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Are Variable Annuity Guaranteed Benefits Worth It?
If you have an IRA, sorting through all the investment options can
be very confusing. Unfortunately, there is a lot of hype out there
and, in my opinion, the financial services industry is great at
selling the sizzle and delivering very little steak!
Easy
Money!
You won't believe it -- I just found out that I am about to receive
$2,700,000.00! My family and my kids shouldn't ever have to worry
about money again! It's not a result of my job, but of providence.
It almost seems too good to be true...
No Such
Thing as a Free Lunch
Most of the seniors that contact me about investments
they regret admit they've purchased them as a result of a free
'educational' lunch or dinner seminar. They go expecting to have a
nice meal with other seniors 'on the house', and end up losing their
shirt in some kind of investment scheme.
"The Investment
from Hell"
If you were nearing the edge of the cliff and didn't know it, would
you want someone to warn you before it was too late? Of course you
would. That's been the guiding principle of this column, to inform
everyday investors of the pitfalls that could cause them and their
nest egg irreparable harm.
Annuities? Give Me a
Break!
Millions of seniors are sold equity-indexed and variable annuities
with promises of guaranteed returns with little or no risk. And
hardly a day goes by that I don't hear from some frustrated investor
who finds him/herself trapped by one of these investments. Let me
paint a very clear picture of the dangers of these products and
share some pointers for those who have already bought one.
Equity-Indexed Annuities:
Seeking Legal Recourse
One of the main reasons I so adamantly oppose the use of
Equity-Indexed Annuities is because what the investor receives isn't
anything like what they expected. What should you do if this happens
to you? Read on to find out.
More About
Annuities |
An
Ounce of Prevention
We've all heard the old adage that an ounce of prevention is
worth a pound of cure. This applies to many areas of life,
but perhaps none better than in the area of long term care.
Nobody likes to think about the possibility of needing this
kind of care and, as a result, many people put off preparing
for it until it is too late. Here's a real life story that
will hopefully motivate any procrastinators out there into
action.
Reader
Questions Term Versus Universal Life
Call me old-fashioned, but I believe as a husband and father
it's my responsibility to provide for my wife and children
should I die prematurely. Life insurance is the best way to
meet this need, but many people get confused when buying
life insurance. A recent email from a reader will help clear
up this confusion.
Beware Of
Universal Life II
In my last article, I explained the basic differences
between term and permanent insurance. Permanent insurance
such as Whole Life, Universal Life, Equity-Indexed Universal
Life and Variable Universal Life is regularly promoted as
the perfect retirement vehicle or the new way to build
wealth. This week I will expose the fallacies of those
arguments.
Beware Of
Universal Life Insurance
Has a life insurance agent suggested that you buy
'permanent' insurance such as Whole Life, Universal Life or
Variable Universal Life? The reasons they give seem so
compelling, but are they in your best interest? Here's an
explanation of the basics, plus what the insurance agent
isn't telling you!
More About Insurance |
De-stressing the Markets
For the first in time in about seven years, we find
ourselves in a true bear market. The problems in the
financial sector, pervasive gloom and doom forecasts and
ever increasing oil prices have combined to create one of
the most tumultuous financial climates of recent history.
Inflation fears, the credit crisis, mortgage foreclosures,
tension with Iran, recession woes: it’s enough to give even
the most seasoned investor sweaty palms. How can you
navigate these tough times without losing your cool?
Going Green Part 2
As the summer heats up, so does the rhetoric about the
energy crisis. The presidential candidates are taking
political shots at each other’s solutions to the problems,
while everyone else in Washington is playing the blame game.
Even OPEC is washing their hands of the matter, blaming
‘speculators’ for the current crisis.
Reader Questions Advisor Recommendation
I recently received a question from a reader in Florida who is taking an
early retirement. Like many investors, he was confused after meeting
with a couple advisors. My advice to him might save you from making a
wrong decision, too.
Advisor Commissions
Revealed
Most investors have absolutely no idea how much
money advisors earn from their
investments. There's certainly nothing wrong with
advisors being compensated for their work. The
problem arises when there is a lack of transparency
in the advisor/client relationship. You should know
exactly how much you are paying, for the investments
and services you receive. Only then can you make an
informed decision on whether or not you are
receiving a good value for your money.
Where's The Beef Part Two?
There's nothing better than a hot and juicy steak,
especially one from your own grill. But, can you imagine
going to the grocery store to pick up a few prime ribs, only
to get home and realize you ended up with cube steak
instead? Talk about injustice! Of course, this doesn't
happen to most of us, because grocery stores package their
meat in clear plastic wrap, so we can see exactly what we're
buying. If only we bought financial services the same way.
Where's The Beef?
There's nothing better than a hot and juicy steak,
especially one from your own grill. But, can you imagine
going to the grocery store to pick up a few prime ribs, only
to get home and realize you ended up with cube steak
instead? Talk about injustice! Of course, this doesn't
happen to most of us, because grocery stores package their
meat in clear plastic wrap, so we can see exactly what we're
buying. If only we bought financial services the same way.
