Indexed annuity sales set a new high watermark in the third quarter, up 6% to $8.7 billion from the second quarter, a 16% growth year over year.
Indexed annuities now represent 41% of the fixed annuity market.From a market share perspective, the highest indexed annuities have been as
a proportion of fixed annuity sales was 37% in the second quarter of 2007, said Joe Montminy, assistant vice president of LIMRA’s annuity
research arm. “This is an ideal environment for indexed annuity sales,” he said. “Volatility in the equity market combined with a low interest-rate
environment means that conservative investors looking for guarantees are not going to traditional fixed products, they’re turning to indexed annuities
for their fixed benefits plus upside potential.”At 84% of the market, independents sell most indexed annuities. But to get a snapshot of the
conservative investor, bank sales of indexed annuities doubled to $2.1 billion in 2009 from 2008 and are likely to equal or beat that performance
this year, Montminy predicts.Total annuity sales in the first nine months of this year, $164.5 billion, were 11% lower than last year, hurt by
declining demand for fixed annuities after a record year last year. Fixed annuity sales for the first nine months were $61.7 billion, down 31%.
Montminy said quantitative easing by the Federal Reserve will likely put further strain on fixed annuities by bringing interest rates down even
further.Meanwhile, variable annuity sales were up 9% to $102.8 billion in the first nine months of 2010 compared with flat 2009.
“We saw a nice increase in the second quarter this year and again in the third quarter as people got more comfortable with the market and
with the long-term strength of carriers,” Montminy said. “Guaranteed-living-benefit election is extraordinarily high at 87%, which is
enhancing their attractiveness. We expect continued slow,
steady growth.”
Latest Financial News http://www.bloomberg.com/tv/
The Strangest Secret , Success video http://www.thestrangestsecretmovie.com/store
2011 Retirement Plan Contribution Limits http://sn119w.snt119.mail.live.com/default.aspx
HOW CAN PROBLEMS BE TURNED INTO SOLUTIONS? WATCH "THE PINK BAT"
http://www.pinkbatmovie.com/
THE CEO OF THE SECOND LARGEST MONEY MANAGEMENT COMPANY IN THE WORLD
ON CNBC VIDEO DISCUSSING THE NEW RETIREMENT OUTLOOK: http://www.cnbc.com/id/15840232?video=1590372654&play=1&rmid=09_14_2010_egen1193_squawkbox_CAMPAIGN&rrid=$epn$
Another Video http://www.bloomberg.com/video/65262632/?rmid=12_15_2010_efix1906Empl_campaign&rrid=3090022000
Social Security Payback Option May Disappear
http://finance.yahoo.com/focus-retirement/article/110473/social-security-payback-option-may-disappear?mod=fidelity-managingwealth&cat=fidelity_2010_managing_wealth
WHEN SHOULD YOU APPLY FOR SOCIAL SECURITY?
http://finance.yahoo.com/focus-retirement/article/110909/when-should-you-apply-for-social-security.html?mod=fidelity-livingretirement
HAVE A QUESTION? NOT ANSWERED BELOW? JUST ASK FOR FREE INFORMATION
Something for your marriage Join Us for A Weekend to Remember for Married Couples The Group Rate is now the very best rate you will see for the Weekend to Remember Getaway all year! Many people attend a Weekend to Remember because someone invited them. Most of the time the people inviting them are friends. To assist you as you invite others, we have lowered the group rate and adjusted our regular rate and other special promotional rates so the group plan is always the least expensive way to attend the getaway. The following changes go into effect this Thursday, July 15th:
Regular rate: $159 per person or $318 / couple
Group rate: $79 / person or $159 / couple
You read it right; the group rate is a 50% savings off the regular rate. This also means if we have a special Buy One Get One free promotion, it will not be less than the group rate.
Anyone using our group name can register for any getaway and receive the $79 / person rate. They don't have to wait anymore for a special promotion. Yea!
We hope this encourages you as you invite people to experience the life-changing message of the Weekend to Remember. Now, go invite someone before we change our minds!!...just kidding!
Again, this rate takes effect this Thursday, July 15th.
This is our way to say "We appreciate you!"
|
The Weekend to Remember Event Promotions Team
|
Great Relationships video: http://www.100-0principle.com/?cm_mmc=CheetahMail-_-Cons-_-WelcomeStream-_-HUZOMovie&utm_source=CheetahMail&utm_campaign=HUZOmovieWScons
STEPHEN B. WALSH'S
Current Licensing
Certified Financial Planner, College for Financial Planning # 8901558; California Dept. of Real Estate # 01794786;
Life and Health Agent, California Dept. of Insurance # 0637624; California Notary Public # 1736156
Which Phase of Financial Life are You In?
