The ONLY New Year’s Resolution You’ll Ever Need

The ONLY New Year’s Resolution You’ll Ever Need

Right about now, hundreds of millions of people in America – and probably another gazillion worldwide – are gearing up for 2010 with their resolutions, ranging from quitting smoking to giving up poor eating habits to stopping overspending and starting to save money to religiously and regularly showing up at the gym. Year in and year out, those are the big 3: quit smoking, lose weight, get on track financially.

I have no doubt that all of these, as well as the countless other resolutions we make, are for good causes, as no one in their right mind would knowingly resolve to do something that harms them.

My point, though, is that ALL RESOLUTIONS ARE A COMPLETE WASTE OF TIME WITHOUT DISCIPLINE ALL YEAR ROUND! So to keep it pithy, all you need is DISCIPLINE. If you’ve got discipline, trust me, you won’t need to try to stay in shape or quit smoking for the eighth year in a row, as some are preparing to attempt right about now.

Here’s How I See It

Recognizing that you have “bad” habits is hugely important, because without admission, no problem can be corrected. But the thing you also need to understand is that ABSOLUTELY NOTHING magical will happen at the stroke of midnight on December 31, 2009 – or any other year, for that matter. So hurrying up to smoke or eat all you can before midnight on New Year’s Eve and “wishing” without discipline is simply a mind game – that’s why the average New Year’s resolution has a lifespan of about three weeks, to be generous.

However, with DISCIPLINE – which I would unofficially define as “the resolve to be dead serious” – you do not need to wait for December 31 to get started on any change you desire to make. But if starting for the New Year will make things “easier,” that’s OK. On the other hand, you can achieve whatever resolution you set your mind to whenever you set your mind to it, with discipline. So if you run a little short in the discipline department – and, frankly, who doesn’t? – work on that instead of wasting your time and repeating the whole exercise twelve months from now.

If something REALLY needs to be changed or accomplished, why wait until January 1 of next year to start? Honestly, the whole concept of New Year’s resolutions has never made any sense to me at all.

Relax – it’s not my intent to lecture you. I am nowhere near perfect and have my issues, too. My point is simply that if we can switch our focus to DISCIPLINE, instead of one-off resolutions that we will likely break regardless of how good our intentions, things will be a lot easier by the third week of January, every single year.

I think I am beginning to understand why at a speaking engagement the other day, the host introduced me as the in-your-face,-straight-talking-financial guy. Should I apologize for that? Come to think of it, shouldn’t you want your financial professional to be straight-talking?

Look, you’re going to do what you’re going to do. Declare those resolutions if they make you feel better. Then call us at (301) 949-4449 or visit us on the web to schedule your free consultation today! Any year now, I’m confident you will put an end to your financial resolutions, once and for all.

Wishing You a Lovely Christmas

Wishing You a Lovely Christmas

Ho, ho, ho! This is the week you're probably going crazy with last-minute stuff. For some, this is actually the week to start and finish all the holiday errands.

Good luck. Be safe. Enjoy the company of your family and friends.

And remember: we live, we learn, and we give so we can earn true wealth.

Merry Christmas! See you next week.

P.S. For those who've been looking for a reason and/or way to make Christmas more meaningful, here's a little video I just stumbled upon by a group known as Advent Conspiracy. They invite you to ask yourself how spending a little less money can bring a lot more meaning to this season of peace, love, and joy.

If you like this video, I invite you to pass it on. That's how these viral campaigns get their wings!

Three Christmas “Did You Knows” to Make You the Smartest Kid on Your Block

Three Christmas “Did You Knows” to Make You the Smartest Kid on Your Block

I wanted to share three quick, simple, and interesting facts about Christmas: 

• Did you know that Christmas wasn't a holiday in old America – I mean way-back-when. In fact, Congress was in session on December 25, 1789, the country's first Christmas under the new constitution. Christmas wasn’t declared a federal holiday in the United States until June 26, 1870.

• Any idea how many – real – Christmas trees are sold in the United States each year? Between 30 and 35 million! Christmas trees usually grow for about 15 years before they are sold.

• Did you know that Rudolph, “the most famous reindeer of all,” was “born” more than a hundred years after his eight flying counterparts? In 1939, Robert L. May wrote a poem about Rudolph to help lure customers into the Montgomery Wards department store.

You see? I told you it’d be quick – and you’d be the latest Christmas smarty pants! And just so you know, I adapted this information from the History channel.

OK - now you're smart about Christmas. But if you want to get smarter about your finances, that's where we can help! Call us at 301-949-4449 or come see us on the web to schedule your free consultation so that you can get your 2010 started on a smart, proven financial path!

Double-check Those Holiday Shopping Receipts

Double-check Those Holiday Shopping Receipts

As you embark on your holiday shopping expeditions – and afterwards – please pay particular attention to a trend that has been reported by some shoppers. Some people have noticed that additional amounts, ranging from $10 to $40 (at least according to the incidents I have heard about) were included in their final bill as “cash back” they had requested, when in fact they had requested no such money.

Some believe this is part of a new scam whereby unscrupulous employees at some retail chains are taking advantage of busy, unsuspecting shoppers during this hectic time of the year. Others explain these episodes as simply the malfunctioning of the payment processing machines.

Either way, no one should be out by even one cent in this manner – charged for something you did not request, let alone receive. Not to mention that credit card companies usually impose higher interest rates than usual on these types of cash advances.

Yes, it’s easy to get extremely busy, especially during the holiday season – but please, please, please do yourself a huge favor and take a moment to look closely and carefully at those pads, screens, and/or paper receipts before signing them. And also double-check your receipts afterwards just to be sure you paid for exactly what you intended to purchase.

Just remember to move aside while doing this, particularly if there are others in line behind you, because you know what can happen if you hold someone up, right?

Happy shopping, and be safe out there!
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For other smart tips and bits of financial wisdom that will help you make the most of your money, visit our website, or call us for a complimentary consultation at 301-949-4449.

3 Easy Tips for Making and Keeping a Holiday Budget

3 Easy Tips for Making and Keeping a Holiday Budget

Believe it or not, it’s that time of the year: Christmas is right around the corner! And you know what that means, right? Holiday shopping for friends and loved ones. Today I am going to share with you a very simple but extremely effective way to go about this process that some approach with dread and loathing, while others find the whole exercise therapeutic.

