stable.

Unfortunately, that nest egg we have counted on is no longer there. Social Security benefits only provide a minimum standard of living. Investments are not as high as most had hoped due to a “lost decade” in stocks. And home values have plunged.

This problem can’t be fixed with a few weekends working overtime. Many baby boomers set to retire already have deferred for a few years. In fact, the average boomer has saved less than one year’s salary for retirement ($29,000 according to Wells Fargo).

Meanwhile, for those fortunate and frugal enough to build up a substantial nest egg, typical sources of income such as bonds and CDs have only provided meager yields thanks to Fed Chairman Ben Bernanke’s low-interest-rate gamble to spur the economy - a gamble that is robbing you of any retirement income.

And that is to say nothing of President Barack Obama’s out-of-control spending spree that has sent U.S. debt soaring in excess of $15 trillion. The U.S. has no choice but to “default” through massive inflation.” (NewsMax Article from December 2011)

It seems every time you open the paper (for those of us who still actually receive a real paper) there are new stories about the continued tough economic climate, the significant volatility with the stock markets, and the historically high levels of unemployment, which makes one question.. is there anything good going on?

It is out of these difficult times that opportunities are often created. For those individuals that have not experienced growth and or stability in your financial portfolios, Carpe diem. It is time to take control of your financial future.

At Eagle Financial, we are not your typical financial advisors. The financial strategy we use for wealth accumulation is customized for each client around a secure, consistent and powerful safe money approach, which has proven time and time again to serve our clients very well. To find out more about how this strategy can serve your financial needs, and help YOU take back control of your future retirement funds, just click the orange “Get Started” button to the right to request a free confidential financial analysis.

As we are now a few years past the 30th birthday of the traditional 401k retirement plan we continue to ask ourselves, “Is this plan the best option for retirement or should I be doing something else, or something in addition to it?”

We all have our own opinions but who better to ask then Ted Benna, the man who created the idea and is known as the “Father of the 401k.”

As you will read in his recent article, he feels as if he created a monster.

The original 401k had only 2 options for investing. One was a guaranteed option and one was more risky based upon the performance of the market. The original suggestion for investment was to invest approximately 50% in each option.

Today, 30 years later after political interest and regulation involvement, Ted states that there are too many options for 401k investing which have led people away from the guaranteed option. The outcome: many Americans are unable to retire and going back to work in their senior years.

See full article here: http://money.msn.com/retirement-plan/article.aspx?post=eb9632ff-1d35-44ad-bf77-349f8492a081

The article explains the facts. Do you want to take the risk that your 401k will underperform causing you to work into your senior years, or would you like to add a guaranteed solution to your portfolio?

The only one who can answer this question for you, is you!

If you would like to learn more about our safe money solutions, just click the “Get Started” button to the right to request a free financial analysis.

Even our most educated economists are claiming to be unable to tell us when the next big market crash is coming. Learn the truth about economists, and how they too have a hidden agenda, in this eye-opening article. To tell you the truth, their agenda has nothing to do with making you wealthy.

Not all economists are in the pockets of the filthy rich banksters, but the ones that aren’t and did predict the 2001 and 2008 market crashes are not the ones you read about or hear about in our mainstream media. “Why is this” you ask? Well, those economists would cause panic in the market and allow us to protect our money by pulling it out of the stock market.

I could go on and on about all the corruption in the stock market, but the fact remains….the stock market is not a place of predictability and constant growth. The good news is, there are predictable investment models that aren’t tied to the stock market. If you are worried or upset about how the stock market has treated you and your loved ones, then The Bank on Yourself concept is exactly the solution to your investing problems.

Stop worrying about the next stock market crash. Leave the corruption of the stock market behind and grow your retirement the way you have always wanted. Start by sitting down with an Eagle Financial Advisor today. Just click the orange “Get Started” button to request a FREE analysis. There is no cost, no obligation, and no high-pressure sales involved.

How did you feel on December 22, the longest day of the year? That’s right - that’s the Winter Solstice and that means that it will get lighter every day going forward.

However, I think it seems dark and gloomy from a financial perspective. I don’t feel like it’s going to get easier, or that there is light at the end of the tunnel. Ok maybe, there is light at the end of the tunnel, but it looks more like a freight train headed right for our economy.

Below is from WallStreet Strategies Research which highlights that light at the end of the tunnel. Ok, FREIGHT TRAIN. If gross domestic product (GDP) equals US debt we are in for a lot of long nights to follow.