ACCUMULATING ASSETS? Birth to age 65 ? Use these free calculators at
http://gafri.com/publicsite/identify/planfuture.aspx
How Rich is Rich? Read this Yahoo Finance article to find out.
http://finance.yahoo.com/focus-retirement/article/110295/how-rich-is-rich?mod=fidelity-buildingwealth&cat=fidelity_2010_building_wealth
Financial Education Material Details from an Insider
Site Navigation Directions Easy Topic Search
To quickly locate information, find the number of the area that interests you and
scroll down to that number to read . After studying, if you would like more
information on any of these topics, send a message to:
steve@walshfinancial.net
or call 661-829-3606 to leave your message
1.CFP designation explanation
1a) New Tax Cut Deal
2. How safe is your bank? Safest places for your money.
3.Detailed Economic Update
3a.Bank failures; the worst hit 8 states detailed report
How does your bank or credit union rate? Find out here
4.Retirement self calculators,financial newsletters,planning videos
4a.Quickly calculate what your retirement will look like
4b.Quickly calculate how much of your Social Security will be taxed
4c. The three stages of retirement
5.Harvard Business School study How Money Changes People
6.Facts about Roth IRA conversions
7.How to avoid IRA penalties
8.Major Indices closing values
9.Local Bakersfield weather
10.Question, comment,suggestion box
11.Veterans Improved Pension Benefit Payments for Home Health Care and Assisted Living Expenses
12. Testimonial
13.Never Lose Money on Your Nest Egg Again. How Fixed Guaranteed Indexed Annuities Work
No risk of loss due to market declines, opportunity for gains with market advances, plus many additional benefits
use for any type of savings, retirement and non-retirement, pre-tax and after tax accounts available.
14.Secret Proprietary Formula for Income Expansion
15.Bank FDIC and Insurance Company self insurance
16.Reverse Mortgages
16a. Adjustable Rate Mortgage?/Fixed Rate Mortgage? Evaluate Conventional Mortgages Total Costs
to aid in Your Decision Making, Article,Calculators,Link,
Current Rates(mortgages,bank cd's,auto loans,credit cards).
16b.) Mortgage market news and information
17.Estate Planning Portfolio of Essential Legal Documents
17a. Free Estate organizer
18.Use RMD's from IRA to pay income taxes for beneficiaries
19.College Funding Planning for Families that Might not Qualify for Federal Funds without it
20.Reduce or Eliminate Taxation on Social Security Income
21.Homestead benefits
22.Pre-pay for funerals and final expenses with discounted dollars
23.Self Directed IRA rules and hands on buying/selling residential properties in
foreclosure/short sales/flipping,refurbishing,complete setup and turnkey operation
More to come, check back often
Scroll down from here for TOPICS and more LINKS
1) CFP designation explanation
What does it mean? Go to the College site
http://cffpinfo.com/page_college_programs.php
1a)
Tax cut deal: How it affects you
By Jeanne Sahadi, senior writerDecember 17, 2010: 4:17 PM ET
NEW YORK (CNNMoney.com) -- Now that President Obama has signed the Tax Hike Prevention Act of 2010, taxpayers will have some
certainty about their tax situation, if only for the next 24 months.
The new law contains a bevy of tax breaks -- new and extended -- and emergency help for the jobless. Its cost over 10 years is estimated at
$858 billion.
Here's a rundown of some of the biggest ticket items that will affect individuals. (Except where noted, all provisions are for 2011 and 2012).
Extended income tax rates: $207.5 billion The six federal income tax rates will remain at the same levels they are today: 10%, 15%, 25%, 28%,
33% and 35%. In addition, itemized deductions will continue to be allowed in full for high-income taxpayers.
AMT fix: $137 billion More than 20 million tax filers will be protected from having to pay the so-called "wealth tax," otherwise known as the
Alternative Minimum Tax.For tax year 2010, the bill will raise the amount of income that is exempt from the reach of the AMT to $47,450 for
individuals and to $72,450 for couples filing jointly. In 2011, those exemption amounts will increase to $48,450 and $74,450 respectively.
In addition, the bill will allow taxpayers to apply nonrefundable credits (which reduce one's tax bill dollar for dollar) to their tax liability --
whether under the AMT or the regular tax code.Social Security tax break: $112 billion Workers will get a 2 percentage-point break on their
payroll tax for one year. Instead of paying 6.2% on wages up to $106,800, they will only have to pay 4.2% in 2011.
This tax break replaces the Making Work Pay credit, which expires this year.
Unlike Making Work Pay, which was limited to workers making less than $75,000 ($150,000 for couples), the payroll tax holiday will be
available
to everyone who pays into Social Security.
