The Flaw in Relying on "Potential" When It Comes to Your Retirement Planning

The Flaw in Relying on "Potential" When It Comes to Your Retirement Planning

While “potential” is a great thing and for that matter should be encouraged in many aspects of our lives, the one area where it doesn’t carry much weight is in planning for retirement.

Because the clock simply keeps ticking, we don’t have much of a choice – we MUST retire one day, sooner or later. If that’s true, don’t you find it baffling (as I do) that nine out of 10 folks have retirement financial plans that hinge entirely on potential? Things like, the potential that…

·         The stock market will do really well and not plummet just before, or during, their retirements. Or even if it does dip, that it will recover so that they can catch up and have the comfortable lifestyles they dream of.

·         Tax rates will be lower during their retirements so they will get to keep more of their yet-to-be-taxed savings.

Of course, you have the freedom to prepare for retirement as you wish. But judging by what people tell me and the emails I receive from folks all across America, most simply went with their so-called financial advisors’ recommendations, although these recommendations were based entirely on potential outcomes. These folks are now stuck, having learned this unfortunate lesson the hard way.

It is okay to challenge your advisor, because as it turns out, many advisors don’t follow everyday commonsense in their work. Think about it: The definition of potential, when used as a noun is “Latent qualities or abilities that may be developed and lead to future success or usefulness.” The keyword here being may, which also means may not. But our retirements are not potential, because our biological clocks have no mercy!

So what happens if the stock market doesn’t do well? Or if taxes sky rocket? You still have to retire. Do you want to stake everything on a possibility, or would you rather make a guaranteed plan that will benefit you, regardless of market conditions or tax rates?

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Contact a financial professional at Laser Financial Group TODAY to schedule your complimentary consultation. Learn about strategies and plans that won't leave your retirement success up to potential market gains or advantageous tax rates. LaserFG.com or 877.656.9111.

One Obvious Red Flag That Your Paid Tax-Preparer Is a Whack Job

One Obvious Red Flag That Your Paid Tax-Preparer Is a Whack Job

Most of us are good, law-abiding citizens and therefore expect that everyone – especially those we deal with businesswise – are of the same breed. Well, as it turns out, that’s not necessarily the reality in tax preparation (or in any other business, for that matter).

According to the IRS, illegitimate tax preparers are increasingly becoming a huge problem. Just because someone claims they have a tax-filing business doesn’t make them legit. In fact, at this moment Federal courts are issuing hundreds of injunctions ordering certain individuals and/or so-called businesses to cease preparing returns, and the Department of Justice has pending complaints against many others.


While many signals can point that you are dealing with a scrupulous return preparer, this single action should serve as a very bright red flag:

Your preparer did not put his/her
information on your tax return.

In 2012, IRS rules require every paid preparer to have a “Preparer Tax Identification Number” (PTIN). And, most importantly, this PTIN must be entered on every return a preparer completes. The only thing I can think of that would keep a preparer from making sure this information was on your return would be that they’re up to something fishy.

Of course, keep in mind that a PTIN in and of itself doesn’t mean “nothing to worry about” – just that the lack of one should cause you immediate concern. Happy tax filing, if there is such a thing.

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Contact a financial professional at Laser Financial Group today to schedule your confidential, complementary session. Make sure your money is working for you so that when retirement comes, they really can be golden years. LaserFG.com or 877.656.9111.

The DOW, Your Financial Advisor, and Common Sense

The DOW, Your Financial Advisor, and Common Sense

I hope hard-working Americans who are trying to protect and grow their money for better retirements are paying close attention to what happened – AGAIN – this past week, and more importantly, have deduced the right lesson from it.

Tuesday, February 28^th saw the “We’re back baby!” huge 13,000 DOW milestone. The inherent message: investors who are not directly invested in the stock market are missing the opportunity of a lifetime to retire wealthy. I’ll bet many received precisely those telephone calls from their brokers urging them that the time had come to dive in a little deeper.

But what was the news exactly 7 days later on March 6^th? “DOW falls more than 200; worst day in 2012.”

I know you are smart and most probably know (and understand) this already, but it wouldn’t hurt to hear it again: these talking heads cannot predict the future of any stock market – not today, tomorrow, or any day in the future. The best ANYONE can do is play Monday morning quarterback. So do yourself a huge favor and invest based on reality.

And the reality is that these so-called prediction experts have always gotten it wrong about the stock market – so why should you listen to them now? If my financial advisor seemed to always follow the current trend, I’d be very concerned, because that’s a bright red flag that he or she isn’t sure about exactly how to secure my future. Upon second thought, why should I spend any time being concerned when I could fire them and hire someone with some common sense?

Investing isn’t exactly rocket science, but as it turns out, common sense isn’t so common these days. My hope is that you don’t have to learn the difference the hard way.

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If you want a dose of real common sense, contact a financial professional at Laser Financial Group today for proven advice about the best way to secure your financial future. 877.656.9111 or LaserFG.com.