FIRST, understand that a gift is a GIFT. By definition, a gift is something you give freely – with no recompense (i.e., there is no expectation of receiving anything in return). Understanding this will go a long way toward helping you avoid the unnecessary pressure and stress that people often subject themselves to when it comes to holiday gift-giving. Contrary to what some believe, I am of the opinion that the size and/or value of the gifts carried in shopping malls CANNOT and DOES NOT even come close to matching the care and thought that cause people to want to give Christmas gifts – or any other gifts – in the first place.

What I am suggesting is that you avoid getting bogged down by the “hot and trendy today” and “must-have gifts” crowd at the risk of running yourself and your family into financial hell. I don’t know about you, but personally, some of the most precious and memorable gifts I have ever received (and still cherish to this day) actually cost only the price of a sheet of white 8½-by-11 paper and some crayons. The pages contain words – some incorrectly spelled – and images I could not decipher until they were explained by the giver. Take a moment to look back into your own life and ponder whether you have ever received similar treasures.

Don’t get me wrong: it is OK, perfectly fine, even terrific to give your wife a diamond necklace for Christmas. HOWEVER, there is also nothing wrong with giving her a handwritten note telling her how much you love and appreciate her. I’m willing to bet you’d be pleasantly surprised to find that the latter gift ended up earning you more mileage and goodwill than you could ever have imagined. Likewise, it’s great to get your dad a nice watch, but it’s an equally good idea to write him a note thanking him for all he’s done for you and telling him how much you respect and admire him. OK, first point made – a gift is a gift.

SECOND, write down the names of those you intend to give gifts to.

THIRD, next to each name DO NOT write the item you intend to give them. Rather, write down HOW MUCH you intend to spend on each recipient. Then add them all up to find your total potential gift expenditure. I will leave you to determine the rest of the process, as it relates to arriving at the total figure you are willing AND able to spend, because only you can make that decision.

Again, a gift is a gift, so once you have arrived at the total dollar amount you are comfortable with, go ahead and knock yourself out to purchase whatever meets the amount you've allotted for each recipient on your list.

Other people no doubt have their lists, too. But the vast majority of theirs indicate names and items, not names and dollar amounts. The result is that they spend whatever those gift items cost. You can see the difference – and understand why I advocate the exact opposite.

To use my favorite words again, it’s just plain common sense! You have it, so use it. Be safe and have a great time with your holiday shopping!!

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For other smart tips and bits of financial wisdom that will help you make the most of your money, visit our website, or call us for a complimentary consultation at 301-949-4449.

On Thanksgiving, Precocious Fifth Graders, and Pet Rabbits

On Thanksgiving, Precocious Fifth Graders, and Pet Rabbits

It’s Thanksgiving 2009, so please permit me to take a break from the usual financial stuff. As I have always maintained, money is 25 percent of the pie – the other 75 percent involves people; but you cannot go very far with a hole in either of these areas.

Unless you are a turkey, in which case this happens to be one of the worst times of the year, you MUST have something to be thankful for. I understand that given the economic atmosphere we are experiencing as a nation, coupled with the mostly negative news lately, it is very easy to lose sight and get sucked in by the pessimism.

But just take a moment right now and realize that there are so many things to be thankful for. In fact, I am willing to bet that the things in your life you have to appreciate and be thankful for far outweigh the bad stuff. For one thing, has it occurred to you that there are millions – if not tens of millions – of people just like you who wish they had the sight, ability, and strength to read this blog right now, but can’t?

Personally, this Thanksgiving I am thankful for my 10-year-old daughter, Amy Asare. If you have ever entered my office or spoken with me for more than 45 seconds, you know about her. And yes, my life revolves around her, pretty much because I figure she did not ask to be born. Now don’t get me wrong … she’s not spoiled or anything. Well, OK, maybe just a tiny bit.

I am thankful that I can say I am a proud daddy of a wonderful, healthy, happy-go-lucky – oh yeah, waaay happy – fifth grader who thinks that pizza is about the best thing ever and that Miley Cyrus/Hannah Montana is TOE-tally awesome! The transition up until this point has been an amazing, eye-opening experience. Although I have two younger sisters who are now adults but will always be little to me, I have never learned so much since having my daughter. A little advice for the guys reading this: If you want to be really, really happy, you’ve got to learn how to decode statements by listening closely. You know what I’m talking about?

I remember just the other day, Amy was a few months old. Her favorite spot at the time? In front of the TV, waiting for the next commercial so that she could dance to whatever music accompanied it. Then the daycare and kindergarten years, when she was asking questions like, “Daddy, what’s the New Year?” and telling her teachers that her dad was whatever profession they were reading about that day, including an astronaut and a scientist.

One time, we were on the road when she inquired, “Daddy, are you the boss at your office?” My response was something like, “Probably,” because I personally don’t like that term. Amy’s response? “Yeahhh!!!” with her hands up in the air, because her teacher had explained to her class that bosses tell others how to do their work.

Lately, I am dealing with how to get over the fact that conversations between her and her friends go something like: “Oh my God, that’s like so TOE-tally funny, awesome or cool.” If you want to know the real deal about what’s going on in your kids’ lives, you’ve got to observe them around their friends while you pretend you’re not listening in. Chauffeuring them to their endless events is a great time to do this!

Amy’s school recently started a 4H Club, and of course the club would not be complete without her. Her job is taking photos of the club’s activities – as a result of which she just discovered that she TOTALLY loves taking photos, it’s so cool, and therefore she wants a digital camera for Christmas.

This past Wednesday at 4H, they got to pet a bunny. And just in case you didn’t know, “Bunnies are sooo easy to care for. You can put them inside your house. All you have to do is sprinkle water on them and comb their hair. And oh, they have these really cool red eyes, and people eat them, but I won’t eat them. I only eat cow, and since I am in 4H I get to pay O-N-L-Y five bucks, Daddy!” You can imagine how the rest of that conversation went.

The point is, I am thankful. Please write back and tell us some of the many things you are thankful for. That’s what the “So, what do you think?” portion of this blog is for! Peace and Thanksgiving blessings to all!

Samuel

Laser Financial Group, LC

California May Be A Good Example of What’s Coming Down the Pipe

California May Be A Good Example of What’s Coming Down the Pipe

The State of California is facing a $26 billion budget deficit. Basically what that means is that they have $26 billion less tax revenue than they require to handle their expenses. To close that gap, the State has two options: either cut expenses or raise more tax revenues – or, perhaps a third option, which would be a combination of the other two. “Wait a minute,” you may be thinking, “do you mean raise taxes on the people?” If you figured that out, you’re impressively smart and obviously qualify to be a big kahuna budget expert.

Before we continue, let me tell you something that happened the other day. A friend of mine who works for the State of Maryland told me that they are not going to receive their scheduled raises this year because the state is running a budget deficit. She wanted me to explain how the State’s budget issues are related to her raise. She became an expert in that area within about 45 seconds.