Expanded child tax credit: $90 billion The bill will retain the $1,000 child tax credit (up from $500 before the Bush tax cuts). It also will
retain the
reduced-earnings threshold, which allows more people to claim the credit as refundable.
A refundable tax credit is one paid to a tax filer even if the value of the credit exceeds his tax liability. So if a filer doesn't owe any federal
income tax
but qualifies for the credit, it is paid to him in the form of a refund.
Smaller estate tax: $68 billion Barring any changes, the estate tax in 2011 and 2012 will be reinstated at an exemption level of $1 million
and a top
rate of 55%. But under the bill, the exemption level will be raised to $5 million and the top rate lowered to 35%.
The legislation will also reinstate the so-called "step up in basis" for beneficiaries of those who die in 2010, 2011 or 2012. A stepped-up
basis means that
when someone sells an inherited asset, his capital gains tax bill will be based on the asset's price the day he inherited it, rather than
when the
decedent originally bought it.
Practically speaking that means the beneficiaries of those who died in 2010 will be allowed to choose which estate tax rules to follow --
those
of 2011
or those of 2010. Under 2010 rules, there is no estate tax but also no step-up rules; there is only an option to exempt $1.3 million worth of
capital
gains from tax.
Help for the jobless: $57 billion The unemployed will get a 13-month extension of the deadline to file for additional unemployment
benefits --
which go as high as 99 weeks in states hit hardest by job loss.
Extended investment tax rates: $53 billion Everybody will get to keep their low investment tax rates for the next two years. For most
people, that
means their qualified capital gains and dividends will continue to be taxed at 15%.
Low-income tax filers (those in the 10% and 15% brackets), however, will continue to enjoy a 0% tax rate on their capital gains or
dividends.
Marriage penalty relief: $27 billion Marriage will still be hard (sorry), but not because less-than-wealthy two-earner couples will owe
more to the
IRS than they did when they were single.
The bill continues to ensure that the standard deduction for couples is exactly twice that for single filers. It also maintains an expanded
15% tax
bracket so that the amount of income in that bracket for joint filers is exactly double that for single filers.
Expanded college credit: $18 billion Paying for college tuition in 2011 and 2012 will be made a bit easier with the retention of the
American
Opportunity tax credit, which is an expansion of the HOPE tax credit.
The Opportunity credit is worth up to $2,500 (up to 100% of the first $2,000 spent and up to 25% of the next $2,500), and it may be
claimed for f
our years' worth of college. Eligibility to take the credit is limited to those with modified adjusted gross income below $90,000
($180,000 for
couples filing jointly).
Individual tax break extensions: Costs vary The legislation will extend a number of tax breaks that have been introduced in the past few
years such
as the option to deduct on one's federal return state and local sales tax instead of state and local income tax -- at a cost of $6 billion.
Also, it will
extend a deduction for qualified tuition and other education-related expenses at a cost of $1.2 billion.
Less pricey extensions include a break for teachers to deduct up to $250 in classroom expenses (just under $400 million). 
2) How safe is your bank? This website has the ratings of your bank. http://www.bauerfinancial.com/btc_ratings.asp
2a.) The safest places for your money. http://www.safemoneyplaces.com/
3) Detailed Economic Update http://www.housingmatrix.com/index.php/the-economy/
3a) Bank failures, the worst hit 8 states
http://www.investmentnews.com/apps/pbcs.dll/gallery?Site=CI&Date=20100329&Category=
FREE&ArtNo=329009999&Ref=PH&Params=Itemnr=1
How does your bank or credit union rate? Find out here http://www.bauerfinancial.com/btc_ratings.asp
4)"What if", Retirement Calculators, Current Newsletter and Archive,
Planning Videos, visit http://www.theretirementpros.com/, http://www.theretirementpros.com/
4a) Quickly Calculate what your retirement income will be (click below)
http://www.calcxml.com/do/ret02?skn=161
If you are short, let's put a plan together
November 9, 2010 NB71-10GFR Retirement Plan Contribution Limits for Tax Year 2011 This summary shows contribution limits for retirement plans for tax year 2011. Note there were no changes to this summary from tax year 2010. Summary of Retirement Plan Dollar Limits 2011 403(b) Employee Elective Contribution Limit1 $16,500 403(b) Age 50 Catch-up Contribution Limit1 $5,500 403(b) 15 Years of Service Catch-up Contribution2 $3,000 Potential Total of all 403(b) Employee Elective Contributions $25,000 457(b) Contribution Limit $16,500 457(b) Age 50 Catch-up Contribution Limit3 $5,500 401(k) Employee Elective Contribution Limit1,4 $16,500 401(k) Age 50 Catch-up Contribution Limit1 $5,500 SIMPLE Employee Elective Contribution Limit1 $11,500 SIMPLE Age 50 Catch-up Contribution Limit1 $2,500 SEP IRAs minimum compensation limit $550 SEP IRAs annual compensation limit $245,000 SEP IRAs defined contribution limit $49,000 Traditional and Roth IRAs (before age 50) $5,000 Traditional and Roth IRAs (age 50+) $6,000 Defined Contribution Overall Limit $49,000 Defined Benefit Overall Limit $195,000 Highly Compensated Threshold $110,000 Qualified Plan Compensation Limit $245,000 Social Security Wage Base $106,800 Social Security Withholding Rate 6.2% Medicare Withholding Rate 1.45% Social Security Tax Rate for Self-Employed Individuals 12.4% Medicare Tax Rate for Self-Employed Individuals 2.9% 1 These limits are coordinated with elective contributions to other 403(b), SIMPLE, 401(k) and grandfathered salary reduction SEP plans. 2 Available for an employee with 15 years of service with certain qualified employers, regardless of age, who has not contributed, on average, at least $5,000 per year into a 403(b) account, up to a lifetime maximum of $15,000. May be combined with the age 50 catch-up contribution. 3 Available only to those in 457(b) Governmental plans (i.e. - deferred compensation agreement for any state, political subdivision of a state and their agencies and instrumentalities). 4 Elective contributions of highly compensated employees may also be limited by the average deferral percentage test.