DOW’s 13,000 Rally – Just More Hype

DOW’s 13,000 Rally – Just More Hype

Unless you were literally living under a rock last Tuesday, you probably heard the “breaking news”: We’re back, baby! The DOW reached 13K (13,005.21, to be precise). Granted, any sign that our economy is gaining steam is awesome news, but from the way most of the media talking heads and so-called experts covered it, you might easily get the impression that most investors’ recent stock market woes have been completely reversed. Of course, that’s not the case!

Here’s why your nest egg isn’t where you were expecting it to be, vis-à-vis the DOW:

First off, the DOW isn't the best measure of the stock market. Although media accounts may make it seem that way, the DOW follows only 30 (THIRTY) of America’s largest companies. Sure, these are important companies like American Express, Bank of America, Boeing, Chevron, DuPont, Coca-Cola, McDonald’s, AT&T, Walmart, and IBM, but you wouldn’t take the stock prices of just a handful of companies – out of more than 2,000 – as a true proxy for the entire stock market, would you?

Secondly, those numbers you hear about are weighted. Why is this critical? See, the way arithmetic works, all it takes for the DOW to experience a huge jump is a very small change in the price of high-priced stocks. In effect, just a handful of the most expensive stocks carry the most weight. This means that a relatively tiny percentage change in the stock of, say, IBM, which is currently trading at around $198, will swing the DOW much more than a very large change in the stock of Bank of America, which is presently trading at around 8 bucks. Interesting, isn’t it?

Finally – and you might want to pay very close attention – This is not the first time the DOW has clocked 13K. A little less than five years ago, on April 25, 2007, for the first time ever, the DOW closed above 13,000. It kept rising, and would close at 14,164.53 on October 9, 2007. Then, on March 9, 2009 it crashed and closed at 6,547.05.

I don’t know about you, but if my nest egg had experienced that, I wouldn’t be part of last Tuesday’s fanfare because I’d still be in a hole. Let’s do some quick math: Say I had $100,000 on October 9, 2007; it would have been whittled down to just $46,220 by March 9, 2009, only to come back up to $91,811 today (which is still less than the $100,000 I began with almost five years ago).

Of course, every analyst, media outfit, and financial advisor will choose whichever perspective they like. But at the end of the day, shouldn’t your money be growing as the years progress? If that’s true, the recent escalation of the DOW probably doesn’t mean what many people seem to think it means, after all.

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Schedule your complimentary appointment today with a financial professional from Laser Financial Group. Explore proven, time-tested ways you can prevent your retirement nest egg from remaining at the whim of the Dow and other market indicators. LaserFG.com or 877.656.9111.

Should You Join Just Because Your Employer Matches Your 401(k)?

Should you join just because your employer matches your 401(k)?


There seems to be an agreement in the financial planning community that the only litmus test for determining whether or not you should join your employer’s 401(k) plan depends on whether or not your employer matches your contributions. If they do, then you must jump on board to claim the free money.

Obviously, I like the idea of free money, too. But I don’t think it should be the litmus test for signing up for a 401(k). From the way I look at things, judging the validity of a plan for something as vital as retirement solely on an employer’s matching dollars is a horrible mistake.


For one thing, what if that matching stops? Does this great plan all of a sudden become bad? Or, what if the choice of available fund options within that employer-matched plan is lousy? Should you still go for it because of the matching? What if such a plan has completely outrageous fees that might end up hurting you more than helping you? Should you hop aboard anyway?


Sometimes I really wonder what ever happened to good old common sense, because we desperately need some today! The thing is, an “employer’s matching contribution” may simply beg the real question, which happens to be: Is this the plan that will give me the retirement I’m looking forward to?


I happen to believe there are many much more critical variables than matching contributions that must come into play when making such a vital decision, because retirement is not as simple as jut saving money. And all plans are not the same, are they?


Of course, we will always have to make a few assumptions. However, in order to give yourself the best shot at a truly comfortable retirement, you must make sure that your assumptions are not dubious or unrealistic.


Just something else to think about...
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Contact a financial professional at Laser Financial Group to schedule your complimentary session. Investigate whether your employer's matching fund is the best choice for you, or whether something else might work better! LaserFG.com or 301.949.4449.

Answer This Question and You're SET for Retirement!

Answer This Question and You’re SET for Retirement!

A few years back, when Amy – my now 12-year-old daughter (who’d rather have me tell you that she’s almost 13) – was 7 or 8 years old, we were driving somewhere, and as you may expect for a girl of the age, she was chatting me up.

Although I don’t remember exactly where we were headed, I vividly remember where we were and the question she asked me out of nowhere: “Daddy, what’s retirement?” Apparently, someone was eavesdropping on some of my audio works or taking a peak at my gazillion books and newspaper/magazine columns on this subject.