Source: WallStreet Strategies Research

A couple of things stuck out with the Q3 GDP revision this morning. First off, the result was revised down to 1.8% from 2.0%. The culprit was a retraction in personal consumption down to 1.7% from 2.3%. So, it looks like shoppers cut back more than we thought, although who can blame them after all that happened in Q3 in Europe. GDP would have been revised down yet a little more because of the consumer cutback if it weren’t for an increased estimate for inventory rebuilding.

And on to the really scary part, GDP in Q3 was at an annually adjusted $15.18 trillion. That’s not so bad, but taking a look over at the total public debt count, we hit $15.13 trillion on Tuesday, and if you add $50.8 billion of cash settlements, that means total US debt of $15.18 trillion is now at 100% of GDP.

Make sure your own financial outlook is brighter! Request a free consultation with a safe money advisor today, by clicking the orange “Get Started” button to the right.

One of the challenges we face as a company that teaches an “unconventional” strategy such as Bank On Yourself is the conflicting advice that our clients get from other advisors and the mainstream media. The Bank On Yourself concept is quite a paradigm shift for many, so it is understandable that sometimes people can feel confused by the different options.

There are a few things to keep in mind when making any financial decision, such as:

1. 1. Is this thing for real?
2. 2. And can I trust the person giving me this advice? (And often we are asking the wrong person anyway.)

However, perhaps the biggest question to ask yourself is:

“Is this right for me?”

Bank On Yourself may not be right for everyone. If you have no cashflow and need all the assets you have just to live on, or if you live way beyond your means, the B.O.Y. concept might not be feasible for you (at least right now). In some rare cases, health problems or other personal circumstances may pose an issue.

But in general, we believe the Bank On Yourself concept should be a very important piece of most financial plans, as it provides guarantees, flexibility, liquidity and predictable growth not found in any other financial vehicle available today. (See question #1 above.)

And, in case you were wondering, we put our money where our mouth is! Every single one of our advisors has at least one Bank On Yourself policy themselves (most have several), and 90% of our staff does as well. (See question #2. )

So if you have another advisor who is telling you to invest with them, and stay away from Bank On Yourself, you may want to ask them where they have THEIR money!

Something you may not be aware of is that pretty much all major banking institutions have a HUGE amount of cash value life insurance in their portfolios. (See Barry J. Dyke’s expose’ on this in his well-researched book, The Pirates of Manhattan, pgs. 148-156.) But your broker or advisor of course won’t tell you this (it’s not necessarily their fault – they might not even know, themselves).

If your advisor is also a broker affiliated with Citigroup, JPMorgan Chase, HSBC Holdings, Bank Of America, Wells Fargo, Washington Mutual, US Bank, PNC Bank, Fifth Third Bank, or just about any other large banking institution (in 2007 there were over 4,000 banks investing in BOLI – or Bank-Owned Life Insurance), do a little digging and see if you can find out where their financial holdings are. For example, in 2006, Wachovia’s cash values held in life insurance totaled nearly $13 Billion (yes, that’s BILLION – with a “B”)*. (And it’s certainly a lot more than that today, with the recent economic instability.)

Then ask your advisor – “If the company you work for owns $$$$ (billion dollars) in whole life insurance, why do you think it’s such a bad investment?”  Then come back and post a comment below – we’d love to know what he/she says!

* Dyke, Barry James. The Pirates of Manhattan, page 153. Hampton, NH:  555 Publishing, Inc., 2008.

Disclaimer

Have you taken a look at your 401k account statement lately? You’re not the only one who, when opening it for the first time in months, likely felt a gut-wrenching feeling as you saw your financial future slip away right before your eyes.

The truth is, while the 401k might be good for some wealthy individuals, it simply isn’t the best retirement-savings system for working class families. According to Fidelity, the average 401k balance fell 31% between 2007 and 2009.

The worst part is that is those closest to retirement were the ones hurt the most – what if your 401k account value drops right before its time to retire? Are you financially ready to stop working or will you have to push back retirement to a later age?

Take a look at these three clips that discuss why it is time to “retire” the 401k…

1) The Managing Editor of Time Magazine talks about the issues with 401(k)s and the solutions that exist: http://www.youtube.com/watch?v=OuSxPKNRrRk

2) Steve Kroft, from 60 minutes, briefly explains how the current economic recession is impacting older Americans and their retirement plans: http://www.youtube.com/watch?v=L3mj9acG4Uk&feature=related

3) As the default retirement plan of the United States, the 401(k) falls short, argues CBS MoneyWatch.com editor-in-chief Eric Schurenberg: http://www.youtube.com/watch?v=FNdBW9qXddk&NR=1

If you’re ready for a more reliable retirement plan, just click the “Get Started” button to request a free consultation with a safe-money retirement specialist.