If you have any questions about the 2011 limits, please contact our Internal Sales Support at (800) 438.3398, ext. 17197. Thank you for your support of our company! For distribution partner use only. Not for use in sales solicitation.
Copyright 2010 Great American Financial Resources, Inc.
GAFRI News Bulletin
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Americans Still Neglecting Retirement, Survey Says |
Even one of the greatest financial downfalls in U.S. history hasn't been enough to get people to take retirement planning more seriously, according to a new survey.The report by the Society of Actuaries (SOA) found that a 2009 survey of pre-retirees and retirees mirrored the results of a similar undertaking in 2007, before the collapse of the financial markets.Namely, that Americans are neglecting their financial planning and are ill-prepared for their retirement years.The study found, for example, that inflation and health care costs are the top two concerns of pre-retirees and retirees, but neither group is aggressively addressing those concerns through proper financial planning. Twenty-six percent of pre-retirees, for example, do not hve plans to calculate how inflation may impact their income in retirement. Nearly half of the retirees surveyed, 49%, and 67% of pre-retirees expressed concern about having enough money to pay for adequate health care. The report also found little change in the number of people planning to work as long as possible to afford retirement between 2007 and 2009. Among the other findings: Slightly more than half of pre-retirees said they've already saved as much as they can. - Less than a quarter of pre-retirees do not plan on completely paying off their mortgage.
- Twenty-eight percent of pre-retirees plan to retire from their primary occupation at age 65.
- About 20% of retirees plan to move to a smaller home or less expensive area.
- Eight percent of retirees said they plan to buy long-term care insurance, compared to 9% in 2007.
- About three quarters of retirees had no plans to purchase a financial product that guarantees a level of income for life.
"Individuals are clearly concerned about their retirement and the associated risks, but many are still not taking the necessary actions and planning to address these issues," said Anna Rappaport, chair of the SOA retirement survey committee.
|
4b) Quickly calculate the tax on your Social Security(then call us to see if you can reduce it)
http://www.kosmix.com/topic/social_security/overview/calcxml_inc08
4c) The three stages of retirement http://finance.yahoo.com/focus-retirement/article/109266/be-ready-
for-the-3-stages-of-retirement?mod=fidelity-livingretirement
5) Does Money Change People? See What Harvard Business School Says;
visit http://hbswk.hbs.edu/item/6324.html
6) ROTH IRA CONVERSION FACTS YOU MUST KNOW NOW!
visit http://www.fa-mag.com/fa-news/5109-12-traps-with-roth-ira-conversions.html
This strategy that is being offerred by some might well be avoided
visit http://www.producersweb.com/r/WPI/d/contentFocus/?adcID=f298099c2d11f7a17041b87c0f2a5bcf&uID
=7bb3d78229fb224b25df1ecdd251fa19
7) HOW TO AVOID IRA PENALTIES
visit http://www.seniormarketadvisor.com/Exclusives/2010/1/Pages/Four-ways-to-avoid-IRA-penalties.aspx?tips
8) Major Indices Latest Closing Values
SYMBOLS IN CHART BELOW; $INDU=DOW JONES,$COMPX=NASDAQ,
$INX=S&P 500, HKHI=CHINA, $US:N225=JAPAN
| Symbol | Price | Change | % Chg |
| $INDU | 12,801.23 | -89.23 | -0.69% |
| $COMPX | 2,903.88 | -23.35 | -0.80% |
| $INX | 1,342.64 | -9.31 | -0.69% |
| $US:N225 | 10,435.00 | -150.46 | -1.42% |
Quotes are by IDC Comstock and are delayed 20 minutes.