Do You Need A Trust Or Foundation?
Trusts and private foundations aren't just for the rich and
famous like Warren Buffet or Bill Gates. Nowadays, even
people of modest means are realizing the great benefits
trust and foundations can provide. Read on to see what they
can do for you.
Why Investors Lose Money on Wall Street
Investors fear losing money, but they are almost as afraid
of losing out, of not making money when they could have.
This is referred to as the fear and greed cycle and is one
reason the Wall Street pros make money while the individual
investor often loses it.
The Wolf Among the Lambs
For years, I've been warning seniors about the dangers of
equity indexed annuities. And I've taken quite a bit of heat
over it from those in the insurance industry. While many
agents, and some readers, have discounted my views, the
uproar against equity-indexed annuities, and the tactics
used to sell them, is growing louder and louder. And now the
national media has entered the fray.
Harmed Investor Gets Justice
Countless investors have lost large portions of their
investments. Some have been in investments where they lost
everything. But investors looking for help in recouping
losses often find there are few places to turn for
assistance. Read on to learn about one investor that finally
got justice.
The Three Risks You Must Avoid
There are many financial risks that investors want to
protect themselves from (inflation risk, interest rate risk,
market risk, etc). But there are three risks that most
investors don't take into account and I believe not doing so
can quickly get them into trouble. I call them control risk,
access risk and flexibility risk. Let me explain.
A House of Cards Part 2
Last week, I talked about how the current credit crises
evolved. This crisis is the result of mistakes made by the
homeowner, the mortgage company, the investment banks and
the rating agencies. This week, you'll see what caused the
House of Cards to fall and will learn how this example can
keep you from making a financial mistake.
A House of Cards Part 1
The current credit crisis has impacted multiple sectors of
our financial economy. Home foreclosures are on the rise.
Credit-worthy consumers struggle to secure mortgages.
Investment banks are brought to their knees. Foreign and
domestic stock markets experience gut-wrenching volatility.
The Federal Reserve is forced to take historical steps to
maintain liquidity. And the list goes on.
More About Investing |
Death and Taxes
The old saying is that there
are only two certainties in life, death and taxes. Now that we know
who the two nominees are for this year's presidential election, it's
time to take a look at what might happen regarding taxes and how we
should adjust our portfolios.
A House Divided
One of the biggest issues seniors face as they get older is how to
preserve an inheritance for their children. Their biggest fear is
spending all of that money on assisted living and/or nursing home
care. As each family situation is different, so is each solution.
Perhaps you can learn something from the experience of one of my
clients.
Pulling Back The Curtain On
Reverse Mortgages
Last week's article on reverse mortgages generated a very
interesting response from one reader. Unfortunately, due to his
choice of vocabulary, I can't print his response here. Suffice it to
say that this advisor doesn't want me saying anything negative about
his chief source of revenue. This week I'd like to pull back the
curtain on the real reason reverse mortgages have become so heavily
marketed and what you need to do as a consumer to protect yourself.
Should Seniors Use
Reverse Mortgages?
Some of the most popular products being pitched to seniors today are
reverse mortgages. Everywhere you turn there are free seminars, free
reports and free DVDs, all touting the amazing benefits these loans
offer. Are reverse mortgages the answer to seniors prayers, or are
they too good to be true?
Do You Owe Taxes On That
Gift?
As a Certified Financial Planner, I'm often asked about issues
regarding inheritance, gifting and the resulting taxes. Here's a
classic example of just how complicated these situations can be,
using a question from a reader in Michigan we'll call Bob.
Tune Up Your Finances
With the beginning of a new year, it seems everywhere you turn you
hear something about self-improvement. There are plans for weight
loss, exercise regimens, quitting smoking, going green and more.
What about your finances? Even if you think your finances are in
'good shape', everyone could use a little 'tune up' to make sure
everything is running smoothly. And it's not as hard to do as you
think. There are some very simple steps you can take that can make a
world of difference.
Protect the Ones
You Love
Alzheimer's. Stroke. Heart Attack. They are words we all dread to
hear, especially when they occur to a loved one. The emotional
strain is tremendous. But it can be compounded if the loved one
didn't take steps in advance to authorize someone to manage his or
her assets. Regardless of your age, it's imperative that you have
the proper documents in place. Read on to find out why.
Protecting Your
Equity from Lawsuits
In today's lawsuit-happy society, investors are anxious to protect
their assets from litigation. As a result, there are many
professionals in the business of helping investors meet this need.
But consumers need to be very careful about the advice they receive
and the path they choose.
When A Will Won't Do
A Last Will and Testament is the most basic of estate planning
documents, but also one that is often misunderstood. Many think that
if they have a Will they don't have anything to worry
about--everything will go to the persons they specify. That's not
true, though, and it's important you understand why a Will sometimes
Won't.
More About Estate
Planning |
to the right place!
You'll find information here that you won't find anywhere else.
I'll share with you the things your broker/financial advisor
doesn't want you to know. You'll learn what goes on
behind-the-scenes in the financial industry.