So let’s get back to California, now. Here are a few of the deficit-busting strategies California has implemented so far:

• Beginning July 1, State personal income tax rates – GUESS WHAT? – were increased across the board by 0.25 of a percentage point. If the old rate was, say, 5 percent, now it’s 5.25 percent, and so on.
• Effective November 1, California Law AB17 instituted a 10 percent increase in payroll withholding. While technically not a tax increase, you can call it a forced loan to the State, because the state is basically borrowing 10 percent of the people’s take-home pay until they file their taxes and will pay them no interest.

Are you beginning to understand that ANY government quickly resorts to raising taxes to fill its budget shortfalls? I have been saying this for some time now, but the bigger issue doesn’t seem to have hit home yet. Sooner or later, it has to. California’s problem is $26 billion big.

One of My Mom’s Favorite Sayings

 How about the U.S. federal government’s national debt of – GET THIS – $12 trillion, and counting? In fiscal year 2009 alone, the budget deficit was more than a trillion bucks. So my question, simply, is: What do you think will happen to YOUR income taxes? My mom would often say that if you don’t know what a dead person looks like, simply observe someone who is asleep. All of a sudden, I seem to be remembering all these sayings, even though my mom never thought I was listening back then.

Regardless of where you live in the United States, any income tax increases affect you ONLY if you have “taxable” income. Certain folks in California remain unaffected by the increases in the tax rates not because they are broke and have no income, but because their income – regardless of how much it is – is not considered “taxable.” Our clients are more and more grateful by the day as they watch events around them unfold. Plain and simple, if you don’t want to worry about income taxes, don’t put your retirement savings into taxable 401Ks and IRAs. Period!

This is true today, it was true yesterday, and it will be true tomorrow. And yet I continue to witness far too many folks allowing themselves to be fooled by so-called financial advisors who are clueless when it comes to this issue of keeping retirement money tax-free.

Even 4-Legged Creatures Are Feeling the Deep California Cuts

Another tactic California has employed is reducing the number of days animal shelters are required to hold stray animals from 6 days to 3 days. That’s right. Unless they are claimed by their owners or adopted, the state will not prevent these animals from being euthanized after just 3 days.

To be fair, Governor Schwarzenegger’s office says that the state’s animal shelters “may keep the pets as long as they wish.” Isn’t that good news? Why cut the mandatory holding period in half, then? What does cutting the funds for caring for these pets from 6 days to 3 days really mean? We’re cutting your funds and you don’t legally have to keep these pets alive for 6 days anymore, but you’re welcome to do so, if you wish. It’s not really my place to comment because I’m not in charge of how they do things in California, but it seems to me that the explanation being offered about this animal shelter situation is absurd and just goes to show how far governments, both state and federal, will go when pushed to raise revenue.

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For more information about how to keep your retirement income safely tax-free, please visit our website or call us at 301-949-4449.

Would You Rather Be Trendy and Broke, or Atypical ... and Set for Life?

Would You Rather Be Trendy and Broke, or Atypical ... and Set for Life?

If you read this blog or follow any of my media columns on a regular basis, you already know that I strongly believe that only a few are on a truly solid track when it comes to planning for their retirements. Consider this data from July 2008, Social Security Administration’s Publication No. 13-11871: On average, for every 100 Americans reaching ages 65 to 69…

• 27 have died.
• 19 have incomes of less than $7,000 per year.
• 50 have incomes between $7,000 and $45,000.
• 4 have incomes of more than $45,000.

Most of the people I have shared this data with are quite surprised, because it’s difficult to wrap your head around how someone could live on such a low income, especially in those age groups. But my follow-up question is: Why do you think only 4 have incomes of more than $45,000 per year? Of course, numerous reasons may explain this rather troubling statistic.

In my opinion, though, the most interesting issue here is that most people actually do save for retirement.

Hmmm, so most Americans are saving, but only a tiny percentage are retiring with decent incomes. The reason? They simply follow the crowd and conventional assumptions, which for the most part are completely wrong. You see, it’s not possible to follow anything short of factual, realistic principles and end up in a good spot. And as it pertains to retirement savings, it appears that only about 4 percent of the American population – clearly not the majority – is doing OK.

Here’s the Typical Advice Many Follow

“Just sign up for your employer’s 401(k) or 403(b) program. Make sure you have a well-diversified portfolio. Maintain a “long-term” focus, and you won’t have to worry about the short-term brouhahas. In the long term, you’ll be just fine.” Sound familiar to you?

Although the majority may believe this advice (after all, how could so many financial experts, pundits, and my brother-in-law, Joe, be wrong?), could it be that this advice is precisely what people should NOT be doing? If this were truly sound advice, how come only the few who appear NOT to be following it seem to be making financial headway? You may have heard this before, but it’s definitely worth repeating: Beware of one-size-fits-all financial advice.

For instance, when the stock market crashed in September of last year, the MAJORITY of Americans took a beating with their retirement funds. Although some advisors and the media would like you to believe this is “normal” and happened to everyone, that’s just not the case. A minority of investors did not lose a dime.

NO ONE should arrive at their retirement dead broke, but the time to ensure that does not happen to you is TODAY! Call today or visit us on the Web to schedule your free consultation to find out how you can get on the road to a secure retirement. You can follow the trendy crowd and wind up broke, or you can follow proven techniques that really work. The choice is yours.

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One last thing. This is the week we honor our veterans. Everyone here at Laser Financial Group sends out a big, heartfelt “THANK YOU!!” to all our retired and active-duty servicemen and women. America would not be the America we know and cherish so much today without your continued and committed service.

Lower Income DOESN’T Mean You’ll Pay Less Taxes

Lower Income DOESN’T Mean You’ll Pay Less Taxes

Even if your CPA, financial advisor, some author or TV “expert” says otherwise, he or she is not just wrong – they are TERRIBLY WRONG! My fifth-grade daughter would probably put it this way: “That’s like soooo totally wrong!”

Many Americans are following this misguided belief, tending to defer their taxes until retirement when they expect to have lower incomes – as opposed to what they’re earning today – with the thought that they will, therefore, pay lower taxes after retirement. Alas, this occurs only in fantasy land.

Income vs. Taxable Income

I personally know two individuals who I’ll call Mindy and Terry. In 2008, Mindy’s income was about $46,000 and her income tax was approximately $2,400. Terry’s income was $108,000 and her income tax was ZERO. YES, Terry earned more than twice as much as Mindy, and YES, her income tax was N-O-T-H-I-N-G! And both of them filed their taxes legally and correctly – no gimmicks.