 
Disclaimer

The number of whole-life policies sold in the last three years has trended upward. The reason for the growth is simple, these products offer guaranteed returns. As the market continues its uncertainty, whole life policies provide investors with a very valuable thing – peace of mind.

There are many advisors that stand by their formula of buying term and investing the difference. The question should be asked if this formula works.

Are investors getting the return they desire with this approach?

This formula needs to be challenged when deciding how to plan for retirement.

Here is something important to remember: wealth management takes time and discipline.

As investors look at their portfolio, they need to consider what percentage of their wealth is at risk and how much is guaranteed. As many continue to lose money in the market, whole life insurance provides a vehicle that helps investors accurately plan for their future. This approach can work; however, it will take some (see above)…time and discipline.

To see how whole life policies continue to grow as a vehicle for investors, please read the following article:   http://online.wsj.com/article/SB10001424052970204770404577080520794553252.html?mod=dist_smartbrief

Disclaimer

How are you preparing for retirement? Are you saving or investing?

Is your hard earned money, the money you will be depending on in your golden years, growing at a safe dependable rate or is it more like the scariest roller coaster at Cedar Point?

If you watch it from day to day and feel as though you need to hold on for the ride of your life, you might want to take a look at a much safer, much more dependable option.

Most people follow the general consensus that tells us all that we should be “saving” for our golden years with our 401k’s, IRA’s or other qualified plans. The problem is, we’re really not “saving”, we’re “investing”.

By definition, the word “saving” means: Rescue from harm, danger or loss.

The definition of “investing” in finance means: The purchase of a financial product or other item of value with an expectation of favorable future returns.

In other words, investment means the use of money in the hope of making more money!

In my 13 years in this business, I have met with many, many clients where this strategy did not pan out as planned…………at all.

They followed conventional wisdom and were diligent “investors”, contributing to their qualified plans like clockwork. Every pay cycle they added to their 401k, 403b or other qualified “investment”, only to see their values ride the waves of the stock market like a surfer riding the waves on the Banzai Pipeline, O’ahu. The Pipeline has some of the best and most dangerous waves in the world. It is definitely no place for a beginner; the waves are so intense that even some pros shy away from this area. Although it is one of the most coveted and loved surf spots, the danger should not be ignored. More surfers have died surfing at the Pipeline than any other surf spot.

The same thing has happened to many people “investing” for retirement. The only problem here is that most people really had no idea the amount of risk they were taking with their future. That is the really sad part. They were doing what they were told to do by the “experts”.

Too bad no one bothered to tell them there was a better way. A much better way….

The fact is, you can achieve a much, much better outcome with lots of perks along the way AND with much less risk AND guarantees! We have strategies that work every time, not just some of the time.

When it comes to saving for retirement or any other financial need, what makes more sense to you?

Plan A: A plan for retirement that you KNOW will work.
OR
Plan B: A plan you “hope” will work?

If you chose plan A (and I sure “hope” you did:) give our office a call - we would love to talk with you and show you how we can help you create a Rock Solid financial plan that will carry you through life and well into your golden years. Just click the orange “Get Started” button to the left, and request a free financial analysis with a safe-money advisor today.

 
Disclaimer

I was reading some past emails lately from a close friend and mentor of mine who is an expert in the college funding arena, and this one stuck out to me. He was reminding me of why 529 plans are not the best way to go.  Of course they have some positive benefits like tax-free distribution on any growth for qualified college expenses like tuition.

And there are some state tax advantages as well if opened in the state in which you live.  You may pass the account to other students who will be going to college if your oldest doesn’t and a few more…

But at the end of the day, these things were/are way oversold, and not appropriate for most and below are my friend’s reasons why he thinks they stink.  Guess what - I do too!

1. Expensive.  Average expensive ratio is over 1%/year and some plans are over 2%/year.  Add on top of that any front or back end sales loads which can be as high as 5%.

2. Market Volatility. Many accounts are down 30-40% with less than 5 years until college starts.  Even aged based portfolios (which are supposed to lower the risk the older the child) are getting hammered because they have to much exposure to the market.

