May God bless you and the United States of America.
Samuel and the team at LaserFG
Monday, May 28, 2012
On this Memorial Day...
May God bless you and the United States of America.
Samuel and the team at LaserFG
Monday, May 21, 2012
Putting “Long Term” Under the Common-Sense Microscope
Putting
“Long Term” Under the Common-Sense Microscope
We hear it preached all
the time in the investing world: if you want to be successful (and retire rich),
you must take a “long term” view of the stock market. In other words, insofar
as you invest in the market for a long term, you’ll do great.
Quick question: Do you buy that? I don’t! Of course, I’ll explain my contention.
Meet Senior and Junior
Senior has been investing in the stock market for the past 35 years and has accumulated $500,000. Junior, on the other hand, started out 3 years ago and has just $15,000 in his account. I think we’d both agree that Senior definitely qualifies as a long-term investor, but Junior doesn’t pass that test, right? Good!
Now, all things being equal, let’s say their investment increases this year by 10 percent. Senior would gain $50,000 (10 percent on his $500,000), ending up with $550,000. Junior’s investment would increase by the same 10 percent (note the key word same), earning him $1,500 on his beginning $15,000, for an ending balance of $16,500.
Since the stock market sometimes dips, let’s say the following year it loses 10 percent. Don’t panic! It’s just an example to drive home a critical point. Junior would lose 10 percent of his $16,500 which is $1,650, so he’d end up with a new balance $14,850. But how about Senior? How much would he lose? He’s been investing for the “long term,” so did he lose anything? Of course he did. And how much was his loss, compared to Junior’s?
Yes, this is pretty basic stuff (or shall we say it should be?), but bear with me for a moment as I drive home a valuable lesson.
The indisputable fact is that Senior’s account would experience the exact same 10 percent decline, regardless of his 35+ years in the market. Here’s how his numbers look: Losing 10 percent of $550,000, or $55,000, would whittle his balance down to $495,000.
It’s now pretty obvious that both Junior and Senior gained – and lost – the same percentages. However, in absolute dollar terms, Senior lost $53,350 more than Junior ($55,000 versus $1,650). Who do you suspect would feel more anxious about their retirement? Senior, the long-termer? You see, this concept is not specific to this example – that’s how variable investing works, period!
I have a rather simple request for those investing experts who believe strongly that investing for the long term is the key to a successful retirement: please define for us, once and for all, when exactly this so-called long term is. I’d like to know, as I think a lot of other folks would, too. I’m confused because it’s all over the map – depending on what’s happening in the market and who you’re talking to, the definition keeps changing.
I bet you’d tell Junior to think about the long term, like say 10 or more years. As for Senior, you’re probably more likely meaning 40 or more years, right? But what about those folks who’ve been investing for that long already? Gee, things are getting pretty tight here, right?
My dear, hard-working retirement investor, something tells me that investing your nest egg in the stock market is just plain risky – no amount of time will ever change the rule: it sometimes goes up and sometimes dips. And something also tells me that may not be the best approach at ensuring you’re going to have a secure retirement.
_______________________
Quick question: Do you buy that? I don’t! Of course, I’ll explain my contention.
Meet Senior and Junior
Senior has been investing in the stock market for the past 35 years and has accumulated $500,000. Junior, on the other hand, started out 3 years ago and has just $15,000 in his account. I think we’d both agree that Senior definitely qualifies as a long-term investor, but Junior doesn’t pass that test, right? Good!
Now, all things being equal, let’s say their investment increases this year by 10 percent. Senior would gain $50,000 (10 percent on his $500,000), ending up with $550,000. Junior’s investment would increase by the same 10 percent (note the key word same), earning him $1,500 on his beginning $15,000, for an ending balance of $16,500.
Since the stock market sometimes dips, let’s say the following year it loses 10 percent. Don’t panic! It’s just an example to drive home a critical point. Junior would lose 10 percent of his $16,500 which is $1,650, so he’d end up with a new balance $14,850. But how about Senior? How much would he lose? He’s been investing for the “long term,” so did he lose anything? Of course he did. And how much was his loss, compared to Junior’s?
Yes, this is pretty basic stuff (or shall we say it should be?), but bear with me for a moment as I drive home a valuable lesson.
The indisputable fact is that Senior’s account would experience the exact same 10 percent decline, regardless of his 35+ years in the market. Here’s how his numbers look: Losing 10 percent of $550,000, or $55,000, would whittle his balance down to $495,000.