SUPRISED? You shouldn’t be. Because under current IRS rules, we are all required to pay taxes on our “taxable” incomes. Which therefore suggests that not all income is taxable! Mindy’s and Terry’s taxable incomes were approximately $20,000 and $0, respectively. Start asking your friends and you’ll be pleasantly or unpleasantly shocked to discover a similar trend – depending, of course, on your friends’ willingness to disclose their financial information to you.

On an almost daily basis, I meet with retirees who are trying to understand why they seem to have a tax problem when they were advised otherwise – that they would pay less taxes after retirement, since their incomes were indeed now lower.

It is possible – and happens quite often – to have a lower income, yet have the same or even a higher taxable income. It all depends on how many allowable deductions and/or exemptions you have, as well as how much of your income is taxable.

The fact is, no financial advisor, CPA, or expert – including myself – has any control whatsoever over marginal tax rates – that is the prerogative of the United States Congress.

Talking tax rates, where do you think they likely are headed, given our nation’s current fiscal climate? Up, of course! Do you therefore see how preposterous this whole idea of tax deferral could be, and why smart retirees are turning to Laser Financial Group for enlightened planning? To put it bluntly, it’s simply ridiculous for you to delay paying taxes until a time you strongly believe tax rates will be higher. Period!

You Can Take Charge

We are all allowed to structure our finances so that we make a little, a lot, or NONE of our incomes taxable. If you have not already received your copy of my book, 5 Mistakes Your Financial Advisor Is Making, I strongly encourage you to please do so now! It’s FREE!

This Saturday, November 7, I will be delivering a workshop to discuss – in detail – how you can have more control over your dollars now, and especially at the time of your retirement. Regardless of where you are in your planning process – or even if you are already retired – you will likely glean some useful, practical, simple strategies that will greatly enhance your financial lifestyle.

Reserve your FREE seats, as space is extremely limited. Those out of state could still benefit from one of our webinar sessions by simply submitting a request.

No Social Security Raise For 2010, at Least for Now

No Social Security Raise For 2010, at Least for Now

On August 31, I posted a blog about the then speculation that there would be no increase in Social Security benefit checks –affectionately known as COLA (Cost of Living Adjustment) – in 2010. If you did not read it, please do or simply refresh your memory.

Well, it’s now officially a fact and reality. But, that’s not really the point of my discussion today, because I’m pretty sure you’ve already heard this announcement. I’m no political blogger, but I have noticed an incredible –and I do mean AMAZING – situation where both Democrats and Republicans agree on something, but still manage to spin it to their perceived advantage.

A Democrat friend of mine sent me an email stating that seniors depend on these checks, so the good Democratic party is asking Congress to approve a $250 check for each Social Security recipient to make up for the COLA shortfall. The message here: The Democrats care and are looking out for seniors!

Then I received a Republican friend’s email: Don’t vote for the Democrats in 2010 because they are refusing our senior’s COLA while they approved raises for themselves (referring to Democrats in Congress).

Don’t you find it amazing that each agrees that the elimination of COLA is bad, yet they still find a way to say they are better than the other?

Beyond the Politics, There’s REALITY

I appreciate our seniors a lot, and want them to live happy, comfortable lives, especially after having toiled and helping make this nation the best and most powerful on the planet. But there’s more to consider:

Social Security is the largest source of income for most elderly Americans today, but Social Security was never intended to be your only source of income when you retire. You also will need other savings, investments, pensions or retirement accounts to make sure you have enough money to live comfortably when you retire. Saving and investing wisely are important not only for you and your family, but for the entire country.

Okay now, would you believe me if I told you the paragraph above was taken directly from the Social Security Administration? Well it was! I know you trust me, but just for the record, let me give you the official form number: Form SSA-7005-SM-SI. This is the green and white statement you receive each year – around your birthday – from the Social Security Administration. Their EXACT wording, right from the front page.

Three Quick Things

First, please do not count on the government for your retirement. Use it as the supplement/bonus that it’s supposed to be. You might be devastated if the forecasts of the Social Security trustees turn out to be true, even partially. Actually, those are not even my words; they are the government’s.

Secondly and technically, COLA data provided by the same institution that has been tracking it since it was instituted in 1975 show that it was negative, prices actually fell. I know it sounds ridiculous, but in this case, a deal is a deal. Right?

Thirdly, there are some who argue that the government cannot freeze the increase in the checks because many seniors lost significant portions of their retirement funds due to the stock market crash. It seems to me the blame should be shared between the “so-called financial advisors” and seniors who bought into the completely bizarre idea that it’s OK to gamble their hard-earned nest eggs IN the stock market, especially at this point in their lives.

FACT Flash

The stock market can delay or completely ruin your retirement, yet there are those who did not lose a penny of their investments’ value over this whole stock market’s tsunami. And they are on track to make competitive gains this year. I know because they are our clients!

Having said that, I would like the record to show that I am in favor of Uncle Sam doing whatever possible to help distressed seniors. Growing up, my mom used to say, “When your child takes a leak on your feet, you don’t – literally – chop them off. Instead, you clean them.” But notice, that does not – or at least is not supposed to happen – forever, right? In case you were wondering I was a good kid … sometimes.

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To take charge of YOUR retirement, regardless of your age, please schedule your no-obligation consultation today! You may also call us (301) 949-4449

News About the Stock Market 10,000+ Rally: Reality, or Just a Whole Lot of Hype?

News About the Stock Market 10,000+ Rally: Reality, or Just a Whole Lot of Hype?

Unless you were in a coma or on a desert island last Wednesday, October 14, 2009, you know that the Dow Jones Industrial Average closed at above 10,000 points – 10,015.86, to be exact. All you had to do was jump on any Internet news site, and you’d see flashing banners all over the screen. Every news outlet had this news as their top feature.

The main point about all the hoopla – from what I gathered – was that you were losing big if you were not in the market. “We TOLD you the stock market was THE place to invest, and see, it’s back baby! You’d better get off the sidelines and get back in the game!” I wonder how many people received phone calls from their stock brokers urging them to do just that. If I had to guess, it would be millions.

Emotions Up, Intelligence Down!

Not so fast!

Look before you leap!

Don’t jump off that bridge just because all the other kids are doing it!

All this stock market hoopla is simply an emotional selling point that amounts to nothing but absolute nonsense! Of course, I will explain why like I always do, letting you draw your own conclusions for yourself and your family.