Fund prices are from Morningstar. |
9) Our Local Weather and Forecast
Bakersfield, CA
Updated Friday, February 10, 2012 2:54 PM
Clear | 77°F | High: 76°F
Low: 42°F
Wind: 5 mph
Humidity: 24%
|
Saturday
63° / 45° | 
Sunday
62° / 44° | 
Monday
59° / 41° |
Tuesday
57° / 44° |
|
|
|
SURVEY RESULTS
WHAT DO MOST PEOPLE SAY THEY WANT FROM THEIR ADVISORS?
TRUSTWORTHYNESS HUMILITY CARING CAPABILITY
I PROMISE TO TRY TO LIVE UP TO THESE ATTRIBUTES FOR MY CLIENTS
What we do and areas where we can help: never an obligation to you
Establish a lasting relationship, gathering data and determining your goals and
expectations, determine your financial status by analyzing and evaluating special needs,
insurance and risk management, investments, taxation, employee benefits,
retirement planning, estate planning, developing and presenting a financial plan,
implementing the plan, monitoring the plan.
10) Questions and Make Comments Here
Free informational brochures, articles, videos, and booklets, phone counsel
on any financial topic are available. If we don't know now, we will research for you.
by request to steve@walshfinancial.net, or call
11) Veterans Improved Pension Benefit
Payments for Home Health Care and Assisted Living
http://benefitsnational.com/,www.veteranbenefits.com
T.I.P.S.
VETERANS BENEFIT PAYABLE WHEN ASSISTANCE WITH DAILY LIVING ACTIVITIES IS NEEDED
Free VA application service to you our veterans, your widows and families, in cooperation with the
VETERANS ADMINISTRATION.
We are assisting the VA to find veterans and widows of veterans to determine possible
eligiblity, and providing the financial tools to those who might qualify but without proper planning
prior to application will be denied. We are searching for veterans and widows of veterans with
non-service connected disabilities,needing help with daily living activities, or age 65,(and any age widow),
to help them receive a monthly benefit that they have earned, and are completely unaware of. Who do you know
that might be eligible for this benefit and not know it? Tax Free annual lifetime amounts available;
$23,388 veteran and spouse, $19,728 single veteran, $12,672 surviving spouse. Be a hero and call 661-829-3606
to see if you or someone you know might qualify. WATCH VETERANS BENEFIT VIDEO
visit http://benefitsnational.com/,www.veteranbenefits.com,www.avbg.org
ASK FOR OUR FREE SERVICES TO SEE IF YOU QUALIFY, IF YOU DON'T QUALIFY, WE WILL HELP YOU
QUALIFY, AND, APPLY FOR YOUR BENEFITS THROUGH OUR VA CERTIFIED ATTORNEY
T.I.P.S.
Do You Know a Veteran or a Widow of a Veteran that needs Care with Basic Daily Living Activities
outside of California? We may be able to help them financially with our National Network, and special
free preparation program. Call, Fax or e-mail us to request for an experienced contact in that state .
VISIT www.usveteransbenefit.org/swalsh for an informative free video.
T.I.P.S.
Are you a veteran, or do you know a veteran who needs assistance
with daily living activities? We can help them qualify for tax free monthly VA income benefits
that they are entitled to and aren't aware of . Up to $24,000/year available. 90 days service
with 1 day during a declared war, meet the financial requirements, gather the required documents,
12) TESTIMONIAL: More available upon request
"Recently, Steve dramatically improved my retirement portfolio. After sustaining heavy losses in
my TSA mutual funds. Steve was able to restore a portion of my losses with a large bonus from the
financial institution he partners with, and guarantee that I would not lose any more of my principal,
while still being able to take part in any market gains. The financial institution will also guarantee 7.2%
compounded return every year when I use my account for income in the future. All this was
done with no out of pocket cost to me. We are also looking forward to using Steve and his estate planning
attorney partner to organize our family's estate transfer planning affairs in the near future. " J. Trigos
Chairman California State University Bakersfield Math Department.
13) Fixed Guaranteed Indexed Annuities News videos:
http://www.youtube.com/watch?v=u2rao-6hLVo
T.I.P.S.
Safety and Potential Growth in the same account! Approximately $100 Billion Plus
deposited nationwide from safety conscious MarketValue Index® savers in these types of accounts in the past two years! Walsh Financial
has several options. We will help you select the one that fits your situation the best.
Actual historical returns returns from two of our selected Indexed Annuities are shown below.