It’s now pretty obvious that both Junior and Senior gained – and lost – the same percentages. However, in absolute dollar terms, Senior lost $53,350 more than Junior ($55,000 versus $1,650). Who do you suspect would feel more anxious about their retirement? Senior, the long-termer? You see, this concept is not specific to this example – that’s how variable investing works, period!
I have a rather simple request for those investing experts who believe strongly that investing for the long term is the key to a successful retirement: please define for us, once and for all, when exactly this so-called long term is. I’d like to know, as I think a lot of other folks would, too. I’m confused because it’s all over the map – depending on what’s happening in the market and who you’re talking to, the definition keeps changing.
I bet you’d tell Junior to think about the long term, like say 10 or more years. As for Senior, you’re probably more likely meaning 40 or more years, right? But what about those folks who’ve been investing for that long already? Gee, things are getting pretty tight here, right?
My dear, hard-working retirement investor, something tells me that investing your nest egg in the stock market is just plain risky – no amount of time will ever change the rule: it sometimes goes up and sometimes dips. And something also tells me that may not be the best approach at ensuring you’re going to have a secure retirement.
_______________________
Contact a professional at Laser
Financial Group TODAY to set up your complimentary, no-obligation consultation
and discover ways to make sure you're protected from the only sure thing we know
about the stock market: its unpredictability! 877.656.9111 or
LaserFG.com
Monday, May 14, 2012
Why Stock Diversification Should Scare the Heck Out of You
Why
Stock Diversification Should Scare the Heck Out of You
One
of the most popular pieces of conventional retirement planning advice is to
make sure your portfolio is properly diversified,
with the right mix of stocks and mutual funds because, in the long run, that’s what
will give you the retirement lifestyle you desire. I say that’s pure baloney.
Variable investments
will forever remain variable, no matter
how many of them you lump together. To think that by purchasing bits and pieces
of stocks you’re somehow eliminating market risk is simply laughable. Sure, diversification may reduce your market risk,
but it will never, ever eliminate it.
Veteran trader, renowned risk expert, and New York Times best-selling author Nassim Nicholas Taleb in his book Fooled
by Randomness echoed the famous
quip about Shakespeare, that if you set an infinite number of monkeys in front
of an infinite number of typewriters, one of them would produce an exact
version of Homer’s Iliad
(notice
the key word here is infinite). However, Taleb added, “Now that
we have found that hero among monkeys, would any reader invest his life’s
savings on a bet that the monkey would write the Odyssey next?”
What I find amusing is
that with all the exotic, fancy computer models and “expert market predictors” to
date (you know, those folks who know exactly where the market is headed?), no
one has yet been able to help any investor that I know of come up with that
killer diversified stock portfolio that has escaped fairly regular beatings
from the market. That’s why I wholeheartedly agree with the assertion of Burton Malkiel, a Princeton University
economist, that “a blindfolded
chimpanzee throwing darts at the Wall Street Journal can select a portfolio that performs as
well as those managed by the experts.”
In case you haven’t
noticed, every time the market plummets
and investors who thought they were properly “diversified” lose significant
portions of their nest eggs, these so-called experts – the very ones who came
up with the “diversified portfolios” these investors
were using – cite “improper
diversification” as the reason their clients lost money. So would our
esteemed experts kindly tell us, once and for all, what that magic mix is,
instead of always playing Monday morning quarterback?
Oh, wait. They can’t. Folks,
these experts don’t have crystal balls; they’re just like us, with no idea how the market will shift next until it happens. I guess what I’m trying
to say is that this hindsight business isn’t working!
Here’s what I can tell
you after nearly two decades of working with lots of successfully retired
clients from all across America: since its origins, the stock market has been a
pure gamble. But hey, it’s your money and your retirement, so you’re free to invest
it whichever way you want to. All the best!
_______________________
Contact a professional at Laser Financial Group TODAY to set up your complimentary, no-obligation consultation and discover ways to make sure you're protected from the only sure thing we know about the stock market: its unpredictability! 877.656.9111 or LaserFG.com
Contact a professional at Laser Financial Group TODAY to set up your complimentary, no-obligation consultation and discover ways to make sure you're protected from the only sure thing we know about the stock market: its unpredictability! 877.656.9111 or LaserFG.com
Monday, May 7, 2012
Are You Following "everybody else" Off a Retirement Cliff?
Are you following "everybody else" off a retirement cliff?