3. Financial Aid.  Depending on the circumstances, 529s can count against a family for aid as an asset.

4. Liquidity.  This is a killer….  You can only change investment options one time per year.  So if a family made an adjustment in January, they have to sit around the rest of the year and watch their account plummet and there is nothing they can do about it.  (Sounds like the Enron 401k scandal doesn’t it?)

This little known rule was supposed to protect families from making knee-jerk reactions to market corrections, but it is clearly way too restrictive.

If you are looking for a better plan to pay for your college expenses, visit www.eaglecollegeplanning.com and request a free consultation with a qualified college planning specialist.

 
Disclaimer

Throwing a little fun into the mix….

A recent article about Left Handed people caught my eye. (My right eye, of course.) Financial planning begins with getting to know the client, what they want their financial future to look like and where they are today.

Part of the process is understanding how they think and what is important to them. Insert 10% of the population that is wired a little differently. They tend to be a little more creative. Ok all you creative types – or those who think you are creative - hold up your hand. So which hand is in the air and does it represent more than 10%?

As you enjoy the Holiday season, reach out for those that are left handed (with your left hand of course) and drop a few tidbits from the article below. Interesting cocktail chatter and a fun way to get to know a lefty.  syadiloH yppaH

That’s “Happy Holidays” if you read it Right to Left (so reading LEFT to Right is a good thing).

http://www.everydayhealth.com/healthy-living-pictures/little-known-facts-about-lefthanders.aspx?xid=aol_eh-news_8_20111205_&aolcat=HLT#/slide-4

This is a great news article about why college education is more of a necessity now than ever before for those hoping to compete in today’s marketplace.  The article discusses the stages a family goes through trying to figure out the best college/financial route for their children.  Recently “the Higher Education Opportunity Act of 2008 (Public Law 110-315) authorized legislation whereby every institution administering federal student assistance will be required to provide basic information regarding the cost of college for the proposed student.”

The end result created the Net Price Calculator (NPC).  Though the NPC is a great idea, there are many variables that don’t allow for the families who utilize the calculator to accurately compare the cost of different schools, or allow them to get the most true and precise details that a college planning professional can offer. There are many intangibles like filling out an Federal Student Aid application properly, inflation costs, and many other pieces that can sway a parent and student away from one college to another.  If your family needs help with this daunting process, don’t hesitate to contact our college planning team at www.eaglecollegeplanning.com for a free family consultation.

Read full article at:  http://www.foxbusiness.com/investing/2011/12/02/net-price-calculators-wins-and-warnings/#ixzz1fmYg8ZyD

If you thought that you broke your ankle playing basketball with your child, would you go to the emergency room or would you ask your friends and neighbors what you should do?

Obviously the correct answer is that you would go to the emergency room because you know they are well trained and equipped to take care of your needs.

So with that said, why do so many people ask financial advice from their friends and neighbors who are not professionally trained in that area of expertise?

I was speaking with a prospective client a few days ago who was having a change of heart with starting his Bank on Yourself plan. His reasons were, “I was reading a blog that was discussing the concept and many people had negative responses. They said it’s expensive insurance, that you lose your cash value when you die, and that you can make much more in the market.”

I asked my client who the individuals were that were making those statements and his response was “I have no idea.” So why would he put his financial future at risk on the advice of someone he doesn’t know, and who knows nothing about the concept?

Bank on Yourself is a proven and guaranteed strategy that will allow you to retire as you wish if planned properly.

If you are unhappy with your current strategy or you don’t feel you are on track to retire as you once thought, stop listening to the same old folks with the same old strategies that are not working.

Take the time to speak with an Authorized Bank on Yourself advisor and open your mind to learning something new so that you can determine if this concept is right for you.

If there was a guaranteed strategy that will provide you with the retirement account you have always hoped for, wouldn’t you want to know about it?  To find out more about whether Bank On Yourself is right for you, request a free financial analysis today by clicking the orange “Get Started” button to the right.

This is a great article for business owners that shows you some wonderful financial advantages for protecting your employees, your company, and creating more company tax-deductions. SERPs or Supplemental Executive Retirement Plans are the best financial vehicles to protect your company against any key employee losses.

When a company loses an executive, manager, or any person(s) the company deems valuable, they have to replace the monetary value of those individuals if they should die or leave your company. Creating a whole life w/ cash accumulation insurance policy creates a net worth benefit to your company, making it much easier for your company to deal with the unexpected transition.