But first, let’s be clear: I would LOVE for the Dow to soar. If I had my way, it would only keep going up forever! And the US dollar would get much stronger. And those countless Americans who are without jobs because of the stock market’s woes would be reemployed. And those facing foreclosures would regain control of their situations. And the tens of millions who’ve lost significant portions of the nest eggs they worked so hard to build – especially those who have already retired or are close to it – would regain everything.

But we live in the real world. Some of this will come to pass, but not all of it – and certainly not all at once, and not simply because of a few good weeks for the stock market. I do not like fuzzy presentations, filled with half-baked information designed to manipulate people’s psyches into doing things they would not do if they had all the information.

USA Today ran an article by Sara Lepro on their website that put it this way: “Cheering erupted from traders on the floor of the New York Stock Exchange as stocks briefly moved above the psychological barrier.”

The same article quoted one Carl Beck, a partner at Harris Financial Group, as saying “People feel more comfortable and feel like there’s less risk in the market when you get above a psychological point like 10,000.”

Jack Healy’s piece in The New York Times quoted a chief technical analyst at Citigroup Capital Markets, Tom Fitzpatrick, as saying, “It’s psychological.” I hope you’re getting the drift here.

This is what’s going through most brokers’ minds right about now: “Boy, oh boy, if we can just grab hold of investors’ emotions, we can toy with them and basically get them to do anything, even when it does not make sense. Basically, we do the thinking for them.”

I have nothing against any of these individuals personally, but their perceptions of investors are very flawed.

To think that you need to get unsuspecting, hard-working Americans – or any investor, for that matter – to the point where they invest based on feelings (i.e., irrational decision-making) because they believe there’s less risk in the market, when you know that you are not presenting the full picture, is doggone insulting and disrespectful!

Always Examine YOUR Situation More Closely

It’s perfectly true that the Dow closed at 10,015.86 on October 14, 2009. But it’s also true that the same Dow was at 10,323.16 on October 13, 1999. Given a more complete picture now, do you still think you should be so damned excited that the money you invested 10 years ago is 2 percent LESS today?

The Dow is up 53 percent since March 9, 2009. But it’s also true that on March 9, 2009, it declined to its lowest level in 12 years! So do you really think you should be ecstatic about that 53 percent gain, knowing that all the gains you made over the previous 12 years were wiped out?

What I find even more interesting – and troubling – is that back in March, when investors were freaking out, the very same experts and advisors were telling investors they should be focusing on the “long-term.” More or less, they were saying that what happens day-to-day is kind’a not really all that important. Well, we just found out that “long-term” is about seven months, because now they say it’s time to dive in, based on what happened on October 14. Pretty amazing, isn’t it?

As a matter of fact, this very same Dow plummeted 33.8 percent in 2008, which is the worst drop since 1931 – that’s 77 years!

Let me explain it this way. Say you had an investment worth $100,000 in the Dow at the beginning of 2008. By the end of the year, it would have been worth $66,200 because you would have lost $33,800, or 33.8 percent. In order to return to a value of $100,000 by the end of this year, 2009, guess how much the Dow would HAVE to gain? The answer: 51 percent! So far this year, the Dow is up about 14 percent. It was at 8,776.39 on December 31, 2008, and as of October 16, 2009, it closed at 9,995.91. (Yes, you are correct. That was below the 10,000 mark – the psychological tipping point – just two days later.)

I have said this several times already, but I will keep on saying it. If you lost money in the stock market, that money is gone forever! Although other advisors may have told you they are simply “paper losses” and that you will “recover,” that’s simply not the case. You see, there is no such thing as a paper loss in investing. There really are only two ways to go: gain or lose. Period! When the market “recovers” and you start making gains again, it is entirely new money. Only someone who did not lose in the downturn will make NEW gains, IN ADDITION to their existing balance.

I hope you are beginning to see things a bit differently. I call it common sense – you have it so use it if you want to secure your future. In the interest of full disclosure, I must point out that not a single one of our clients has lost a penny on the stock market during this whole recession brouhaha. And, they are doing very well this year. You should NEVER gamble on your financial future. Check out our practical, unique approach and end your money worries today!

Home Value Less Than Your Mortgage Balance?

Home Value Less Than Your Mortgage Balance?

 Are you in trouble? Generally speaking, this is absolutely untrue! I understand this may sound contrary to what you have been programmed to think, but here is the financial fact:

Home values – including yours – are determined by market forces. The value of your home depends on real estate market conditions, so as a homeowner, there is absolutely nothing you can do about the ups and downs in the values.

There are those who think – wrongly – that if they aggressively pay down their mortgages and build a lot of equity (the value of a house less the mortgage balance), their home values will somehow be “enhanced.” Sadly, some in the financial profession condone and teach this illusory and completely out-of-touch-with-reality concept.

When home values drop or increase in an area by, say, 20 percent, all homes in the area experience the same loss or increase. In other words, the balance of someone’s mortgage is completely irrelevant here.

For instance, let’s assume Karen and David are next door neighbors with Marvin and Laura, and the couples have identical homes, valued at $350,000. Let’s also assume that Karen and David have a mortgage balance of $170,000, meaning they have $180,000 in equity (their home’s value of $350,000, less their $170,000 mortgage balance). Marvin and Laura, on the other hand, have $70,000 in equity because they still owe $280,000 on their home. Now, if values were to plummet by 20 percent, for example, the drop would affect both couples’ home values in the EXACT same manner. Karen and David would not escape that hit; neither would Marvin and Laura experience a heavier hit.

The idea that you will somehow escape or experience a lesser hit to your home’s value if you have a lot of equity in it is simply incorrect. Let’s look at this situation from two perspectives:

Homeowner’s Perspective

At least to this point, as long as you keep making your contractual payments, your lender cannot ask you to pay up because the value of your house has fallen to a level that is less than the balance owed. Have you heard of anything like that occurring since the Great Depression era, when mortgages were callable? Of course not!

So, you don’t have to worry about the value of your house, as long as you continue making your payments. Even if you do worry, you are frankly wasting your time and energy because worrying will do absolutely nothing to change the value of any piece of real estate you might own.

As a Lender

This is a bad position to be in, because the value of your clients’ collateral (in this case, their house) is less than the mortgage loan. Someone owes you $280,000, and the amount you can recover should they default is only $120,000. Oh, and in case you were wondering why certain people you know who haven’t been paying their mortgages for waaay more than 90 days still haven’t been foreclosed on, yet others were hurried into foreclosure beginning on Day 91, check out how much equity each of them had. You’ll likely discover that those in the latter example had a lot of equity – which, from the lender’s perspective, is called profit.