But I thought it was the best thing for me
because everyone around me was doing it.
because everyone around me was doing it.
Ever say (or think)
something like that when you finally discovered that a product or a strategy you’d
bought into wasn’t exactly as you expected?
By virtue of my
practice – between the public speaking and private consultations – I interact
with a fairly large number of people, most of whom are either very close to
retirement age or already retired, and I tend to hear statements like the one
above quite frequently from those who’ve been duped and/or disappointed by their
retirement plan choices.
It’s just human nature
to feel comfortable when something we are considering is already being adopted
or used by lots of people around us – which is not necessarily a bad thing, by
the way. However, when it comes to your retirement money, you’re more likely to
end up regretting going along with the majority. I understand that this may be
a somewhat contrarian view, but I’m speaking from the real-life experiences of
people just like you who I continue to meet almost daily!
If you’re interpreting this
to mean that a strategy that seems to be working well for your neighbor or
coworker might end up screwing up your entire retirement, then you definitely got
my point. You’re not those other people, are you? I believe one of the main
reasons every statistic today points to the sad reality that the overwhelming
majority of Americans (a recent survey by the National Institute on
Retirement Security has the figure at 84 percent) are in a bad
shape retirement-wise is because “everybody” seems to be following “everybody
else.” The problem is that they follow without even knowing exactly why.
On the other hand, the “minority”
who apparently are NOT doing what seems to be “popular” are ending up
achieving the goal of comfortable, stress-free retirements. So, my dear
retirement investor, maybe you should start entertaining the concept that being
“financially UN-popular” is not such a bad idea after all.
I look forward to seeing
you on the good side of the retirement spectrum!
_______________________
Contact a professional at Laser Financial Group TODAY to set up your complimentary, no-obligation consultation and discover the easiest way to make sure you're not following the crowd right off a cliff when it comes to your retirement savings. 877.656.9111 or LaserFG.com
_______________________
Contact a professional at Laser Financial Group TODAY to set up your complimentary, no-obligation consultation and discover the easiest way to make sure you're not following the crowd right off a cliff when it comes to your retirement savings. 877.656.9111 or LaserFG.com
Monday, April 30, 2012
Social Security Is Apparently Falling Apart; Did You Know You’re the Solution?
Social Security Is Apparently Falling Apart; Did You Know You’re the Solution?
Social Security is in a bad shape. That, my friend, is basically what the Social Security Board of Trustees told us about the financial health of the program in their annual report a week ago today. The trust funds will run out of money in 2033, three years sooner than predicted just a year ago. Meanwhile the Disability portion will be exhausted much sooner in 2016 – that’s two years earlier than we had thought this time last year.
Obviously this is not good news but yeah, yeah, yeah – we’ve been hearing this for years yet our checks keep coming, so what’s the big deal now? In my humble opinion, the majority of Americans with yet-to-be-taxed 401(k)s and IRAs are literally sitting next to a ticking tax bomb – and don’t even realize it. Of course I’ll explain, but first pay very, very close attention to the reaction of the Commissioner of Social Security, Michael J. Astrue (who’s one of the Trustees who issued this report):
But exactly how? Pay back the IOU’s, get more revenue into the system, or tell American seniors to take a hike? Wouldn’t you agree with me that it would take a pretty dumb Congress to try to stick it to seniors? So, in a nutshell, we need to put more money into the system, right? Here’s the thing, though, the ONLY way Congress can get more money is by increasing taxes.
I hate to be the bearer of bad news, but there’s only one way for me to be truthful here: expect massive tax hikes! Would a tax hike ruin your retirement? That’s a question I think you need to explore seriously if you own any kind of tax-qualified plan. I know that most so-called financial advisors/experts think it’s okay to just be passive and go with the flow because, after all, you’re probably not one of those wealthy people the tax increases will affect. But don’t you think that being proactive by positioning your retirement assets in a way that protects them from future tax hikes under IRS rules is much smarter than betting that Congress is only going to stick it to “the rich folks”?
_______________________
Contact a professional at Laser Financial Group TODAY to set up your complimentary, no-obligation consultation and discover the easiest way to protect YOUR retirement funds from future tax increases. 877.656.9111 or LaserFG.com
Social Security is in a bad shape. That, my friend, is basically what the Social Security Board of Trustees told us about the financial health of the program in their annual report a week ago today. The trust funds will run out of money in 2033, three years sooner than predicted just a year ago. Meanwhile the Disability portion will be exhausted much sooner in 2016 – that’s two years earlier than we had thought this time last year.