Other benefits include: potential company tax-deduction on the cash value accumulation that is paid into each policy by the company; allows for better employee retention. There are so many benefits in utilizing a SERP within your organization. See full article for more details: http://www.mysanantonio.com/business/article/SERPs-can-help-worker-company-2298172.php#ixzz1f9k60zSa

If this article doesn’t grab your attention I don’t know what will. (Recent article from Business Wire: Economic Volatility Raises Doubts over Retirement and College Savings) These are serious problems facing you, me and your neighbors. With so many people struggling to find the right mix of decisions I challenge you to pause a second and reflect on the decisions you have made up to this point….

How do you feel? Do you have regrets? Are you still on the sidelines with making any decisions? I teach this all the time to our clients, but doesn’t it disturb you to know that such a high percentage of people can’t even save for college the way they want to? And to take it further, the real mess is the ones that are saving tend to save in uncertain, volatile places that can lend to more grief.

Why take the risk, why delay making smart financial and education decisions? Start with a good old-fashioned gut check and take a good honest look at the decisions you have made and how they have worked out so far, and be real with getting the direction you need to gain confidence and certainty in such an uncertain world.

A great place to start is one of our FREE local college workshops or simply giving us a call for a free analysis. Visit www.eaglecollegeplanning.com now to learn more.

HAPPY THANKSGIVING!!!!

We hope you have a wonderful holiday filled with food, friends, family, and fun. We are grateful for each and every one of you, and we appreciate your business and your attention.

Thanks for stopping by, and be sure to come back next week for some more helpful financial articles, resources, and safe-money tips for safely navigating the often confusing world of finance!

Inflation seems to be a concern that comes up in many of my meetings with clients, and for good reason. We all have heard about rampant inflation in other countries and have seen what inflation can do to the cost of goods over time in our own country. However, for now inflation is not a major concern. The producer price index continues to show that inflation is in check. To see the recent facts go to the link below and read the article.

Inflation is not the issue today, keeping your money safe and growing is.

http://www.wstreet.com/investing/stocks/25338_ppi_and_empire_state.html

To find out how you can protect your wealth AND build in some protection against future inflation, just click the orange “Get Started” button to the right and request a free consultation with a qualified safe money advisor.

More classic insight in this article from Bill Bonner regarding our debt crisis.  Good question:

Who is going to pay?

Think about your own debt….  It doesn’t just go away.  Either you pay, the creditor pays or the public pays one way or the other.  In the case of the U.S. and numerous other countries around the world, this is going to come to a head probably sooner than later and the markets certainly don’t react calmly to bail-outs and haircuts.

In just two days, the markets have given back a lot of the October gains and the S&P YTD change is back to  a -1.7%.  Riding this roller coaster in the markets is a high-risk proposition.  What if there was a safer alternative?  What if you could predictably grow and protect your wealth without all of this volatility and risk?  Worth a look, wouldn’t it be???

To find out more about a safer option, visit our Bank On Yourself page and request your own copy of the FREE 20-page report.

Oh Boy, with all the problems in Europe, the China October PMI fell unexpectedly, which is bad news for the market. I really believe that China can lead us out of the recession if they can continue to show robust growth. Corporations like Yum and their KFC brand are now driving more profits in China than the home USA market. The most recent Reuters report topline and full article can be read at the link below.

Speaking of below……Look out below if China continues to slow.

(Reuters) – China’s factory activity in October was its slowest since February 2009, according to the country’s official purchasing managers’ index (PMI), reminding investors of the risks to the world’s No. 2 economy from a sagging global backdrop.

Read the entire article at: http://in.reuters.com/article/2011/11/01/idINIndia-60234620111101?type=economicNews

Whether it is to provide liquidity, to equalize an inheritance, or to preserve your estate, you may develop a need for permanent life insurance, especially as you start aging. As you get older, maintaining a term policy will get increasingly more expensive since the premiums are based on age.

Take a look at this article by Forbes that discusses the 5 financial moves that you should make at 50:

http://www.forbes.com/sites/financialfinesse/2011/07/07/5-financial-moves-to-make-at-fifty/2/

Unfortunately we meet with families quite often that are facing underwater home values and are struggling with student debt.

Does it make sense to lend them more money to help them resolve their dilemma?

The same question could be posed for our country.   Should we make loans more readily available to a nation drowning in debt?

Credit card debt alone in the U.S. is staggering.  The average credit card holder has $15,799 in debt with an average APR of 14.89%.  (Source: “The Survey of Consumer Payment Choice,” Federal Reserve Bank of Boston, January 2010).