If you were a lender, wouldn’t you teach homeowners to strive to eliminate their mortgages quickly and aggressively? The reason? So YOU (the lender) will have a safe profit margin in the event that your borrowers become unable to make their payments for 90 conservative days and you have to foreclose.

So you see, it really depends on which side of the bargain you are. My opening answer to the question of whether or not you should be freaking out was “Absolutely not!” because I was addressing the issue from the homeowner’s perspective.

Take-Aways

• Don’t purchase an overpriced house. I know people who, a few years back, bought homes they clearly knew were overpriced. Some even offered more than the asking price. But you know what? This is America, so you can pay whatever you want, regardless of whether it makes sense.

• You would be smart to hire a savvy financial professional to help you to successfully manage your home’s equity, so that you remain in control and ensure that your home is paid "for" in the smartest, most appropriate, and tax-efficient manner.

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Visit our website or phone us at 301.949.4449 for your free consultation.

MYTHBUSTING: Putting an End to Financial Truisms, Once and for All

MYTHBUSTING: Putting an End to Financial Truisms, Once and for All

TRUISM is a noun that means “an accepted truth.” Consider these financial truisms:

• The amount of income tax you pay depends on how much money you make.
  

• The stock market is the best place for long-term wealth accumulation.

• Investments with the highest returns always produce the most income.

If your financial advisor has ever said any of these things to you, KEEP READING!

I’ve discovered that an overwhelming number of retirees experience huge disappointments and, more importantly, they usually realize it too late. – Samuel N. Asare

After spending many years helping clients plan for secure retirements, I’ve discovered that an overwhelming number of retirees experience huge disappointments and, more importantly, they usually realize it too late.

I meet them on an almost daily basis, and everyone seems to have the exact same story: “My advisor and/or CPA told me this was the right approach.” And yet, there they sit across the table from me – or on the other end of the telephone – flabbergasted that things did not turn out as they’d expected. Which seems to be suggesting that the traditional advice and approaches aren’t working for the vast majority of people.

In fact, conventional financial advice has been dead wrong for many years. What is deadlier is that most so-called advisors truly have good intentions, which means that they are not even aware that they are offering misguided advice (truisms) that amounts to little more than myth. They don’t realize that they are completely out of touch with reality.

I can, to a certain degree, understand why someone might believe the statements above, BUT they are completely inaccurate myths.

Our latest book, 5 Mistakes Your Financial Advisor Is Making, points out and dispels five such myths, including the three above. Our goal was to write in an easy-to-read, easy-to-understand format. The feedback we’ve so far received suggests we did just that. This is a short book you can take with you to read in the waiting room at the doctor or dentist, or something you can simply read while relaxing. It’s that easy to digest, and lots of fun to read.

This book is NOT a witch hunt project – we’re not about that, at all. Our goal is to ensure that, as an investor, you receive the best possible guidance in your quest for financial independence. We don’t want you to be one of the many who get to retirement only to realize you’ve wasted all those years – and dollars – believing in myths. If financial professionals truly want the best for their clients, this would be a goal we share with them, would it not?

The book is formatted with “Eyeball-to-Eyeball Questions” at the end of each section. These are very simple, direct questions we suggest you pose to your current financial professional – looking them directly in the eye, if possible – so you can receive the answers that will confirm the myths and affirm the simple truths we’re exposing.

This may take some chutzpah on your part – and it might make your advisor more than a little uncomfortable. But wouldn’t you rather know now that you’re hearing myths – or just plain bad advice? Otherwise, you’re very likely to end up in the same boat as all the others who didn’t find out until it was too late to set a new course.

We are giving away FREE copies of 5 Mistakes Your Financial Advisor Is Making. Follow this link to get yours now!

The Important Stuff YOU Need to Consider About Roth 401(K)s

The Important Stuff YOU Need to Consider About Roth 401(K)s

You probably already know that the Pension Protection Act of 2006 authorized employers to offer their employees a Roth 401(k) option, under Section 402(A) of the Internal Revenue Code. OK, enough technical language – now to my favorite, plain English.

As one would expect, there are those who think the Roth 401(k) is the greatest thing that happened to retirement savings in the 21st century, but there are also those who think otherwise.

Those who don’t like it argue that when people retire, their incomes generally decrease, hence they’re bound to be in lower tax brackets. Therefore, they argue, it is better to delay paying taxes, letting the money compound until retirement when you will pay less in taxes. However, if you really pay close attention (which most people don’t do until they are actually retired), this whole argument sounds crazy. It’s pretty much just a big joke! But to be fair, I feel obligated to state all points of view.

Here’s the thing. From what I have personally witnessed in my consultations with REAL people in this country, some of whom are already retired, although their total incomes usually decrease in retirement, their taxable incomes are not reduced enough to significantly alter their tax brackets. Actually, most of the already-retired who contact our firm do so because they’ve fallen prey to this bogus assertion and now need help so they can spend their retirement money – instead of paying it out in the form of taxes. I discuss this as Mistake #1 in my upcoming, easy-to-read book, 5 Mistakes Your Financial Advisor Is Making. Stay tuned – I’ll tell you how to get your FREE copy in the next couple of days.

Those who champion the Roth 401(k) argue that it’s better to make after-tax contributions so that you get to grow your money and withdraw it tax-free, on or after the date you turn age 59½, provided you’ve had the account for at least 5 years. When you die or become disabled (within the meaning of IRS Code Section 72(m)(7)), distributions are also tax-free. Yes, it sounds a bit technical, but that’s the language our government speaks.

Given our nation’s current fiscal climate, with its unprecedented budget deficits and incredible pressure on Social Security, Medicare, and Medicaid – increasing by the minute, as the baby boom generation nears retirement – tax rates are most likely headed up. Y’know, Uncle Sam must pay his bills, too. This is why I generally advocate not waiting to pay your taxes in the future, because one of the things you cannot lock in, no matter how you might want to, is tax rates. But if you and your advisor truly believe that tax rates will be coming down sometime soon, go ahead and knock yourself out with a traditional 401(k) plan.

You Cannot Convert a Regular 401(k) to a Roth 401(k)

Yes, even if you want to, the law does not allow the conversion of a regular 401(k) to a Roth 401(k). Wonder why? Could it possibly be that Uncle Sam understands very well why I caution people against these products? The majority of Americans – to their own amazement, and contrary to what most of their so-called financial advisors and accountants “promise” – stay in the same tax bracket (or move up to a higher one) during retirement, because their taxable incomes do not decrease enough while simultaneously, their exemptions and deductions are reduced. Interestingly enough, this is the nearly inevitable result of listening to the toxic retirement planning advice they received from the very same “experts” who promised them lower taxes.