This year’s Trustees Report contains troubling, but not unexpected, projections about Social Security’s finances. It once again emphasizes that Congress needs to act to ensure the long-term solvency of this important program, and needs to act within four years to avoid automatic cuts to people receiving disability benefits.Most pundits make this complex but I think it’s very simple. Social Security is going broke because Congress has already spent our contributions, and with an estimated 10,000 baby boomers per DAY reaching age 65 for the next 18 years or so, things are getting pretty tight at a very fast pace. So I agree with the Commissioner’s comments that “Congress needs to act.”
But exactly how? Pay back the IOU’s, get more revenue into the system, or tell American seniors to take a hike? Wouldn’t you agree with me that it would take a pretty dumb Congress to try to stick it to seniors? So, in a nutshell, we need to put more money into the system, right? Here’s the thing, though, the ONLY way Congress can get more money is by increasing taxes.
I hate to be the bearer of bad news, but there’s only one way for me to be truthful here: expect massive tax hikes! Would a tax hike ruin your retirement? That’s a question I think you need to explore seriously if you own any kind of tax-qualified plan. I know that most so-called financial advisors/experts think it’s okay to just be passive and go with the flow because, after all, you’re probably not one of those wealthy people the tax increases will affect. But don’t you think that being proactive by positioning your retirement assets in a way that protects them from future tax hikes under IRS rules is much smarter than betting that Congress is only going to stick it to “the rich folks”?
_______________________
Contact a professional at Laser Financial Group TODAY to set up your complimentary, no-obligation consultation and discover the easiest way to protect YOUR retirement funds from future tax increases. 877.656.9111 or LaserFG.com
Monday, April 23, 2012
FINALLY – An End to Worry about Outliving Your Retirement Income
FINALLY – An End to the Worry about Outliving Your Retirement Income
Running out of income in retirement is the number one fear of American retirees – more so today than at any time in our history. But the most mind-boggling fact – believe it or not – is that it’s one of the easiest retirement worries to overcome. Really!
Running out of income in retirement is the number one fear of American retirees – more so today than at any time in our history. But the most mind-boggling fact – believe it or not – is that it’s one of the easiest retirement worries to overcome. Really!
It
is as simple as attaching an optional
mechanism to your retirement account that will guarantee (yes, guarantee) that
you – and your spouse, if you include him/her – will never outlive your income,
irrespective of how long (both of) you live, regardless of stock market
gyrations. The cool thing is that you could attach this option to virtually any
kind of money: 401(k), 403(b), Roth IRA, SEP IRA, or even non-qualified funds.
And since your guarantee is not dependent on the stock market, you can count on
your income being there to support you, whether the market is up or down!
I
know! Why haven’t you heard about this? And if this is true, why is outliving
one’s income the numero uno problem facing American retirees?
I recently authored a special report, titled “SET FOR LIFE,” that provides the nuts and bolts about how these optional mechanisms work in easy-to-understand, straightforward language. And most importantly, you’ll also learn what you need to look out for in the often-windy fine print that sometimes accompanies these contracts.
Meanwhile, here are some things you may not be aware of: fewer than 25 companies in the entire American financial industry are approved to offer some version of this mechanism to the investing public. Additionally, a financial professional must carry a specific license in order to offer this option to clients. Granted, some guys and gals (like those here at LaserFG) would tell you about options we believe will benefit you even if we were unable to sell them to you, let’s face reality, most people in this industry just don’t do that – period!
Meanwhile, here are some things you may not be aware of: fewer than 25 companies in the entire American financial industry are approved to offer some version of this mechanism to the investing public. Additionally, a financial professional must carry a specific license in order to offer this option to clients. Granted, some guys and gals (like those here at LaserFG) would tell you about options we believe will benefit you even if we were unable to sell them to you, let’s face reality, most people in this industry just don’t do that – period!
Let
me be crystal clear, though: This report is NOT a solicitation for the purchase
or sale of any security, and you don’t need to buy anything from us to get it –
it’s totally COMPLIMENTARY! You may get your free copy at SetForLifeReport.com.
________________________
Contact a financial professional at Laser FG today if you have any questions after you download this free report. LaserFG.com or 877.656.9111.
Contact a financial professional at Laser FG today if you have any questions after you download this free report. LaserFG.com or 877.656.9111.