As well, housing values are stagnant with an average value 37.5% below their 2006 highs. (Source:  www.jparsons.net/housingbubble/)

In another classic message from Bill Bonner, the truisms of lending and relieving debt are pondered.  Worth a read.  Enjoy!

http://dailyreckoning.com/truisms-of-a-financial-crisis/

Not so fast European Union…. The news of the bail out deal in the European Union drove the markets last week but details of how they were actually going to fund the plan were sketchy at best. It’s wait and see time:

http://www.usatoday.com/money/markets/story/2011-10-28/stocks-friday/50974506/1

Amidst a sunken economy that has seen millions lose large chunks of their net worth and real estate values, our education system seems to continue to pick up steam in regards to cost, as though the economy were humming along just perfectly.

In a documentary which aired just before last Christmas on CNBC, called The Price of Admission, president Obama was quoted as saying, “college is a prerequisite.” While state budgets are anemic many don’t truly realize that education tends to get cut – including higher education. The end result is higher costs of college, meanwhile with students and families facing the fact that they must get a college education to just have a chance of getting a decent paying job (if they’re lucky). And all this is has resulted in over 1 trillion dollars of student loan debt in this country.

The article below speaks to the madness that threatens to keep this student loan debt number escalating wildly out of control. While student loan debts have doubled over the last decade, all the risk is on the young people who will start their professional careers and family life deeper in debt. In fact this article mentions an 8% increase or more in tuition at our public universities. Although the government has implemented a few changes to offset this increase in the form of tax credits or federal student aid, most will have a balance left to finance or pay for out of assets or cash flow (assuming they haven’t lost over half their value…).

See Article Here:
http://www.usatoday.com/news/education/story/2011-10-25/public-college-costs-increase/50919598/1

At Eagle College Planning we are more motivated than ever to educate families about the truth and provide sound solutions to the dilemma they face with regards to college costs, college selection, financial aid and scholarships, and much more. We encourage you to attend a free workshop in your area, and see how we can help you with these ever-more important aspects of the college planning process.

In this recent Fox Business article, boomers are encouraged to take heart, and take some important steps now that can help with the huge retirement issue they will soon be facing.

In a recent study by the AARP, over 35% of boomers fear that they may never be able to retire. But as this article points out, it’s really never too late to develop a plan (Step #1) - something we stress constantly to our clients – and having something for retirement is better than having nothing, even if that something isn’t quite as substantial as what you had anticipated 30 years ago.

The article also explains the importance of whole life insurance and annuities as part of a diversified financial plan for this age group in particular.

Read the full article here: http://www.foxbusiness.com/personal-finance/2011/10/06/five-steps-boomers-can-take-now-to-prep-for-retirement/

To find out how you can implement these 5 steps today, contact us, or click the orange “Get Started” button to the left to request a free financial analysis and consultation with an experience safe money advisor.

There is a lot of speculation today on what caused the financial meltdown in 2008. We can sit here and listen to our politicians continue to mislead us so that we don’t catch on to the truth, or we can start doing our own research and begin to take care of ourselves.

If you want to find out the truth, watch the documentary called “Inside Job”. This documentary is the first film to expose the shocking facts behind the economic crisis of 2008 and what really happened. You will be shocked to find out just how corrupt our banking system in this country has become, yet they continue to do nothing about it.

The main cause of the crisis is due to the lack of regulation in the financial industry. Even though they were given plenty of warning in the early 2000’s they did nothing to prepare for it, because if they did they would lose the opportunity to make millions. Our biggest banks in this country, through lobbyists and large campaign contributions, kept the banking industry from being regulated as it should have been. The banks made billions of dollars through corrupt strategies, continued to sell products they knew were failing.

They were also making money on the backside by betting these same products would fail, yet when the bottom finally fell out, the key individuals of these banks walked away with millions and the banks were bailed out with taxpayer money.

Since 2008 the economy has battled a major recession, millions of homes have been foreclosed on, and the unemployment rate has risen to over 9%. The cause of this was too much political influence combined with lack of regulation.

What angers me the most is that we have not learned our lesson from being so greedy. The largest banks received bailouts and have grown to be even larger than before by acquiring the smaller failing banks that were not bailed out. They continue to lobby, spending millions more to keep the financial industry from being regulated, which is what caused the problems in the first place.

Are we heading down the same road all over again?