Realize I said “taxable” income. Because this is drastically different from total income, which is what your advisor told you would be lower when you retire. And guess when you will have to start withdrawing the money from your traditional 401(k) to pay those deferred taxes? If you guessed as soon as you have few to no deductions and exemptions, we are on the same page.

Another thing, your employer’s matching contributions MUST be made only in a regular 401(k) format. This makes no sense to me, but again, it’s the law. While your money is going into a Roth 401(k), your employer’s match must go into a regular 401(k), which you decided you didn’t like in the first place – that’s why you switched to the Roth!

A Roth 401(k) also requires that once you attain the age of 70½, you begin making minimum withdrawals, just like you would with traditional plans.

What If You Could Enjoy the Benefits of a Roth 401(k) Without All the Strings?

Under existing IRS rules, there is a means by which you can make after-tax contributions to your own account and access it tax-free, including the gains accrued before age 59½ , without being obligated to repay it. And, you do not have to make any minimum withdrawals once you reach age 70½. Since money from the vehicle I am talking about is not considered earned, passive, or portfolio income under the Tax Reform Act of 1986, it does not affect taxation of Social Security benefits in any manner. It also allows you to transfer any remaining funds to your heirs, income-tax free upon death.

I can guess how you must be feeling right now. It’s kind of like that game board that’s covered with red (0r white) and black squares. You can decide to use it to play the game of checkers OR chess – the choice is up to you.

Give us a call at 301.949.4449 or visit www.laserFG.com to schedule your free consultation and let us help you understand ALL of your options.

Hurray, the Recession is Over! But Are Your Investments Recession-Proof?

Hurray, the Recession is Over! But Are Your Investments Recession-Proof

Roughly a year ago, a series of tumultuous events like the collapse of that financial giant, Lehman Brothers – well, maybe not so much – futher decimated the already weak economy, sending the stock market into an official “crash.” Of course, you know the story and are likely dealing with your own bitter memories and doing your best to look ahead.

On Tuesday, September 15, 2009, Federal Reserve Chairman Ben Bernanke, during an appearance at the Brookings Institution said that “from a technical standpoint, the recession is very likely over at this point.” For the purposes of this blog his assertion is, to be blunt, irrelevant. But since he’s the Chairman of the Federal Reserve, I am willing to say that technically he is correct. So, HURRAY!!

On a more serious note, I am still receiving phone calls and emails, and consulting with people who have lost in excess of 50 percent of their nest eggs and home equity, thanks to the recession. Those who are already in retirement or close to it probably feel they will be experiencing the recession for the foreseeable future, regardless of the growth in the Gross Domestic Product of the country as a whole, or what any economist, politician, or journalist may say or think.


If Your Investments Lost Value, You CAN’T Recover

The modest good news is that most investors look forward to making some gains to reshape their depressed portfolios – and it’s about time! Notice, though, that I said “make gains,” not “recover,” like almost everybody else on TV, radio, the Internet, or in the newspaper tends to put it. The plain truth is that regardless of how badly investors would like to “recover,” that will never happen. In investing, you can only GAIN or LOSE. Recovery is not an option – sorry!

Actually, this whole recovery idea is one of the most dangerous myths I see in personal finnancial planning. Let me try to explain my point with this example:

In 2008, the S&P 500 Index lost 38.5 percent. If it were an investment and you had $100,000 invested in it, you would have ended the year with $61,500 – meaning you would have lost $38,500. So far this year – as of September 16, 2009 – the S&P 500 index has gained about 15 percent. So the balance in your account is now up to $70,725, meaning you gained $9,225. My main point is really, really important for you to understand: Not a single dime of the $9,225, or 15 percent gain you've made so far in 2009, is a return of the $38,500 you lost in 2008. Although some – actually the majority – in the financial industry want you to somehow believe that it’s no big deal and you’ll make that money back, or “recover,” that’s just not the case.

Now, let’s compare and contrast that with the simple, proven, and time-tested investing strategy I teach. None of our clients – not a single one of them – lost even a penny in 2008. It’s the same year, in the same economy! In fact, most of them gained about 5 percent.

So, investing the same $100,000 from the previous example, my approach would have caused you to end 2008 with $105,000 – or a 5 percent gain. Not too bad in a "down" economy, is it, particularly when most investors were bleeding serious dollars. Here is the kicker – if the S&P 500 Index holds its current 15 percent gain through the end of this year, this $100,000 account – following my guidance – will earn $15,750 (15 percent of $105,000) for a total 2009 balance of $120,750.

You're smart, so you no doubt caught on that the account did not lose, but also that it picked up a 15 percent gain for 2009, in addition to the 5 percent gain last year.

So, BASICALLY...

Not only did you not lose, but those gains would have been added to your account's balance.

How long do you think it will take you, at the pace of your current strategy, to catch up and overtake investors following the strategy I teach? The truth is no one knows, including myself. But what I do know – FOR SURE – is that your retirement is certain and it's probably smart - no wait, forget probably, it’s simply smart NOT to gamble your retirement assets directly in the stock market.

Recessions will come and go. Isn't it in your best interest to pursue a recession-proof investment strategy?

For your chance to see first-hand how we're different, call us (301.949.4449) or visit our Web site to set up your free consultation today!

Advisors Are NOT Decision Makers – and Vice Versa

Advisors Are NOT Decision Makers – and Vice Versa

As people consult with us daily, we are discovering that, for the most part, they have very little idea about the way their financial products work or fit their financial goals.

Lately, we are seeing an alarming trend: In hindsight, everyone seems to discover they own the wrong product/plan. What is disturbing about this is the fact that in all the cases I have witnessed personally, these unsuspecting investors were offered these supposedly golden products or enrolled in plans by their so-called advisors without having any real understanding of what they were getting into.


I am willing to bet there’s a good chance you have fallen prey to this unnerving phenomenon. Simply ponder these questions about your own retirement plan:

• Who decided which product(s) you should own (beyond any funds you may have personally selected)?
  

• Do you really know why you ended up with that particular product/plan?

• Were you provided with any clear options (again we’re talking about products, not fund selection)?

• How do you know you have the best plan to fit your needs?

They’re Called Advisors, Not Doctors

Plain and simple, a financial advisor is supposed to understand your goals, assess your situation, and – get this – provide you with legally available product options, explaining to you in clear words how each of them work.

Instead, what we discover every day with our clients is that investors are lured into products that often are not in their best interests, and they never even discover this until it’s too late. In most cases we have witnessed, the only logical reason underlying their purchase of a particular product/plan seems to be the interest of these so-called financial advisors’ commissions and/or company profits.