One part of my brain wondered, “Where did that question come from?” while the other part was, of course, trying to figure out an answer she’d understand, because I wasn’t ready to lose my daddy-knows-everything status just yet. Little did I know that I’d come up with one of the best answers to a question that, quite frankly, I haven’t really thought about – even though I had been helping clients to get there successfully for many years. My answer? “Retirement is when you stop working.”

“Cool,” she replied, and then followed up with this: “Daddy, then just do retirement so that you don’t have to work anymore!” That’s pretty cute, right? Now let me ask YOU just one question:

Your retirement is certain to arrive
one day (if it’s not already here)
and will last for as long as you do,
so is your source of retirement income
equally as CERTAIN?

Most Americans make the terrible mistake of thinking that just because they are saving money or that they have some money saved that it will be there when the time comes. The fact is that some investment vehicles have those guarantees, but many don’t.

If you were to ask me to help you prepare for retirement, I wouldn’t want to take the gamble that you might retire very wealthy IF everything turned out as planned. Meanwhile, you could end up completely broke, should the stock market plummet just before you were about to retire. You could even wind up in dire circumstances if the market took a dive many years before your retirement and you were not able to “recover”.

You see, I prefer to be realistic and guarantee you, my client, that your money will be there to provide you the income you need for as long as your retirement lasts, regardless of whether the stock market is up or down – rather than bet the certainty of your retirement on hope or the probability that you’ll be okay. As fate would have it, the clock never misses a beat, so your retirement is guaranteed to be arrive, come what may.

Of course it’s your money and your retirement, so you should choose to invest it whichever way you’d prefer. I just wanted to give you some practical food for thought.

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Contact a financial professional at Laser Financial Group TODAY to schedule your complimentary session where you can learn how to protect and guarantee your retirement income for as long as you live, regardless of what the stock market does. 877.656.9111 or LaserFG.com.

BEWARE! Your Tax Preparer May Be Sending You to Tax Hell…

BEWARE! Your Tax Preparer May Be Sending You to Tax Hell…


As tax season gets into full gear, I hear a lot of tax preparers, in attempt to “save” their clients on the amount of taxes they’d otherwise pay, advise them to make contributions into tax-qualified IRAs. But will that move really “save” you any money on taxes at the end of the day?

By funding a deductible IRA, you would pay less in taxes today – but according to current tax law, you are only postponing paying those taxes until a later date, more than likely when you are retired. As many so-called tax experts and financial gurus will explain, you’ll be outsmarting the IRS because by retirement, you’ll presumably need much less income (because you’ll have paid off the mortgage on your house and your children will be grown and out of the nest). So by implication, your taxes will be much, much lower. Seriously?

That Thinking Is Nonsense and Very Short-Sighted

I don’t know about you, but I’m looking forward to a much better retirement after all those years of hard work – and I just don’t quite see how I can do that on a significantly lower income than today. Besides I wouldn’t want anyone to tell me I’m “saving” money, when in fact I am going to HAVE to pay it back – is that called savings?

I hear daily, by virtue of my consistent interactions with seniors through the educational workshops I teach and private consultations with our firm, that many of those who followed this shallow theory now find themselves in tax hell, although their income may have indeed gone down.

You see, you cannot keep postponing your taxes forever. At some point, you must voluntarily withdraw those funds from your IRA, or the IRS will force you to do so, at which time you’ll be hit with an additional 50 percent penalty tax, on top of the regular tax on the amount you should have withdrawn.

What you must understand is that by the time your retirement rolls around, you will – if your situation is like most people’s – more than likely have lost the three most important and significant tax deductions you enjoy today: (1) mortgage interest (if you paid it off), (2) dependent children exemptions (they’ve moved out and are now taking their own exemptions), and of course, (3) you’ll be making no more contributions into that IRA (you’re now withdrawing, instead).

Now let’s think about this: with those deductions gone, what do you expect will happen to your “taxable income”? It will, of course, become disproportionately higher – just ask someone who’s currently retired to confirm this. Given their so-called advice, I think many of these tax gurus are completely delusional. I’m happy to be proven wrong, so would one of those strong advocates of the traditional IRA strategy please tell me what I’m missing here?

Another thing that apparently eludes many retirees is the fact that every dollar you withdraw from your IRA directly contributes to the amount of taxes you end up paying on your Social Security checks in retirement. Talk about a double-whammy! 

Did you know there are alternatives within the tax code that allow you to contribute after-tax money and then never have to worry again about taxes on those funds? Hey, all I’m advising here is knowing exactly what you’re getting into before you sign on the dotted line, because I’d hate to be talking with you years down the road and hearing, “I should have met you some years back” as I hear quite often.

The good news is that irrespective of where you are – even if you’re already retired – there are things you can start doing TODAY to begin keeping more of your hard-earned dollars, without leaving yourself exposed so that your retirement plan comes back to bite you later on.

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Contact us TODAY to schedule your complimentary, completely no-obligation consultation with a knowledgeable financial expert who can explain money-saving alternatives your current financial advisor may not be aware of. 877.656.9111 or LaserFG.com.