Take your financial future into your own hands and do not continue to trust the system. Don’t take my word for it, review “Inside Job” and find out for yourself!

Then come back here and click the orange “Get Started” button to request a FREE analysis with a safe money advisor, and find out what you can do to protect your own money from Wall Street greed.

It hit me the other day after talking to a friend of mine about stocks and the stock market just how similar it is to Las Vegas and the gambling world. Just think of the marketing involved - commercials during the news, Sportscenter and even Sprout (PBS Pre-School) promote both!

“What happens in Vegas…Stays in Vegas” is the slogan we all know. Because we see it all the time. We also see the investment groups and mutual fund companies bright and shiny ads, with so much fine print that I cannot read it on our 42” HDTV…Paused!

How about this example: Every month Clay goes into Atlantic City with 20% of his salary and plays blackjack for his childrens college fund. Sure he has won a few games, but he has lost dozens of times. What do you think Clay’s wife and friends would think about this “retirement or college planning”? You can bet it would not be favorable.

But what if Clay did this: Every pay check Clay takes 20% and puts it into his stock portfolio that includes some mutual funds and a few individual shares here and there. Very “diversified”! Sure Clay has lost his proverbial butt a few times, but he breaks even most of the time…(he thinks).

Now with this example what is his family’s response? It’s not his fault he is losing money, the market will come back right? But the real question is, will it be in time for his children to go to college?

Let’s get real here! Add waitresses with free drinks and buffets to option two and they are nearly identical. All that is different is the degree of public acceptance.

Stocks of course can have their place. But when you are counting on money for something that you know is GOING to happen (e.g. college, retirement, etc.) it’s important to know that you do have options. Safe and secure options. (You could even take a policy loan to go to Vegas if you really want to, then pay yourself back and build your retirement/college fund even more. Any winnings would just be a bonus.)

We’ve all seen and heard about how volatile the stock market is; it truly is a ticking time bomb. So what if there was an alternative from of investment that could act as a “bomb shelter?”

As it turns out, there is a bomb shelter that protects you from the stock market: it is called whole life insurance.

Check out this article where investment guru John E. Girouard warns people to think twice before moving their money into bank CDs and money market funds:

http://www.johngirouard.com/news/my-investment-bomb-my-investment-bomb-shelter.html

If you want to find out how you can build your own “bomb shelter,” click the “Get Started” button to the right and request a free consultation with a qualified safe money advisor.

Here is a little stat from a recent MSN article that lists the highest paying Bachelor’s degrees. The average starting salary for the college class of 2011 is $51,018, up from $48,661 last year, according to a report from the National Association of Colleges and Employers. The survey asked 900 employers and 1,800 colleges and universities to come up with a list of top-paying college majors and their corresponding average salary offers.

While this rise is encouraging, the debt load students and families take on while attaining these degrees often times puts them behind the eight ball financially for years.  We feel that students, as a rule of thumb, should be taking on no more than half of what their anticipated annual salary commands.  For example:  a student who will command 65k coming out of college with a chemical engineering degree can feasibly afford 30-32k in student loan debts and not have to face moving back in with his parents. 30-32k of student loan debt will cost you approximately $350-400 per month for the next ten years.  For someone making 65k this is at least doable.

Sadly, families haven’t looked at the degree they will be going after as thoroughly as they should and miss out on creating the best “value for their education.”  The truth is, many people have engineering degrees with 80-100k in student loan debt!  This becomes a whole different value proposition.  A proposition you shouldn’t take and yet I know personal friends who are in this exact scenario.  Brutal!!!

Don’t fall victim to this.

There is nothing worse than working at a job you hate just to earn money and I agree money is a big driving force for many, but the premium you pay for the opportunity to make a living with something you love is the bigger driving force.

Come to one of our free college workshops and get yourself the knowledge and help you need avoid going broke over this college planning nightmare.

I like to monitor Consumer Confidence as the consumer is a major driver of our economy.   The Conference Board surveys 5000 households every month to determine how consumers feel about current conditions as well as their expectations of the future.

60% of the index measures consumers expectations which is a good leading indicator of the economy while 40% of the index measures how consumers feel about current conditions.

The consumer confidence index was up slightly from August 45.2 to 45.4.  While some newscasters could say that consumer confidence rose in September, the small increase is not statistically insignificant. Moreover, consumer confidence is at a two-year low.  Given the sample size of 5000, we need to see a 5 point increase before we bring out the party hats and blow the horns.  Consumers are still very concerned with high unemployment, uncertainty about the Federal Deficit, decline in housing starts and prices.