A financial advisor’s role is not the same as a doctor’s. In the case of medicine, situations arise where your physician understands and knows the only course of action and suggests it to you. For instance, when a specific surgical procedure must be performed to correct a health issue, your doctor tells you exactly that: this is your only option, or you will die. But if you didn’t want to live, you probably would not have sought medical treatment in the first place, right?

Having been a financial strategist for many years, and having helped numerous families plan for their retirements, I contend that in almost all instances, there is more than one financial product for a particular scenario, and it is in the clients’ best interest to be informed of these choices. Unless a product is like oxygen – and, honestly, no financial product is – an advisor should never advocate any single product as the solution everyone needs to survive.

Why Did You Choose Your Current Financial Product?

I ask this question all the time, and the most familiar answers I hear are:

• My advisor said it was what I needed.
  

• You mean there’s another option? (In other words, “That was the only product I was offered.”)

The big problem here is that the advisor is owning/making the decision. According to a recent report by The Vanguard Group, 84 percent of its more than 3 million retirement-plan participants did not make any changes to their accounts in 2008. Although various reasons may account for this, you do not have to be a mind reader to know that most of these investors do not even understand which financial products/plans they own – because someone else (i.e., their advisor(s)) made the choice.

Don’t you see, read, or hear it all the time? Some expert has already decided that an IRA, annuity, or some other product is best for you – all you have to do is contact them and sign up? Well, in my view, that’s nonsense! And it explains why the large majority of people experience complete financial crashes during their golden years.

At Laser Financial Group, we always provide our clients all the possible options, based on their specific scenarios, with detailed, year-by-year and side-by-side comparisons, explaining the facts about each of these options. And 100 percent of the time, they tell us what would best meet their needs. From that point forward, they are able to explain to anyone which product/plan they own, how it generally works, as well as why it is best for them. You’d think this makes sense and is a simple enough concept, but when was the last time you were offered such an option?

It’s high time some so-called financial advisors quit dictating to clients which products they should own, instead explaining to them their options and letting them exercise their right to choose what would best serve their needs.
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Find out how we're different from traditional financial advisors. Please call our office at (301) 949-4449 or visit http://www.laserfg.com/ to schedule your free consultation.

Dear Homeowner: Are You Maximizing Your Mortgage Investment?

Dear Homeowner: Are You Maximizing Your Mortgage Investment?

Dear Samuel,

My wife and I are very concerned about the effect of the recession on the value of our home. We are planning on using our home’s equity to support our
retirement income, but our home has dropped in value from about $450,000 to $275,000 presently.

We have been paying $300 per month extra toward our principal, so we owe only about $80,000 more on it. As a personal finance expert, what advice can you offer the average homeowner? What can we be doing to secure our investment in our home without damaging our future retirements?

We would greatly appreciate your response.

Jim and Mary Allison

In the interest of full disclosure, this is a real letter from an actual couple, but I have changed their names before sharing this CRITICAL query and my response with you. The couple has given me their permission to do so.

My Response to Jim & Mary

Hello, Jim and Mary –

Thanks so much for writing and trusting me to offer a response. I’m pretty sure tens of millions of homeowners share the exact same concerns. I am pleased to share my thoughts with you.

Over my years as a financial strategist, I have always maintained and helped my clients understand that home equity is a great way to augment retirement income. But – and this is a BIG BUT – the manner in which this is accomplished is extremely critical. The majority of homeowners, like you, tend to follow conventional wisdom which, sadly, is outdated and wrong.

You see, striving to quickly eliminate your mortgage and building equity IN your home tends NOT to be financially savvy in most instances I have encountered. I understand the rationale that paying off your mortgage quickly might “save” you on interest payments. But consider what you could potentially “earn” by saving those extra dollars in a conservative side fund, instead of paying off your mortgage directly.

There are two intertwined truths in finance called Opportunity Cost and Arbitrage that suggest that there is a cost and benefit to all financial decisions. And whenever the benefit outweighs the cost, that is the more savvy option – because it will improve your net worth.

Over the years, I have recommended that our homeowner clients SEPARATE their home’s equity, to the extent it is financially prudent. The rationale behind my approach is the fact that home equity is not a safe investment when it is left to accumulate idle in a house.

As you mentioned in your letter, you and your wife have watched helplessly as $175,000 (the depreciation in your home’s value from $450,000 to $275,000) of your equity and retirement funding has vanished – never to be restored. I say that because if and when the value of your home recovers, it will be new money that returns, so to speak, as you would have made those gains in addition to the $175,000 lost investment if you had followed the approach I recommend.

On the other hand, say we had determined that your mortgage could be increased to $300,000, without any change in your overall spending outlay. So instead of paying that extra $300 per month toward your principle, you had paid it toward an increased mortgage payment, without your total monthly spending having changed by even a cent. So instead of holding $370,000 of equity (your home’s value of $450,000 minus your $80,000 mortgage) you would have held $150,000 ($450,000 minus a new $300,000 mortgage) inside the brick and mortar of your home thereby clearly reducing your risk exposure.

If that scenario had played out, even after the drop in the value of your home from $450,000 to $275,000, you and your wife would NOT have lost a penny of the $220,000 ($300,000 minus $80,000) that was separated from your house and placed in a conservative side fund – obviously, because it was SEPARATED.

Notice that your home’s value would have plummeted either way – with or without the equity in it. But your retirements would not have been compromised if you had employed the strategy I teach.

It would be a self-defeating strategy to separate your home’s equity – up to a financially sensible level, bearing in mind opportunity cost and arbitrage – and then exposing it to market risk. I must also point out that I recommend a conservative investment strategy for my clients. They do not lose a dime of their investment portfolios’ values when the stock market tumbles, because we simply link their portfolios to the market as opposed to having them invested directly in the market.

I hope this helps you and Mary understand, in a general sense, my recommendation. Unfortunately for the two of you, as I mentioned earlier, we can do nothing to regain your lost investment. We can merely hope to make up some of the loss sooner than later. I would be glad to meet with you to help you assess your situation in detail and make specific recommendations to help you safely, securely – and, quite frankly, sensibly – achieve your dream retirement.

Please call our office at (301) 949-4449 or visit http://www.laserfg.com/ to schedule your free consultation.

Best Regards,

Samuel
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Dear Readers:

This offer is not limited to Jim and Mary. I am extending the same offer to each of you. Isn’t it time you took control over YOUR financial future? Call today to schedule your free consultation.

Sincerely –

Samuel