Monday, April 16, 2012
Invaluable Financial Lessons from Those Who've Already Made Mistakes
Invaluable financial lessons from those who've already made mistakes
Yes, hindsight is always 20-20! But, I think in certain instances (fore)sight is much better than 20-20 vision. Depending on your perspective, there can be good news when bad things happen to those who go before us – in the sense that we have the opportunity to learn from their mistakes and therefore prevent their undesirable outcomes from befalling us, too.
I’m guessing that those of us raising teenagers are shaking our heads in agreement right about now. However, that’s not exactly where I’m going with this. For the moment, let’s talk retirement.
Of course I don’t know your specific retirement goals, but after almost twenty years in this field, I’m pretty certain that just like most of the folks I meet, you desire to retire comfortably – as in having enough money to kick back and enjoy life, travel, spoil the grandkids, and all the other fun things you can think of, including leaving a hefty legacy for your loved ones. I think everyone deserves just that – and even more – especially after all of those years of hard work to save and invest.
But let’s face it – you know that’s not reality, don’t you? The very sad truth is that more and more Americans wake up on Day 1 of retirement to the harsh reality that their investments didn’t even come close to the rosy expectations their financial advisors painted for them. In my practice, hardly a day goes by that I don’t speak with several retired (or soon-to-be-retired) folks who are facing this unfortunate dilemma – and these are folks who did everything their so-called financial advisors/media gurus told them to do.
To sum up the ONE thing that every single one of these disappointed folks tell me: if they were going to do it all over again, they’d be sure NOT to just follow the herd. Instead, they’d seek the expertise of professionals with a SOLID track record. That amplifies a point I’ve been teaching/writing about for years – planning for your retirement is NOT a routine procedure or an experiment!
Often, retirement investors allow financial advisors to sweet-talk them into signing up for plans or strategies without first demanding any real-life proof of these plans’ success. Most people wouldn’t let a surgeon with no real-life success in a particular procedure operate on them, but for some strange reason they forget to apply that principle when it comes to their retirement planning.
As much as I may love them, I would not hire even my spouse (if I had one) or a blood relative as my retirement counselor if they lacked tangible, real-life proof of success – and hopefully you’d do the same.
________________________
Contact a financial professional at Laser FG today to learn about proven strategies that'll improve your financial FORESIGHT. LaserFG.com or 877.656.9111.
Yes, hindsight is always 20-20! But, I think in certain instances (fore)sight is much better than 20-20 vision. Depending on your perspective, there can be good news when bad things happen to those who go before us – in the sense that we have the opportunity to learn from their mistakes and therefore prevent their undesirable outcomes from befalling us, too.
I’m guessing that those of us raising teenagers are shaking our heads in agreement right about now. However, that’s not exactly where I’m going with this. For the moment, let’s talk retirement.
Of course I don’t know your specific retirement goals, but after almost twenty years in this field, I’m pretty certain that just like most of the folks I meet, you desire to retire comfortably – as in having enough money to kick back and enjoy life, travel, spoil the grandkids, and all the other fun things you can think of, including leaving a hefty legacy for your loved ones. I think everyone deserves just that – and even more – especially after all of those years of hard work to save and invest.
But let’s face it – you know that’s not reality, don’t you? The very sad truth is that more and more Americans wake up on Day 1 of retirement to the harsh reality that their investments didn’t even come close to the rosy expectations their financial advisors painted for them. In my practice, hardly a day goes by that I don’t speak with several retired (or soon-to-be-retired) folks who are facing this unfortunate dilemma – and these are folks who did everything their so-called financial advisors/media gurus told them to do.
So what went wrong?
To sum up the ONE thing that every single one of these disappointed folks tell me: if they were going to do it all over again, they’d be sure NOT to just follow the herd. Instead, they’d seek the expertise of professionals with a SOLID track record. That amplifies a point I’ve been teaching/writing about for years – planning for your retirement is NOT a routine procedure or an experiment!
Often, retirement investors allow financial advisors to sweet-talk them into signing up for plans or strategies without first demanding any real-life proof of these plans’ success. Most people wouldn’t let a surgeon with no real-life success in a particular procedure operate on them, but for some strange reason they forget to apply that principle when it comes to their retirement planning.
As much as I may love them, I would not hire even my spouse (if I had one) or a blood relative as my retirement counselor if they lacked tangible, real-life proof of success – and hopefully you’d do the same.
________________________
Contact a financial professional at Laser FG today to learn about proven strategies that'll improve your financial FORESIGHT. LaserFG.com or 877.656.9111.
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