Notice that when the market goes down, the indexed annuity retains your gains, and protects you from losses.
The Blue Line in the graph below is the Indexed Annuity actual from 2000 to 2009.
The other jagged line are the actual S&P 500 historical values for the same period.
INDEXED ANNUITIES GET A HUG FROM OBAMA http://www.gradientib.com/pdfs/events/UnlovedAnnuity_HugFromObama.pdf
.jpg)
click here for a recent Free video newscast about Indexed Annuities visit http://www.youtube.com/watch?v=u2rao-6hLVo
IS A GUARANTEED PAYMENT INCOME STREAM A PRIORITY FOR YOU? WE HAVE OPTIONS TO CHOOSE FROM.
Up tp 17.5% TO 25% added to your income account in the first year guaranteed! Your income account will compound at
7.5%-8% per year thereafter for ten years, with option to renew. Note: the income account is a value that the company
will use to base your guaranteed lifetime income from. Your accumulation account is the account that is your actual
cash value for other types of withdrawals, and will accrue according to your selected index and strategy as shown in the
above graphs.
This planning vehicle is same thing that the largest corporations in the world use to guarantee
their retiring employees lifetime pensions . You can use the same vehicle. Let us show you how. The article
on the Financial Planning magazine's site below gives an actual illustration of the Guaranteed Income Benefit.
click blue link for article on Guaranteed Income Benefit:
T.I.P.S.
BONUS ANNUITY Partners
IS YOUR PORTFOLIO DOWN?NEVER LOSE MONEY AGAIN! INVESTMENT PORTFOLIO REPAIR IS AVAILABLE!
ADD A BONUS (UP TO 12%)! TO YOUR PRINCIPLE IMMEDIATELY/ NO SALES CHARGES
NEVER LOSE MONEY AGAIN!Have you heard about the great INDEXED ANNUITIES? No more losses, only gains.
See our INDEXED ANNUITY VIDEO at
T.I.P.S.
Never worry about running out of retirement income. Turn your 401k/IRA/TSA,Deferred Comp,or any type of savings
into your own Guaranteed Lifetime Pension Plan! And still have access to your principle when you need it!
Turn your 401k, IRA, TSA, into a guaranteed Lifetime Pension. Up to 15%-25% added to your income account balance
immediately through an incentive offerred by select companies. Your account is guaranteed to grow at 6%-8%
compounded per yr until payments begin, then paid out based on your age. Your account can also continue to grow
while receiving payments. The older you are when you take payments, the higher percentage payment you receive
guaranteed for life. Joint lifetime payouts for married couples also available. Over 300 companies will allow you to use
this program even while you are still working for your present employer through in service 401K distributions. To find
out if your company is on the list and what their rules are, e-mail Steve @walshfinancial.net and give your company name
and contact information. Example: 100,000 becomes 115,000! to $125,000. Lifetime Guarantee Percentage payout based
on age. 5.5% at 65, 7% at 80. Older ages receive higher payouts. Joint payouts are also available. Inflation additions available.
Call for free information, and how much income you can receive.
call 866-434-2483 for more information
T.I.P.S.
50% of retirees that took a lump sum in 2003 have spent it all!! (AARP 2006)
You can make it last for life. You can increase the monthly payments with a special program designed
and provided by the FINANCIAL GIANTS, and only them, to give you that safe cash flow you will need without giving up
access to your principal.
for a customized caculation and a comparison to your best idea.
T.I.P.S.
LIFETIME INCOME GUARANTEES
GREAT FOR 401K's and DEFERRED COMP, TSA's and IRA's
14) Secret Proprietary Formula for Risk Free Maximization of Retirement Income
THE RETIREMENT INCOME MULTIPLIER
example: without Multiplier Total Savings $300,000 @ 3% SS Payments $1800/mo at 62, Income $30,600 taxable for life
with no increase
with The Multiplier
Total Savings $300,000 (special rate),SS Payments $1800/mo at 62,Income $30,600 tax free
At 70, increase to $85,415 for life guaranteed by the same institutions that corporate America uses to pay retirees
pensions for teachers and government employees.(Not subject to stock, or stock or bond mutual
fund market risks).Principal always protected.
Find out how it can work for you CALL TODAY 661-829-3606
15)BANK FDIC and INSURANCE COMPANY SELF INSURANCE
We are partnered, appointed, and licensed with many of the World's Financial GIANTS,
the"ALL STARS"of the financial world, who by law must keep sufficient liquid assets available
at all times to protect our clients principle, and do not need to pay the
Federal Deposit Insurance Corporation insurance payments to protect your deposits
because of being in the business of lending. In the lending business, (BANKS), your money
is not readily available, it is in mortgages, car loans, business loans,etc. FDIC insurance
is needed to cover the risk. In the event of a bank failure, FDIC has as many as 7 years to pay you
back with 0% interest.The financial institutions, insurance companies,we use for savings are self
insured and regulated by law to have liquid investments like government securities that would be
liquidated immediately to pay clients. If an insurance company falls behind in it's reserve assets
that protect your savings, they would be required to stop taking deposits. Nobody, including us,
wants the banking industry to be in trouble. This is just an FYI on something most people haven't
been told until it was too late.