So far the consumer is not impressed with the economic outlook.   You can follow me on Twitter, “consumercentric,” signing off.

We’ve all heard it a million times: “Life insurance is a bad investment because the only way you can benefit from it is by dying.” But with a properly built whole life insurance policy, from a mutual company that is also a non-direct recognition company, this isn’t the case at all.

With a WL insurance policy like this, there are numerous “living benefits,” like a rapidly-growing cash value that accompany the death benefit. Take a look at this Business Daily article that describes some of the benefits of owning a WL policy:

http://www.businessdailyafrica.com/Life+insurance+has+plenty+of+benefits+the+living+can+enjoy/-/539444/1242662/-/sgk49w/-/

We got this in an email forward this week from an agent – it’s pretty eye-opening/mind-blowing when you look at the numbers this way. We see some pretty sad financial statements from time to time (like mine was, once upon a time…), but nothing like this!

• United States Tax revenue: $2,170,000,000,000
• Fed budget: $3,820,000,000,000
• New debt: $ 1,650,000,000,000
• National debt: $14,271,000,000,000
• Recent budget cut: $ 38,500,000,000

Now, remove 8 zeros and pretend it’s a household budget.

• Annual family income: $21,700
• Money the family spent: $38,200
• New debt on the credit card: $16,500
• Outstanding balance on credit card: $142,710
• Total budget cuts: $385

Looks like the US Government’s financial state of affairs is beyond the help of even Bank On Yourself….

Here’s a link to an article on the Fed’s new “Twist” program which isn’t going over very well.  This quote really sums it up and is something we all should keep in mind.

Nicholas Colas, chief market strategist at ConvergEx in New York, wrote in his daily market analysis:

“One source of inflation is a healthy economy running at full tilt and companies exercising pricing power over the consumers of their goods and services. A 10-year note yielding less than 2 percent signals that Treasury buyers do not think such a scenario will play out until 2021 at the earliest,” he continued. “That means little domestic earnings growth through the cycle and even less in the way of a recovery in domestic labor markets. Hard assumptions to justify owning equities, to be sure.”

See entire article here: http://www.cnbc.com/id/44672620

The root of the problem we face with our investments and finances these days can be summed up by one simple fact: We make decisions based on what we think we know that just isn’t so.

The problem is we have been lied to by Wall Street. I should know because from 1992 to 2003 I was an advisor during the biggest bull run in the history of the US stock market. Our clients were investing in Wall Street’s mutual funds and they were making money…until the technology bubble burst in 2000-2003. (The market later started to recover, then collapsed again in 2008.)

Traditional thinking leads us to believe that we have to take risk with our money in order to achieve our financial goals. Wall Street tells us that you make money in the long run, so you just need to stay the course.

But if this approach is working so well for Americans, then why is our country in so much financial trouble? Why are people working longer than ever, and with less hope of retiring comfortably? Who do you know that is financially free from investing in the market? I have met with thousands of families in the last 21 years and I have not met one person who had succeeded financially by investing in the market.

I have heard people say recently after the market’s recent losses that it was a great time to buy. Are you serious? Does that mean it was a good time to sell before that? Was anyone saying that to clients? What guarantees do we have that the market will go up?

None.

Wall Street firms make money when you buy and hold. When your account goes down in value, you still pay fees on your account which can range from .50 to 4%. Do you know what your cost basis is on your investments? How much of the money in your 401k is money that you actually contributed, yourself? You should find out because the truth could shock you.

Did you know that after the Great Depression in the late 1920’s it took 25 years to recoup your losses in the stock market? Japan was once a world economic power in the 1980’s. In 1990 the Nikkei was around 40,000. 21 years later it is around 10,000! If you had invested $1,000,000 in 1990 today it would be worth around $250,000! Think it cannot happen again here? Think again and read this article from Reuter’s Analysis:

http://www.reuters.com/article/email/idUSTRE7860ZH20110907

How long can you wait before it is too late?

Thankfully Bank on Yourself has changed my life and our client’s lives for the better. We have had more financial success in the last 8 years using this strategy than the previous 21 years using conventional financial wisdom. We believe a good portion of our clients’ money should be money that they can count on.

Our clients sleep better at night. Shouldn’t you?

Click the “Get Started” button above to request a free consultation with a Bank On Yourself Authorized Advisor, and find out how you can rest easier, knowing your money is safe and growing steadily for your future needs.