(SEE LIST OF PARTNERS ON TOP OF PAGE AND VISIT THEIR SITES)
16) REVERSE MORTGAGES
RETIRING BOOMERS 62 AND UP EYE REVERSE MORTGAGE TO REPLACE LOST 401K EQUITY
ATTENTION REVERSE MORTGAGE HOLDERS: YOUR LINE OF CREDIT
DISAPPEARS
WHEN YOU DIE. CALL 661-829-3606 to preserve it for your families.
Read a GREAT AARP Reverse Mortgage Consumer Survey at
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16a) Evaluate Conventional Mortgages Total Costs in Your Decision Making
Article,Calculators,Link
The Trick to Overcoming Payment Myopia
by Jack Guttentag
Friday, March 12, 2010
We tend to undervalue the future. Nowhere is this tendency stronger than in finance, and nowhere in
finance is it stronger than in the mortgage market. Borrowers focus on the monthly payment because
that is today’s problem, to the neglect of how much they owe and the future obligations they may face
because those are tomorrow’s problems. I have termed this “payment myopia.”
The system encourages payment myopia. Like all sales people, loan officers and
mortgage brokers sell an alluring present, not a challenging future. Lenders have created
instruments that support their efforts by offering reduced payments in the early years at the
cost of higher payments and larger balances in later years. The most radical of these was the so-called
option ARM (adjustable-rate mortgage), which allowed borrowers to make payments that did not cover the interest for
five -- and in some cases 10 -- years before the hammer fell. Since the crisis erupted in 2007, the default rate on
option ARMs has been so horrendous that they are no longer being written.
But payment myopia continues. Today the instrument that most appeals to the payment myopic is the
interest-only (IO) mortgage. On IOs, the borrower pays only interest in the early years, usually for 10 years.
All adjustable-rate mortgages have an IO version, as does the 30-year fixed-rate mortgage.
There are some defensible reasons for selecting an IO, which I discussed in a recent article, but
most borrowers who take them do it for the lower payment in the early years, to the neglect of the future. That’s why I don’t like IOs.
Undervaluing the Future
Recently I have begun to think about possible ways to overcome payment myopia, other than
preaching, which I know from personal experience doesn’t work. I was provoked by a recent discovery of a
method of inducing more employees to sign up for retirement plans offered by their employers. That a large
proportion did not take advantage of plans that were highly advantageous to them was another
manifestation of the general tendency to undervalue the future. Underfunding retirement plans
and payment myopia have the same roots in the human psyche. It was discovered that if new employees,
instead of being offered an opportunity to join the retirement plan, were automatically entered
and given an opportunity to opt out, the participation rate increased dramatically. Is there a
comparable technique, I wondered, that might induce mortgage borrowers to give greater weight to the
future in their mortgage decisions? Part of the reason why borrowers discount the future so heavily in making
mortgage decisions is that the future is not as clearly seen as it could be. As a general rule, the right type of
mortgage for John Doe is the one with the lowest total cost for Doe. The total cost is
a borrower-specific number, because it depends on how long the borrower expects to have the mortgage,
his investment rate, and his tax rate. Total cost is the sum of all monthly payments of principal and interest, points and other
settlement costs paid upfront, lost interest on monthly and upfront payments, less tax savings and balance reduction.
Knowing the Total Cost
But Doe does not know the total cost of the various mortgages he is offered because nobody
calculates it for him. He knows the starting mortgage payment very well because it is shown
on multiple documents. Hence, what should be a limiting condition -- the
starting payment must be affordable -- for all too many borrowers becomes the only thing they
look at in making a selection. Here is an illustration using an IO, which as I noted above has a strong appeal
to payment-myopic borrowers. On February 10, a prime borrower could have had a $300,000 30-year
FRM at 4.875 percent, or an IO version of the same loan at 5.5 percent. The
payment on the first was $1,587 and on the IO it was $1,375, a difference of $212 a month. Over 10 years,
that amounts to a saving of $25,516. In addition, assuming the borrower can earn 2 percent on his
money and is in the 27 percent tax bracket, the interest loss on payments is $1,939 smaller on the IO,
and the tax savings at 27 percent is $9,020 higher. This adds to a total of $36,475 in “saving”
on the IO. But, at the end of 10 years, the borrower will still owe $300,000 on the IO and only $243,101
on its fully amortizing counterpart, which is a balance reduction of $56,899. Bottom line, the total cost is
$20,424 larger on the IO. And let’s not forget that, in month 121, the payment on the IO jumps from $1,375 to $2,064, where it
remains for the next 20 years. The fruits of payment myopia are indeed bitter.
So how does a borrower who is determined not to be payment myopic find the total cost of different
mortgages? Don’t expect to get it from your loan provider. If you have all the necessary details about
the alternative mortgages, you can calculate the total cost to you of each mortgage using my
calculator 9ai on my Web site. Doing this could save you some serious cash.
Call for a quote 866-434-2483
or e-mail steve@walshfinancial.net
16b) Mortgage market news and information http://www.housingmatrix.com/index.php/mortgage-market/
17) Estate Planning Portfolio of Essential Legal Documents prepared by our estate planning attorney,
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18) Reduce or Eliminate Taxation for Your IRA Beneficiaries
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FOR FEDERAL PROGRAMS
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Ask for a Free Guide to lowering Social Security Taxes steve@walshfinancial.net It is impossible to cover all the issues you may have and questions you want to ask on this site.
If there is something you are
interested in that
is not mentioned on this page, please contact us. We would love to help get the right information
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If we don't know, we will find it for you.
21) HOMESTEAD BENEFITS
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23) Interested in buying real estate foreclosures, short sales,
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Some of the rules are listed below:
IRS Rules & Guidelines For Self Directed IRA’s
THE BOTTOM LINE
Congress has passed laws, rules and regulations that encourage responsible retirement
planning by granting favorable
tax treatment to a wide variety of plans.
Retirement plans are defined by the IRS tax code and are regulated by the Department of
Labor’s ERISA provisions.
Safeguard Financial’s attorney consultants
are specifically trained in ERISA law.
ERISA ( Source: Wikipedia.com)
The Employee Retirement Income Security Act of 1974 (ERISA) (Pub.L. 93-406, 88
Stat. 829, enacted September 2, 1974)
is an American federal statute that establishes minimum standards for pension plans
in private industry and provides for extensive rules on the federal income
tax effects of transactions associated with employee benefit plans.
ERISA was enacted to protect the interests of employee benefit plan participants and
their beneficiaries by requiring the disclosure to them of financial and
other information concerning the plan; by establishing standards of conduct for plan
fiduciaries; and by providing for appropriate remedies and access to
the federal courts. ERISA is sometimes used to refer to the full body of laws regulating employee benefit
plans, which are found mainly in the Internal Revenue Code and
ERISA itself. Responsibility for the interpretation and enforcement of ERISA is divided
among the Department of Labor, the Department of the Treasury
(particularly the Internal Revenue Service), and the Pension Benefit Guaranty Corporation.
Prohibited Transactions
Defined in IRC 4975(c)(1) and IRS Publication 590, these rules were established to maintain
that everything the IRA engages in is for the exclusive benefit
of the retirement plan. Professionals often refer to these transactions” as “self-dealing” transactions.
This section of the code identifies prohibited transactions
to include any direct or indirect: • Selling, exchanging, or leasing, any property
between a plan and a disqualified person. For example, your IRA cannot
buy property you currently own from you. • Lending money or other extension of credit between a plan and
a disqualified person. For example, you cannot personally guarantee a loan for a real estate
purchase by your IRA. • Furnishing goods, services, or facilities between a plan and a disqualified person.
For example, you cannot use personal furniture to furnish your IRAs rental
property.• Transferring or using by or for the benefit of, a disqualified person the income or
assets of a plan. For example, your IRA cannot buy a vacation property you or
your family intends to use. • Dealing with income or assets of a plan by a disqualified person who is a fiduciary
acting in his own interest or for his own account. For example, you should
not loan money to your CPA. • Receiving any consideration for his or her personal account by a disqualified person
who is a fiduciary from any party dealing with the plan in connection with
a transaction involving the income or assets of the plan. For example, you cannot
pay yourself income from profits generated from your IRAs rental property.
Disqualified Persons
A disqualified person (IRC 4975(e) (2)) is defined as:
•The IRA owner
• The IRA owner’s spouse
• Ancestors (Mom, Dad, Grandparents)
• Lineal Descendents (daughters, sons, grandchildren)
• Spouses of Lineal Descendents (son or daughter-in-law)
• Investment advisors
• Fiduciaries – those providing services to the plan
• Any business entity i.e., LLC, Corp, Trust or Partnership in which any of the disqualified
persons mentioned above
has a 50% or greater interest.
Thanks for visiting! Come back soon for updates,new information and always look for the
Truth in Planning ServicesT.I.P.S.